MIRA INFORM REPORT
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Report No. : |
343499 |
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Report Date : |
06.10.2015 |
IDENTIFICATION DETAILS
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Name : |
FUTURE LIFESTYLE FASHIONS LIMITED (w.e.f. 04.12.2012) |
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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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Country : |
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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. 372.400 Million |
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CIN No.: [Company Identification
No.] |
L52100MH2012PLC231654 |
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PAN No.: [Permanent Account No.] |
AABCF9869N |
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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 has two major business divisions: Fashion Retailing and Investments
in Fashion Companies. |
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No. of Employees
: |
6828 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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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 part of the Future Group, one of India’s largest
retailers. It is an established company having satisfactory track. The company has decent financial position for the year 2015 with
healthy net worth base, comfortable liquidity position and good debt
protection metrics. Further, rating derives strength from vast experience of the promoters
in the retail industry and favorable growth prospects of the organised retail
industry in India. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct and as per commitment. In view of strong promoters and established market position of the
future group, the company can be considered normal 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.
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 carry low
credit risk. |
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Date |
03.09.2014 |
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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. |
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Date |
03.09.2014 |
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 DENIED
MANAGEMENT NON-COOPERATIVE
91-22-61190000
LOCATIONS
|
Registered Office : |
Knowledge House, Shyam Nagar, Off. Jogeshwari - Vikhroli Link Road,
Jogeshwari (East), Mumbai – 400060, Maharashtra, India |
|
Tel. No. : |
91-22-30842336/28212295 |
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Fax No. : |
91-22-66442201/30842501/619955019 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporates
Office /Branch Home Office : |
Tower C, 247 Park, LBS Marg, Vikhroli (West), Mumbai – 400083,
Maharashtra, India |
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Tel. No. : |
91-22-61190000 |
DIRECTORS
AS ON 31.03.2015
|
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 : |
25.06.2013 |
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DIN No.: |
00005740 |
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Name : |
Mr. Rakesh Biyani |
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Designation : |
Non-Executive Director |
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Address : |
Flat No 1903, 19th Floor, B Wing, Vivarea Building, Sane Guruji Marg, Jacob Circle, Mumbai - 400011, Maharashtra, INDIA |
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Date of Appointment : |
08.08.2014 |
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DIN No.: |
00005806 |
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Name : |
Mrs. Shailesh Vishnubhai Haribhakti |
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Designation : |
Chairman and Independent 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 : |
08.08.2014 |
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DIN No.: |
00007347 |
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Name : |
Miss. Sharda Ashwini Agarwal |
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Designation : |
Independent Director |
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Address : |
1301, Marathon Heights, P. B. Marg, Worli, Mumbai - 400013, Maharashtra, India |
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Date of Appointment : |
26.08.2015 |
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DIN No.: |
00022814 |
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Name : |
Dr. Darlie Oommen Koshy |
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Designation : |
Independent 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 : |
08.08.2014 |
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DIN No.: |
00023527 |
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Name : |
