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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

491069

Report Date :

12.02.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

AVENUE SUPERMARTS LIMITED

 

 

Registered Office :

Anjaneya CHS Limited, Orchard Avenue, Opposite Hiranandani Foundation School, Powai, Mumbai – 400076, Maharashtra

Tel. No.:

91-22-40496500

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

12.05.2000

 

 

Com. Reg. No.:

11-126473

 

 

Capital Investment / Paid-up Capital :

INR 6240.845 Million

 

 

CIN No.:

[Company Identification No.]

L51900MH2000PLC126473

 

 

GST No.:

Not Divulged

 

 

IEC No.:

0301049751

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AACCA8432H

 

 

Legal Form :

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

 

 

Line of Business :

Subject is primarily engaged in the business of Organized Retail and Operates Supermarkets under the brand name of “D-Mart”. [Registered Activity]

 

 

No. of Employees :

5070 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A++

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

 

Maximum Credit Limit :

USD 109600000

INR 7670000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject owns and operates hypermarkets and supermarkets under the name “D-Mart’. It is organized retail business chain of stores which provides one-stop shopping experience for all daily household needs.


The company was incorporated in 2000 and is promoted by Mr. Radhakishan Damani, a well-known equity market investor, who also has large real estate holdings in Mumbai.


As of 2017, the company has 140 stores spread across Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Daman and Diu and Punjab.


For the financial year ended March 2017, the company has reported significant revenue along with decent profitability.


The sound financial risk profile of the company is marked by adequate net worth base along with negligible debt balance sheet profile.


Rating takes into account of company’s established position in the organized retail market supported by its established brand name in retail segment and extensive industry experience of its promoters.


Rating also takes into account the company’s healthy operational risk profile backed by sound financial base.


Payment seems to be regular.


In view of healthy financial condition backed by strong promoters, the company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

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

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term Bank facilities = AA

Rating Explanation

High degree of safety and very low credit risk.

Date

03.04.2017

 

 

Rating Agency Name

CRISIL

Rating

Short term Bank facilities = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

03.04.2017

 

 

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 31-03-2016.

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 12.02.2018

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON-COOPERATIVE

 

[CONTACT NO.: 91-22-40496501/ 91-9769420611/ 9461009336]

 

 

LOCATIONS

 

Registered Office :

Anjaneya CHS Limited, Orchard Avenue, Opposite Hiranandani Foundation School, Powai, Mumbai – 400076, Maharashtra, India 

Tel. No.:

91-22-40496500/ 501

Mobile No.:

91-9769420611 [Office]

91-9461009336 [Mr. Pratik]

Fax No.:

91-22-40496503

E-Mail :

investorrelations@dmartindia.com

commercial.po1@dmartindia.com

Website :

http://www.dmartindia.com

 

 

Corporate Office :

B–72/72A, Wagle Industrial Estate, Road No. 33, Kamgar Hospital Road, Thane – 400604, Maharashtra, India 

Tel. No.:

91-22-33400500

 

 

Store Locations :

Located at:

 

Maharashtra

Amravati, Aurangabad, Ichalkaranji, Jalgaon, Karad, Kolhapur, Nanded, Mumbai, Navi Mumbai, Badlapur, Mira Bhayander, Panvel, Raigad, Vasai-Virar, Pune, Satara, Sangli, Solapur, Thane, Kalyan-Dombivali

 

Gujarat

Ahmedabad, Anand, Baroda, Bhuj, Gandhinagar, Mehsana, Nadiad, Rajkot, Surat, Valsad

 

Telangana

Hyderabad, Warangal

 

Andhra Pradesh

Kakinada, Tirupati, Vijayawada

 

Karnataka

Bengaluru, Belgaum

 

Madhya Pradesh

Bhopal, Indore, Ratlam, Ujjain

 

Chhattisgarh

Raipur

 

NCR

Ghaziabad

 

Tamil Nadu

Chennai

 

Punjab

Chandigarh, Jalandhar, Amritsar

 

Rajasthan

Jaipur, Ajmer

 

 

DIRECTORS

 

AS ON 31.03.2017

 

Name :

Mr. Ignatius Navil Noronha

Designation :

Managing Director and Chief Executive Officer

Address :

D/102, Golden Square, Near MHB Colony Sunder Nagar, Next To Kalina Univ, Santacruz (West), Mumbai 400098, Maharashtra, India

Date of Appointment :

02.01.2006

DIN No.:

01787989

Other Directorship :

 

CIN/FCRN

Company Name

Begin Date

End Date

U74120MH2014PLC259234

AVENUE E-COMMERCE LIMITED

11/11/2014

-

 

