MIRA
INFORM REPORT
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Report Date : |
29.07.2014 |
IDENTIFICATION DETAILS
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Name : |
SHOPPERS STOP LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
16.06.1997 |
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Com. Reg. No.: |
11-108798 |
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Capital Investment
/ Paid-up Capital : |
Rs. 416.079 Millions |
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CIN No.: [Company Identification
No.] |
l51900mh1997plc108798 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
mums39981E / MUMS22857C |
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PAN No.: [Permanent Account No.] |
AABCS4383A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject
is engaged in the business of retailing a variety of household and consumer products
through departmental stores. |
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No. of Employees
: |
Information declined by management |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is well-established and reputed company having fine track
record. The rating reflects company’s healthy financial risk profile marked by
established track record of business operation in the retail industry along
with strong brand loyalty among its consumers and adequate liquidity position
of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal business dealings 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
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a quarter
of a century. The data was below an official estimate of 4.9 % annual growth
and compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term bank facilities : “A” |
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Rating Explanation |
Adequate degree of safety and low credit
risk. |
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Date |
18.10.2013 |
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Rating Agency Name |
CARE |
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Rating |
Short term bank facilities: “A1” |
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Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
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Date |
18.10.2013 |
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 DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-42497000)
LOCATIONS
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Registered/ Service Office: |
Eureka Towers, B-Wing, 9th Floor, plot No. 504, Mindspace Link Road, Malad (West), Mumbai –
400064, Maharashtra, India |
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Tel. No.: |
91-22-42497000 |
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Fax No.: |
91-22-28808877/ 28445060 |
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E-Mail : |
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Website : |
www.shoppersstop.com
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Store locations : |
Western Region 1. 211-D, S. V. Road, Andheri (West), Mumbai – 400058, Maharashtra, India 2. Krushal Commercial Complex, G. M. Road, Chembur (West), Mumbai – 400089, Maharashtra, India 3. Suburbia, Old Bandra Talkies, Linking Road, Bandra (West), Mumbai – 400050, Maharashtra, India 4. Nirmal Lifestyles, L. B. S. Marg, Mulund (West), Mumbai – 400080, Maharashtra, India 5. lnorbit Mall, Link Road, Malad (West), Mumbai – 400064, Maharashtra, India 6. Dynamix Mall, Sant Dhyaneshwar Marg, JVPD Scheme, Next to Chandan Cinema Hall, Vile Parle (West), Mumbai – 400049, Maharashtra, India 7. Godrej Eternia, B Wing, Shivaji Nagar, Mumbai-Pune Road, Pune – 411005, Maharashtra, India 8. HomeStop, lnorbit Mall, 2nd Floor, Link Road, Malad (West), Mumbai – 400064, Maharashtra, India 9. Prozone Mall, Plot Sector-C, Chikalthana Industrial Area, Masantpur, Aurangabad – 431210, Maharashtra, India 10. lnorbit Mall, Vashi, Navi Mumbai – 400705, Maharashtra, India 11. HomeStop, lnorbit Mall, 2nd Floor, Vashi, Navi Mumbai – 400705, Maharashtra, India 12. lnorbit Mall, Wadgaon Sheri, Nagar Road, Pune – 411014, Maharashtra, India 13. Alpha G, Near Vastrapur Lake, Vastrapur, Ahmedabad – 380054, Gujarat, India 14. R City Mall, LBS Marg, Ghatkopar (West), Mumbai – 400086, Maharashtra, India 15. Pacific Mall, S. No 42, 43, Shankar Seth Road, Pune - 411037, Maharashtra, India 16. Opposite Alankar Talkies, Chainsukh Road, Latur – 413512, Maharashtra, India 17. HomeStop, lnorbit Mall, 2nd Floor, Wadgaon Sheri, Nagar Road, Pune – 411014, Maharashtra, India 18. HomeStop, R City, 2nd Floor, LBS Marg, Ghatkopar (West), Mumbai – 400086, Maharashtra, India 19. HomeStop, FP No. 21 6, TP Scheme -1, Vastrapur, Ahmedabad – 380054, Gujarat, India 20. Koregaon Park Shopping Centre, S. No. 37, Hissa No. 4, Village Mouje, Gorpadi Taluka, Pune – 411001, Maharashtra, India 21.
Metro Junction Mall, Shil Road, Kalyan – 421306, Maharashtra,
India 22.
VR Mall, Near Magdalia Chokdi, Dumas Road, Surat – 395007, Gujarat, India 23.
