MIRA
INFORM REPORT
|
Report Date : |
16.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE CAPITAL ASSET MANAGEMENT LIMITED |
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Registered
Office : |
H Block 1st Floor, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
24.02.1995 |
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Com. Reg. No.: |
220793 |
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Capital
Investment / Paid-up Capital : |
Rs. 109.599 millions |
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CIN No.: [Company Identification
No.] |
U65910MH1995PLC220793 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR027433G |
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PAN No.: [Permanent Account No.] |
AAACR2668G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
The
Company's principal activity is to act as an investment manager to Reliance
Mutual Fund ( the Fund'), to provide Portfolio Management Services ('PMS') to
clients under Securities and Exchange Board of India (SEBI) |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRAs Rating : |
A (63) |
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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 |
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Maximum Credit Limit : |
USD 44492024 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
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Comments : |
Subject is a well established company having fine track. Financial
position appears to be good. However, trade relations are reported as fair. Business
is active. Payments are reported to be regular and as per commitments. The company can be considered normal 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.
INFORMATION PARTED BY
|
Name : |
Ms. Sunita Braganza |
|
Designation : |
Secretary of CFO |
|
Contact No.: |
91-22-30479400 |
|
Date : |
15.06.2012 |
LOCATIONS
|
Registered Office : |
H Block 1st Floor, Chirubhai Ambani Knowledge City,
Koparkhairne, Navi Mumbai 400710, Maharashtra, India |
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E-Mail : |
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Web Site: |
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Branch Office : |
11th and 12th Floor One India Bulls Centre,
Tower 1 Jupiter Mills Compound, 841, Senapati Bapat Marg, Elphinston Road,, Mumbai
400013, Maharashtra, India |
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Tel. No.: |
91-22-30994600 |
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Fax No.: |
91-22-30994699 |
DIRECTORS
AS ON 23.05.2011
|
Name : |
Mr. Kanu Doshi |
|
Designation : |
Director |
|
Address : |
102 Shivala, Khatau Road, Cuffe Parade, Mumbai 400005, Maharashtra,
India |
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Date of Birth/Age : |
13.04.1937 |
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Date of Appointment : |
12.08.2005 |
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Name : |
Mr. Manu Chadha |
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Designation : |
Director |
|
Address : |
C 35 Malacha MArg, Chankyapuri, New Delhi 110021, India |
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Date of Birth/Age : |
28.08.1955 |
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Date of Appointment : |
18.01.2006 |
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Name : |
Mr. S C Tripathi |
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Designation : |
Director |
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Address : |
27 Sector 15 A, Noida 201301, Uttar Pradesh, India |
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Date of Birth/Age : |
01.01.1946 |
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Date of Appointment : |
01.02.2007 |
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|
Name : |
Mr. Soumen Ghosh |
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Designation : |
Director |
|
Address : |
Kalpataru Horizon Flat No 264, Tower A S K Ahire MArg, Worli, Mumbai
400025, Maharashtra, India |
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Date of Birth/Age : |
08.06.1959 |
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Date of Appointment : |
28.10.2009 |
KEY EXECUTIVES
|
Name : |
Ms. Sunita Braganza |
|
Designation : |
Secretary of CFO |
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|
Name : |
Mr. Geeta Chandran |
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Designation : |
Manager |
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Address : |
Tulip Co Operative Housing Society, Plot No. 6, Building No. 3 Flat No.
13 / 14 Bhawani Nagar, MArol Maroshi Road, Andheri (East), Mumbai 400059,
Maharashtra, India |
|
Date of Birth/Age : |
04.06.1952 |
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Date of Appointment : |
02.05.2011 |
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|
Name : |
Ms. Dimple Mehta |
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Designation : |
Secretary |
|
Address : |
409, Rajani Mahal, Opposite A C Market, Tardeo, Mumbai 4000034,
Maharashtra, India |
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Date of Birth/Age : |
15.12.1981 |
|
Date of Appointment : |
25.07.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 23.05.2011
|
Names of Equity Shareholders |
No. of Shares |
|
Reliance Capital Limited, India
|
9999400 |
|
V R Mohan JT Reliance Capital Limited, India |
100 |
|
Surendra Pipara JT With Reliance Capital Limited, India |
100 |
|
Hasit Shukla JT With Reliance Capital Limited, India |
100 |
|
Dipan Dalal JT With Reliance Capital Limited, India |
100 |
|
Chetan Raval JT With Reliance Capital Limited, India |
100 |
|
Yogesh Deshpande JT With Reliance Capital Limited, India |
100 |
|
Reliance ADA Group Trustees Private Limited, India |
250000 |
|
EP Global Markets (Cayman) Limited, Islands |
510000 |
|
Total |
10760000 |
|
Names of
Preference Shareholders |
No.
