MIRA INFORM REPORT

Report Date :

01.08.2014

IDENTIFICATION DETAILS

Name :	AIRPLAZA RETAIL HOLDINGS PRIVATE LIMITED (w.e.f.21.09.2010)
Formerly Known As :	AIRPLAZA MANAGEMENT SERVICES PRIVATE LIMITED
Registered Office :	5th Floor, Mookambika Complex, No.4, Lady Desika Road, Mylapore, Chennai - 600004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.02.2008
Com. Reg. No.:	18-066278
Capital Investment / Paid-up Capital :	Rs.100.100 Millions
CIN No.: [Company Identification No.]	U52399TN2008PTC066278
PAN No.: [Permanent Account No.]	AAICA7614B
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is in the business of retail trading of apparels, fast moving consumer goods (FMCG) and general merchandise.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 1700000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating is constrained on account of the company’s previous year’s losses and minimal profit achieved during 2013. However, trade relations are reported as fair. Business is active. Payment terms 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.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 %! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY (PARTIAL DETAILS)

Name :	Mr. R. Vasudevan
Designation :	Director
Contact No.:	91-8056026916
Date :	29.07.2014

LOCATIONS

Registered Office :	5th Floor, Mookambika Complex, No.4,Lady Desika Road, Mylapore, Chennai - 600004, Tamilnadu, India
Tel. No.:	91-44-24997133
Mobile No.:	91-8056026916 (Mr. R. Vasudevan)
Fax No.:	91-44-24990549
E-Mail :	secretarial@proactivesolutech.com
Hyper Market :	Plot No. 332, Behind Shokeen Farmlands Off NH-8, Rangpuri, New Delhi – 110037, India
Tel. No.:	91-11-26784281 / 32431321
E-Mail :	akshay.puri@vrpl.in

DIRECTORS

As on 27.09.2013

Name :

Mr. R. Vasudevan

Designation :

Director

Address :

341-A, 6th Main Road, Vijaya Nagar, Velechery, Chennai – 600042, Tamilnadu, India

Date of Birth/Age :

17.03.1958

Date of Appointment :

20.10.2010

DIN No.:

00056355

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U74140TN1998PTC039867	PROACTIVE SOLUTECH (INDIA) PRIVATE LIMITED	Director	10/02/1998	10/02/1998	-	Active	NO
2	U67120TN1995PLC031813	Shriram Insight Share Brokers Limited	Director	03/04/2004	03/04/2004	-	Active	NO
3	U52399TN2008PTC066278	AIRPLAZA RETAIL HOLDINGS PRIVATE LIMITED	Director	30/09/2011	01/02/2008	-	Active	NO

Name :

Mr. Rangasami Seshadri

Designation :

Director

Address :

Flat C, Anandham Apartments, Door No.4, New No.7, II Street, East Abhiramapuram, Chennai – 600004, , Tamilnadu, India

Date of Birth/Age :

23.03.1957

Date of Appointment :

20.10.2010

DIN No.:

00197586

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	L63090TN2000PLC046338	TAKE SOLUTIONS LIMITED	Alternate director	30/01/2010	20/12/2000	21/05/2010	Active	NO
2	U72200TN2000PTC044317	APA ENGINEERING PRIVATE LIMITED	Director	28/08/2009	29/01/2009	09/04/2013	Active	NO
3	U52399TN2008PTC066278	AIRPLAZA RETAIL HOLDINGS PRIVATE LIMITED	Director	30/09/2011	20/10/2010	-	Active	NO

Name :

Mr. Govindan Ganesan Iyer

Designation :

Director

Address :

Flat No. 801, Tower 2, Orchid Petals, Gurgaon - 122001, India

Date of Birth/Age :

29.04.1961

Date of Appointment :

18.02.2013

DIN No.:

06502599

MAJOR SHAREHOLDERS

As on 27.09.2013

Names of Shareholders	No. of Shares
Shriram Distribution Services Private Limited, India	10009990
G.Rathnakumar	10
Total	10010000

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2013

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The Company is in the business of retail trading of apparels, fast moving consumer goods (FMCG) and general merchandise.
Brand Name :	Vishal Mega Mart

GENERAL INFORMATION

No. of Employees :

Information denied by management

Bankers :

Not Divulged

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Loans repayable on demand from banks	0.004	57.461
Total	0.004	57.461

