MIRA INFORM REPORT

 

 

Report Date :

14.02.2012

 

IDENTIFICATION DETAILS

 

Name :

IDBI ASSET MANAGEMENT LIMITED

 

 

Registered Office :

IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai – 400005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

25.01.2010

 

 

Com. Reg. No.:

11-199319

 

 

Capital Investment / Paid-up Capital :

Rs.750.000 Millions

 

 

CIN No.:

[Company Identification No.]

U65100MH2010PLC199319

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMI09238F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The principal activity of the Company is to act as an Investment manager and advisor to IDBI Mutual Fund.

 

 

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

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

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 :

mahesh.kumar@idbimutual.co.in

sohit.chawda@idbimutual.com

 

 

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

 

 

Name :

Mr. R K Bansal

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

 

 

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

E-Mail :

lukrishco@gmail.com

 

 

Holding Company :

IDBI Bank Limited

 

 

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, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.32

UK Pound

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

-

 

 

 

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

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