Viviana Mall, Eastern Express Highway, Thane –
400062, Maharashtra, India 24. Alembic Road, Subhanpura, Vadodara – 390003, Gujarat, India Southern Region 1. Garuda Star Mall, Magrath Road, Ashok Nagar, Bangalore – 560025, Karnataka, India 2. Commerce@Mantri, Ground Floor, N.S. Palya, Bannerghatta Road, Bangalore – 566076, Karnataka, India 3. Mantri Square, No. 1. Sampige Road, Malleshwaram, Bangalore – 560003, Karnataka, India 4. Salarpuriya Tower - II, Near Forum Mall, Kormangala Industiral Layout, Bangalore – 560095, Karnataka, India 5. Plot No. 1-11-251/1, Alladin Mansion, Begumpet, Hyderabad – 500016, Andhra Pradesh, India 6. No. 2, Harrington Road, Chetpet, Chennai – 600031, Tamilnadu, India 7. GVK One Mall, Road No. 01, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India 8. lnorbit Mall, Apiic Software Layout, Hitech City, Cyberabad, Hyderabad – 500081, Andhra Pradesh, India 9. Passenger Terminal Building, Shamshabad Airport, Rangareddy, Hyderabad – 500409, Andhra Pradesh, India 10. Passenger Terminal Building, Bengaluru International Airport, Devanahalli, Bangalore – 560300, Karnataka, India 11. HomeStop, Raheja Point No. 1712, Magrath Road, Bangalore – 560025, Karnataka, India 12. Rarnee Mall, 365, Anna Salai, Teynampet, Chennai – 600018, Tamilnadu, India 13. HorneStop, Royal Meenakshi Mall, Shop No - S008, Bannergetta Road. Opposite Meenakshi Temple, Bangalore – 560076, Karnataka, India 14. Homestop. LEPL Icon, Vijayawada – 520008, Andhra Pradesh, India 15. 1st and 2nd Floor, Celebros Shyarnala Towers, 13 Acrot Road, Saligramarn, Chennai – 600093, Tamilnadu, India 16. LEPL Icon Mall, Vijayawada – 520008, Andhra Pradesh, India 17. OMR, Ground Floor, Gopalan Signature Towers, Opposite RMZ Infinity, Old Madras Road, Bangalore – 560096, Karnataka, India 18. Mall of Mysore, lndira Nagar Extension, Nazarabad Mohalla, M.G. Road, Mysore – 570010, Karnataka, India 19. HorneStop. lnorbit Mall, Apiic Software Layout, Hitech City, Cyberabad, Hyderabad – 500081, Andhra Pradesh, India 20. Inorbit Mall – Whitefield, EPIP Area, Whitefield, Bengaluru – 560 066 21. E-City Mall, S-7, No. 474, Near Rangavilas Mill, Avinash Road, Near PSG Krishnamrnal College, Coirnbatore – 641004, Tamilnadu, India 22. HorneStop. E-City Mall, Near Rangavilas Mill, Avinash Road, Near PSG Krishnarnmal College, Coimbatore – 641004, Tamilnadu, India 23. "Soul Space Arena" Outer Ring Road, Doddanekkundi Village, K R Purarn Habli, Bangalore – 560037, Karnataka, India 24. Hornestop, Phoneix Market City, 142 Velachery Main Road, Velachery, Chennai – 600042, Tamilnadu, India 25. Homestop, Manjeera Trinity Mall, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India 26. The Grand Mall, No. 137, Dr. Seetharam Nagar, Velachery, Chennai - 600042, Tamilnadu, India 27. Homestop, SJR Padukone Plaza, (Shop in Shop Crossword), 18th Main Road, Koramangla, Bengaluru – 560034, Karnataka, India 28. Manjeera, Trinity Mall, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India 29. Homestop, Embassy Paragon, (Shop in Shop Hypercity), ITPL Main Road, Bengaluru – 560037, Karnataka, India Northern Region 1. Ansal Plaza, Hudco Palace, Aridrew Ganj, Khelgaon Marg, Near South Extension, New Delhi – 110049, India 2. The Metropolitan Mall, Mehrauli-Gurgaon Road, Gurgaon - 122002, Haryana, India 3. Shipra Mall, Shipra Suncity, 9 Vaibhav Khand, Indirapuram, Ghaziabad – 201012, Uttar Pradesh, India 4. HorneStop, Plot No. A/3, Select City Walk, District Centre, Saket, New Delhi – 110017, India 5. E - City Mall, Opposite Paryatan Bhavan, Beside Eldeco Green Compound, Gornti Nagar, Lucknow – 226010, Uttar Pradesh, India 6. Eros Mall, Shivaji Palace, Rajouri Garden, Rajouri, New Delhi – 110027, India 7. The Great lndi Palace, New Okhla Industrial Development Area, Noida - 201301, Uttar Pradesh , India 8. Metropoliian Mall, Press Enclave Road, District Centre Saket, Sector II, New Delhi – 110017, India 9. Suncity Triton Mall, Near Bhawani Niketan College, Off Sikar Road, Sitararnpura, Tehsil Sawai, Jaipur – 302012, Rajasthan, India 10. Alpha One Mall, MBN Farms, Sultan Wind, Main G. T. Road, Amritsar – 143010, Punjab, India 11. Ambience Mall, Nelson Mandela Road, Vasant Kunj, New Delhi – 110070, India 12. DB City Mall, Arm Hills, Bhopal - 462011, Madhya Pradesh, India 13. Spaze I, Tech Park, Gurgaon, Spaze Mall, Sohna Road, Gurgaon – 122002, Haryana, India 14. Rohini, Plot No. 3b1, Twin District Centre-1, Sector - 10, Adjacent to