MIRA
INFORM REPORT
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Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
DSP MERRILL LYNCH CAPITAL LIMITED |
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Registered
Office : |
Mafatlal Centre, 8th Floor, Nariman Point, Mumbai-400021, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
07.04.2005 |
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Com. Reg. No.: |
152497 |
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CIN No.: [Company Identification
No.] |
U65990MH2005PLC152497 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
MUMD12561D |
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PAN No.: [Permanent Account No.] |
AACCD1563G |
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Legal Form : |
A closely held Public Limited Liability Company. |
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Line of Business
: |
The company engaged in financing and lending activities. It also
undertakes principal transactions namely trading in securities, derivative
instruments and other financial products. |
RATING & COMMENTS
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MIRA’s Rating : |
A (61) |
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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 |
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Maximum Credit Limit : |
USD 63000000 |
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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 well established and reputed company having fine track. Financial
positions of the company appears to be sound. Fundamentals are strong and
healthy. 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 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
Management Non Co-Operative.
LOCATIONS
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Registered Office/ Corporate : |
Mafatlal Centre, 8th Floor, Nariman Point, Mumbai-400021, |
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Tel. No.: |
91-22-66328000/22804100 |
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Fax No.: |
91-22-22821827 |
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E-Mail : |
DIRECTORS
As on 09.08.2010
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Name : |
Mr. Pradeep S Dokania |
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Designation : |
Director |
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Address : |
Flat 16 B-1, 16th Floor, Great Eastern Royale, |
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Date of Birth/Age : |
02.11.1956 |
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Date of Appointment : |
07.04.2005 |
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Name : |
Mr. Jayesh Jayantilal Mehta |
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Designation : |
Director |
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Address : |
8/55, |
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Date of Birth/Age : |
21.12.1963 |
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Date of Appointment : |
12.08.2005 |
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Name : |
Mr. Kumar Mahendrabhai Shah |
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Designation : |
Director |
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Address : |
B/9, Ajinkya Apartment, 2nd Floor, |
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Date of Birth/Age : |
12.02.1963 |
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Date of Appointment : |
07.04.2005 |
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Name : |
Mr. S Ranganathan |
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Designation : |
Director |
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Address : |
B 1202, 12th Floor, Tridev Apartmetn, Bhakti Marg, Mulund
West, Mumbai-400080, |
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Date of Birth/Age : |
03.11.1963 |
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Date of Appointment : |
27.10.2009 |
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Name : |
Mr. Kaku Pradeep Nakhate |
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Designation : |
Director |
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Address : |
41, Yashodhan, 158, Balchandra Marg, Hindu Colony, Dadar,
Mumbai-400014, |
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Date of Birth/Age : |
25.04.1966 |
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Date of Appointment : |
14.07.2010 |
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Name : |
Mr. Vineet Anurag |
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Designation : |
Director |
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Address : |
C-1607 |
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Date of Birth/Age : |
01.12.1970 |
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Date of Appointment : |
28.10.2009 |
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Name : |
Mr. Atul Singh |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
02.08.1973 |
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Date of Appointment : |
19.10.2007 |
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Name : |
Mr. Vijay Shinjini |
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Designation : |
Director |
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Address : |
201 Floor, Sea Flama, |
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Date of Birth/Age : |
09.05.1967 |
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Date of Appointment : |
28.10.2009 |
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Date of Ceasing: |
09.08.2010 |
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Name : |
Mr. Krishna V Iyer |
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Designation : |
Director |
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Address : |
B 3 -42, |
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Date of Birth/Age : |
04.05.1968 |
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Date of Appointment : |
19.10.2007 |
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Date of Ceasing: |
13.10.2009 |
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Name : |
Mr. Kevan Vincent Watts |
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Designation : |
Director |
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Address : |
Frankham Manor, |
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Date of Birth/Age : |
27.12.1950 |
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Date of Appointment : |
28.10.2009 |
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Date of Ceasing: |
14.07.2010 |
KEY EXECUTIVES
|
Name : |
Mr. S Ranganathan |
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Designation : |
Manager |
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Address : |
B 1202, 12th Floor, Tridev Apartment, Bhakti Marg, Mulund
West, Mumbai-400080, |
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Date of Birth/Age : |
03.11.1963 |
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Date of Appointment : |
27.07.2010 |
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Name : |
Mr. Sandeep Ramesh Joshi |
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Designation : |
Secretary |
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Address : |
D – 1303, Panchasheel Height Mahavir Nagar, Kandivli West,
Mumbai-400067, |
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Date of Birth/Age : |
30.05.1970 |
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Date of Appointment : |
03.04.2008 |
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Name : |
Mr. Kumar Mahendrabhai Shah |
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Designation : |
Manager |
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Address : |
B/9, Ajinkya Apartment, 2nd Floor, |
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Date of Birth/Age : |
12.02.1963 |
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Date of Appointment : |
13.04.2005 |
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Date of Ceasing: |
12.04.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 20.03.2007
|
Names of Shareholders |