Mr. Chandra Prakash Toshniwal |
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Designation : |
Executive Director and Chief Financial Officer |
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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 |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Kumar Subhash Chand Mutha |
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Designation : |
Chief Legal and Company Secretary |
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Address : |
D-103, Riviera CHS Limited, Lokhandwala Township, Akurli Road, Kandivali East, Mumbai - 400 101, Maharashtra, India |
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Date of Birth/Age : |
26.07.1965 |
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Date of Appointment : |
17.03.2015 |
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PAN No.: |
AHYPM7787M |
SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
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|
38933 |
0.02 |
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|
109530288 |
57.79 |
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|
109569221 |
57.81 |
|
Total shareholding of Promoter
and Promoter Group (A) |
109569221 |
57.81 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4385383 |
2.31 |
|
|
165877 |
0.09 |
|
|
15527950 |
8.19 |
|
|
1921336 |
1.01 |
|
|
13869501 |
7.32 |
|
|
35870047 |
18.93 |
|
|
|
|
|
|
25398974 |
13.41 |
|
|
|
|
|
|
7975518 |
4.21 |
|
|
9324905 |
4.92 |
|
|
1370588 |
0.72 |
|
|
422494 |
0.22 |
|
|
477780 |
0.25 |
|
|
335409 |
0.18 |
|
|
134905 |
0.07 |
|
|
44079199 |
23.26 |
|
Total Public shareholding (B) |
79949246 |
42.19 |
|
Total (A)+(B) |
189518467 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
Total (A)+(B)+(C) |
189518467 |
100.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl.No. |
Name of the
Shareholder |
Details of Shares held |
Encumbered shares (*) |
|||
|
No. of Shares held |
As a % of grand total
(A)+(B)+(C) |
No Of Shares |
As a percentage |
As a % of |
||
|
1 |
Future Retail Limited |
3,05,70,108 |
16.13 |
0 |
0.00 |
0.00 |
|
2 |
Future Corporate Resources Limited |
2,98,22,732 |
15.74 |
22822682 |
76.53 |
12.04 |
|
3 |
PIL Industries Limited |
1,09,64,652 |
5.79 |
7388863 |
67.39 |
3.90 |
|
4 |
Gargi Developers Private Limited |
66,57,511 |
3.51 |
6657511 |
100.00 |
3.51 |
|
5 |
Ryka Commercial Ventures Private Limited |
2,01,63,384 |
10.64 |
20163384 |
100.00 |
10.64 |
|
6 |
Central Departmental Stores Private Limited |
29,66,570 |
1.57 |
2966570 |
100.00 |
1.57 |
|
7 |
Future Capital Investment Private Limited |
28,22,097 |
1.49 |
0 |
0.00 |
0.00 |
|
8 |
Manz Retail Private Limited |
3,23,918 |
0.17 |
66666 |
20.58 |
0.04 |
|
9 |
Future Ideas Realtors India Limited |
38,38,788 |
2.03 |
0 |
0.00 |
0.00 |
|
10 |
Future Ideas Company Limited |
14,00,195 |
0.74 |
0 |
0.00 |
0.00 |
|
11 |
Avni Kishorkumar Biyani |
19,499 |
0.01 |
0 |
0.00 |
0.00 |
|
12 |
Ashni Kishore Biyani |
16,770 |
0.01 |
0 |
0.00 |
0.00 |
|
13 |
Akar Estate and Finance Private Limited |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
14 |
Anil Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
15 |
Gopikishan Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
16 |
Kishore Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
17 |
Laxminarayan Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
18 |
Rakesh Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
19 |
Sunil Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
20 |
Vijay Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
21 |
Vivek Biyani |
333 |
0.00 |
0 |
0.00 |
0.00 |
|
|
Total |
10,95,69,221 |
57.81 |
60065676 |
54.82 |
31.69 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
|
1 |
PI Opportunities Fund-I |
15527950 |
8.19 |
|
|
2 |
Bennett Coleman & Company Limited |
8112748 |
4.28 |
|
|
3 |
BNP Paribas Arbitrage |
4540424 |
2.40 |
|
|
4 |
Lata Bhanshali |
3497905 |
1.85 |
|
|
5 |
Reliance Capital Trustee Company Limited Account Relianceequity
Opportunities Fund |
3218000 |
1.70 |
|
|
6 |
Counseled Mercantile Private Limited |
2429996 |
1.28 |
|
|
7 |
Mohini Resources Private Limited |
2129943 |
1.12 |
|
|
8 |
India Opportunities Growth Fund Limited - Pinewood Strategy |
3401040 |
1.79 |
|
|
9 |
Morgan Stenley Asia (Singapore) Pte |
5087811 |
2.68 |
|
|
10 |
Aaradhak Commercial Ventures Private Limited |
2033814 |
1.07 |
|
|
|
Total |
49979631 |
26.37 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons (together with PAC) belonging to the
category “Public” and holding more than 5% of the total number of shares of the
company
|
Sl. No. |
Name(s) of the shareholder(s) and the Persons
Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of Total No. of Shares |
|
|
1 |
PI Opportunities Fund-I |
15527950 |
8.19 |
|
|
|
Total |
15527950 |
8.19 |
Details of Locked-in Shares
|
Sl. No. |
Name of the
Shareholder |
No.