 

Name :

Mr. Chandrashekhar Bhaskar Bhave

Designation :

Director

Address :

64 Tower 4, Pebble Bay, 1st Main RMV 2nd Stage, Dollars Colony, Bangalore 560094, Karnataka, India

Date of Appointment :

17.05.2016

DIN No.:

00059856

Other Directorship :

 

CIN/FCRN

Company Name

Begin Date

End Date

L65921MH1991PLC059642

MAHINDRA AND MAHINDRA FINANCIAL SERVICES LIMITED

03/02/2015

-

U67120KA1991PTC059126

VISTAAR FINANCIAL SERVICES PRIVATE LIMITED

12/06/2017

-

U74990KA2008NPL078948

INDIAN INSTITUTE FOR HUMAN SETTLEMENTS

07/09/2012

-

 

 

Name :

Mr. Ramakant Baheti

Designation :

Whole-time Director

Address :

A-501 Hercules, Vasant Galaxy, Bangur Nagar, Goregaon (West), Mumbai 400090, Maharashtra, India

Date of Appointment :

01.05.2014

PAN No.:

AAEPB4932E

DIN No.:

00246480

Other Directorship :

 

CIN/FCRN

Company Name

Begin Date

End Date

U45201MH2014PTC253497

NAHAR SETH & JOGANI DEVELOPERS PRIVATE LIMITED

21/02/2014

-

U45400MH2007PTC172281

TRISHALA REALTY PRIVATE LIMITED

29/01/2008

-

U65920MH1991PTC062124

DAMANI ESTATES AND FINANCE PVT LTD

18/12/2004

-

U65922KA2010PTC079842

HABITAT MICRO BUILD INDIA HOUSING FINANCE COMPANY PRIVATE LIMITED

12/09/2017

-

U65990MH1990PTC055421

DAMANI INVESTMENTS PRIVATE LIMITED

18/06/2005

-

U65990MH1994PTC083485

DAMANI SHARES AND STOCK BROKERS PRIVATE LIMITED

03/01/2000

-

U74120MH2014PLC259234

AVENUE E-COMMERCE LIMITED

11/11/2014

-

U80320MH2000PTC126543

AVISHKAAR TECHNOVENTURE PRIVATE LIMITED

29/09/2011

-

 

 

Name :

Mr. Ramesh Shrichand Damani

Designation :

Director

Address :

Sunshine, 6th Floor, 156, Maharshi Karve Road, Mantralaya, Mumbai 400020, Maharashtra, India

Date of Appointment :

09.09.2009

DIN No.:

00304347

Other Directorship :

 

CIN/FCRN

Company Name

Begin Date

End Date

L72900MH2000PLC123841

APTECH LIMITED

29/06/2006

-

U67120MH1997PTC112588

RAMESH S DAMANI FINANCE PRIVATE LIMITED

07/04/1998

-

 

 

Name :

Mrs. Manjri Aditya Chandak

Designation :

Director

Address :

C-501/602, Vastu Apartments, Near Devanand, Bungalow, Juhu, Mumbai 400049, Maharashtra, India

Date of Appointment :

31.03.2011

DIN No.:

03503615

Other Directorship :

 

CIN/FCRN

Company Name

Begin Date

End Date

U51909MH2007PLC168960

BOMBAY STORE RETAIL COMPANY LIMITED

29/09/2015

-

U74120MH2014PLC259234

AVENUE E-COMMERCE LIMITED

11/11/2014

-

U74999MH1905PLC000223

BOMBAY SWADESHI STORES LIMITED

29/09/2015

-

 

 

Name :

Mr. Elvin Elias Machado

Designation :

Whole-time Director and Business Development

Address :

House No. 234/B, Shalaka, Pali Karijbhat, Near Pali Church, Vasai, Thane 401201, Maharashtra, India

Date of Appointment :

30.09.2015

DIN No.:

07206710

 

 

KEY EXECUTIVES

 

Name :

Mr. Ramakant Baheti

Designation :

CFO(KMP)

Address :

A-501, Hercules, Vasant Galaxy, Bangur Nagar, Goregaon (West), Mumbai 400090, Maharashtra, India

Date of Appointment :

01.05.2014

PAN No.:

AAEPB4932E

 

 

Name :

Mrs. Ashu Gupta

Designation :

Company Secretary and Compliance Officer

Address :

Angre House, Flat No. 1104, MDL Colony, Mazagaon Dock Ltd, Dockyard Road, Mumbai 400010, Maharashtra, India

Date of Appointment :

