MIRA INFORM REPORT

 

 

Report Date :

07.11.2013

 

IDENTIFICATION DETAILS

 

Name :

RELIANCE WEBSTORE LIMITED

 

 

Formerly Known As :

RELIANCE WEBSTORE PRIVATE LIMITED

 

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Opposite Koparkhairane, Railway Station, Thane Belapur Road, Navi Mumbai - 400710, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

04.08.2000

 

 

Com. Reg. No.:

11-128101

 

 

Capital Investment / Paid-up Capital :

Rs. 0.500 Million

 

 

CIN No.:

[Company Identification No.]

U72900MH2000PLC128101

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMR01042G

 

 

PAN No.:

[Permanent Account No.]

AABCR6947H

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The Company has identified six reportable segments viz. Recharge Vouchers and Accessories , Handsets and Traded Goods, Broadband Connectivity( BBC) Common Cost Sharing, Billing Income and Marketing and Promotional Activities (Others).

 

 

No. of Employees :

Information declined by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 2000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Reliance Group.

 

It is an established company having satisfactory track record.

 

Profitability of the company appears to be low. External borrowing of the company appears to be huge.

 

However, sales and profit of the company has increased in 2012-13.

 

Trade relations reported to be fair. Business is active. Payment terms are reported to be slow but correct.

 

In view of strong holding company can be considered normal for business dealing at usual trade terms and conditions.

 

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

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

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 DECLINED

 

MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-30386286)

 

 

LOCATIONS

 

Registered Office :

H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Opposite Koparkhairane,             Railway Station, Thane Belapur Road, Navi Mumbai  - 400710, Maharashtra, India

Tel. No.:

91-22-30386286

Fax No.:

91-22-30376622

E-Mail :

hiesh.chawda@relianceceada.com

 

 

DIRECTORS

 

As on 25.09.2012

 

Name :

Mr. Hiteshbhai Lalitbhai Marthak

Designation :

Director

Address :

E-301, Lily, Jalvayu Vihar, Phase-1, Near Shilp Chowk, Navi Mumbai - 410210, Maharashtra, India

Date of Birth/Age :

25.10.1975

Qualification :

Bcom., ACS

Date of Appointment :

25.309.2012

DIN No.:

01039229

 

 

Name :

Mr. Gaurang Chhotalal Shah

Designation :

Additional director

Address :

Flat No 204, A Wing, 2nd Floor, Raj Vaibhav – 1 Mahavir Nagar, Kandivali (West), Mumbai – 400067, Maharashtra, India 

Date of Birth/Age :

13.12.1961

Date of Appointment :

23.10.2013

DIN No.:

00004408

 

 

Name :

Mr. Anil Kalya

Designation :

Director

Address :

C-104, Seawoods Garden, Sector-17, Plot No.4 & 6, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra, India 

Date of Birth/Age :

18.03.1974

Qualification :

Bcom,ACA,ACS

Date of Appointment :

30.09.2013

DIN No. :

06460981

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 25.09.2012

 

Names of Shareholders

No. of Shares

Reliance Communications Limited, India

49994

Prakash Shenoyjointly with Reliance Communications Limited, India

1

Anil Shah jointly with Reliance Communications Limited, India

1

Gaurang Shahi jointly with Reliance Communications Limited, India

1

Hitesh Marthak jointly with Reliance Communications Limited, India

1

Hasit Shukla jointly with Reliance Communications Limited, India 

1

Hitesh Chawda jointly with Reliance Communications Limited, India

1

TOTAL

50000

 

As on 25.09.2012

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage of Holding

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company has identified six reportable segments viz. Recharge Vouchers and Accessories , Handsets and Traded Goods, Broadband Connectivity( BBC) Common Cost Sharing, Billing Income and Marketing and Promotional Activities (Others).

 

 

Products :

Item Code No. (ITC Code)

Product Description

99999999

Commercial

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management

 

 

Bankers :

Not Divulged

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountant

Address :

714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai - 400021, Maharashtra, India

PAN No.:

AAAFC0662N

 

 

Holding company :

Reliance Communications Limited, India

CIN No.: L45309MH2004PLC147531

 

 

Other (Partnership Firm) :

Tip Top Typography

 

 

Fellow Subsidiary company :

·         Reliance Communications Infrastructure Limited

CIN No.: U64203MH1997PLC166329

 

Reliance Infratel Limited

CIN No.: U72900MH2001PLC131598

 

Reliance Infocomm Infrastructure Private Limited

CIN No.: U45300MH1993PTC173775

 

Reliance IDC Limited (formerly known as Reliance Communications Investment and Leasing Limited)

CIN No.: U72900MH2001PLC131600

 

Reliance Telecom Limited

CIN No.: U32100MH1994PLC162841

 

Reliance BPO Private Limited

CIN No.: U72200MH2000PTC124290

 

