MIRA
INFORM REPORT
|
Report Date : |
06.01.2011 |
Note: Give address could no confirmed
IDENTIFICATION DETAILS
|
Name : |
INDIABULLS FINANCIAL SERVICES LIMITED |
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|
|
|
Formerly Known
As: |
Orbis Infotech Private Limited |
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|
Registered
Office : |
F-60, |
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|
Country : |
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Financials (as
on) : |
31.03.2010 |
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|
|
|
Date of
Incorporation : |
10.01.2000 |
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|
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|
Com. Reg. No.: |
55-103183 |
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|
|
CIN No.: [Company Identification
No.] |
L67120DL2000PLC103183 |
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|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges |
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Line of Business
: |
Non Banking Finance Company |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
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 160000000 |
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|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Indiabulls Housing Finance Limited. It is a
well established and a reputed 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 normal for businesses 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 DECLINED BY
MANAGEMENT NON CO- OPERATIVE
LOCATIONS
|
Registered Office : |
F-60, |
|
Tel. No.: |
91-11-30476500/41523700 |
|
Fax No.: |
91-11-41529071 |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
“Indiabulls House” , 448-451, Udyog Vihar, Phase V, Gurgaon-122001, |
|
Fax No.: |
91-124-3081111 |
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|
|
|
Corporate Office 2 : |
One Indiabulls Center, Tower 2/B, 841, Senapati Bapat Marg, Elphinstone
Road, Mumbai- 400 013. |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Sameer Gehlaut |
|
Designation : |
Director |
|
Address : |
71, Maker tower,
A wing, 7th Floor, Cuffe Parade, Mumabi-400 005, Maharashtra,
India |
|
Date of Birth/Age : |
03.03.1974 |
|
Date of Appointment : |
10.01.2000 |
|
|
|
|
Name : |
Mr. Rajiv Rattan |
|
Designation : |
Director |
|
Address : |
B-4, /157,
Ground Floor, Safdarjung Enclave, New Delhi-110 029, |
|
Date of Birth/Age : |
07.06.1973 |
|
Date of Appointment : |
10.01.2000 |
|
|
|
|
Name : |
Mr. Surabh K
Mittal |
|
Designation : |
Director |
|
Address : |
A-19, A Block,
H. No.A 1 to A32 Westnd |
|
Date of Birth/Age : |
20.09.1973 |
|
Date of Appointment : |
10.01.2000 |
|
|
|
|
Name : |
Mr. Gagan Banga |
|
Designation : |
Director |
|
Address : |
243, Maker
tower, B wing, 7th Floor, Cuffe Parade, Mumabi-400 005,
Maharashtra, India |
|
Date of Birth/Age : |
22.08.1975 |
|
Date of Appointment : |
30.03.2005 |
|
|
|
|
Name : |
Mr. Aishwarya
Katoch |
|
Designation : |
Director |
|
Address : |
S-43, Greater
Kailash, New Delhi-110 048, |
|
Date of Birth/Age : |
16.01.1970 |
|
Date of Appointment : |
20.12.2004 |
|
|
|
|
Name : |
Mr. Shamsher Singh |
|
Designation : |
Director |
|
Address : |
96 A, Eastern
Avenue, Sainik Farm, New Delhi-110 068, |
|
Date of Birth/Age : |
28.12.1948 |
|
Date of Appointment : |
20.12.2004 |
|
|
|
|
Name : |
Mr. Karan Singh |
|
Designation : |
Director |
|
Address : |
1408, Urban
Estate, Jind-124 413, |
|
Date of Birth/Age : |
17.06.1946 |
|
Date of Appointment : |
30.03.2005 |
|
|
|
|
Name : |
Mr. Prem Prakash Mirdha |
|
Designation : |
Director |
|
Address : |
Mirdha Farm, |
|
Date of Birth/Age : |
31.07.2007 |
|
Date of Appointment : |
10.10.1955 |
KEY EXECUTIVES
|
Name : |
Mr. Amit Jain |
|
Designation : |
Company Secretary |
|
Address : |
1116, Sector-4,
Urban Estate, Gurgaon-122 001, |
|
Date of Birth/Age : |
12.10.1979 |
|
Date of Appointment : |
17.04.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
75,368,614 |
24.29 |
|
|
25,186,504 |
8.12 |
|
|
100,555,118 |
32.40 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
100,555,118 |
32.40 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
11,920,585 |
3.84 |
|
|
127,970 |
0.04 |
|
|
115,221,988 |
37.13 |
|
|
127,270,543 |
41.01 |
|
|
|
|
|
|
17,013,806 |
5.48 |
|
|
|
|
|
|
17,886,258 |
5.76 |
|
|
11,623,289 |
3.75 |
|
|
28,867,173 |
9.30 |
|
|
7,326,080 |
2.36 |
|
|
18,882,254 |
6.08 |
|
|
1,530,502 |
0.49 |
|
|
1,128,337 |
0.36 |
|
|
75,390,526 |
24.29 |
|
Total Public shareholding (B) |
202,661,069 |
65.30 |
|
Total (A)+(B) |
303,216,187 |
97.70 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
7,125,441 |
2.30 |
|
Total (A)+(B)+(C) |
310,341,628 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs.0.100 millionAs on 14.06.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Nationalized or other bank |
|
0.04 |
|
Mutual funds |
|