03.07.2007

PAN No.:

AKEPG6148D

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2017

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)

(A) Promoter & Promoter Group

513020000

82.20

(B) Public

111064486

17.80

Grand Total

624084486

100.00

 

 

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)

A1) Indian

0.00

Individuals/Hindu undivided Family

33,42,70,000

53.56

Radhakishan Shivkishan Damani

24,59,30,000

39.41

Gopikishan Shivkishan Damani

5,09,80,000

8.17

Shrikantadevi Radhakishan Damani

2,22,50,000

3.57

Kirandevi Gopikishan Damani

1,50,00,000

2.40

Rukmanidevi Mohanlal Bagri (Promoter Group)

1,00,000

0.02

Chanda Chandak (Promoter Group)

10,000

0.00

Any Other (specify)

17,87,50,000

28.64

Bright Star Investments Pvt Ltd

8,87,50,000

14.22

Mr. Gopikishan S. Damani And Mr.Radhakishan S. Damani (Holding shares on behalf of Gulmohar Private Beneficiary Trust)

1,80,00,000

2.88

Mr. Gopikishan S. Damani And Mr.Radhakishan S. Damani (Holding shares on behalf of Karnikar Pvt Beneficiary Trust)

1,80,00,000

2.88

Mr. Radhakishan S. Damani And Mrs. Shrikantadevi Damani (Holding shares on behalf of Royal Palm Pvt Beneficiary Trust)

1,80,00,000

2.88

Mr. Radhakishan S. Damani And Mrs. Shrikantadevi Damani (Holding shares on behalf of Bottle Palm Pvt Beneficiary Trust)

1,80,00,000

2.88

Mr. Radhakishan S. Damani And Mrs. Shrikantadevi Damani (Holding shares on behalf of Mountain Glory Pvt Beneficiary Trust)

1,80,00,000

2.88

Sub Total A1

51,30,20,000

82.20

A2) Foreign

0.00

A=A1+A2

51,30,20,000

82.20

 

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

Total no. shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

B1) Institutions

0.00

Mutual Funds/

2,13,27,339

3.42

HDFC TRUSTEE COMPANY LIMITED

78,04,114

1.25

AXIS MUTUAL FUND TRUSTEE LIMITED

71,27,771

1.14

Alternate Investment Funds

7,77,185

0.12

Foreign Portfolio Investors

2,22,64,514

3.57

Financial Institutions/ Banks

1,58,313

0.03

Sub Total B1

4,45,27,351

7.13

B2) Central Government/ State Government(s)/ President of India

0.00

B3) Non-Institutions

0.00

Individual share capital upto INR 0.200 Million

1,79,83,074

2.88

Individual share capital in excess of INR 0.200 Million

4,33,62,126

6.95

Ignatius Navil Noronha

1,37,00,000

2.20

Any Other (specify)

51,91,935

0.83

Trusts

13,950

0.00

HUF

7,61,930

0.12

NRI – Non- Repat

1,53,756

0.02

NRI – Repat

3,38,100

0.05

Foreign Individuals

65

0.00

Clearing Members

4,24,406

0.07

Bodies Corporate

34,99,728

0.56

Sub Total B3

6,65,37,135

10.66

B=B1+B2+B3

11,10,64,486

17.80

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is primarily engaged in the business of Organized Retail and Operates Supermarkets under the brand name of “D-Mart”. [Registered Activity]

 

 

Brand Names :

·         D Mart

·         D Mart Minimax

·         D Mart Premia

·         D Homes

·         Dutch Harbour, etc.

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

PRODUCTION STATUS (NOT AVAILABLE)

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

Customers :

 

Reference:

Not Divulged

Name of the Person (Designation):

--

Contact Number:

--

Since how long known:

--

Maximum limit dealt:

--

Experience:

--

Remark

--

 

 

No. of Employees :

5070 (Approximately)

 

 

Bankers :

·         HDFC Bank Limited

·         Kotak Mahindra Bank Limited

·         Axis Bank Limited

·         The Hong Kong and Shanghai Banking Corporation Limited

·         ICICI Bank Limited

 

 

Facilities :

SECURED LOANS

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

LONG-TERM BORROWINGS

 

 

Term loans from banks

5584.687

5137.752

Less : Current maturities

1765.443

1553.065

Non-convertible debentures

8000.000

5500.000

Less : Current maturities

2010.000

0.000

 

 

 

SHORT TERM BORROWINGS

 

 

Working capital loans from banks

(Working capital loan from banks are secured by hypothecation of inventories, books debts, both present & future)

1226.604

634.911

 

