MIRA
INFORM REPORT
|
Report Date : |
03.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
LANDMARK LIMITED (PART IX) |
|
|
|
|
Registered
Office : |
Trent House, G Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla Complex,
Bandra (East), Mumbai-400051, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.03.2006 |
|
|
|
|
Com. Reg. No.: |
11-160918 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.73.147
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U70109MH2006PLC160918 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCL1748E |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the retail trade of books, music, toys, gaming,
etc |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 260000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. The company has incurred accumulated losses during the financial year
2013. Profitability seems to be under pressure. However, trade relations are fair. Business is active. Payments are
terms are slow. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry
retained its status as the favourable venture capital investors in 2013.
Pakistan has temporarily banned gold imports for the second time in six months,
as it tries to stem smuggling into India. India’s import duty on gold is 10 %
and curbs on purchases have dried up legal imports into what used to be the
world’s biggest bullion buyers. The World Gold Council puts the amount smuggled
into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed
that unclaimed bank deposits estimated to be about Rs 35000 mn be used for
education and awareness among depositors. According to the plan, deposits
that have not been claimed for at least 10 years will be transferred to the
scheme.
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 BY
|
Name : |
Mr. Santosh Bisate |
|
Designation : |
Account Executive in Pune |
|
Contact No.: |
91-20-66083100 |
|
Date : |
01.03.2014 |
LOCATIONS
|
Registered Office : |
Trent House, G Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla Complex,
Bandra (East), Mumbai-400051, |
|
Tel. No.: |
91-22-26396010/67009026/67008063 |
|
Fax No.: |
91-22-22070216/67008100/67008100 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Store : |
S-37, Second Floor, Phoenix Market City Viman Nagar Road, Viman Nagar,
Pune, Maharashtra, India |
|
Tel No.: |
91-20-65340011 |
|
|
|
|
Branch Offices : |
Locate At: ·
Chennai ·
Gurgaon ·
Lucknow ·
Bangalore ·
Mumbai ·
Vadodara ·
Pune ·
Hyderabad ·
Ahmedabad |
DIRECTORS
As on 10.08.2012
|
Name : |
Aspy Dady Cooper |
|
Designation : |
Director |
|
Address : |
Quest End -47, Cuffe Parade Colaba, Mumbai – 400005, |
|
Date of Birth/Age : |
23.08.1940 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00026134 |
|
|
|
|
Name : |
Noel Naval Tata |
|
Designation : |
Director |
|
Address : |
Windmere 55, Cuffe Parade, Colaba, Mumbai – 400005, |
|
Date of Birth/Age : |
12.11.1956 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00024713 |
|
|
|
|
Name : |
Mr. Pradeep Kumar Anand |
|
Designation : |
Director |
|
Address : |
303/304, Gulshan, 14th A, Road, Khar (West), Mumbai –
400052, |
|
Date of Birth/Age : |
03.05.1953 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00108891 |
|
|
|
|
Name : |
Palaniswamy Venkatesalu |
|
Designation : |
Director |
|
Address : |
Tata Colony, Falcon Crest, Flat # 102, G.D. Ambedkar Marg, Parel Tank
Road, Parel, Mumbai-400017, Maharashtra, India |
|
Date of Birth/Age : |
27.02.1977 |
|
Date of Appointment : |
25.06.2008 |
|
Din No.: |
02190892 |
|
|
|
|
Name : |
Mr. Gopal Srinivasan |
|
Designation : |
Director |
|
Address : |
Old No. 2, New No. 3, West Side House, Adyar Club Gate Road,
Chennai-600028, Tamilnadu, India |
|
Date of Birth/Age : |
04.08.1958 |
|
Date of Appointment : |
04.11.2009 |
|
Din No.: |
00177699 |
|
|
|
|
Name : |
Shreeharsha Vasant Phene |
|
Designation : |
Director |
|
Address : |
901/902, Vaastu, 26, R.G. Thadani Marg, |
|
Date of Birth/Age : |
08.05.1955 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00103297 |
|
|
|
|
Name : |
Mr. Philip Noel Auld |
|
Designation : |
Director |
|
Address : |
Trent House, G-Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla
Complex, Bandra (East), Mumbai-400051, Maharashtra, India |
|
Date of Birth/Age : |
02.09.1956 |
|
Date of Appointment : |
19.10.2011 |
KEY EXECUTIVES
|
Name : |
Mr. Ashutosh Pandey |