2.99 |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
50.90 |
|
Bodies
corporate |
|
12.63 |
|
Directors
or relatives of directors |
|
24.54 |
|
Other
top fifty shareholders |
|
3.67 |
|
Other
|
|
5.23 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Non Banking Finance Company |
GENERAL INFORMATION
|
No. of Employees: |
1000 (Confirmed
by Mr. Ajay – Finance Department) |
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Bankers : |
·
Oriental Bank Of Commerce, Harsha Bhavan, E -
Block, ·
Bank
of ·
·
·
Axis Bank ·
Axis Mutual Fund ·
Bank of ·
Canara Bank ·
Central Bank of ·
Dena Bank Limited ·
Deutsche Bank ·
GE Capital ·
HDFC Bank Limited ·
HDFC Limited ·
ICICI Bank ·
IDBI Bank ·
Indian Bank ·
Karnataka Bank ·
Punjab National Bank ·
Reliance Capital Limited ·
State Bank of ·
State Bank of ·
State Bank of ·
State Bank of ·
Syndicate Bank ·
UCO Bank ·
Vijaya Bank ·
Yes Bank Limited |
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Facilities : |
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Financial Institutions |
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Banking
Relations : |
- |
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Auditors : |
|
|
|
|
|
Statutory Auditors: |
Deloitte Haskins
and Sells Chartered Accountants |
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|
|
|
Internal Auditor : |
N.D. Kapur and
Company Chartered Accountants |
|
Address: |
2-A, Shankar Market, Connaught Place, New Delhi-110001 |
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|
|
|
Associates : |
·
Indiabulls Asset Reconstruction Company Limited ·
Indian Commodity Exchange Limited (Formerly Known
as International Multi Commodity Exchange Limited) |
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|
|
|
Subsidiaries : |
·
Indiabulls Insurance Advisors Limited (Formerly
Indiabulls Insurance Advisors Private Limited) ·
Indiabulls Finance Company Private Limited ·
Indiabulls Capital Services Limited ·
Indiabulls Housing Finance Limited ·
Indiabulls Infrastructure Credit Limited
(formerly Indiabulls Commercial Credit Limited) ·
Indiabulls Collection Agency Limited ·
Ibulls Sales Limited (Formerly Fast Loans Services
Limited) ·
Indiabulls Advisory Services Limited (Formerly
known as Divya Shakti Trading Services Limited) ·
Nilgiri Financial Consultants Limited ·
Indiabulls Life Insurance Company Limited ·
Indiabulls Asset Holding Company Limited ·
Indiabulls Asset Management Company Limited ·
Indiabulls Trustee Company Limited ·
Indiabulls Venture Capital Management Company
Limited ·
Indiabulls Venture Capital Trustee Company
Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.2/- Each |
Rs.4000.000 millions |
|
25000000 |
Preference shares |
Rs.300/- Each |
Rs.7500.000 millions |
|
25000000 |
Preference shares |
Rs.157.39/- Each |
Rs.3934.750 millions |
|
|
Total |
|
Rs.1543.475
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
309894521 |
Equity Shares |
Rs.2/- Each |
Rs.619.789
millions |
Of the above:
(a) 76,935,375
(Previous Year 76,935,375) Equity Shares of Face Value of Rs.2/- each are
allotted as fully paid up Bonus Shares by capitalisation of Securities Premium
Account
(b) 500,000
(Previous Year 500,000) Equity Shares of Face Value of Rs.2/- each are issued
for consideration other than cash
As on 14.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.2/- Each |
Rs.4000.000 millions |
|
25000000 |
Preference shares |
Rs.300/- Each |
Rs.7500.000 millions |
|
25000000 |
Preference shares |
Rs.157.39/- Each |
Rs.3934.750 millions |
|
|
Total |
|
Rs.15434.750
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
310255842 |
Equity Shares |
Rs.2/- Each |
Rs.620.512
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
619.789 |
2075.913 |
2075.508 |
|
|
2] Share Application Money Pending allotment |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
39922.231 |
29994.126 |
28861.353 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
40542.020 |
32070.039 |
30936.861 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
36138.708 |
40625.639 |
35595.697 |
|
|
2] Unsecured Loans |
33320.000 |
23080.000 |
73380.000 |
|
|
TOTAL BORROWING |
69458.708 |
63705.639 |
108975.697 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
252.110 |
|
|
|
|
|
|
|
|
TOTAL |
110000.728 |
95775.678 |
140164.668 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
399.910 |
398.588 |
431.011 |
|
|
Capital work-in-progress |
2.880 |
10.445 |
18.104 |
|
|
|
|
|
|
|
|
INVESTMENT |
10022.087 |
13737.467 |
3106.125 |
|
|
DEFERREX TAX ASSETS |
325.725 |
283.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000 |
0.000 |
0.000 |
|
|
Sundry Debtors |
138.298
|
6.530 |
73.189 |
|
|
Cash & Bank Balances |
10357.667
|
22514.645 |
69400.911 |
|
|
Other Current Assets |
1105.200
|
1010.018 |
743.714 |
|
|
Loans & Advances |
98489.356
|
61812.938 |
77909.045 |
|
Total
Current Assets |
110090.521
|
85344.131 |
