MIRA INFORM REPORT
|
Report Date : |
27.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
PRINCIPAL PNB ASSET MANAGEMENT COMPANY PRIVATE LIMITED [w.e.f.
24.01.2005] |
|
|
|
|
Formerly Known
As : |
INDIAN INVESTMENT MANAGEMENT COMPANY LIMITED |
|
|
|
|
Registered Office
: |
Exchange Plaza, B Wing, Ground Floor, NSE Building, Bandra-Kurla
Complex, Bandra (East), Mumbai – 400051, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
20.11.1991 |
|
|
|
|
Com. Reg. No.: |
11-64092 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.100.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U25000MH1991PTC064092 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUM105257A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI9361B |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is act a asset management company |
|
|
|
|
No. of Employees
: |
150 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (35) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 880000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a joint venture between Principal Asset Management
(Mauritius) Limited and two of the largest banks in India: Punjab National
Bank and Vijaya Bank. It is having a moderate track record. The company is successful in wiping off its accumulated losses during
2012 which has heavily deteriorated its reserves position. Financial position
appears to be below average. However, trade relations are fair. Business is active. Payment terms
are slow but correct. In view of strong holding companies, the subject can be considered for
normal business dealings with some caution. |
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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Principal Bank CD Fund: A1 + Mfs [Withdrawn]
|
|
Rating Explanation |
Strong degree of safety regarding timely
receipt of payments |
|
Date |
December, 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
Principal Income Fund: AAA Mfs [Withdrawn] |
|
Rating Explanation |
Highest degree of safety regarding timely
receipt of payments. |
|
Date |
December, 2012 |
NOTE: ICRA has withdrawn the
said ratings at the request of the company.
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 PARTED BY (General Details)
|
Name : |
Mr. Devang Ghia |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-22-67720555 |
|
Date : |
26.08.2013 |
LOCATIONS
|
Registered Office : |
Exchange Plaza, B Wing, Ground Floor, NSE Building, Bandra-Kurla
Complex, Bandra (East), Mumbai – 400051, Maharashtra, India |
|
Tel. No.: |
91-22-67720555 |
|
Fax No.: |
91-22-67720512/ 22044990 |
|
E-Mail : |
shah.pratik@principalindia.com ghia.devang@principalindia.com |
|
Website : |
|
|
Location : |
Owned |
DIRECTORS
(AS ON 21.09.2012)
|
Name : |
Mr. Mukund Manohar Chitale |
|
Designation : |
Director |
|
Address : |
4/46, Vishnu Prasad Society Shahaji Raje Marg, Vile Parle (East),
Mumbai-400057, |
|
Date of Birth/Age : |
16.11.1949 |
|
Qualification : |
B.Com, Chartered Accountant |
|
Date of Appointment : |
29.03.2007 |
|
DIN No.: |
00101004 |
|
|
|
|
Name : |
Mr. Rustam Jehangir Gagrat |
|
Designation : |
Director |
|
Address : |
9, Om Ratan Pochkhanawala Road, New Worli, Mumbai – 400025,
Maharashtra, India |
|
Date of Birth/Age : |
05.11.1959 |
|
Qualification : |
M.A., Advocate, Solicitor, Notary |
|
Date of Appointment : |
29.05.2001 |
|
DIN No.: |
00096581 |
|
|
|
|
Name : |
Mr. Rajan Ramkrishna Ghotgalkar |
|
Designation : |
Managing Director |
|
Address : |
10 A II, Great, Eastern Royale 1/322, |
|
Date of Birth/Age : |
04.05.1958 |
|
Qualification : |
B.Com (Honours), Chartered Accountant |
|
Date of Appointment : |
19.09.2006 |
|
DIN No.: |
00777125 |
|
|
|
|
Name : |
Mr. Rex Kuen Pak Auyeung |
|
Designation : |
Director |
|
Address : |
Flat B 13/F, |
|
Date of Birth/Age : |
16.04.1952 |
|
Date of Appointment : |
17.01.2008 |
|
DIN No.: |
00504658 |
|
|
|
|
Name : |
Mr. Parveen Kumar Chhokra |
|
Designation : |
Director |
|
Address : |
A-27, Oberoi Apartment, 2 Shamnath Marg, Civil Lines, Delhi – 110054,
India |
|
Date of Birth/Age : |
15.03.1953 |
|
Date of Appointment : |
18.01.2012 |
|
DIN No.: |
03107873 |
|
|
|
|
Name : |
Mr. Ganesh Srinivasan |
|
Designation : |
Alternate Director |
|
Address : |
501, 5th Floor, IIIA-Wing, Nestle Apartment, Pandurang
Budhkar MG, Worli, Mumbai – 400013, Maharashtra, India |
|
Date of Birth/Age : |
17.08.1952 |
|
Date of Appointment : |
19.01.2012 |
|
DIN No.: |
05124495 |
KEY EXECUTIVES
|
Name : |
Mr. Devang Ghia |
|
Designation : |
Finance Manager |
|
|
|
|
Name : |
Mr. Pratik Ashok Shah |
|
Designation : |
Secretary |
|
Address : |
1-A, Goolestan, 37 Cuffe Parade, Mumbai – 400005, Maharashtra, India |
|
Date of Birth/Age : |
09.05.1979 |
|
Date of Appointment : |
07.09.2012 |
|
PANNo.: |
AWPPS3523H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 21.09.2012)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Principal Financial Group ( |
|
7060002 |
|
Punjab National Bank |
|
3240000 |
|
Vijaya Bank |
|
500000 |
|
Sudhinchandra Padhye |
|
6 |
|
|
|
|
|
Total |
|
10800008 |
(AS ON 25.04.2013)
|
Names of Allottee |
|
No. of Shares
Allotted |
|
|
|
|
|
Principal Financial Group ( |
|
1045927 |
|
|
|
|
|
Total |
