|
Report Date : |
15.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
JPMORGAN ASSET MANAGEMENT INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
J. P. Morgan Tower, Off C. S. T. Road, Kalina, Santacruz – East, Mumbai
– 400098, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
20.09.2006 |
|
|
|
|
Com. Reg. No.: |
11-164773 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1154.500 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65999MH2006PTC164773 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ12336C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCJ7514J |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Investment Management Services. |
|
|
|
|
No. of Employees
: |
Not divulged by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 860000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘JPMorgan Asset Management Asia Inc. It is
one of the six largest active investment managers in the world on the basis
of assets under management. It has been set up to act as the asset management company (AMC) for JP
Morgan Mutual Fund. It is a well established company having satisfactory track. Trade
relations are reported as trustworthy. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Treasury Fund = AAAmfs |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
02.05.2012 |
|
|
|
|
Rating Agency Name |
CRISIL |
|
Rating |
Liquid Fund = AAAmfs |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
02.05.2012 |
|
|
|
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Income Fund = AAAmfs |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
02.05.2012 |
|
|
|
|
Rating Agency Name |
CRISIL |
|
Rating |
Active Bond Fund = AAAmfs |
|
Rating Explanation |
Highest degree of safety and lowest credit
risk. |
|
Date |
02.05.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
Tel No.: 91-22-61573000/ 61573833
LOCATIONS
|
Registered Office : |
J. P. Morgan Tower, Off C. S. T. Road, Kalina, Santacruz – East,
Mumbai – 400098, Maharashtra, India |
|
Tel. No.: |
91-22-61573000/ 61573833/ 61574103 |
|
Fax No.: |
91-22-61574170 |
|
E-Mail : |
kalpana.j.morparia@jpmorgan.com |
|
Website : |
|
|
|
|
|
Branch Office : |
Located at: · Mumbai · Kolkata · Chennai · Bengaluru · Pune · Ahmedabad · New Delhi |
DIRECTORS
(AS ON 12.07.2012)
|
Name : |
Mr. Dhananjay Narendra Mungale |
|
Designation : |
Director |
|
Address : |
10-A, Ameya Apartments, Near Kirti College, Off. Dhuru Road,
Prabhadevi, Mumbai – 400028, Maharashtra, India |
|
Date of Birth/Age : |
01.06.1953 |
|
Date of Appointment : |
23.07.2010 |
|
DIN No.: |
00007563 |
|
|
|
|
Name : |
Mr. Tilokchand Punamchand Ostwal |
|
Designation : |
Director |
|
Address : |
103, Falcon's Crest, G. D. Ambekar Marg, Parel, Mumbai – 400012,
Maharashtra, India |
|
Date of Birth/Age : |
07.11.1954 |
|
Date of Appointment : |
23.07.2010 |
|
DIN No.: |
00821268 |
|
|
|
|
Name : |
Mr. Arrattukulam Peter Kurian |
|
Designation : |
Director |
|
Address : |
9, Friendship, 23rd Road, TPS III, Bandra (West), Mumbai – 400050,
Maharashtra, India |
|
Date of Birth/Age : |
26.06.1933 |
|
Date of Appointment : |
23.07.2010 |
|
DIN No.: |
00008022 |
|
|
|
|
Name : |
Mrs. Kalpana Jaisingh Morparia |
|
Designation : |
Director |
|
Address : |
B-92, Ocean Gold CHS, Twin Tower Lane, Prabhadevi, Mumbai – 400025,
Maharashtra, India |
|
Date of Birth/Age : |
30.05.1949 |
|
Date of Appointment : |
23.07.2010 |
|
DIN No.: |
00046081 |
|
|
|
|
Name : |
Mr. Balasubramanian Nagarajan |
|
Designation : |
Director |
|
Address : |
903, Raheja Majestic, Plot No. 161, TPS - III, Manmala Tank Road,
Mahim (West), Mumbai - 400016,
Maharashtra, India |
|
Date of Birth/Age : |
03.09.1946 |
|
Date of Appointment : |
23.07.2010 |
|
DIN No.: |
