MIRA INFORM REPORT

 

 

Report No. :

341829

Report Date :

21.09.2015

 

IDENTIFICATION DETAILS

 

Name :

FUTURE CONSUMER ENTERPRISE LIMITED (W.E.F.30.09.2013)

 

 

Formally Known as:

FUTURE VENTURES INDIA LIMITED

 

 

Registered Office :

Knowledge House, Shyam Nagar, Off Jogeshwari – Vikhroli Link Road, Jogeshwari (East), Mumbai – 400060, Maharashtra

Tel. No.:

91-22-30841300

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

10.07.1996

 

 

Com. Reg. No.:

11-192090

 

 

Capital Investment / Paid-up Capital :

Rs.9942.864 Million

 

 

CIN No.:

[Company Identification No.]

L52602MH1996PLC192090

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject  is engaged in Branding, Selling and Distribution of “Consumer   products”

 

 

No. of Employees :

Information declined by the management 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (44)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Future Consumer Enterprises Limited (FCEL), erstwhile Future Ventures India Ltd, is a part of the “Future Group” and operates retail format as well as distributes private label FMCG brands of the future group.

 

The rating on company drive strength from the experienced and professionally managed promoter group of Future Consumer Enterprise Ltd (FCEL) as well as its presence across the fast moving consumer goods (FMCG) value.

 

Rating, further takes consideration on Future Group partners with “Mibelle Group”, a Swiss major to bring personal care products in India. Mibelle Group serves the three business units Personal Care, Home Care and Nutrition, which will give diversified product portfolio to the company.

 

However, rating are constrained due to the low profitability marked by losses in FY-15, increase in debt leading to deterioration of capital structure and intense competition from organized and unorganized sector players.

 

However, trade relations are fair. Business is active. Payments are reported to be slow but correct.

 

In view of strong brand image, the company can be considered for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term Bank Facilities = A-

Rating Explanation

Adequate degree of safety and low credit risk.

Date

April, 2015

 

Rating Agency Name

CARE

Rating

Short term Bank Facilities = A1

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

April, 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 DENIED

 

MANAGEMENT NON COOPERATIVE (91-22-25946970/ 22-25963838)

 

 

LOCATIONS

 

Registered Office :

Knowledge House, Shyam Nagar, Off Jogeshwari – Vikhroli Link Road, Jogeshwari (East), Mumbai – 400060, Maharashtra, India

Tel. No.:

91-22-30841300

Fax No.:

91-22-61995391

E-Mail :

investor.care@futureconsumer.in

Website :

www.futureconsumer.in

 

 

Corporate Office:

247 Park, Tower ‘C’,LBS Marg, Vikhroli (West), Mumbai - 400083, Maharashtra, India

Tel. No.:

91-22-6119 0000

Fax No.:

91-22-6199 5391

E-Mail :

investor.care@futureconsumer.in

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Ashni Biyani Kishore

Designation :

Whole-Time Director

Address :

304, Jeevan Vihar, Manav Mandir Road, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

25.12.1984

Qualification :

Graduate In Textile Designing

Date of Appointment :

15.11.2014

DIN No.:

00058775

 

 

Name :

Krishan Kant Rathi

Designation :

Director

Address :

B/72, Dakshina Park, Plot No.15,N.S.Road, 10th JVPD Scheme, Mumbai - 400049, Maharashtra, India

Date of Birth/Age :

30.12.1961

Qualification :

Bachelor Of Commerce, Chartered Accountant,

Company Secretary

Date of Appointment :

15.11.2014

DIN No.:

15.11.2014

 

 

Name :

Ghyanendra Nath Bajpai

Designation :

Director

Address :

131, Shaan Apartments, K.D. Marg, Prabhadevi, Mumbai - 400028, Maharashtra, India

Date of Appointment :

20.02.2008

DIN No.:

00946138

 

 

Name :

Frederic De Mevius

Designation :

Director

Address :

La-Falize, Rhisnes 1, La Bruyere, 5080, Belgium

Date of Appointment :

09.11.2012

DIN No.:

03359921

 

 

Name :

Vibha Paul Rishi

Designation :

Director

Address :

812 Aralias, 12th Floor, Block - 8, Golf Link, DLF City - V, Gurgaon - 122002, Haryana, India

Date of Appointment :

