MIRA INFORM REPORT
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Report No. : |
349607 |
|
Report Date : |
10.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
FUTURE LIFESTYLE FASHIONS LIMITED (w.e.f. 04.12.2012) INDUS LEAGUE (A DIVISION OF FUTURE LIFESTYLE FASHIONS LIMITED) |
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Formerly Known
As : |
FUTURE VALUE FASHION RETAIL LIMITED |
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Registered
Office : |
Knowledge House, Shyam Nagar, Off. Jogeshwari – Vikhroli Link Road,
Jogeshwari (East), Mumbai – 400060, Maharashtra |
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Tel. No.: |
91-22-66442200 |
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Country : |
India |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
30.05.2012 |
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Com. Reg. No.: |
11-231654 |
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Capital
Investment / Paid-up Capital : |
Rs.379.037 Million |
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CIN No.: [Company Identification
No.] |
L52100MH2012PLC231654 |
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IEC No.: |
Not Available / Not Applicable (As claimed by company management that company does not export and
import) |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the business of manufacturing, supply and distribution of footwear and accessories in India. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (46) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a division of “Future Lifestyle Fashion Limited” and it is
a part of the “Future Group”, one of India’s largest retailers. The ratings on Future Lifestyle Fashions Limited (FLFL) derive
strength from the vast experience of the promoters (Future Group) of FLFL in
the retail industry, established pan India presence of various operationally
profitable formats as well as the improvement in capital structure consequent
to equity infusion in FY15. The above rating strengths are however, tempered by moderate debt
service indicators coupled with increasing competition in the fashion retail
industry. However, trade relations are fair. Business is active. Payments terms
reported to be usually correct. In a view of aforesaid, the company can be considered for business
dealing 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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
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Rating |
Long Term Bank Facilities = A+ |
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Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
October 2015 |
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Rating Agency Name |
CARE |
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Rating |
Short Term Bank Facilities = A1 |
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Rating Explanation |
Very strong degree of safety and Carry lowest credit risk. |
|
Date |
October 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
31-03-2015.
INFORMATION DECLINED
Management Non-Cooperative (Tel No.: 91-80-33423535)
LOCATIONS
|
Registered Office : |
Knowledge House, Shyam Nagar, Off. Jogeshwari - Vikhroli Link Road,
Jogeshwari (East), Mumbai – 400060, Maharashtra |
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Tel. No.: |
91-22-66442200 / 22-30842336 |
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Fax No.: |
91-22-66442201 / 22-30842502 |
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E-Mail : |
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Website : |
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Corporate Office : |
Future Retail Home Office, Tower C, 247 Park, LBS Marg, Vikhroli (West), Mumbai – 400 083, Maharashtra, India |
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Tel No.: |
91-22-61190000 |
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. Chandra Prakash Toshniwal |
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Designation : |
Whole-Time Director |
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Address : |
A-407/408,A-Wing, Oberoi Splendor,, Jogeshwari Vikhroli Link Road, Andheri (East), Mumbai - 400060, Maharashtra, India |
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Date of Appointment : |
02.03.2013 |
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DIN No.: |
00036303 |
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Name : |
Mr. Kishore Laxminarayan Biyani |
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Designation : |
Managing Director |
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Address : |
406, Jeevan Vihar, Manav Mandir Road,, Malabhar Hill, Mumbai - 400006, Maharashtra, India |
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Date of Appointment : |
06.12.2012 |
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DIN No.: |
00005740 |
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Name : |
Darlie Oommen Koshy |
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Designation : |
Director |
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Address : |
1402, Tower-2, Orchid Petals,, Sector-49, Sohna Road, Gurgaon - 122002, Haryana, India |
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Date of Appointment : |
10.06.2013 |
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DIN No.: |
00023527 |
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Name : |
Mr. Shailesh Vishnubhai Haribhakti |
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Designation : |
Director |
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Address : |
10 and 11 Sahil Apartment, S K Barodawala Road, 14 Altamount Road, Cumballa Hill, Mumbai - 400026, Maharashtra, India |
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Date of Appointment : |
10.06.2013 |
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DIN No.: |
00007347 |
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Name : |
Mr. Rakesh Biyani |
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Designation : |
Director |
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Address : |
Flat No 1903,19th Floor, B Wing, Vivarea Bldg, Sane Guruji Marg, Jacob Circle, Mumbai - 400011, Maharashtra, India |
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Date of Appointment : |
10.06.2013 |
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DIN No.: |
