MIRA INFORM REPORT

 

 

Report Date :

16.06.2011

 

IDENTIFICATION DETAILS

 

Name :

ASK INVESTMENT HOLDINGS PRIVATE LIMITED (w.e.f. 30.10.2007)

 

 

Formerly Known As :

ASK INVESTMENT MANAGERS PRIVATE LIMITED (w.e.f.18.04.2007)

ASK-RAYMOND JAMES SECURITIES PRIVATE LIMITED

 

 

Registered Office :

Bandbox House, 1st Floor, 254-D, Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

30.03.1994

 

 

Com. Reg. No.:

11–77449

 

 

Capital Investment / Paid-up Capital :

Rs.0.100 million

 

 

CIN No.:

[Company Identification No.]

U65990MH1994PTC077449

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA09119F

 

 

PAN No.:

[Permanent Account No.]

AABCA2497H

 

 

Legal Form :

Private limited Liability Company

 

 

Line of Business :

Investment Advisory and Consultancy and Other Financial Services

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered 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.

 

 

INFORMATION DECLINED BY

 

Name :

Mr. Himanshu Bohra

Designation :

Chief Finance Officer

Date :

14.06.2011

 

 

Name :

Mr. Ajay Madhani

Designation :

Vice President in Finance

Date :

14.06.2011

 

 

LOCATIONS

 

Registered Office :

Bandbox House, 1st Floor, 254-D, Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra, India

Tel. No.:

91-22-56520000 / 6613 2800

Fax No.:

91-22-4985666 / 6613 2828

E-Mail :

akoticha@askgroup.in

nshah@askgroup.com

 

 

DIRECTORS

 

(As on 22.07.2010)

Name :

Mr. Asit K. Koticha

Designation :

Director

Address :

B-31, Twin Towers, Prabhadevi, Mumbai – 400 020, Maharashtra, India

Date of Birth/Age :

14.06.1958

Date of Appointment :

05.07.1994

DIN No.:

00034266

 

 

Name :

Mr. Sameer K. Koticha

Designation :

Director

Address :

702, Shilpa Apartment, 968, S.G. Marg, Prabhadevi, Mumbai – 400 020, Maharashtra, India

Date of Birth/Age :

27.07.1961

Date of Appointment :

05.07.1994

DIN No.:

00075145

 

 

Name :

Mr. Bharat Shah

Designation :

Director

Address :

402, Rushab, Plot No.171, Off 8th and 10th Road, Khar (West), Mumbai – 400 052, Mahashatra, India

Date of Birth/Age :

26.01.1960

Date of Appointment :

15.11.2003

 

 

Name :

Mr. Sunil Gangadhar Rohokale

Designation :

Director

Address :

203, 2nd Floor, Gomantashram, Chittaranjan Road, Vile Parle East Mumbai – 400 057, Maharashtra, India

Date of Birth/Age :

10.06.1970

Date of Appointment :

24.10.2008

DIN No.:

01896946

 

 

Name :

Mr. Mukarram Saifuddin Bhagat

Designation :

Director

Address :

D 711/712, Manju Mahal, Pali Hill Road, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

03.11.1955

Date of Appointment :

24.10.2008

DIN No.:

00312546

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 22.07.2010)

Names of Shareholders

 

No. of Shares

Asit K. Koticha

 

6000

Sameer K. Koticha

 

4000

 

 

 

Total

 

10000

 

(As on 22.07.2010)

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Investment Advisory and Consultancy and Other Financial Services

 

 

GENERAL INFORMATION

 

Bankers :

·         HDFC Bank Limited

2nd Floor, Process House, Kamala Mills, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India

 

·         Kotak Mahindra Bank

 

 

Facilities :

Secured Loans

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions

Term Loan from Kotak Mahindra Bank

 (Secured against hypothecation charge over two Motor Car)

(Amount repayable within one year Rs.2.773 millions)

11.943

6.345

Total

11.943

6.345

 

Unsecured Loans

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions

Other Loans and Advances 

 

 

Term Loan from HDFC Bank

(The Office Premises at first floor Band Box House, Worli, jointly owned by a subsidiary and one of the group company has been offered as security) 

 

(Amount repayable within one year Rs.18.548 millions)

178.540

0.000

From other than Banks

(From Directors)

291.000

7.500

Total

469.540

7.500

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

12, Dr. Annie Besant Road, Worli, Mumbai – 400 013, Maharashtra, India

Pan No.:

AADFD2337G

Tel No.:

91-22-66679000

Fax No.:

91-22-66679100

 

 

Holding Company :

ASK Investment and Financial Consultants Private Limited (Till 31.03.2008)

 

 

Associates/Subsidiaries :

·         ASK Wealth Advisors Private Limited

CIN No: U67190MH2006PTC162465

 

·         ASK Property Investment Advisors Private Limited 

CIN No.: U74140MH2009PTC189703

 

·         ASK Insurance Broking and Risk Management Services Private Limited

CIN No.: U74140MH2007PTC168333

 

·         ASK Property Advisory Services Private Limited (w.e.f. 18.03.2010)

 

 

CAPITAL STRUCTURE

 