 

 

Total

 

11035.848

9719.598

 

 

 

Auditors :

 

Name :

Dalal and Shah LLP

Chartered Accountants

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary Companies :

·         Avenue Food Plaza Private Limited

·         Align Retail Trades Private Limited

·         Nahar Seth & Jogani Developers Private Limited

 

 

Associate Enterprise :

Avenue E-Commerce Limited

 

 

Shareholders who exercise control :

Bright Star Investments Private Limited

 

 

Entities over which parties listed above exercise control / significant influence and transactions have taken place with them during the period :

·         7 Apple Hotels Private Limited

·         Bombay Swadeshi Stores Limited

 

 

Trust :

Avenue Supermarts Limited Employees Group Gratuity Trust

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

750000000

Equity Shares

INR 10/- each

INR 7500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

624084486

Equity Shares

INR 10/- each

INR 6240.845 Million

 

 

 

 

 

Reconciliation of number of shares

 

Balance at the beginning of the year

 

No. of shares

561542680

Amount in Million

5615.427

Issued, subscribed and paid up during the year *

 

No. of shares

62541806

Amount in Million

625.418

Balance at the end of the year

 

No. of shares

624084486

Amount in Million

6240.845

 

* IPO - Fresh issue of shares

 

The Company has completed the Initial Public offering (IPO) of fresh issue of 6,25,41,806 equity shares of INR 10 each at an issue price of INR 299 per share. The equity shares of the Company were listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) w.e.f. 21st March, 2017.

 

Terms and rights attached to equity shares

 

Equity shares have a par value of INR 10. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.

 

Shares reserved for issue under option

 

Information relating to Avenue Supermarts limited Employee Stock Option Scheme, 2016, including details of option granted, execrised and lapsed during the financial year and options outstanding at the end of the reporting period.

 

Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company

 

 

As at 31st March, 2017

Mr. Radha Kishan Damani

245930000

- % holding of shares

39.41%

Mr. Gopi Kishan Damani

50980000

- % holding of shares

8.17%

Bright Star Investments Private Limited

88750000

- % holding of shares

14.22%

 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET [STANDALONE]

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

31.03.2015

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

6240.845

5615.427

5615.427

(b) Reserves & Surplus

32129.788

9503.221

6321.315

(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)

38370.633

15118.648

11936.742

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

9809.244

9084.687

7137.752

(b) Deferred tax liabilities (Net)

517.450

400.930

306.031

(c) Other long term liabilities

13.835

180.568

184.471

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

10340.529

9666.185

7628.254

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1226.604

1134.911

269.357

(b) Trade payables

2667.552

2004.696

1370.394

(c) Other current liabilities

5250.391

2728.911

2103.990

(d) Short-term provisions

165.820

161.979

174.054

Total Current Liabilities (4)

9310.367

6030.497

3917.795

 

 

 

 

TOTAL

58021.529

30815.330

23482.791

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

25151.806

20612.663

15056.740

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

1528.936

816.870

915.904

(iv) Intangible assets under development

63.508

41.768

39.921

(b) Non-current Investments

639.890

296.470

166.565

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

454.122

304.916

233.559

(e) Other Non-current assets

502.153

843.286

642.051

Total Non-Current Assets

28340.415

22915.973

17054.740

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

9331.599

6602.005

5299.167

(c) Trade receivables

209.979

83.774

70.726

(d) Cash and cash equivalents

18813.134

325.869

358.623

(e) Short-term loans and advances

748.103

410.009

294.818

(f) Other current assets

578.299

477.700

404.717

Total Current Assets

29681.114

7899.357

6428.051

 

 

 

 

TOTAL

58021.529

30815.330

23482.791

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

 

Revenue from Operations

118811.190

85751.764

64335.211

 

 

Other Income

312.886

200.502

208.740

 

 

TOTAL                                     (A)

119124.076

85952.266

64543.951

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Stock-in-Trade

103689.542

74441.723

56661.191

 

 

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

(2729.594)

(1302.838)

(1659.375)

 

 

Employees benefits expense

1894.732

1462.188

1312.330

 

 

CSR Expenditure

0.000

0.000

21.691

 

 

Other expenses

6320.021

4584.367

3467.455

 

 

TOTAL                                     (B)

109174.701

79185.440

59803.292

 

 

 

 

 

 

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

9949.375

6766.826

4740.659

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

1218.039

912.345

719.659

 

 

 

 

 

 

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

8731.336

5854.481

4021.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1260.209

970.964

806.043

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

7471.127

4883.517

3214.957

 

 

 

 

 