of Shares |
Locked-in Shares
as % of |
|
1 |
Future Retail Limited |
2,57,31,399 |
13.58 |
|
2 |
Future Corporate Resources Limited |
51,63,248 |
2.72 |
|
3 |
Future Ideas Realtors India Limited |
33,52,364 |
1.77 |
|
4 |
Ryka Commercial Ventures Private Limited |
1,59,34,065 |
8.41 |
|
5 |
PI Opportunities Fund 1 |
1,55,27,950 |
8.19 |
|
|
Total |
6,57,09,026 |
34.67 |
BUSINESS DETAILS
|
Line of Business : |
Subject has two major business divisions: Fashion Retailing and
Investments in Fashion Companies. |
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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 : |
Not Available |
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Imports : |
Not Available |
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Terms : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
6828 (Approximately) |
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Bankers : |
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Facilities |
NOTE: LONG-TERM
BORROWINGS: a)
Non-Convertible
Debentures (NCDs): NCDs of Rs. 6500.000 Million (2013-14 : Rs. 4500.000 Million) are secured by pari-passu first charge on immovable and movable fixed assets of the Company, carries coupon rate of 11.50% per annum and are redeemable at par. NCDs are repayable as follows Rs. 1250.000 Million in FY 2015-16, Rs. 2250.000 Million in 2016-17, Rs. 1000.000 Million in 2017-18, Rs. 800.000 Million in 2019-20 and Rs. 1200.000 Million in 2020-21. b)
Term
Loans from Banks: i) Term Loans of Rs. 1122.000 Million (2013-14: Rs. 2259.200 Million) are secured by (a) First pari-passu charge on Fixed Assets of the company. (b) First charge on Future Credit/Debit card receivables of “Central Format” through escrow mechanism of the company. (c) Personal guarantee of Director. ii)
Term Loans of Rs. 486.100 Million (2013-14:
Rs. 1241.300 Million) are secured by (a) Residual Charge on Fixed Assets and
Current Assets of the Company. (b) First charge on Future Credit/ Debit card
receivables of “Central Format” through escrow mechanism of the company. (c)
Personal guarantee of Director. iii)
Term Loans of Rs. 3618.000 Million (2013-14:
Rs. 3778.400 Million) are secured by First pari-passu charge on Fixed Assets
(movable and immovable) both present and future of the company. iv)
Term Loans are repayable as follows: Rs. 89.200 Million in FY 2016-17, Rs. 1370.500
Million in FY2017-18, Rs. 1472.500 Million in FY 2018-19 and Rs. 1155.000
Million in FY 2019-20 and Rs. 1138.900 Million in FY 2020-21. v)
Weighted average rate of interest on the Term
Loans is 11.89 %. SHORT-TERM
BORROWINGS: Working Capital
Loans of Rs. 717.900 Million (2013-14 : Rs. 278.900 Million) are secured by :
|
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Finance Institution : |
Cent bank Financial Services Limited, 15-16 Bajaj Bhawan,
1st Floor, Opposite Inox Multiplex, Nariman Point, Mumbai - 400021,
Maharashtra, India |
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Auditors : |
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Name : |
NGS and Company Chartered Accountants |
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Address : |
B-46, Pravasi Industrial Estate, V.N. Road, Goregaon
(East), Mumbai-400063, Maharashtra, India |
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PAN No.: |
AABFS3313D |
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Secretarial Auditor : |
Sanjay Dholakia and Associates |
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Subsidiaries : |
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Associates |
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Joint Venture/
Associates : |
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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 |
|
|
|
|
|
|
25,00,00,000 |
Equity Shares |
Rs. 2/- each |
Rs. 500.000 Million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18,62,09,031 |
Equity Shares |
Rs. 2/- each |
Rs. 372.400 Million |
|
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Reconciliation of
the number of shares
|
Equity Shares |
Number
of Shares |
|
Shares outstanding at the beginning of the year |
15,44,73,231 |
|
Shares issued during the year |
3,17,35,800 |
|
Shares
outstanding at the end of the year |
18,62,09,031 |
Terms/Rights attached
to equity shares:
The company has only one class of equity shares having a par value of Rs. 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.
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Future Retail Limited |
3,05,70,108 |
16.42 |
|
Future Corporate
Resources Limited |
2,98,22,732 |
16.02 |
|
Ryka Commercial
Ventures Private Limited |
2,01,63,384 |
10.83 |
|
PI Opportunities Fund -
I |
1,55,27,950 |
8.34 |
|
PIL Industries Limited |
1,09,64,652 |
5.89 |
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.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF
FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
372.400 |
308.900 |
51.400 |
|
(b) Reserves & Surplus |
15,324.800 |
12,604.300 |
(3.400) |
|
(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) |
15,697.200 |
12,913.200 |
48.000 |
|
|
|
|
|
|
Compulsory Convertible Debentures |
300.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
10,476.100 |
12,640.300 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
649.700 |
644.900 |
0.000 |
|
(c) Other long term
liabilities |
662.000 |
2,517.800 |
0.100 |
|
(d) long-term
provisions |
70.600 |
54.800 |