00288918 |
|
|
|
|
Name : |
Mr. Nandkumar Renukant Surti |
|
Designation : |
Managing Director |
|
Address : |
2402, Light Bridge CHS Limited, Hiranandani Meadow, Alvares Road,
Thane (West), Thane – 400610 Maharashtra, India |
|
Date of Birth/Age : |
04.05.1969 |
|
Date of Appointment : |
01.01.2012 |
|
DIN No.: |
05158846 |
KEY EXECUTIVES
|
Name : |
Mr. Farrokh Dhunjishaw Bharucha |
|
Designation : |
Company Secretary |
|
Address : |
2/2, Ness Baug Nana Chowk, Mumbai – 400007, Maharashtra, India |
|
Date of Birth/Age : |
25.06.1956 |
|
Date of Appointment : |
04.10.2006 |
|
PAN No.: |
AAAPB5410F |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 12.07.2012)
|
Names of Shareholders |
|
No. of Shares (Equity) |
|
|
|
|
|
J. P. Morgan India Private Limited, India |
|
35618750 |
|
J P Morgan Asset Management (Asia) Inc., USA |
|
106856250 |
|
|
|
|
|
Total |
|
142475000 |
|
|
||
|
Names of Shareholders |
|
No. of Shares (Preference) |
|
|
|
|
|
J P Morgan Asset Management (Asia) Inc., USA |
|
17175000 |
|
|
|
|
|
Total |
|
17175000 |
(AS ON 30.09.2012)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
75.00 |
|
Bodies corporate |
|
25.00 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Investment Management Services. |
GENERAL INFORMATION
|
No. of Employees : |
Not divulged by the management. |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountant |
|
Address : |
6th Floor Express Towers, Nariman Point. Mumbai - 400021, Maharashtra,
India |
|
PAN No.: |
AALFS0506L |
|
|
|
|
Holding Company
: |
· JPMorgan Asset Management (Asia) Inc., USA |
|
|
|
|
Fellow Subsidiaries : |
· JPMorgan Chase Bank (India Branch) · JP Morgan Chase Bank (New York) · JPMorgan India Private Limited · JPMorgan Services India Private Limited |
CAPITAL STRUCTURE
(AS ON 12.07.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
205000000 |
Equity Shares |
Rs.10/- each |
Rs.2050.000 Millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
142475000 |
Equity Shares |
Rs.10/- each |
Rs.1424.750
Millions |
|
17175000 |
Preference Shares |
Rs.10/- each |
Rs.171.750
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1596.500 Millions |
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
105000000 |
Equity Shares |
Rs.10/- each |
Rs.1050.000 Millions |
|
20000000 |
5% Non-Convertible Redeemable Preference Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
98275000 |
Equity Shares |
Rs.10/- each |
Rs.982.750
Millions |
|
17175000 |
5% Non-Convertible Redeemable Preference Shares |
Rs.10/- each |
Rs.171.750
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1154.500 Millions |
NOTE:
The equity shares are
held by JPMorgan Asset Management (Asia) Inc., the holding company and JPMorgan
India Private Limited in the ratio of 75% and 25%, respectively, in compliance
with the order dated March 3, 2006, of the Foreign Investment Promotion Board.
17,175,000 (PY
17,175,000) 5% non-convertible redeemable preference shares of Rs.10/- each,
fully paid-up, redeemable at the end of twenty years from the date of allotment
are held by JPMorgan Asset Management (Asia) Inc. Of this, 15,310,000 shares
were issued at par [redeemable at par at the end of 20 years from date of
allotment, or earlier at the discretion of the board of directors of the
Company, but shall not be convertible into equity shares at any time] while
1,865,000 shares were issued at a premium of Rs.90 per share [redeemable at a
premium of Rs.90 per share at the end of 20 years from date of allotment, or
earlier at the discretion of the board of directors of the Company but shall
not be convertible into equity shares at any time], to JPMorgan Asset
Management (Asia) Inc. The dividend on preference shares is non cumulative.