Less

TAX                                                                  (H)

2644.742

1704.401

1101.102

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

4826.385

3179.116

2113.855

 

 

 

 

 

 

Earnings Per Share (INR)

8.56

5.66

3.86

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

 

 

 

Current maturities of term loans

1765.443

1553.065

1468.012

 

 

 

 

Cash (used in) / from operations

7027.876

5878.617

3064.547

 

 

 

 

Net cash (used in) / from operations

4488.217

4252.558

2072.210

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2017

30.09.2017

31.12.2017

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

35981.310

35082.670

40984.210

Total Expenditure

32948.940

31903.650

36730.810

PBIDT (Excl OI)

3032.370

3179.020

4217.40

Other Income

228.260

212.090

136.570

Operating Profit

3260.630

3391.110

4353.970

Interest

243.380

109.370

109.590

Exceptional Items

0.000

0.000

0.000

PBDT

3017.250

3281.740

4244.380

Depreciation

337.060

351.440

392.920

Profit Before Tax

2680.200

2930.030

3851.460

Tax

932.450

1020.080

1333.820

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

1747.760

1910.220

2517.640

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

1747.760

1910.220

2517.640

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

0.65

0.36

0.40

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

565.82

1023.61

909.64

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

9.39

9.83

8.83

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.07

1.02

0.89

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.37

0.32

0.30

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.36

0.54

0.53

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.33

0.78

0.74

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.24

0.40

0.33

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.70

1.42

1.34

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

8.17

7.42

6.59

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

4.06

3.71

3.29

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

8.32

10.32

9.00

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

12.58

21.03

17.71

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

3.19

1.31

1.64

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

2.19

0.22

0.29

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.66

0.49

0.51

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

2.05

2.10

1.58

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

3.19

1.31

1.64

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10.00/-

 

 

Market Value

INR 1158.40/-

 

 

FINANCIAL ANALYSIS

[all figures are in INR Million]

 

DEBT EQUITY RATIO

 

Particulars

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

5615.427

5615.427

6240.845

Reserves & Surplus

6321.315

9503.221

32129.788

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

11936.742

15118.648

38370.633

 

 

 

 

Long-term borrowings

7137.752

9084.687

9809.244

Short term borrowings

269.357

1134.911

1226.604

Current Maturities of Long term debt

1468.012

1553.065

1765.443

Total borrowings

8875.121

11772.663

12801.291

Debt/Equity ratio

0.744

0.779

0.334

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

64335.211

85751.764

118811.190

 

 

33.289

38.552

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

64335.211

85751.764

118811.190

Profit

2113.855

3179.116

4826.385

 

3.29%

3.71%

4.06%

 


ABRIDGED BALANCE SHEET [CONSOLIDATED]

 

SOURCES OF FUNDS

 

 

31.03.2017

31.03.2016

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

6240.845

5615.427

(b) Reserves & Surplus

 

32177.007

9588.974

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

(3) Non-Controlling Interest

 

1.453

0.995

Total Shareholders’ Funds (1) + (2)

 

38419.305

15205.396

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

 

9809.244

9084.687

(b) Deferred tax liabilities (Net)

 

505.048

398.651

(c) Other long term liabilities

 

13.835

161.718

(d) long-term provisions

 

1.827

1.728

Total Non-current Liabilities (3)

 

10329.954

9646.784

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

1388.478

1285.693

(b) Trade payables

 

2606.648

1944.417

(c) Other current liabilities

 

5273.932

2753.852

(d) Short-term provisions

 

206.800

179.379

Total Current Liabilities (4)

 

9475.858

6163.341

 

 

 

 

TOTAL

 

58225.117

31015.521

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

25439.367

20891.767

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

1528.936

816.870

(iv) Intangible assets under development

 

64.407

43.408

(b) Non-current Investments

 

488.964

274.749

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

411.846

245.900

(e) Other Non-current assets

 

505.543

845.524

Total Non-Current Assets

 

28439.063

23118.218

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

41.658

18.564

(b) Inventories

 

9479.031

6716.881

(c) Trade receivables

 

210.024

84.163

(d) Cash and cash equivalents

 

18842.878

350.983

(e) Short-term loans and advances

 

741.438

389.896

(f) Other current assets

 

471.025

336.816

Total Current Assets

 

29786.054

7897.303

 

 

 

 

TOTAL

 

58225.117

31015.521

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

 

Revenue from Operations

 

118976.956

85837.592

 

 

Other Income

 

285.593

179.373

 

 

TOTAL                                     (A)

 

119262.549

86016.965

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchases of Stock-in-Trade

 

