MIRA INFORM REPORT
|
Report Date : |
20.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
TATA MOTORS FINANCE LIMITED (w.e.f. 28.08.2007) |
|
|
|
|
Formerly Known
As : |
TML FINANCIAL SERVICES LIMITED |
|
|
|
|
Registered
Office : |
C/O. Tata Motors Limited, 3rd Floor, Nanavati Mahalaya, 18,
Homi Mody Street, Mumbai – 400 001, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
01.06.2006 |
|
|
|
|
Com. Reg. No.: |
11-162503 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.11700.000
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65923MH2006PLC162503 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in financing entire range of Passenger Cars and
Commercial Vehicles manufactured by Tata Motors Limited. |
|
|
|
|
No. of Employees
: |
828 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 93200000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of Tata Motors Limited. It is one of It is an established company having fine track record. Financial
position of the company appears to be sound. It has achieved a better
increase in its sales turnover and profits during 2012. Trade relations are reported as trustworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good 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.
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA- (Long Term Bank Facilities) |
|
Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligations it carry low credit risk. |
|
Date |
July, 2012 |
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 DECLINED
Management non-cooperative
LOCATIONS
|
Registered Office : |
C/O. Tata Motors Limited, 3rd Floor, Nanavati Mahalaya, 18,
Homi Mody Street, Mumbai – 400 001, |
|
Tel. No.: |
91-22-61815640 |
|
Fax No.: |
91-22-61815700 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
|
|
Tel. No.: |
91-22-61815400 |
|
|
|
|
Branch Office : |
Located at: v
Andhra Pradesh v
v
v
Chhatisgarh v
v
v
v
Haryana v
Himachal Pradesh v
v
Jharkhand v
Karnataka v
Kerala v
Madhya Pradesh v
v
Orissa v
v
Rajasthan v
Tamilnadu v
Tripura v
Uttar Pradesh v
Uttaranchal v
|
DIRECTORS
As on 29.05.2012
|
Name : |
Mr. Chandrasekaran Ramakrishnan |
|
Designation : |
Director |
|
Address : |
322, Samudra Mahal, |
|
Date of Birth/Age : |
27.06.1955 |
|
Date of Appointment : |
23.01.2008 |
|
DIN No.: |
00020076 |
|
|
|
|
Name : |
Mr. Bharat Damodar Vasani |
|
Designation : |
Director |
|
Address : |
Flat No.F-601, Tower II, |
|
Date of Birth/Age : |
24.08.1958 |
|
Date of Appointment : |
24.08.2006 |
|
DIN No.: |
00040243 |
|
|
|
|
Name : |
Mr. Hoshang Noshirwan Sinor |
|
Designation : |
Director |
|
Address : |
764-F, |
|
Date of Birth/Age : |
05.12.1944 |
|
Date of Appointment : |
01.06.2006 |
|
DIN No.: |
00074905 |
|
|
|
|
Name : |
Mr. Shyam Mani |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
Flat No.1201, Tower V, ‘Celesta’ Planet Godrej, 30, Keshavrao Khadye
Marg, Mahalaxmi, Mumbai – 400 011, |
|
Date of Birth/Age : |
01.09.1953 |
|
Qualification : |
B. Tech |
|
Experience : |
37 Years |
|
Date of Appointment : |
01.02.2012 |
|
DIN No.: |
00273598 |
|
|
|
|
Name : |
Mr. Ravindra Narayan Pisharody |
|
Designation : |
Director appointed in casual vacancy |
|
Address : |
Hill Park Estate, Flat No.9, 2nd Floor, Block No.1, A.G.