14.02.2012

DIN No.:

05180796

 

 

KEY EXECUTIVES

 

Name :

Manoj Kumar Saraf

Designation :

Chief Financial Officer

Address :

A-1, Vikas Chsl,, 31, Ramchandra Lane, Mald West, Mumbai - 400064, Maharashtra, India

Date of Appointment :

02.01.2015

PAN No:

AARPS8346J

 

 

Name :

Manoj Prataprai Gagvani

Designation :

Company Secretary and Head-Legal

Address :

A/3a, Viceroy Court, Thakur Village, Kandivali East, Mumbai - 400101, Maharashtra, India

Date of Appointment :

03.06.2008

PAN No:

AEAPG5724P

 

 

SHAREHOLDING PATTERN

 

AS ON 30.06.2015

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

720530543

43.48

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

166788

0.01

http://www.bseindia.com/include/images/clear.gifOthers

166788

0.01

http://www.bseindia.com/include/images/clear.gifSub Total

720697331

43.49

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

720697331

43.49

(B) Public Shareholding

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

13290

0.00

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

519367

0.03

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

306592815

18.50

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

465000

0.03

http://www.bseindia.com/include/images/clear.gifOthers

465000

0.03

http://www.bseindia.com/include/images/clear.gifSub Total

307590472

18.56

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

424633317

25.62

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Million

48484518

2.93

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

132678654

8.01

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

23059746

1.39

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

5604447

0.34

http://www.bseindia.com/include/images/clear.gifClearing Members

9988329

0.60

http://www.bseindia.com/include/images/clear.gifOthers

4786506

0.29

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

255464

0.02

http://www.bseindia.com/include/images/clear.gifTrusts

2425000

0.15

http://www.bseindia.com/include/images/clear.gifSub Total

628856235

37.95

Total Public shareholding (B)

936446707

56.51

Total (A)+(B)

1657144038

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

1657144038

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 (*)

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

 

 

 

 

 

1

Future Capital Investment Private Limited

8,41,06,029

5.08

26448740

31.45

1.60

5.08

2

Future Retail Limited (Formerly Pantaloon Retail (India) Limited)

15,00,00,000

9.05

0

0.00

0.00

9.05

3

PIL Industries Limited

13,13,04,747

7.92

124377845

94.72

7.51

7.92

4

Central Departmental Stores Private Limited

4,67,94,980

2.82

46790000

99.99

2.82

2.82

5

Central Departmental Stores Private Limited

4,60,00,000

2.78

46000000

100.00

2.78

2.78

6

Central Departmental Stores Private Limited

30,43,720

0.18

940000

30.88

0.06

0.18

7

Future Corporate Resources Limited

8,02,25,257

4.84

53400000

66.56

3.22

4.84

8

Gargi Business Ventures Private Limited (Formerly Gargi Developers Private Limited)

5,30,00,000

3.20

53000000

100.00

3.20

3.20

9

Gargi Business Ventures Private Limited (Formerly Gargi Developers Private Limited)

4,81,27,406

2.90

48000000

99.74

2.90

2.90

10

Gargi Business Ventures Private Limited (Formerly Gargi Developers Private Limited)

2,77,51,260

1.67

27700000

99.82

1.67

1.67

11

RYKA Commercial Ventures Private Limited

3,33,72,341

2.01

0

0.00

0.00

2.01

12

Tirumal Trading and Investment Consultants Private Limited

1,48,94,197

0.90

0

0.00

0.00

0.90

13

Arlette Infrastruture Private Limited

19,10,606

0.12

0

0.00

0.00

0.12

14

Avni Kishorekumar Biyani

99,619

0.01

0

0.00

0.00

0.01

15

Ashni Kishore Biyani

67,169

0.00

0

0.00

0.00

0.00

 

Total

72,06,97,331

43.49

426656585

59.20

25.75

43.49

 

 

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

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

1

Arisaig Partners (Asia) Private Limited A/C Arisaig India Fund Limited

152043000

9.18

9.18

2

BNP Paribas Arbitrage

140753144

8.49

8.49

3

Bennett , Coleman And Company Limited

121641615

7.34

7.34

4

Aaradhak Commercial Ventures Private Limited

81548254

4.92

4.92

5

Mohini Resources Private Limited

72028254

4.35

4.35

6

Godrej Agrovet Limited

30256870

1.83

1.83

7

Antariksha Agro Farms Private Limited

21596878

1.30

1.30

8

Santosh Desai

20183786

1.22

1.22

 

