MIRA
INFORM REPORT
|
Report Date : |
20.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
FUTURE CAPITAL HOLDINGS LIMITED |
|
|
|
|
Registered
Office : |
FCH House, Peninsula Corporate Park, Ganpatrao Kadam Marg, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
18.10.2005 |
|
|
|
|
Com. Reg. No.: |
11-156795 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 635.280 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29120MH2005PLC156795 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMK15637G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCK6863C |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Non Banking Financial Company |
|
|
|
|
No. of Employees
: |
450 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba [47] |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 30100000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The Company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Girish Kulkarni |
|
Designation : |
Accountant |
|
Date : |
18.07.2011 |
LOCATIONS
|
Registered Office : |
FCH House, Peninsula Corporate Park, Ganpatrao Kadam Marg, |
|
Tel. No.: |
91-22-66423480 |
|
Fax No.: |
91-22-66423401 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Kishore Biyani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sameer Sain |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Krishan Kant Rathi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gyanendra Nath Bajpai |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. Shailesh Haribhakti |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. Alok Oberoi |
|
Designation : |
Independent Directors |
KEY EXECUTIVES
|
Name : |
Mr. N. Shridhar |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Chetan Gandhi |
|
Designation : |
Head - Legal and Secretarial |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
4773795 |
7.37 |
|
Bodies Corporate |
34779999 |
53.67 |
|
Sub Total (A)
(1) |
39553794 |
61.04 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
1216886 |
1.88 |
|
Financial Institutions / Banks |
103801 |
0.16 |
|
Insurance Companies |
20628 |
0.03 |
|
Foreign Institutional Investors |
800653 |
1.24 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
6883041 |
10.62 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
4939173 |
7.62 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
6331182 |
9.77 |
|
|
|
|
|
Any other
[Specify] |
|
|
|
Clearing Members |
251724 |
0.39 |
|
Non Resident Indians |
4697443 |
7.25 |
|
Trusts |
159 |
0.00 |
|
(B) = (B) (1) +
(B) (2) |
25244690 |
38.96 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
|
|
|
|
|
Total (A) + (B) +(C) |
64798484 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Non Banking Financial Company |
GENERAL INFORMATION
|
No. of Employees : |
450 [Approximately] |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountant |
|
|
|
|
Holding Company
: |
Pantaloon Retail ( |
|
|
|
|
Joint Ventures : |
|
|
|
|
|
Fellow
subsidiaries : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75,000,000 |
Equity Shares |
Rs.10/-each |
Rs.750.000 millions |
|
|
|
|
|
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63,527,984 |
Equity Shares |
Rs.10/-each |
Rs.635.280 millions |
|
|
|
|
|
|
|
|
|
|
[Out of the above,
34,779,999 (Previous year: 34,779,999) equity shares are held by Pantaloon
Retail (
As on 09.08.2010
Authorised Capital : Rs.750.000 millions
Issued, Subscribed & Paid-up Capital : Rs.647.985 millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
635.280 |
635.280 |
632.280 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6899.724 |
6800.869 |
6608.688 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7535.004 |
7436.149 |
7240.968 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1052.950 |
3305.483 |
500.000 |
|
|
2] Unsecured Loans |
3373.874 |
1426.005 |
500.000 |
|
|
TOTAL BORROWING |
4426.824 |
4731.488 |
1000.000 |
|
|
DEFERRED TAX LIABILITIES |
1.728 |
1.721 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11963.556 |
12169.358 |
8240.968 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
29.854 |
187.461 |
147.761 |
|
|
Capital work-in-progress |
0.000 |
2.816 |
14.593 |
|
|
|
|
|
|
|
|
INVESTMENT |
5588.304 |
6171.722 |
5633.548 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Interest accrued on investments |
10.354
|
2.895 |
0.000 |
|
|
Sundry Debtors |
22.403
|
99.379 |
134.515 |
|
|
Cash & Bank Balances |
234.231
|
23.022 |
