MIRA INFORM REPORT
|
Report Date : |
11.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDIAN TERRAIN FASHIONS LIMITED |
|
|
|
|
Registered
Office : |
208, Velachery Tambaram Road, Narayanapuram, Pallikaranai, Chennai –
600100, Tamil Nadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
29.09.2009 |
|
|
|
|
Com. Reg. No.: |
18-073017 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.56.900 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L18101TN2009PLC073017 |
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|
|
|
IEC No.: |
Not Available |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
|
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PAN No.: [Permanent Account No.] |
Not Available |
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|
Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchange. |
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|
|
Line of Business
: |
Manufacturer of Garments |
|
|
|
|
No. of Employees
: |
385 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
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|
Litigation : |
Clear |
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|
Comments : |
Subject is an established company having a satisfactory track record. Financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The company can be considered for 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.
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
NEWS
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating = BB |
|
Rating Explanation |
Have moderate risk of default |
|
Date |
November 19, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A4+ |
|
Rating Explanation |
Have minimal degree of safety and carry very high credit risk |
|
Date |
November 19, 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 DENIED BY
Management Non-Co-Operative (91-44-42279100)
LOCATIONS
|
Registered Office : |
208, Velachery Tambaram Road, Narayanapuram, Pallikaranai, Chennai –
600100, Tamil Nadu, India |
|
Tel. No.: |
91-44-42279100 / 44-43453000 |
|
Mobile No.: |
Not Available |
|
Fax No.: |
91-44-43453202 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
SDF-IV and C2, 3rd Main Road, MEPZ-SEZ, Tambaram, Chennai –
600045, Tamil Nadu, India |
|
Tel. No.: |
91-44-43432200 |
|
Fax No.: |
91-44-22622897 / 22628184 |
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E-Mail : |
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|
Website : |
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Warehouse : |
70/2 and 3A Agaram Road, Thiruvanchery Village, Chennai – 600073,
Tamil Nadu, India |
DIRECTORS
|
Name : |
Mr. V. Rajagopal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mrs. Rama Rajagopal |
|
Designation : |
Executive Director |
|
|
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|
Name : |
Mr. N. K. Ranganath |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. P. S. Raman |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Harsh Bahadur |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Manoj Mohanka |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. J. Manikandan |
|
Designation : |
Company Secretary |
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|
|
|
Management Team
: |
|
|
Name : |
Mr. Charath Ram Narsimhan |
|
Designation : |
Chief Executive Officer |
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|
|
|
Name : |
Mr. Amitabh Suri |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Selin Reubalin CC |
|
Designation : |
Executive Vice President – Operations (Group) |
|
|
|
|
Name : |
Mr. A.M. Gopinath |
|
Designation : |
Vice President – Commercial (Group) |
|
|
|
|
Name : |
Ms. L. Visalakshi |
|
Designation : |
Vice President – Finance and Accounts (Group) |
|
|
|
|
Name : |
Ms. Shehnaz Sharrif |
|
Designation : |
General Manager, Merchandising |
|
|
|
|
Name : |
Mr. Charlie Manickarayan |
|
Designation : |
General Manager – HR (Group) |
SHAREHOLDING PATTERN
As on 30.09.2014
|
Category
of Shareholder |
Total No.