Total

640051801

38.62

38.62

 

 

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

Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital

1

Arisaig Partners (Asia) Private Limited A/C Arisaig India Fund Limited

152043000

9.18

9.18

2

BNP Paribas Arbitrage

140753144

8.49

8.49

3

Bennett , Coleman And Company Limited

121641615

7.34

7.34

 

Total

414437759

25.01

25.01

 

Details of Locked-in Shares

 

Sl. No.

Name of the Shareholder

No. of Shares

Locked-in Shares as % of
Total No. of Shares

1

Future Capital Investment Private Limited

43248740

2.61

2

Future Retail Limited (Formerly Pantaloon Retail India Limited)

150000000

9.05

3

Pil Industries Limited

122000000

7.36

4

Anamudi Real Estates LLP

15661497

0.95

5

Godrej Agrovet Limited

30256870

1.83

 

 

BUSINESS DETAILS

 

Line of Business :

Subject  is engaged in Branding, Selling and Distribution of “Consumer  products”

 

 

Products/ Services :
  • Branding,
  • FMCG,
  • Food and Processed Food Products etc.

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the management 

 

 

Bankers :
  • Allahabad Bank
  • Corporation Bank
  • IDBI Bank Limited
  • Kotak Mahindra Bank Limited
  • Yes Bank Limited

 

 

Facilities :

(Rs. In Million)

 

SECURED LOAN

As on

31.03.2015

As on

31.03.2014

LONG TERM BORROWING

 

 

Term Loan From Banks

1693.125

0.000

1000, 11.95% Redeemable Non-convertible Debentures of Rs.1.000 Million each

1000.000

0.000

SHORT TERM BORROWING

 

 

Loans Repayable on Demand From Banks

1321.084

0.000

Other Loans From Bank

1424.672

103.656

Total

5438.881

103.656

 

Notes:

 

LONG TERM BORROWING:

 

Term Loan from banks are secured by:

 

a) First pari-passu charge on movable fixed assets and second charge on current assets of the company,

b) Pledge of investment in shares of The Nilgiri Dairy Farm Private Limited,

c) Personal Guarantee of Mr. Kishore Biyani, a director

d) First charge on Movable and Immovable fixed assets of the proposed Flour/Rice/Spice Processing Units at Tumkur,

e) Pledge of shares of listed entities Future Retail Limited and/or Future Consumer Enterprise Limited and/or Future Lifestyle Fashions Limited

f) Subservient charge over tangible assets of other companies. Of the above,

- Rs.474.375 Million is repayable in 46 semi-annual installments beginning from October 2015 and carry an interest of 12% p.a.

- Rs.1218.750 Million is repayable in 70 quarterly installments beginning from December 2015 and carry an interest of 12% p.a.

 

Redeemable Non-convertible Debentures are secured by:

 Exclusive First Charge on specifi c fi xed assets of thecompany and/or its subsidiaries to the extent of 1.25 times of outstanding borrowing and its interest thereon and is repayable as follows :

Series A of Rs.400.000 Million repayable after 2 years in March 2017 and Series B of Rs.600.000 Million repayable after 3 years in March 2018. Interest is payable quarterly from date of allotment.

The above debentures are privately place with mutual funds and are listed in Wholesale Debt Segment of BSE

Limited.

 

SHORT TERM BORROWING:

 

Working Capital Loan from Banks is secured by:

 

a) First and exclusive charge on all existing and future current assets of the Company

b) Subservient Charge on Tangible Movable Fixed Assets and Current Assets both present and future of the Company

c) Personal Guarantee of Mr. Kishore Biyani, a director and Mr. Vijay Biyani.

The Working capital loan of ` 10,000 lakhs is repayable at the end of 90 days in June 2015 and other credit facilities are repayable on demand. The rate of Interest ranges from 10.5% to 13.5% p.a.