861.632 |
|
|
Other Current Assets |
30.087
|
193.874 |
82.807 |
|
|
Loans & Advances |
6352.761
|
6145.192 |
2438.010 |
|
Total
Current Assets |
6649.836
|
6464.362 |
3516.964 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
50.577 |
176.909 |
247.674 |
|
|
Other Current Liabilities |
178.218
|
458.718 |
822.355 |
|
|
Provisions |
75.643
|
21.376 |
1.869 |
|
Total
Current Liabilities |
304.438
|
657.003 |
1071.898 |
|
|
Net Current Assets |
6345.398
|
5807.359 |
2445.066 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11963.556 |
12169.358 |
8240.968 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
553.783 |
1306.771 |
523.275 |
|
|
|
Other Income |
4.123 |
51.228 |
290.407 |
|
|
|
TOTAL (A) |
557.906 |
1357.999 |
813.682 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Personnel Expenses |
136.897 |
297.180 |
288.512 |
|
|
|
Administrative and other Expenses |
120.495 |
648.883 |
409.192 |
|
|
|
TOTAL (B) |
257.392 |
946.063 |
697.704 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
300.514 |
411.936 |
115.978 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
87.649 |
265.551 |
7.627 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
212.865 |
146.385 |
108.351 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4.865 |
47.902 |
16.502 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
208.000 |
98.483 |
91.849 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
34.821 |
5.397 |
2.956 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
173.179 |
93.086 |
88.893 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
146.726 |
72.257 |
1.246 |
|
|
|
|
|
|
|
|
|
Less |
Adjustment on account of liability in respect of employee benefits, as
on April 1,2007 (net of deferred tax) |
0.000 |
0.000 |
0.104 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to reserve under section 45 (1C) of the Reserve Bank of (‘RBI’) Act, |
34.636 |
18.617 |
17.778 |
|
|
|
Proposed Dividend |
63.528 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
10.796 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
210.945 |
146.726 |
72.257 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Research and Advisory fees |
130.297 |
94.889 |
173.763 |
|
|
TOTAL EARNINGS |
130.297 |
94.889 |
173.763 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.73 |
1.47 |
1.66 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
324.640 |
451.010 |
555.740 |
1053.970 |
|
Total Expenditure |
59.570 |
97.220 |
87.850 |
580.130 |
|
PBIDT (Excl
OI) |
265.070 |
353.790 |
467.890 |
473.840 |
|
Other Income |
1.300 |
0.120 |
0.040 |
251.180 |
|
Operating
Profit |
266.370 |
353.910 |
467.930 |
725.020 |
|
Interest |
97.450 |
197.630 |
274.990 |
485.610 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
168.920 |
156.280 |
192.930 |
239.410 |
|
Depreciation |
1.150 |
1.150 |
1.170 |
2.180 |
|
Profit
Before Tax |
167.770 |
155.130 |
191.760 |
237.230 |
|
Tax |
53.460 |
45.080 |
47.380 |
53.360 |
|
Reported PAT |
114.320 |
110.050 |
144.380 |
183.870 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
114.320 |
110.050 |
144.380 |
183.870 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
31.04
|
6.85 |
10.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
37.56
|
7.54 |
17.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.11
|
1.48 |
2.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.01 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.63
|
0.72 |
0.29 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
21.84
|
9.84 |
3.28 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
Details
Rs
in Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
- Due to micro and small enterprises |
0.000 |
0.000 |
0.000 |
|
- Due other than micro and small enterprises |
50.577 |
176.909 |
247.674 |
|
|
50.577 |
176.909 |
247.674 |
Contingent
Liabilities
Rs
in Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
|
Guarantees given by banks on behalf of the Company |
0.000 |
24.567 |
|
Guarantees given by the Company on behalf of a subsidiary company |
6730.225 |
0.000 |
|
Income-tax matters under dispute |
4.520 |
0.000 |
STANDALONE
PERFORMANCE
The standalone total income of the Company decreased 59% during
the year. Total income in 2009-10 stood at Rs. 558 million, as compared to Rs.
1358 million in the previous year. The profit after tax showed an increase of
86% which was Rs. 173 million, as compared to Rs. 93 million in the previous
year.