|
1045927 |
(AS ON 30.09.2012)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Nationalised or other banks |
|
34.63 |
|
Foreign holdings (Foreign Institutional Investor(s), Foreign
Companie(s) Foreign Financial Institution(s), Non-Resident Indian(s) or Overseas Corporate Bodies or Others) |
|
65.36 |
|
Others |
|
0.01 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is act a asset management company |
|
|
|
|
Branch Name : |
“THE PRINCIPAL” |
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit |
|
|
|
|
Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
|
|
|
|
No. of Employees : |
150 (Approximately) |
|
|
|
|
Bankers : |
· IDBI Bank Mumbai, Maharashtra, India · Punjab National Bank |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.V. Ghatalia and Associates Chartered
Accountant |
|
Address : |
6th Floor, Express Towers, Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
PAN No.: |
AACFS6921Q |
|
|
|
|
Ultimate Holding Company : |
·
Principal Financial Group, Inc |
|
|
|
|
Holding Company: |
·
Principal Financial Group ( ·
Principal Financial Services, Inc |
|
|
|
|
Subsidiaries : |
·
Principal International, Inc |
|
|
|
|
Fellow Subsidiaries: |
·
Principal PNB Trustee Company Private Limited · Principal Retirement Advisors Private Limited (formerly known as Principal Financial Planners Private Limited) |
|
|
|
|
Associates: |
·
Punjab National Bank |
CAPITAL STRUCTURE
(AFTER - 21.09.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12400010 |
Equity Shares |
Rs.10/- each |
Rs.124.000 Millions
|
|
|
|
|
|
(AS ON 21.09.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
1000000 |
Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10800009 |
Equity Shares |
Rs.10/- each |
Rs.108.000
Millions |
|
|
|
|
|
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
1000000 |
10% cumulative redeemable preference share |
Rs.100/- each |
Rs.100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000008 |
Equity Shares |
Rs.10/- each |
Rs.100.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
100.000 |
100.000 |
|
(b) Reserves & Surplus |
|
53.901 |
134.412 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
|
65.000 |
0.000 |
|
Total
Shareholders’ Funds (1)+(2) |
|
218.901 |
234.412 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c)
Other long term liabilities |
|
0.000 |
0.000 |
|
(d)
long-term provisions |
|
2.103 |
0.640 |
|
Total
Non-current Liabilities (3) |
|
2.103 |
0.640 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
0.000 |
0.000 |
|
(b)
Trade payables |
|
18.765 |
26.465 |
|
(c)
Other current liabilities |
|
45.554 |
47.584 |
|
(d)
Short-term provisions |
|
0.270 |
0.422 |
|
Total
Current Liabilities (4) |
|
64.589 |
74.471 |
|
|
|
|
|
|
TOTAL |
|
285.593 |
309.523 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
6.916 |
12.121 |
|
(ii)
Intangible Assets |
|
21.427 |
31.168 |
|
(iii)
Capital work-in-progress |
|
0.000 |
0.000 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
|
25.277 |
39.622 |
|
(e)
Other Non-current assets |
|
0.000 |
0.000 |
|
Total
Non-Current Assets |
|
53.620 |
82.911 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
38.885 |
92.901 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c)
Trade receivables |
|
27.352 |
22.549 |
|
(d)
Cash and cash equivalents |
|
76.412 |
1.111 |
|
(e)
Short-term loans and advances |
|
89.324 |
110.051 |
|
(f)
Other current assets |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
231.973 |
226.612 |
|
|
|
|
|
|
TOTAL |
|
285.593 |
309.523 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
100.000 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
460.000 |
|
|
4] (Accumulated Losses) |
|
|
(299.786) |
|
|
NETWORTH |
|
|
260.214 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
260.214 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
62.484 |
|
|
Capital work-in-progress |
|
|
0.220 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
55.099 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000
|
|
|
Sundry Debtors |
|
|
38.466
|
|
|
Cash & Bank Balances |
|
|
1.162
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
167.632
|
|
Total
Current Assets |
|
|
207.260 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
|
|
20.920
|
|
|
Other Current Liabilities |
|
|
43.130
|
|
|
Provisions |
|
|
0.800
|
|
Total
Current Liabilities |
|
|
65.115 |
|
|
Net Current Assets |
|
|
143.411 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
260.214 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
401.461 |
187.449 |
|
|
|
|
Other Income |
1532.600 |
350.441 |
|
|
|
|
TOTAL |
1934.061 |
537.890 |
387.499 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
6000.025 |
933.361 |
376.006 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(4065.964) |
(395.471) |
11.493 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
30.357 |
0.000 |
(8.115) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
(4096.321) |
(395.471) |
19.608 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(2265.340) |
(1869.869) |
(390.707) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(6361.661) |
(2265.340) |
(371.099) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
NA |
1.162 |