of Shares |
|
Reliance Securities Limited, India |
1899 |
|
Reliance CWT India Limited, India
|
1900 |
|
Emerging Money Mall Limited, India
|
16200 |
|
Total |
19999 |
LIST OF ALLOTTEE
AS ON 09.05.2012
|
Names of Equity Shareholders |
No. of Shares |
|
Reliance ADA Group Trustees Private Limited A/C Reliance Capital Asset
Management Employees Benefits Trust, India |
250000 |
|
EP Global Markets (Cayman) Limited, Islands |
510000 |
|
Total |
760000 |
AS ON 23.05.2011
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
4.74 |
|
Bodies corporate |
|
95.26 |
|
|
Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The
Company's principal activity is to act as an investment manager to Reliance Mutual
Fund ( the Fund'), to provide Portfolio Management Services ('PMS') to
clients under Securities and Exchange Board of India (SEBI) |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
BSR and Company Chartered Accountant |
|
Address : |
KPMG House, Kamala Mills Compound, 448, Senapati Bapat Marg, Lower
Parel, Mumbai 400013, Maharashtra, India |
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Ultimate Holding Company: |
Reliance Innoventures Private Limited |
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Holding Company: |
Reliance Capital Limited |
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Wholly Owned Subsidiary: |
·
Reliance Asset
Management (Mauritius) Limited ·
Reliance Asset Management
(Singapore) Pte Limited ·
Reliance Capital
Asset Management (UK) Plc. ·
Reliance Capital
Pension Fund Limited ·
Reliance Asset
Management (Malaysia) SDN BHD ·
Reliance General
Insurance Company Limited ·
Reliance Money
Express Limited ·
Reliance Gilts
Limited ·
Reliance Capital
Trustee Company Limited ·
Medybiz Private
Limited ·
Reliance Venture
Asset Management Private Ltd (formerly Reliance Technology ·
Ventures Private
Limited) ·
Reliance Capital
Research Private Limited ·
Reliance Equity
Advisors (India) Limited ·
Reliance
Consultants (Mauritius) Limited ·
Reliance Equities
International Private Limited ·
Reliance Home
Finance Private Limited ·
Reliance Capital
(Singapore) Pte Limited ·
Reliance
Commercial Finance Private Limited (formerly known as Reliance ·
Consumer Finance
Private Limited) ·
Reliance
Securities Limited |
|
|
|
|
Fellow Subsidiary: |
·
Reliance
Commodities Limited ·
Reliance
Financial Limited ·
Reliance
Alternative Investments Services Private Limited ·
Quant Broking
Private Limited ·
Quant Capital
Advisors Private Limited ·
Quant Capital
Finance and Investments Private Limited ·
Quant Capital
Private Limited ·
Quant Commodities
Private Limited ·
Quant Commodity
Broking Private Limited ·
Quant Securities
Private Limited ·
Reliance Exchange
next Limited ·
Reliance
Infrastructure Finance Private Limited ·
Reliance Spot
Exchange Infrastructure Limited ·
Reliance Wealth
Management Limited ·
Reliance
Investment Banking Services Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11500000 |
Equity Shares |
Rs. 10 each |
Rs.115.000 millions |
|
350000 |
Preference Shares |
Rs, 100 each |
Rs. 35.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10760000 |
Equity Shares |
Rs. 10 each |
Rs.107.600 millions |
|
19999 |
Preference Shares |
Rs. 100 each |
Rs. 1.999 millions |
|
|
|
|
Rs. 109.599
millions |
(A) Of the above 1,00,00,000 shares held by Reliance Capital Limited,
the holding company
(B) Of the above 1,00,00,000 shares held by Reliance Capital Limited,
the holding company
(C) 31.03.2011 19,999 1% Non-Cumulative Redeemable Preference shares of
Rs.100 each (Shares issued to erstwhile equity and preference shareholders of
RMIL persuant to Scheme of Arrangement between Reliance Capital Asset
Management Limited (RCAM) and Reliance Money Infrastructure Limited (RMIL) for
acquisition of infrastructure division of RMIL) TOTAL Rs. 1.999 millions
(D) Amount recoverable from Reliance Capital Asset Management Employee
Benefit Trust (ESOP Trust), (2,00,000 Equity Shares of Rs.10 each allotted to
the Trust during the year 2007-08) Rs. 2.000 millions Amount recoverable from
Reliance Capital Asset Management Employee Benefit Trust (ESOP Trust), (50,000
Equity Shares of Rs.10 each allotted to the Trust during the year 2010-11) Rs.