Of the above total income, income from Investment Advisory
stood at Rs. 131 million and Treasury and Wholesale Credit stood at Rs. 422
million.
SHARE CAPITAL
During the year, there is no change in the issued,
subscribed and paid up capital of the Company and the same was Rs. 635.28
million as at the end of the financial year.
Subsequent to the year, the Company issued and allotted
50,000 (Fifty Thousand) Equity Shares of Rs. 10/- each, on exercise of Stock
Options granted to an employee under FCH Employee Stock Option Scheme – 2008
and consequently, the issued, subscribed and paid-up capital has increased from
Rs.635.28 million to Rs.635.78 million.
SUBSIDIARIES
During the year, pursuant to the composite Scheme of
Amalgamation and Arrangement (the “Scheme”), under the provisions of Section
391 to 394 of the Companies Act, 1956, sanctioned by Hon’ble High Court of
Judicature at Bombay, Future Capital Credit Limited, a Wholly Owned Subsidiary
of the Company and a Non Banking Finance Company registered with the Reserve
Bank of India, amalgamated with Future Capital Financial Services Limited
(FCFSL), another Wholly Owned Subsidiary of the Company and dissolved without
being wound-up. The Directors are pleased to inform that FCFSL is granted
Certificate of Registration as a Non Banking Finance Company with effect from
January 7, 2010, by the Reserve Bank of
During the year, the Company and its Subsidiaries viz.Future
Capital Investment Advisors Limited and Kshitij Investment Advisory Company
Limited entered into appropriate agreements with Everstone Investment Advisors
Private Limited, to realign their respective investment advisory activities
with a view of having a focused and dedicated approach to the Investment
Advisory Business. The realignment of the investment advisory activities of the
Company and its certain Subsidiaries has been effective from January 1, 2010.
The Company has received the necessary approval from the
Reserve Bank of
SCHEME OF
AMALGAMATION AND ARRANGEMENT
In March, 2009, the Directors had approved the carrying out
of, a composite Scheme of Amalgamation and Arrangement (the “Scheme”), under
the provisions of Section 391 to 394 of the Companies Act, 1956, inter alia, providing for:
(i) Transfer of the credit business of the Company (both on account of
Retail Credit and Wholesale Credit) to Future Capital Financial Services
Limited, a Wholly Owned Subsidiary of the Company.
(ii) Amalgamation of Future Capital Credit Limited, a Wholly Owned
Subsidiary of the Company and a Non Banking Finance Company registered with the
Reserve Bank of
Pursuant to the directions of Hon’ble High Court of Judicature at
The Directors are pleased to inform that having fulfilled all the
prescribed conditions to make the Scheme effective, the Company and its
Subsidiaries gave effect to the Scheme and the Scheme was made effective on
February 1, 2010.
MANAGEMENT
DISCUSSION AND ANALYSIS
The financial statements have been prepared in compliance
with the requirements of the Companies Act, 1956 and the Generally Accepted
Accounting Principles (GAAP) in
Economic Overview
Globally,
The year began with cherished sentiments of political
stability with the mandate going in favour of the Congress lead UPA coalition
and on a closing note delivered higher than estimated Gross Domestic Product
(GDP) growth rate at 7.4% for the financial year 2009-10. The revival of
manufacturing sector was validated by the Index of Industrial Production (IIP) posting
doub le digit growth at 10.4% for the year. Additionally, more-than-expected
revenue coming in from the 3G and Wimax auction should now place government in
an improved position to handle the fiscal deficit.
The inflationary conditions in
The announcement of RBI’s intention to give additional
banking license in the budget has opened a window for Non-Banking Finance
Companies and other private sector players to become part of Indian banking
system.
With these various positive developments and the hopes of
normal monsoon, it may release the mounting price pressure and further brighten
the domestic growth outlook.
Reduced tax burden in the current budget has further
improved disposable income in individual hands thus increasing avenues for
consumption, savings and investments.
Infrastructure investment in
Credit growth has started picking up. Credit off-take rose
16.5% last fiscal to Rs.33.32 lakh crores in Financial Year 2009-10, beating
the RBI’s projection of 16%. Loan growth is expected to touch 20% in next
fiscal with the rising economic activities.