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 |
1154.500 |
1154.500 |
923.750 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
167.850 |
167.850 |
167.850 |
|
|
4] (Accumulated Losses) |
(1106.243) |
(888.893) |
(714.944) |
|
|
NETWORTH |
216.107 |
433.457 |
376.656 |
|
|
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 |
216.107 |
433.457 |
376.656 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13.991 |
32.859 |
61.139 |
|
|
Capital work-in-progress |
1.304 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000 |
0.000 |
0.000 |
|
|
Sundry Debtors |
16.669
|
14.057 |
15.126 |
|
|
Cash & Bank Balances |
65.216
|
285.787 |
210.186 |
|
|
Other Current Assets |
2.007
|
0.336 |
5.807 |
|
|
Loans & Advances |
164.525
|
145.915 |
120.639 |
|
Total
Current Assets |
248.417
|
446.095 |
351.758 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
15.111 |
13.676 |
10.975 |
|
|
Other Current Liabilities |
9.384
|
8.410 |
11.426 |
|
|
Provisions |
23.110
|
23.411 |
13.840 |
|
Total
Current Liabilities |
47.605
|
45.497 |
36.241 |
|
|
Net Current Assets |
200.812
|
400.598 |
315.517 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
216.107 |
433.457 |
376.656 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
TOTAL |
185.070 |
198.690 |
126.540 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
402.420 |
372.640 |
372.390 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(217.350) |
(173.950) |
(245.850) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
(0.602) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
(217.350) |
(173.950) |
(245.248) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.21) |
(2.13) |
(4.84) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(117.44)
|
(87.55) |
(194.29) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(82.83)
|
(36.32) |
(59.54) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.01)
|
(0.40) |
(0.65) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.22
|
0.10 |
0.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.22
|
9.80 |
9.71 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
- Creditors Due others |
15.111 |
13.676 |
10.975 |
|
|
|
|
|
|
Total |
15.111 |
13.676 |
10.975 |
|
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 |
Yes |
NOTE:
The Registered office of the company has been
shifted from Kalpataru Synergy, 3rd Floor, West Wing, Santacruz (East),
Mumbai – 400055, Maharashtra, India, to the present address w.e.f
25.04.2011.
BACKGROUND
The Company was
incorporated on September 20, 2006. The Company is a subsidiary of JPMorgan
Asset Management (Asia) Inc., (JPMAMAI) and ultimate subsidiary of JPMorgan
Chase and Company (‘JPMorgan Chase’), the holding company for a group of
companies that provide a wide range of products & services to its clients.
BUSINESS OBJECTIVE
The principal objective
of the Company is to act as financial advisors, investment managers and
investment advisors, and to render financial management, financial consultancy
and advisory services. Under the investment management agreement dated December
6, 2006, JPMorgan Mutual Fund India Private Limited (‘the trustee company’) has
appointed the Company to act as investment manager for the schemes launched by
JPMorgan Mutual Fund (‘the Fund’).
FINANCIAL RESULTS
The Company
managed fourteen mutual fund schemes. The expenditure for the period was
Rs.402.420 million (2009-10: Rs. 372.640 million) as against an income of
Rs.185.070 million (2009-10: Rs.198.690 million) resulting in a net loss of Rs.
217.350 million (2009-10: Rs.173.950 million).
ECONOMIC ENVIRONMENT
The Indian economy
is estimated to have grown by 8.6% during 2010-11.