0.362 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(1.73) |
(0.69) |
1.96 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(211.78)
|
(73.52) |
5.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1012.79)
|
(210.98) |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1423.69)
|
(127.77) |
4.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(18.57)
|
(1.69) |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.59
|
3.04 |
3.18 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM BORROWINGS DETAIL:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Current Maturity of Long Term Borrowings |
0.000 |
0.000 |
Not Available |
|
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 |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
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 |
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 |
OPERATIONS
Income from
operations for the financial year was Rs.4.015 Millions as compared to Rs.1.874
Millions in the previous year. The Company has incurred a loss of Rs.40.963
Millions in the current year as compared to Rs.3.955 Millions in the previous
year. This was mainly due to scaling up of operations before full launch of
retirement advisory services in FY 2012-13.
During the year,
the key focus of Principal Retirement Advisors Private Limited (PRAPL) has been
to put in place the infrastructure, processes and thought capital across
various functions - Premises, Technology, Operations, Recruitment and Training,
Marketing etc. in order to setup the Company on its course to establish a
successful and amongst the first of its kind fee-based retirement advisory
services model in India.
In all their
endeavors, the key guiding principle has been to position “The Principal” brand
as a global brand with strong core values and committed to giving the planners
and our customers the edge every day.
On the premises
front, they are in the process of setting up best-in-class infrastructure for
our offices at high streets with prominent branding in the 11 identified
centers across the country. They have roped in IBM for advising them on the
technological infrastructure requirements with a view to facilitate operations
with / without brick and mortar setup. They expect to be ready with the
completely equipped office infrastructure (with new age technology) by end of October,
2012 in the 11 centers.
The Retirement
Planning Platform is the backbone of their advisory services business. It will
be a one-stop -shop for all client, financial plans, updates etc. and online
access to specific modules of the application will be made available to
employees, planners and customers. Other technological initiatives to enable
online operations are also being put in place they believe that the quality of
their Planners and their service delivery to the end customers will differentiate
them from the rest of the competition.
Accordingly, they
have put in place stringent criteria and processes for selection, recruitment
and training of planners. There is an equally intensive focus on training of
their planners. The program comprises of a rigorous 3- month training starting
with induction into the Company and covering aspects like Financial Planning
process, financial products, Integrity Selling etc. culminating with successful
completion of NISM CPFA and NISM MF certifications. Planners are considered
market ready only post completion of certifications. They are in the process of
putting in place an ongoing training and development program for the Planners.
A similar program with relevant content has been put in place for the Key
Employees. On the marketing and communications front, they have made their
website (www.principalretirementindia.com)
live in November 2011 and are in the process of further developing the thought
capital for their planners and consumers. They are also developing the Brand
architecture and the advertisement campaign for the planned full launch next
year, in line with their global branding and positioning.
FUTURE OUTLOOK
The India Story
especially with the Great Indian Middle Class continues to remain quite
attractive despite sluggish GDP growth in last one year.
The favourable
demographics coupled with double digit per capita growth and other
socio-economic factors like high consumption and usage of credit, nuclearization
of families etc. makes a strong case for retirement planning.
The challenge will
be to educate and demonstrate value of the fee-based advisory services to
consumers who are used to buying products from distributors without advice for
free. But the regulatory environment in India is steadily shifting towards the
fee based financial advisory model from the current commission based agency
model and this augurs well for the Company in the long run.
INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY
FIXED ASSETS:
·
Furniture and Fixtures
·
Vehicles
·
Motor Vehicles
·
Office Equipment
·
Computer
·
Leasehold Improvements
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.64.23 |
|
|
1 |
Rs.100.01 |
|
Euro |
1 |
Rs.85.93 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
35 |
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.