148126.859 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
19.023
|
17.285 |
75.739 |
|
|
Other Current Liabilities |
6937.469 |
1837.227 |
7063.253 |
|
|
Provisions |
3883.903
|
2143.443 |
4378.439 |
|
Total
Current Liabilities |
10840.395
|
3997.955 |
11517.431 |
|
|
Net Current Assets |
99250.126
|
81346.176 |
136609.428 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
110000.728 |
95775.678 |
140164.668 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14208.091 |
17808.953 |
13256.576 |
|
|
|
Other Income |
85.970 |
26.132 |
21.880 |
|
|
|
TOTAL (A) |
14294.061 |
17835.085 |
13278.456 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
138.392 |
191.939 |
295.774 |
|
|
|
Personal Cost |
1094.982 |
1383.630 |
2080.230 |
|
|
|
Administrative and Other Expenses |
3705.648 |
4341.305 |
1525.430 |
|
|
|
TOTAL (B) |
4939.022 |
5916.874 |
3901.434 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9355.039 |
1191.211 |
9377.022 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5338.845 |
9381.163 |
3647.883 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4016.194 |
2537.048 |
5729.139 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
73.709 |
68.088 |
60.511 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3942.485 |
2468.960 |
5668.628 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1300.882 |
567.239 |
1848.451 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2641.603 |
1901.721 |
3820.177 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1366.396 |
812.188 |
302.958 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend paid on Preference Shares |
78.218 |
118.186 |
58.932 |
|
|
|
Proposed Dividend on Preference Shares |
0.000 |
38.679 |
32.144 |
|
|
|
Proposed Final Dividend on Equity Shares |
1549.473 |
507.259 |
2154.129 |
|
|
|
Dividend for previous year on Equity Shares issued after the year end
pursuant to QIP issue |
112.281 |
0.000 |
27.970 |
|
|
|
Dividend for previous
year on Equity Shares issued after the year end pursuant to ESOPS Allotment |
0.221 |
0.000 |
0.000 |
|
|
|
Corporate
Dividend Tax on Dividend paid on Preference Shares |
13.293 |
20.086 |
10.015 |
|
|
|
Corporate Dividend
Tax on Proposed Dividend on Preference Shares |
0.000 |
6.573 |
5.463 |
|
|
|
Corporate
Dividend Tax on Proposed Final Dividend on Equity shares |
257.348 |
86.209 |
366.094 |
|
|
|
Corporate
Dividend Tax on Dividend for previous year on Equity Shares issued
after the year end pursuant to QIP issue |
19.082 |
0.000 |
4.754 |
|
|
|
Corporate
Dividend Tax on Dividend for previous year on Equity Shares issued
after the year end pursuant to ESOPS Allotment |
0.038 |
0.000 |
0.000 |
|
|
|
Transfer to
General Reserve |
264.200 |
190.175 |
381.970 |
|
|
BALANCE CARRIED
TO THE B/S |
1185.525 |
1366.396 |
764.035 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
8.72 |
6.78 |
15.08 |
|
|
|
Diluted |
8.64 |
6.72 |
14.59 |
|
QUARTERLY RESULTS
|
Particulars |
|
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
|
Net Sales |
|
4064.620 |
4843.880 |
|
Total Expenditure |
|
895.520 |
1084.070 |
|
PBIDT (Excl OI) |
|
3169.100 |
3759.810 |
|
Other Income |
|
70.740 |
70.610 |
|
Operating Profit |
|
3239.840 |
3830.420 |
|
Interest |
|
1311.290 |
1662.490 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
1928.550 |
2167.930 |
|
Depreciation |
|
21.160 |
21.000 |
|
Profit Before Tax |
|
1907.390 |
2146.930 |
|
Tax |
|
624.990 |
670.290 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
1282.410 |
1476.640 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
1282.410 |
1476.640 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
18.48
|
10.66 |
28.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
27.75
|
13.86 |
42.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.57
|
2.88 |
3.82 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.08 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.98
|
2.11 |
3.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
10.16
|
21.35 |
12.86 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
(a) Dues to Micro and Small Enterprises |
- |
- |
- |
|
(b) Dues to others |
19.023 |
17.285 |
|
Financial
Performance 2009-10
Profit after tax
of IBFSL on a consolidated basis almost tripled to Rs 3074.800 millions in FY
2010 against Rs.105.96 millions in FY 2009. This was possible because of the
improved relationship with PSU banks leading to significant fall in cost of
funds.
Although, the
total revenue of IBFSL on a consolidated basis stood at Rs.16350.400 millions
in FY 2010 against Rs.20057.900 millions in FY 2009, yet they were successful
in growing their loan assets by a healthy 23.41% to Rs.110232.400 millions as
on 31 March 2010 from 89319.100 millions as on 31 March 2009. On a standalone
basis also, although total revenue of IBFSL was at Rs.14294.100 millions in FY
2010 against Rs.17835.100 millions but profit after tax increased by 38.91% to
Rs.2641.600 millions.