No. of Shares |
|
DSP Merrill Lynch Limited, |
55000000 |
As on 09.08.2010
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Names of Shareholders |
|
No. of Shares |
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DSP Merrill Lynch Limited, |
|
149999994 |
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Pradeep Dokania |
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1 |
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Kumar Shah |
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1 |
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Shitin Desai |
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1 |
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Jayesh Jayantilal Mehta |
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1 |
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Charu Sippy |
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1 |
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1 |
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Total |
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150000000 |
As on 09.08.2010
|
Equity Share Breakup |
|
Percentage of Holding |
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Category |
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Bodies
corporate |
|
100.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company engaged in financing and lending activities. It also undertakes
principal transactions namely trading in securities, derivative instruments
and other financial products. |
GENERAL INFORMATION
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No. of Employees : |
Information denied by the management. |
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Bankers : |
HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel W,
Mumbai-400018, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Address : |
252, Veer Savarkar Marg, |
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Holding Company: |
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Ultimate Controlling Enterprises: |
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Controlling Enterprises: |
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Fellow Subsidiary: |
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Associates: |
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CAPITAL STRUCTURE
As on 09.08.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210000000 |
Equity Shares |
Rs.10/- each |
Rs.2100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
205000000 |
Equity Shares |
Rs.10/- each |
Rs.2050.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2050.000 |
2050.000 |
2050.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
13901.107 |
13367.924 |
13015.017 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
15951.107 |
15417.924 |
15065.017 |
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LOAN FUNDS |
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1] Secured Loans |
15149.226 |
27707.319 |
40758.017 |
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2] Unsecured Loans |
0.000 |
500.000 |
19906.393 |
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TOTAL BORROWING |
15149.226 |
28207.319 |
60664.410 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
31100.333 |
43625.243 |
75729.427 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
9.748 |
9.633 |
12.783 |
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Capital work-in-progress |
0.405 |
0.320 |
0.000 |
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INVESTMENT |
12585.000 |
4729.693 |
13979.624 |
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DEFERREX TAX ASSETS |
722.096 |
333.417 |
65.243 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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Inventories |
8363.239
|
1135.169 |
6035.495 |
|
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Sundry Debtors |
0.000
|
0.000 |
159.419 |
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Cash & Bank Balances |
17.621
|
18945.125 |
10675.333 |
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Other Current Assets |
345.981
|
1095.924 |
53.570 |
|
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Loans & Advances |
11346.911
|
18598.973 |
46339.270 |
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Total
Current Assets |
20073.752
|
39775.191 |
63263.087 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
63.259
|
38.979 |
185.014 |
|
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Other Current Liabilities |
2098.724
|
309.006 |
1443.378 |
|
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Provisions |
132.119
|
887.415 |
18.999 |
|
Total
Current Liabilities |
2294.102
|
1235.400 |
1647.391 |
|
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Net Current Assets |
17779.650
|
38539.791 |
61615.696 |
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MISCELLANEOUS EXPENSES |
3.434 |
12.389 |
56.081 |
|
|
|
|
|
|
|
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TOTAL |
31100.333 |
43625.243 |
75729.427 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
|
|
|
|
|
Income |
1176.975 |
4494.419 |
12729.777 |
|
|
|
Other Income |
2644.247 |
2032.728 |
1234.781 |
|
|
|
TOTAL |
3821.222 |
6527.147 |
13964.558 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Borrowing costs |
175.003 |
1703.437 |
5091.967 |
|
|
|
Employee costs |
183.130 |
197.635 |
374.563 |
|
|
|
Operating and other expenses |
1378.394 |
1881.447 |
548.005 |
|
|
|
Loss / profit on principal transactions, net |
1227.418 |
2198.804 |
0.000 |
|
|
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TOTAL |
2963.945 |
5981.323 |
6014.535 |
|
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|
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
857.277 |
545.824 |
7950.023 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
6.768 |
7.119 |
6.681 |
|
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|
|
|
|
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|
PROFIT BEFORE
TAX |
850.509 |
538.705 |
7943.343 |
|
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|
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Less |
TAX |
317.326 |
224.048 |
1815.925 |
|
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|
|
|
|
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|
PROFIT AFTER TAX
|
533.183 |
314.657 |
6127.418 |
|
|
|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5700.789 |
5449.063 |
547.129 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
106.637 |
62.931 |
1225.484 |
|
|
BALANCE CARRIED
TO THE B/S |
6127.335 |
5700.789 |
5449.063 |
|
|
|
|
|
|
|
|
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|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Professional Fees |
170.051 |
212.640 |
107.432 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.60 |
1.53 |
32.80 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
13.95
|
4.82 |
43.88 |
|
|
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|
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
72.26
|
11.99 |
62.40 |
|
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|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.23
|
1.35 |
12.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.03 |
0.53 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.09
|
1.91 |
4.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
8.75
|
32.20 |
38.40 |
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 |
|
|
|
|
Total outstanding
dues to other than micro enterprises and small enterprises |
61.805 |
27.641 |
64.842 |
|
Due to holding
company |
1.454 |
11.338 |
120.172 |
|
Total |
63.259 |
38.979 |
185.014 |
BACKGROUND:
Subject was incorporated under the companies act, 1986, (“the Act”) on April
7, 2005. The company is registered with the Reserve Bank of
The company is a wholly owned subsidiary of DSP Merrill Lynch Limited
(DSPML) which was ultimately controlled by Merrill Lynch and Company Inc., (ML
and Co) till December 31, 2008. Effective January 1, 2009, ML and Co has been
acquired by bank of America Corporation (BAC)
CORPORATE UPDATE, OPERATIONS AND FUTURE OUTLOOK:
Subject is registered with the Reserve Bank of
India (RBI) as a non-deposit taking Non Banking Financial Company (NBFC).
