%20PRIVATE%20LIMITED%20-%20128631%2004-Jan-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
04.01.2011 |
Note:
The registered address of the company has been shifted from 1st
Floor, Sakhar Bhavan, Nariman Point, Mumbai - 400 021, Maharashtra, India to the present address w.e.f 12.10.2006.
IDENTIFICATION DETAILS
|
Name : |
FRANKLIN TEMPLETON ASSET MANAGEMENT ( |
|
|
|
|
Formerly Known
As : |
TEMPLETON ASSET MANAGEMENT INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Level 4, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.09.2009 |
|
|
|
|
Date of
Incorporation : |
06.10.1995 |
|
|
|
|
Com. Reg. No.: |
11-093356 |
|
|
|
|
CIN No.: [Company Identification
No.] |
U67190MH1995PTC093356 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing Financial Services |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 12841000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Franklin Templeton Group. It is an established company
having fine track. Financial position of the company appears to be sound.
Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY (General Details)
|
Name : |
Mr. Kunal |
|
Designation : |
Accounts Department |
|
Date : |
03.01.2011 |
LOCATIONS
|
Registered Office : |
Level 4, |
|
Tel. No.: |
91-22-67519100 |
|
Mobile No.: |
|
|
Fax No.: |
91-22-66490622 |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
|
|
|
|
|
Branch Office : |
1st Floor, Sakhar Bhavan, Nariman Point, Mumbai – 400 021, |
DIRECTORS
As on 27.01.2010
|
Name : |
Mr. Deepak Madhav Satwalekar |
|
Designation : |
Director |
|
Address : |
9, Nutan Alka Co-operative Housing Society Limited, Relief Road,
Santacurz (West), Mumbai-400054, |
|
Date of Birth/Age : |
14.11.1948 |
|
Date of Appointment : |
06.10.1995 |
|
|
|
|
Name : |
Mr. Bhaskara Nageshwara Rao Mandavilli |
|
Designation : |
Director |
|
Address : |
Canara House No.6, First Cross, First Block Jaya Nagar, |
|
Date of Birth/Age : |
19.06.1948 |
|
Date of Appointment : |
19.05.2009 |
|
|
|
|
Name : |
Mr. Mark Joseph Benhard Mobius |
|
Designation : |
Director |
|
Address : |
Block 11, Waterside Apartments, No.06-02, Panjorg RHU Road,
Singapore-436896 |
|
Date of Birth/Age : |
17.08.1936 |
|
Date of Appointment : |
06.10.1995 |
|
|
|
|
Name : |
Mr. Vijay C. Advani |
|
Designation : |
Director |
|
Address : |
484, |
|
Date of Birth/Age : |
30.12.1960 |
|
Date of Appointment : |
08.07.2006 |
|
|
|
|
Name : |
Mr. Jed Plafker |
|
Designation : |
Alternate Director |
|
Address : |
4278, |
|
Date of Birth/Age : |
11.01.1971 |
|
Date of Appointment : |
** 03.12.2009 (** Reappointed as alternate director to Dr. Mark
Mobius) |
|
Date of Ceasing : |
* 01.11.2009 (Cessation under section 313 of the Companies Act, 1956
on return of Original Director) |
|
|
|
|
Name : |
Mr. Navroz H. Seervai |
|
Designation : |
Director |
|
Address : |
8, Shiv Shanti Bhavan, M. Karve Marg, Mumbai – 400 020, |
|
Date of Birth/Age : |
22.02.1957 |
|
Date of Appointment : |
17.05.2003 |
|
|
|
|
Name : |
Mr. Vivek Kudva |
|
Designation : |
Director |
|
Address : |
Flat No.202, 2nd Floor, Vishnu Villa, |
|
Date of Birth/Age : |
29.07.1959 |
|
Date of Appointment : |
26.03.2009 |
|
|
|
|
Name : |
Mr. Rajan Biharilal Raheja |
|
Designation : |
Director |
|
Address : |
“Rahejas”, 87/1, G. B. Marg, Juhu, Mumbai-400049, |
|
Date of Birth/Age : |
19.06.1953 |
|
Date of Appointment : |
06.10.1995 |
|
|
|
|
Name : |
Mr. Vaidyanathan Panchapagesan |
|
Designation : |
Director |
|
Address : |
7AB, Kences Enclave, Block III, No. 1, |
|
Date of Birth/Age : |
29.10.1947 |
|
Date of Appointment : |
21.12.1995 |
|
Date of Ceasing : |
21.03.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Jayaram Subramaniam R |
|
Designation : |
Company Secretary |
|
Address : |
Flat No. 23, Tower A2, |
|
Date of Birth/Age : |
09.09.1966 |
|
Date of Appointment : |
13.10.2005 |
|
Tel No. : |
91-22-25743119 |
|