0.500 million Total Rs.2.500 millions
(E) Amount recoverable from Reliance Capital Asset Management Employee
Benefit Trust (ESOP Trust), (2,00,000 Equity Shares of Rs.10 each allotted to
the Trust during the year 2007-08) Rs. 2.000 millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
107.099 |
105.100 |
105.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11015.907 |
10281.007 |
8318.206 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11123.006 |
10386.107 |
8423.306 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11123.006 |
10386.107 |
8423.306 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
252.129 |
250.170 |
283.421 |
|
|
Capital work-in-progress |
5.624 |
6.596 |
1.514 |
|
|
|
|
|
|
|
|
INVESTMENT |
10283.503 |
11226.876 |
8189.844 |
|
|
DEFERREX TAX ASSETS |
75.924 |
57.786 |
41.690 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000 |
0.000 |
0.000 |
|
|
Sundry Debtors |
82.864
|
165.119 |
39.435 |
|
|
Cash & Bank Balances |
38.899
|
33.442 |
2.491 |
|
|
Other Current Assets |
5.237
|
15.694 |
6.842 |
|
|
Loans & Advances |
3474.039
|
370.511 |
390.033 |
|
Total
Current Assets |
3601.039
|
584.766 |
438.801 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1130.390
|
1679.951 |
409.323 |
|
|
Other Current Liabilities |
44.022
|
10.943 |
39.816 |
|
|
Provisions |
1920.801
|
49.193 |
82.825 |
|
Total
Current Liabilities |
3095.213
|
1740.087 |
531.964 |
|
|
Net Current Assets |
505.826
|
(1155.321) |
(93.163) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11123.006 |
10386.107 |
8423.306 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
6269.624 |
6117.748 |
3768.049 |
|
|
|
Other Income |
722.886 |
424.729 |
675.487 |
|
|
|
TOTAL (A) |
6992.510 |
6542.477 |
4443.536 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees Remuneration |
1266.012 |
1210.025 |
1040.456 |
|
|
|
Diminution in Value of Investment |
0.000 |
0.000 |
7.738 |
|
|
|
Administrative Expenses |
2424.705 |
2418.462 |
786.972 |
|
|
|
Marketing and Publicity Expenses |
0.000 |
0.000 |
748.459 |
|
|
|
TOTAL (B) |
3690.717 |
3628.487 |
2583.625 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3301.793 |
2913.990 |
1859.911 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3301.793 |
2913.990 |
1859.911 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
108.949 |
121.503 |
91.317 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3192.844 |
2792.487 |
1768.594 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
580.111 |
841.233 |
439.140 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2612.733 |
1951.254 |
1329.454 |
|
|
|
|
|
|
|
|
|
|
Amount
Transferred Reserves |
0.000 |
11.547 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS BALANCE BROUGHT FORWARD |
5266.100 |
3303.299 |
1973.844 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
|
|
|
|
|
Dividend |
2137.106 |
NA |
NA |
|
|
|
Tax on Dividend |
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
5741.727 |
5266.100 |
3303.299 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
248.59 |
185.66 |
126.49 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
37.36
|
29.82 |
29.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
50.92
|
45.64 |
46.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
82.86
|
334.45 |
244.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.26 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.27
|
0.16 |
0.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.16
|
0.33 |
0.82 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
|
|
|
Sundry Creditors |
1130.390
|
1679.951 |
409.323 |
BACKGROUND
The
Company was incorporated on 24 February 1995. The principal shareholder of the
Company as at 31 March 2010 is Reliance Capital Limited.
The
Company's principal activity is to act as an investment manager to Reliance
Mutual Fund ( the Fund'), to provide Portfolio Management Services ('PMS') to
clients under Securities and Exchange Board of India (SEBI) (Portfolio
Managers) Regulations, 1993 The Company is registered with SEBI under the SEBI
(Mutual Funds) Regulations, 1996 The Company manages the investment portfolios
of the Fund and provides various administrative services to the Fund as laid
down in the Investment Management Agreement dated 12 August 1997.