00005806 |
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Name : |
Ms. Sharda Ashwini Agarwal |
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Designation : |
Director |
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Address : |
1301, Marathon Heights, P.B.Marg, Worli, Mumbai - 400013, Maharashtra, India |
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Date of Appointment : |
27.03.2015 |
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DIN No.: |
00022814 |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Kumar Subhash Chand Mutha |
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Designation : |
Secretary |
|
Address : |
D-103, Riviera CHS Limited, Lokhandwala Township, Akurli Road, Kandivali East, Mumbai - 400101, Maharashtra, India |
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Date of Appointment : |
17.03.2015 |
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PAN No.: |
AHYPM7787M |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2015
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of Total No. of Shares |
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As a
% of (A+B) |
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(A) Shareholding
of Promoter and Promoter Group |
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|||
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|
38933 |
0.02 |
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|
114275625 |
60.30 |
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|
114314558 |
60.32 |
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Total
shareholding of Promoter and Promoter Group (A) |
114314558 |
60.32 |
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(B)
Public Shareholding |
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|||
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|
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|
4387847 |
2.32 |
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|
190344 |
0.10 |
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|
|
15527950 |
8.19 |
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|
|
|
1921336 |
1.01 |
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|
|
|
9724950 |
5.13 |
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|
49800 |
0.03 |
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|
49800 |
0.03 |
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|
31802227 |
16.78 |
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|
24878107 |
13.13 |
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|
8042839 |
4.24 |
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|
9679906 |
5.11 |
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|
800830 |
0.42 |
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|
312307 |
0.16 |
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|
215040 |
0.11 |
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|
138578 |
0.07 |
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|
134905 |
0.07 |
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|
43401682 |
22.90 |
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Total
Public shareholding (B) |
75203909 |
39.68 |
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Total
(A)+(B) |
189518467 |
100.00 |
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(C) Shares
held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total
(A)+(B)+(C) |
189518467 |
0.00 |
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BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of manufacturing, supply and distribution of footwear and accessories in India. |
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Products : |
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Brand Names : |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the
management |
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Bankers : |
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Facilities : |
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Auditors : |
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Name : |
NGS and Co. LLP Chartered Accountants |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiaries : |
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Associate
Companies : |
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Joint
Ventures |
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Enterprises
over which key managerial personnel are able to exercise significant
influence : |
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CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
250000000 |
Equity Shares |
Rs.2/- each |
Rs.500.000 Million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
186209031 |
Equity Shares |
Rs.2/- each |
Rs.372.400 Million |
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I)
Reconciliation
of number of shares
Equity Share of Rs. 2 each
|
Particulars |
As at March 31, 2015 |
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|
No. of Shares |
|
At the beginning of the year |
154473231 |
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Add : Issued during the year |
31735800 |
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At the end of the year |
186209031 |
(ii) Terms/Rights
attached to equity shares
The company has only one class of equity shares having a par value of ` 2 per share. Each holder of equity share is entitled to one vote per share.
The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distributions will be in proportion to the number of equity shares held by the shareholders.
(iii) Details of
shareholders holding more than 5% shares in the Company
|
Name of Shareholder |
As at March 31, 2015 |
|
|
|
No. of Shares Held |
% of Holding |
|
Future Retail Limited |
30570108 |
16.42 |
|
Future Corporate Resources Limited |
29822732 |
16.02 |
|
Ryka Commercial Ventures Private Limited |
20163384 |
10.83 |
|
PI Opportunities Fund - I |
15527950 |
8.34 |
|
PIL Industries Limited |
10964652 |
5.89 |
|
ARISAIG Partners (Asia) PTE Limited A/c Arisaig India Fund Limited |
-- |
-- |
|
Bennett Coleman and Company Limited |
-- |
-- |
(iv) Shares allotted
as fully paid-up without payment received in cash (during 5 years preceding
March 31, 2015)
12,87,41,832 Equity Shares of Rs. 2 each fully paid up pursuant to Composite Scheme of Arrangement and Amalgamation.