Fax No. : |
91-22-66490622 |
|
E Mail : |
|
|
|
|
|
Name : |
Mr. Kunal |
|
Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 27.01.2010
|
Names of Shareholders |
|
No. of Shares |
|
Franklin Templeton Holding Limited, |
|
239333296 |
|
Vivek Kudva (Nominee holder, beneficial interest with Franklin
Templeton Holding Limited) |
|
4 |
|
Total
|
|
239333300 |
As on 27.01.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Financial Services |
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit |
|
|
|
|
Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
Customers : |
OEM’s and Corporates Industries |
|||||||||
|
|
|
|||||||||
|
No. of Employees : |
70 (In office – 50, In branches – 20) Approximately |
|||||||||
|
|
|
|||||||||
|
Bankers : |
Citi Bank, Branch Fort, Mumbai |
|||||||||
|
|
|
|||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
252, Veer Savarkar Marg, |
|
|
|
|
Holding Company : |
Franklin Templeton Holding Limited, |
|
|
|
|
Ultimate Holding Company : |
Franklin Resources Inc., |
|
|
|
|
Subsidiaries : |
ITI Capital
Markets Limited CIN No.: U65991TN1993PLC024429 |
|
|
|
|
Fellow Subsidiaries : |
|
CAPITAL STRUCTURE
As on 27.01.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
245000000 |
Equity Shares |
Rs.10/- each |
Rs.2450.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
239333300 |
Equity Shares |
Rs.10/- each
|
Rs.2393.333
millions |
|
|
|
|
|
(All the above equity shares are held by Franklin Templeton Holding
Limited, Mauritius, the holding company and its nominee; Franklin Resources
Inc., USA being the ultimate holding company)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2009 |
30.09.2008 |
30.09.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2393.333 |
2393.333 |
2393.333 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
817.008 |
229.775 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(530.955) |
|
|
NETWORTH |
3210.341 |
2623.108 |
1862.378 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9.356 |
9.956 |
6.148 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
24.076 |
|
|
TOTAL BORROWING |
9.356 |
9.956 |
30.224 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3219.697 |
2633.064 |
1892.602 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
102.789 |
127.155 |
88.521 |
|
|
Capital work-in-progress |
1.918 |
0.376 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
3334.477 |
2380.177 |
1389.998 |
|
|
DEFERREX TAX ASSETS |
165.860 |
131.230 |
88.805 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
12.697 |
0.000
|
|
|
Sundry Debtors |
234.657
|
179.068 |
242.368
|
|
|
Cash & Bank Balances |
38.552
|
18.210 |
141.106
|
|
|
Other Current Assets |
0.004
|
0.159 |
0.135
|
|
|
Loans & Advances |
248.845
|
573.543 |
467.911
|
|
Total
Current Assets |
522.058
|
783.677 |
851.520 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
570.752 |
553.464 |
477.839
|
|
|
Other Current Liabilities |
246.721
|
184.186 |
0.000
|
|
|
Provisions |
89.932
|
51.901 |
48.403
|
|
Total
Current Liabilities |
907.405
|
789.551 |
526.242
|
|
|
Net Current Assets |
(385.347)
|
(5.874) |
325.278
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3219.697 |
2633.064 |
1892.602 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2009 |
30.09.2008 |
30.09.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
Investment Management Fees |
1979.735 |
2562.230 |
2551.810 |
|
|
|
Transfer Agency Fees |
202.029 |
251.733 |
|
|
|
|
Other Income |
148.340 |
317.822 |
|
|
|
|
TOTAL (A) |
2330.104 |
3131.785 |
2551.810 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
1423.967 |
1654.022 |
1347.190 (including
interest) |
|
|
|
Provision for Dimunition in Value of Investments Written Back as no
longer required |
0.000 |
(28.323) |
418.130 |
|
|
|
TOTAL (B) |
1423.967 |
1625.699 |
1765.320 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
906.137 |
1506.086 |