0.000 |
|
Total Non-current
Liabilities (3) |
11,858.400 |
15,857.800 |
0.100 |
|
|
|
|
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(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
717.900 |
778.900 |
0.000 |
|
(b) Trade
payables |
8,287.500 |
8,348.100 |
0.000 |
|
(c) Other
current liabilities |
2,523.500 |
1,422.700 |
0.000 |
|
(d) Short-term
provisions |
104.200 |
82.600 |
0.000 |
|
Total Current
Liabilities (4) |
11,633.100 |
10,632.300 |
0.000 |
|
|
|
|
|
|
TOTAL |
39,488.700 |
39,403.300 |
48.100 |
|
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|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
12,509.800 |
10,984.300 |
0.000 |
|
(ii)
Intangible Assets |
509.200 |
514.300 |
0.000 |
|
(iii)
Capital work-in-progress |
1,721.200 |
1,895.400 |
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 |
3,058.900 |
3,289.200 |
0.000 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
17,799.100 |
16,683.200 |
0.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
3,436.900 |
3,785.300 |
0.000 |
|
(b)
Inventories |
11,731.700 |
10,239.700 |
0.000 |
|
(c) Trade
receivables |
2,692.300 |
2,632.000 |
0.000 |
|
(d) Cash
and cash equivalents |
596.600 |
2,710.800 |
1.700 |
|
(e)
Short-term loans and advances |
2,852.200 |
2,669.300 |
45.000 |
|
(f) Other
current assets |
379.900 |
683.000 |
1.400 |
|
Total
Current Assets |
21,689.600 |
22,720.100 |
48.100 |
|
|
|
|
|
|
TOTAL |
39,488.700 |
39,403.300 |
48.100 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
31,340.900 |
27,439.800 |
0.000 |
|
|
Other Income |
217.400 |
3,317.200 |
1.500 |
|
|
TOTAL SALES |
31,558.300 |
30,757.000 |
1.500 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
621.900 |
657.100 |
0.000 |
|
|
Purchases of
Stock-in-Trade |
20,069.300 |
16,784.900 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(1,497.500) |
(471.600) |
0.000 |
|
|
Employees benefits
expense |
1,691.900 |
1,290.900 |
0.000 |
|
|
Other expenses |
7,153.700 |
6,615.100 |
0.000 |
|
|
Exceptional Item |
0.000 |
56.800 |
4.800 |
|
|
TOTAL EXPENSES |
28,039.300 |
24,933.200 |
4.800 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
3,519.000 |
5,823.800 |
(3.300) |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
1,583.300 |
1,629.500 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX,
DEPRECIATION AND AMORTISATION |
1,935.700 |
4,194.300 |
(3.300) |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
1,700.900 |
3,851.900 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
234.800 |
342.400 |
(3.300) |
|
|
|
|
|
|
|
Less |
TAX |
49.300 |
109.600 |
0.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
185.500 |
232.800 |
(3.400) |
|
|
|
|
|
|
|
|
TOTAL EARNINGS |
279.400 |
194.200 |
0.000 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
2.000 |
1.800 |
NA |
|
|
Purchase of stock-in-trade |
117.000 |
136.600 |
NA |
|
|
Capital Goods |
116.000 |
3.800 |
NA |
|
|
Accessories & Others |
2.500 |
3.100 |
NA |
|
TOTAL IMPORTS |
237.500 |
145.300 |
NA |
|
|
|
|
|
|
|
|
|
EARNINGS / (LOSS) PER
SHARE (RS.) |
1.07 |
1.51 |
(0.30) |
QUARTERLY RESULTS
(Rs.
In Million)
|
Particulars |
30.06.2015 |
|
Unaudited |
Unaudited |
|
Net Sales |
7019.200 |
|
Total Expenditure |
6387.000 |
|
PBIDT (Excl OI) |
632.200 |
|
Other Income |
123.200 |
|
Operating Profit |
755.400 |
|
Interest |
356.900 |
|
Exceptional Items |
NA |
|
PBDT |
398.500 |
|
Depreciation |
361.800 |
|
Profit Before Tax |
36.700 |
|
Tax |
11.900 |
|
Provisions and contingencies |
NA |
|
Profit After Tax |
24.800 |
|
Extraordinary Items |
NA |
|
Prior Period Expenses |
NA |
|
Other Adjustments |
NA |
|
Net Profit |
24.800 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
(1193.900) |
(8468.300) |
(46.300) |
|
Cash generated from operations |
NA |
NA |
NA |
|
Cash generated from (Used) operations |
NA |
NA |
NA |
|
Net Cash From Operating Activities |
2308.200 |
(5929.700) |
(51.300) |
|
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 (PBDIT/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) |
|
0.71 |
1.04 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.86 |
2.14 |
NA |
STOCK
PRICES
|
Face Value |
Rs. 2.00/- |
|
Market Value |
Rs. 71.55/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
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 |
48.000 |
12913.200 |
15697.200 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
12640.300 |
10476.100 |
|
Short term borrowings |
0.000 |
778.900 |
717.900 |
|
Current Maturities of Long-Term Debts |
(4.630) |
(846.830) |
(119.390) |
|
Total
borrowings |
0.000 |
13419.200 |
11194.000 |
|
Debt/Equity
ratio |
0.000 |
1.039 |
0.713 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Total Income |
0.000 |
27439.800 |
31340.900 |
|
|
|
|
14.217 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Total Income |
0.000 |
27439.800 |
31340.900 |
|
Profit |
(3.400) |
232.800 |
185.500 |
|
|
|
0.85% |
0.59% |
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
two 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 |
No |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
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. 3,245,000.000 Million
growing at 20-21% it is expected to be worth around Rs. 5,648,000.000 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 Rs. 4.900 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 & 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 15,527,950 Equity Shares of face value of Rs. 2 each at a price of Rs.
