MIRA
INFORM REPORT
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Report Date : |
31.05.2011 |
IDENTIFICATION DETAILS
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Name : |
GE MONEY FINANCIAL SERVICES PRIVATE LIMITED |
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Formerly known
as : |
GE MONEY FINANCIAL SERVICES LIMITED |
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Registered
Office : |
401-402, 4th Floor, Aggarwal Millenium Tower, E1 2 3 Netaji
Subhash Place, Pitampura, New Delhi - 110034, Delhi |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
11.02.1994 |
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Com. Reg. No.: |
116256 |
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Capital
Investment / Paid-up Capital : |
Rs.6156.034 Millions |
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CIN No.: [Company Identification
No.] |
U65929DL1994PTC116256 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Providing Financial Services |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 4400000 |
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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 an established company having moderate track. There appears
huge accumulated losses recorded being recorded by the company. However,
trade relations are reported as fair. Business is active. Payments are
reported to be slow. The company can be considered for business dealings on a secured 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 |
LOCATIONS
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Registered Office : |
401-402, 4th Floor, Aggarwal Millenium Tower, E1 2 3 Netaji
Subhash Place, Pitampura, New Delhi - 110034, Delhi, India |
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Tel. No.: |
91-11-42470077 |
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Fax No.: |
91-11-39827878 |
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E-Mail : |
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DIRECTORS
AS ON 28.09.2010
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Name : |
Mr. Rajeev Yadav |
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Designation : |
Managing Director |
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Address : |
House No. 248, Sector 14, Gurgaon – 122001, Haryana, India |
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Date of Birth/Age : |
13.07.1969 |
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Date of Appointment : |
26.03.2008 |
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Din No.: |
00111379 |
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Name : |
Mr. Raghuram Raju |
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Designation : |
Director |
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Address : |
B 4/138, Safdarjung Enclave, New Delhi – 110029, Delhi, India |
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Date of Birth/Age : |
27.10.1962 |
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Date of Appointment : |
10.07.2002 |
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Date of Ceasing : |
11.08.2010 |
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Din No.: |
01741712 |
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Name : |
Mr. Nirupam Sahay |
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Designation : |
Director |
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Address : |
F-118 Richmono Park, DLF Phase 4, Haryana – 122002, India |
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Date of Birth/Age : |
28.07.1971 |
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Date of Appointment : |
30.09.2008 |
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Date of Ceasing : |
08.01.2010 |
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Din No.: |
02373944 |
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Name : |
Mr. Deepak Maheshwari |
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Designation : |
Secretary |
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Address : |
S. 30, Second, Floor UPP, Al Southend, SOna Road, Gurgaon – 122002,
Haryana, India |
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Date of Birth/Age : |
15.09.1972 |
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Date of Ceasing : |
01.04.2008 |
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Date of Appointment : |
15.10.2009 |
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Din No.: |
AAMP0988M |
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Name : |
Mr. Ruchika Dhamija |
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Designation : |
Secretary |
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Address : |
M-2/6, Model Town – I, Delhi – 110009, India |
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Date of Birth/Age : |
02.12.1983 |
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Date of Appointment : |
16.10.2009 |
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Din No.: |
AQWPD6007C |
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Name : |
Mr. Sunil Kapoor |
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Designation : |
Director |
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Address : |
D-217, Saket, New Delhi – 110017, Delhi, India |
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Date of Birth : |
16.02.1970 |
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Date of Appointment : |
26.04.2010 |
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Din No.: |
03040020 |
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Name : |
Mr. David Lobo |
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Designation : |
Director |
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Address : |
EGI / 50, Garden, Estate, Gurgaon – 122002, Haryana, India |
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Date of Birth/Age : |
29.12.1960 |
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Date of Appointment : |
02.01.2009 |
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Din No.: |
02437477 |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 28.09.2010
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Names of Shareholders |
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No. of Shares |
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GE Capital International Mauritius, Mauritius |
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496800000 |
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GE Consumer Finance Mauritius, Mauritius |
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85470085 |
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GE Capital Services India (A public Company with Unlimited Liability),
New Delhi |
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33333336 |
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GE Capital Financial Services *, New Delhi |
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1 |
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GE Indian Services Holding Private Limited *, New Delhi |
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1 |
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GE Strategic Investment India *, New Delhi |
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1 |
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GE India Business Services Private Limited *, New Delhi |
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1 |
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Total |
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615603425 |
AS ON 28.09.2010
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Category |
Percentage |
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Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
94.60 |
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Bodies corporate |
5.40 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing Financial Services |
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GENERAL INFORMATION
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Bankers : |
Axis Bank, Trishul 3rd Floor, Opposite Samartheshwar Temple,
Low Garden Ellis Bridge, Ahmadabad – 380006, Gujarat, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
B S R and Company Chartered Accountant |
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Address : |
Building No.10, 8th Floor, Tower – B, DLF Cyber, Phase –
II, Gurgaon – 122002, Haryana, India |
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Tel. No.: |
91-124-2549191 |
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Fax No.: |
91-124-2549101 |
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Holding Company : |
GE Capital International Mauritius |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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620000000 |
Equity Shares |
Rs.10/- each |
Rs.6200.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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615603425 |
Equity Shares |
Rs.10/- each |
Rs.6156.034
Millions |
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Note :
Of the above 496800000 equity shares are held
by GE Capital International Mauritius, the holding Company, a subsidiary of
General Electric co, USA, the ultimate holding company. The ultimate holding
company, General Electric Co. USA Holds 100% of the equity share capital
through its subsidiaries. Out of the above shares 496800000 shares have been
allotted for consideration other than cash.