-- |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
1.845 |
1.507 |
-- |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
904.292 |
1504.579 |
786.490 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
40.796 |
53.562 |
61.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
863.496 |
1451.017 |
725.490 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
276.263 |
413.287 |
412.230 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
587.233 |
1037.730 |
313.260 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
0.000 |
215.400 |
0.000 |
|
|
|
Tax on Distributed Profit |
0.000 |
36.607 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
587.233 |
785.723 |
313.260 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sub-Advisory Fee |
188.603 |
250.333 |
NA |
|
|
TOTAL EARNINGS |
188.603 |
250.333 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.45 |
4.34 |
NA |
|
%20PRIVATE%20LIMITED%20-%20128631%2004-Jan-2011_files/image003.gif){kind=small}
KEY RATIOS
|
PARTICULARS |
|
30.09.2009 |
30.09.2008 |
30.09.2007 |
|
PAT / Total Income |
(%) |
25.20
|
33.14 |
12.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
43.62
|
56.63 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
138.19
|
159.31 |
77.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.55 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.29
|
0.30 |
0.30
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.58
|
0.99 |
1.62
|
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
30.09.2009 (Rs. in millions) |
30.09.2008 (Rs. in millions) |
30.09.2007 (Rs. in millions) |
|
Sundry Creditors * |
|
|
|
|
a) Total
outstanding dues of micro enterprises and small enterprises |
0.017 |
0.781 |
0.213 |
|
b) Total
outstanding dues of creditors other than micro enterprises and small
enterprises |
570.735 |
552.683 |
477.626 |
|
|
570.752 |
553.464 |
477.839 |
* There are no amounts due and outstanding to be credited to Investor
Education and Protection Fund.
REVIEW OF FINANCIAL PERFORMANCE
During the year, the Company earned gross
income of Rs.2330.100 millions as against Rs.3131.780 millions in the previous
year, a decrease of 25.60%, primarily due to a decrease in the average asset
under management (AUM) of Franklin Templeton Mutual Fund (FTMF) by about 20%.
The Company posted a net profit of Rs.587.230 millions as against a net profit
of Rs.1037.720 millions in the previous year.
REVIEW OF OPERATIONS:
Directors report that:
> During the year, the assets under
management (AuM) of Franklin Templeton Mutual Fund (FTMF) increased from
Rs.260899 millions as at September 30, 2008 to Rs.286663 millions as at
September 30, 2009, representing increase of about 9.88%. However, the average
AuM decreased from Rs.290681 millions for the year ended September 30, 2008 to
Rs.231475 Millions for the year ended September 30, 2009, representing a
decrease of 20%.
> During the year, the total number of
investor accounts has reduced from 2,613,800 as at September 30, 2008 to
2,517,684 as at September 30, 2009. The Company presently manages 63 plans of
FTMF.
> During the year, FTMF had launched the
following schemes:
• Templeton Fixed Horizon Fund - Series X -
Plan D
• Templeton Fixed Horizon Fund - Series X
(Plan E - 3 months)
• Templeton Fixed Horizon Fund - Series XI
(Plan D - 367 days)
• Franklin Build
PORTFOLIO MANAGEMENT SERVICES
The Company is offering Portfolio Management
Services since 2003, for discretionary, non-discretionary and advisory services
across both equity and fixed income assets. During the year, out of the three
products offered by the Company, two products namely: Franklin Templeton Select
Fund and Franklin Templeton opportunities Fund were withdrawn primarily due to
a business review after change in the regulatory environment. Consequently, the
AUM of these products has decreased to Rs.90 Millions as at September 30, 2009.