80.50 per Equity Share aggregating to Rs. 1,250.000 Million to a venture
capital fund on preferential basis and further on November 7, 2014, 15,934,065
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 3,296,700 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.
SUBSIDIARIES:
Indus-League Clothing Limited (ILCL)
ILCL is dealing in the readymade apparels and accessories. The Company holds 100.00% of paid-up
capital of ILCL.
Elisir Lifestyle Private Limited (ELPL)
ELPL is engaged in the business of manufacturing, supply and distribution of footwear and accessories in
India. The Company holds 60.00% of paid-up capital of ELPL.
Rachika Trading Private Limited (RTPL)
RTPL is engaged in the business of apparels and fashion accessories. The Company holds 80.00% of
paid-up capital of RTPL.
JOINT VENTURES:
Holii Accessories Private Limited (HOLII)
HOLII is engaged in the business of retailing fashion accessories such as leather handbags, wallets and
other accessories. The Company holds 50.00% of paid-up capital of HOLII.
Celio Future Fashion Private Limited
(CELIO)
CELIO is engaged in the business of single brand retailing of men’s wear. The Company holds 3.50% of paid-up capital of CELIO. As reported hereinabove, the Company has sold 31.50% shares to Celio International, SA
Clarks Future Footwear Private Limited
(CLARKS)
(formerly known as Clarks Future Footwear Limited) CLARKS is engaged in the business of single brand wholesale and retailing of footwear and accessory and deals in foreign collaboration of various footwear items and accessories such as shoes, boots, sandals, handbags. The Company holds 50.00% of paid-up capital of Clarks.
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 4.900 million
sq ft of retail space across its retail formats. The Company undertook modest
store expansion during the year adding around 0.710 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 26 FLF Annual Report 2014-15 I Style
In India 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. 750.000 Million. However, FLF continued to invest
in fast growing fashion brands by acquiring stakes in brands - Pepperone
(12.00% stake), a leading manufacturer & 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.
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.
REVIEW OF PERFORMANCE:
The Company recorded an increase of 14.22% in revenue from
operations at Rs. 31340.900 Million as compared to Rs. 2749.800 Million in the
previous financial year. The Company reported net profit before tax of Rs.
234.800 Million for the year under review 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 4.900 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.
CONTINGENT
LIABILITIES:
(Rs. In Million)
|
PARTICULARS |
31.03.2015 |
|
Claims against the Company not acknowledged as debts |
33.700 |
|
Corporate Guarantees given |
242.000 |
|
Guarantees given by the bank on behalf of the Company |
3.100 |
|
Total |
278.800 |
INDEX OF CHARGE:
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10575685 |
11/06/2015 |
500,000,000.00 |
LAKSHMI
VILAS BANK LIMITED |
BHARAT
HOUSE, 104, B. S. MARG,, FORT, MUMBAI, MAH INDIA |
C56834302 |
|
2 |
10515637 |
11/08/2014 |
1,000,000,000.00 |
AXIS
BANK LIMITED |
SECOND
FLOOR, E - WING, WADIA INTERNATIONAL CENTER |
C17000860 |
|
3 |
10521114 |
04/07/2014 |
2,000,000,000.00 |
ALLBANK
FINANCE LTD |
ALLAHABAD
BUILDING, 2ND FLOOR, 37, MUMBAI SAMACHA |
C20825303 |
|
4 |
10507466 |
10/06/2014 |
2,000,000,000.00 |
ALLBANK
FINANCE LTD |
ALLAHABAD
BUILDING, 2ND FLOOR, 37, MUMBAI SAMACHA |
C09094954 |
|
5 |
10504726 |
05/06/2014 |
1,500,000,000.00 |
AXIS
BANK LIMITED |
CENTRAL
OFFICE, SECOND FLOOR, BOMBAY DYEING MILL, |
C07871171 |
|
6 |
10504477 |
10/04/2014 |
2,500,000,000.00 |
CENTBANK
FINANCIAL SERVICES LIMITED |
15-16
BAJAJ BHAWAN, 1ST FLOOR, OPP INOX MULTIPLEX, |
C05271127 |
|
7 |
10486709 |
28/03/2014 |
1,500,000,000.00 |
VIJAYA
BANK |
CORPORATE
BANKING BRANCH, MAKER CHAMBERS - IV,, 2 |
C01109487 |
|
8 |
10468782 |
19/12/2013 |
6,000,000,000.00 |
AXIS
BANK LIMITED |
CENTRAL
OFFICE, SECOND FLOOR, BOMBAY DYEING MILL, |
B92961069 |
|
9 |
10459270 |
27/08/2015
* |
10,250,000,000.00 |
BANK OF
INDIA & 5 OTHERS |
MUMBAI
LARGE CORPORATE BRANCH, ORIENTAL BUILDING,, |
C63947410 |
|
10 |
10433740 |
29/05/2013 |
4,500,000,000.00 |
AXIS
BANK LIMITED |
CENTRAL
OFFICE, SECOND FLOOR, BOMBAY DYEING MILL, |
B78254984 |
*Date of modification Charges
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 30TH JUNE,
2015
(Rs.