(v) Share reserved for
issue under options and contracts, including the terms and amounts
For details of Shares reserved for issue under the Employee Stock Options Scheme (ESOS) of the Company.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
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I.
EQUITY AND LIABILITIES |
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|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
372.400 |
308.900 |
51.400 |
|
(b) Reserves & Surplus |
15324.800 |
12604.300 |
(3.400) |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Compulsory Convertible
Debentures |
300.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
15997.200 |
12913.200 |
48.000 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
10476.100 |
12640.300 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
649.700 |
644.900 |
0.000 |
|
(c) Other long term
liabilities |
662.000 |
2517.800 |
0.000 |
|
(d) long-term provisions |
70.600 |
54.800 |
0.000 |
|
Total
Non-current Liabilities (3) |
11858.400 |
15857.800 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
717.900 |
778.900 |
0.000 |
|
(b) Trade payables |
8287.500 |
8348.100 |
0.000 |
|
(c) Other current liabilities |
2523.500 |
1422.700 |
0.100 |
|
(d) Short-term provisions |
104.200 |
82.600 |
0.000 |
|
Total
Current Liabilities (4) |
11633.100 |
10632.300 |
0.100 |
|
|
|
|
|
|
TOTAL |
39488.700 |
39403.300 |
48.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
12509.800 |
10984.300 |
0.000 |
|
(ii) Intangible Assets |
509.200 |
514.300 |
0.000 |
|
(iii) Capital work-in-progress |
1721.200 |
1895.400 |
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 |
3058.900 |
3289.200 |
0.000 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
17799.100 |
16683.200 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
3436.900 |
3785.300 |
0.000 |
|
(b) Inventories |
11731.700 |
10239.700 |
0.000 |
|
(c) Trade receivables |
2692.300 |
2632.000 |
0.000 |
|
(d) Cash and cash equivalents |
596.600 |
2710.800 |
1.700 |
|
(e) Short-term loans and
advances |
2852.200 |
2669.300 |
45.000 |
|
(f) Other current assets |
379.900 |
683.000 |
1.400 |
|
Total
Current Assets |
21689.600 |
22720.100 |
48.100 |
|
|
|
|
|
|
TOTAL |
39488.700 |
39403.300 |
48.100 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Revenue from Operations |
31340.900 |
27439.800 |
0.000 |
|
|
Other Income |
217.400 |
3317.200 |
1.500 |
|
|
TOTAL
(A) |
31558.300 |
30757.000 |
1.500 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
621.900 |
657.100 |
0.000 |
|
|
Purchases of Stock-in-Trade |
20069.300 |
16784.900 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(1497.500) |
(471.600) |
0.000 |
|
|
Employees benefits expense |
1691.900 |
1290.900 |
0.000 |
|
|
Exceptional Items |
0.000 |
56.800 |
0.000 |
|
|
Other expenses |
7153.700 |
6615.100 |
4.800 |
|
|
TOTAL
(B) |
28039.300 |
24933.200 |
4.800 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
3519.000 |
5823.800 |
(3.300) |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1583.300 |
1629.500 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1935.700 |
4194.300 |
(3.300) |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
1700.900 |
3851.900 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
234.800 |
342.400 |
(3.300) |
|
|
|
|
|
|
|
Less |
TAX (H) |
49.300 |
109.600 |
0.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
185.500 |
232.800 |
(3.400) |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
23.300 |
(3.400) |
0.000 |
|
|
|
|
|
|
|
Add |
Profit
pursuant to Composite Scheme of Arrangement and Amalgamation (L) |
0.000 |
40.500 |
0.000 |
|
|
|
|
|
|
|
Less
|
Adjustments
for Depreciation as per Schedule II of the Companies Act, 2013 |
14.500 |
0.000 |
0.000 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Dividend for the financial
year 2013-14 paid on shares issued up to July 2014 |