Rithala Metro Station, Rohini, New Delhi - 1 0085, India 15. BPK Star Building, Opposite Lig Gurudwam, A.B. Road, lndore – 452001, Madhya Pradesh, India 16. Hornestop 2nd Floor, Fun Republic Mall, Gomti Nagar, Lucknow – 206010, Uttar Pradesh, India 17. MBD Neopolis Mall, Civil Lines, Beside Hotel Raddison, BMC Chowk, GT Road, Jalandar – 144001, Punjab, India 18. World Trade Park, South Block, 1JLN Marg, Malviya Nagar, Jaipur – 302017, Rajasthan, India 19. Elante Mall, Industrial Area Phase -1, Chandigarh – 160 002 20. New Udaan Bhawan, Indira Gandhi International Airport, New Delhi – 110 037 21. OMaxe SRK Mall, Nagala Padi, Agra – 280002, Uttar Pradesh, India 22. Jaipur International Airport (Departure - Level 2), New Terminal Building T-2, Jaipur – 302011, Rajasthan, India 23. HomeStop, Elante Mall, Industrial Area Phase -1, Chandigarh – 160002 (U.T.), India 24. HomeStop, Gaurav Towers 2, Indira Palace, Malaviya Nagar, Jaipur – 302017, Rajasthan, India 25. Gaur Central Mall, Rajnagar, Ghaziabad – 201002, Uttar Pradesh, India Eastern Region 1. 10/3, Lala Lajpat Rai Sarani (Elgin Road), Kolkata – 700020, West Bengal, India 2. City Centre, DC-1, Sector-1, Salt Lake, Kolkata – 700064, West Bengal, India 3. South City Mall, 375, Prince Anwar Shah Road, Opposite Jodhpur Park, Kolkata – 700068, West Bengal, India 4. Junction Mall, Mouza - Faridpur, J. L. No. 74, City Centre, Durgapur – 713216, West Bengal, India 5.
City Centre, Siliguri Uttomyon Township, NH -
31, Matigara, Siliguri – 734010, West Bengal, India 6.
Vidhan
Sabha Road, Village Mowa, Raipur – 492005, Chhattisgarh, India 7.
New
Integrated Terminal Building, Swami Vivekanand Airport, Raipur – 492001, Chhattisgarh,
India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Chandru Raheja |
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Designation : |
Chairman |
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Name : |
B. S. Nagesh |
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Designation : |
Vice Chairman |
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Name : |
Govind Shrikah |
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Designation : |
Managing Director |
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Name : |
Mr. Ravi C. Raheja |
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Designation : |
Director |
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Name : |
Mr. Neel C. raheja |
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Designation : |
Director |
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Name : |
Mr. Gulu L. Mirchandani |
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Designation : |
Director (Upto 31.07.2014) |
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Name : |
Mr. Shahzaad S. Dalal |
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Designation : |
Director (Upto 31.07.2014) |
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Name : |
Mr. Nitin Sanghavi |
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Designation : |
Director |
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Name : |
Mr. Deepak Ghaisas |
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Designation : |
Director |
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Name : |
Nirvik Singh |
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Designation : |
Director |
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Name : |
Avnish Bajaj |
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Designation : |
Director |
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Date of Appointment : |
25.10.2013 |
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Name : |
Abanti Sankaranarayanan |
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Designation : |
Director |
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Date of Appointment : |
19.06.2014 |
KEY EXECUTIVES
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Name : |
Mr. Prashant Mehta |
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Designation : |
Vice President - Legal and Company Secretary |
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Audit Committee : |
Ř Deepak Ghaisas - Chairman Ř Ravi C. Raheja - Member Ř Nitin Sanghavi- Member Ř Shahzaad S.
Dalal - Member |
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Remuneration/ Compensation Committee : |
Ř Gulu L.
Mirchandani - Chairman Ř Ravi C. Raheja - Member Ř Nitin Sanghavi - Member Ř Shahzaad S.
