|
Report Date : |
14.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
IDBI ASSET MANAGEMENT LIMITED |
|
|
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Registered
Office : |
IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai – 400005,
Maharashtra |
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Country : |
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|
Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
25.01.2010 |
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|
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|
Com. Reg. No.: |
11-199319 |
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|
Capital Investment
/ Paid-up Capital : |
Rs.750.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65100MH2010PLC199319 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI09238F |
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|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
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Line of Business
: |
The principal activity of the Company is to act as an Investment
manager and advisor to IDBI Mutual Fund. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (33) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 940000 |
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|
|
|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a relatively new company having moderate track. It is a wholly-owned
subsidiary of IDBI Bank Limited. There appears some losses incurred in the
first year of operations. However, trade relations are reported as fair.
Business is active. Payments are reported to be slow but correct. However, in view of strong holding, the company can be considered
normal for business dealing 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 DENIED BY
Management Non Co-operative
LOCATIONS
|
Registered Office : |
IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai – 400005,
Maharashtra, India |
|
Tel. No.: |
91-22-66096100 |
|
Fax No.: |
Not Available |
|
E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Yogesh Agarwal |
|
Designation : |
First Director |
|
Date of Appointment : |
25.01.2010 |
|
Date of Ceasing : |
05.06.2010 |
|
|
|
|
Name : |
Mr. Syed Shahabuddin |
|
Designation : |
First Director |
|
Date of Appointment : |
25.01.2010 |
|
|
|
|
Name : |
Mr. Kiran Karnik |
|
Designation : |
First Director |
|
Date of Appointment : |
25.01.2010 |
|
Date of Ceasing : |
09.08.2010 |
|
|
|
|
Name : |
Mr. Viney Kumar |
|
Designation : |
First Director |
|
Date of Appointment : |
25.01.2010 |
|
Date of Ceasing : |
14.06.2010 |
|
|
|
|
Name : |
Mr. Arup Tagore |
|
Designation : |
First Director |
|
Date of Appointment : |
25.01.2010 |
|
Date of Ceasing : |
28.06.2010 |
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|
|
|
Name : |
Mr. R K Bansal |
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Designation : |
Director |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Krislinamuthy Vijayan |
|
Designation : |
MD and CEO |
|
Date of Appointment : |
13.02.2010 |
|
Date of Ceasing : |
18.05.2011 |
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|
|
|
Name : |
Mr. J N Godbole |
|
Designation : |
Additional Director |
|
Date of Appointment : |
09.11.2010 |
|
|
|
|
Name : |
Mr. R M Malla |
|
Designation : |
Chairman and Additional
Director |
|
Date of Appointment : |
23.02.2011 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
The principal activity of the Company is to act as an Investment
manager and advisor to IDBI Mutual Fund. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|
|
|
|
Bankers : |
·
IDBI Bank, Nariman Point, Mumbai, Maharashtra,
India ·
IDBI Bank, Saldapet Branch, Chennai, Tamilnadu,
India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
L U Krishnan and Company Chartered Accountants |
|
Address : |
Sam’s Nathaneal Tower, 3-1, West Club Road, Shenoy Nagar, Chennai –
600030, Tamilnadu, India |
|
Tel. No.: |
91-44-26209657 |
|
Fax No.: |
91-44-26209415 |
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E-Mail : |
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Holding Company : |
IDBI Bank Limited |
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|
|
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Group Company : |
·
IDBI In-tech Limited ·
IDBI Trustee Company Limited ·
IDBI Capital Market Services Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
500.000 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
0.000 |
|
|
4] (Accumulated Losses) |
|
|
(265.174) |
|
|
NETWORTH |
|
|
234.826 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
14.584 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
24.941 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
32.068 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
182.363 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
6.080 |
|
|
Cash & Bank Balances |
|
|
10.754 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
78.008 |
|
Total
Current Assets |
|
|
94.842 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
2.575 |
|
|
Other Current Liabilities |
|
|
24.568 |
|
|
Provisions |
|
|
32.720 |
|
Total
Current Liabilities |
|
|
59.863 |
|
|
Net Current Assets |
|
|
34.979 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
24.941 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
|
|
30.469 |
|
|
|
Other Income |
|
|
5.278 |
|
|
|
TOTAL (A) |
|
|
35.747 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Staff Expenses |
|
|
120.488 |
|
|
|
Establishment expenses |
|
|
24.932 |
|
|
|
Office Expenses |
|
|
60.557 |
|
|
|
Marketing, Sales and Distribution Expenses |
|
|
62.985 |
|
|
|
Scheme expenses Overlap |
|
|
3.644 |
|
|
|
Preliminary Expenses written off |
|
|
3.713 |
|
|
|
TOTAL (B) |
|
|
276.319 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
|
(240.572) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
|
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
(240.572) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
10.017 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
|
|
(250.589) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
|
14.584 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
|
|
(265.173) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
|
(265.173) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
(8.28) |
|
KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2011 |
|
PAT / Total Income |
(%) |
|
|
741.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
|
822.44 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
|
197.45 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
|
1.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
|
0.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
|
1.58 |
LOCAL AGENCY FURTHER INFORMATION
Background
Subject was incorporated on 25th Jan 2010 as a Public limited company.