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 |
6156.034 |
6156.034 |
6156.034 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
7981.342 |
7979.256 |
9273.840 |
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4] (Accumulated Losses) |
(3235.078) |
(391.835) |
0.000 |
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NETWORTH |
10902.298 |
13743.455 |
15429.874 |
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LOAN FUNDS |
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1] Secured Loans |
2705.381 |
14251.889 |
31409.865 |
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2] Unsecured Loans |
11698.947 |
15670.600 |
9709.269 |
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TOTAL BORROWING |
14404.328 |
29922.489 |
41119.134 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
25306.626 |
43665.944 |
56549.008 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
90.109 |
146.916 |
284.785 |
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Capital work-in-progress |
0.000 |
0.000 |
2.359 |
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INVESTMENT |
1972.652 |
4120.154 |
20.154 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
359.392 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
98.907
|
197.322 |
203.827 |
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Cash & Bank Balances |
223.286
|
327.258 |
296.623 |
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Other Current Assets |
4341.076
|
3354.450 |
3273.001 |
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Loans & Advances |
20943.855
|
38334.416 |
56421.839 |
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Total
Current Assets |
25607.124
|
42213.446 |
60195.290 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Other Current Liabilities |
1771.208
|
2462.337 |
3793.064 |
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Provisions |
596.739
|
381.021 |
572.792 |
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Total
Current Liabilities |
2367.947
|
2843.358 |
4365.856 |
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Net Current Assets |
23239.177
|
39370.088 |
55829.434 |
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MISCELLANEOUS EXPENSES |
4.688 |
28.786 |
52.884 |
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TOTAL |
25306.626 |
43665.944 |
56549.008 |
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PROFIT & LOSS
ACCOUNT
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|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
5514.100 |
9238.176 |
11430.811 |
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Other Income |
|
665.687 |
279.837 |
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TOTAL (A) |
5514.100 |
9903.863 |
11710.648 |
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Less |
EXPENSES |
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|
|
|
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Personnel Cost |
|
746.199 |
1079.613 |
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Administrative Expenses and other Expenses |
6645.000 |
2713.768 |
3679.586 |
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Provision W/off of non performing assets |
|
4241.471 |
3085.106 |
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TOTAL (B) |
6645.000 |
7701.438 |
7844.305 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1130.900) |
2202.425 |
3866.343 |
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Less |
FINANCIAL
EXPENSES (D) |
1671.300 |
3399.681 |
3498.312 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(2802.200) |
(1197.256) |
368.031 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
41.000 |
112.771 |
234.768 |
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PROFIT BEFORE
TAX (E-F) (G) |
(2843.200) |
(1310.027) |
133.263 |
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Less |
TAX (I) |
0.000 |
378.592 |
30.181 |
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PROFIT AFTER TAX
(G-I) (J) |
(2843.200) |
(1688.619) |
103.082 |
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TRANSFER TO
STATUTORY RESERVES |
0.000 |
0.000 |
20.616 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(391.800) |
1296.784 |
1214.318 |
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BALANCE CARRIED
TO THE B/S |
(3235.000) |
(391.835) |
1296.784 |
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Earnings Per
Share (Rs.) |
(2.30) |
(2.74) |
0.17 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(51.56)
|
(17.05) |
1.13 |
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Net Profit Margin (PBT/Sales) |
(%) |
--
|
(14.18) |
0.90 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(11.06)
|
(3.09) |
0.22 |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.26)
|
(0.09) |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.53
|
2.38 |
2.94 |
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Current Ratio (Current Asset/Current Liability) |
|
10.81
|
14.84 |
13.78 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS :
The company made losses of approx. Rs. 2840.000 millions on account of
higher write offs and lower income driven by reduced receivable levels and
maternity of high yield products.
The company had stopped sourcing personal loan affluent segment due to
increasing delinquency and suspended Home loans sourcing due to lower margin
pressure during the last financial year, Most of existing personal loan
portfolio will run off by end of Year 2011.
As a strategic measure, the company is continuing to focus on
profitability segment in Home Equity and Auto Lease in Selected markets.
FUTURE PROSPECTUS
:
The company has continued building up Pristine Volume in Home Equity
Segment. This drive will help the company ion minimizing losses and create
profitable receivable base. The company is trying to create unique and
sustainable value propositions with technology platform for Customers in order
to acquire and retain the targeted niche
segment.
FIXED ASSETS :
·
Freehold Land
·
Leasehold Improvement
·
Computers
·
Vehicles
·
Office Equipments
·
Furniture and Fittings
·
Vehicles
·
Software
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. 45.10 |
|
|
1 |
Rs. 74.27 |
|
Euro |
1 |
Rs. 64.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
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 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
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.