(As on 31.03.2010)

Authorised Capital :

No. of Shares

Type

Value

Amount

4750000

Equity Shares

Rs.10/- each

Rs.47.500 millions

251000

Preference Shares

Rs.10/- each

Rs.2.510 millions

 

 

 

 

 

Total

 

Rs.50.010 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

10000

Equity Shares

Rs.10/- each

Rs.0.100 million

 

Note

 

All the above equity shares are held by Asit Koticha and Sameer Koticha

 

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

0.100

0.400

34.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

256.727

243.982

854.892

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

256.827

244.382

889.392

LOAN FUNDS

 

 

 

1] Secured Loans

11.943

6.345

241.195

2] Unsecured Loans

469.540

7.500

0.000

TOTAL BORROWING

481.483

13.845

241.195

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

738.310

258.227

1130.587

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

31.988

15.286

33.557

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

69.974

68.950

522.340

DEFERREX TAX ASSETS

0.000

0.000

1.748

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

0.000

 

Sundry Debtors
55.015

0.000

0.000

 

Cash & Bank Balances
0.371

2.352

7.661

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
657.274

490.365

584.420

Total Current Assets
712.660

492.717

592.081

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
63.195

313.266

4.174

 

Other Current Liabilities
11.439

3.179

11.765

 

Provisions
1.678

2.281

3.200

Total Current Liabilities
76.312

318.726

19.139

Net Current Assets
636.348

173.991

572.942

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

738.310

258.227

1130.587

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION                                  

22.611

(14.788)

715.746

 

 

 

 

DEPRECIATION/ AMORTISATION                    

8.028

4.116

1.929

 

 

 

 

PROFIT BEFORE TAX

14.583

(18.904)

717.675

 

 

 

 

TAX                                                                 

2.400

2.449

0.507

 

 

 

 

PROFIT AFTER TAX (G-H)                               

12.183

(21.353)

3.809

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

Return on Total Assets

(PBT/Total Assets}

(%)
1.96

(3.72)

114.71

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.06

(0.08)

0.81

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.17

1.36

0.29

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
9.34

1.55

30.94

 

 

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)

Due to Micro and small enterprises 

0.000

0.000

0.000

Due to Others

63.195

313.266

4.174

Total
63.195

313.266

4.174

 

Operational Review and Future Outlook:

 

The Indian Economy showing sign of recovery, Markets continued their upward march in F.Y.2009-10 as the global cues displayed easing of the fiscal pain and some semblance of sanity returning to the markets. While US continued to suffer low growth and high deficits, Asian economies led by India and China emerged as the sweet spots for investors. With both India and China registering strong GDP growth, the attention of the world is now firmly riveted to these two economies to kick start global growth.

 

The assets under management of subject continue to rise largely on the back of a continued markets surge during the year. The AUM grew a robust 60% to close the year at Rs.16830.000 millions from Rs.10540.000 millions at the beginning of the year. During the year, the firm gained new assets of Rs.3770.000 millions. The implementation of an over-arching investment framework and strict adherence to the same contributed to a disciplined but robust growth during the year. Portfolio performance also came back strongly and all this has set the tone for a stronger 2010-11 where expectations are of a continued strong growth of AUM and portfolio performances.

 

The offshore book continued to remain robust at 56% of the total AUM. Again, continuing the earlier trend, the character and quality of the firm’s assets continue to be the best in the business with almost 65% of assets having longevity of over 3 years and 55% of the assets having longevity of over 5 years. During the year, a new and exciting concept, The Indian Entrepreneur Portfolio (IEP) was launched and expectations are high that the concept with its unique investment proposition of identifying good growth opportunities amongst firms led by Indian Entrepreneurs would provide an exciting opportunity to partake in the wealth creation by investors of ASK. At the close of the year, IEP had already collected a very encouraging sum of Rs.640.000 millions besides delivering on its mandate of good performance.

 

India continues to power its economy ahead on the back of three engines of growth, i.e. savings, consumption and investments. The advantages of young working age population, robust banking system, fundamentally strong businesses and a host of emerging ones, stable vote and hopefully continued sensible governance, amongst others, are expected to play a key role in emergence of India as a preferred investment destination for both portfolio and direct project inflows in times to come.

 

During the year, ASK Wealth Advisors Private Limited, the financial planning and wealth advisory business has grown at a steady pace and continues to deliver commendable performance in both competitive and challenging markets. Building the strength and capabilities of the teams is an essential component of the strategy to becoming India’s most respected financial planning company.

 

Aggressive and responsible growth of the business - the AUM increased from Rs.12000.000 millions in April 2009 to Rs.20000.000 millions ( including Liquid AUM in March 2010), Set high standards in Client servicing, The Client Base as on March 2010 was 930+ families.

 

In year 2010- 2011, they propose to increase the focus towards clientele of Private Wealth Advisory (PWA) and Family Office (FO) group. PWA accounts are clients with Assets under Management of more than Rs.50.000 millions and similarly Family Office accounts would Assets under Management of more than Rs.250.000 millions. Accordingly they plan to consolidate the presence in Wealth Advisory business by refocusing the target segment to PWA and FO group. Accordingly, they would economize the team size of Financial Advisors.