6.300 |
0.000 |
0.000 |
|
|
Tax on Dividend paid |
1.100 |
0.000 |
0.000 |
|
|
Transfer to Debenture
Redemption Reserve |
0.000 |
151.000 |
0.000 |
|
|
Transfer to General Reserve |
18.600 |
23.300 |
0.000 |
|
|
Proposed Dividend on Equity
Shares |
75.800 |
61.800 |
0.000 |
|
|
Tax on Proposed Dividend |
15.200 |
10.500 |
0.000 |
|
|
Tax on Dividend |
|
|
|
|
|
Total
(M) |
117.000 |
246.600 |
0.000 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S (J+K+L-M) |
77.300 |
23.300 |
(3.400) |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
279.400 |
194.200 |
0.000 |
|
|
TOTAL
EARNINGS |
279.400 |
194.200 |
0.000 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
2.000 |
1.800 |
0.000 |
|
|
Purchase of stock-in-trade |
117.000 |
136.600 |
0.000 |
|
|
Capital Goods |
116.000 |
3.800 |
0.000 |
|
|
Accessories & Others |
2.500 |
3.100 |
0.000 |
|
|
TOTAL
IMPORTS |
237.500 |
145.300 |
0.000 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
1.07 |
1.51 |
(0.3) |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
1250.000 |
138.600 |
NA |
|
Cash generated from operations |
(1193.900) |
(8468.300) |
NA |
|
Net cash flow from operating activity |
2308.200 |
(5929.700) |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
0.59 |
0.85 |
NA |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
11.23 |
21.22 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.62 |
0.91 |
(6.86) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.03 |
(0.07) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.78 |
1.05 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.86 |
2.14 |
481.00 |
STOCK
PRICES
|
Face Value |
Rs.2.00/- |
|
Market Value |
Rs.70.15/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
51.400 |
308.900 |
372.400 |
|
Reserves & Surplus |
(3.400) |
12604.300 |
15324.800 |
|
Net
worth |
0.000 |
12913.200 |
15997.200 |
|
|
0.000 |
|
|
|
long-term borrowings |
48.000 |
12640.300 |
10476.100 |
|
Short term borrowings |
|
778.900 |
717.900 |
|
Current Maturities Of
Long-Term Debts |
0.000 |
138.600 |
1250.000 |
|
Total
borrowings |
0.000 |
13557.800 |
12444.000 |
|
Debt/Equity
ratio |
0.000 |
1.050 |
0.778 |
%20-%20349607%2010-Nov-2015_files/image007.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
30757.000 |
31558.300 |
|
|
2,050,366.667 |
2.605 |
%20-%20349607%2010-Nov-2015_files/image008.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
27439.800 |
31340.900 |
|
Profit |
232.800 |
185.500 |
|
|
0.85% |
0.59% |
%20-%20349607%2010-Nov-2015_files/image009.gif)
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
No |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Future Lifestyle Fashions (FLF) in its second year of operations has continued to build and strengthen its portfolio as a lifestyle fashion arm of Future Group. With the clothing and apparel retail market worth Rs. 324500.000 Million growing at 20-21% it is expected to be worth around Rs. 564800.000 Million by 2017, as per Images Retail Report 2015. Modern fashion retail is estimated at 43.00% of this total market and is expected to grow by a much higher growth rate. FLF is poised to capture major share of this fast growing and evolving lifestyle fashion market in the country. The Company has built its position in three integrated areas: fashion brands, fashion distribution and investments in fast growing fashion companies.
During the last few decades with growth in modern retail, there are certain sub-segments under each category which have shown high growths such as denim, casual wear, women western wear and kids’ party wear. FLF with its broad portfolio of fashion brands covers the entire gamut of categories including formal men-wear, casual wear, active or sportswear, women’s ethnic wear, women’s denim wear, women’s casual wear, footwear and accessories and are present across various price points.