Subject is a wholly owned subsidiary of DSP
Merrill Lynch Limited (DSPML), which was ultimately controlled by Merrill Lynch
and Company, Inc. (ML and Co) till 31 December. 2008. Effective 1 January,
2009. ML and Company has been acquired by Bank of America Corporation (Bank of
America”).
Subject has been set up to undertake various
permitted NBFC activities. With the tightening of overall liquidity and
deteriorating credit environment, the business witnessed a dramatic slowdown in
2008. In view of this, the Company adopted a conservative approach by
undertaking selective business in the year 2009-10.
While the macro economic scenario around the
world is much better than earlier, there are still certain hiccups which the
recovery can face which would affect the global economy and consequently Indian
economy also. In view of the same, while credit growth is expected to pick up
in FY 2010-11 and the Company hopes to see a further pick up in business in FY
2010-11, the Company will nonetheless continue with the cautious approach in
light of the upheavals. Robust risk management systems and processes will
continue mitigating the inherent business risks of the Company.
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate identity
number of the company |
U65990MH2005PLC152497 |
|
Name of the
company |
DSP MERRILL LYNCH
CAPITAL LIMITED |
|
Address of the
registered office or of the principal place of business in |
10th Floor, Mafatlal Centre, Nariman Point, Mumbai-400021, |
|
Type of charge |
Movable Property
(not being pledge) |
|
Particular of
charge holder |
HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel W,
Mumbai-400018, Maharashtra, India |
|
Email |
|
|
Nature of
description of the instrument creating or modifying the charge |
Auto Loan Agreement
No 16918419 For Purchase Of Honda City Vmt Engine No L15a71213651 Chasis No
107092 Registration No. Mh 01 Ar 6769, Loan Amount Rs.1.071 millions, Payable
In 48 Monthly Installments Of Rs.0.026 millions Each, Commencing From
07.08.2010 |
|
Date of
instrument Creating the charge |
12.07.2010 |
|
Amount secured by
the charge |
Rs.1.072 Millions
|
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 9.25 Terms of
Repayment Loan To Be Paid
In 48 Monthly Installments Of Rs.0.026 millions Each, Commencing From
07.08.2010 Extent and
Operation of the charge The borrower
hypothecates and charges in favour of HDFC bank by way of first and exclusive
charge |
|
Short particulars
of the property charged |
Honda City Vmt
Engine No L15a71213651 Chasis No 107092 Registration No. Mh 01 Ar 6769 |
Fixed Assets:
- Computer and Allied Equipment
- Office Equipment
- Furniture and Fittings
- Vehicles
- Software
Press Release:
Michael Benz to Join from UBS as Head of Merrill Lynch Wealth
Management
Hong Kong, September 7, 2010: Bank of
Michael will join from UBS, where he has worked in
investment banking, asset management and wealth management in
"Michael will be a tremendous addition to the management team," said Sallie Krawcheck. "With his proven track record for developing and running market-leading platforms, and his in-depth regional knowledge and experience, Michael will be able to deliver the highest quality products and services to our clients in Asia Pacific."
Michael was born and educated in
"The unprecedented rate of wealth creation in the Asia Pacific Region means our wealth management business is of critical strategic importance to us," said Brian Brille, president of Bank of America Merrill Lynch Asia Pacific. "Bank of America Merrill Lynch's full-service platform is well positioned to offer tailored solutions to both our corporate and our individual clients in the region."
Asia Pacific economies continue to grow at a fast pace and
the creation of wealth is rising in step. The wealth of Asia Pacific High Net
Worth Individuals stood at $9.7 trillion at the end of 2009, up 30.9% on a year
earlier and above the $9.5 trillion held by
About Merrill Lynch
Global Wealth Management
Merrill Lynch Global Wealth Management (GWM) is a leading provider of comprehensive wealth management and investment services for individuals and businesses globally. With more than 15,000 Financial Advisors and approximately $1.4 trillion in client assets as of June 30, 2010, it is among the largest businesses of its kind in the world. More than two-thirds of GWM relationships are with clients who have a net worth of $1 million or more. Within GWM, the Private Banking and Investment Group provides tailored solutions to ultra high net worth clients, offering both the intimacy of a boutique and the resources of a premier global financial services company. These clients are served by more than 160 Private Wealth Advisor teams, along with experts in areas such as investment management, concentrated stock management and intergenerational wealth transfer strategies. Merrill Lynch Global Wealth Management is part of Bank of America Corporation.
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.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.93 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
|
61 |
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.