MIRA
INFORM REPORT
|
Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
RELIGARE MACQUARIE WEALTH MANAGEMENT LIMITED |
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Registered
Office : |
D3, P3B, District Centre,Saket, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
15.03.2007 |
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Com. Reg. No.: |
160580 |
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CIN No.: [Company Identification
No.] |
U74999DL2007PLC160580 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
DELR14323B |
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PAN No.: [Permanent Account No.] |
AADCR5677C |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business
: |
Portfolio Management and corporate Advisory Services. |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 728240 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a joint venture between Macquarie Equities Limited, The company can be considered for business dealings with some caution.
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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
|
Name : |
Mr. Ankit Khurania |
|
Designation : |
Finance Manager |
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Contact No.: |
91-120-3394009 |
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Date : |
06.01.2011 |
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|
Name : |
Mr. Suddep Bhatia |
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Designation : |
Head Finance |
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Date : |
06.01.2011 |
LOCATIONS
|
Registered Office : |
D3, P3B, District Centre,Saket, |
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Tel. No.: |
91-11-39125000 |
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Fax No.: |
91-11-39126505 |
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E-Mail : |
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Corporate Office : |
GYN INFINITY, 5th Floor, Paranjpe ‘B’ Scheme, Subhash Road,
Near Garware House, Vile Parle (East), Mumbai – 400057, Maharashtra, India |
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DIRECTORS
AS ON : 26.07.2010
|
Name : |
Mr. Sunil Godhwani |
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Designation : |
Director |
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Address : |
A-2, Inayat Farm, Fatehpur Beri, P.O. Mehrauli, New Delhi – 110030,
Delhi, India |
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Date of Birth/Age : |
10.12.1960 |
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Date of Appointment : |
Since Incorporation |
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Name : |
Mr. Nath Shachindra |
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Designation : |
Director |
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Address : |
C-4, sarai Khwaja, |
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Date of Birth/Age : |
13.10.1971 |
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Date of Appointment : |
Since Incorporation |
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Name : |
Mr. Amit Sarup |
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Designation : |
Whole Time Director |
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Address : |
124, sector -15A, Noida, Uttar Pradesh – 201301, |
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Date of Birth/Age : |
16.10.1967 |
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Date of Appointment : |
Since Incorporation |
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Name : |
Mr. Peter James Maher |
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Designation : |
Director |
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Address : |
67, |
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Date of Birth/Age : |
11.04.1958 |
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Date of Appointment : |
06.03.2008 |
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Name : |
Mr. Alan Joseph Corr |
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Designation : |
Director |
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Address : |
House A1, Sherwood’s Bluff, 10 Bluff Path, Hongkong |
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Date of Birth/Age : |
08.10.1964 |
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Date of Appointment : |
06.03.2008 |
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Name : |
Mr. Rohit Bhuta |
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Designation : |
Director |
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Address : |
41, |
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Date of Birth/Age : |
09.01.1964 |
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Date of Appointment : |
19.06.2009 |
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Name : |
Mrs. Reena Jayara |
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Designation : |
Secretary |
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Address : |
151, SFS DDA Flats, Safdarjung Enclave, |
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Date of Birth/Age : |
10.01.1982 |
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Date of Appointment : |
17.01.2008 |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON : 26.07.2010
Equity Shares
|
Names of Shareholders |
|
No. of Shares |
|
Religare Enterprises Limited, |
|
34999500 |
|
Amit Sarup* |
|
100 |
|
Shachindra Nath* |
|
100 |
|
Anil Saxena* |
|
100 |
|
Atul Gupta* |
|
100 |
|
Sunil Kumar Garg * |
|
100 |
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Macquarie Financial Services (Asia) Pte Limited/N.A., |
|
35000000 |
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Total |
|
70000000 |
Note :* Nominees of REL
Preference Shares
|
Names of
Shareholders |
|
No.