Focused Business
Strategy
Constantly taking
cues from the macro landscape, IBFSL has rejiged its business strategy, whereby
there has been an enhanced focus on the mortgage segment, while toning down its
focus on segments such as commercial
vehicle financing,
and loans to small and medium enterprises (SMEs). Mortgage financing is less
susceptible to economic cycles in terms of growth and portfolio quality visa-
is other retail asset classes such as auto loans and personal loans. Presently
IBFSL has a solid loan asset book of more than Rs 11,000 crore out of which 64%
constitutes mortgage loans. The stability in their existing businesses as well
their reduced costs of funding provide them the confidence and ability to offer
home loans to the growing Indian middle-class. Their major thrust for the
coming year is to grow their home loan business in size and scale. Home loans
grew at 25% annually over the past five years. As per industry estimates, this
rate is expected to be sustained over the coming years. they believe, that the
home loan market is at a nascent stage in
Developing a
strong and stable core
As on March 31,
2010 IBFSL boast of making a cumulative disbursement of Rs. 328880.000 millions
since inception. On the other hand IBFSL’s resource profile has gradually
improved over the past two years, with lower dependence on short-term market
borrowing, stronger and larger number of lender relationships, and lower
borrowing costs. The Company raises a substantial proportion of its incremental
resources through long-term bank loans and has also steadily increased the
number of its borrowing sources. It also has the flexibility to securitize part
of its portfolio to generate additional funding as and when required. Secondly,
Company managed its liquid funds very efficiently and continued to bring down
the cash levels further to Rs 1200 cr. These initiatives have helped IBFSL to
successfully bring down its cost of funds in last fiscal. The reduction in
funding cost gave IBFSL an edge to compete profitably with established players
in the home loans market. At the same time IBFSL remains one of the highest
capitalized NBFCs with a capital adequacy ratio of 32.42%.
Management
Discussion and Analysis
Subject is one of
Economic Scenario
The stabilisation
of GDP growth pattern and a healthy trend visible in the vital parameters of
the economy bodes well for the overall growth and development of the country.
However, even as
the economy appears to have weathered the crisis and reversed the effects of
slow down and picked up speed, the macro environment continues to be
challenging. This is reflected in issues such as inflationary trends and as
well as ensuring inclusive growth for all sections of the Indian society.
It is here, they
feel that Subject can play a small part in contributing to the overall growth
of the Indian economy. The stability in their existing businesses as well their
reduced costs of funding provide them the confidence and ability to offer home
loans to the growing Indian middleclass. Their major thrust for the coming year
is to grow their home loan business in size and scale. Home loans grew at 25%
annually over the past five years. As per industry estimates, this rate is
expected to be sustained over the coming years. They believe that the home loan
market is in an early stage and they want to position theirselves to capture
this growth.
Industry overview
The global credit
crisis of Fall 2008 has been a blessing in disguise for us. Firstly, they are
proud that they weathered the storm and came out unscathed.
Second, it has
helped them focus on their operations and strategy. Third, they have emerged as
a recognized leader with both their customers and their financial partners,
allowing the Company to pursue growth more aggressively.
Today, the
Government realises the need for increased geographical reach of banks and
improving access to the financial services through the length and breadth of
the country. The government is considering the grant of banking licenses to Non Banking Financial
Companies which meet the RBI criteria in this regard. they welcome
such a move by the
RBI.
Business Review
IBFSL is one of
IBFSL generates
its revenues through the following activities:
Financing
activities:
Which involves offering various lending
products including individual home mortgages and other housing loans; secured
and unsecured commercial loans to SMEs; margin loans, or “loans against
shares,” secured by marketable, liquid securities; secured commercial vehicle
and tractor loans. The financing activity generates revenues from interest
payments made by their borrowers, loan processing fees and the sale of loans
receivables to banks and other NBFCs.
Investment
activities: A portion of IBFSL cash holdings is invested in debt mutual funds,
debt securities and other investments, and as at March 31, 2010, the value of
IBFSL consolidated investments was Rs. 11,683.4 millions. Investment activity
generates revenues from dividends and interest payments made upon such
securities.
Fee-based
activities: Such activities involve selling life insurance policies, pension
plans and other financial products by IBFSL in its capacity as corporate agent
for insurance companies such as Max New York Life. Fee based activities
generate revenues from fees and commissions paid on each such policy or product
sold by IBFSL.
IBFSL recorded a
total income on a consolidated basis of Rs. 16,350.4 millions for the fiscal year
ended March 31, 2010, vs Rs. 20,057.9 millions for the prior fiscal year. The
profitability of the Company on a consolidated basis increased by 190.2% with a
net profit of Rs. 3,074.8 millions being recorded for the fiscal year ended
March 31, 2010 as against Rs. 1059.6 millions for the previous financial year.
The increase was primarily attributable to lower borrowing costs due to the
easing of the global credit crisis.
Business Strengths
The Company
believes that its success in becoming one of
driven by the following:
Strong financial
position and equity capital base The Company believes that its strong financial
position in addition to a healthy equity capital base and access to large
credit lines, bank facilities and the commercial paper market, allows it to
acquire customers and provide financing at attractive terms by presenting the
Company as a credible and trustworthy counterpart for consumers to do business
with.
CRISIL expands borrowing capacity
CRISIL reaffirmed
its AA- rating on the Company and revised its rating outlook on IBFSL’s
long-term debt instruments and bank facilities from ‘Stable’ to ‘Positive’.
CRISIL has expanded the total borrowing capacity of IBFSL from Rs. 90,400 millions
to Rs. 205,400 millions. “CRISIL believes that IBSFL’s business risk profile
will improve over the medium term, on the back of expected improvement in the
Company’s asset quality and resource profile.”