Bell Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India |
|
Date of Birth/Age : |
24.11.1955 |
|
Date of Appointment : |
03.08.2010 |
|
DIN No.: |
01875848 |
|
|
|
|
Name : |
Mr. Nasser Mukhtar Munjee |
|
Designation : |
Director |
|
Address : |
Benedict Villa, House No.471,
Saudevado, |
|
Date of Birth/Age : |
18.11.1952 |
|
Date of Appointment : |
25.01.2012 |
|
DIN No.: |
00010180 |
KEY EXECUTIVES
|
Name : |
Mr. Vinay Baburao Lavannis |
|
Designation : |
Secretary |
|
Address : |
B-503, |
|
Date of Birth/Age : |
13.03.1964 |
|
Date of Appointment : |
01.09.2006 |
|
PAN No.: |
AAAPL7819C |
|
|
|
|
Name : |
Mr. Adarsh Kumar |
|
Designation : |
Head – CV and PC Business |
|
|
|
|
Name : |
Mr. Hari Sivaraman |
|
Designation : |
Regional Business Head, South |
|
|
|
|
Name : |
Mr. Keval Krishan Sharma |
|
Designation : |
Regional Business Head, North |
|
|
|
|
Name : |
Mr. Pavan Trivedi |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Ms. Sandhya V. Vartak |
|
Designation : |
Head – Dealer Driven Business and Transition Bans |
|
|
|
|
Name : |
Mr. Shantanu Padhye |
|
Designation : |
Head – Sales for Commercial Vehicle and Passenger Car Business |
|
|
|
|
Name : |
Mr. Tarun Samant |
|
Designation : |
Head – Operations and Credit |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.05.2012
|
Names of Shareholders |
|
No. of Shares |
|
Tata Motors Limited, |
|
1169999994 |
|
Tata Motors Limited, Jointly with Ravindra Pisharody |
|
1 |
|
Tata Motors Limited, Jointly with Hoshang N. Sinor |
|
1 |
|
Tata Motors Limited, Jointly with Shyam T. Mani |
|
1 |
|
Tata Motors Limited, Jointly with Hoshang K. Sethna |
|
1 |
|
Tata Motors Limited, Jointly with Bharat D. Vasani |
|
1 |
|
Tata Motors Limited, Jointly with C. Ramakrishnan |
|
1 |
|
Total |
|
1170000000 |
As on 30.06.2012
|
Names of Allottee |
|
No. of Shares |
|
Tata Motors Limited, |
|
60000000 |
|
Total |
|
60000000 |
As on 29.05.2012
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in financing entire range of Passenger Cars and
Commercial Vehicles manufactured by Tata Motors Limited. |
GENERAL INFORMATION
|
No. of Employees : |
828 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Not Available |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes: LONG TERM BORROWINGS Nature of Security for Secured Borrowings
outstanding as on March 31, 2012 Nature of
security on borrowings including interest accrued thereon: a. Privately
placed non-convertible debentures are fully secured by i) First charge
on Company's residential flat ii) Pari-passu
charge is created with the security trustee for loans from banks on -All receivables
of the Company arising out of loan and trade advances, -All book debts
arising out of loan and trade advances iii) First
charge on secured/ unsecured loans given by the Company as identified
from time to time and accepted by the debenture trustee iv) Any other
security as identified by the Company and acceptable to the debenture
trustee. b. Term Loans from banks and others are secured by a pari-passu charge in
favour of the security trustee on receivables and book debts specified in (a)
(ii) above and such current assets as may be identified by the Company from
time to time and accepted by the security trustee. Terms of repayment for Term Loans Term loans from
banks are repayable at fixed maturities and entire loan amount is repayable
at the end of the tenure. Average tenure of loan ranges between 2 to 3 years.
Loans are borrowed at fixed rate of interest and in some cases there is reset
clause of interest at defined time interval. At the time of reset the company
has an option to repay the loan. SHORT TERM BORROWINGS Nature of Security for Secured Borrowings
outstanding as on March 31, 2012 Loans from banks
and others for cash credit, working capital demand loans and other loans are
secured by a pari-passu charge in favour of the security trustee on
receivables and book debts and such current assets as may be identified by
the Company from time to time and accepted by the security trustee. Pari-passu
charge is created with the security trustee for loans from banks on -All receivables
of the Company arising out of loan and trade advances, -All book debts
arising out of loan and trade advances. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
IL and FS Trust Company Limited, IL and FS Financial Centre, Plot
No.C22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051,
Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
12, |
|
Tel. No.: |
91-22-66679000 |
|
Fax No.: |
91-22-66679100 |
|
Income-tax
PAN of auditor or auditor's firm : |
AACFD4815A |
|
|
|
|
Holding Company : |
Tata Motors Limited (CIN No.: L28920MH1945PLC004520) |
|
|
|
|
Fellow Subsidiaries : |
v
Concorde Motors ( v
Tata Technologies Limited (TTL) |
|
|
|
|
Enterprises over which key management personnel exercises significant
influence : |
e-Nxt Financials Limited (e-Nxt) (up to January 31, 2012) |
CAPITAL STRUCTURE
After 29.05.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 Millions |
|
75000000 |
Preference Shares |
Rs.100/- each |
Rs.7500.000 Millions |
|
|
Total |
|
Rs.27500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1230000000 |
Equity Shares |
Rs.10/- each |
Rs.12300.000
Millions |
|
|
|
|
|
As on 29.05.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 Millions |
|
75000000 |
Preference Shares |
Rs.100/- each |
Rs.7500.000 Millions |
|
|
Total |
|
Rs.27500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1170000000 |
Equity Shares |
Rs.10/- each |
Rs.11700.000
Millions |
|
|
|
|
|
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 Millions |
|
75000000 |
Preference Shares |
Rs.100/- each |
Rs.7500.000 Millions |
|
|
Total |
|
Rs.27500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1170000000 |
Equity Shares |
Rs.10/- each |
Rs.11700.000
Millions |
|
|
|
|
|
Reconciliation
of the shares outstanding at the beginning and at the end of the reporting
period:
|
Equity
shares |
As at 31st
March, 2012 |
|
|
No. of Shares |
Amount (Rs. in
millions) |
|
|
Shares
outstanding at the beginning of the year |
1050000000 |
10500.000 |
|
Shares
Issued during the year |
120000000 |
1200.000 |
|
Shares outstanding at the
end of the year |
1170000000 |
11700.000 |
As at March 31, 2012 all the Equity Shares were held by Tata Motors Limited,
the holding company and its nominees.