NOTE:
Registered office of the company has been shifted from Reliance House, Near Mardia Plaza, Off C G Road, Ahmedabad 380006, Gujarat, India to the present address w.e.f. 23.07.2011
|
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 |
Yes |
|
24) Banking facility details |
-- |
|
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 |
PRESS RELEASE
RELIANCE CAPITAL ASSET
MANAGEMENT COMPANY POSTS RS 276 CR NET PROFIT FOR FY-12
PTI MAY
22, 2012, 02.31PM IST
Tags:
Reliance
Capital Asset Management Company|
NEW DELHI: Reliance
Capital Asset Management Company, which runs Anil Ambani-led
Reliance group's mutual fund business, has posted a net profit of Rs 2760
million for the fiscal year 2011-12, retaining its position as the country's
most profitable fund house for the second straight year.
The company's profit after tax grew by over five per cent from Rs 2610
million in the previous fiscal 2011-12. Its profit after tax also grew by five
per cent to Rs 3080 million in the fiscal ended March 31, 2012.
Reliance Capital AMC (Asset Management Company) had overtaken HDFC AMC
as the country's most profitable fund house during the previous fiscal 2010-11
and has managed to retain its leadership position.
In the latest fiscal 2011-12, Reliance AMC was followed by HDFC AMC as
the second most profitable fund house and the latter's profit after tax grew to
Rs 2690 million from Rs 2420 million.
During the fiscal 2009-10, HDFC AMC was the most profitable with a
profit after tax of Rs 2080 million, followed by Reliance AMC (Rs 1950
million), UTI AMC (Rs 1700 million) and ICICI Prudential (Rs 1280 million).
However, HDFC AMC slipped to second slot in 2010-11, while UTI remained
at the thirst position with Rs 1380 million, followed by Franklin Templeton (Rs
970 million), Birla Sunlife (Rs 850 million) and ICICI Pru (Rs 720 million),
among others.
The latest fiscal (2011-12) figures are as yet not available for UTI and
Franklin Templeton mutual funds, while Birla Sunlife and ICICI Pru have posted
profit after tax of Rs 590 million and Rs 880 million, respectively.
Reliance Capital Asset Management managed Rs 1408530 million (USD 27.5
billion) as on March 31, 2012, across mutual funds, pension funds, managed
accounts and hedge funds.
Reliance Mutual Fund figures among the top two mutual funds in India, in
terms of AUM, with market share of nearly 12 per cent and its average AUM stood
at Rs 781120 million for the period ended March 31, 2012.
Nippon Life, largest private life insurer in Asia, recently signed final
agreements to acquire a 26 per cent stake in RCAM -- making it the largest FDI in
Indian mutual fund space and the largest investment in any Indian AMC.
The transaction, under which Nippon Life is investing Rs 14500 million
for 26 per cent stake, pegs RCAM's valuation at approximately Rs 56000 million
(USD 1.1 billion).
RELIANCE CAPITAL
LIMITED : NIPPON LIFE INSURANCE SIGNS FINAL AGREEMENTS TO ACQUIRE 26 PER CENT
STAKE IN RELIANCE CAPITAL ASSET MANAGEMENT
03/22/2012
MEDIA RELEASE NIPPON LIFE INSURANCE SIGNS FINAL AGREEMENTS TO ACQUIRE 26
PER CENT STAKE IN RELIANCE CAPITAL ASSET MANAGEMENT TRANSACTION PEGS RELIANCE
CAPITAL ASSET MANAGEMENT VALUATION AT APPROX RS 5,600 CRORE (US$ 1.1 BILLION)
NIPPON LIFE INSURANCE TO INVEST RS 1,450 CRORE (US$ 290 MILLION) FOR 26 PERCENT
STAKE LARGEST INVESTMENT IN ANY INDIAN ASSET MANAGEMENT COMPANY TILL DATE
LARGEST FDI IN INDIAN MUTUAL FUND SECTOR TILL DATE NIPPON LIFE MANAGES ASSETS
OF OVER US$ 600 BILLION (RS 30 LAKH CRORE) NIPPON LIFE TOTAL ASSETS AMONGST
LARGEST IN THE WORLD FOR ANY LIFE INSURER NIPPON LIFE HAS ALREADY INVESTED RS.
