MIRA INFORM REPORT

 

 

Report No. :

309869

Report Date :

28.02.2015

 

IDENTIFICATION DETAILS

 

Name :

INFINITI RETAIL LIMITED [w.e.f. 28.09.2006]

 

 

Formerly Known As :

VALVES ELECTRONICS LIMITED

 

 

Registered Office :

Bombay House, 24-Homi Modi Street, Mumbai – 400 001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

16.12.2005

 

 

Com. Reg. No.:

11-158120

 

 

Capital Investment / Paid-up Capital :

Rs. 3900.000 Million

 

 

CIN No.:

[Company Identification No.]

U31900MH2005PLC158120

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMV13188A

 

 

PAN No.:

[Permanent Account No.]

AACCV1726H

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in the business of electronics retail trade through its Croma Stores.

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a wholly-owned subsidiary of Tata Sons, the holding company of the Tata Group.

 

It is an established company having satisfactory track record.

 

Although the company has seen an increase in its revenue for the year 2013-14, it has incurred loss from its operations.

 

However, the rating takes into consideration the financial and managerial support that company receives from its parent company.

 

Trade relations are fair. Business is active. Payments are reported to be usually 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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

CARE

Rating

Long Term Facilities (A+)

Rating Explanation

Adequate degree of safety and low credit risk.

Date

February 2015

 

 

Rating Agency Name

CARE

Rating

Short Term Facilities (A1)

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

February 2015

 

 

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

 

Name :

Mr. Pramod Dangaich

Designation :

Account Manager

Contact No.:

91-22-67613600

Date :

26.02.2015

 

 

LOCATIONS

 

Registered Office :

Bombay House, 24-Homi Modi Street, Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-67613600/67101900

Fax No.:

91-22-67101903/67103669

E-Mail :

pramod.dangaich@infinityretil.com

taher.ali@infinitiretail.com

Website :

www.cromaretail.com

 

 

Head Office :

Office No. 201, Akruti Centre Point, MIDC, Andheri East, Mumbai – 400093, Maharashtra, India 

 

 

Corporate Office 1 :

202 Akruti Centre Point, Next to Marol Telephone Exchange, MIDC, Andheri (East), Mumbai – 400093, Maharashtra, India

Tel. No.:

91-22-67101900

Fax No.:

91-22-67101903

 

 

Croma (Juhu Office) :

Croma

Ground Floor, Vasundhara CHS, Opposite Utpal Shanghvi School, JVPD, Vile Parle (West), Mumbai – 400 049, Maharashtra, India

Tel. No.:

91-22-67103333

Fax No.:

91-22-67107630

 

 

Corporate Office 2 :

Unit 203, 2nd Floor, Akruti Centrepoint, MIDC , Andheri (East), Mumbai – 400093, Maharashtra, India

 

 

DIRECTORS

 

As on: 02.09.2014

 

Name :

Mr. Rajendra Ramdas Bhinge

Designation :

Director and Chairmen

Address :

3501, 35th Floor, Planet Godrej, Tower‐2, K.Khadye Road, Mahalaxmi (East), Mumbai -400011, Maharashtra, India

Date of Birth/Age :

29.05.1952

Date of Appointment :

13.09.2013

DIN No.:

00036557

Voter ID No.:

JRW0961086

 

 

Name :

Mr. Pankaj Kishorilal Gupta

Designation :

Director

Address :

601, 6th Floor, Ram Bhuvan, 6 th Road, Khar (West), Mumbai – 400 052, Maharashtra, India

Date of Birth/Age :

07.08.1972

Date of Appointment :

16.12.2005

Din No.:

 00467066

 

 

Name :

Kummamuri Murthy Narasimha

Designation :

Director

Address :

1‐2‐593/29, Gaganmahal Colony, Domalguda, Hyderabad – 500029, Andhra Pradesh, India

Date of Birth/Age :

13.08.1957

Date of Appointment :

20.12.2013

DIN No. :

00023046

 

 

Name :

Padmanabhan Sankaranarayanan

Designation :

Director

Address :

132 Apsara, NCPA Apartments, D Tata Road, Nariman Point, Mumbai, 400021, Maharashtra, India

Date of Birth/Age :

15.05.1958

Date of Appointment :

20.12.2013

DIN No. :

00306299

 

 

Name :

Mr. Harish Ramananda Bhat

Designation :

Director

Address :

No A‐1053, Krest Park Apts, 39 Old Kanakapura Road, Basavanagudi, Bangalore - 560004