103572.506

74356.167

 

 

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

 

(2762.150)

(1320.789)

 

 

Employees benefits expense

 

1925.115

1490.382

 

 

Share of Net Loss of Associate

 

129.205

0.721

 

 

Other expenses

 

6429.059

4675.714

 

 

TOTAL                                     (B)

 

109293.735

79202.195

 

 

 

 

 

 

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

 

9968.814

6814.770

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

 

1219.786

913.358

 

 

 

 

 

 

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

 

8749.028

5901.412

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

1278.186

984.283

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

 

7470.842

4917.129

 

 

 

 

 

Less

TAX                                                                  (H)

 

2682.861

1714.704

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

 

4787.981

3202.425

 

 

 

 

 

 

Earnings Per Share (INR)

 

8.49

5.70

 

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

No

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

Yes

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

 

 

INDEX OF CHARGES

 

CHARGES REGISTERED

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G48306849

100036976

IDBI TRUSTEESHIP SERVICES LIMITED

15/06/2016

15/06/2017

-

160000000.0

GROUND FLOOR, ASIAN BUILDING,17, R. KAMANI MARG, BALLARD ESTATE,MUMBAIMH400001IN

2

G48305130

100030413

IDBI TRUSTEESHIP SERVICES LIMITED

28/04/2016

15/06/2017

-

330000000.0

GROUND FLOOR,ASIAN BUILDING,17, R. KAMANI MARG,BALLARD ESTATE,MUMBAIMH400001IN

3

G00693457

100027286

IDBI TRUSTEESHIP SERVICES LIMITED

17/03/2016

-

-

1000000000.0

GROUND FLOOR,ASIAN BUILDING,17, R. KAMANI MARG,BALLARD ESTATE,MUMBAIMH400001IN

4

G48303697

10610489

IDBI TRUSTEESHIP SERVICES LIMITED

18/11/2015

15/06/2017

-

670000000.0

GROUND FLOOR,ASIAN BUILDING,17, R. KAMANI MARG,BALLARD ESTATE,MUMBAIMH400001IN

5

C64090053

10590706

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

27/08/2015

-

-

1100000000.0

52/60 MAHATMA GANDHI ROADMUMBAIMH400001IN

6

C42072850

10548620

IDBI TRUSTEESHIP SERVICES LIMITED

19/01/2015

-

-

1100000000.0

GROUND FLOOR,ASIAN BUILDING,17, R. KAMANI MARG,BALLARD ESTATE,MUMBAIMH400001IN

7

C39835319

10543657

IDBI TRUSTEESHIP SERVICES LIMITED

17/10/2014

-

-

900000000.0

GROUND FLOOR,ASIAN BUILDING,17, R. KAMANI MARG,BALLARD ESTATE,MUMBAIMH400001IN

8

C00166488

10348474

AXIS BANK LIMITED

21/03/2012

20/02/2014

-

200000000.0

AXIS HOUSE, CORPORATE BANKING BRANCH,GROUND FLOOR, P.B. MARG, WORLIMUMBAIMH400025IN

9

G03080652

10325558

ICICI BANK LIMITED

24/11/2011

23/01/2016

-

400000000.0

LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGU390015IN

10

G43315373

10188271

KOTAK MAHINDRA BANK LIMITED

20/11/2009

14/04/2017

-

350000000.0

27BKC, C 27, G BLOCKBANDRA KURLA COMPLEX, BANDRA (E),MUMBAIMA400051IN

11

C74492554

10154526

HDFC BANK LIMITED

31/03/2009

17/12/2015

-

533700000.0

HDFC BANK HOUSE SENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

12

B68579077

10074564

HDFC BANK LIMITED

04/10/2007

14/01/2013

-

180000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

13

A18043760

10057904

HDFC BANK LIMITED

17/05/2007

-

-

100000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

14

G47751300

10289353

HDFC BANK LIMITED

24/05/2011

-

29/06/2017

500000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

15

G47748009

10223918

HDFC BANK LIMITED

21/12/2009

-

29/06/2017

55000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

16

G46542957

100053503

VISTRA ITCL (INDIA) LIMITED

02/09/2016

-

16/06/2017

1000000000.0

IL & FS FINANCIAL CENTREPLOT NO C22 G BLOCK BANDRAKURLA COMPLEX BANDRA EASTMUMBAIMA400051IN

17

G45307709

10230047

HDFC BANK LIMITED

29/06/2010

-

30/05/2017

500000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

18

G45307915

10380633

HDFC BANK LIMITED

27/09/2012

-

30/05/2017

50000000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

19

G45308038

10467700

HDFC BANK LIMITED

12/12/2013

28/10/2015

30/05/2017

352356000.0

HDFC BANK HOUSE, SENAPATI BAPAT MARGLOWER PAREL (WESTMUMBAIMH400013IN

20

G45306669

10352008

HDFC BANK LIMITED

18/04/2012

-

30/05/2017

213100000.0

HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

SHORT TERM BORROWINGS

 