Dalal - Member |
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Finance Committee : |
Ř Ravi C. Raheja - Chairman Ř Neel C. Raheja - Member Ř B. S. Nagesh - Member Ř Govind
Shrikhande - Member |
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Stakeholders
Relationship Committee : |
Ř Ravi C. Raheja - Chairman Ř Neel C. Raheja - Member Ř B. S. Nagesh - Member |
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Management
Team : |
Ř Govind Shrikhande Ř Sail Nair Ř Anil Shankar Ř Ashwin Babbar Ř BVM Rao Ř CK Nair Ř Gopal Asthana Ř Manohar Kamath Ř Prashant Mehta Ř Sanjay Chakravarti Ř Vinay Bhatia |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Names of Shareholders |
No. of Shares |
% of Holding |
|
(A) Shareholding of Promoter and
Promoter Group |
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3695000 |
4.44 |
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|
52334674 |
62.85 |
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|
56029674 |
67.29 |
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Total shareholding of Promoter and
Promoter Group (A) |
56029674 |
67.29 |
|
(B) Public Shareholding |
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|
12369067 |
14.85 |
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|
13796 |
0.02 |
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|
2394549 |
2.88 |
|
|
14777412 |
17.75 |
|
|
|
|
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|
9750546 |
11.71 |
|
|
|
|
|
|
1006546 |
1.21 |
|
|
1649043 |
1.98 |
|
|
56636 |
0.07 |
|
|
7148 |
0.01 |
|
|
30534 |
0.04 |
|
|
18954 |
0.02 |
|
|
12462771 |
14.97 |
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Total Public shareholding (B) |
27240183 |
32.71 |
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Total (A)+(B) |
83269857 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
83269857 |
100.00 |
Shareholding of securities (including
shares, warrants, convertible securities) of persons belonging to the category Promoter
and Promoter Group
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
|
|
No. of Shares held |
As a % |
||
|
1 |
Palm Shelter Estate Development Private Limited |
1,18,13,300 |
14.19 |
|
2 |
Raghukool Estate Development Private Limited |
82,63,300 |
9.92 |
|
3 |
Capstan Trading Private Limited |
81,29,768 |
9.76 |
|
4 |
Casa Maria Properties Private Limited |
79,13,300 |
9.50 |
|
5 |
Anbee Construction Private Limited |
65,11,762 |
7.82 |
|
6 |
Cape Trading Private Limited |
62,61,040 |
7.52 |
|
7 |
K Raheja Corp Private Limited |
33,82,204 |
4.06 |
|
8 |
Neel Chandru Raheja |
11,50,000 |
1.38 |
|
9 |
Ravi Chandru Raheja |
11,00,000 |
1.32 |
|
10 |
Jyoti Chandru Raheja |
7,47,500 |
0.90 |
|
11 |
Chandru Lachmandas Raheja |
6,97,500 |
0.84 |
|
12 |
Inorbit Malls India Private Limited |
20,000 |
0.02 |
|
13 |
Ivory Properties and Hotels Private Limited |
20,000 |
0.02 |
|
14 |
K Raheja Private Limited |
20,000 |
0.02 |
|
|
Total |
5,60,29,674 |
67.29 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Public and holding more than 1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % |
|
|
1 |
Reliance Capital Trustee Company Limited A/c Reliance Equity Opportunities Fund |
5050260 |
6.06 |
|
|
2 |
Vidya Investment and Trading Company Private Limited |
2223009 |
2.67 |
|
|
3 |
Bajaj Allianz Life Insuarance Company Limited |
2067409 |
2.48 |
|
|
4 |
Miraj Marketing Company LLP |
1856250 |
2.23 |
|
|
5 |
Lo Funds - Emergingn Consumer |
1800000 |
2.16 |
|
|
6 |
Zodiac Clothing Company Limited |
1713750 |
2.06 |
|
|
7 |
IDFC Premier Equity Fund |
1232367 |
1.48 |
|
|
8 |
Reliance Capital Trustee Company Limited A/c Reliance Tax Saver (ElSS) Fund |
1359000 |
1.63 |
|
|
9 |
Reliance Capital Trustee Company Limited A/c Reliance Regular Saving Fund - Equity Option |
1000000 |
1.20 |
|
|
10 |
Birla Sun Life Trustee Company Private Limited A/c Birla Sun Life Tax Relief 96 |
1025990 |
1.23 |
|
|
|
Total |
19328035 |
23.21 |
Shareholding of securities (including
shares, warrants, convertible securities) of persons (together with PAC) belonging
to the category “Public” and holding more than 5% of the total number of shares
of the company
|
Sl.
No. |
Name(s)
of the shareholder(s) and the Persons Acting in Concert (PAC) with them |
No.