Karnataka, India

Date of Birth/Age :

08.11.1962

Date of Appointment :

20.12.2013

DIN No. :

00478198

 

 

Name :

Mr. Prashant kumar Ghose

Designation :

Director

Address :

208, Samudra Mahal, Dr. A.B. Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

03.09.1950

Date of Appointment :

21.03.2014

DIN No.:

00034945

 

 

Name :

Mr. Venkataramanan Ramachandran

Designation :

Director

Address :

D 001, Great Eastern Gardens, LBS Marg, Kanjurmarg West, Mumbai – 400078, Maharashtra, India

Date of Birth/Age :

03.10.1974

Date of Appointment :

21.03.2014

DIN No.:

02504321

 

 

Name :

Mr. Ajit Joshi

Designation :

Managing director

Address :

A-1201, Prakruti, Behind Gokul Dham Temple, Goregaon East, Mumbai – 400063, Maharashtra, India

Date of Birth/Age :

12.05.1960

Date of Appointment :

27.11.2006

DIN No.:

01265581

 

 

KEY EXECUTIVES

 

Name :

Mr. Taher Ali

Designation :

Senior Manager – Legal and Company Secretary

Address :

Flat No. 804, Wing – C, Nilgiri, Bamandaya Pada, Opp. Custom Colony, Military Road, Marol, Andheri East, Mumbai – 400072, Maharashtra, India

Date of Birth/Age :

06.03.1975

Date of Appointment :

18.09.2006

Pan No.:

AFTPA1071M

 

 

Name :

Mr. Pramod Dangaich

Designation :

Account Manager

 

 

Name :

Mr. Deba Prasad Adhya

Designation :

Head-Business Intelligence and Customer Innovation

 

 

Name :

Mr. Priyanka Gidwani

Designation :

Head -HR and Business Development

 

 

Name :

Mr. Avijit Mitra

Designation :

Chief Financial Officer

 

 

Name :

Mr. Rahul Tayal

Designation :

Head-Buying

 

 

Name :

Mr. Shalini Vohra

Designation :

Head-HR

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 02.09.2014

 

Name of Shareholders

 

No. of Shares

http://www.bseindia.com/include/images/clear.gifhttp://www.bseindia.com/include/images/clear.gifTata Sons Limited, India 

 

389999994

http://www.bseindia.com/include/images/clear.gifhttp://www.bseindia.com/include/images/clear.gifTata Sons Limited, India  and Farokh Nariman Subedar

 

1

Tata Sons Limited, India  and Bharat D Vasani

 

1

Tata Sons Limited, India  and Rohinton P Wadia

 

1

Tata Sons Limited, India  and Kersi Rustom Bhagat

 

1

Tata Sons Limited, India  and Eruch N. Kapadia,

 

1

Tata Sons Limited, India  and Adil Charna 

 

1

TOTAL

 

390000000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 02.09.2014

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of electronics retail trade through its Croma Stores.

 

 

Products :

Item Code No.

Product Description

90158090

Appliances

84713010

Computers /Peripherals

85171290

Communication

85287219

Entertainment

85219090

Gaming

85167990

Gaming Imaging

85167990

Others

85167990

Sale of Extended warranty

85167990

Display income

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Not Divulged

 

 

Bankers :
  • HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai- 400013, Maharashtra, India
  • The Hong kong and Shanghai Banking Corporation Limited, 52/60 M G Road, Fort, Mumbai- 400001, Maharashtra, India
  • Bank of Baroda, Mumbai Main Office, 10/12, M S Marg, Fort,, Mumbai - 400023, Maharashtra, India

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Long-term Borrowings

 

 

Non-convertible debentures others

1250.000

1500.000

Other loans and advances, others

(Finance lease obligation is secured

By hypothecation of Plant and Machinery taken on lease. The interest rate implicit in the lease is 13.50

% p.a.)

1.700

0.000

Short-term borrowings

 

 

Term loans from banks

(The interest on short term loan from banks are in the range of 9.65% p.a. to 11.60% p.a. and is

Repayable within one month.)

