MIRA INFORM REPORT
|
Report Date : |
24.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
SAHARA SERVICE LIMITED |
|
|
|
|
Registered
Office : |
Sahara India Bhavan, 1, Kapoorthala Complex, Aliganj, Lucknow – 226
024, Uttar Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
27.03.2006 |
|
|
|
|
Com. Reg. No.: |
20-031539 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 7.900 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74999UP2006PLC031539 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
LKNS07969D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAJCS9018A |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Engaged in the business of offering tour packages and selling of home
care products through its website only. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (12) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Poor |
|
|
|
|
Payment Behaviour : |
Delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a company having a poor track record. There appears huge
losses which tends to be increasing over years. External borrowing recorded by the company appears to be huge. The
liquidity of the company appears to be vulnerable and weak. There appears
delay in servicing its debts. However, Business is active. Payments terms are delayed. The company can be considered for business dealing on a safe and
secured trade terms and conditions. Note:- There are various cases pending against Group Companies. |
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
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.
LOCATIONS
|
Registered Office : |
Sahara India Bhavan, 1, Kapoorthala Complex, Aliganj, Lucknow – 226
024, Uttar Pradesh, India |
|
Tel. No.: |
91-522-2334524 |
|
Fax No.: |
91-522-2334524 |
|
E-Mail : |
DIRECTORS
As on 29.09.2012
|
Name : |
Mr. Ravi Shankar Dubey |
|
Designation : |
Director |
|
Address : |
14/32, Yaman, Sahara States, Jankipuram, Lucknow – 226021, Uttar
Pradesh India |
|
Date of Birth/Age : |
01.01.1963 |
|
Date of Appointment : |
25.09.2007 |
|
DIN No.: |
00097186 |
Other Directorship:
|
S.No. |
CIN/LLPIN |
Name
of the Company/ LLP |
Current
designation of the Director/ Designated Partner |
Date
of appointment at current designation |
Original
date of appointment |
Date
of cessation |
Company/
LLP Status |
Defaulting
status |
|
1 |
U45201UP2002PTC026596 |
SAHARA
TOWNSHIP PRIVATE LIMITED |
Director |
12/04/2002 |
12/04/2002 |
- |
Active |
NO |
|
2 |
U45201UP2002PTC026594 |
SAHARA
STRUCTURALS PRIVATE LIMITED |
Director |
12/04/2002 |
12/04/2002 |
- |
Active |
NO |
|
3 |
U45201UP2002PTC026592 |
SAHARA
RESIDENTIALS PRIVATE LIMITED |
Director |
12/04/2002 |
12/04/2002 |
- |
Active |
NO |
|
4 |
U45200MH1995PTC094266 |
MANMANDIR
PROPERTIES PRIVATE LIMITED |
Director |
23/08/2004 |
23/08/2004 |
- |
Active |
NO |
|
5 |
U45202MH1995PTC094267 |
KIRDAR
PROEPRTIES PRIVATE LIMITED |
Director |
23/08/2004 |
23/08/2004 |
- |
Active |
NO |
|
6 |
U45200MH1995PTC092827 |
GLOWSHINE
BUILDERS AND DEVELOPERS PRIVATE LIMITED |
Director |
23/08/2004 |
23/08/2004 |
- |
Active |
NO |
|
7 |
L99999MH1980PLC022653 |
MASTER
CHEMICALS LIMITED |
Director |
25/03/2005 |
25/03/2005 |
- |
Active |
NO |
|
8 |
U74999UP2006PLC031539 |
SAHARA
SERVICE LIMITED |
Director |
25/09/2007 |
27/03/2006 |
- |
Active |
NO |
|
9 |
U70102MH2004PLC145582 |
SAHARA
HOUSING INVESTMENT CORPORATION LIMITED |
Director |
31/03/2006 |
31/03/2006 |
- |
Active |
NO |
|
10 |
U99999MH1990PLC122159 |
SAHARA
INDIA FINANCE AND INVESTMENT LIMITED |
Director |
27/09/2006 |
01/08/2006 |
- |
Active |
NO |
|
11 |
U40102DL1996PLC075884 |
KABEER
PROJECTS LIMITED |
Director |
30/09/2006 |
30/09/2006 |
- |
Active |
NO |
|
12 |
U45201UP2005PLC030918 |
SAHARA
INDIA REAL ESTATE CORPORATION LIMITED |
Director |
01/09/2008 |
28/01/2008 |
- |
Active |
NO |
|
13 |
U45400WB2007PTC119393 |
SAHARA
GREEN PROPERTIES PRIVATE LIMITED |
Director |
31/05/2008 |
21/03/2008 |
- |
Active |
NO |
|
Name : |
Mr. Chinta Mani Sukul |
|
Designation : |
Director |
|
Address : |
1/321, Viklap Khand, Gomti Nagar, Lucknow – 226010, Uttar Pradesh,