Reliance Big TV Limited

CIN No.: U45203MH2005PLC153294

 

Reliance Tech Services Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares

Rs.10/- each

Rs. 0.500 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares

Rs.10/- each

Rs. 0.500 Million

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

0.500

0.500

0.500

(b) Reserves & Surplus

34.300

24.900

24.400

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

34.800

25.400

24.900

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

0.000

0.000

0.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

404.300

873.900

3320.486

(b) Trade payables

9705.200

2918.200

243.547

(c) Other current liabilities

1785.500

1188.500

1388.227

(d) Short-term provisions

2.500

0.000

11.513

Total Current Liabilities (4)

11897.500

4980.600

4963.773

 

 

 

 

TOTAL

11932.300

5006.000

4988.673

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1012.600

1199.900

1427.698

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

268.000

285.200

269.926

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

49.800

51.800

51.911

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

208.700

125.500

105.482

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1539.100

1662.400

1855.017

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

865.500

946.000

507.896

(c) Trade receivables

3643.200

1650.800

1828.229

(d) Cash and cash equivalents

29.400

32.900

18.677

(e) Short-term loans and advances

5602.300

472.500

523.502

(f) Other current assets

252.800

241.400

255.352

Total Current Assets

10393.200

3343.600

3133.656

 

 

 

 

TOTAL

11932.300

5006.000

4988.673

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

 

SALES

 

 

 

 

 

Income

9734.800

2783.400

4689.196

 

 

Other Income

16.800

8.000

14.230

 

 

TOTAL                                     (A)

9751.600

2791.400

4703.426

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

3557.600

1121.500

2736.597

 

 

Employee benefit expense

169.100

14.100

145.090

 

 

Other expenses

5747.600

1387.200

1426.630

 

 

TOTAL                                     (B)

9474.300

2522.800

4308.317

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

277.300

268.600

395.109

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

78.100

40.200

52.771

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

199.200

228.400

342.338

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

187.300

227.800

340.347

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)                 (G)           

11.900

0.600

1.991

 

 

 

 

 

Less

TAX                                                                  (H)

2.500

0.100

(14.198)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX (G-H)                  (I)

9.400

0.500

16.189

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

24.900

24.400

8.211

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

34.300

24.900

24.400

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Stores and Spares

2080.100

0.000

NA

 

TOTAL IMPORTS

2080.100

0.000

NA

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

188.59

9.44

323.78

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

0.10

0.02

0.34

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.12

0.02

0.04

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.10

0.01

0.04

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.34

0.02

0.08

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

11.62

34.41

133.35

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.87

0.67

0.63

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

9]

Name of person contacted

No

10]

Designation of contact person

No

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

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

No

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

 

 

CURRENT MATURITIES OF LONG TERM DEBTS : NOT AVAILABLE

 

 

INDEX OF CHARGES : NO CHARGES EXIST FOR COMPANY

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Loan from Holding company

295.300

873.900

Buyer's Credit

109.000

0.000

Total

404.300

873.900

 

Note:

 

Foreign Currency Loans from Banks (Buyer's Credit)

 

 

OPERATIONS

 

The Company owns world class nationwide chain of retail stores comprising of more than 1,000 Reliance World and Reliance Mobile stores known as Reliance World and Reliance Mobile stores for GSM, CDMA and 3G voice and data products and services. They also offer a wide array of handsets and data devices and are a one stop shop for all customer sales and service needs. The retail network provides new postpaid and prepaid activations, prepaid recharges, postpaid bill payments, handles customers queries and requests. The Company has nearly 100 video conferencing rooms across India with Reliance World stores, they are one of the world’s largest network of video conferencing enabled telecom retail chain.

 

The Company has entered into various contracts in the areas of retail business, while benefits from such contracts will accrue in the future years; the Board of Directors shall periodically review their progress.

 

 

CONTINGENT LIABILITIES:

 

PARTICULARS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

i) Estimated amount of contracts remaining to be executed on capital accounts and not provided for

4.500

0.200

ii) Disputed Liabilities in Appeal

 

 

Entry Tax

1.100

0.900

Sales Tax & Value Added Tax

25.300

31.300

Service Tax

5.200

0.000

 

The Company has deposited Rs. 0.200 Million (Previous Year Rs. 0.200 Million) under protest with the Sales Tax Authority and Rs. 0.200 Million (Previous Year Rs. 0.200 Million) with Entry Tax Authority against the demands so raised.

 

iii) Corporate Gurantee given by Reliance Communications Limited, Holding Company on behalf of the Company is Rs. 2905.600 Millions (Previous Year NIL)

 

 

FIXED ASSETS

 

·         Leasehold Improvement

Plant and Machinery

Furniture and Fixtures

Vehicles

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.61.92

UK Pound

1

Rs.99.60

Euro

1

Rs.83.64

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

45

 

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

 

--

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.