Agricultural
growth was above trend, following a good monsoon. The index of industrial
production (IIP), which grew by 10.4% during the first half of 2010- 11,
moderated subsequently, bringing down the overall growth for April-March
2010-11 to 7.8%. The main contributor to this decline was a deceleration in the
capital goods sector. However, other indicators, such as the manufacturing PMI,
tax collections, corporate sales and earnings growth, credit off-take by
industry (other than infrastructure) and export performance, suggested that
economic activity was strong.
Inflation was the
primary macroeconomic concern throughout 2010-11. It was driven by a
combination of factors, both structural and transitory. For FY2011, Inflation
still stands above the RBI’s comfort zone where on a year to date basis it has
averaged 8.86%. RBI started increasing the Policy rates in order to curb the
inflation which lead to repo rates increasing by 175bps to 6.75%, reverse repo
rates by 150 bps to 5.75% and CRR rates by 25 bps to 6.00%.
MUTUAL FUND INDUSTRY
With AUM of Rs.
5.92 lac crore at the end of March 2011, the industry registered a decline of
4% over a year. The total funds mobilized during the year stood at Rs.88.60 lac
crore as against Rs.100.19 lac crore in the previous year, representing a
decline of 12%. Though 518 new schemes were launched during the year as against
174 in the previous year, on a net basis there was an outflow of Rs.0.49 lac crore
as compare to an inflow of Rs.0.83 lac crore in the last year. Further,
redemptions were 10% lower than in the previous year.
During the year,
AMFI issued a Best Practice Circular on the standardization of complaints,
grievances, reporting procedure and also with regard to accounts of minors,
registration of nominee and transmission of units.
SEBI has
constituted a committee to examine the recommendations given by AMFI and advise
SEBI on various recommendations of AMFI.
FIXED ASSETS:
· Land
·
Building
·
Plant and Machinery
·
Office Equipments
·
Furniture and Fixtures
·
Vehicles
·
Computer software
PRESS RELEASE
6TH WAVE OF INVESTMENT CONFIDENCE INDEX BY J.P. MORGAN ASSET
MANAGEMENT IN ASSOCIATION WITH VALUE NOTES
- Retail investor confidence is highest
in Pune
- Hyderabad sees highest rise in
retail investor confidence
- A significant percentage of
retail investors indicate interest in investing in global markets
- Corruption along with inflation
kills confidence in India
Mumbai, January 25, 2010: Today, JPMorgan Asset Management
India Private Limited, (JPMAMIPL) in association with ValueNotes announced the
findings of their sixth wave of the Investment Confidence Index (ICI) in India.
The J.P. Morgan Asset Management –
Value Notes Investment Confidence Index (ICI), which was launched in
August 2009, is published on a quarterly basis. ICI captures the confidence of
the retail and corporate investor sector as well as financial advisors on the
Indian economic and investment environment.
The single biggest finding this
quarter is that global economic worries appear to be receding within the
investment community. The findings suggest that confidence among the Indian
financial community has begun to steady. Though the ICI has remained stable over
the quarter, the underlying sub-indices have changed. While confidence in the
Indian economic situation and optimism in increasing investments has decreased,
the fall has been offset by optimism over the global economic outlook and
investment portfolio appreciation.
Value Notes, an independent market research company, was
commissioned by J.P. Morgan Asset Management to conduct the survey. The ICI was
developed by interviewing a random sample of retail investors (with a wallet
size in excess of INR 200,000), corporate investors and financial advisors. The
survey took place in December 2010 in eight cities across India: Mumbai,
Delhi/NCR, Kolkata, Chennai, Ahmedabad, Bengaluru, Pune and Hyderabad.
The key objective of the ICI is to quantify confidence in the
investment environment among investors and advisors. The survey also attempts
to study investment behaviour and sentiment based on key factors such as the
improvement in the Indian and global economic environment, general investment
atmosphere, expectation of growth in investment portfolios and others.
Additionally, ICI analyses the short term and long term changes in investment
behaviour and outlook every quarter, from an investor and advisor standpoint.