India |
|
Date of Birth/Age : |
06.09.1963 |
|
Date of Appointment : |
25.09.2007 |
|
DIN No.: |
00107224 |
Other Directorship:
|
S.No. |
CIN/LLPIN |
Name
of the Company/ LLP |
Current
designation of the Director/ Designated Partner |
Date
of appointment at current designation |
Original
date of appointment |
Date
of cessation |
Company/
LLP Status |
Defaulting
status |
|
1 |
U45201MH2003PTC143686 |
ADARSH
TOWNSHIP PRIVATE LIMITED |
Director |
14/01/2004 |
14/01/2004 |
29/09/2010 |
Active |
NO |
|
2 |
U45200MH2004PTC143998 |
PRATHAM
TOWERS PRIVATE LIMITED |
Director |
14/01/2004 |
14/01/2004 |
29/09/2010 |
Active |
NO |
|
3 |
U45200MH2004PTC144000 |
MANGALYA
TOWNSHIP PRIVATE LIMITED |
Director |
14/01/2004 |
14/01/2004 |
29/09/2010 |
Active |
NO |
|
4 |
U45200MH2004PTC143999 |
MANGALAM
ENCLAVES PRIVATE LIMITED |
Director |
14/01/2004 |
14/01/2004 |
29/09/2010 |
Active |
NO |
|
5 |
U45200MH2004PTC143997 |
EDEN
TOWNSHIP PRIVATE LIMITED |
Director |
14/01/2004 |
14/01/2004 |
29/09/2010 |
Active |
NO |
|
6 |
U45200MH2004PTC144008 |
ADARSH
HOUSING PRIVATE LIMITED |
Director |
14/01/2004 |
14/01/2004 |
29/09/2010 |
Active |
NO |
|
7 |
U45201UP2005PTC030078 |
FALGUNI
CITY HOMES PRATAPGARH PRIVATE LIMITED |
Nominee
director |
30/05/2005 |
30/05/2005 |
27/09/2010 |
Active |
NO |
|
8 |
U45201UP2005PTC030085 |
EKAVIR
CITY HOMES MEERUT PRIVATE LIMITED |
Nominee
director |
30/05/2005 |
30/05/2005 |
27/09/2010 |
Ac |
|
|
9 |
U74999UP2006PLC031539 |
SAHARA
SERVICE LIMITED |
Director |
25/09/2007 |
25/04/2007 |
- |
Active |
NO |
|
10 |
U51109WB1996PTC078475 |
POLYNOVA
COMMERCE PRIVATE LIMITED |
Director |
30/09/2009 |
26/07/2008 |
30/09/2010 |
Active |
NO |
|
11 |
U51909WB2004PTC097631 |
KIWI
COMMERCIAL PRIVATE LIMITED |
Director |
30/09/2009 |
26/07/2008 |
30/09/2010 |
Active |
NO |
|
12 |
U17111WB1994PLC065889 |
SAHARA
INDIA INFRASTRUCTURAL DEVELOPMENT LIMITED |
Director
appointed in casual vacancy |
18/08/2011 |
18/08/2011 |
- |
Ac |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.09.2012
|
Names of Shareholders |
|
No. of Equity
Shares |
|
|
|
|
|
Ravi Shankar Dubey |
|
80000 |
|
Ashok Roy Choudhary |
|
520000 |
|
Sahara Buildwell Private Limited, India |
|
80000 |
|
Sahara Enclave Private Limited, India |
|
80000 |
|
Sahara Construction Private Limited, India |
|
80000 |
|
Sahara Land Art Private
Limited, India |
|
80000 |
|
Kumkum Roy Choudhary |
|
80000 |
|
Total |
|
1000000 |
|
Names of Shareholders |
|
No. of
Preference Shares |
|
|
|
|
|
Sahara India Commercial Corporation Limited, India |
|
690000 |
Equity Share Break up (Percentage of Total Equity)
As on 29.09.2012
|
Category |
Percentage |
|
Bodies corporate |
32.00 |
|
Directors or relatives of Directors |
68.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Engaged in the business of offering tour packages and selling of home care
products through its website only. |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
D S Shukla and Company Chartered Accountants |
|
Address : |
GF – 2 , Ekta Apartment, 125, Chandralok, Aliganj, Lucknow – 226024,
Uttar Pradesh , India |
|
PAN No.: |
AADFD7041H |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
As on 29.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs. 30.000 Millions |
|
2000000 |
Preference shares |
Rs.10/- each |
Rs. 20.000 Millions |
|
|
Total |
|
Rs. 50.000
Millions |
Issued, Subscribed Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 Millions |
|
690000 |
Preference shares |
Rs.10/- each |
Rs.6.900 Millions |
|
|
Total |
|
Rs.16.900
Millions |
Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000 |
Equity Shares |
Rs.1/- each |
Rs.1.000 Millions |
|
690000 |
Preference shares |
Rs.10/- each |
Rs.6.900 Millions |
|
|
Total |
|
Rs.7.900
Millions |
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs. 30.000 Millions |
|
2000000 |
Preference shares |
Rs.10/- each |
Rs. 20.000 Millions |
|
|
Total |
|
Rs. 50.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000 |
Equity Shares |
Rs.1/- each |
Rs.1.000 Millions |
|
690000 |
Preference shares |
Rs.10/- each |
Rs.6.900 Millions |