Current state, of low Mortgage to GDP ratio, untapped non
urban areas and under penetrated market offers immense potential for growth in
the financial sector. Widening geographical coverage through strong network of
multiple distribution channels will augment growth in Mutual Fund and Insurance
Sector.
FCH is uniquely positioned to leverage Future group’s
widespread pan
Business Review
It was the year of consolidation and growth for FCH. They
witnessed signs of global recovery and gradual turn around in Indian economy.
They tapped this opportunity by accelerating the lending activities, on both
retail and wholesale side of business, combined with improved fund raising
capabilities. The Credit Business recorded a
book of Rs.13,936 million as compared to Rs.6,014 million in previous
year.
The Company during the year consolidated its lending and distribution
business to make it more efficient and enhance productivity. This consolidation
will synergize both the businesses further and enable improved fund raising
abilities.
The Company achieved the highest credit rating during the year for its
short term borrowing program, thereby leading to substantial savings in
interest costs. The Company was able to reduce the blended average cost of
funds by 200 bps during the year.
Retail Financial Services (RFS)
Revenues from RFS,
for this year end stood at Rs.1,074 million with a profit of Rs.191 million.
The strategy to focus on appropriate product mix, enhanced efficiency in
collections, along with improved risk management processes has helped this
business to turn the corner. The Company has identified this as a natural
growth avenue due to the large footprint it enjoys through its group
affiliates.
Product offering
in protection and credit widened through new tie ups with leading financial
brands. With the help of new systems and technology along with Trans union,
credit approvals became faster thereby reducing the disbursal lead time.
Their
participation in retail portfolio buyouts on opportunistic basis has
contributed significantly. Retail portfolio buyout book stood at Rs.3,640
million on the year end. They will continue to exploit such opportunities with
strong first loss coverage from the originators.
Going forward the
Company shall focus on leveraging group’s retail footprint on one hand and earn
higher risk adjusted returns through secured lending i.e., asset backed lending
mainly into home equity and consumption loans.
Corporate Lending and Wholesale Credit (CLWC)
Manifold growth in
the loan book of CLWC business has grossed revenues of Rs.660 million for the
year. The loan book grew from Rs.1663 million and stands at Rs.7,390 million on
the year end.
The Company
follows a conservative policy for lending with comfortable collateral cover and
clearly identified take outs backed by strong cash flow streams. The strong due
diligence and credit evaluation capabilities across asset classes enhances
portfolio performance. High emphasis is levied on direct dealing with minimum
intermediation.
Rising economic
activities will increase the credit growth. Their strong in house capabilities
and synergies with Future Group will give us a competitive edge in the
industry.
Trade
Finance
Their foray into
Trade Finance that was started in this calendar year focuses on end-to-end supply
chain financing including suppliers credit, short tenor working capital loans,
discounting of bills payable and purchase of receivables.
They provide a wide
range of solutions to fulfill customer need through tailor made products. The
business is in a nascent stage and they have narrowed their focus on inland
transactions which are commercial in nature.
Given their
existing due diligence and credit evaluation capabilities, they leverage their
current advisory relationships to create appropriate opportunities to cross
sell their products to a growing customer base. Also, they are uniquely
positioned to enhance their client base by leveraging the Future Group
eco-system giving us a competitive edge in the market place.
Income from Wholesale Credit and Treasury
The Wholesale
Credit business taps a large and relatively unaddressed market of structured
credit including mezzanine, promoter, project and acquisition financing,
structured financing, retail portfolio buyouts, other special situations related
financing and all other financing which is not directly related to retail
consumers. The Treasury operations ensure liquidity for business and manage
investment of surplus funds to optimize returns within the approved risk
management framework. They recorded Wholesale Credit and Treasury income of
Rs.806 million for the year ended March 31, 2010. This represents dividend
income of Rs.24 million, interest on loans of Rs.537 milllion, interest on
Inter Corporate Deposits (ICD) of Rs.25 million, profit from sale of
investments of Rs.82 million, upfront fees of Rs.97 million, interest on
investments Rs.15 million and income from Trade Finance business being Rs.26
million.