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary Companies:
  • Aadhaar Wholesale Trading and Distribution Limited
  • Future Consumer Products Limited
  • Future Food and Products Limited
  • Star and Sitara Wellness Limited
  • Amar Chitra Katha Private Limited and its subsidiaries:

                                 i.        IBH Books and Magazines Distributors Limited

                                ii.        ACK Media Direct Limited

                               iii.        Karadi Tales Company Private Limited

                               iv.        Karadi Tales Company Private Limited

                                v.        Ideas Box Entertainment Limited

  • Express Retail Services Private Limited
  • Future Personal Care and Hygiene Private Limited (Formerly known as ACK Eaglemoss Collectibles Publishing Private Limited)
  • Aussee Oats Milling (Private) Limited (w.e.f. 16.09.2014)
  • The Nilgiri Dairy Farm Private Limited (w.e.f. 20.11.2014)

i.      Appu Nutritions Private Limited

ii.     Nilgiri’s Mechanised Bakery Private Limited

iii.    Nilgiris Franchise Private Limited

  • Sublime Foods Private Limited (w.e.f. 18.02.2015)
  • Integrated Food Park Private Limited (Associate during the period 24.07.2014 to 05.02.2015)

 

 

Holding Company:
  • Future consumer enterprise Limited

 

 

Associate:
  • Sarjena Foods Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5650000000

Equity Shares

Rs.6/- each

Rs.33900.000 Million

1670000000

Equity Shares  (Unclassified Shares)

Rs.10/- each

Rs.16700.000 Million

 

Total

 

Rs.50600.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1657144038

Equity Shares

Rs.6/- each

Rs.9942.864 Million

 

 

 

 

 

 

Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period

 

 

Particulars

31.03.2015

 

No of Shares

Rs. In Million

No. of Equity shares at the beginning of the year

1597976671

9587.860

Add : Allotment Pursuant to exercise of stock options granted under FVIL Employees Stock Option Plan - 2011

13249000

79.494

Add : Shares issued without payment being received in cash

45918367

275.510

Total

1657144038

9942.864

 

 

 Details of Shareholders holding more than 5% shares in the Company.

 

Particulars

31.03.2015

 

No of Shares

% of

Holding

Arisaig Partners (Asia) Pte. Limited. A/c.

152043000

9.18

Future Retail Limited

150000000

9.05

BNP Paribus Arbitrage

140753144

8.49

PIL Industries Limited

129804747

7.83

Gargi Developers Private Limited

128878666

7.78

Bennett, Coleman and Company Limited

121641615

7.34

Central Departmental Stores Private Limited

95838700

5.78

Future Capital Investment Private Limited

84106029

5.08

Aaradhak Commercial Ventures Private Limited

81548254

4.92

 

 

Terms/Rights attached to Equity Shares:

 

 

1,006,000 (Previous Year- 15,785,000 equity shares) were reserved for issuance towards outstanding Employee Stock Options granted. (Refer Note 29)

 

 

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

9942.864

9587.860

9587.860

(b) Reserves & Surplus

(689.857)

(55.474)

(161.726)

(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)

9253.007

9532.386

9426.134

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

2693.125

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

37.345

16.004

4.660

Total Non-current Liabilities (3)

2730.470

16.004

4.660

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2745.756

103.656

7.698

(b) Trade payables

654.867

476.501

483.423

(c) Other current liabilities

110.016

22.432

173.553

(d) Short-term provisions

25.139

17.341

23.382

Total Current Liabilities (4)

3535.778

619.930

688.056

 

 

 

 

TOTAL

15519.255

10168.320

10118.850

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

433.481

302.407

197.906

(ii) Intangible Assets

2633.508

2557.661

2418.147

(iii) Capital work-in-progress

3.124

0.000

0.481

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

6287.982

3327.342

4067.457

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

263.508

141.593

108.328

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

9621.603

6329.003

6792.319

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

1000.000

1238.416

1040.143

(b) Inventories

811.273

260.418

295.799

(c) Trade receivables

1249.338

247.341

137.170

(d) Cash and cash equivalents

307.144

51.455

34.309

(e) Short-term loans and advances

2429.948

1957.619

1780.744

(f) Other current assets

99.949

84.068

38.366

Total Current Assets

5897.652

3839.317

3326.531

 

 

 

 

TOTAL

15519.255

10168.320

10118.850

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

10825.539

3428.568

3091.155

 