|
Designation : |
Manager |
|
Address : |
Fortune, Flat No. 3D, 3rd Floor, No. 15, Harrington Road,
Chetpet, Chennai-600031, Tamilnadu, India |
|
Date of Birth/Age : |
09.10.1971 |
|
Date of Appointment : |
14.07.2011 |
|
Pan No.: |
AGXPP7134K |
|
|
|
|
Name : |
Mr. Manish Parikh |
|
Designation : |
Company Secretary |
|
Address : |
B-103, Building No. 5, N.G. Park, Rawalpada, Dahisar (East),
Mumbai-400068, Maharashtra, India |
|
Date of Birth/Age : |
29.07.1976 |
|
Date of Appointment : |
14.07.2011 |
|
Pan No.: |
AMQPP5959H |
|
|
|
|
Name : |
Mr. Santosh Bisate |
|
Designation : |
Account Executive in Pune |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 10.08.2012
|
Names of Shareholders |
|
No. of Shares |
|
Trent Limited, |
|
4192344 |
|
Hemaiatha Ramaiah |
|
100 |
|
Trent Brands Limited, |
|
264028 |
|
TVS Shriram Growth Funk I, India |
|
1825074 |
|
Flora Services Limited, |
|
2500 |
|
Flora Link Rod Properties Limited, India |
|
2500 |
|
Flora Link Rod Properties Limited, India |
|
1023079 |
|
Flora Services Limited, India |
|
11 |
|
Flora Link Rod Properties Limited, India |
|
13 |
|
Flora Services Limited, India Jointly with Noel Naval Tata |
|
1 |
|
Flora Services Limited, India Jointly with Palaniswamy Venkatesalu |
|
1 |
|
Trent Limited, India |
|
5026 |
|
TOTAL
|
|
7314677 |
As on 10.08.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
%20-%20256780_MIRA%2003-Mar-2014_files/image002.gif)
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the retail trade of books, music, toys, gaming,
etc |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
·
HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower
Parel West, Mumbai-400013, Maharashtra, India ·
Standard Chartered Bank, 19, Rajaji Salai,
Chennai - 600034, Tamilnadu, India |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
52, |
|
Tel. No.: |
91-44-66885000 |
|
Fax No.: |
91-44-66885050 |
|
PAN No.: |
AACFD3771D |
|
|
|
|
Holding Company : |
Trent Limited CIN No.:- L24240MH1952PLC008951 |
|
|
|
|
Fellow Subsidiaries : |
Trent Brands Limited CIN No.:-
U74899DL1995PLC073520 Westland Limited CIN No.:-
U22190TN2007PLC064265 Landmark Etail
Private Limited CIN No.:-
U72900TN2001PTC046790 Trent
Hypermarket Limited CIN No.:-
U51900MH2008PLC184184 Fiora Services Limited CIN No.:- U74990PN1989PLC020632 |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8700000 |
Equity Shares |
Rs.10/- each |
Rs. 87.000 Millions |
|
1630000 |
Preference Shares |
Rs.100/- each |
Rs.163.000 Millions |
|
|
TOTAL |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7314677 |
Equity Shares |
Rs.10/- each |
Rs.73.147
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 |
73.147 |
73.147 |
73.147 |
|
(b) Reserves & Surplus |
(7.945) |
376.701 |
689.409 |
|
(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) |
65.202 |
449.848 |
762.556 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
540.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
540.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
38.381 |
297.875 |
202.157 |
|
(b) Trade payables |
619.485 |
683.700 |
673.571 |
|
(c) Other current
liabilities |
107.244 |
139.923 |
132.632 |
|
(d) Short-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Current Liabilities (4) |
765.110 |
1121.498 |
1008.360 |
|
|
|
|
|
|
TOTAL |
1370.312 |
1571.346 |
1770.916 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
389.674 |
438.633 |
430.457 |
|
(ii) Intangible Assets |
46.798 |
49.036 |
9.843 |
|
(iii) Capital
work-in-progress |
0.000 |
6.295 |
2.028 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.520 |
0.020 |
0.120 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
58.452 |
86.304 |
93.530 |
|
(e) Other Non-current assets |
0.951 |
0.888 |
0.000 |
|
Total Non-Current Assets |
496.395 |
581.176 |
535.978 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
616.855 |
668.221 |
835.512 |
|
(c) Trade receivables |
19.500 |
31.347 |
20.315 |
|
(d) Cash and cash
equivalents |
41.141 |
27.006 |
20.010 |
|
(e) Short-term loans and
advances |
181.297 |
193.008 |
153.078 |
|
(f) Other current assets |
15.124 |
70.588 |
206.023 |
|
Total Current Assets |
873.917 |
990.170 |
1234.938 |
|
|
|
|
|
|
TOTAL |
1370.312 |
1571.346 |
1770.916 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1981.229 |
2234.938 |
2498.756 |
|
|
|
Other Income |
20.702 |
1.829 |
1.475 |