of Shares |
Shares
as % |
|
|
1 |
Reliance Capital
Trustee Company Limited A/c Reliance Equity Opportunities Fund |
5050260 |
6.06 |
|
|
|
Total |
5050260 |
6.06 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged in the business of retailing a variety of household and consumer
products through departmental stores. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
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Bankers : |
· Axis Bank Limited Deutsche Bank AG IDBI Bank Limited ICICI Bank Limited Kotak Mahindra Bank Limited HDFC Bank Limited Bank of India Yes Bank Limited |
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Facilities : |
NOTE LONG TERM
BORROWINGS 2014:
Term Loans are secured by a first pari passu charge on stock, book debts,
hypothecation charge on credit card/debit card receivables (Escrow account)
and all the movable fixed assets of the Company, both present and future
except ICICI Bank Term loans which is secured by first Pari Passu charge on
the current assets and all the movable fixed assets of the Company both
Present and Future excluding leasehold rights, lease deposits and Shoppers
Stop Brands. 2013:
Term Loans are secured by a first pari passu charge on stock, book debts,
hypothecation charge on credit card/debit card receivables (Escrow account)
and all the movable fixed assets of the Company, both present and future
except ICICI Bank Term loans which is secured by first Pari Passu charge on the
current assets and all the movable fixed assets of the Company both Present
and Future excluding leasehold rights, lease deposits and Shoppers Stop
Brands. SHORT TERM
BORROWINGS 2014: Term Loans are secured
by a first pari passu charge on stock, book debts, hypothecation charge on
credit card/debit card receivables (Escrow account) and all the movable fixed
assets of the Company, both present and future except ICICI Bank Term loans
which is secured by first Pari Passu charge on the current assets and all the
movable fixed assets of the Company both Present and Future excluding
leasehold rights, lease deposits and Shoppers Stop Brands. 2013: Term Loans are
secured by a first pari passu charge on stock, book debts, hypothecation
charge on credit card/debit card receivables (Escrow account) and all the
movable fixed assets of the Company, both present and future except ICICI
Bank Term loans which is secured by first Pari Passu charge on the current
assets and all the movable fixed assets of the Company both Present and
Future excluding leasehold rights, lease deposits and Shoppers Stop Brands. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells LLP Chartered Accountants |
|
Address : |
Indiabulls Finance Centre, Tower 3, 27th - 32nd Floor, Elphinstone Mill Compound, Senapati Bapat Marg, Elphinstone (West), Mumbai - 400013, Maharashtra, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
KPMG Chartered Accountants |
|
Address : |
Lodha Excelus, 1st Floor, Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India |
|
|
|
|
Advocates and
Solicitors : |
Wadia Ghandy and Company |
|
|
|
|
Subsidiaries : |
·
Upasna
Trading Limited Shoppers
Stop.com (India) Limited Shoppers
Stop Services (India) Limited Crossword
Bookstores Limited Gateway
Multi channel Retail (India) Limited Hypercity
Retail (India) Limited |
|
|
|
|
Joint Ventures : |
·
Nuance
Group (India) Private Limited Timezone
Entertainment Private Limited |
|
|
|
|
Other Related Parties
: |
·
Ivory
Properties and Hotels Private Limited K. Raheja
Corp. Private Limited K. Raheja
Private Limited Inorbit
Malls (India) Private Limited Avacado
Properties and Trading India Private Limited Chalet
Hotels Limited Trion
Properties Private Limited Magna
Warehousing and Distribution Private Limited IL&FS
Investment Advisors LLC Br Retailers
Association of India Sanghavi
Associates Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200,000,000 |
Equity Shares |
Rs.5/- each |
Rs. 1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
83,215,760 |
Equity Shares |
Rs.5/- each |
Rs. 416.079 Millions |
|
|
|
|
|
Reconciliation of
shares outstanding at the beginning and end of the year:
|
Particulars |
31.03.2014 |
|
|
Numbers |
Rs. In Millions |
|
|
Equity shares |
|
|
|
At the beginning of the year |
82,979,517 |
414.898 |
|
Issued during the year - ESOP (Note 3.4) |
236,243 |
1.181 |
|
At the end of the year |
83,215,760 |
416.079 |
Shares reserved for issue
under options:
|
Employee Stock
Option Plan (ESOP) |
31.03.2014 |
|
Employee Stock Option Plan (ESOP) |
(Nos) |
|
Options exercised during the year |
236,243 |
|
Option
Outstanding as at |
525,735 |
Details of shareholders
holding more than 5% shares as at 31 March:
|
Particulars: |
31.03.2014 |
|
|
Numbers |
% of Shares held |
|
|
Palm Shelter Estate Development Private Limited |
11,813,300 |
14.20% |
|
Raghukool Estate Development Private Limited |
8,263,300 |
9.93% |
|
Capstan Trading Private Limited |
8,129,768 |
9.77% |
|
Casa Maria Properties Private Limited |
7,913,300 |
9.51% |
|
Anbee Construction Private Limited |
6,511,762 |
7.83% |
|
Cape Trading Private Limited |
6,261,040 |
7.52% |
|
Reliance
Capital Trustee Company Limited A/C Reliance |
4,949,960 |
5.95% |
Other disclosures:
The
Company has one class of equity shares having a par value of Rs. 5 per share.
Each equity shareholder is eligible for one vote per share held. Each equity shareholder
is entitled to dividends as and when the Company declares and pays dividend
after obtaining shareholders’ approval. Dividends
are paid in Indian Rupees.
During the year ended 31st March 2014, the amount of per share final dividend recognised as distribution to equity shareholders was Rs. 0.75 per share (2013: Rs. 0.75 per share).