Other Income

365.694

1210.037

489.237

 

TOTAL (A)

11191.233

4638.605

3580.392

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

142.727

0.000

118.658

 

Purchases of Stock-in-Trade

9496.759

2895.700

2712.139

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

44.057

92.871

(249.952)

 

Employees benefits expense

597.219

394.115

289.932

 

 Exceptional items

251.400

0.000 

0.000

 

Other expenses

970.397

692.293

642.438

 

TOTAL (B)

11502.559

4074.979

3513.215

 

 

 

 

 

Less

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

(311.326)

563.626

67.177

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

298.706

6.403

20.096

 

 

 

 

 

 

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

(610.032)

557.223

47.081

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

327.459

253.133

157.580

 

 

 

 

 

 

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

(937.491)

304.090

(110.499)

 

 

 

 

 

Less

TAX (H)

0.000 

0.000

3.982

 

 

 

 

 

 

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

(937.491)

304.090

(114.481)

 

 

 

 

 

 

IMPORTS

 

 

 

 

Traded Goods

265.373

 

2.723

 

TOTAL IMPORTS

265.373

0.000

2.723

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(0.58)

0.19

(0.07)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

42.669

NA

NA

Cash generated from operation

NA

NA

NA

Net Cash flow from /(used in) operating activities

(2146.490)

(977.609)

(353.321)

 

 

Particulars

 

 

 

30.06.2015

(Unaudited)

 

 

 

1st  Quarter

Net Sales

 

 

2637.850

Total Expenditure

 

 

2708.150

PBIDT (Excl OI)

 

 

(70.300)

Other Income

 

 

81.760

Operating Profit

 

 

11.460

Interest

 

 

143.430

Exceptional Items

 

 

NA

PBDT

 

 

(131.970)

Depreciation

 

 

78.900

Profit Before Tax

 

 

(210.870)

Tax

 

 

NA

Provisions and contingencies

 

 

NA

Profit After Tax

 

 

(210.870)

Extraordinary Items

 

 

NA

Prior Period Expenses

 

 

NA

Other Adjustments

 

 

NA

Net Profit

 

 

(210.870)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

(8.66)

8.87

(3.70)

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

(2.88)

16.44

2.17

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 (10.16)

4.45

(1.83)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.10)

0.03

(0.01)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.59

0.01

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.67

6.19

4.83

 

 

STOCK PRICES

 

Face Value

Rs.6.00/-

Market Value

Rs.15.90/-

 

 

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

9587.860

9587.860

9942.864

Reserves & Surplus

(161.726)

(55.474)

(689.857)

Net worth

9426.134

9532.386

9253.007

 

 

 

 

long-term borrowings

0.000

0.000

2693.125

Short term borrowings

7.698

103.656

2745.756

Total borrowings

7.698

103.656

5481.550

Debt/Equity ratio

0.001

0.011

0.592

 

 

 

 

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)

Sales

3091.155

3428.568

10825.539

 

 

10.915

215.745

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

3091.155

3428.568

10825.539

Profit/ (Loss)

(114.481)

304.090

(937.491)

 

(3.70%)

8.87%

(8.66%)

 

 

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

No

8

Designation of contact person

No

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

Yes

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

 

 

 

 

CORPORATE INFORMATION:

 

The Company was incorporated on July 10, 1996, under the name “Subhikshith Finance and Investments Limited”. The name of the Company was changed to “Future Ventures India Private Limited” with effect from 9th August, 2007 and became a Public Limited Company with effect from September 7, 2007 as “Future Ventures India Limited”.

 

The shares of the Company are listed on the National Stock Exchange of India Limited and BSE Limited since May 10, 2011. Pursuant to a composite scheme of Amalgamation and Arrangement coming into effect during the fi nancial year 2012-13, the Company has become an operating entity from being a Non-Banking Finance Company “(NBFC”) since it was unable to satisfy the prescribed norms of assets / income pattern as required under the Reserve Bank of India regulations. In view of the same, the Company has made an application to Reserve Bank of India (“RBI”) seeking de-registration as NBFC on May 30, 2013.

 

The name of the Company was changed to Future Consumer Enterprise Limited w.e.f. September 30, 2013. Consequent to the aforesaid, the Company is now engaged in the business of Sourcing, Branding, Marketing and Distribution of FMCG, Food and Processed Food Products in Urban and Rural India.