|
|
|
TOTAL (A) |
2001.931 |
2236.767 |
2500.231 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of stock-in-trade |
1392.731 |
1451.975 |
1892.149 |
|
|
|
Employee benefit expense |
196.478 |
231.544 |
200.350 |
|
|
|
Other expenses |
729.500 |
725.093 |
678.181 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
51.366 |
167.291 |
(150.155) |
|
|
|
Exceptional items before tax |
(103.616) |
(110.984) |
(196.581) |
|
|
|
TOTAL (B) |
2266.459 |
2464.919 |
2423.944 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(264.528) |
(228.152) |
76.287 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
43.581 |
15.841 |
7.999 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(308.109) |
(243.993) |
68.288 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
76.537 |
68.715 |
57.592 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX (E-F) (G) |
(384.646) |
(312.708) |
10.696 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
2.131 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(384.646) |
(312.708) |
8.565 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(355.589) |
(22.881) |
(31.446) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(740.235) |
(335.589) |
(22.881) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
48.702 |
50.714 |
73.906 |
|
|
TOTAL EARNINGS |
48.702 |
50.714 |
73.906 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
22.210 |
16.865 |
27.458 |
|
|
|
Stores & Spares |
0.000 |
0.000 |
6.977 |
|
|
TOTAL IMPORTS |
22.210 |
16.865 |
34.435 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(52.59) |
(42.75) |
1.17 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(19.21)
|
(13.98)
|
0.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(19.41)
|
(13.99)
|
0.43 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(28.08)
|
(19.98)
|
0.60 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(5.90)
|
0.70
|
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
8.87
|
0.66
|
0.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.14
|
0.88
|
1.22 |
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 |
73.147 |
73.147 |
73.147 |
|
Reserves & Surplus |
689.409 |
376.701 |
(7.945) |
|
Net
worth |
762.556 |
449.848 |
65.202 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
540.000 |
|
Short term borrowings |
202.157 |
297.875 |
38.381 |
|
Total
borrowings |
202.157 |
297.875 |
578.381 |
|
Debt/Equity
ratio |
0.265 |
0.662 |
8.871 |
%20-%20256780_MIRA%2003-Mar-2014_files/image004.gif)
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 |
2498.756 |
2234.938 |
1981.229 |
|
|
|
(10.558) |
(11.352) |
%20-%20256780_MIRA%2003-Mar-2014_files/image006.gif)
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 |
2498.756 |
2234.938 |
1981.229 |
|
Profit |
8.565 |
(312.708) |
(384.646) |
|
|
0.34% |
(13.99%) |
(19.41%) |
%20-%20256780_MIRA%2003-Mar-2014_files/image008.gif)
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG-TERM DEBT: NOT AVAILABLE
|
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 |
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 |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
Note:
The registered office of the company has been shifted from
Enterprise Centre, Off Nehrurd, Beside Orchid Hotel, Vile Parle (East), Mumbai,
Maharashtra, India to present address w.e.f.01.07.2009
FINANCIAL RESULTS
The Company is engaged in the retail trade of books, music, toys, gaming, etc. The significant restructuring measures initiated in FY11-12 continued in the period with the following primary objectives:
1. Refreshing the relevance of the format to the target audience in terms of the core customer proposition especially given the evolving market landscape for retailers in this space.
2. Building a sustainable platform to leverage the brand strength of the Landmark banner to facilitate growth and scale over the medium term.
The principle restructuring and refurbishment measures continued to be pursued in the period includes Focus of new growth categories, Redesign of the store look and feel, Growing the internet platform, Re-alignment of the supply chain, Shifting of corporate operations from Chennai to Mumbai and Introduction of Shop-In-Shops in select Westside stores. In order facilitate greater management focus, the online division of the Company has been vested into a wholly owned subsidiary of the Company.