The Company has exclusive tie ups with international / global brands for manufacturing and marketing the products in India. The portfolio of fashion brands are distributed through own retail chains, exclusive brand outlets (EBOs) and multi brand outlets (MBOs) across the country. The Company also operates national retail chains viz. Central, Brand Factory, Iamin, and Planet Sports, that is spread across 4.90 million square feet of retail space. These chains are backed by strong sourcing network, in-house trend-spotting and design teams, coupled with robust logistics and warehousing network.
The Company also focuses on investing in fast growing fashion companies and building the portfolio of fashion brands. During the year, the Company invested in fashion brands like Pepperone (12.00% stake), a leading manufacturer and distributor of handbags and accessories and Spunk (60.00% stake) engaged in manufacturing, supplying and distributing leather footwear and accessories in India. FLF also increased its stakes in existing brands like in Famozi from 11.00% to 30.00% and Mineral from 22.70% to 37.00%.
With the aim of capitalizing FLF’s balance sheet, on June 13, 2014, the Company allotted 1,55,27,950 Equity Shares of face value of Rs. 2 each at a price of Rs. 80.50 per Equity Share aggregating to Rs.1250.00 Million to a venture capital fund on preferential basis and further on November 7, 2014, 1,59,34,065 Equity Shares of face value of Rs. 2 each at a price of Rs. 91 per Equity Share aggregating to Rs. 1450.000 Million and 32,96,700 Compulsory Convertible Debentures (CCDs) of face value of Rs. 91 each aggregating to Rs. 300.000 Million, on preferential basis to the Promoter Group of the Company. This funding has enabled investments in growth of the business and in debt reduction. Further, the CCDs issued to promoter group company got converted in equivalent number of Equity Shares on April 01, 2015.
OPERATIONAL OVERVIEW
FLF follows a vertically integrated business model encompassing trend spotting, brand building, product development, manufacturing and distribution. FLF keeps track of customer preference and emerging trends in the lifestyle fashion market. These trends lead to creation of new brands, products or offerings to meet the consumer needs. Based on consumer needs and business opportunity, FLF creates, develops and nurtures brands to make the product offering for lifestyle needs of consumer. The brand portfolio meets the needs of different customer segments in lifestyle fashion business.
At the end of the year, FLF operated through 4.90 million sq ft of retail space across its retail formats. The Company undertook modest store expansion during the year adding around 0.71 million sq ft of retail space. Apart from own store network, the brands are also retailed through national mutli-brand outlets and leading e-commerce sites. In May 2014, Central completed a decade of fashionable success; from that solitary store in May, 2004 to 25 stores in 15 major] cities of the country by May, 2014 lays a journey which is full of hard work, challenges, joy and hunger to achieve more! As of year ended March 31, 2015, the Company operated 29 Central stores, 39 Brand Factory outlets along with 290 sport stores and exclusive brand outlets.
With the aim of expanding the reach of its fashion brands, in October 2014 Future Group announced a strategic alliance with Amazon.in leveraging the strong product knowledge, extensive brand portfolio and sourcing base of Future Group, and the e-commerce platform, customer base and reach of Amazon.in platform and their respective websites. This partnership will focus on FLF’s fashion brands Lee Cooper, Converse, Indigo Nation, Scullers or Jealous21, among others which will be retailed exclusively online through Amazon.in platform. This partnership will promote existing and new brands in markets, explore co-branding opportunities and accelerate new product development in categories which are currently not served by retailers.
During the year, the Company completed the divestment of its 31.50% stake in Celio for Rs. 750.00 Million. However, FLF continued to invest in fast growing fashion brands by acquiring stakes in brands - Pepperone (12.00% stake), a leading manufacturer and distributor of handbags and accessories and Spunk (60.00% stake) engaged in manufacturing, supplying and distributing leather footwear and accessories in India. FLF also increased its stakes in existing brands like in Famozi from 11.00% to 30.00% and Mineral from 22.70% to 37.00%.