 

 

BUSINESS OPERATIONS:

 

Future Consumer Enterprise Limited has emerged as an integrated food company having businesses from farm to fork. The Company has operations from sourcing, processing, branding and distribution.

 

During the year, the Company expanded its food portfolio by extending its brands to new categories like fruits and vegetables, canola and rice bran oils, frozen and processed food products. The Company also further spread its wings in the Southern part of India by acquiring almost 100% stake in the 100 year of well-established brand ‘Nilgiris 1905’. This acquisition enabled an addition of 135 stores to the convenience store network, which has been expanded to 151 stores in fiscal 2014-15.

 

With the focus on integrated play, the Company has, during the year, consolidated its businesses by merging one of its wholly-owned subsidiary, Future Agrovet Limited which predominantly has been engaged into agro-sourcing operations. The Company has further acquired balance 30% stake of Aadhaar Wholesale Trading and Distribution Limited, the rural distribution format, pursuant to which Aadhaar Wholesale Trading and Distribution Limited is now a wholly-owned subsidiary of the Company.

 

With focus on enhancing core values for the business, the Company is moving towards withdrawal from non-core activities. As a step towards the same, the Company has decided to discontinue the business operations of saloon and spa services undertaken by its wholly-owned subsidiary Star and Sitara Wellness Limited.

 

The Company continues to focus on food and FMCG business by spreading its distribution network though its chain of convenience stores, creating and investing in brands and exploring options to undertake new activities. As a step towards the same, the Company has entered into the business of procuring and distribution of fruits and vegetables, ready-to-eat products developed from the Food Park, which has become operational during the year. The Company also has plans to enter into manufacturing activities by setting-up of flour mill and spice mill at the Food Park. Along with growing and developing its own Portfolio of brands in the food space, the Company also partnered with niche players operating in product categories like oats, break-fast cereals, sauces, pastes etc. under joint venture arrangements. These initiatives are expected to yield results in financial year 2015-16.

 

The Company has recorded total income of Rs.11191.200 Million and EBITDA loss of Rs.59.900 Million in the current financial year as against a total income of Rs.4638.600 Million and EBITDA loss of Rs.327.100 Million in the previous year. EBITDA loss of Rs.327.100 Million in the previous year excludes one time gain on sale of investment of Rs.890.700 Million to make it comparable.

 

For the financial year 2014-15, no appropriation is proposed to be made towards Reserves.

 

 

FUTURE OUTLOOK:

 

Innovation with speed and imagination is the concept which Company believes into creating, launching and marketing new products and brands and extends in improving shopping process, range of products with focus on improving the customer’s overall experience.  As Indian consumer has been increasing their aspirations and desires for consumption over the past years, their appetite to consume new and qualitative products in the home market has significantly increased.

 

India is the world’s second largest producer of food, next to China, and has the potential of being the biggest within the food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits and Vegetables, Fisheries, Milk and Milk Products, Meat and Poultry, Packaged/Convenience Foods, Alcoholic Beverages and Soft Drinks and Grains which are important sub-sectors of the food processing industry.

 

The broad-based decline in retail inflation since the last quarter of 2014, depressed commodity prices and the Government’s plan to step up infrastructure investments and focus on improving the ease of doing business with the concept of “Make in India” have improved the prospects for growth in the year 2015-16.

 

ECONOMY OVERVIEW:

 

India has systematically evolved from a closed door economy to an open one, since the beginning of economic reforms in the Country in 1991. These reforms have had a far-reaching impact and have helped India substantially realize its significant growth potential. Currently, the Indian economy is characterized by the Government’s liberalized foreign investment and trade policy with a significant role being played by de-regulation and the contribution of the private sector

 

India now ranks as the 10th largest economy in the world and the 3rd largest in terms of GDP on its purchasing power parity (PPP). The Country’s economy has crossed two trillion-dollar mark with a largely self-sufficient agricultural sector, a diversified industrial base and as table financial and services sector.