The overall
increase in income is primarily due to increase in the loan book of the wholesale
credit business to Rs.7,390 million as at March 31, 2010 from Rs.1,663 million
at the beginning of the year.
Income from Retail Financial Services
The RFS offer
consumer finance and distribution of financial services products. They currently have 26 Future Money
outlets and distribution is done through ~ 150 Future Group outlets across
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31.03.2011
|
Particulars |
Quarter Ended 31.03.2011 |
Year Ended 31.03.2011 |
|
Income from operations |
1053.974 |
2385.362 |
|
Olher operating income |
0.000 |
0.000 |
|
Total Income |
1053.974 |
2385.362 |
|
Expenditure |
|
|
|
Employee cost |
109.883 |
240.729 |
|
Depreciation/ amortisation |
2.179 |
5.647 |
|
Provision and write offs |
310.211 |
319.937 |
|
Loan origination costs |
29.020 |
36.039 |
|
Legal and Professional fees |
52.008 |
93.113 |
|
Other expenditure |
79.015 |
134.245 |
|
Total
Expenditure |
582.316 |
829.710 |
|
Profit from Operations before
Other Income and Interest (1-2) |
471.658 |
1555.652 |
|
Other Income |
251.184 |
251.919 |
|
Profit before interests
Exceptional Items (3+4) |
722.842 |
1807.571 |
|
Interest |
485.608 |
1055.679 |
|
Profit after Interest but
before Exceptional Items (5-6) |
237.234 |
751.892 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit from Ordinary activities
before tax (7+8) |
237.234 |
751.892 |
|
Tax expense |
53.360 |
199.283 |
|
Profit from Ordinary activities
after tax (9-10) |
183.874 |
552.609 |
|
Extraordinary Item (net of tax expense) |
0.000 |
0.000 |
|
Net Profit for the period
(11-12) |
183.874 |
552.609 |
|
Paid up Equity Share Capital [Face Value-Rs.10 per share] |
647.835 |
647.835 |
|
Reserves excluding Revaluation Reserves as per balance sheet of
previous accounting year |
0.000 |
7367.433 |
|
Earnings per share (EPS) |
|
|
|
-Basic and diluted EPS before Extraordinary items for the period and for the previous year |
|
|
|
-Basic EPS(Rs.) |
2.86 |
8.60 |
|
-Diluted EPS (Rs.) |
2.86 |
8.58 |
|
-Basic and diluted EPS after Extraordinary items for the period and for
the previous year -Basic EPS (Rs.) -Diluted EPS (Rs.) |
2.86 2.86 |
8.60 8.58 |
|
Public shareholding – |
|
|
|
Number of shares – |
25229690 |
25229690 |
|
Percentage of shareholding |
38.94% |
38.94% |
|
Promoters and Promoter Group
shareholding |
|
|
|
Pledged/ Encumbered – |
|
|
|
Number of shares |
4773795 |
4773795 |
|
-Percentage of shares ( as a percentage to total Promoters and Promoter
Group shareholding) |
12.07% |
12.07% |
|
-Percentage of shares (as a percentage to total Share Capita] of the
Company) |
7.37% |
7.37% |
|
Non-encumbered – |
|
|
|
Number of shares |
34779999 |
34779999 |
|
-Percentage of shares ( as a percentage to total Promoters and Promoter Group shareholding) |
87.93% |
87.93% |
|
-Percentage of shares (as a percentage to total Share Capital of the Company) |
53.69% |
53.69% |
Segment Wise
Revenue, Results And Capital Employed For The Quarter And Year Ended 31.03.2011
|
Particulars |
Quarter Ended 31.03.2011 |
Year Ended 31.03.2011 |
|
1 Segment Revenue |
|
|
|
Investment Advisory Services |
0.000 |
0.000 |
|
Wholesale Credit and Treasury |
705.558 |
1938.483 |
|
Retail Financial Services |
348.416 |
446.879 |
|
Total |
1053.974 |
2385.362 |
|
2 Segment Results |
|
|
|
Investment Advisory Services |
0.000 |
0.000 |
|
Wholesale Credit and Treasury |
277.486 |
789.731 |
|
Retail Financial Services |
[13.822] |
60.228 |
|
Total |
263.664 |
849.959 |
|
3 Add/(Less): |
|
|
|
Other unallocable expenditure |
[277.614] |
[349.984] |
|
Other unallocable income |
251.184 |
251.917 |
|
Total |
[26.430] |
[98.067] |
|
Net Profit before tax |
237.234 |
751.892 |
|
4 Capital Employed
(Segment Assets - Segment Liabilities) |
|
|
|
Investment Advisory activities |
0.000 |
0.000 |
|
Wholesale Credit and Treasury activities |
4630.549 |
4630.549 |
|
Retail Financial Services |
2024.762 |
2024.762 |
|
Other Unallocated Items |
751.475 |
751.475 |
|
Total Capital Employed |
7406.786 |
7406.786 |
Notes
a. The above financial results for the quarter
ended have been reviewed by the Audit Committee and approved by the Board of
Directors (the "Board") at their meetings held on June 30, 2011.