350.000

345.000

Other loans and advances

148.200

27.900

Total

1749.900

1872.900

 

Note:

 

Long-term Borrowings

 

  • Non-Convertible Debentures amounting to Rs. 250.000 Million and Rs.1000.000 Million are redeemable at premium of 10.64% p.a. compounded annually of the face value of debentures payable at the end of 3 years and 4 years respectively from the date of allotment. These debentures are secured by moveable fixed and current assets of the company.
  • Non-Convertible Debentures are redeemable at premium at a fixed rate of 11.25% p.a. compounded annually of the face value of debentures Payable at the end of 3 years from the date of allotment. These debentures are secured by moveable fixed and current assets of the company.
  • Finance lease obligation is secured by hypothecation of Plant and Machinery taken on lease. The interest rate implicit in the lease is 13.50 % p.a.

Short-term borrowings:

 

  • Cash credit from banks is secured against stock, book debts and movable fixed assets. The cash credit carries interest @ 12.50% and is repayable on demand.

 

  • Short Term loan from banks is secured against stock, book debts and movable fixed assets. The interest on short term loan from banks are in the range of 9.65% p.a. to 11.60% p.a. and is repayable within one month.

 

  • Interest on cash credit is payable @ 12.75%.

 

  • The present rate of interest on unsecured loan repayable on demand from banks are in the range of 9.40% p.a.to 12.30 % p.a.

 

 

 

Financial Institute:

IDBI Trusteeship Services Limited, Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai- 400001, Maharashtra, India

 

 

Auditors 1:

 

Name :

S.R. Batliboi and Associates

Chartered Accountants

Address :

22, Camac Street, Block C, 3rd Floor, Kolkata-700016, West Bengal, India

PAN No:

AABFS3421N

 

 

Auditors 2:

 

Name :

SNB Associates

Chartered Accountants

Address :

12, 3rd Floor, Gemini Parsn, Complex, 121 Anna Salai, Chennai - 600006,  Tamilnadu, India

PAN No:

AABFS3421N

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

 

 

Holding Company :

  • Tata Sons Limited

CIN No.: U99999MH1917PLC000478

 

 

Fellow Subsidiaries :

  • Tata Housing Development Company Limited [U99999MH1942PLC003573]
  • Tata AIG General Insurance Company Limited [U85110MH2000PLC128425]
  • Tata AIG Life Insurance Company Limited [U66010MH2000PLC128403]
  • Tata Consultancy Services Limited [L22210MH1995PLC084781]
  • Tata Sky Limited [U92120MH2001PLC130365]
  • Tata Industries Limited [U44003MH1945PLC004403]
  • Tata Capital Limited [L65990MH1991PLC060670]
  • Tata Investment Corporation Limited [L67200MH1937PLC002622]
  • Drive India Enterprise Solutions Limited [U72900MH2000PLC126195]
  • Tata Business Support Services Limited [U64200AP1995PLC044060]
  • Tata Value Homest Limited [U45400MH2009PLC195605]
  • TC Travel and Services Limited [U63040MH2008PLC187559]
  • Ewart Investments Limited [U74999MH1922PLC001030]
  • Tata Autocomp Systems Limited [U34100MH1995PLC093733]
  • Tata Capital Financial Services Limited [U67100MH2010PLC210201]
  • CMC Limited [L72200AP1975PLC001970]
  • TCS e-Serve Limited [U65990MH1984PLC033929]
  • Tata Interactive System Limited
  • Tata Capital Forex Limited (U65921MH2006PLC238745)
  • e-Nxt Financials Limited (U74999MH2002PLC135640)

 

Subsidiary Company :

 
  • Infiniti Wholesale Limited [U51900MH2006PLC159768]

 

 

Associate of Tata Sons Limited:

  • Tata Teleservices (Maharashtra) Limited [L64200MH1995PLC086354]
  • Tata Teleservices Limited [U74899DL1995PLC066685]

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

610000000

Equity Shares

Rs.10/- each

Rs. 6100.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

390000000

Equity Shares

Rs.10/- each

Rs. 3900.000 Million

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

3900.000

3900.000

2800.000

(b) Reserves & Surplus

(2840.500)

(1186.500)

(1890.700)

(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)

1059.500

2713.500

909.300

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1251.700

1500.000

1500.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

280.500

283.300

283.600

(d) long-term provisions

531.900

211.800

20.200

Total Non-current Liabilities (3)

2064.100

1995.100

1803.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

930.800

372.900

0.000

(b) Trade payables

2157.100

499.200

594.800

(c) Other current liabilities

2253.700

726.400

723.800

(d) Short-term provisions

738.000

161.100

446.000

Total Current Liabilities (4)

6079.600

1759.600

1764.600

 

 

 

 