|
|
Total |
|
Rs.7.900
Millions |
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 |
7.900 |
1.000 |
1.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
142.106 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
(299.279) |
(194.463) |
|
|
NETWORTH |
150.006 |
(298.279) |
(193.463) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
304.673 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
304.673 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
150.006 |
(298.279) |
111.210 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10.775 |
9.677 |
7.073 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
126.190 |
129.043 |
82.983 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10.664
|
7.046 |
0.475 |
|
|
Sundry Debtors |
31.891
|
44.291 |
50.492 |
|
|
Cash & Bank Balances |
10.927
|
10.228 |
9.184 |
|
|
Other Current Assets |
0.059
|
0.136 |
0.000 |
|
|
Loans & Advances |
51.891
|
53.750 |
74.571 |
|
Total
Current Assets |
105.432
|
115.451 |
134.722 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
77.150
|
66.824 |
64.551 |
|
|
Other Current Liabilities |
15.000
|
485.240 |
|
|
|
Provisions |
0.241
|
0.386 |
|
|
Total
Current Liabilities |
92.391
|
552.450 |
113.568 |
|
|
Net Current Assets |
13.041
|
(436.999) |
21.154 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
150.006 |
(298.279) |
111.210 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19.678 |
184.915 |
207.811 |
|
|
|
Other Income |
3.717 |
5.131 |
9.103 |
|
|
|
TOTAL (A) |
23.395 |
190.046 |
216.914 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase Content |
5.250 |
13.281 |
|
|
|
|
(Increase)/Decrease in inventories |
(3.617) |
(7.046) |
|
|
|
|
Employee benefits expenses |
98.352 |
61.715 |
|
|
|
|
Other Expenses |
79.162 |
218.137 |
|
|
|
|
Prior Period Items |
1.618 |
0.911 |
|
|
|
|
TOTAL (B) |
180.765 |
286.998 |
260.468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(157.370) |
(96.952) |
(43.554) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
79.725 |
52.587 |
38.878 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(237.095) |
(149.539) |
(82.432) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1.766 |
1.231 |
1.059 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(238.861) |
(150.770) |
(83.491) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
2.854 |
45.955 |
(25.214) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(241.715) |
(104.815) |
(58.277) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
30.60 |
104.82 |
58.28 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(1033.19)
|
(55.15) |
(26.87) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1213.85)
|
(81.53) |
(40.18) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(205.55)
|
120.50 |
58.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.60
|
0.51 |
0.43 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.62
|
(1.85) |
2.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.14
|
0.21 |
1.19 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
No |
|
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 |
No |
|
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 |
No |
PERFORMANCE REVIEW
During the year, the company incurred a net loss of Rs. 241.7 millions as against loss of Rs. 104.8 millions in the corresponding period of last financial year. The Board of company is hopeful of increase in its operational revenue in forthcoming period by way of undertaking expansion in its existing area of operational services and exploring new business opportunities
FIXED ASSETS
Tangible assets
- Computer
- Furniture and
fixture
- Office
equipment
- Vehicles
Intangible assets
- Softaware
- Website
- Trade Mark
PRESS RELEASE:
SAHARA SAYS ALL WELL AFTER SUPREME COURT
ORDER ON RS. 24,400 CRORE REFUND
AUGUST 31, 2012
The Supreme Court on
Friday ordered the Sahara conglomerate to refund Rs. 240000.000 Millions it had
raised from millions of small investors, reaffirming an order from market
regulator Securities and Exchange Board of India or SEBI, which had said the
process violated rules.