3,062 CRORE (US$ 680 MILLION) FOR 26 PER CENT STAKE IN RELIANCE LIFE INSURANCE
NIPPON LIFE INSURANCE IS A 122 YEAR OLD GLOBAL FORTUNE 100 COMPANY NIPPON LIFE
INSURANCE IS THE 7TH LARGEST LIFE INSURER IN THE WORLD AND NO. 1 PRIVATE LIFE
INSURER IN ASIA AND JAPAN March 22, 2012, Mumbai: Nippon Life Insurance Company
today signed final agreements with Reliance Capital to acquire 26 per cent
stake in Reliance Capital Asset Management (RCAM), India's largest and most
profitable Asset Management Company (AMC).
The final agreements were signed by Mr. Sam Ghosh, CEO, Reliance Capital
and Mr. Takeshi Furuichi, Senior Managing Executive Officer and Chief
Investment Officer of Nippon Life Insurance, here today. The transaction is
subject to necessary regulatory approvals.
Nippon Life will invest an aggregate value of Rs 14500 millions(US$ 290
million) to acquire 26 per cent strategic stake in RCAM. The transaction pegs
the total valuation of RCAM at approximately Rs 56000 millions (US$ 1.1
billion).
Nippon Life is a 122 year Global Fortune 100 company and manages over USD 600
billion (Rs 30 Lakh crore) in assets, amongst the largest total assets in the
world for any life insurer. The company is the 7th largest life insurer in the
world and the Number 1 private life insurer in Asia and Japan Commenting on the
development, Mr. Sam Ghosh said," We are delighted to sign final
agreements with Nippon and look forward to having them as our strategic
partners in the Mutual Fund business. We will be filing our application with
the regulators for approval and hope to conclude this transaction soon".
Mr. Yoshinobu Tsutsui, President, Nippon Life said, "I am very pleased
that we have entered into the final agreements about investment in Reliance
Capital Asset Management. I believe that this partnership in the field of asset
management will strengthen our relationship with Reliance Group."
.
RCAM is the largest and most profitable AMC in India, in terms of AUM, managing
approximately Rs. 1400000 millions (USD 28 billion) , across mutual funds, government
sponsored public funds, managed accounts and hedge funds.
Nippon Life Insurance is already a strategic partner in Reliance Life
Insurance. The Japanese company acquired 26 per cent stake in Reliance Life
Insurance at an aggregate value of Rs 30620 millions (US$ 680 million). The
transaction pegged the total valuation of Reliance Life Insurance at
approximately Rs 115000 millions (US$ 2.6 billion).
About Nippon Life
Insurance
www.nissay.co.jp
Nippon Life Insurance, also called Nissay, is Japan's largest private life
insurer with revenues of Rs 3498340 millions (US$ 80 billion) and profits of
over Rs 121990 millions (US$ 3 billion). The company, which has over 14 million
policies in Japan, offers a wide range of products, including individual and group
life and annuity policies through various distribution channels and mainly uses
a face-to-face sales channel for its traditional insurance products. Company
primarily operates in Japan, North America, Europe and Asia and is
headquartered in Osaka, Japan.
About Reliance
Capital Asset Management
www.reliancemutual.com
RCAM is the largest and most profitable AMC in India, in terms of AUM, managing
approximately Rs. 1400000 millions (US$ 28 billion), across mutual funds,
government sponsored public funds, managed accounts and hedge funds
RCAM is the only AMC in India to have been chosen to manage both, the public
funds sponsored by the Indian government - the Provident Fund and Pension Fund.
The company offers a well-rounded portfolio of products, that meet varying
requirements, and constantly endeavors to launch innovative products and
customer service initiatives to enhance value for its investors. RCAM is part
of Reliance Capital, one of India's largest financial services companies with
over 20 million customers.
About Reliance
Capital
www.reliancecapital.co.in
Reliance Capital, the largest non banking finance company in India, is a part
of the Reliance Group and is a constituent of S and P CNX Nifty Junior and MSCI
India. Reliance Group is amongst India's leading business houses with over 230
million customers. The Group has a strong presence across a wide array of high
growth consumer-facing businesses of financial services, telecom, energy,
power, infrastructure and media and entertainment.
Reliance Capital has interests in asset management and mutual funds; life and
general insurance; commercial finance; equities and commodities broking;
investment banking; wealth management services; distribution of financial
products; exchanges; private equity; asset reconstruction; proprietary
investments and other activities in financial services.
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 Intl
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 companys 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.55.76 |
|
|
1 |
Rs.86.69 |
|
Euro |
1 |
Rs.70.44 |
INFORMATION DETAILS
|
Information Gathered
by : |
PJA |
|
|
|
|
Report Prepared
by : |
PRL |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
This score serves as a reference to assess SCs 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.