|
Report Date : |
31.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRINCIPAL PNB ASSET MANAGEMENT COMPANY PRIVATE LIMITED [w.e.f.
24.01.2005] |
|
|
|
|
Formerly Known
As : |
INDIAN INVESTMENT MANAGEMENT COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Exchange Plaza, 2nd Floor, B Wing, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
20.11.1991 |
|
|
|
|
Com. Reg. No.: |
11-64092 |
|
|
|
|
Capital
Investment/ Paid-up Capital: |
Rs.100.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U25000MH1991PTC064092 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUM105257A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI9361B |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is act a Asset management company |
|
|
|
|
No. of
Employees: |
150 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 940000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses 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 dealing with some
caution. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
ICRA has withdrawn the conditional rating [ICRA]AAAmfs(SO)
(pronounced ICRA triple A m f s Structured Obligation) assigned to the
Principal Capital Protection Oriented Fund of Principal PNB Asset Management
Company Private limited. The rating on the scheme has been withdrawn on AMC’s
request as the said scheme filing for SEBI approval has been withdrawn by the
AMC
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Devang Ghia |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-22-67720555 |
|
Date : |
30.08.2012 |
LOCATIONS
|
Registered Office : |
Exchange Plaza, 2nd Floor, B Wing, |
|
Tel. No.: |
91-22-67720555 |
|
Fax No.: |
91-22-22044990/67720512 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
DIRECTORS
As on 28.09.2011
|
Name : |
Mr. Mukund Manohar Chitale |
|
Designation : |
Director |
|
Address : |
4/46, Vishnu Prasad Society Shahaji Raje Marg, Vile Parle (East),
Mumbai-400057, |
|
Date of Birth/Age : |
16.11.1949 |
|
Qualification : |
B.Com, Chartered Accountant |
|
Date of Appointment : |
29.03.2007 |
|
Din No.: |
00101004 |
|
|
|
|
Name : |
Mr. Rustam Jehangir Gagrat |
|
Designation : |
Director |
|
Address : |
9, |
|
Date of Birth/Age : |
05.11.1959 |
|
Qualification : |
M.A., Advocate, Solicitor, Notary |
|
Date of Appointment : |
29.05.2001 |
|
Din No.: |
00096581 |
|
|
|
|
Name : |
Mr. Ashok Vij |
|
Designation : |
Director |
|
Address : |
A-1/117A, Safdarjung Enclave, New Delhi-110029, |
|
Date of Birth/Age : |
05.05.1955 |
|
Qualification : |
B. Com, Chartered Accountant |
|
Date of Appointment : |
05.07.2006 |
|
Din No.: |
00494487 |
|
Passport No.: |
|
|
|
|
|
Name : |
Mr. Pradipta Kumar Monapatra |
|
Designation : |
Alternate Director |
|
Address : |
M 83, Ramkrishna |
|
Date of Birth/Age : |
01.12.1956 |
|
Date of Appointment : |
27.04.2010 |
|
Din No.: |
02660553 |
|
|
|
|
Name : |
Mr. Rajan Ramkrishna Ghotgalkar |
|
Designation : |
Managing Director |
|
Address : |
10 A II, Great, Eastern Royale 1/322, |
|
Date of Birth/Age : |
04.05.1958 |
|
Qualification : |
B.Com (Honours), Chartered Accountant |
|
Date of Appointment : |
19.09.2006 |
|
Din No.: |
00777125 |
|
|
|
|
Name : |
Mr. Rex Kuen Pak Auyeung |
|
Designation : |
Director |
|
Address : |
Flat B 13/F, |
|
Date of Birth/Age : |
16.04.1952 |
|
Date of Appointment : |
17.01.2008 |
|
Din No.: |
00504658 |
KEY EXECUTIVES
|
Name : |
Mr. Devang Ghia |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 28.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Principal Financial Group ( |
|
1499998 |
|
Principal Financial Group ( |
|
5000004 |
|
Punjab National Bank |
|
3000000 |
|
Vijaya Bank |
|
500000 |
|
Padhya Arvind Sudhin Chandra |
|
1 |
|
Padhya Arvind Sudhin Chandra |
|
5 |
|
Total |
|
10000008 |
As on 26.06.2012
|
Names of Shareholders |
|
No. of Shares |
|
Principal Financial Group ( |
|
560001 |
As on 28.09.2011
|
Category |
|
Percentage |
|
|
|
|
|
Nationalised or other banks |
|
35.00 |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
64.99 |
|
Other |
|
0.01 |
|
|
|
|
|
Total
|
|
100.000 |
BUSINESS DETAILS
|
Line of Business : |
Asset Management Company. |
|
|
|
|
Terms : |
|
|
Selling : |
Cash/Credit (30 Days to 60 Days) |
|
|
|
|
Purchasing : |
Cash/Credit (30 Days to 60 Days) |
GENERAL INFORMATION
|
Customers : |
Corporate |
|
|
|
|
No. of Employees : |
150 (Approximately) |
|
|
|
|
Bankers : |
IDBI Bank |
|
|
|
|
Facilities : |
- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.V. Ghatalia and Associates Chartered
Accountant |
|
Address : |
6th Floor, |
|
Pan No.: |
AACFD4814A |
|
|
|
|
Ultimate Holding Company : |
·
Principal Financial Group, Inc |
|
|
|
|
Holding Company: |
·
Principal Financial Group ( |
|
|
|
|
Subsidiaries : |
·
Principal International, Inc |
|
|
|
|
Fellow Subsidiaries: |
·
Principal Pnb Trustee Company Private Limited ·
PNB Principal Financial Planners Private Limited |
|
|
|
|
Associates: |
·
Punjab National Bank |
CAPITAL STRUCTURE
After 28.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
1000000 |
Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10560009 |
Equity Shares |
Rs.10/- each |
Rs.105.600
Millions |
|
|
|
|
|
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
1000000 |
Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000008 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions
|
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
100.000 |
100.000 |
100.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
460.000 |
460.000 |
460.000 |
|
|
4] (Accumulated Losses) |
(325.588) |
(299.786) |
[319.394] |
|
|
NETWORTH |
234.412 |
260.214 |
240.606 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
234.412 |
260.214 |
240.606 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
43.289 |
62.484 |
76.115 |
|
|
Capital work-in-progress |
0.006 |
0.220 |
4.055 |
|
|
|
|
|
|
|
|
INVESTMENT |
92.901 |
55.099 |
