MIRA INFORM REPORT

Report Date :

19.03.2013

IDENTIFICATION DETAILS

Name :	AADHAAR RETAILING LIMITED
Registered Office :	Knowledge House, Shyam Nagar, Off J V Link Road, Jogeshwari (East), Mumbai - 400060, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.03.2006
Com. Reg. No.:	11-160440
Capital Investment / Paid-up Capital :	Rs. 320.000 Millions
CIN No.: [Company Identification No.]	U52110MH2006PLC160440
TAN No.: [Tax Deduction & Collection Account No.]	MUMA28777A
PAN No.: [Permanent Account No.]	AAFCA8793G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Retailer, Seller and Distributor of all type of Goods, Articles Accessories, Commodities and Merchandise including Food, household Lifestyle, Fast Moving Consumer, Durable and Non Durable Goods and Products.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1230000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Future Ventures India Limited’. It is an established company having a moderate track record. There appear some accumulated losses recorded by the company. It has incurred loss from its operations. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Manoj
Designation :	Sales Department
Contact No.:	91-22-25197247
Date :	18.03.2013

LOCATIONS

Registered Office :	Knowledge House, Shyam Nagar, Off J V Link Road, Jogeshwari (East), Mumbai - 400060, Maharashtra, India
Tel. No.:	91-22-56442200/ 28231001
Fax No.:	91-22-25197227/ 56442201
E-Mail :	Abdul.latif@futureaadhaar.com Sandeep.warang@futuregroup.in
Website :	www.futureaadhaar.com
Corporate Office :	Pirojshanagar Eastern Express Highway, Vikhroli (East), Mumbai - 400079, Maharashtra, India
Tel. No.:	91-22-25197187/ 25197247
Fax No.:	91-22-25197227

DIRECTORS

AS ON 10.09.2012

Name :	Mr. Krishan Kant Rathi
Designation :	Director
Address :	B/72, Dakshina Park, Plot No. 15, N.S. Road, 10th JVPD Scheme, Mumbai – 400049, Maharashtra, India
Date of Birth/Age :	30.12.1961
Qualification :	Bachelors degree in Commerce, Qualified Chartered Accountant, Qualified Company Secretary
Date of Appointment :	17.02.2010
DIN No.:	00040094
Name :	Mr. Damodar Shyamsunder Mall
Designation :	Director
Address :	2A, Regency Park, Eden Woods, Thane (West) – 400601, Maharashtra, India
Date of Birth/Age :	02.01.1963
Qualification :	B. Tech IIT, Mumbai, PGDM I IM Bangalore
Date of Appointment :	27.03.2008
DIN No.:	00043330
Name :	Mr. Narendra Baheti
Designation :	Director
Address :	Flat A-702, Plot 48/4 56, Govind Complex Sector 14, Vashi, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	26.12.1967
Qualification :	Bachelors degree in Commerce
Date of Appointment :	29.06.2010
DIN No.:	00057255
Name :	Arumugam Mahendran
Designation :	Director
Address :	5, Bayview Apartments, Worli Seaface, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	13.04.1955
Qualification :	Bachelors degree in Commerce, Qualified Chartered Accountant
Date of Appointment :	27.03.2008
DIN No.:	00242423
Name :	Mr. Balram Singh Yadav
Designation :	Director
Address :	Bunglow No. G9/1, Godrej Hillside Colony, LBS Marg, Vikhroli (West), Mumbai – 400079, Maharashtra, India
Date of Birth/Age :	15.07.1964
Qualification :	Post Graduate Diploma in Management from IIM-Ahmedabad
Date of Appointment :	01.09.2007
DIN No.:	00294803
Name :	Mr. Jagdish Vasudev Shenoy
Designation :	Director
Address :	Atmaram Bhuvan, 250/11 Station Road Wadala, Mumbai – 400031, Maharashtra, India
Date of Birth/Age :	12.10.1966
Qualification :	Bachelors degree in Commerce, Qualified Chartered Accountant
Date of Appointment :	10.08.2010
DIN No.:	01754643

KEY EXECUTIVES

Name :	Mr. Manoj
Designation :	Sales Department
Name :	Mr. Sandeep Shivram Warang
Designation :	Secretary
Address :	11A Rajat CHS, Meet Bandar Road, Thane East, Thane -400603, Maharashtra, India
Date of Birth/Age :	29.05.1983
Date of Appointment :	30.11.2011
PAN No.:	AAWPW7590H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 10.09.2012

Names of Shareholders	No. of Shares
Future Ventures India Limited, India	22400000
Godrej Agrovet Limited, India	6079994
Godrej Agrovet Limited, India Jointly with Prafulla Janardan Bhat	1
Godrej Agrovet Limited, India Jointly with Mr. S. Varadaraj	1
Godrej Agrovet Limited, India Jointly with Mr. B.S. Yadav	1
Godrej Agrovet Limited, India Jointly with Mr. P.N. Narkhede	1
Godrej Agrovet Limited, India Jointly with Mr. R.R. Govindan	1
Godrej Agrovet Limited, India Jointly with Mr. Y. H Mehta	1
Bahar Agrochem and Feeds Limited, India	2189750
Mahendran Arumugham	730250
Anamudi Real Estates Private Limited, India	600000
Total	32000000

AS ON 29.09.2012

Names of Allottees	No. of Shares
Future Ventures India Limited, India	1680000
Godrej Agrovet Limited, India	720000
Total	2400000

AS ON 10.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	97.72
Directors or relatives of directors	2.28
Total	100.00

BUSINESS DETAILS

Line of Business :

Retailer, Seller and Distributor of all type of Goods, Articles Accessories, Commodities and Merchandise including Food, household Lifestyle, Fast Moving Consumer, Durable and Non Durable Goods and Products.