b. Investors
Complaints Status
As at January 1, 2011
Complaints/ Correspondence Received
Complaints/ Correspondence Redressed
As at March 31. 2011
All pending investor grievances are the Consumer Dispute Redressal
Forum cases which are "Subjudice" and hence they are treated as
pending.
c. During the quarter ended March 31, 2011,
the Nomination and Compensation Committee of the Board of Directors, granted
250,000 stock options and 50,000 stock options, representing equal number of
equity shares of face value of Rs.10/- each in the Company to the eligible
employee(s), under FCH Employees Stock Option Scheme - 2008 and FCH Employees
Stock Option Scheme - 2009. respectively.
d. The Board ol Directors at its meeting held
on November 2, 2010, approved a Scheme of Arrangement between Future Capital
Financial Services Limited (FCFSL), Future Capital Holdings Limited (FCH) and
their respective shareholders (Scheme), inter-alia in terms of which FCFSL has
merged with FCH, under the provisions of Section 391 to 394, read with Sections
78,100 to 103 of the Companies Act, 1956. The Appointed Date under the Scheme
is March 1, 2011. The Scheme has been approved by the Shareholders of the
Company and by the Hon'ble High Court of Judicature at
e. As prescribed by the Scheme as sanctioned
by the Hon'ble High Court of Judicature at Bombay, the Company has charged
securities premium by Rs.9,973.263 millions being the difference between the
net assets acquired (Rs.1160.940 millions) from FCFSL and the investment value
of FCFSL (Rs. 2158.303 millions) in the books of FCH.
f. Consequent to the transfer of 50% stake in
FCH Centrum Direct Limited ('FCH CDL') to Centrum Capital Limited. FCH CDL
ceased to be the Joint Venture of the Company as on March 31,2011.
g. 1] The Board of Directors at its meeting
held on March 25, 2011, approved the acquisition of additional 50% stake in FCH
Centrum Wealth Managers Limited ('FCH CWML') from Centrum Capital Limited.
Consequently, the Company has entered into Share Purchase Agreement dated March
28. 2011 for acquiring the additional 50% stake and necessary approvals from
the regulators have been obtained. As on March 31, 2011. the Company has
completed the acquisition process of FCH CWML.
2] During the quarter, the Company has
provided for Rs. 247.938 millions towards diminution in the value of
investments in subsidiary under the head Provisions and write off.
h. As per the notification issued by the
Reserve Bank of India DNBB.222/CGM(US) dated January 17, 2011, the Company has
made the requisite provision on standard assets
i. The Board of Directors have recommended,
subject to the approval of shareholders, dividend of Rs. 1.50 per share (15%)
j. Figures for previous quarter/ year have been
regrouped/ rearranged wherever necessary.