The principal activity of the Company is to act as an Investment manager and
advisor to IDBI Mutual Fund ("the Fund"). Being the first year of
business, Financial statements are being submitted for the period 25th January
2010 to 31st March 2011.
Overview
The company was incorporated on January 25, 2010 and obtained certificate
of commencement of business on March 25, 2010. SEBI has permitted the company
to act as the Asset Management Company for IDBI Mutual Fund on March 29, 2010.
IDBI Mutual Fund has launched its first scheme on May 3, 2010. The company is
currently managing 2 equity schemes and 5 debt schemes launched by IDBI Mutual
Fund.
Financials
The first financial year of the company was for 15 months and the
particulars are as follows. The Mutual Fund is in the growth phase and was able
to show its presence in the market in a very short period of time by growing by
growing its Average Assets under management significantly.
Business
Environment
During FY 2011, the Indian equity markets delivered positive returns,
with the benchmark indices recording a 11.1% gain, attributable to strong macro
economic performance and driven in the early part of the year, by the
quantitative easing (QE2) by the U.S. Govt., which enabled FIIs to bring in a
flood of liquidity to the equity markets. FY2011 was also a year of meaningful
recovery for corporate India. Most companies were back on their growth path,
after suffering from the financial meltdown in 2009-2010. Demand showed a good
revival and this resulted in an all-round growth for companies.
From a macroeconomic perspective, the year started on a strong note,
with 1QFY2011 GDP growth at 9.3%, ahead of the 6.3% GDP growth posted during
1QFY2010. This performance was driven by all-round growth, in agriculture,
services and industry. In particular, manufacturing grew by 12.7% compared to
just a 2% growth in 1QFY2010. The consumption cycle in the economy remained
strong, contributing to the GDP growth. The subsequent three quarters however
recorded relatively weaker overall GDP growth at 8.9%, 8.3% and 7.8%
respectively, with manufacturing showing a decelerating growth of 10%, 6% and
5.5% respectively.
Despite starting strong, the Index of Industrial Production (IIP) data
also progressively weakened over the course of the year. For FY2011, the IIP
data showed a growth of 7.8% compared to 10.5% for FY2010. Growth was strong in
sectors like crude oil, steel and power however performance of the coal sector
was a reason for worry due to several structural and non structural issues.
Export data for the year showed robustness, with overall exports increasing by
37.5%, while imports grew 21.2%.
Inflation remained a dampener for the entire year, with no signs of a
meaningful easing in the monthly data. The WPI data, which started at a high of
10.9% in January 2010, remained at elevated levels all through the year, ending
at 9.02% in March 2011, well above the RBFs comfort zone (this despite the RBI
increasing its inflation target to 7% from 5.5% previously). The persistently
high inflation forced the RBI to institute a tightening program, raising the
repo rate by a whopping 175 bps over FY11. One of the most aggressive among the
global Central banks. The reverse repo was also increased by 225 bps over the
same period.
Credit flows during FY2011 showed that total bank credit registered a
growth of 21.4%. Non¬food credit also saw a similar increase of 21.2%, however
deposit growth of 15.8% has lagged credit growth during the year. The lower
growth in deposits in the first half of FY2011 can be attributed to
unattractive card/deposit rates and to the continued high inflation rate which
lowered the real rate of return on term deposits. Good performance of the
equity market also contributed to slowdown in deposit growth.
FDI inflows for the year at $19.4 bn was lower than the $25.8 bn recorded
in FY2010, while portfolio inflows during the period FY2011 were $24.3 bn
compared to $23.3 bn in FY2010. The strong inflows seen in the early part of
the year progressively weakened over the course of the year. The FIIs turned
net sellers in the market, primarily due to their concern over India's
inflation situation, coupled with the fact that the economic situation in
developed economies has improved over the course of the year, thereby ensuring
they found better opportunities in their home countries.
The global markets witnessed mixed fortunes. Countries like China, which
clocked strong economic growth, saw their equity market lose 5.7% of its value,
on account of asset bubble concerns and fears of a meltdown. High inflation and
tightening of liquidity by the Chinese authorities also caused weakness in the
markets. On the other hand, the US and UK, despite registering weak economic
growth, saw a surge in stock prices. This was largely driven by expectations
that these economies would recover at a faster than anticipated pace, and fears
over the high levels of inflation in the emerging markets, therefore ensuring
that money flowed back to the developed nations. The Euro zone also witnessed
strong recovery in the real economy in 2010 (growth of 1.7% in 2010, up from a
decline of 4.1% in 2009), however this was coupled with financial tensions in
some markets. Though the euro zone equity markets (represented by the DJ Stoxx
50 Index) was down 6% in 2010, there was significant divergence in performance,
with Germany and Austria posting returns of 16.1% and 16.4% respectively, while
the debt ridden nations of Greece, Spain and Portugal recording returns of
-41%, -17% and -10% respectively.
FIXED ASSETS
·
IT Hardware
·
Communication Equipment and Gadgets
·
Electrical and Electronics Equipment and Gadgets
·
Motor Vehicles
·
Furniture and Fixtures
·
Land and Buildings
·
Leasehold Improvements
·
General Office Equipment
·
IT Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.32 |
|
|
1 |
Rs.77.84 |
|
Euro |
1 |
Rs.65.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
33 |
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.