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
416.079 |
414.898 |
412.811 |
|
(b) Reserves & Surplus |
6870.647 |
6523.322 |
6172.166 |
|
(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) |
7286.726 |
6938.220 |
6584.977 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1998.333 |
1125.000 |
350.000 |
|
(b) Deferred tax liabilities (Net) |
99.619 |
62.543 |
2.348 |
|
(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) |
2097.952 |
1187.543 |
352.348 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1748.071 |
1943.371 |
1840.687 |
|
(b) Trade payables |
3096.950 |
2817.492 |
2360.754 |
|
(c) Other current
liabilities |
2252.130 |
1360.986 |
1423.441 |
|
(d) Short-term provisions |
106.626 |
102.807 |
92.808 |
|
Total Current Liabilities (4) |
7203.777 |
6224.656 |
5717.690 |
|
|
|
|
|
|
TOTAL |
16588.455 |
14350.419 |
12655.015 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5267.908 |
4429.828 |
4061.834 |
|
(ii) Intangible Assets |
222.370 |
129.332 |
106.334 |
|
(iii) Capital
work-in-progress |
318.717 |
274.486 |
297.707 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
3875.992 |
3309.474 |
2842.129 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3011.938 |
2754.034 |
2502.865 |
|
(e) Other Non-current assets |
0.000 |
79.045 |
0.000 |
|
Total Non-Current Assets |
12696.925 |
10976.199 |
9810.869 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2955.357 |
2438.249 |
2120.401 |
|
(c) Trade receivables |
260.030 |
203.636 |
191.692 |
|
(d) Cash and cash
equivalents |
87.340 |
117.213 |
71.462 |
|
(e) Short-term loans and
advances |
439.749 |
470.271 |
389.248 |
|
(f) Other current assets |
149.054 |
144.851 |
71.343 |
|
Total Current Assets |
3891.530 |
3374.220 |
2844.146 |
|
|
|
|
|
|
TOTAL |
16588.455 |
14350.419 |
12655.015 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
27135.732 |
22542.236 |
19297.051 |
|
|
|
Other Income |
133.888 |
172.147 |
186.876 |
|
|
|
TOTAL (A) |
27269.620 |
22714.383 |
19483.927 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of stock-in-trade |
17421.593 |
14377.025 |
12709.382 |
|
|
|
Changes in inventories of stock in trade |
-517.108 |
-317.848 |
(609.035) |
|
|
|
Employee benefits expense |
2044.450 |
1610.641 |
1276.404 |
|
|
|
Other expenses |
6650.192 |
5608.311 |
4501.522 |
|
|
|
TOTAL (B) |
25599.127 |
21278.129 |
17878.273 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
1670.493 |
1436.254 |
1605.654 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
418.910 |
318.814 |
250.360 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1251.583 |
1117.440 |
1355.294 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
617.789 |
507.471 |
377.224 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL
ITEM |
(6.740) |
(7.406) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
627.054 |
602.563 |
978.070 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
257.007 |
210.878 |
335.478 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
370.047 |
391.685 |
642.592 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1750.889 |
1451.600 |
913.105 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend proposed to be distributed to equity shareholders- Rs. 0.75 per share (2013: Rs. 0.75 per share) |
62.412 |
62.235 |
61.922 |
|
|
|
Proposed Dividend (incl. Dividend Distribution tax) |
10.607 |
10.577 |
10.045 |
|
|
|
Transfer to General Reserve |
18.502 |
19.584 |
32.130 |
|
|
BALANCE CARRIED
TO THE B/S |
2029.415 |
1750.889 |
1451.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Foreign currency and foreign credit card collection on sale of merchandise |
619.401 |
539.336 |
470.440 |
|
|
TOTAL EARNINGS |
619.401 |
539.336 |
470.440 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
35.262 |
38.146 |
18.517 |
|
|
|
Purchase of Merchandise |
398.610 |
388.305 |
316.055 |
|
|
TOTAL IMPORTS |
433.872 |
426.451 |
334.572 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic
|
4.46 |
4.73 |
7.80 |
|
|
|
Diluted
|
4.45 |
4.71 |
7.75 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
c |
1.72 |
3.30 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.31 |
2.67 |
5.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.06 |
5.60 |
10.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
0.09 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.51 |
0.44 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.54 |
0.54 |
0.50 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
412.811 |
414.898 |
416.079 |
|
Reserves & Surplus |
6172.166 |
6523.322 |
6870.647 |
|
Net
worth |
6584.977 |
6938.220 |
7286.726 |
|
|
|
|
|
|
long-term borrowings |
350.000 |
1125.000 |
1998.333 |
|
Short term borrowings |
1840.687 |
1943.371 |
1748.071 |
|
Total
borrowings |
2190.687 |
3068.371 |
3746.404 |
|
Debt/Equity
ratio |
0.333 |
0.442 |
0.514 |
c
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
19297.051 |
22542.236 |
27135.732 |
|
|
|
16.817 |
20.377 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
19297.051 |
22542.236 |
27135.732 |
|
Profit |
642.592 |
391.685 |
370.047 |
|
|
3.33% |
1.74% |
1.36% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBTS
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
|
|
|
|
|
Current Maturities of Long Term Debts |
766.667 |
225.000 |