28.488 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000 |
|
|
Sundry Debtors |
22.549
|
38.466
|
12.995
|
|
|
Cash & Bank Balances |
0.951
|
1.162
|
1.128
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
149.667
|
167.632
|
145.062
|
|
Total
Current Assets |
173.167
|
207.260 |
159.185 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
26.465
|
20.920
|
7.985
|
|
|
Other Current Liabilities |
47.424
|
43.130
|
16.738
|
|
|
Provisions |
1.062
|
0.800
|
2.514
|
|
Total
Current Liabilities |
74.951
|
65.115 |
27.237 |
|
|
Net Current Assets |
98.216
|
143.411 |
131.948 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
234.412 |
260.214 |
240.606 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
|
|
TOTAL INCOME |
412.574 |
387.499 |
216.697 |
|
|
|
|
|
|
|
|
TOTAL EXPENSES
|
NA |
376.006 |
633.541 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
NA |
11.493 |
(416.844) |
|
|
|
|
|
|
|
Less |
TAX |
NA |
(8.115) |
10.574 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
(25.802) |
19.608 |
(427.418) |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(371.099) |
(390.707) |
36.711 |
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(396.901) |
(371.099) |
(390.707) |
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
1.162 |
0.362 |
0.400 |
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.58) |
1.96 |
(42.74) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(6.25) |
5.06
|
(197.24)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
NA |
4.26
|
(177.15)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
NA |
0.04
|
(1.73)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.32 |
0.25
|
0.11
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.31 |
3.18
|
5.84
|
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Constitution
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
Yes |
|
No.
of Employees |
Yes |
|
Name
of Person Contacted |
Yes |
|
Designation
of contact person |
Yes |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
Yes |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
No |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
Yes |
|
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
PAN
of Proprietor/Partner/Director, if available |
No |
|
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
External Agency
Rating, if available |
Yes |
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
|
|
|
|
-Due to Micro and Small Enterprises |
-- |
-- |
-- |
|
-Other Creditors |
26.465 |
20.920 |
7.985 |
Note:
The Registered office of the company has been
shifted from the
FINANCIAL RESULTS
During the year,
Gross Income of the Company improved by 6.5% from Rs.387.500 Millions to Rs.
412.600 Millions, despite a very challenging market environment for the Indian
Mutual Fund Industry. In December 2010, the Company launched a New Equity Fund
Principal Smart Equity Fund, and mobilized Rs. 1380.000 Millions during the NFO
period. The Fund has been very positively received in the market and the fund corpus
increased to Rs. 2080.000 Millions as of March 31, 2011. The Company incurred
NFO expenditure of Rs. 21.700 Millions for the Launch of this fund, and as per
SEBI Regulations, this has been fully absorbed by the Company in the current
year. In addition, the Company continued to invest resources in enhancing the
Equity AuM mix of the overall Assets under Management (AuM). The Company has
reported a Net Loss of Rs. 25.800 Millions during the current year as compared
to a profit of Rs. 19.600 Millions in the previous year, primarily due to
increased Scheme administration expenses relating largely to Equity Funds.
Equity AuM mix has improved to 54% as at the end of the current year compared
to 46% as at the end of the previous year. With a stronger Equity AuM mix and
continued thrust on improving Assets under Management by focusing on retail
Equity mobilization, the Company expects to be back in the black in the next
financial year
FUTURE OUTLOOK
2010 has been a
watershed year for the Mutual Fund (MF) Industry as all the participants looked
to adapt to the new business environment post the landmark regulatory changes.
The new financial year is expected to be the year of consolidation and of
further building up on the initiatives taken during the last year.
During the current
Financial Year, the Company will continue to focus on improving operational
efficiencies and reducing transactional costs coupled with increased reliance
on technology for operations, client servicing and client communications.
Likewise it will continue its endeavor towards augmenting retail assets with
focus on Equity Funds while simultaneously remaining proactive with Investor
Education campaigns.
The Company shall
also continue to provide high quality non-discretionary investment advisory
services and research for different overseas funds investing in
Presently, the
Company manages 20 schemes of Principal Mutual Fund of which nine are Equity
(including 2 ELSS Schemes), two Balanced, one Fund of Funds Scheme and eight
Debt Schemes (including 2 liquid Schemes). Subject to approval of SEBI and
Principal Trustee Company Private. Limited (Trustee), the Company would seek to
include such other schemes in its product offerings, to suit the requirement of
investors at every stage of their life.
True to label fund
management, improving operational efficiencies and controlling potential risks
through proper governance will be followed to the tee as they look to achieve
healthy growth in Financial year 2011-12.
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.55.65 |
|
|
1 |
Rs.88.10 |
|
Euro |
1 |
Rs.69.84 |
INFORMATION DETAILS
|
Information
Gathered by : |
JML |
|
|
|
|
Report Prepared
by : |
BYI |
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 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
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.