TOTAL

9203.200

6468.200

4477.700

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1120.700

967.200

887.100

(ii) Intangible Assets

1500.200

143.300

95.800

(iii) Capital work-in-progress

17.100

5.900

32.800

(iv) Intangible assets under development

9.300

9.200

29.400

(b) Non-current Investments

0.100

1907.000

0.100

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

1493.500

745.500

647.900

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

4140.900

3778.100

1693.100

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

371.600

(b) Inventories

4036.000

2009.800

1852.100

(c) Trade receivables

561.500

374.400

281.900

(d) Cash and cash equivalents

184.100

68.700

62.000

(e) Short-term loans and advances

280.700

237.200

217.000

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

5062.300

2690.100

2784.600

 

 

 

 

TOTAL

9203.200

6468.200

4477.700

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from operations

31744.200

24892.700

19708.800

 

 

Other Income

236.300

143.800

34.500

 

 

TOTAL                                     (A)

31980.500

25036.500

19743.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of stock-in-trade

26844.500

21249.100

17403.700

 

 

Employee benefit expense

1200.600

909.800

759.700

 

 

Other expenses

4082.400

2980.700

2368.100

 

 

Exceptional items/ Prior period items

0.000

25.900

126.200

 

 

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

(36.300)

(157.700)

(403.600)

 

 

TOTAL                                     (B)

32091.200

25007.800

20254.100

 

 

 

 

 

Less

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

(110.700)

28.700

(510.800)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

163.900

62.800

140.700

 

 

 

 

 

 

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

(274.600)

(34.100)

(651.500)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

546.200

169.100

142.600

 

 

 

 

 

 

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

(820.800)

(203.200)

(794.100)

 

 

 

 

 

Less

TAX                                                                  (H)

0.600

0.000

0.000

 

 

 

 

 

 

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

(821.400)

(203.200)

(794.100)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(4025.000)

(3821.800)

(3027.700)

Add

PROFIT OF INFINITI WHOLESALE LIMITED FOR FY 2012-13

51.700

0.000

0.000

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(4794.700)

(4025.000)

(3821.800)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

79.500

48.400

41.200

 

 

 

 

 

 

VALUE OF IMPORTS

 

 

 

 

Imports calculated on CIF basis

530.000

0.000

0.000

 

TOTAL IMPORTS

530.000

0.000

0.000

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(2.11)

(0.62)

(2.84)

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

(2.59)

(0.82)

(4.03)

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

(0.35)

0.12

(2.59)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(8.94)

(4.47)

(17.98)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.77)

(0.07)

(0.87)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

2.06

0.69

1.65

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.83

1.53

1.58

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

2800.000

3900.000

3900.000

Reserves & Surplus

(1890.700)

(1186.500)

(2840.500)

Net worth

909.300

2713.500

1059.500

 

 

 

 

long-term borrowings

1500.000

1500.000

1251.700

Short term borrowings

0.000

372.900

930.800

Total borrowings

1500.000

1872.900

2182.500

Debt/Equity ratio

1.650

0.690

2.060

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from operations

19708.800

24892.700

31744.200

 

 

26.302

27.524

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from operations

19708.800

24892.700

31744.200

Profit/Loss

(794.100)

(203.200)

(821.400)

 

(4.03%)

(0.82%)

(2.59%)

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

FINANCIAL RESULTS:

 

The total income for the year ended March 31, 2014 was Rs 31980.500 Million, recording a growth of 27.73% over the previous financial year. Out of this, Rs 3174.42 Million was from the Company’s Million business of consumer durables and IT (CDIT) retailing. Same-store growth in FY 2013-14 declined to 10.3% from 17.2% recorded in the previous financial year. During the year, the Company launched 14 new stores and shut down 5 stores that were not performing as per expectations. The total number of operational stores at the end of the year was 101. The B2B business of the company grew by 97% YoY from Rs 1030.200 Million to Rs 2030.300 Million.

 

OPERATING PROFIT:

 

The Company’s Operating Profit (PBIT) for the financial year was Rs (6569.000) Million against the previous year’s Operating Profit of Rs (1145.000) Million, representing a decline of 473.71%. The Operating Margin declined to (2.05) % from (0.45) % in the previous financial year. The decline was largely due to pricing pressure in the market and increasing sales mix of the low-margin B2B business, diluting the gross margin earned on products sold.