Banking Relations :	--
Auditors :
Name :	BSSR and Company Chartered Accountants
Address :	Building 10, 8^th Floor, Tower B, DLF Cyber City Phase II , Gurgaon - 12202, Haryana, India
PAN.:	AAKFB4430H
Holding Company :	· Shriram Distribution Services Private Limited CIN No.: U74999TN2009PTC071206 · Shriram Venture Limited CIN No.: U74900TN1995PLC032506

CAPITAL STRUCTURE

As on 27.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10010000	Equity Shares	Rs.10/- each	Rs.100.100 Millions

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	100.100	100.100	100.100
(b) Reserves & Surplus	325.459	325.353	388.363
(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)	425.559	425.453	488.463
(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	38.535	31.968	13.472
Total Non-current Liabilities (3)	38.535	31.968	13.472
(4) Current Liabilities
(a) Short term borrowings	0.004	57.461	0.000
(b) Trade payables	2,543.623	2,329.048	1,009.502
(c) Other current liabilities	102.452	74.125	24.833
(d) Short-term provisions	112.096	179.509	201.721
Total Current Liabilities (4)	2,758.175	2,640.143	1,236.056
TOTAL	3,222.269	3,097.564	1,737.991
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	147.229	107.530	312.770
(ii) Intangible Assets	158.719	170.974	0.000
(iii) Capital work-in-progress	0.000	5.254	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(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	194.098	177.847	158.942
(e) Other Non-current assets	3.085	0.592	1.335
Total Non-Current Assets	503.131	462.197	473.047
(2) Current assets
(a) Current investments	43.071	381.927	0.000
(b) Inventories	2,283.376	1,932.462	664.181
(c) Trade receivables	1.100	1.484	0.000
(d) Cash and cash equivalents	334.600	279.058	593.080
(e) Short-term loans and advances	47.421	28.889	6.898
(f) Other current assets	9.570	11.547	0.785
Total Current Assets	2,719.138	2,635.367	1,264.944
TOTAL	3,222.269	3,097.564	1,737.991

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	11895.344	9183.433	299.490
		Other Income	NA	NA	2.161
		TOTAL	NA	NA	301.651
Less	EXPENSES		NA	NA	312.877
		TOTAL
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		NA	NA	(11.226)
Less	FINANCIAL EXPENSES		NA	NA	0.377
	PROFIT/(LOSS) BEFORE TAX		0.106	(63.010)	(11.603)
Less	TAX		0.000	0.000	0.000
	PROFIT/(LOSS) AFTER TAX		0.106	(63.010)	(11.603)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(74.647)	(11.637)	(0.034)
	BALANCE CARRIED TO THE B/S		(74.541)	(74.647)	(11.637)
	Earnings Per Share (Rs.)		0.01	(6.29)	(19.82)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	NA	NA	(3.85)
Net Profit Margin (PBT/Sales)	(%)	0.00	(0.69)	(3.87)
Return on Total Assets (PBT/Total Assets}	(%)	0.00	(2.04)	(0.67)
Return on Investment (ROI) (PBT/Networth)		0.00	(0.15)	(0.02)
Debt Equity Ratio (Total Debt /Networth)		0.00	0.14	0.00
Current Ratio (Current Asset/Current Liability)		0.99	1.00	1.02

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	100.100	100.100	100.100
Reserves & Surplus	388.363	325.353	325.459
Net worth	488.463	425.453	425.559
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	57.461	0.004
Total borrowings	0.000	57.461	0.004
Debt/Equity ratio	0.000	0.135	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	299.490	9,183.433	11,895.344
		2,966.357	29.530

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	299.490	9,183.433	11,895.344
Profit	(11.603)	(63.010)	0.106
	(3.87%)	(0.69%)	0.00%

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	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	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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BACKGROUND

The Company is a wholly owned subsidiary of Shriram Distribution Services Private Limited. The Company had acquired the business of the retail undertaking of Vishal Retail Limited on 14 March 2011. The Company is in the business of retail trading of apparels, fast moving consumer goods (FMCG) and general merchandise in its stores located in various states of India.

OPERATIONS

The Company’s turnover increased from 9183.400 Millions to 11895.300 Millions during the year representing an increase of 29.53%. With the business environment continuing to be under stress, the Directors feel that the performance has been commendable.

The Company also posted a small profit of Rs.0.106 Million in the year against a loss of Rs.63.010 Millions in the previous year. The Directors are taking all efforts to ensure that this improvement in performance is maintained in the current financial year as well.

NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.60.25
UK Pound	1	Rs.101.25
Euro	1	Rs.80.70

INFORMATION DETAILS

Information Gathered by :	PDT
Analysis Done by :	DIV
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		32

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.