The Supreme Court also ordered Sahara to pay 15 per cent interest to investors
on their deposits.
After the development, the Sahara Group sought to allay concerns of its
investors and depositors, saying they “need not worry about anything” and the
group is “so healthy that there cannot be even a day’s delay in any payment
commitment of Sahara”.
Two unlisted group companies of Sahara, which has interests ranging from
financial services and housing to media and sports, had between 2008 and 2011
raised a total of Rs. 240000.000 Millions from 22 million small investors
through an instrument known as an optionally fully convertible debenture. OFCDs
are debentures that investors can convert into shares at their option.
“In the last 33 years there is not a single complaint of non-payment, whereas
we have paid around Rs.1400000.000 Millions maturity/redemption and against the
enrollment of around 12 crore investors,” Sahara said in the strongly-worded
statement.
The Securities and Exchange Board of India (SEBI) last year ordered the group
companies to refund the money, with 15 percent annual interest, after it found
that the fund-raising process did not comply with rules. In October, an
appellate tribunal upheld the regulator's order after hearing Sahara's appeal,
and said that the group had to refund the money raised through OFCDs to
investors within six weeks. The Sahara Group then moved the Supreme Court,
which had stayed the SAT decision in November 2011.
Former Supreme Court Judge BN Agarwal will monitor the refund to investors, the
court said today.
SEBI will check the genuineness of the investors and if the investors are not
traceable, the amount will go to the government.
The court further said that in case of non-compliance, SEBI can attach and sell
properties of the Sahara Group.
"All along for the past 7-8 years, we faced the onslaught of various
authorities since they concluded whimsically without any verification that the
deposits, investments we have received from the public are ill-gotten,"
Sahara claimed. "The Income Tax Department held on to our refund (about
Rs. 20000.000 Millions) for decades, but ultimately truth prevailed and they
had to pay us back the entire amount in 2011," it added.
TAKE ACTION AGAINST SAHARA IF IT DOESN'T
FOLLOW JUDGEMENT: SUPREME COURT TO SEBI
OCTOBER 19, 2012
The Supreme Court
today told the Securities and Exchange Board of India (Sebi) that it could act
against Sahara as per law should the company not follow the top court’s order
on submitting investor-related documents concerning two real estate companies
it owns.
In an August 31
judgement, the Supreme Court had directed two Sahara group companies—Sahara
India Real Estate Corporation and Sahara Housing Investment Corporation—to
deposit with the market regulator around Rs. 240000.000 Millions that they had
collected from investors as well as the original documents of investors within
10 days. The court ruled that the finance schemes run by the two companies were
illegal, and ordered the firms to repay the amount, plus interest, to up to
almost 3 crore small investors.
The companies failed
to submit the documents before the September 10 deadline, following which Sebi
approached the court.
"This is a
disposed of case. Implement our orders. We can't pass any orders on Sebi
application," the Supreme Court said today.
Sahara earlier said
that it would submit all the documents by end-November and also file an
application seeking review of the August 31 judgement. To this, the court said
Sebi should see to it that the court’s order is implemented while Sahara was
free to file the application.
After today’s
verdict, the Sebi board will meet to decide on what action should be taken
against Sahara, sources said.
The court had also
stated that if the firms failed to refund the amount, Sebi could attach the
properties of the companies and freeze their bank accounts.
The court had
appointed retired judge, Justice B.N. Aggarwal, to oversee the matter. The
former judge has already submitted his report to the court, saying Sahara
failed to hand over the documents.