In respect of the Franklin Templeton Private Equity Strategy, the Company has
made 2 draw downs out of the total capital committed of Rs.5895 millions and
the AUM as at September 30, 2009 was Rs.1077 millions.
AWARDS
The Company has received ICRA Mutual Fund
Awards 2009 awarded a 5 star fund rating for TGSF - LT Plan for one year period
ending December 2008 under the open ended gilt category.
AMALGAMATION:
A. On July 23, 2002 the Company had acquired
7,893,965 equity shares of Rs.10 each representing 100% of the capital of
Franklin Templeton AMC Limited (FTAMCL) foes cash consideration of Rs.2676.335
millions. The Company has also executed a deed of variation dated July 26, 2002
for taking over the management of the schemes of Pioneer ITI Mutual Fund with
effect front August 30, 2002. Requisite approvals have been received from the
regulators.
B. On February 18, 2003 the Board of Directors
of the Company sod on August 27, 2002 the Board of Directors of FTAMCL approved
the scheme of amalgamation under sections 391 to 394 of the Companies Act, 1956
under which FTAMCL would merge with and into the Company wills effect from July
26, 2002 (Appointed date).
C. The High Courts at Mumbai and Chennai
(being jurisdiction for the Company and FTAMCL, respectively) have approved the
Scheme of Amalgamation side their orders dated October 07, 2005 and February
07, 2006, respectively. The High Court at Chennai had further directed that
FTAMCL be dissolved ‘without being wound up’ upon the Official Liquidator of
the Chennai High Court filing a report with the High Court. The aforesaid
orders of the High Courts at Mumbai and Chennai were filed with the Registrar
of Companies along with Form No. 21.
D. On March 12, 2008 (issued on April 24,
2008), the Nigh Court at Chennai issued an eider for dissolution of FTAMCL
without winding up Form No.21 being Notice of the Court Order baa been filed
with the Registrar of Companies Chennai on May 22, 2008.
Pursuant to sanctions accorded by the
Honourable High Courts at Chennai and Mumbai an aforesaid, the assets and
liabilities of the erstwhile FTAMCL were transferred to and vested in the
Company with effect from July 26, 2002. The Scheme of Amalgamation wan
accordingly given effect to in the financial statements of die previous year
ended September 30, 2008 arid the equity shares of FTAMCL held by the Company
were cancelled.
The amalgamation being in star nature of a
merger has been accounted fix nudes die ‘Pooling of Interests Method’ as
prescribed in the Accounting Standard 14 (AS14) issued by the Institute of
Chartered Accountants of India. Accordingly the entire undertaking of the
erstwhile F1’AMCL with all its assets, liabilities and reserves as at July 26,
2002 have been taken over at their respective book values. -
E. During the year ended September 30, 2008,
the difference between the cost of investment in FTAMCL in the books of account
of the Company and the net book value of all assets and liabilities of FTAMCL
as at July 26, 2002 transferred to the Company have been adjusted against the
balance in profit and loss account and share premium account of FTAMCL in
accordance with the resolution passed by the Board of Directors of the Company
as its meeting held on August 12, 2008 and the balance was disclosed as
Goodwill on amalgamation is the books of account of the Company.
|
Particulars |
Amount (Rs. in
millions) |
|
Cost of Investments (A) |
2676.335 |
|
Gross Value of Assets (as at July 26, 2002) |
306.628 |
|
Gross Value of Liabilities (as at July 26,
2002) |
106.325 |
|
Net Assets taken over (B) |
200.303 |
|
Goodwill (A-B) |
2476.032 |
F. Prior to the amalgamation of FTAMCL with the
Company, the Company had been providing foe diminution in value of investments
made in FTAMCL based on the difference between cost of investments and net book
value of assets transferred amounting to Rs.2504.355 millions. On amalgamation,
of FTAMCL with the Company, the difference between the provision for diminution
in value of investments and amortisation of Goodwill arising on amalgamation of
Rs.28.323 millions has been written back during the year ended September 30,
2008.