“The rating may be
upgraded if IBFSL scales up its mortgage business without compromising on its
asset
quality and
maintaining its earnings profile.” (Source : CRISIL)
Strong relationships with banks
The Company has
strong banking relationship with bankers, including with 18 public sector banks
in
Cost of Funding has come down materially
IBFSL’s cost of
funding as of March 31, 2010 came down significantly as compared to March 31,
2009. This reduced cost was a function of securing cheaper long term funding
from the banks. Additionally, IBFSL relies on NCDs and short-term borrowing
from mutual funds. Cost of funding from these sources had also come down over
the year. IBFSL’s reduced cost of funding makes it competitive on offering home
loans to customers.
Broad offering of lending products designed to
address their clients’ needs
The broad offering
of lending products by the Company has enabled it to gain new clients and
increase revenues, thereby, helping to differentiate it from other single
product offering NBFCs in lending business. The broad array of products, such
as home loans, loans against properties, business loans and commercial vehicle
financing allow the Company to cross-sell multiple products to its clients and,
in turn, capture a greater share of their clients’ total financial products
borrowing.
Strong brand recognition
The Company is one
of
Experienced senior management team
IBFSL management
team has a continued and strong focus on identifying quality growth areas that
are capable of providing high returns. It has demonstrated strong growth with a
focus on minimising the risk profile of the Company. Under the leadership of
the management team, the Company has diversified into various profitable
business segments. In addition, the management promotes a result-oriented
culture that rewards employees on the basis of merit. In order to strengthen
the credit appraisal and risk management systems, the Company has hired a
number of senior managers who have extensive experience in the Indian banking
sector and specialised lending finance firms providing loans to retail
customers, to develop and implement the credit policies of the Company.
Business Strategy
The Company’s
strategy is to grow IBFSL into a stable, secure and sustainable business that
is focused on maximising growth opportunities within the financial services
industry. It is their objective to make a sustainable business whose
foundations are built on providing financial products and services to a diverse
client base rather than focus on one particular segment.It is their intention
to grow IBFSL that can grow the business into a sustainable and steady business
rather than maximising short term earnings and growth. Their business strategy
is guided by the following principles:
IBFSL to be one of
India’s leading home loan providers There is a genuine demand to cater to the
growing population looking to purchase homes in India driven by rapid
urbanisation and rise in the Indian middle class. Due to their high cost of
funding in the past it was difficult for IBFSL to be competitive in the home loan
segment.
However, this has
changed as the cost of funding has come down significantly. As such, they are
able to offer home loans at competitive and attractive rates to their
customers. With the objective of growing the home loan business, they have ramped
up their direct selling team to close to 1,000 people. they are leveraging
IBFSL’s existing
extensive branch
network as well as open new locations strategically so that they are closer to
their customers.
IBFSL has been one
of the most widely recognized success stories of
Continue to
grow their client base while maintaining a high-quality loan portfolio
The Company
started its consumer finance business by issuing small-ticket unsecured loans,
which generally earn higher yields and profit margins. Over the past three
years, however, it has moved towards more secured lending such as
mortgage-backed loans and commercial vehicle refinancing. As the Company
continues to grow its client base, it shall maintain its focus on secured
lending to lower risk segments in order to maintain a high-quality loan
portfolio and minimize client delinquencies and defaults.
Continue to diversify sources of funding
Because the
Company is a non-deposit taking NBFC, it relies on short, mid and long-term
funding from banks,
NBFCs and NCD and
Commercial Paper market. While it presently has sufficient funds to meet the
short-term
funding needs, the
Company shall continue to identify various alternative sources of funding to
maintain a low cost of funds and shall continue to assign its loan receivables
to banks and other NBFCs, to enhance
liquidity.
Maintain strict risk management policies for their
loan portfolios
The Company is
focussed on building a large loan portfolio with minimum delinquency risk.
Therefore, it will continue to maintain strict risk management standards to
reduce delinquency risks and promote a robust recovery process.
Multi commodity exchange
We are extremely
happy and proud that Indian Commodity Exchange Limited (ICEX) promoted by
theCompany as a Joint Venture with MMTC, has gone live on November 27, 2009.
ICEX is the 4th national level commodity exchange in the country recognized by
the Government of India, and the first exchange that has been set up as a
public-private partnership with an initial paid up capital of Rs.1000 millions.
Government run Indian Potash Limited (IPL), KRIBHCO, and leading infra-finance
institution IDFC are among other leading shareholders in the exchange.
ICEX has got good
response from amongst the commodity brokers and physical market participants as
evident from the fact that in a short span of 5 months, exchange has got more
than 400 members across the commodity value chain spread all over the country.
It has been achieving an average daily turnover of Rs. 2500 crore to Rs. 3000
crore. Most recently, on April 28, 2010, the exchange entered into a strategic
tie-up with The Bombay Bullion Association (BBA), which is the largest body of
physical market players in Gold and Silver comprising about 500 members.
Through this association, exchange will provide membership to all the BBA
members and jointly try to deepen the markets and encourage wider participation
by providing
REVIEW OF OPERATI
ONS
FY2010 – Key
Financial Highlights
The Total Revenue
of the Company are Rs. 14294.100 millions in Financial Year 2009-10 as compared
to Rs1,7835.100 millions in Financial Year 2008-09.