FIXED ASSETS :
·
Furniture and Fixtures
·
Computer and Peripherals
·
Office Equipments
·
Electrical Installations
·
Air Conditioner
·
Leasehold Improvements
·
Data processing software
·
Domain names and trade
names
PRESS RELEASE
INDIAN NEWSPAPER HIGHLIGHTS - JULY 4, 2011
INDIAN NEWSPAPER HIGHLIGHTS - JULY 4, 2011NEW
July 4 Asia Pulse - Highlights of today's newspapers:
HINDU BUSINESS LINE:
- Long-playing records have come a full circle, giving competition to CDs, DVDs, iPods and MP3s. Known in their NextGen avatar as vinyls, LPs are now being showcased in music stores in the metros to woo discerning music lovers.
The technology of a forgotten era made a comeback in
- After raising record sums of money through the debt and equity routes in the domestic market last year, India Inc found capital flows drying up in the first six months of 2011.
- ArcelorMittal India Ltd, GVK Power (Govindwal Sahib) Ltd and DCM Shriram Consolidated Ltd have joined the growing list of firms that face the risk of losing captive coal blocks.
The Coal Ministry has warned these firms to expedite development of the allocated blocks or face action, including cancellation of the blocks. ArcelorMittal and GVK were allotted the Seregarha coal block in Jharkhand, while DCM Shriram was allocated the Kaparion-ki-Dhani lignite block in Rajasthan.
THE FINANCIAL
EXPRESS
- Policy paralysis, uncertainties and poor corporate governance standards have combined to make investors wary of companies in vulnerable sectors. In the last one year, FE's Policy Sensitive Index (PSI) comprising stocks of 22 companies, has grossly underperformed the Sensex.
- The government is exploring a
car scrappage scheme, where you can trade in your old, fuel-guzzling car and
buy a new, fuel-efficient one, saving some money in the process. The scheme on
the lines of the cash-for-clunkers model adopted the
- Latest RBI guidelines on banks' technology governance, information security, audit, outsourcing and cyber fraud could open up a $300-million opportunity for IT vendors and audit firms. The central bank recently directed IT governance frameworks, data leakage prevention, encryption, multi-factor authentication and digital asset archiving mechanisms for banks.
THE ECONOMIC
TIMES:
- The retail subsidiary of
Reliance Retail has named Rob Cissell,former chief operating
officer of Walmart
- The country's leading retailer, Pantaloon Retail, will sell its stake in the financial services arm Future Capital Holdings. Pantaloon has hired investment bank Morgan Stanley to find a buyer for its 54% equity in Future Capital Holdings (FCH), a non-banking finance company with assets worth 3,000 crore, comprising retail,wholesale and mortgage loans. Pantaloon no longer considers FCH a core business for the group.
- Finance Minister Pranab Mukherjees move to quintuple the foreign institutional investment limit in Indian infrastructure bonds to accelerate the construction of roads and ports has failed to take off as global investors fret over the plethora of strings attached to them.
PRESS RELEASE
Clarifies
on News Item
Accord Fintech (
04 July 2011
[What
follows is the full text of the news story.]
PRESS RELEASE
Future Capital
Holdings raises INR3bn via bonds
Global Banking News (GBN)
30 July 2010
[What follows is
the full text of the article.]
Global Banking
News-30 July 2010-Future Capital Holdings raises INR3bn via bonds(C)2010 ENPublishing
- http://www.enpublishing.co.uk
Global Banking
News - 30 July 2010(c)2005 - Electronic News Publishing -
http://www.enpublishing.co.uk
The financial
services firm has offered to sell five-year bonds paying a yield of 11 percent
at par. The bonds will be redeemed at the end of four years, four-and-half
years and at the end of the fifth year in the ratio of 30:30:40, the people
said. The company has also offered another structure of a five-year bond with
put and call options at the end of the third year, one person said, adding that
the bond will pay a yield of 10.25 percent at par.
The issue has a
core size of INR1.5bn but the company has the option to raise an additional
INR1.5bn if the bids exceed the original issue size, the people said.
CARE Ratings has
rated both the bonds A+, they added.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.58 |
|
|
1 |
Rs.71.62 |
|
Euro |
1 |
Rs.62.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
47 |
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.