G. Subsequent to the amalgamation of FTAMCL
with the Company, in accordance with AS-14 the balance in Goodwill account of
Rs.2476.032 millions has been amortised equally over a period of sixty months
commencing from August 2002 upto July 2007.
H. Consequent to the amalgamation of FTAMCL
with the Company, the entire share capital of ITI Capital Markets Limited held
earlier by FTAMCL and its nominees is now held by the Company and its nominees.
CONTINGENT LIABILITY: (As on 30.09.2009)
(a) The Company is contingently liable in respect
of claims, if any, from the unit holders of the schemes of Franklin Templeton
Mutual Fund inter-alia for interest on delays in dispatch of redemption or
repurchase proceeds by the registrar and transfer agent in accordance with the
Securities and Exchange Board of India (Mutual Funds) Regulations and
amendments thereto.
(b) (i) The Company baa received intimation
for appeals flied by Income Tax Department before the High Court of Bombay for
assessment year (AY) 1997-98, 2000-01 and for the block period from 1 April
1995 to 31 August 2001, against the orders passed by the Income Tax Appellate
Tribunal in favour of the
(ii) Income tax authorities bad initiated
re-assessment proceedings in the earlier years against the Company in respect
of assessment years 1999-2000, 2000-01) and 2001-02 resulting in a lower refund
by Rs.138.438 millions granted in respect of subsequent assessment years
2003-04 and 2004-05. The Company had preferred appeals against the
re-assessment proceedings. An order granting relief dated May 12, 2008 by
Commissioner of Income Tax (Appeals) has been passed in favour of the Company
in respect of assessment years 1999-2000, 2000-01 and 2001-02. An order giving
effect to the order granting relief has been received by the Company.
(iii) The Tax authorities have filed appeals
before the Income Tax Appellate Tribunal against the favourable orders, in
respect of regular assessment/ reassessments, of the Commissioner of Income Tax
(Appeals) for assessment years 1999-2000, 2000-01, 2001-02, 2002-03, 2003-04,
2004-05 and 2005-06. The Company has received order in its favour from the
Income Tax Appellate Tribunal in inspect of assessment years 2002-03, 2003-04
and 2004-05. Subsequent to the year end, the Company has received order from
Income Tax Appellate Tribunal in it’s favor for assessment year 1999-2000,
2000-01, 2001.
(iv) The Company has received an assessment
order for the assessment year 2006-07 revising the taxable income of the
Company resulting in a tax demand of Es. 225,760,133. The Company baa flied an
appeal against this assessment order and baa received favourable order from
Commissioner of Income Tax.
(v) Subsequent to the year end, the Company
has received an assessment order for the assessment year 2007-08 revising the
taxable income of the Company resulting in a tax demand of Rs195.878 millions.
The Company is in the process filing appeal against the order.
(vi) Based on the favourable orders received
from the Commissioner of Income Tax (Appeals) and Income Tax Appellate
Tribunal, the Company has been professionally advised that the income tax
department’s chances of succeeding in appeal are not very good and accordingly
the potential demands have not been provided for.
(c) Bank guarantees outstanding as at
September 30, 2009 for which the Company has given alt counter guarantees
amount to Rs. Nil.
(d) Consequent to merger of Franklin Templeton
AMC Limited with the Company, the assets of Franklin Templeton AMC Limited have
been transferred to the Company including the building “Century Centre” at
Chennai. Receipt of title deeds with respect to the building “Century Centre”
as Chennai is awaited from the registration authorities. No provision is
considered necessary for the stamp duty of Rs.7.087 millions demanded by the
authorities, as the Company has been advised that the demand is not valid in
law. Necessary legal remedies as advised are being pursued in this regard.
FIXED ASSETS:
·
Land
·
Buildings
·
Furniture and Fixtures
·
Computers and Other
Hardware
·
Office Equipment
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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 |
Rs.44.67 |
|
|
1 |
Rs.69.45 |
|
Euro |
1 |
Rs.59.37 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.