of Shares |
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Religare Enterprises Limited (REL) / N.A., |
|
2500000 |
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Macquarie Financial Services (Asia) Pte Limited / N.A., |
|
2500000 |
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Total |
|
5000000 |
AS ON : 26.07.2010
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
50.00 |
|
Bodies corporate |
50.00 |
|
Directors or relatives of Directors |
0.00 |
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Other top fifty shareholders |
0.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Portfolio Management and corporate Advisory Services. |
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GENERAL INFORMATION
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No. of Employees : |
Not Divulged by the management |
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Bankers : |
Not Available |
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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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Joint Venturers : |
(Associate of Macquarie Equities Limited) |
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Associates : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000000 |
Equity Shares |
Rs.10/- each |
Rs. 750.000Millions |
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|
25000000 |
Preference Shares |
Rs.10/- each |
Rs.250.000Millions |
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Total |
Rs. 10/-each
|
Rs.1000.000millions
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70000000 |
Equity Shares |
Rs.10/- each |
Rs. 700.000Millions |
|
|
(Held by Religare Enterprises Limited and
its nominees and Macquarie financial services ( |
|
|
|
5000000 |
8% Non Cumulative Compulsory Convertible
Preference Shares |
Rs.10/- each |
Rs.50.000
Millions |
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|
(Held by Religare Enterprises Limited and Macquarie
Financial services ( |
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|
|
|
Total |
Rs. 10/-each
|
Rs.750.000millions
|
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 |
750.000 |
500.000 |
40.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(567.940) |
(365.765) |
(40.099) |
|
|
NETWORTH |
182.060 |
134.235 |
(0.099) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
61.500 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
61.500 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
182.060 |
134.235 |
61.401 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
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|
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FIXED ASSETS [Net Block] |
68.029 |
71.671 |
8.310 |
|
|
Capital work-in-progress |
6.023 |
1.657 |
20.881 |
|
|
|
|
|
|
|
|
INVESTMENT |
28.659 |
1.583 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
62.277
|
27.484 |
7.452 |
|
|
Cash & Bank Balances |
18.191
|
16.567 |
7.683 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
93.127
|
93.227 |
37.036 |
|
Total
Current Assets |
173.595
|
137.278 |
52.171 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
65.355 |
56.166 |
11.784 |
|
|
Other Current Liabilities |
20.262
|
16.663 |
6.126 |
|
|
Provisions |
8.629
|
5.125 |
2.051 |
|
Total
Current Liabilities |
94.246
|
77.954 |
19.961 |
|
|
Net Current Assets |
79.349
|
59.324 |
32.210 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
182.060 |
134.235 |
61.401 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
297.980 |
54.179 |
66.549 |
|
|
|
Other Income |
2.082 |
2.822 |
0.385 |
|
|
|
TOTAL (A) |
300.062 |
57.001 |
66.934 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Personnel Expenses |
323.514 |
212.293 |
67.463 |
|
|
|
Administrative and other operating expenses |
159.641 |
147.575 |
36.446 |
|
|
|
TOTAL (B) |
483.155 |
359.868 |
103.909 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(183.093) |
(302.867) |
(36.975) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
-- |
1.823 |
1.766 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(183.093) |
(304.690) |
(38.741) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
19.080 |
19.896 |
0.576 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(202.173) |
(324.586) |
(39.317) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
-- |
1.080 |
0.445 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(202.173) |
(325.666) |
(39.762) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(365.765) |
(40.099) |
(0.337) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(567.940) |
(365.765) |
(40.099) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sponsorship Expenses |
0.209 |
Nil |
35.931 |
|
|
TOTAL EARNINGS |
0.209 |
Nil
|
35.931 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(3.32) |
(13.23) |
(27.05) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(67.37)
|
(571.33) |
(59.40) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(67.84)
|
(599.09) |
(59.07) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(83.67)
|
(155.34) |
(65.007) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.11)
|
(2.41) |
(397.14) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.51
|
0.58 |
(822.83) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.83
|
1.76 |
2.61 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details :
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
65.355 |
56.166 |
11.784 |
|
(Other than Micro, Small and Medium enterprises ) |
|
|
|
|
|
|
|
|
|
Total |
65.355 |
56.166 |
11.784 |
Fixed Assets :
- Computer Software
- Leasehold Improvement
- Data Processing Machine
- Furniture and Fixture
- Vehicles
Performance of the company
During the year under operation, the company
has shown signs of recovery with an increase in total income at Rs. 300.060 as
compared to Rs. 57.000 millions in the previous year and decrease in loss after
tax at Rs. 202.170 millions as compared to Rs. 325.670 millions in the previous
year. The company is hopeful to turn into positive results in near future
Business Approvals :
The company has received certificate of Registration
as portfolio Manager under securities and exchange Board of
Future Outlook :
The negativity in the markets is attributable
to happenings in the Euro region. Fears over sovereign debt default in the
region have resulted in Volatility for markets all over the world. This problem
also threatens to be a major problem for the banking in the Euro region.
Growing concerns of assets price bubbles in
After a year of consolidation, market
participation have begun investing in growing their businesses. A few players
who had almost concluded operations last year have started rebuilding their
teams. A major challenges in the business however remains attracting and
retaining talent. The cornerstone of growing this business is acquiring new
clinets and growing their wallet share with the organization. The focus of the
company However is naturally skewed in favor of attracting clients at the
relatively higher spectrum of the HNI universe.
A
notable development of the past year has been the addition of a new team to the
RMPW sales force. This team has enhanced our reach and delivery and has
augmented the organization by bringing in added relationship strength. The
journey in terms of product and service innovations has continued with many
attractive and bespoke products being launched during the year. Value added
propositions offering the Indian customers more than plain vanilla offerings
has been a focus area with services such as real estate and art advisory and
estate planning services being launched during the year. Other notable
additions include the GIS proposition that enables Indian Investors to take an
exposure to unique overseas investments and the Family office offering for the
elite super high net worth Clientele.
The advisory proposition of the company has
been receiving acclaim both at home and aboard. While the Private Banking
International award is a formal testimony to the robustness of the model.
Acceptance and appreciation by RMPW clients and even competitors is a true test
effectiveness and practical utility.
Key challenges for the coming year would be to
chiefly concentrate on clients acquisition and broaden the RMPW customers base.
Another focus area would be to increase sales productivity along with efforts
to attract and maintain talent. Achieving a monthly break even by the end of
the year however would be the most important goal for the team.
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. 70.03 |
|
Euro |
1 |
Rs. 58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
26 |
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.