Term/rights
attached to equity shares
The
company has only one class of equity shares having a par value of Rs.10/- per
share. Each holder of equity shares is entitled to one vote per share. The
holders of equity shares are also entitled for the dividend as proposed by the
Board of Directors.
In
the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
11700.000 |
10500.000 |
8500.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11600.356 |
8081.215 |
5203.463 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(393.301) |
|
|
NETWORTH |
23300.356 |
18581.215 |
13310.162 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
54846.685 |
41331.431 |
34877.415 |
|
|
2] Unsecured Loans |
54710.794 |
35621.668 |
38839.500 |
|
|
TOTAL BORROWING |
109557.479 |
76953.099 |
73716.915 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
132857.835 |
95534.314 |
87027.077 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
589.835 |
443.842 |
260.327 |
|
|
Capital work-in-progress |
69.441 |
33.129 |
2.044 |
|
|
|
|
|
|
|
|
INVESTMENT |
62.200 |
580.400 |
3909.324 |
|
|
DEFERRED TAX ASSETS |
1367.985 |
1639.512 |
1761.871 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000 |
|
|
Sundry Debtors |
848.415
|
620.493
|
0.000 |
|
|
Cash & Bank Balances |
7028.128
|
8965.985
|
14866.301 |
|
|
Other Current Assets |
621.986
|
1322.753
|
2592.186 |
|
|
Finance Receivables |
158175.697
|
98116.819
|
0.000 |
|
|
Loans & Advances |
3138.638
|
3511.018
|
71365.656 |
|
Total
Current Assets |
169812.864
|
112537.068 |
74876.674 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1748.389
|
1537.483
|
6107.895 |
|
|
Other Current Liabilities |
35878.058
|
16914.669
|
375.359 |
|
|
Provisions |
1418.043
|
1247.485
|
1247.378 |
|
Total
Current Liabilities |
39044.490
|
19699.637 |
7730.632 |
|
|
Net Current Assets |
130768.374
|
92837.431
|
81093.511 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
132857.835 |
95534.314 |
87027.077 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
20176.472 |
13992.472 |
11320.034 |
|
|
|
Other Income |
761.357 |
762.351 |
799.081 |
|
|
|
TOTAL (A) |
20937.829 |
14754.823 |
12119.115 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefits Expenses |
1158.228 |
963.388 |
7039.611 |
|
|
|
Other Expenses |
5833.012 |
5728.960 |
|
|
|
|
TOTAL (B) |
6991.240 |
6692.348 |
7039.611 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13946.589 |
8062.475 |
5079.504 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
10319.022 |
5974.056 |
4330.116 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3627.567 |
2088.419 |
749.388 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
76.394 |
62.463 |
64.063 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3551.173 |
2025.956 |
685.325 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1152.130 |
754.903 |
243.679 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2399.043 |
1271.053 |
441.646 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
623.541 |
(393.301) |
(746.618) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Special
Reserve |
479.800 |
254.211 |
88.329 |
|
|
|
Proposed Dividend |
585.000 |
0.000 |
0.000 |
|
|
|
Tax on Dividend |
94.900 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1862.884 |
623.541 |
(393.301) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.15 |
1.41 |
0.52 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
11.46 |
8.61 |
3.64 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.60 |
14.48 |
6.05 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.08 |
1.79 |
0.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.11 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
6.38 |
5.20 |
6.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.35 |
5.71 |
9.69 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
31.03.2010 (Rs.
in millions) |
|
Sundry Creditors |
|
|
|
|
- Due of Micro, Small and Medium Enterprises |
4.105 |
14.773 |
7.275 |
|
- Due to Others |
1744.284 |
1522.710 |
6100.620 |
|
Total |
1748.389 |
1537.483 |
6107.895 |
|
Check
List by Info Agents |
Available
in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
No |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
CORPORATE
INFORMATION
The Company is a wholly owned subsidiary of Tata Motors Limited (TMIL)
and is registered as a Non-Banking Financial (Non Deposit Accepting or Holding)
Company with the Reserve Bank of
BUSINESS OUTLOOK
For the financial
year ended March 31, 2012, the Company earned a profit before tax of
Rs.3551.100 millions as against Rs.2025.900 millions in the earlier year,
posting an increase of 76%. The profit after tax of Rs.2399.000 millions was
89% higher than the previous year (Rs.1271.100 millions). The total income for
the year consideration was Rs.20937.800 millions against the total income of
Rs.14292.300 millions during last year showing an increase of 46%.