The Company received awards in categories like Central’s lingerie category team bagged two awards at Triumph India’s Annual Awards Ceremony, first award was for Excellence in Business Innovation and second award was for highest LTL growth for the year 2013-14. FLF’s licensed brand Converse was awarded the ‘Best Men’s Footwear Brand’ at the Myntra Brand Summit 2014 held in September 2014.
CUSTOMER AND
MARKETING OVERVIEW
The process of brand building includes activities like branding, in-store display and promotion, mass media communication through print, hoardings and electronic media, event sponsorships and associations. This creates mind share for the brand and market share follows.
FLF witnessed new product launches across its brand portfolio; Indigo Nation launched STREET.IN collection with a range of denims and tees range. Jealous 21 extended fashion line to club wear with a range offering monochrome, pastel, bohemian dress and tops along with embellishments. In addition, FLF also carried out various customer engagement and promotional activities. Jealous 21 launched a TV commercial across national channels in India with its Butt Out campaign.
The brand also tied up with a women’s biking group called The Bikerni to create the Butt Out Brigade. The Butt Out Brigade rode around Bengaluru to raise awareness about gender discrimination and to mark Women’s Day. FLF brands now have more than 15 lakh fans collectively on Facebook and are reaching out to almost 2 lakh people on a monthly basis. During the year, outdoor campaigns were conducted in Tier 1 cities such as Bengaluru, Mumbai, Pune as well as Tier 2 Cities such as Agartala, Indore, Cuttack, Bhubhaneshwar, Mysore, Nasik, Aurangabad, Kanpur, Lucknow, Vijaywada and Erode to name a few. Urbana the brand focused on men formal wear entered the TV space with CEO of Life on CNN IBN! featuring top CEOs from India, it also installed brand hoardings across major airports in India.
During the year, Central launched ‘Men of Style’, a very unique promotion of the latest in men’s fashion wear. This activity promoted the latest trends across men’s categories through in store activations and also by engaging with the brand’s fans online. Brand Factory launched its Ethnic Festival with the widest range of women’s ethnic range. The store brought together more than 2.5 lakh different products with more than
200 options in tops and 20 plus options in bottoms.
BUSINESS OUTLOOK
In FY 2015-16, FLF will emerge as a brand company with an extensive distribution network, both offline and online. Revenue growth will be driven by store additions, exploring new channel of sales for the brand portfolio and increasing consumer spending within the stores. The focus will be on achieving disproportionate growth of the brands business which will lead to margin expansions. The product portfolio will be expanded through extending lines of existing brands. FLF is on the path of creating significant stakeholder value through conservation of capital employed and generation of free cash flows thereby maximizing returns.
Additionally, FLF plans to expand its retail network to newer cities and also penetrate existing cities. It will expand its EBO network to towns and cities in order to capture newer markets which are currently not serviced by multi-brand outlets. The brands will be continued to be nurtured by dedicated teams capturing trends, moods and aspirations of the customers. FLF will also launch and extend its brand portfolio to new fashion lines and categories, footwear and accessories, in order to capture larger consumer spending.
With the surge in demand for readymade branded apparel in semi-urban areas, rising income levels and youth population, the Company expects to deliver higher same store sales growth along with higher operating margins. In addition, the rollback of excise duty on branded apparel has worked in favor of containing high prices. FLF will undertake various initiatives to increase footfalls, store productivity and consumer ticket size. FLF will continue to explore opportunities to partner and invest in fast growing labels managed by designers and entrepreneurs.
Review of Financial
Performance of the Company for the financial year ended March 31, 2015
Sales
During the financial year ended March 31, 2015, the Company’s Revenue from Operations was Rs. 31340.900 Million. The Company had also recorded Same Store Sales growth of 6.30% for financial year ended March 31, 2015.
Profit before Tax
Profit before Tax of the Company for financial year ended March 31, 2015 stood at Rs. 234.800 Million.