of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
||
|
|
|
|
|
|
2217510 |
38.41 |
|
|
2217510 |
38.41 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
2217510 |
38.41 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
25764 |
0.45 |
|
|
420000 |
7.27 |
|
|
445764 |
7.72 |
|
|
|
|
|
|
916333 |
15.87 |
|
|
|
|
|
|
595457 |
10.31 |
|
|
503516 |
8.72 |
|
|
1095251 |
18.97 |
|
|
63096 |
1.09 |
|
|
60727 |
1.05 |
|
|
971428 |
16.82 |
|
|
3110557 |
53.87 |
|
Total Public shareholding (B) |
3556321 |
61.59 |
|
Total (A)+(B) |
5773831 |
100.00 |
|
(C) Shares held by Custodians and
against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total |
5773831 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Garments |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
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Products : |
Not Available |
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Countries : |
Not Available |
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Imports : |
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Products : |
Not Available |
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Countries : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
GENERAL INFORMATION
|
Suppliers : |
Not Available |
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Customers : |
Not Available |
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No. of Employees : |
385 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
--- |
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|
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Statutory Auditors : |
|
|
Name : |
M/s Anil Nair and Associates Chartered Accountants |
|
Address : |
Egmore, Chennai – 600008, Tamil Nadu, India |
|
|
|
|
Name : |
M/s CNGSN and Associates Chartered Accountants |
|
Address : |
T. Nagar, Chennai – 600017, Tamil Nadu, India |
|
|
|
|
Internal
Auditors : |
|
|
Name : |
M/s R. Venkatakrishnan and Associates Chartered Accountants |
|
Address : |
R.A. Puram, Chennai – 600028, Tamil Nadu, India |
|
|
|
|
Memberships : |
Not Available |
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|
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|
Collaborators : |
Not Available |
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|
|
|
Enterprises under Control or Significant Influence of Key Managerial Personnel
: |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs.10/-each |
Rs.120.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5691331 |
Equity Shares |
Rs.10/-each |
Rs.56.913
Million |
Note:
a)
Rights, Preferences and Restrictions attached to
Equity Shares
b)
The Company has only one
class of shares referred to as Equity Shares having a par value of Rs.10/-
Each holder of equity shares is entitled to one vote per share.
c)
Details of Shares held by each Shareholder holding
more than 5%
d)
|
Particulars |
31.03.2014 |
|
|
No. of Shares |
% of holding |
|
|
Mr. Venkatesh
Rajagopal |
949423 |
16.7% |
|
Mrs. Rama
Rajagopal |
1240586 |
21.8% |
|
M/s New Vernon
Private Equity Limited |
971428 |
17.1% |
|
M/s EOS Multi
Strategy Fund Limited |
420000 |
7.4% |
|
M/s Benett, Coleman and Company Limited |
376233 |
6.6% |
|
M/s Reliance Capital Limited |
330962 |
508% |
As on 29.09.2014
Authorised Capital : Rs.120.000 Million
Issued, Subscribed & Paid-up Capital : Rs.57.738
Million
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 |
56.900 |
56.100 |
55.800 |
|
(b) Reserves &
Surplus |
304.900 |
201.800 |
152.800 |
|
(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) |
361.800 |
257.900 |
208.600 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
162.800 |
207.400 |
247.500 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
2.800 |
|
(c) Other long term
liabilities |
50.600 |
34.900 |
21.500 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
213.400 |
242.300 |
271.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
350.400 |
362.600 |
324.000 |
|
(b) Trade payables |
350.500 |
264.600 |
275.100 |
|
(c) Other current
liabilities |
69.400 |
54.000 |
62.200 |
|
(d) Short-term provisions |
61.100 |
33.000 |
44.900 |
|
Total Current Liabilities
(4) |
831.400 |
714.200 |
706.200 |
|
|
|
|
|
|
TOTAL |
1406.600 |
1214.400 |
1186.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
77.800 |
81.200 |
88.300 |
|
(ii) Intangible Assets |
1.600 |
2.800 |
2.900 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
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 |
85.300 |
75.500 |
71.000 |
|
(e) Other Non-current
assets |
2.400 |
1.800 |
1.100 |
|
Total Non-Current Assets |