 

India continues to benefit from the growing domestic demand from a young population, whose consumption is driving the expansion of the middle class. By 2025, India is expected to become the fifth-largest consuming class Country. An emerging rural consumer base is also contributing to this demand. Compared with other countries, India has been and continues to be relatively insulated from external shocks due to its strong domestic consumption pattern and savings culture. The Country has one of the highest savings rate in the world. As per The World Bank Data, India outperforms various developed nations with an estimated savings rate (as a percentage of GDP) at 31.8% in 2013, compared with a world average of 21.4%.

 

The change in the Central Government last year has heralded a new hope of economic reforms and faster growth. With the focus on programs like ‘Make In  India’, ‘Swach Bharat’, ‘Smart Cities’, ‘Housing for all by 2022’, ‘24*7 Power for all’ etc. and new impetus to infrastructure development, India is expected to achieve not only higher economic growth and job creation but also better standard of living for its masses in both urban and rural areas. This certainly will propel consumption to new level and we could see an economy thriving on twin engines of growth namely investment and consumption. Though first year of the Government has not seen dramatic changes on the ground, the various steps taken and in the pipeline continues to ignite hope of “Acche Din”.

 

 

BUSINESS AND PERFORMANCE OVERVIEW:

 

Future Consumer Enterprise Limited has evolved into an integrated food company with operations from sourcing, manufacturing, branding and distribution. During the financial year 2014-15, the Company has consolidated its play across segments by acquisition of new businesses and merging existing businesses into the holding company. The Company is focusing on leveraging its strengths and building a strong presence in the Food & FMCG category backed by a robust distribution set-up through urban and rural retail.

 

The Company is constantly expanding its existing vast portfolio of established Food & FMCG brands. Currently, it caters to various categories such as Basic Foods, Ready to Eat Meals, Snacks, Bevrages, Personal Care and Home Care. The Own brands division manages the entire process of creation of formulations, branding strategy, product design and development, packaging, quality control and marketing. Additionally, it focuses on product innovation to create newer product categories and source collaboration opportunities with reputed existing line of established brands in the commodity and value-added space through better sourcing, warehousing, sorting, manufacturing and packaging. The best in class facilities has enabled the Company’s foray into newer food categories such as branded fruits and vegetables, canola and rice bran oils, frozen and processed food products which are currently not produced in India.

 

With the aim of capturing urban consumption, the Company is re-branding its convenience store chain from ‘KB’s Fair Price’ to ‘KB’s Conveniently Theirs (KBCY). This new age neighborhood store offers an exotic product range. KBCY customizes offerings for each catchment after understanding the demographics, competition and the daily consumption pattern in the neighbourhood. These stores aim to be well-stockedwith products that sell the most in the locality and offer a mix of ‘Good-Better-Best’ range of products within each category driven by localization and the catchment potential.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE    QUARTER ENDED 30TH JUNE, 2015

 

(Rs. In Million)

Particulars

 

 

Quarter Ended

( Unaudited)

 

 

 

30.06.2015

 

 

 

 

1. Income from operations

 

 

 

a) Net sales/ Income from operation (net of excise duty)

 

 

2613.973

b) Other operating income

 

 

23.880

Total income from Operations(net)

 

 

2637.853

2.Expenditure

 

 

 

a) Cost of material consumed

 

 

35.665

b) Purchases of stock in trade

 

 

2583.741

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

 

 

(330.307)

d) Employees benefit expenses

 

 

155.129

e) Depreciation and amortization expenses

 

 

78.900

f) Other expenditure

 

 

263.924

Total expenses

 

 

2787.052

3. Profit from operations before other income and financial costs

 

 

(149.199)

4. Other income

 

 

81.756

5. Profit from ordinary activities before finance costs

 

 

(67.443)

6. Finance costs

 

 

143.427

7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items

 

 

(210.870)

8. Exceptional item

 

 

0.000

9. Profit from ordinary activities before tax Expense:

 

 

(210.870)

10.Tax expenses

 

 

0.000

11.Net Profit / (Loss) from ordinary activities after tax (9-10)

 

 

(210.870)

12.Extraordinary Items (net of tax expense)

 

 

0.000

13.Net Profit / (Loss) for the period (11 -12)

 

 

(210.870)

14.Paid-up equity share capital (Nominal value Rs.10/- per share)

 

 

9942.864

15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

 

--

16.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):

 

 

--

(a) Basic and Diluted

 

 