Interest
Finance Cost was Rs. 1583.300 Million for financial year ended March 31, 2015. The interest & financial charges cover for financial year ended March 31, 2015 under review was 2.2 times.
Net Profit
Net Profit for financial year ended March 31, 2015 stood at Rs. 18.55 Million.
Dividend
The Board has recommended a dividend of Rs. 0.40 (20.00%) per Equity Share of Rs. 2 each.
Capital
employed
The capital employed (net of cash) was Rs. 27844.600 Million as at March 31, 2015. EBITDA return on average capital employed (net of cash) for the financial year ended March 31, 2015 was 13.10%
REVIEW OF PERFORMANCE
During the year, the Company recorded an increase of 14.22% in revenue from operations at Rs. 31340.900 Million as compared to Rs. 27439.800 Million in the previous financial year. The Company reported net profit before tax of Rs. 234.800 Million for the year as compared to Rs. 342.400 Million for the previous financial year.
The Company’s fashion brands are distributed through its retail chains, exclusive brand outlets (EBOs) and multi brand outlets (MBOs) across the country. The stores in Company’s retail chains viz. Central, Brand Factory, I am in, all, Planet Sports and Lee Cooper are spread in 76 cities across the country and cover over 4.90 million square feet of retail space. These retail chains collectively attracted over 44.3 million customer footfalls during the financial year ended March 31, 2015. These chains are backed by strong sourcing network, in-house trend-spotting and design teams, coupled with robust logistics and warehousing network. Further, our distribution network includes 29 Central stores, 39 Brand Factory outlets along with 290 sport stores and exclusive brand outlets.
BUSINESS OUTLOOK
The Management is planning to emerge the Company as a brand company with an extensive distribution network, both offline and online during the financial year 2015-16. The Company would add new stores, explore new channel of sales for the brand portfolio and increase consumer spending within the stores to increase in growth of revenue and it would be on achieving disproportionate growth of the brands business which would lead to margin expansions.
The Company would be taking all steps to expand its retail network by expansion of its own format stores as well as capture newer markets which are currently not serviced by multi-brand outlets. The Management would also ensure that the dedicated teams continuously review various brands in light of the trends, moods and aspirations of the customers and appropriately position these brands to ensure the growth. The teams would also be increasing Company’s brands portfolio as well as extend existing brands to newer categories to capture larger consumer spending. The Company would undertake various initiatives to increase footfalls, store productivity and consumer ticket size and it will continue to explore opportunities to partner and invest in fast growing labels managed by designers and entrepreneurs.
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10597725 |
24/09/2015 |
500,000,000.00 |
TAMILNAD MERCANTILE BANK LIMITED |
Hemprakash Building, Ground Floor, No.92, Kazi Syed Street, Mandvi,
Mumbai, Maharashtra - 400003, |
C67602045 |
|
2 |
10575685 |
11/06/2015 |
500,000,000.00 |
LAKSHMI VILAS BANK LIMITED |
Bharat House, 104, B. S. Marg, Fort, Mumbai, Maharashtra - 400001,
INDIA |
C56834302 |
|
3 |
10515637 |
11/08/2014 |
1,000,000,000.00 |
Axis Bank Limited |
SECOND FLOOR, E - WING, WADIA INTERNATIONAL CENTER, PANDURANG BUDHAKAR
MARG, WORLI, Mumbai, Maharashtra - 400025, INDIA |
C17000860 |
|
4 |
10521114 |
04/07/2014 |
2,000,000,000.00 |
ALLBANK FINANCE LTD |
Allahabad Building, 2nd floor, 37, Mumbai Samachar Marg, Fort, Mumbai,
Maharashtra - 400023, INDIA |
C20825303 |
|
5 |
10507466 |
10/06/2014 |
2,000,000,000.00 |
ALLBANK FINANCE LTD |
Allahabad Building, 2nd floor, 37, Mumbai Samachar Marg, Fort, Mumbai,