400.000 |
|
|
|
|
|
|
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 |
No |
|
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 |
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 |
No |
|
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 |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10454947 |
08/10/2013 |
500,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI, MAHARASHTRA - 400013, INDIA |
B87513917 |
|
2 |
10448537 |
12/09/2013 |
1,000,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B84778430 |
|
3 |
10419607 |
22/03/2013 |
250,000,000.00 |
BANK OF INDIA |
ANDHERI LARGE
CORPORATE BRANCH, M. D. I BUILDING, |
B73152175 |
|
4 |
10410564 |
12/03/2013 |
500,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B70349535 |
|
5 |
10388830 |
07/11/2012 |
500,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
B62895636 |
|
6 |
10333964 |
12/01/2012 |
350,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU
CENTRE, DISCOVERY OF INDIA, DR. |
B31437163 |
|
7 |
10265194 |
07/06/2014 * |
250,000,000.00 |
BANK OF INDIA LIMITED |
ANDHERI LARGE
CORPORATE BRANCH, M.D.I. BUILDING, |
C09497967 |
|
8 |
10106164 |
29/04/2010 * |
100,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
A85798684 |
|
9 |
10076458 |
23/06/2010 * |
400,000,000.00 |
AXIS BANK LIMITED |
UNIVERSAL INSURANCE BUILDING, SIR P. M ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
A89704936 |
|
10 |
90154070 |
16/10/2007 * |
150,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
36-38A, NARIMAN BHAVAN, 227, D, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
A26026526 |
|
11 |
90153993 |
09/10/2012 * |
565,000,000.00 |
IDBI BANK LIMITED |
47, OPUS CENTRE, OPP. TUNGA PARADISE, CENTRAL ROAD, MIDC, ANDHERI (EAST), MUMBAI, MAHARASHTRA - 400093, INDIA |
B59711002 |
|
12 |
90153990 |
23/06/2010 * |
350,000,000.00 |
AXIS BANK LIMITED |
UNIVERSAL INSURANCE BUILDING, SIR P. M ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA |
A89702302 |
|
13 |
90153655 |
10/01/2013 * |
220,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
B67474049 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans from bank |
99.005 |
93.233 |
|
Commercial
papers (maximum amount outstanding during the year Rs. 250.000 Millions; Previous year Rs. 1150.000 Millions) |
0.000 |
200.000 |
|
Total |
99.005 |
293.233 |
COMPANY
BACKGROUND
The Company was incorporated on 16 June 1997. The Company is engaged in the business of retailing a variety of household and consumer products through departmental stores. As at 31 March 2014, the Company operated through 67 such departmental stores located in different cities of India.
PERFORMANCE REVIEW
The
Company has opened 14 departmental stores i.e., one store each at Chandigarh,
Kalyan, Surat, Thane, Agra, Vadodara, Raipur, Hyderabad, Chennai, Ghaziabad,
Kolkata and Airports at Delhi, Jaipur and Raipur taking its chain of stores to
68 stores (including five airport stores) spread across India. Further, the
Company has also opened 5 HomeStop stores at Chandigarh, Jaipur, Hyderabad and
two at Bengaluru taking its tally to 18 stores.
The
revenue of the Company is Rs. 27269.620
Millions (previous year Rs. 22714.383
Millions), registering a growth of 20.05% y-o-y basis. The net Profit achieved
was Rs. 370.047
Millions (previous year Rs. 391.685
Millions).
AWARDS AND
RECOGNITION
As
in the past years, awards and recognitions were conferred on the Company by
leading organisations during the year under review:
Some
of them are:
• World HRD Congress has conferred the Company with
following awards:
1.
Excellence in Training and Development Award for Best Custom Built Content.
2.
Excellence in Training and Development Award for Best Training Partnership with
External Vendors.
• India’s Most Respected Retail
Company and Top 50 Most Respected Companies of India by BWIBusinessworld Magazine.
• Best Supply Chain Company in Retail vertical, Award
at 7th Express, Logistics and Supply Chain Leadership Awards 2013.
• Best Anchor Store award, for Inorbit Mall, Vashi
store.
• GIA Award by International Home Ware Association
(IHA), Chicago for Homestop.
• A certificate for best practice of “Innovative
Eco Friendly Practices in Retail - Qualifier Top 20 Best Practices”
at 5th Business Excellence Global Conference and 8th International Benchmarking
Conference, Singapore.
• Runner Up BestPrax Prize for the project Innovative
Eco Friendly Practices at 25th Qimpro Convention.
• The Sliver Award for Viva City Store design at the
Designomics Awards.
• VMandRD Awards has conferred the Company with
following awards:
1.
Best Department Store - Thane Viviana Mall
2.
Merit award - Best Visual Merchandising across India
3.
Merit award - Best Window Display across India
• Best Loyalty Program Award at the Loyalty Summit
2014.
• Third position in great places to work in Retail Industry
by Great Place to Work Institute and Retailers Association of India.
• Coaching Organisation of the Year and Best
Organisational Leadership Development Programme at Learning and Development
WHRD Awards 2014.
• Best Green Energy Efficiency Initiative Award at
Global Green Leadership Awards, 2014, by World CSR Congress.
• 3rd Asia Manufacturing Supply Chain Summit has
conferred the Company with following awards:
1.