The Profit before
Tax of the Company is at Rs. 3942.500 millions in Financial Year 2009 - 10 as
compared to Rs.2469.000 millions in Financial Year 2008-09.
The Profit after
Tax (PAT) has increased substantially during the Financial Year 2009-10. PAT is
Rs. 2641.600 millions Financial Year 2009-10 as compared to Rs.1901.700
millions in FY 2008-09.
Earning Per share
(basic) is Rs. 8.72 per share in
Financial Year
2009-10 as compared to Rs. 6.78 per share in Financial Year 2008-09.
The Company has
recommended 250% dividend amounting to Rs. 5 for every share of Face Value of
Rs. 2 as compared to Rs. 2 for every share in FY 2008-09.
The Company is well
capitalized with 32.42% CRAR.
Strong Loan Asset Growth
The Loan Assets
have grown 29.23% from Rs.76729.000 millions on March 31, 2009 to Rs.
991550.000 millions as of March 31, 2010.
Cumulative Loan
Disbursements of Rs 295910 millions (from inception to March 2010).
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED SEPTEMBER 30, 2010 (AS STANDALONE ENTITY)
(Rs.
in millions)
|
Particulars |
Quarter ended |
Half year ended |
|
30.09.2010 (Unaudited) |
30.09.2010 (Unaudited) |
|
|
1 a) Income from
Operations |
4575.522 |
8420.745 |
|
b) Other
Operating Income |
268.361 |
487.757 |
|
Total |
4843.883 |
8908.502 |
|
2 Expenditure |
|
|
|
a) Employees
Cost |
284.610 |
592.870 |
|
b) Depreciation |
21.002 |
42.157 |
|
c) Operating
Expenses |
32.600 |
61.573 |
|
d)
Administrative & Other Expenses |
766.867 |
1325.155 |
|
Total |
1105.079 |
2021.755 |
|
3 Profit from
Operations before Other Income, Interest & Exceptional Items (1-2) |
3738.804 |
6886.747 |
|
4 Other Income |
70.614 |
141.356 |
|
5 Profit before
Interest & Exceptional Items (3+4) |
3809.418 |
7028.103 |
|
6 Interest and
Finance Charges |
1662.491 |
2973.781 |
|
7 Profit after
Interest but before Exceptional Items (5-6) |
2146.927 |
4054.322 |
|
8 Exceptional
Items |
-- |
-- |
|
9 Profit from
Ordinary Activities before Tax (7-8) |
2146.927 |
4054.322 |
|
10 Tax expense
(including Deferred Tax) |
670.290 |
1295.276 |
|
11 Net Profit
from Ordinary Activities after Tax (9-10) |
1476.637 |
2759.046 |
|
12 Extraordinary
Items (net of tax expense Rs. NIL) |
-- |
-- |
|
13 Net Profit
for the period (11-12) |
1476.637 |
2759.046 |
|
14 Preference
Dividend for the period (including corporate dividend tax thereon) |
-- |
-- |
|
15 Paid-up Equity
Share Capital (Face Value of Rs.2 per Equity Share) |
620.683 |
620.683 |
|
16 Paid-up
Preference Share Capital |
-- |
-- |
|
17 Reserves
excluding Revaluation Reserves as per Balance Sheet as on March 31, 2010 |
-- |
-- |
|
18 Earnings per Share before extraordinary items (Face Value
of Rs.2 per Equity Share).2 per |
|
|
|
-Basic
(Amount in Rs.) |
4.76 |
8.90 |
|
-Diluted (Amount
in Rs.) |
4.72 |
8.82 |
|
Earnings
per Share after extraordinary items (Face Value of Rs.2 per Equity Share)Value
of Rs.2 |
|
|
|
-Basic
(Amount in Rs.) |
4.76 |
8.90 |
|
-Diluted (Amount
in Rs.) |
4.72 |
8.82 |
|
19 Public
Shareholding |
|
|
|
- Number of
Equity Shares |
202,661,069 |
202,661,069 |
|
- Percentage of
shareholding |
|
|
|
20 Promoters
and promoter group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
-Number of
shares |
-- |
-- |
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
|
- Percentage of
shares (as a % of the total share capital of the company) |
-- |
-- |
|
b)
Non-encumbered |
|
|
|
-Number of
shares |
100,555,118 |
100,555,118 |
|
- Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
|
- Percentage of
shares (as a % of the total share capital of the company) |
32.40% |
32.40% |
|
Items exceeding
10% of Total Expenditure --Bad Loans
written off (Net) |
491.430 |
491.430 |
Notes to the Financial Results:
1. The consolidated and standalone financial results of subject for the quarter
ended September 30, 2010 have been reviewed by the Audit Committee and approved
at the meeting of the Board of Directors held on October 21, 2010. The
financial results pertaining to IBFSL as a standalone entity have been
subjected to a limited review by the Statutory Auditors of the Company.
