MIRA INFORM REPORT

 

 

Report Date :

23.09.2013

 

IDENTIFICATION DETAILS

 

Name :

HYPERCITY RETAIL (INDIA) LIMITED (w.e.f. 30.03.2007) 

 

 

Formerly Known As :

HYPERCITY RETAIL (INDIA) PRIVATE LIMITED (w.e.f. 04.03.2005)

 

RAINBOW RETAIL PRIVATE LIMITED

 

 

Registered Office :

Plot No. C-30, Block ‘G’, Opposite SIDBI, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.05.2004

 

 

Com. Reg. No.:

11-146577

 

 

Capital Investment / Paid-up Capital :

Rs. 4610.873 Millions

 

 

CIN No.:

[Company Identification No.]

U52510MH2004PLC146577

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MIUMR16595F

 

 

PAN No.:

[Permanent Account No.]

AACCR8461K

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The company mainly operates in Retail Operations i.e. Trading of Food Products, Household Items and Apparels.

 

 

No. of Employees :

Information Decline by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 370000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is a subsidiary of “Shopper stop Limited”.

 

It is a well established company having a moderate track record. There appears huge accumulated losses recorded by the company. The external borrowing seems to be huge which act as a threat to the liquidity of the company.

 

However, the company gets strong support from its holding companies. The promoters seem to be well experience businessman.

 

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

 

The company can be considered for business dealings with some cautions.

 

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

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term Bank Facilities: BBB+

Rating Explanation

Having moderate degree of safety regarding timely servicing of financial obligation, it carry moderate credit risk.

Date

December, 2012

 

 

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

 

Contact No.: 91-22-40695555/26002177

 

 

LOCATIONS

 

Registered Office :

Plot No. C-30, Block ‘G’, Opposite SIDBI, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-26564000/ 26002177

Fax No.:

91-22-26564909

E-Mail :

prashant.mehta@shppersstop.com

rohit.mistry@hypercityindia.com

bharat.sanghavi@shopperstop.com

govind.shrikhande@shoppersstop.com

Website :

http://www.hypercityindia.com

Area :

1000 Sq ft

Location :

Owned

 

 

Corporate Office 1 :

“Paradigm”, A Wing, 1st Floor, Mindspace, Malad Link Road, Malad (West), Mumbai – 400 064, Maharashtra, India

Tel. No.:

91-22-40695555

Fax No.:

91-22-40032120

E-Mail :

feedback@hypercityindia.com

Location :

Owned

 

 

Corporate Office 2 :

Eureka Towers, C Wing, Mindspace, Malad (West), Mumbai, Maharashtra, India

 

 

Retail Stores :

Located at:

 

·         Mumbai

·         Thane

·         Jaipur

·         Hyderabad

·         Bangalore (2 Stores)

·         Amritsar

·         Ludhiana

·         Bhopal

 

 

DIRECTORS

 

As on: 30.07.2012

 

Name :

Mr. Chandru Lachmandas Raheja

Designation :

Director

Address :

Raheja House 53, A Pali Hill, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

12.10.1940

Qualification :

L.L.B

Date of Appointment :

27.05.2004

PAN No.:

AAAPR5867Q

DIN No.:

00027979

 

 

Name :

Mr. Ravi Chandru Raheja

Designation :

Director

Address :

Raheja House 53, A Pali Hill, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

23.09.1971

Qualification :

B.Com and M.B.A

Date of Appointment :

27.05.2001

PAN No.:

AADPR5769A

DIN No.:

00028044

 

 

Name :

Mr. Neel Chandru Raheja

Designation :

Director

Address :

Raheja House 53, A Pali Hill, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

27.06.1974

Qualification :

M.com and L.L.B

Date of Appointment :

27.05.2004

PAN No.:

AAAPR5866R

DIN No.:

00029010

 

 

Name :

Mr. Nagesh Satyanarayan Basavanhalli

Designation :

Vice Chairman

Address :

Park Plaza, 81 and 82, 8th Floor, B-Wing, New Yari Road,  Versova, Andheri (West), Mumbai – 400 061, Maharashtra, India

Date of Birth/Age :

12.04.1959

Qualification :

Masters Management Studies

Date of Appointment :

23.05.2005

PAN No.:

AAEPB0301K

DIN No.:

00027595

 

 

Name :

Mr. Deepak Keshav Ghaisas

Designation :

Director

Address :

B/61-62, Swapnashilp, Mahant Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India 

Date of Birth/Age :

19.11.1957

Qualification :

B.Com, A.C.A, A.I.C.W.A, F.C.S

Date of Appointment :

04.08.2010

PAN No.:

AABPG9317P

DIN No.:

00001811

 

 

Name :

Mr. Nitin Jagubhai Sanghavi

Designation :

Director

Address :