Products :

ITC Code	Product Descriptions
99625590	Sugar

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :	Retailers and End Users
No. of Employees :	50 (Approximately)
Bankers :	ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India [Tel No.: 91-265-3983200]

Banking Relations :	--
Auditors :
Name :	Kalyaniwalla and Mistry Chartered Accountants
Address :	Kalpataru Heritage, 127, Mahatma Gandhi Road, Mumabi 400001, Maharashtra, India
Tel. No.:	91-22-61587200/ 61586200
Income-tax PAN of auditor or auditor's firm :	AAAFK7554R
Holding Company:	Future Venture India Limited [L67120MH1996PLC192090]
Co-Subsidiary Companies:	Ø Future Consumer Enterprises Limited [U52100MH2008PLC179919] Ø Indus League Clothing Limited [U85110MH1998PLC226134] Ø Indus Tree Crafts Private Limited Ø Indus Tree Producer Transform Private Limited Ø Future Consumer Enterprise Limited [U52100MH2008PLC179919] Ø Future Consumer Products Limited Ø Amar Chitra Katha Private Limited (with effect from July 22, 2011)
Related Party :	Godrej Agrovet Limited

CAPITAL STRUCTURE

AS ON 10.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs. 10/- each	Rs. 350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
34,400,000	Equity Shares	Rs. 10/- each	Rs. 344.000 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
35,000,000	Equity Shares	Rs. 10/- each	Rs. 350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32,000,000	Equity Shares	Rs. 10/- each	Rs. 320.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		320.000	260.000	235.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	870.000
4] (Accumulated Losses)		(12.414)	(5.777)	(712.957)
NETWORTH		307.586	254.223	392.043
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		178.837	235.857	353.765
TOTAL BORROWING		178.837	235.857	353.765
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		486.423	490.080	745.808
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		458.704	547.608	624.294
Capital work-in-progress		0.000	5.372	6.325
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		3.430	1.700	0.561
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	157.363	144.000	177.779
	Sundry Debtors	10.546	4.827	17.249
	Cash & Bank Balances	7.821	17.446	22.411
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	48.912	85.069	26.245
Total Current Assets		224.642	251.342	243.684
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	165.992	198.495	81.356
	Other Current Liabilities	33.790	116.944	45.885
	Provisions	0.571	0.503	1.815
Total Current Liabilities		200.353	315.942	129.056
Net Current Assets		24.289	(64.600)	114.628
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		486.423	490.080	745.808

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	928.968	656.019	681.181
		Other Income	4.752	7.939	12.708
		TOTAL (A)	933.720	663.958	693.889
Less	EXPENSES
		Purchases of stock-in-trade	917.889	607.308
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(13.364)	33.779
		Employee benefit expense	54.305	65.642
		Other expenses	117.976	99.369
		TOTAL (B)	1076.806	806.098	892.827
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(143.086)	(142.140)	(198.938)
Less	FINANCIAL EXPENSES (D)		39.233	53.234	73.869
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(182.319)	(195.374)	(272.807)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		66.047	68.585	68.938
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(248.366)	(263.959)	(341.745)
Less	TAX (H)		(1.729)	(1.139)	(40.988)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(246.637)	(262.820)	(300.757)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(975.777)	(712.957)	(412.200)
	BALANCE CARRIED TO THE B/S		(1222.414)	(975.777)	(712.957)
	Earnings/ (Loss) Per Share (Rs.)		(9.47)	(11.00)	(17.58)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(26.41)	(39.58)	(43.34)
Net Profit Margin (PBT/Sales)	(%)	(26.74)	(40.24)	(50.17)
Return on Total Assets (PBT/Total Assets}	(%)	(36.35)	(33.04)	(39.37)
Return on Investment (ROI) (PBT/Networth)		(0.81)	(1.04)	(0.87)
Debt Equity Ratio (Total Debt/Networth)		0.58	0.93	0.90
Current Ratio (Current Asset/Current Liability)		1.12	0.80	1.89

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade payable	165.992	198.495	81.356

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	No
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and advances from others	177.000	230.000
Other loans and advances	1.837	5.857
Total	178.837	235.857

Note: The registered address of the company has been shifted from Pirojshanagar, Eastern Express Highway, Vikhroli East, Mumbai – 400079, Maharashtra India to the present w.e.f.29.06.2010

OPERATIONS:

During the year, the company has posted turnover of Rs. 933.700 millions as against the previous years turnover of Rs. 663.900 millions, an increase of 28.90% and loss after tax has considerably declined by 6.15% i.e. from Rs. 262.800 millions to Rs. 246.600 millions

The Company took over the business of the retailing from Godrej Agrovet Limited as a going concern basis in 2008. The company had incurred the loss because of location disadvantage of some retail stores, non-optimum store size, and high operating expenses such as rentals.

FIXED ASSETS:

Ø Land

Ø Building

Ø Lease Hold Improvement

Ø Furniture and Fixtures

Ø Office Equipment

Ø Computers

Ø Plant and Machinery

Ø Goodwill

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 54.29
UK Pound	1	Rs. 81.94
Euro	1	Rs. 70.02

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

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