Maharashtra - 400023, INDIA |
C09094954 |
|
6 |
10504726 |
05/06/2014 |
1,500,000,000.00 |
Axis Bank Limited |
CENTRAL OFFICE, SECOND FLOOR, BOMBAY DYEING MILL, |
C07871171 |
|
7 |
10504477 |
10/04/2014 |
2,500,000,000.00 |
Centbank Financial Services Limited |
15-16 Bajaj Bhawan, 1st Floor, Opp Inox Multiplex, Nariman Point,
Mumbai, Maharashtra - 400021, INDIA |
C05271127 |
|
8 |
10486709 |
28/03/2014 |
1,500,000,000.00 |
Vijaya Bank |
Corporate Banking Branch, Maker Chambers - IV, 2 |
C01109487 |
|
9 |
10468782 |
19/12/2013 |
6,000,000,000.00 |
Axis Bank Limited |
CENTRAL OFFICE, SECOND FLOOR, BOMBAY DYEING MILL, |
B92961069 |
|
10 |
10459270 |
27/08/2015 * |
10,250,000,000.00 |
Bank of India & 5 Others |
Mumbai Large Corporate Branch, Oriental Building, |
C63947410 |
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
|
A. Claims against the
Company not acknowledged as debts |
33.700 |
42.400 |
|
B. Corporate
Guarantees given |
242.000 |
50.000 |
|
C. Guarantees given by
the bank on behalf of the Company |
3.100 |
3.100 |
PRESS RELEASE
PRESS RELEASE
TITLED “PATANJALI AYURVED AND FUTURE GROUP JOIN HANDS”
This is to inform that the Company has joined hands and signed marketing
agreement for promoting, distributing and marketing Patanjali Ayurved products
in modern trade. The press release issued in this respect is enclosed herewith
for your reference and information.
Patanjali Ayurved and
Future Group Join Hands
• Future Group to promote, distribute and market Patanjali Ayurved products at their modern trade counters
• Marketing agreement between two Bhartiya companies aimed at evolving the fast growing market for high-quality FMCG products born from the timeless science of ayurveda and good health
New Delhi, 9th October 2015: Future Group and Patanjali Ayurved today announced a marketing partnership that will focus on growing the popularity and access for health-positive, ayurvedic FMCG products amongst millions of consumers in Bharat.
Patanjali Ayurved offers the entire range of FMCG products in food, staples, nutrition, hair care, skin care, dental care and toiletries that provide a far healthy alternative to similar products available in the market. Its focus on using the timeless and indigenous knowledge of herbs and medicines, coupled with technology-led, state-of-the-art processing facilities and offering these products at a great value for money, has helped Patanjali Ayurved become the country’s fastest growing FMCG company.
Future Group will set up an office for storing the goods of Patanjali Ayurved in Haridwar to market and distribute these products in modern trade through all its food-led formats. The entire range of Patanjali products will be available across Big Bazaar and subsequently through its other chains such as KB’s, Aadhaar and Nilgiris in over 245 cities and towns across India.
Speaking at the launch of this partnership, Swami Ramdevji Maharaj said, “Our Patanjali’s truly a brand that is made in Bharat, made for Bharat and made by Bhartiyas,”
“After ignoring this segment for so long and now seeing
Patanjali’s success, almost all multinational FMCG companies are trying to
bring in ayurvedic products. We wanted to join our hands with the pioneers and
the originators of the idea who made ayurvedic FMCG products accessible for
every Bhartiya.” said Kishore Biyani, Group CEO, Future Group, and added,
“Together with Patanjali Ayurved, we feel we can create a strong swadeshi
alternative to all daily use goods that we in Bharat use.”
FIXED ASSETS
Tangible Assets
- Freehold Land
- Leasehold Improvements
- Plant & Equipments
- Office Equipments
- Computers
- Furniture, Fixtures and Other Fittings
- Vehicles
Intangible Assets
- Computer Software
- License Rights
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.66.33 |
|
|
1 |
Rs.100.03 |
|
Euro |
1 |
Rs.71.44 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.