15, Sunningdale Avenue, Leeds 17, London LS177SD, United Kingdom 

Date of Birth/Age :

28.12.1948

Qualification :

B.SC (Hons), Msc, PHD, D.M.S.C, F.R.S.A

Date of Appointment :

23.09.2010

DIN No.:

00863107

 

 

Name :

Mr. Govind Shridhar Shrikhande

Designation :

Director

Address :

Flat No. 1801, 18th Floor, Brooke Villa, Mughal Lane, Matunga (West), Mumbai – 400 016, Maharashtra, India

Date of Birth/Age :

07.09.1960

Qualification :

Graduate-Textiles and M.B.A

Date of Appointment :

25.07.2011

PAN No.:

AMTPS0849J

DIN No.:

00029419

 

 

KEY EXECUTIVES

 

Name :

Mr. Bharat Kanaklal Sanghavi

Designation :

Company Secretary and Manager

Address :

202, Bhoomi Garden, Mahavir Nagar, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

05.04.1971

Date of Appointment :

01.09.2010

PAN No.:

APRPS4260C

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.07.2012

 

Names of Shareholders

 

 

No. of Equity Shares

 

 

 

Support Properties Private Limited jointly with Anbee Construction Private Limited, India  

 

1

Support Properties Private Limited jointly with Cape Trading Private Limited, India 

 

1

Support Properties Private Limited jointly with Capstan Trading Private Limited, India

 

1

Support Properties Private Limited jointly with Casa Maria Properties Private Limited, India

 

1

Support Properties Private Limited jointly with Palm Shelter Estate Development Private Limited, India 

 

1

Shopper’s Stop Limited, India

 

484500

Support Properties Private Limited, India

 

227995

Eternus Logistics Private Limited, India 

 

228000

Palm Shelter Estate Development Private Limited , India

 

950

Anbee Construction Private Limited, India

 

950

Cape Trading Private Limited, India

 

950

Capstan Trading Private Limited, India

 

950

Casa Maria Properties Private Limited, India

 

950

Raghukool Estate Development Private Limited, India

 

950

Ravi Chandru Raheja

 

950

Chandru Lachmandas Raheja

 

950

Jyoti Chandru Raheja

 

950

Neel Chandru Raheja

 

950

 

 

 

Total

 

950000

 

As on: 30.07.2012

 

Names of Shareholders

 

No. of Preference Shares

Casa Maria Properties Private Limited, India

 

279000

Raghukool Estate Development Private Limited, India

 

279000

Capstan Trading Private Limited, India

 

279000

Palm Shelter Estate Development Private Limited, India

 

279000

Anbee Constructions Private Limited, India

 

279000

Cape Trading Private Limited, India

 

279000

Chandru L Raheja

 

279000

Jyoti C Raheja

 

279000

Ravi C Raheja

 

279000

Neel C Raheja

 

279000

Shopper’s Stop Limited, India

 

199990000

K Raheja Corp Private Limited

 

55437255

Support Properties Private Limited, India

 

66960000

Eternus Logistics Private Limited, India 

 

66960000

 

 

 

Total

 

392137255

 

 

(AS ON 27.12.2012)

 

Names of Allottees  (Preference Shares)

 

 

No. of Shares Allotted 

 

 

 

Shopper’s Stop Limited, India

 

11730000

K Raheja Corp Private Limited, India

 

11270000

 

 

 

Total

 

 

23000000

 

(AS ON 28.06.2013)

 

Names of Allottees  (Preference Shares)

 

 

No. of Shares Allotted 

 

 

 

Shopper’s Stop Limited, India

 

10200000

Genext Hardware and Parks Private Limited, India

 

9800000

 

 

 

Total

 

 

20000000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 30.07.2012

 

Category

 

Percentage

 

 

 

Bodies corporate

 

99.60

Directors or relatives of directors

 

0.40

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The company mainly operates in Retail Operations i.e. Trading of Food Products, Household Items and Apparels.

 

 

Products :

Products Description

Item Code No.

 

Food Products

99622290

 

 

GENERAL INFORMATION

 

No. of Employees :

Information Decline by the management

 

 

Bankers :

·         ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

·         IDBI Bank Limited, IDBI Towerwtc Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Long term borrowings

 

 

Term loans from banks

537.500

587.499

 

 

 

Short term borrowings

 

 

Working capital loans from others

911.440

877.862

Other loans and advance

67.870

40.116

 

 

 

Total

1516.810

1505.477

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

Tower 3, 27th - 32nd Floor, Indiabulls Finance Centre, Elphinstone Mill Compound, Senapati Bapat Marg, Elphinstone (West), Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-66679000

Fax No.:

91-22-66679100

PAN No.:

AACFD4815A

 

 

Holding Company :