167.100 |
161.300 |
163.300 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
430.800 |
323.500 |
324.100 |
|
(c) Trade receivables |
771.100 |
690.500 |
626.200 |
|
(d) Cash and cash
equivalents |
27.100 |
25.600 |
58.800 |
|
(e) Short-term loans and
advances |
2.300 |
2.300 |
12.100 |
|
(f) Other current assets |
8.200 |
11.200 |
2.100 |
|
Total Current Assets |
1239.500 |
1053.100 |
1023.300 |
|
|
|
|
|
|
TOTAL |
1406.600 |
1214.400 |
1186.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
2320.600 |
1567.000 |
1409.700 |
|
|
Other Income |
2.800 |
5.600 |
5.900 |
|
|
TOTAL |
2323.400 |
1572.600 |
1415.600 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
735.900 |
484.900 |
419.000 |
|
|
Purchases of
Stock-in-Trade |
279.300 |
115.100 |
169.500 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(117.700) |
1.600 |
(2.700) |
|
|
Employees benefits
expense |
110.800 |
91.900 |
76.400 |
|
|
Other expenses |
1070.500 |
721.400 |
622.900 |
|
|
TOTAL |
2078.800 |
1414.900 |
1285.100 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
244.600 |
157.700 |
130.500 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
95.000 |
95.400 |
99.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX,
DEPRECIATION AND AMORTISATION |
149.600 |
62.300 |
31.500 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
24.600 |
14.400 |
8.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
125.000 |
47.900 |
23.400 |
|
|
|
|
|
|
|
Less |
TAX (I) |
26.200 |
6.800 |
5.700 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
98.800 |
41.100 |
17.700 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
108.900 |
67.800 |
50.100 |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S |
207.700 |
108.900 |
67.800 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
2.800 |
0.000 |
3.400 |
|
|
|
|
|
|
|
|
TOTAL EARNINGS |
2.800 |
0.000 |
3.400 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
1.200 |
1.700 |
23.700 |
|
|
|
|
|
|
|
|
TOTAL IMPORTS |
1.200 |
1.700 |
23.700 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
|||
|
|
Basic |
17.36 |
7.22 |
3.11 |
|
|
Diluted |
17.22 |
7.14 |
3.06 |
QUARTERLY /
SUMMARISED RESULTS
(Rs. in Million)
|
PARTICULARS |
June 2014 UnAudited |
|
Net Sales |
517.300 |
|
Total Expenditure |
463.100 |
|
PBIDT (Excl OI) |
54.200 |
|
Other Income |
0.400 |
|
Operating Profit |
54.600 |
|
Interest |
22.400 |
|
Exceptional Items |
000 |
|
PBDT |
32.200 |
|
Depreciation |
5.000 |
|
Profit Before Tax |
27.200 |
|
Tax |
000 |
|
Provisions and Contingencies |
000 |
|
Profit After Tax |
27.200 |
|
Extraordinary Items |
000 |
|
Prior Period Expenses |
000 |
|
Other Adjustments |
000 |
|
Net Profit |
27.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
4.25 |
2.61 |
1.25 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
10.52
|
10.06 |
9.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.89 |
3.94 |
1.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.35 |
0.19 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.42 |
2.21 |
2.74 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49 |
1.47 |
1.45 |
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 |
55.800 |
56.100 |
56.900 |
|
Reserves & Surplus |
152.800 |
201.800 |
304.900 |
|
Net worth |
208.600 |
257.900 |
361.800 |
|
|
|
|
|
|
long-term borrowings |
247.500 |
207.400 |
162.800 |
|
Short term borrowings |
324.000 |
362.600 |
350.400 |
|
Total borrowings |
571.500 |
570.000 |
513.200 |
|
Debt/Equity ratio |
2.740 |
2.210 |
1.418 |
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 |
1409.700 |
1567.000 |
2320.600 |
|
|
|
11.158 |
48.092 |
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 |
1409.700 |
1567.000 |
2320.600 |
|
Profit |
17.700 |
41.100 |
98.800 |
|
|
1.26% |
2.62% |
4.26% |
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 |
No |
|
8] |
No. of employees |
Yes |
|
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 |
Yes |
|
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 |
No |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10281345 |
12/02/2014 * |
747,800,000.00 |
State Bank of India |
Overseas Branch, No.86.Rajaji Salai, Chennai, Tamil Nadu - 600001, INDIA |
C01153709 |
OUTLOOK
AND BUSINESS PERFORMANCE
The year that went by was a challenging one for the retail industry and seen a slowdown in the consumer spending. The GDP growth rate slipped to 5 percent, down from a 10-year average of 7.8 percent. With growth still challenging and underlying economic conditions still uncertain, your Company emerged a stronger brand and stood out in the market place.