 

As far as the ASK Insurance Broking and Risk Management Services Private Limited is concerned, business has grown at a steady pace and continues to deliver commendable performance in both competitive and challenging markets. Building the strength and capabilities of the teams is an essential component of the strategy.

 

For ASK Property Investment Advisors Private Limited, this was the second year and the first full year of the Company’s operations after the successful launch of the advisory mandate to Real Estate PMS last year. Given the positively changing environment they envisage that they will come across many investment opportunities and thus expect to invest the balance fund in the coming year.

 

During the coming year, the focus, like last year, would continue to be on improving resource, knowledge and capacity development with special focus on improving investor communication.

 

·         Composite scheme of amalgamation and arrangement (the Scheme) has been sanctioned by the Hon’ble High Court of Judicature of Bombay on 6th of March 2009 and filed with the Registrar of Companies on 28th March 2009 with the objective of reorganizing the business operations of the ASK Group; effective from 1st April 2008.

 

“AKK Equity Research Private Limited (AKK)”, “SKK Finvest Private Limited (SKK)” (Associates of the Holding Company) and “ASK Investment and Financial Consultants Private Limited (ASKIFC)” (The Holding Company) are amalgamated into the Company. The Portfolio and Leasing Undertaking of the amalgamated Company was thereafter demerged as a Going Concern into Fiorina Realty Private Limited (Fiorina). AKK and SKK were carrying on the activities of investments and ASKIFC was carrying on the activities of investments and leasing.

 

·         Accordingly,

 

         I.      The investments of AKK and SKK of Rs.32.881 millions, being investments in the Holding Company and the investments of the Holding Company of Rs.262.324 millions (including premium of Rs.39.300 millions) in the Company, stand cancelled;

 

       II.      The assets of Rs.500.942 millions, liabilities of Rs.307.999 millions - and Statutory Reserves of Rs.45.000 millions- of the Holding Company have been transferred to the Company;

 

      III.      30,000 Preference Shares of Rs.10 each amounting to Rs.0.300 millions are being issued to the shareholders of AKK, SKK and other shareholders of the Holding Company. Pending the issue of the preference shares the difference has been credited to Share Capital Suspense Account.

 

    IV.      The difference of Rs.147.642 millions have been credited to the General Reserve as laid down in the aforesaid scheme. Had the scheme not prescribed this accounting treatment, the said amount would have been credited to Capital Reserve.

 

      V.      Thereafter, the assets of Rs.1027.892 millions, liabilities of Rs.285.538 millions and Statutory Reserves of Rs.45.000 millions of the Company are transferred to Fiorina. Assets and Liabilities of Portfolio and Leasing Undertaking are as mutually decided with Fiorina in terms of the scheme. The Net Assets of Rs.697.354 millions have been adjusted against the General Reserve (Rs.147.642 millions) and balance against the Profit and Loss Account brought forward (Rs.549.712 millions).

 

    VI.      The figures for the previous year are not comparable.

Form 8

 

This form is for

Modification of charge

Charge identification number of the modified 

80031910

Corporate identity number of the company

U65990MH1994PTC077449

Name of the company

ASK INVESTMENT HOLDINGS PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

Bandbox House, Mbers 254 D, Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra, India

Type of charge

Immovable Property

Particular of charge holder

HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

E-Mail: gumpena.satyanaryana@hdfcbank.com

CIN No: L65920MH1994PLC080618

Nature of description of the instrument creating or modifying the charge

Partial satisfaction of charge by Rs.50.000 Millions

Overdraft facility of Rs.50.000 Millions discounted/satisfied

Date of instrument Creating the charge

09.06.2009

Amount secured by the charge

Rs.52.500 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Interest may be stipulated by bank from time to time

 

Terms of Repayment

On Demand

 

Margin

As may be stipulated by bank from time to time

 

Extent and Operation of the charge

First and exclusive charge on immovable properties as security for repayment of Term Loan of Rs.52.500 Millions granted by the bank to the company

Short particulars of the property charged

Entire 1st floor premises admeasuring 12,980 sq.ft built up or thereabouts (the said 1st floor) in the building known as “Band Box House” Worli Estate, Mumbai constructed upon the leasehold land (B) below alongwith undivided 1/5th right title and interest in all that piece and parcel of land or ground

Date of latest modification prior to the present modification

11.05.2007

Particulars of the present modification

Charge on existing security for repayment of Term Loan of Rs.52.500 millions granted to ASK Investment Holdings Private Limited.

Total facilities Rs.52.500 millions are secured by charge on the property  

 

Contingent Liability

 

Particulars

As on 31.03.2010

(Rs. in millions)

Uncalled liability on 9240000 equity shares partly paid of Rs.10/- per share of ASK Property Investment Advisors Private Limited

91.476

 

Fixed Assets

 

·         Leasehold Improvements

·         Furniture and Fixtures

·         Computer Hardware

·         Office Equipment

·         Motor Cars

·         Computer Software

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.44.90

UK Pound

1

Rs.72.54

Euro

1

Rs.63.39

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

53

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.