·         Shoppers Stop Limited

CIN No.: L51900MH1997PLC108798

 

 

Fellow Subsidiaries :

·         Crossword Bookstores Limited

CIN No.:  U52396MH1999PLC122528

 

  • Gateway Multichannel Retail (India) Limited (From 14th November 2011)

CIN No.:  U52100MH2007PLC170243

 

 

Companies under common control/ Significant influence :

  • Avacado Properties and Trading India Private Limited

CIN No.:  U70100MH2002PTC137766

 

  • Ivory Properties and Hotels Private Limited

CIN No.:  U70100MH1982PTC026374

 

  • Inorbit Malls(India) Private Limited

CIN No.: U45200MH1999PTC117748

 

  • Trion Properties Private Limited

CIN No.:  U45200MH2005PTC157367

 

  • K. Raheja Private Limited

CIN No.:  U45200MH1973PTC017018

 

  • Magna Warehousing and Distribution Private Limited

CIN No.:  U60232KA2005PTC054207

 

 

Joint Venture :

  • Gateway Multichannel Retail (India) Limited (up 13th November, 2011)

CIN No.:  U52100MH2007PLC170243

 

 

CAPITAL STRUCTURE

 

As on: 30.07.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

405000000

Preference Shares

Rs.10/- each

Rs.4050.000 Millions

 

Total

 

 

Rs.4100.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

950000

Equity Shares

Rs.10/- each

Rs.9.500 Millions

392137255

Preference Shares

Rs.10/- each

Rs.3921.373 Millions

 

Total

 

 

Rs.3930.873 Millions

 

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

405000000

Preference Shares

Rs.10/- each

Rs.4050.000 Millions

 

 

 

 

 

Total

 

 

Rs.4100.000 Millions

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

950000

Equity Shares

Rs.10/- each

Rs.9.500 Millions

460137300

Preference Shares

Rs.10/- each

Rs. 4601.373 Millions

 

 

 

 

 

Total

 

 

Rs.4610.873 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

  1. EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

4610.873

3720.873

2799.500

(b) Reserves & Surplus

(4517.583)

(3640.266)

(2753.879)

(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)

93.290

80.607

45.621

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1372.500

1447.499

1472.788

(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

4.149

Total Non-current Liabilities (3)

1372.500

1447.499

1476.937

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

979.310

917.978

636.636

(b) Trade payables

690.106

594.654

461.639

(c) Other current liabilities

210.276

258.914

292.147

(d) Short-term provisions

7.960

5.169

2.724

Total Current Liabilities (4)

1887.652

1776.715

1393.146

 

 

 

 

TOTAL

3353.442

3304.821

2915.704

 

 

 

 

  1. ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1494.678

1597.459

1408.648

(ii) Intangible Assets

80.391

77.743

37.223

(iii) Capital work-in-progress

41.850

11.283

54.603

(iv) Intangible assets under development

0.000

0.000

26.748

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

474.135

431.812

387.874

(e) Other Non-current assets

12.998

33.697

0.000

Total Non-Current Assets

2104.052

2151.994

1915.096

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

982.287

923.013

707.749

(c) Trade receivables

74.094

33.687

57.775

(d) Cash and cash equivalents

74.633

37.535

92.107

(e) Short-term loans and advances

94.676

137.410

78.498

(f) Other current assets

23.700

21.182

64.479

Total Current Assets

1249.390

1152.827

1000.608

 

 

 

 

TOTAL

3353.442

3304.821

2915.704

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operations

7802.302

7220.507

5671.569

 

 

Other Income

19.361

30.697

36.365

 

 

TOTAL                                     (A)

7821.663

7251.204

5707.934

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of stock-in-trade

6122.407

5931.689

4664.279

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(59.274)

(215.264)

(165.097)

 

 

Employee benefit expense

604.994

577.213

446.069

 

 

Other expenses

1489.089

1362.925

1048.549

 

 

TOTAL                                     (B)

8157.216

7656.563

5993.800

 

 

 

 

 

Less

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

(335.553)

(405.359)

(285.866)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

328.110

320.258

273.638

 

 

 

 

 

 

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

(663.663)

(725.617)

(559.504)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

213.654

160.770

126.602

 

 

 

 

 

 

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

(877.317)

(886.387)

(686.106)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.000

 

 

 

 

 

 

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

(877.317)

(886.387)

(686.106)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(3640.266)

(2753.879)

(2067.773)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(4517.583)

(3640.266)

(2753.879)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Foreign currency and foreign credit Card collection on sale of merchandise

113.380

112.927

97.329

 

TOTAL EARNINGS

113.380

112.927

97.329

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Purchase of Merchandise

155.181

111.211

87.189

 

 

Capital Goods

1.452

2.197

8.226

 

 

Software

2.083

1.223

2.755

 

TOTAL IMPORTS

158.716

114.631

98.170

 

 

 

 

 

 

Earnings Per Share (Rs.)