In Million)
|
Sr. No |
Particulars |
Standalone |
|||
|
QUARTER ENDED |
|||||
|
30.06.2015 |
|||||
|
Unaudited |
|||||
|
1 |
Income From
Operations |
|
|||
|
|
a. Net Sales/ Income from Operations (Net of Excise Duty) |
6843.400 |
|||
|
|
b. Other Operating Income |
175.800 |
|||
|
|
Total Income from
Operations (Net) |
7019.200 |
|||
|
2 |
Expenditure |
|
|||
|
|
a. Cost of material Consumed |
132.400 |
|||
|
|
b. Purchase of Stock-in trade |
4429.800 |
|||
|
|
c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade |
(323.600) |
|||
|
|
d. Employees Benefit Expenses |
447.900 |
|||
|
|
e. Depreciation and Amortisation Expenses |
361.800 |
|||
|
|
f. Rent |
904.300 |
|||
|
|
g. Other expenses |
796.200 |
|||
|
|
Total Expenses |
6748.800 |
|||
|
3 |
Profit from Operations
before Other Income, Interest and Exceptional Items |
270.400 |
|||
|
4 |
Other Income |
123.200 |
|||
|
5 |
Profit from
ordinary activities before finance cost & exceptional items |
393.600 |
|||
|
6 |
Finance Costs |
356.900 |
|||
|
7 |
Profit from ordinary
activities after finance costs & exceptional items |
36.700 |
|||
|
8 |
Exceptional items |
0.000 |
|||
|
9 |
Profit from
ordinary activities before tax |
36.700 |
|||
|
10 |
Tax Expense |
11.900 |
|||
|
11 |
Net Profit from
ordinary activity after tax |
24.800 |
|||
|
12 |
Extraordinary Items |
0.000 |
|||
|
13 |
Net Profit After
Tax |
24.800 |
|||
|
14 |
Paid-up equity share capital (face value of Rs.2 per share) |
379.000 |
|||
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
0.000 |
|||
|
16 |
Earnings Per Share (of Rs.10 each) (not annualized) |
|
|||
|
|
Basic EPS |
0.13 |
|||
|
|
Diluted EPS |
0.13 |
|||
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|||
|
17 |
Public Shareholding |
|
|||
|
|
- No. of shares |
79949246 |
|||
|
|
- Percentage of shareholding |
42.19 |
|||
|
18 |
Promoter &
Promoter Group Shareholding |
|
|||
|
|
a)
Pledged/Encumbered |
|
|||
|
|
- No. of shares |
60065676 |
|||
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
54.82 |
|||
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
31.69 |
|||
|
|
b) Non-encumbered |
|
|||
|
|
- No. of shares |
49503545 |
|||
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
45.18 |
|||
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
26.12 |
|||
|
B.
Investor Complaints |
|
|
|||
|
Pending at the beginning of the quarter |
NIL |
|
|||
|
Receiving during the quarter |
1 |
|
|||
|
Disposed of during the quarter |
1 |
|
|||
|
Remaining unreserved at the end of the quarter |
NIL |
|
|||
Note:
- The above results were reviewed by the Audit Committee and were thereafter approved by the Board of Directors of the company at its meeting held on August 4, 2015. The same have been subjected to ‘Limited Review’ by the Statutory Auditors.
- During the quarter under review, 32,96,700 Equity Shares of the company were issued and allotted to a promoter group company, at a price of Rs. 91 per Equity Share(including share premium of Rs. 89 per Equity share) upon conversaion of 32,96,700 compulsory.
Convertible Debentures (CCDs) on April 01, 2015; of Rs. 89 per Equity Share were issued and allotted under FLFL Employees’
Stock Option Scheme - 2013 to the eligible employee of the company on May 20, 2015. Consequently the issued and paid up Share Capital of the company as on June 30, 2015 stands increased by Rs. 6.600 Million.
- During the quarter ended June 15, the company has opened 3 aLL am in. 1 Planet Sports, 12 Indus League stores and closed 4 Planet sports, 1 Brand Factory, 1 aLL, 1 Lee Cooper and 6 Indus League stores.
- Figures of the previous periods have been regrouped / reclassified wherever necessary.