 

By issue of Commercial Papers

0.000

500.000

 

 

 

Total

 

0.000

500.000

 

 

CORPORATE INFORMATION

 

Avenue Supermarts Limited (‘the Company’) is a Company Limited by shares and is domiciled in India. The Company’s registered office is at Anjaneya, Opp. Hiranandani Foundation School, Powai, Mumbai, Maharashtra India 400076. The Company is primarily engaged in the business of organized retail and operates supermarkets under the brand name of “D-Mart”. Its equity shares are listed in India on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

 

 

BUSINESS AND OPERATIONS

 

The Company has recorded another steady year of growth, despite performing in a highly competitive environment in the Retail Sector. The Company has opened 21 new stores during the year, taking the total store count to 131 across the country. The Company’s total income on Standalone basis was INR 119124.076 Million compared to previous year’s INR 85952.266 Million, registering a steady growth of 38.59% on a year over year basis.

 

The Company has earned Standalone Net Profit of INR 4826.385 Million. There was no change in nature of the business of the Company, during the year under review.

 

 

UTILISATION OF IPO PROCEEDS

 

The proceeds realised by the Company from the Issue shall be utilised as per the Objects of the Issue. The proceeds of the issue are being utilised for repayment or pre-payment of term loans and redemption or early redemption of Non-Convertible Debentures of the Company, for Construction and purchase of fit outs for new stores and General Corporate Purposes.

 

There has been no deviation in the utilisation of the IPO proceeds of the Company.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ECONOMIC OVERVIEW

 

During FY 2016-17, India saw some key economic policy developments – Demonetisation of Specified Bank Notes (INR 500 and INR 1000) prevailing as on 8th November, 2016 and passage of the Good and Services Tax (GST) and the implementation of the same later on.

 

India’s GDP grew by 7.2% in the first half of FY 2016-17 on the back of export recovery and implementation of the 7th Pay Commission recommendations which buoyed consumption in the economy. Inflation stood at 3.89% as of March 2017 in line with RBI’s target of 4%.

 

 

INDUSTRY OVERVIEW

 

In 2016, India’s GDP is estimated at approximately USD 2,115 billion, of which private consumption constituted 60%. Retail forms around 50% of private consumption. India’s GDP growth will therefore translate to an increase in the merchandise retail market, from the current USD 616 billion (approximately) to USD 960 billion by 2020. Share of urban retail is expected to grow from 49% in FY 2015-16 to 52% in FY 2019-20 due to increasing urbanisation, a higher increase in urban household income, and increasing penetration of organised retail in urban centres.

 

Organised Brick & Mortar retail (which is largely concentrated in urban India) was 9% of total retail (USD 55 billion) in FY 2015-16 and this is expected to become 12% (USD 115 billion) by FY 2019-20. It was 7% of total retail in FY 2009-10.

 

Currently, the food and groceries (F&G) segment constitutes a majority share of the retail market (67%). F&G will continue to be the largest contributor in the retail market even for years hence with a projected share of 66% in 2020.

 

16 Indian states contribute approximately 85% of the total retail spend and are expected to continue having a significant share of the total retail consumption. The state of Maharashtra contributes the highest share of around 19% among these leading states. The state is expected to continue to reflect this steady growth. Gujarat is another state that is expected to continue to reflect steady growth.

 

While organised retail, primarily brick & mortar, has been in India for more than two decades now, its contribution to total retail is still low at 9% (USD 55 billion) as of 2016, a modest increase from around 7% in 2012.

 

In 2012, the e-tail market size was only USD 0.6 billion with the then key categories like electronics, books, stationery and music catering to nearly 50% of the market share. Currently, the e-tail market in India is 2% (USD 14 billion) of the overall retail market and is projected to be 4% to 6% (USD 43 billion to USD 65 billion) of the overall retail market by 2020.

 

Consumer electronics, being a highly standardised category, currently constitutes a major portion of the e-tail market in India. This is followed by apparel and lifestyle. These two categories are expected to lead the online space in 2025 as well.

 

 

BUSINESS OVERVIEW

 

Avenue Supermarts Limited is an emerging national supermarket chain, with a strong focus on value-retailing.