Total
disbursements by the Company were higher by 33% at Rs.105050.000 millions
against Rs.79080.000 millions of the previous year. The Company financed 230588
vehicles during the year as compared to 160781 vehicles in the previous year,
reflecting a growth of 43%.
Disbursals for
commercial vehicles were Rs.72040.000 millions (120032 units) as compared to
Rs.60410.000 millions (94446 units) in the previous year. The Passenger Car
business grew significantly with the disbursements on the Nano and passenger
cars. Disbursals for passenger cars for the year were at Rs.33010.000 millions
(110556 units) compared to Rs.18670.000 millions (66335 units) in the previous
year.
In an environment
of sluggish growth in the economy and rising interest costs, the Company has been
able to perform well during the financial year and has shown good growth in its
business performance through the efforts of motivated employees and increased
customer orientation. The Company is now poised for significant growth and
prosperity and is confident that it would deliver on its vision for the future.
The Company's
fortunes are closely linked' to those of the automobile industry. Consequently,
the growth prospects for 2012-13 are likely to be broadly reflective of those
trends. In the projected scenario of low to moderate growth, continuing
inflation and higher interest costs, the Company will continue to strive for
meaningful growth and profitability, through its focus on cost control,
strengthening processes and control on contract level collections as well as in
its improvements in recoveries from non performing assets through the various
initiatives that the company had initiated in the previous years.
The Company's key
initiative of improving customer relations by effectively growing its 'Office
of the Customer' as well as through the complete deployment of its ‘Risk
Scored Pricing Model' has helped improve
the Company's profitability.
The Company has
also enhanced and significantly improved its branch network and infrastructure
and, is confident that these investments will pay rich dividend through
significant improved relations with its customers and dealers.
FINANCE
During the year,
the company saw significant increases in the interest rates on its borrowings
driven largely by tight liquidity conditions and continuous increase in the
policy rate. Not withstanding the above, the Company managed to maintain its
cost of borrowings effectively through a combination of bank borrowings,
Non-convertible Debentures (NCD), and Commercial Paper (CP).
The weighted
average cost of borrowings for the year was 9.72% per annum (previous year:
8.33%) on borrowings of Rs.139080.000 millions (previous year: Rs.87010.000
millions) as of March 31, 2012.
During the year, the
Company issued CP's of varying tenors, aggregating Rs.48720.000 millions. The
Company also issued secured long term NCDs aggregating to Rs.9290.000 millions
during FY 2011-12. Loans from Banks aggregating to Rs.53000.000 millions were
raised in the FY 2011-12.
The Company
successfully placed Rs.1545.000 millions as Tier 2 capital in the FY 2011-12 to
enhance its Capital Adequacy ratio. With this, total Tier 2 Capital as at the
year end was Rs.6544.000 millions. No additional Tier I Capital through issue
of perpetual debt (last year: Rs.1500.000 millions) was raised during the year.
CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED
FOR
a) Claims against the company not acknowledged as
debts:
|
Particulars |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
In respect of
Income Tax matters |
279.022 |
237.839 |
|
In respect of
Value Added Tax matters |
3.661 |
0.000 |
|
In respect of
Service Tax/CENVAT matters |
16.091 |
0.000 |
|
In respect of
pending Consumer disputes |
29.825 |
26.984 |
|
|
328.599 |
264.823 |
b) Other money for which the Company is
contingently liable:
|
Particulars |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
Cash collateral with
banks in respect of finance receivables assigned/securitised* |
1608.877 |
3031.054 |
|
In respect of
guarantees given for liability against receivables assigned by way of
securitisation * - by banks |
19879.938 |
27820.930 |
|
In respect of subordinated
over dues on securitization transaction's |
112.613 |
327.529 |
|
In respect of
guarantees given for - Security
against the demand raised by regulatory authorities |
0.000 |
0.900 |
* Gross of
provision for assigned/securitised receivables Rs.220.898 millions (as at March
31, 2011 Rs.1469.742 millions).
FIXED ASSETS:
Tangible Assets
v Office Premises/ Residential Flat
v Plant and Machinery
v Furniture and Fixtures
v Vehicles
v Buildings
v Office Equipment
v Data Processing Machines
Intangible Assets
v 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,
1] INFORMATION ON
DESIGNATED PARTY
No 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 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.54.74 |
|
|
1 |
Rs.89.02 |
|
Euro |
1 |
Rs.72.48 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
68 |
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.