- The company has only one business segment i.e. “Fashion”.
PRESS
RELEASES
Future Lifestyle Fashions acquires 12% stake in Unico Retail
Kishore Biyani-led Future Lifestyle Fashions today said it has acquired 12 % stake in Unico Retail for an undisclosed sum.
Unico Retail sells handbags, belts and wallets under the brand 'Peperone'.
"The company has acquired 12 % stake in Unico Retail Private Limited, a
company engaged in the business of handbags, belts and wallets under the brand
'Peperone' in India," Future Lifestyle Fashion said in a BSE filing.
Last year, Future Lifestyle Fashion divested minority stakes in ethnic wear
firm Biba Apparels and designer Anita Dongre-owned and for Rs 4500.000 Million.
While Future Lifestyle Fashion has exited two investments, it also picked up
minority stakes in three companies. These are footwear firms Tresmode and
Famozi shoes and Mineral, a designer label from Priyadarshini Rao.
Premji's fund buys
10% in Biyani's fashion firm
In yet another bet on retail sector, Premji Invest, the family office of billionaire IT tycoon Azim Premji, will pick up 10% stake in Kishore Biyani co-promoted Future Lifestyle Fashions(FLF) for around Rs 1250.000 Million.
FLF today said that it will issue 15.500 million shares to PI Opportunities Fund-1 at Rs 80.500 Million apiece on a preferential basis, which is 16% discount to today's close of Rs 93.400 Million
Future group, which owns 56.7% stake in FLF, will pick up 3.100 million shares and 18.600 Million compulsorily convertible debentures at Rs 80.500 Million apiece through its arm Ryka Commercial Ventures. Together, it will invest Rs 175.000 Million in the company. Kishore Biyani did not respond to calls on the subject.
Premji Invest earlier picked up stakes in Trent, Fabindia and Koutons. It recently invested $50.000 million in e-commerce portal Myntra.com.
FLF shares ended the day at Rs 93.4, which was 3.21% down from the previous close.
Biyani bets big on
small lifestyle companies
One-and-a-half years after he sold his department store chain Pantaloons to the Aditya Birla Group, homegrown retail king Kishore Biyani is making several small yet strategic moves to strengthen his lifestyle and apparel portfolio by acquiring stakes in apparel and shoe companies.
After his company, Future Lifestyle Fashions, newly carved out from the fashion
businesses of Future Ventures and Future Retail, sold stakes worth Rs 4500.000
Million that it held in two apparel firms - Indian wear brand Biba Apparels and
western wear brand AND - the company has picked up stakes in two footwear
firms, Tresmode and Famozi Shoes, and in a designer wear chain called Mineral.
Future Lifestyle Fashions has also bought 27.5 per cent stake in
Resource World Exim, a company that sells women's fashion apparel under the
brand, Desi Belle, for an undisclosed sum. Biyani is further believed to be in
talks with Delhi-based department store chain Biglife Ritu Wears,
Bangalore-based garment chain Coupon and Delhi-based premium apparel brand
Giovani Fashion for buying a stake.
RETAIL JOURNEY
|
1987 |
Starts Manz Wear to make trousers under Pantaloon brand |
|
1991 |
Goes public under the brand Pantaloon Fashions |
|
2001 |
Sets up first Big Bazaar in Kolkata |
|
2008 |
Lists non-banking arm Future Capital |
|
2011 |
Lists Future Ventures |
|
2011 |
Debt soars to over Rs 7,8500.000 Million |
|
2012 |
Sells fashion format Pantaloons to Aditya Birla Group |
|
2012 |
Signs deals with Industrial Investment Trust to sell life
insurance |
|
2012 |
Sells Future Capital to Warbug Pincus |
|
2013 |
Sells stake in general insurance business to L&T |
|
2013 |
Lists Future Lifestyle Fashions |
|
2013 |
Debt falls to below Rs 5,0000.000 Million |
Though Biyani does not comment on the subject, he has been quoted in the media
about his plans. "We are exiting mature investments. The investments in Biba
and and were both made more than five years ago. We exit investments when they
become large," Biyani told Press Trust of India recently. "These new
investments in Mineral, Tresmode and Framozi will mature in four to five years.
By his own admission, Biyani delt in everything from insurance to private
equity to non-banking financial services besides retail, but downsized later.
As debt mounted to as much as Rs 78500.000 Million in 2011, he was quick to
sell businesses which he considered non-core. He sold stakes in his NBFC
(non-banking financial company), insurance ventures and fashion format
Pantaloons to deleverage.
"I have learnt to detach myself from whatever I have built. We will divest
stakes in ventures which give us strength," Biyani had told this
correspondent earlier.
Apart from reducing the debt ( today his listed entity, Future Retail, has less
than Rs 50000.000 Million of debt on its books), Biyani has used the cash to
acquire stakes in new brands.