The J.P. Morgan Asset
Management – Value notes ICI score is derived from responses to the
following questions posed to all target segments:
1) The likelihood of the Indian
economic situation improving from current levels in the next six months.
2) The likelihood of an improvement
in the general investment market environment and atmosphere from current levels
in the coming six months.
3) The possibility of the global
economic environment improving from current levels in the coming six months.
4) The likelihood of the BSE Sensex
increasing in the next six months.
5) The prospect of your / your
clients‟
investment portfolio appreciating in the coming six months.
6) Expected increase or decrease in the amount of investment
and/or increase in mutual fund inflows in the coming six months.
Responses to these 6 questions also form the basis for
arriving at the Retail Investor Confidence Index, Corporate Confidence Index
and the Advisor Confidence Index which are sub-indices of the Investment Confidence
Index. At any given point, the indices can move from „0‟
to ‘200, with ‘0’ depicting the most negative outlook;
‘200’ depicting full and absolute confidence and ‘100’ showing a neutral
position.
Mr. Christopher Spelman, Whole time
Director and Chief Executive Officer of J.P. Morgan Asset Management said, “It is encouraging to see that
investors are becoming less wary of the global economic situation and that a
significant percentage of them are willing to explore investments in
international markets. This tells us that whilst investors have strong belief
in the long term growth of the Indian economy they are becoming more cognizant
of the benefits of diversification. As a fund house that strongly encourages
diversification and offers a number of products designed specifically for
investors that are interested in apportioning a part of their investments to
global markets, this is a trend we are monitoring closely.”
Mr. Arun Jethmalani, Managing
Director, Value Notes commented, “Though investor confidence has remained steady over the last
quarter, the underlying drivers have changed. Even as Indian investors appear
less worried about the global economy, domestic concerns have resurfaced.
Worries over inflation are still dominant, but corruption has emerged as a
major issue. This has kept investor confidence down and is impacting fresh
investment flow.”
The ICI now stands at 146.3, climbing 5.1 points or 3.5% from
February 2010 reading of 141.2. The Retail Investor Confidence Index ranks
highest at 159.5, followed distantly by the Advisor Confidence Index (147.2)
and the Corporate Confidence Index (132.2).
KEY FINDINGS:
Older investors get cautious as
confidence among retail investors from the age group of 60-65 years dipped
sharply by 15 points from the last quarter and now stands at 140.
The Corporate ICI has been range
bound in the last four quarters and remained unchanged for December 2010 (as
compared to September 2010) at 132 points.
IFA confidence has seen the maximum
volatility over the last four quarters. Confidence among IFAs (146.9) this
quarter declined 10 points from September 2010 (156.9). On the contrary, N/RDs
(147.2) have recorded an increase of 6.8 points.
A significant percentage of retail
investors (47%) and their advisors (44%) indicate interest in investing in
markets outside India. Brazil and China appeared to be attractive investment
destinations for investment recommendations from advisors while their retail
investors prefer USA and other Asian markets.
A higher percentage of retail
investors (19%) and advisors (14%) are optimistic about growing corporate
profitability in comparison to corporate themselves (12%).
Inflation remains the biggest cause
of concern over the past four quarters among retail investors (19%), corporates
(63%) and advisors (48%). Corruption has emerged as the new confidence killer
with 19% retail investors, 8% corporates and 16% advisors voting it to be the
most negative economic indicator in the current scenario.
Retail investment activity between
stock and Mutual Funds continued to move inversely as stocks declined to 68%
while Mutual Funds increased to 66%.
IFAs from Pune (96%) are most
positive closely followed by Delhi/NCR and Kolkata (93% each). Chennai IFAs are
the least confident among all cities with only 84% of them expecting the BSE
Sensex to trade above the current levels.
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 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.52.70 |
|
|
1 |
Rs.84.51 |
|
Euro |
1 |
Rs.68.16 |
INFORMATION DETAILS
|
Information Gathered
by : |
PJA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
51 |
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.