2. During the
current quarter, in terms of Chapter VIII of the SEBI Regulations in respect of
the issue of the Securities of the Company to QIBs under Qualified Institutions
Placement, the Company issued and allotted the following Securities: (i) 5,500
- 10 per cent, secured redeemable non-convertible debentures of face value of
Rs.1.000 million each due August 2015 for cash aggregating to Rs.5500.000
millions; (ii) 1,000 - 8.9 per cent, secured redeemable non-convertible
debentures of face value of Rs.1.000 million each due February 2012 for cash
aggregating to Rs.1000.000 millions; (iii) 27,500,000 Share Warrants being
issued at a Warrant Issue Price of Rs.5 per Share Warrant, with a right
exercisable by the Warrant holder to exchange each Warrant with one equity
share of the Company of face value Rs.2 each, any time before the expiry of 60
months from the date of allotment of the Warrants, at a Warrant Exercise Price
of Rs.225 per equity share. The Warrant Issue Price of Rs.5 per Share Warrant
is neither adjustable with the Warrant Exercise Price, nor refundable by the
Company, hence credited to Capital Reserve Account.
3. During the
current quarter, upon exercise of stock options vested in terms of (1) IBFSL-ICSL
Employees Stock Option Plan - 2006 (2) IBFSL-ICSL Employees Stock Option Plan
II - 2006 and (3) Employees Stock Option Plan- 2008, by certain eligible
employees, the Company issued 85,786 (Eighty Five Thousand Seven Hundred And
Eighty Six) Equity shares of face value Rs. 2/- each to such employees, being
4,248 Equity shares allotted under IBFSL-ICSL Employees Stock Option Plan -
2006, 3,828 Equity shares allotted under IBFSL - ICSL Employees Stock Option
Plan II - 2006 and 77,710 Equity shares allotted under Employees stock Option
Plan - 2008. Consequent to the said allotment, the paid-up Equity share capital
of the Company stands increased from Rs.620.512 millions divided into
310,255,842 Equity shares of face value Rs.2/- each to Rs.620.683 millions divided
into 310,341,628 Equity shares of face value Rs.2/- each.
4. During the
current quarter, the Compensation Committee of the Company re-granted under the
"Employees Stock Option Plan 2008", 2,30,400 Stock Options
representing an equal number of equity shares of face value Rs.2/- each at an
exercise price of Rs.158.50, being the latest available closing market price on
the National Stock Exchange of India Limited as on July 15, 2010. The Stock
Options so granted, shall vest within 10 years beginning from July 17, 2011,
the first vesting date. The options granted under each of the slabs, can be
exercised within a period of five years from the relevant vesting date.
5. Subsequent to
the quarter end on October 4, 2010, the Forward Markets Commission (FMC) has
approved the Company’s proposal for sale of its 26% stake in Indian Commodity
Exchange Limited to Reliance Exchange next Limited.
6. The members of
the Company at their Extraordinary General Meeting dated September 30, 2010
approved the IBFSL ESOP -2010 scheme consisting of 30,000,000 stock options
representing 30,000,000 fully paid up equity shares of Rs. 2/- each of the
Company to be issued in one or more tranches to eligible employees of the
Company or to eligible employees of the subsidiaries of the Company.
7. Subsequent to
the quarter end, in terms of the approval accorded at an Extra Ordinary General
Meeting of the members of the Company held on September 30, 2010, the
“Indiabulls Employees’ Welfare Trust” has been formed on October 04, 2010 with
an initial corpus of Rs.50,000, to administer and implement the Company’s
current Employee Stock Option Schemes (“ESOP”) and any future ESOP / Employee
Stock Purchase Schemes. IBFSL being one of the Settlors, has contributed Rs.
10,000 as initial corpus towards establishment of the said Trust.
8. In respect of
Non Convertible Debentures (NCDs) of Rs.12600.000 millions issued on July 06,
2010 and Rs.2500.000 millions issued on August 09, 2010, the premium on
redemption (Accrued but not due upto September 30, 2010) amounting to
Rs.302.351 millions has been adjusted against the Securities Premium Account.
9. The Debenture issue expenses amounting to Rs.348.824 millions has
been adjusted against the Securities Premium Account.
10. During the
current quarter, CRISIL has upgraded its rating to "AA/Stable"
(pronounced "Double A rating with stable outlook") from its earlier
assigned rating "AA-/Positive" (pronounced "Double A minus
rating with positive outlook") to the Company's borrowings in the form of
NCDs and Bank Borrowings of Rs. 70.3988 Billion. Further, CRISIL has reaffirmed
its P1+ rating to the Short Term Debt Programme of Rs.70 Billion of the
Company.
11. During the
current quarter, CRISIL has upgraded its rating to "AA/Stable"
(pronounced "Double A rating with stable outlook") from its earlier
assigned rating "AA-/Positive" (pronounced "Double A minus
rating
with positive
outlook") to the borrowings in the form of NCDs and Bank Borrowings of
Indiabulls Housing Finance Limited of Rs.55 Billion and Indiabulls Infrastructure
Credit Limited of Rs.5 Billion (wholly owned subsidiaries of the Company).
Further, CRISIL has reaffirmed its P1+ rating to the Short Term Debt Programme
of Indiabulls Housing Finance Limited and Indiabulls Infrastructure Credit
Limited (wholly owned subsidiaries) of Rs.10 Billion each.
12. During the
current quarter, the Company has invested Rs.90.480 millions in one of its
newly formed wholly owned subsidiary, Indiabulls Alternative Asset Management
Private Limited (IAAMPL). As at September 30, 2010, IAAMPL issued and allotted
shares worth Rs.0.172 million to the Company and the balance Rs.90.308 millions
is lying as share application money pending allotment.