Retailers hobble
online as e-commerce firms race ahead
The head of Future Group, one of India's largest and most established retailers, admits he can't keep up with web sites like Snapdeal and Flipkart when it comes to spending money to entice shoppers to buy online.
Private investors have poured $2.3 billion into India's e-commerce companies so far this year, according to consulting firm Technopak, giving them financial firepower to overwhelm shoppers with bargains and deals that brick-and-mortar retailers like Future Group, which runs a host of chains including Future Retail Ltd (FURE.NS) and Future Lifestyle Fashions (FLFL.NS), cannot match.
"It's all about money. The e-commerce guys have money to experiment - I don't have this kind of money to blow," Kishore Biyani, who pioneered modern retail in India and is chief executive of the Future Group, told Reuters in an interview.
In an attempt to match up, traditional retailers are forging partnerships with well-funded websites such as Flipkart.com, Amazon.com Inc (AMZN.O) and Snapdeal to put their wares on the web without investing heavily in their own online infrastructure.
This tentative approach to e-commerce, however, leaves traditional retailers vulnerable to being completely overtaken by their better-funded online rivals in a country where a rapidly expanding middle class is doing more and more shopping on the web.
In October, Future Group tied up with Amazon's Indian arm to sell its brands online. A month earlier, electronics retailer Croma, owned by the Tata Group, struck a similar arrangement with Snapdeal.
According to Technopak, organized retail in India is expected to grow to $182 billion in 2020 from the current $46 billion. E-tailing is forecast to expand at a faster clip, to $32 billion by 2020 from $2.3 billion now.
India's protectionist government policies have long shielded established retailers from competition. As a result, they never felt the need to invest in state-of-the-art technology, said Bhavit Desai, a U.S.-based strategy consultant who has worked with companies such as Walmart International, the global unit of Wal-mart Stores Inc (WMT.N), and Target Corp (TGT.N).
"Many huge players in the market have invested very little in technology and have been followers at best," Desai said.
MOM-AND-POP TO ONLINE SALES
In 2012, then Prime Minister Manmohan Singh's government opened the retail industry to foreign operators, allowing companies such as Wal-Mart and Tesco Plc (TSCO.L) to own majority stakes in Indian chains for the first time.
But the government left it to individual states to decide whether to let in foreign retailers. Few have stepped up, and the big foreign chains that might have shared their online expertise with India's stores are largely absent.
Instead, local online marketplaces have proliferated, backed by billions of dollars coming in primarily from abroad. Last month's $627 million investment by Japan's SoftBank Corp in Snapdeal illustrated a widening gap. The portal has also attracted funds from eBay Inc (EBAY.O) and billionaire Ratan Tata.
Flipkart.com raised $1 billion earlier this year, in a round of funding from Singapore sovereign wealth fund GIC, along with existing investors Tiger Global Management LLC and South African media company Naspers Ltd.
That leaves traditional Indian retailers vulnerable, say industry advisers. Online marketplaces don't need to pay high commercial rents or build stores to serve India's 1.3 billion people, and they're soaking up outside investments and expertise from their international backers that can help them move faster to profit.
Organised retail is still developing in India. More than 90 percent of shopping is done at informal roadside shacks and in bazaars. These small shops are seen as the lifeblood of the economy and successive governments have protected them.
But the same policies have also shielded much larger players like Shoppers Stop Ltd (SHOP.NS), Future Retail and others. At the same time, online stores are racing ahead, modernising the retail industry at a pace that traditional chains cannot match.
"It is exactly like what happened in telecoms," said Harminder Sahni, managing director of Wazir Advisors. "In India, we never took landlines to every single home - mobiles came in and leapfrogged that."
Amazon.in and Future
Group in strategic partnership
Future Lifestyle Fashions Ltd has informed BSE regarding a Press Release dated October 13, 2014 titled "Amazon.in and Future Group enter into a strategic partnership". Amazon India and Future Group today announced a strategic alliance that will leverage the strong product, knowledge, extensive brand portfolio and sourcing base of Future Group, and the economic platform, customer base and reach of Amazon.
Future Lifestyle's
intimation of dinvestment
Future Lifestyle Fashions Limited (FLFL) has executed definitive documents with Celio International SA, Belgium for divestment of its 31.5% stake in Celio Future Fashion Limited (CFFL). Upon completion in terms of the documents, FLFL will hold 3.5% stake in CFFL.
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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the
property or assets of the subject are derived from criminal conduct or a
prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] 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. 65.55 |
|
UK Pound |
1 |
Rs. 99.17 |
|
Euro |
1 |
Rs. 73.08 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
HNA |
|
|
|
|
Report Prepared
by : |
SYL |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
50 |
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.