 

PROFIT AFTER TAX

 

The Company recorded a Net Loss of Rs (821.400) Million during the period as against Rs (203.200) Million in the previous financial year, representing a decline of 304.23% year-on-year. The Net Margin declined from (0.81)% in the previous financial year to (2.57)% in FY 2013-14. Apart from the decline in gross margin earned on products sold, the main reason for the decline in net profit was an amount of Rs 324.700 Million debited to the P&L account against amortization of the Goodwill arising from the acquisition of Woolworths Wholesale India Private Limited, which has been estimated to have a useful life of 5 years.

 

 

BUSINESS OVERVIEW

 

The Company faced severe challenges in the business environment, with consumer spending declining sharply in the second half of the financial year. The festival season was extremely soft compared to same period in the previous year.

 

The Company continued to be one of the top three Consumer Durables and Information Technology retailers in India by volume. However, the comparable store growth slowed down to 10.9%, largely due to the poor consumer sentiment in the second half of the financial year.

 

The Company’s e-commerce business, including its own web store www.cromaretail.com and the market places where Croma is listed, grew strongly from Rs 164.600 Million in the previous financial year to Rs 808.900 Million in the current year.

 

The Company continued to expand the range of its own brand of products, which are being received extremely well by the market. The Croma brand was the 6th largest brand of products sold in Croma stores in the year, contributing Rs 1680.000 Million to the revenue.

 

 

TBEM ASSESSMENT:

 

As part of its commitment to Business Excellence, the Company underwent a TBEM assessment during the year and achieved an upward movement in its score band to 351-400 (Early Improvements), validating the growing maturity of the organizational processes. The assessment identified a few key positive themes at the Company, particularly that the Company is in stages of evolving from Customer Focus to Customer Centricity, and that it has an enthused and motivated workforce with an open, strongly ethical work culture.

 

The comprehensive Standard Operating Procedures and high degree to standardization across all stores, with greater customer service focus than competition were also indicated, along with the improvement in financial, customer and people related results. The assessment also identified some improvement areas for consideration, such as the strengthening of Balance Score Card approach to make strategy development and deployment more inclusive, greater attention to structured improvement orientation across the organization, focus on review of results with a recommendation to increase comparisons to competition and other comparable organizations, additional segmentation of data to enable greater insights and cascading outcomes of analysis to regions and stores. The Company has incorporated these inputs in its continued journey towards Business Excellence and will be applying for a TBEM assessment again in the next financial year.

 

 

SCHEME OF AMALGAMATION:

 

The Board, in the meeting held on March 26, 2013, had approved a Scheme of Amalgamation of the Company’s subsidiary, Infiniti Wholesale Limited (IWL), with the Company effective from April 1, 2012 subject to all required approvals and sanctions. After obtaining necessary consents from the shareholders of IWL and the Company, two separate petitions were filed before the Hon’ble Bombay High Court on August 13, 2013, seeking approval for the amalgamation of IWL with the Company.

 

The Hon’ble Bombay High Court has approved the Scheme of Amalgamation by an Order dated 4th April 2014. The Company has filed prescribed Form INC 28 along with a copy of the Court Order on 23rd May 2014

 

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Short-term borrowings

 

 

Term loans from banks

350.000

0.000

Other loans and advances

82.600

0.000

Total

432.600

0.000

 

 

CONTINGENT LIABILITIES:

 

(Rs. in Million)

PARTICULARS

31.03.2014

Claims against company not acknowledged as debt

54.800

Guarantees

252.800

Other money for which company is contingently liable

233.600

Total contingent liabilities

541.200

 

 

 

INDEX OF CAHRGES:

 

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10455093

21/10/2013

1,250,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA

B87397535

2

10360658

05/06/2012

1,500,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BALLARD ESTATE,, MUMBAI, MAHARASHTRA - 400001, INDIA

B41610130

3

10072616

06/05/2010 *

600,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA

A85836302

4

10060065

01/10/2013 *

500,000,000.00

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

52/60 M G ROAD, FORT, MUMBAI, MAHARASHTRA - 400001, INDIA

B87687018

* Date of Charge Modification

 

 

FIXED ASSETS:

 

  • Plant and equipment
  • Furniture and fixtures
  • Vehicles
  • Motor vehicles
  • Office equipment
  • Computer equipments
  • Other equipments
  • Leasehold improvements
  • Goodwill
  • 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, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.79

UK Pound

1

Rs.95.42

Euro

1

Rs.69.29

 

 

INFORMATION DETAILS

 

Information Gathered by :

HNA

 

 

Analysis Done by :

SUC

 

 

Report Prepared by :

MTN

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILITY

1~10

2

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

2

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

46

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.