The Company has recorded net revenues of Rs.2320.000 Million (48% growth) for the year ended 31st March 2014 as compared to Rs.1570.000 Million during the previous year. Profit before Interest, Depreciation and Tax was at Rs.244.600 Million as against Rs.157.700 Million during the previous year. Profit before Tax stood at Rs.125.000 Million as compared to Rs.47.900 Million in the previous year and Net Profit after Tax was at Rs.98.800 Million as against a net profit of Rs.41.100 Million last year.
India’s retail industry is aggressively expanding itself. The retail market is expected to touch a whopping Rs.47 trillion (US$ 782.23 billion) by 2016–17, expanding at a compounded annual growth rate (CAGR) of 15 per cent, according to a study by a leading industrial body.
With the online medium of retail gaining more and more
acceptance, there is a tremendous growth opportunity for retail companies, both
domestic and international. This has been compounded by easy availability of
debit/credit cards which has contributed significantly to a strong and growing
online consumer culture in India.
Favorable demographics, increasing urbanization, nuclear families, purchasing power of consumers, preference for branded products and higher aspirations are some factors which will drive retail consumption in the country.
The Company is constantly evaluating its strategies and actions and has taken necessary initiatives to meet the demands of the competitive market.
MANAGEMENT DISCUSSION
AND ANALYSIS
Overview
Consumerism in India is witnessing unprecedented growth driven by favorable demographics, a young and working population, rising income levels, urbanization and growing brand orientation. This, in turn, is reflected in India’s retail market, which in 2013, was estimated at US$520 billion. The total organized retail supply in 2013 stood at approximately 4.7 million square feet (sq. ft.), witnessing a strong year-on-year (y-o-y) growth of about 78 percent over the total mall supply of 2.5 million sq. ft. in 2012.
Outlook
Organized retail penetration, currently estimated at 7.5%, is expected to clock a 19-20% p.a. growth to reach 10% by 2018. Penetration in tier-II and III cities, improvement in business models and operations, coupled with movement from unorganized to organized trade are expected to play an integral role in driving this growth.
Better employment opportunities and improved lifestyles have pulled the rural population towards cities. By 2030, it is estimated that 91 million households will be middle class and about 570 million people are expected to live in cities. This factor would be a significant driver for organized retail.
Retailers are rushing to capture opportunities in the Metros and also have been focusing on expanding in non-metros. In the next few years, modern retail is expected to grow 50–60 per cent annually in tier II and tier III cities, compared to only around 30 percent in the metros.
With ample opportunities on board, the need of the hour is to relentlessly focus on connecting with customers through whatever means available. Soliciting consistent feedback from customers and using it to provide them with relevant products, service and shopping experiences assumes prime importance.
Top priorities of the retailers for achieving the profitable growth will be to focus efficiently the inventory and supply chain management, working capital management, high operating costs, inflation and talent retention.
The year has been very good for Indian Terrain and the company is confident that the trend continues in the years to come. When slowdown is hunting most companies, few things that Indian Terrain did has richly paid. The core focus was on supply chain and the company better managed the same during the last year. Further the brand didn’t follow the herd on big budget advertising, but let the styling of its products speak for itself. Indian Terrain’s bulk of ad-spends goes into in-store activities at chains such as Lifestyle and Shoppers Stop. The focus for the past year has been on digital. Online sales recorded a substantial increase and the coming year should witness 30 per cent more of online sales. The brand is well spread across West, North and South and is no longer perceived as a South-Centric one.
FIXED ASSETS
- Tangible
Assets
- Plant and
Machinery
- Electrical
Installation
- Office
Equipments
- Computers
- Vehicles
- Furniture and
Fixtures
Intangibles Assets
- Computer
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 exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.52 |
|
|
1 |
Rs.97.39 |
|
Euro |
1 |
Rs.76.15 |
INFORMATION DETAILS
|
Information
Gathered by : |
GAY |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PNM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.