 

We opened their first store in Mumbai, Maharashtra in 2002. As of 31st March, 2017, we had 131 stores with Retail Business Area of 4.06 million sq.ft., located in Maharashtra (60 stores), Gujarat (29), Karnataka (11), Telangana and Andhra Pradesh (20), Madhya Pradesh and Chhattisgarh (5), NCR (1), Daman (1), Tamil Nadu (1) and Rajasthan (3).

 

Their strategy is to lead on price while investing to differentiate on assortment, geographic expansion and cost optimisation. Their business model is based on the concept of offering value retailing to their customers using the EDLC / EDLP (Everyday Low Cost/Everyday Low Price) strategy. It is based on offering low prices on an everyday basis. This is done by achieving low procurement and operational cost, rather than as special promotions limited to certain products or to a particular day, week or any other specific period in the year.

 

Their stores are supported by IT and operational management systems specific to their business needs. These systems streamline many of their functions including procurement, sales, supply chain and inventory control processes and produce updated information to support their business, on a daily basis. As a result, we are able to procure their merchandise from their distribution centres or directly from their suppliers and manage their inventory levels efficiently to better respond to their customers’ changing preferences and needs.

 

 

INFORMATION TECHNOLOGY (IT)

 

They have benefited from their in-depth understanding of local needs and their ability to respond quickly to the changing consumer preferences.

 

Their IT systems are built with a wide range of data management tools specific to their business needs and support key aspects of their business. IT helps their cash management systems, in-store systems, logistics systems, humar resources, projects management, maintenance and other administrative functions. This helps us to minimise product shortage, pilferage, out of stock situations etc., and increase overall operational efficiency

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2017

 

[INR IN MILLION]

 

 

Particulars

Quarter ended 31.12.2017

Quarter ended 30.09.2017

Nine Months ended 31.12.2017

 

 

 

 

 

1.

Income from operations

 

 

 

 

a) Net Sales/Income from Operations

40948.214

35082.669

112012.191

 

b) Other Operating Income

138.573

212.092

577.421

 

Total Income from Operations

41084.787

35294.761

112589.612

 

 

 

 

 

2.

Expenses

 

 

 

 

a) Cost of materials consumed

 

 

 

 

b) Purchase of traded goods

31866.671

32675.634

94955.813

 

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

2370.653

(3253.157)

(876.059)

 

d) Finance Cost

109.591

109.366

462.341

 

e) Employee benefits expense

704.210

697.144

2041.395

 

f) Depreciation and amortisation expense

392.916

351.437

1081.410

 

g) Other expenses

1789.284

1784.035

6462.746

 

Total Expenses

37233.325

32364.459

103127.548

 

 

 

 

 

 

Profit before tax

3851.462

2930.302

9461.966

 

 

 

 

 

3

Tax expense

 

 

 

 

Current Tax

1311.492

1009.888

3229.299

 

Deferred tax Charge

27.374

9.933

51.833

 

Tax in respect of earlier years

(5.039)

0.255

(4.784)

 

 

 

 

 

 

Profit after tax

2517.635

1910.226

6175.616

 

 

 

 

 

4

Other Comprehensive Income

(2.630)

(7.215)

(7.889)

 

 

 

 

 

 

Total Comprehensive Income

2515.006

1903.011

6167.729

 

 

 

 

 

5

Paid - up Equity Share Capital

(Face value of INR 10/- per share)

6240.845

6240.845

6040.845

6

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

 

 

 

7

Earnings Per Share (EPS)

 

 

 

 

Basic

4.03

3.06

9.90

 

Diluted

3.97

3.02

9.75

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2017

(INR In Million)

31.03.2016

(INR In Million)

Income Tax Matters

0.647

2.949

Vat Matters

22.105

26.128

Service Tax Matters

6.913

6.913

Other Matters

6.312

6.312

It is not practiable for the Company to estimate the timings of cash outflows, if any in respect of above pending resolutions of the respective proceedings.


FIXED ASSETS:

 

·         Land

·         Buildings

·         Leasehold Improvement

·         Plant & equipment

·         Computers

·         Furniture & fixtures

·         Vehicles

·         Office equipment

·         Electrical Installations

·         Computer Software

·         Trademarks

 

 

 

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 records 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

INR 64.37

UK Pound

1

INR 89.71

Euro

1

INR 78.89

 

 

INFORMATION DETAILS

 

Information Gathered by :

KMN

 

 

Analysis Done by :

PRY

 

 

Report Prepared by :

BVA

 

 

SCORE FACTORS

 

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

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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.