(0.13)

 

 

 

Particulars

 

 

Quarter Ended

( Unaudited)

 

 

 

30.06.2015

A. Particulars of shareholding

 

 

 

1. Public Shareholding

 

 

 

- Number of shares

 

 

936446707

- Percentage of shareholding

 

 

56.51%

2. Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

 

 

426656585

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

 

 

59.20%

Percentage of shares (as a % of total share capital of the company)

 

 

25.75%

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

 

 

294040746

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

 

 

40.80%

 

 

 

 

Percentage of shares (as a % of total share capital of the company)

 

 

17.74%

 

 

 

 

B. Investor Complaints

 

 

 

Pending at the beginning of the quarter

 

 

Nil

Receiving during the quarter

 

 

Nil

Disposed of during the quarter

 

 

Nil

Remaining unreserved at the end of the quarter

 

 

Nil

 

 

Notes:

 

  1. The name of the Company has changed from Future Ventures India Limited to Future Consumer Enterprise Limited w.e.f. September 30, 2013. Additional information required in terms of clause 41 (d) of the Listing agreement with regard to change in name of a Company, suggesting a new line of business, is not given since the numbers disclosed in the above results for the quarter are in respect of the new line of business only.

    2. The Company is engaged in the business of Branding, Selling and Distribution of "Consumer Products" which constitutes a single reporting segment. Hence there is no separate reportable segment under Accounting Standard on "Segment Reporting" (AS 17).

    3. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure. The Scheme of Arrangement and Amalgamation as approved by H'ble High Court, Bombay has been given effect in the results for last quarter of the previous financial year. Consequently, the results for the current quarter are not comparable with that of the corresponding previous quarter and immediately preceding quarter.

    4. The figures of the quarter ended March 31, 2015 are the balancing figures between the audited figures of the financial year ended March 31, 2015 and the published year to date figures upto the quarter ended December 31, 2014.

    5. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on August 8, 2015. The above results have been subjected to Limited Review by the statutory auditors.

 

6. the financial results will be available on the Company’s website - www.futureconsumer.in, and on the website of BSE (www.bseindia.com and NSE (www.nseindia.com)

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10562014

08/04/2015

1,250,000,000.00

YES BANK LIMITED

NEHRU CENTRE, 9TH FLOOR,, DISCOVERY OF INDIA, DR. A. B. ROOD WORLI, MUMBAI, MAHARASHTRA - 400018, INDIA

C50309806

2

10536310

18/11/2014

1,250,000,000.00

YES BANK LIMITED

NEHRU CENTRE, 9TH FLOOR, DISCOVERY OF INDIA,, DR. 
ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA - 
400018, INDIA

C36804433

3

10536306

08/04/2015 *

820,000,000.00

YES BANK LIMITED

NEHRU CENTRE, 9TH FLOOR,, DISCOVERY OF INDIA, DR. A. B. ROOD WORLI, MUMBAI, MAHARASHTRA - 400018, I 
NDIA

C49456692

4

10466677

25/09/2014 *

250,000,000.00

KOTAK MAHINDRA BANK LIMITED

27BKC, C 27, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (E),, MUMBAI, MAHARASHTRA - 400051, INDIA

C27754423

 

* Date of charge modification

 

 

CONTINGENT LIABILITIES:

 

(Rs. in million)

PARTICULARS

31.03.2015

31.03.2014

Corporate Guarantees Issued to Bank

1101.598

556.524

Disputed Income Tax Demand

201.758

12.670

Disputed Sales Tax Matter

14.705

0.000

Claims not Acknowledged as Debt*

5.098

4.763

Total

1323.159

573.957

 

 

FIXED ASSETS

           

Tangible Assets:

 

 

Intangible Assets

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

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

 

2]         Court Declaration :

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

 

3]         Asset Declaration :

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

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

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

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

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

 

8]         Affiliation with Government :

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

 

9]         Compensation Package :

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

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

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

 

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

 

 

CONTRAVENTION

 

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

 

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

Indian Rupees

US Dollar

1

Rs.66.71

UK Pound

1

Rs.105.10

Euro

1

Rs.77.11

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

GTA

 

 

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

6

--PROFITABILITY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

0

--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

 

44

 

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

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NB

                                       New Business

 

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

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