(1269.24)

(1201.94)

(925.89)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(11.21)

(12.22)

(12.02)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(11.25)

(12.28)

(12.10)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(26.49)

(26.91)

(24.21)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(9.41)

(10.99)

(15.03)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

25.21

29.35

46.23

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.66

0.65

0.71

 

 

 

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

Yes

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

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

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

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

 

Particulars

31.03.2013

31.03.2012

31.03.2011

Current maturities of long-term debt

50.000

130.000

176.668

 

 

 

 

Total

50.000

130.000

176.668

 

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2013

As on

31.03.2012

Long term borrowings

 

 

Loans and advance from related parties

835.000

860.000

 

 

 

Total

835.000

860.000

 

NOTE: The Registered Office of the company has been shifted from Construction House, ‘A’ 24th Road, Khar (West), Mumbai - 400052, Maharashtra, India to the present address w.e.f. 08.07.2008.  

 

CASE DETAILS

 

Bench – Bombay

 

Stamp No.:

CRAST/11011/2013

Filing Date:

08.04.2013

 

 

 

 

Petitioner:

Mahindra Logistics Limited

Respondent:

Hypercity Retail (India) Limited

Petn. Adv.:

NG and Partners

 

 

District :

Mumbai

 

 

 

 

 

 

Bench:

Single

Stage:

--

Status:

Pre-Admission

 

 

Next Date:

15.04.2013

 

 

Coram:

Registrar (Judicial)

 

 

 

 

 

 

Act:

Code of Civil Procedure 1908

 

 

 

COMPANY BACKGROUND

 

The company was incorporated on May 27, 2004 as a Private Limited Company. The Company became a Public Limited Company on March 30, 2007. The Company is engaged in the business of retailing mainly food and grocery, health and beauty products, fruits and vegetables, home ware and homecare products, furniture, appliances, multimedia, sports, toys and readymade garments. The Company has recently made a foray into the Real Estate business. As at 31 March 2012, the Company operated through 12 Hypercity stores located in different cities of India.

 

PERFORMANCE REVIEW

 

During the year, the total revenues (net of taxes) of the Company was Rs.7589.300 millions (previous year Rs. 7070.265 millions), registering a growth of 7.3 %, year on year basis.

 

The Company has operated 12 stores for full year and has got same store sales growth of 4.5% over the preceding year.

 

Gross Margin was at 20.9% (against 20.7% Previous year*). Like to Like Opex growth (excluding rentals) was 0.4% and SOH income grew by 30% on Like to Like basis.

 

The above helped the Company achieve positive chain level Store EBIDTA for 7 consecutive quarters. Store EBIDTA for the FY12-13 is at Rs 42.800 Millions (previous year Rs (3.800) millions). LTL Store EBIDTA was Rs. 101.900 millions (previous year Rs 37.500 millions)

 

The Company added 0.275 million Discovery club members during the year and total member base increased to 0.659 million. Discovery club contributed 56% to overall sales mix.

 

During the year company transferred low margin Mobile business to 3 rd party operator and also right sized Amritsar store by reducing the chargeable area from 141k sq. ft to 62k sq. ft.

 

* Previous year numbers are adjusted for Mobile business transferred to 3rd party operator.

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10436453

03/07/2013

500,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA

B79447595

2

10348733

17/10/2012 *

500,000,000.00

YES BANK LIMITED

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.
ANNIE BESANT ROAD, WORLI, MUMBAI, Maharashtra -
400018, INDIA

B60330594

3

10310399

26/12/2011 *

750,000,000.00

KOTAK MAHINDRA BANK LIMITED

36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

B30294359

4

10230974

09/04/2012 *

500,000,000.00

YES BANK LIMITED

9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR.
ANNIE BESANT ROAD, WORLI, MUMBAI, Maharashtra -
400018, INDIA

B37003878

5

10007721

08/11/2012 *

450,000,000.00

IDBI BANK LIMITED

47, Opus Centre, Opp. Tunga Paradise, Central Road, MIDC, Andheri (East), MUMBAI, Maharashtra - 400093, INDIA

B61711123

6

10027473

10/12/2010 *

200,000,000.00

INDIAN OVERSEAS BANK

BANDRA (WEST) BRANCH, RADHASWAMI APARTMENTS, 36TH TPS III, MUMBAI, Maharashtra - 400050, INDIA

B02504520

 

 

* Date of charge modification

 

FIXED ASSETS:

 

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Other equipments

·         Computer

·         Leasehold Improvements

 

 


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. 62.24

UK Pound

1

Rs. 99.90

Euro

1

Rs. 84.22

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

DPH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

1

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

2

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

 

28

 

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.