13. The Board of Directors of the Company at its meeting held on October
21, 2010 has declared an interim dividend of Rs. 5 per share.
14. Segment Results
(Rs.
in millions)
|
Particulars |
Quarter ended |
Half year ended |
|
30.09.2010 (Unaudited) |
30.09.2010 (Unaudited) |
|
|
1 Segment
Revenue |
|
|
|
Investing & Financing
related activities |
4842.811 |
8860.663 |
|
Fee Income |
1.323 |
47.839 |
|
Others |
(0.251) |
-- |
|
Total |
4843.883 |
8908.502 |
|
Less: Inter
Segment Revenue |
-- |
-- |
|
Income from
Operations |
4843.883 |
8908.502 |
|
2 Segment Results
profit before Tax and after Interest |
|
|
|
Investing &
Financing related activities |
2237.573 |
4114.074 |
|
Fee Income |
11.89 |
47.507 |
|
Others |
(5.251) |
(4.999) |
|
Total |
2233.511 |
4156.582 |
|
(i) Other un-allocable
expenditure net off unallocable income |
86.584 |
102.260 |
|
Total Profit
Before Tax |
2146.927 |
4054.322 |
|
3 Capital
Employed (Segment Assets - Segment Liabilities) |
|
|
|
Investing &
Financing related activities |
39556.766 |
39556.766 |
|
Fee Income |
37.545 |
37.545 |
|
Others |
-- |
-- |
|
Unallocable
Capital Employed |
1437.821 |
1437.821 |
|
Total |
41032.132 |
41032.132 |
Note:
a) “Fee Income” business
segment mainly comprises of Financial Service related fee based advisory
services income, selling of Insurance products as a Licensed Corporate Agent;
and other related ancillary services.
b) “Others” business
segment constitutes profit / (loss) on investment / dealing in securities. This
not being the normal business activity of the company the same is shown as
“Others”.
Number of Investor
Complaints received and disposed off during the quarter ended September 30,
2010:
Opening: Nil,
Received: 214, Disposed Off: 214, Pending: Nil
For and on behalf of Board of Directors
15. Statement of Assets and Liabilities
(Rs.
in millions)
|
Particulars |
As at 30.09.2010 (Unaudited) |
|
Shareholders Funds |
|
|
(a) Share
Capital |
620.683 |
|
(b) Reserves and
Surplus |
40411.448 |
|
Loan Funds |
112034.269 |
|
Total |
153066.400 |
|
|
|
|
Fixed Assets
(including Capital work in progress / Capital Advances) |
392.835 |
|
Investments |
25719.670 |
|
Deferred Tax Assets
(Net) |
333.448 |
|
Current Assets,
Loans And Advances |
|
|
(a) Sundry
Debtors |
1.437 |
|
(b) Cash and
Bank Balances |
16264.277 |
|
(c) Other
Current Assets |
1332.163 |
|
(d) Loans and
Advances |
123912.041 |
|
|
141509.918 |
|
Less: Current Liabilities
And Provisions |
|
|
(a) Current
Liabilities |
10523.534 |
|
(b) Provisions |
4365.937 |
|
|
14889.471 |
|
Net Current
Assets |
126620.447 |
|
Total |
153066.400 |
16. The Analytical Ratios relating to Standalone results
of subject are as under:
(Rs.
in millions)
|
Particulars |
Half year ended |
|
30.09.2010 (Unaudited) |
|
|
(I) Capital
Adequacy Ratio |
21.81% |
|
(II) NPA Ratio |
|
|
(a) Amount of
Gross Non Performing Assets |
1616.255 |
|
(b) Amount of Net
Non Performing Assets |
689.277 |
|
(c) % of Gross
Non Performing Assets |
1.38% |
|
(d) % of Net Non
Performing Assets |
0.59% |
|
(III) Return on Assets |
1.91% |
17. Number of Investor Complaints received and disposed off during the quarter
ended September 30, 2010:
Opening: Nil, Received: 214, Disposed Off: 214, Pending: Nil
18. Figures for the prior year / period have been regrouped and / or
reclassified wherever considered necessary.
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
L67120DL2000PLC103183 |
|
Name of the
company |
INDIABULLS
FINANCIAL SERVICES LIMITED |
|
Address of the
registered office or of the principal place of business in |
F-60, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Book Debts |
|
Particular of
charge holder |
Bank of |
|
Nature of
description of the instrument creating or modifying the charge |
Deed of
Hypothecation dated November 13, 2010 executed by Indiabulls Financial
Services Limited in favour of Bank of India. |
|
Date of
instrument Creating the charge |
13.11.2010 |
|
Amount secured by
the charge |
Rs.1500.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 8.50% p.a fixed
for one year with monthly rests or at such other revised rate/s as may be
prescribed by the Bank from time to time. Terms of
Repayment By bullet
repayment after one year from the date of first draw down. Margin Minimum asset
cover is 1.33 Extent and
Operation of the charge First pari passu
charge on book debts / receivables. |
|
Short particulars
of the property charged |
All the present
and future Book debts, outstanding monies, deposits, receivables, claims, bills,
contracts, securities etc of the Company |
FIXED ASSETS:
·
·
Computers
·
Furniture and Fixtures
·
Office Equipment
·
Vehicle
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.45.20 |
|
|
1 |
Rs.70.27 |
|
Euro |
1 |
Rs.59.99 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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.