Manufacturing/Supply Chain Leadership and Strategy Award for ASN initiative
with Madura Garments.
2.
Best Supply Chain Initiative of the Year Award for GS1 Initiative.
• Best Green Energy Efficiency Initiative Award at
Global Green Leadership Awards – 2014 conducted by
World CSR Congress.
• Most Trusted Retailer - Popular choice award and Best
Customer Loyalty Initiative of the Year award at the ET Retail Awards ceremony.
FINANCE
The
Company continues with various initiatives for bringing down the cost of
borrowings which includes application of short-term instruments like commercial
paper, working capital demand loans within working capital borrowing, vendor
bill discounting facility, long term loans for expansion at competitive terms,
so as to have funds at competitive cost.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDIAN RETAIL
This
sector is one of the fastest growing in India over the last few years. The
Indian retail industry which comprises Organised and Unorganised retail, is
currently estimated at US$ 520 billion approx. Last decade has evidenced high
growth in this sector with a material shift towards organised retailing format.
Increasing urbanisation, increase in purchasing power, favourable demographics,
neuclear families, changing consumer preferences and higher aspirations are
some of the factors which will continue to drive the retail consumption in
India.
Though
the global slowdown hasn’t spared India, the
long term fundamentals remain strong. In particular, a large, young,
increasingly brand and fashion conscious population would be key growth drivers.
Retail growth of 14 to 15 percent per year is expected through 2015. By 2018,
the Indian retail sector is likely to grow at a CAGR of 13% to reach a size of
US$ 950 billion.
MODERN RETAIL – TODAY
Modern
retail in India has come a long way in last 10 years. In the next few years
modern retail is expected to grow at a much larger pace annually in tier II and
tier III cities, compared to tier I cities. It is estimated that 80% of the new
mall development in the next couple of years will take place in non-metros.
Organised retail penetration, currently estimated at 7.5% is expected to clock
at a robust CAGR of 19-20% per anumn to reach 10% by 2018.
India’s
Internet user base is currently third largest in the world. This, coupled with
the rising consumer confidence in online retail, is driving the growth of
e-commerce in the country. With a significant number of Indian consumers
turning Internet users, and, eventually, online shoppers, selling through the
online channel is set to redefine retail.
Apparel
is bound to witness significant growth in the coming years, as the sector is
going to attract a high proportion of the increased spend by the Indian
consumer. There is a strong growth in the apparel industry as both Indian and
global brands wise upto its potential. Again, the category is set to benefit
from the growth of e-commerce, which is bound to provide a strong impetus to
the sector in the near future.
MODERN RETAIL –
CHALLENGES AHEAD
Though
organised retail in India has experienced rapid growth, this has been achieved
at a significant cost. Despite considerable investment of time and capital
during the gestation period, the returns from business are a concern. High
operating costs, low bargaining power with vendors and heavy discounting to
improve sales have affected profits and expansion plans. Real estate costs and
space availability also remain important issues. Inventory management is also a
prime concern, though experienced and stable retailers have learned the trick
and have been able to overcome the vagaries in the supply chain such as low
fill rates, long lead times and ordering cycles and lack of process orientation
which result in high inventory holding, low turns and high investment in stock.
Organised retailers are also continuing their efforts to keep costs under check
by adopting cost rationalisation initiatives like revenue-sharing agreements,
increasing use of power-saving equipment/fit-outs to save utilities cost,
amongst many other to keep the corporate costs in line with the scale of business.
Online shopping is also in the early stages, with e-commerce sales not more than 1 percent of total retail sales, but growth is expected as more people access the Internet.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
a) Claims against the Company not acknowledged as debts, comprising
of: |
|
|
|
(i) Income-tax
claims disputed by the Company relating to disallowances aggregating |
96.871 |
70.210 |
|
(ii) Service tax,
Sales tax and other Indirect tax claims disputed by the Company relating to
issues of applicability and classification aggregating |
151.298 |
149.675 |
|
(iii) Third party claims arising from disputes relating to contracts
aggregating |
49.352 |
23.619 |
|
b) Other matters |
22.725 |
5.225 |
|
c) Estimated
amount of contracts remaining to be executed on capital account and not
provided for |
393.524 |
392.778 |
|
d) Corporate
guarantee given jointly and severally with joint venture partners to banks for
loans taken by Joint venture entities |
82.500 |
133.857 |
|
e) Corporate
guarantee given jointly and severally with the promoter group company for
loans taken by Hypercity Retail (India) Limited |
1950.000 |
950.000 |
|
f) Bank
Guarantees |
37.136 |
37.962 |
|
NOTE: Future
cash outflows in respect of (a) above are determinable only on receipt of
judgements/decisions pending with various forums/authorities. |
||
FIXED ASSETS
TANGIBLE ASSETS
·
Leasehold
improvements
Air conditioning and other
equipment
Furniture, fixtures and other
fittings
Office Equipment
Computers
Vehicles
INTANGIBLE ASSETS
·
Trademarks
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 records 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] 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.60.10 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
62 |
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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.