Earlier this month,
Sahara had moved the Supreme Court seeking review of its verdict and
challenging the decision on 55 counts.
BREAKINGVIEWS - HOW CAN SAHARA GROUP PAY BACK $3 BLN?
AUGUST 31, 2012
(Reuters Breakingviews) - The Supreme Court
has struck a blow for the little man. Judges have ordered the conglomerate to refund
more than $3 billion it had raised from millions of small investors. Add in 15
percent interest, and the bill could be as high as $5 billion. The question is
how the sponsor of India's cricket team and owner of New York's Plaza hotel
will comply with the ruling.
The case is a high-profile test for India's
financial system. In 2008, two unlisted Sahara group companies, with paid up
capital of less than $20,000 each, began raising funds through an instrument
known as an optionally fully convertible debenture (OFCD). Sahara argued the
fundraising was in the form of a private placement. The Securities and Exchange
Board of India countered that a private placement should be for a maximum of 50
investors -- not 23 million.
The sums raised by the politically
well-connected Sahara group exceed the amount raised in India's largest ever
IPO, that of Coal India. Its largely rural investors exceed the total number of
retail investors for India's entire universe of listed stocks.
While the outcome of the case is positive, it
still raises serious questions over how such a huge mobilisation of funds was
allowed to take place at all. Investors were sold a product that benefited from
neither the protection associated with a public issue nor the safeguards a
depositor would get from putting money in a bank.
The case also highlights the fact that very
large quantities of money in rural India is looking for a savings home. India's
rural savers deserve better than Sahara. And unless the money is paid back
swiftly their confidence in the financial system could take a serious dent.
So how will Sahara manage to return the cash?
Over a third of the sum raised through issue of OFCDs has been invested in
Aamby Valley, a luxury township project developed by the group in Maharashtra,
according to annual reports for the year ended June 2010. Sahara has always
maintained that if it loses the case that it has sufficient liquidity to pay
the sum back in full. For the sake of India's financial system, it needs to
make good on that promise - soon.
SAHARA-SEBI CASE: TRIBUNAL DISMISSES DEADLINE EXTENSION PLEA
DECEMBER 20, 2012
Mumbai: In the high-profile case involving
repayment of money to bondholders of two Sahara group firms, the Securities and
Appellate Tribunal on Thursday dismissed a plea for extension of deadline for
submitting investor documents to the market regulator Sebi.
The appeal, filed a month ago on November 19
by Sahara Housing Investment Corporation Ltd (SHICL) and Sahara India Real
Estate Corporation Ltd (SIRECL), was dismissed as specific directions have
already been passed by the Supreme Court since then in this matter.
Hearing the plea this morning, the Securities
Appellate Tribunal (SAT) observed that the appeal has become infructuous in
light of the specific directions from the Supreme Court.
"The appeal is not maintainable, as
directions in the same matter have been given by the Supreme Court," SAT
said.
The appeals by the two companies, seeking
extension of time till January 31 for submission of investor documents to Sebi,
were listed today for "admission" before the SAT.
In a Supreme Court order dated August 31, the
two companies were asked to submit the documents till November 10.
However, in another order passed on December 5,
the Supreme Court asked the companies to submit the documents to Sebi within 15
days, which period incidentally ends today.
The two companies had also filed another
appeal on November 19 for allowing deposit of money with the registrar of SAT.
However, this appeal was dismissed by the
tribunal on November 29.
Thereafter, the two companies had approached
the Supreme Court against the SAT order. After hearing their appeal, the
Supreme Court on December 5 directed the two companies to refund the outstanding
payments to the investors with 15 percent interest in phases in nine weeks.
While the companies were asked to make an
immediate payment of Rs 51200.000 Millions, the court also asked them to pay
the first instalment of Rs.100000.000 Millions by the first week of January and
the remaining by the first week of February.
The bench headed by Chief Justice Altamas
Kabir also directed Sahara Group to supply the documents relating to investors
within 15 days and warned that failure to fulfil its directive on payment of
the money to Sebi will lead to attachment of assets.
As per an earlier Supreme Court order dated
August 31, the two companies were asked to submit the investor documents by
November 10, while the money was to be refunded to the investors within three
months.
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.55.09 |
|
|
1 |
Rs.89.54 |
|
Euro |
1 |
Rs.72.77 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
12 |
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.