The Company recorded a total income of Rs.2001.931 Millions (Rs.2236.766 Millions in FY 2011-12) during the period, whereas the profit before tax was negative at Rs.384.646 Millions (negative Rs.312.708 Millions in FY 2011-12); which also includes a onetime profit on transfer of online division to a wholly owned subsidiary. The Company’s results for the year ending March 2013 need to be viewed in the context of the conscious winding down of certain categories for all practical purposes (like home merchandise – which is not seen to be a relevant fit with the format in its evolving form) and the restructuring initiatives mentioned above-as each of these efforts involve significant disruption of operations (for instance during store re-design/ refurbishment, stabilization of transition to the SAP IT system, migration to a new distribution approach). The following is brief discussion of the other principle factors contributing to the reported performance:
1. Continued decline of especially the music category and certain sub-categories of books like computers and programming, cooking, maps and coffee table books. In the music category digital downloads have for the most part become the norm, including through mobile phone platforms;
2. Under performance of select mature stores vis-à-vis expectations; the key contributing factors include another competing mall location in the relevant Chennai micro-market;
3. Under performance of select large box new stores, as these stores take longer to reach break-even sales volumes; key contributing factors include slow ramp-up of immediate mall occupancy, operational mall maintenance and timely merchandise availability issues;
4. On the other hand encouraging off-take of certain new categories of focus like gaming, toys, sports merchandise and select tech-accessories; also, the transfer of online division significantly buffered reported performance. Key observations and intent on approach in respect of the Landmark format:
5. As a retail banner Landmark continues to enjoy strong recall and liking amongst a range of audiences and especially with kids and teens; incidentally the format has registered more than 500,000 ‘likes’ on Facebook – the online social networking site;
6. Music as a category is de-growing consequent to increasing access of such content through other channels and same is the case with certain sub-categories of books like computers and programming and cooking; in this context Landmark has been consciously introducing newer categories like gaming, technology accessories and sports merchandise. Also, it is relevant to observe that Landmark already derives its income from a wide mix of categories and is consequently less exposed to the risk of systemic de-growth in one of the categories like music.
7. Structural changes continue to be pursued to reconfigure the stores around the new anchor categories - toys, gaming, front-list books and tech-accessories; the response in the stores where this reconfiguration has been completed have witnessed an encouraging response from customers and they believe this effort would be key to establishing a sustainable growth platform for this business.
SCHEME OF
AMALGAMATION AND ARRANGEMENT
The Board of Directors of the Company at its meeting held on 4th March 2013 has approved the merger of Landmark Limited with Trent Limited (holding company) in terms of the Scheme of Amalgamation and Arrangement between Landmark Limited, Fiora Link Road Properties Limited, Trexa ADMC Private Limited and Trent Limited and their respective shareholders and creditors. The appointed date for the merger shall be 1st April 2013. As the Company is a wholly owned subsidiary of Trent Limited, no shares of Trent Limited will be issued and allotted pursuant to the proposed Scheme.
The Scheme is approved by the Board of Directors subject to the requisite approval of the members and/ or creditors as may be directed by the High Court of Judicature at Bombay and subject to all such requisite approvals from the relevant regulatory authorities and sanction of the High Court of Judicature at Bombay.
UNSECURED LOAN
Rs.
In Millions
|
|
As
on 31.03.2013 |
As
on 31.03.2012 |
|
Long Term
Borrowings |
|
|
|
Loans and advances from related parties |
540.000 |
0.000 |
|
ShortTerm
Borrowings |
|
|
|
Other Loans and Advances |
38.381 |
31.318 |
|
TOTAL |
578.381 |
31.318 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10123036 |
02/08/2008 |
200,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA |
A45907193 |
|
2 |
10052735 |
16/04/2007 |
191,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA |
A15667512 |
|
3 |
10022189 |
08/09/2006 |
80,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA |
A05624945 |
|
4 |
10008058 |
21/02/2013 * |
150,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSE SENAPATI BAPAT MARG, LOWER PAREL WEST, MUMBAI-400013, MAHARASHTRA, INDIA |
B70824859 |
* Date of charge modification
FIXED ASSETS
·
Goodwill
·
Freehold Land
·
Buildings
·
Leasehold Improvements
·
Furniture And Fixtures
·
Plant And Machinery
·
Computers
·
Office Equipment
·
Vehicles
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.62.07 |
|
|
1 |
Rs.103.61 |
|
Euro |
1 |
Rs.85.03 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
26 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.