MIRA INFORM REPORT

 

 

Report Date :

23.12.2013

 

IDENTIFICATION DETAILS

 

Name :

KOTAK MAHINDRA PENSION FUND LIMITED

 

 

Registered Office :

36-38 A, Nariman Bhavan, 227, Nariman Point, Mumbai-400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

23.03.2009

 

 

Com. Reg. No.:

11-191144

 

 

Capital Investment / Paid-up Capital :

Rs. 280.000 Millions

 

 

CIN No.:

[Company Identification No.]

U67200MH2009PLC191144

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is providing investment management services to the pension fund schemes

 

 

No. of Employees :

Information denied by the management

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1000000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having a moderate track record.

 

There appear accumulated loss recorded by the company.

 

However, trade relations are fair. Business is active. Payments are reported to be slow but correct.

 

In view of strong holding, the company can be considered for 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

 

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

 

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

 

India has been ranked 83rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

 

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

 

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

 

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

 

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

 

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

 

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery  worth Rs 6.7 mn have been recovered from the residence of Acharya.

 

 

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 BY

 

Management non co-operative

 

 

LOCATIONS

 

Registered Office :

36-38 A, Nariman Bhavan, 227, Nariman Point, Mumbai-400021, Maharashtra, India  

Tel. No.:

91-22-66056825

Fax No.:

91-22-66384455

E-Mail :

darshana.baliya@kotak.com

Website :

www.kotakpensionfund.com

 

 

Corporate Office :

6th Floor, Kotak Infinity Towers, Building No.21, Infinity Park, General A K Vaidya Marg, Malad (East), Mumbai-400097, Maharashtra, India

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. Tushar Mavani 

Designation :

Director

 

 

Name :

Mr. Shivaji Dam

Designation :

Director

 

 

Name :

Mr. Balan Wasudeo

Designation :

Director

 

 

Name :

Mr. Gaurang Shah

Designation :

Associates Director

 

 

Name :

Mr. Sandesh Kirkire

Designation :

Director

 

 

Name :

Mr. Jaimin Bhatt

Designation :

Associate Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Sandeep Shrikhande

Designation :

Chief Executive Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Not Available

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is providing investment management services to the pension fund schemes

 

 

GENERAL INFORMATION

 

No. of Employees :

Information denied by the management

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

 

 

Holding Company :

Kotak Mahindra Asset Management Company

 

 

Ultimate Holding Company :

Kotak Mahindra Bank Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

30000000

Equity Shares

Rs.10/- each

Rs. 300.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

28000000

Equity Shares

Rs.10/- each

Rs. 280.000 Millions

 

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

280.000

120.000

120.000

(b) Reserves & Surplus

(23.187)

(17.141)

(11.942)

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

256.813

102.859

108.058

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.869

0.631

0.540

Total Non-current Liabilities (3)

0.869

0.631

0.540

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

3.526

2.362

2.470

(c) Other current liabilities

0.207

0.095

0.239

(d) Short-term provisions

0.127

0.098

0.128

Total Current Liabilities (4)

3.860

2.555

2.837

 

 

 

 

TOTAL

261.542

106.045

111.435

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1.597

0.000

0.000

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

0.000

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

258.707

81.717

105.011

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.021

0.011

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

260.325

81.728

105.011

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

0.013

0.000

0.000

(d) Cash and cash equivalents

1.116

24.260

6.221

(e) Short-term loans and advances

0.074

0.057

0.202

(f) Other current assets

0.014

0.000

0.001

Total Current Assets

1.217

24.317

6.424

 

 

 

 

TOTAL

261.542

106.045

111.435

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from Operation

0.014

0.000

0.000

 

 

Other Income

8.167

4.700

0.390

 

 

TOTAL                                     (A)

8.181

4.700

0.390

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefits expenses

5.635

4.954

3.899

 

 

Other Expenses

8.449

3.945

2.208

 

 

Prior Period Items

0.000

1.000

0.000

 

 

TOTAL                                     (B)

14.084

9.899

6.107

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

(5.903)

(5.199)

(5.717)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.000

0.000

0.008

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(5.903)

(5.199)

(5.725)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

0.143

0.000

0.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                 (G)

(6.046)

(5.199)

(5.725)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

(6.046)

(5.199)

(5.725)

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(0.32)

(0.43)

(0.48)

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(73.90)

(110.62)

(1467.95)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(43185.71)

0.00

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(213.26)

(21.37)

(89.12)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.02)

(0.05)

(0.05)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.32

9.52

2.26

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

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

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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

No

 

 

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. In Millions)

Particulars

 

31.03.2013

31.03.2012

31.03.2011

Current Maturities Of Long Term Debt

NA

NA

NA

 

 

 

 

TOTAL

NA

NA

NA

 

 

VIEW INDEX OF CHARGES - No Charges Exist for Company

 

 

CORPORATE INFORMATION

 

Subject is a Company incorporated on 23rd March, 2009. The main business of the Company is managing the investments of the New Pension Scheme as formed by the Government of India through the Pension Fund Regulatory and Development Authority (PFRDA). The investments are held by the Board of Trustees of the New Pension System Trust, established by the PFRDA under the Indian Trusts Act, 1882.

 

 

OPERATIONS

 

The company was appointed as a PFM by the PFRDA on April 30, 2009 for a period of three years ending April 30, 2012 for managing the funds under New Pension System (NPS), as per the terms of the Investment Management Agreement dated April 30, 2009. This arrangement of management of Pension Funds for Unorganized Sector was extended up to 31st March, 2013 or till the date of fresh appointment, whichever is earlier. The company was granted a certificate of registration – PFRDA/003/2013/PFM as per Registration of Pension Funds under Private sector Guidelines 2012 on January 23, 2013 and signed the revised Investment Management Agreement with NPS Trust on March 21, 2013.

 

With reference to the revised Guidelines for registration of Pension Funds for Private sector, PFRDA has fixed an upper ceiling limit at 0.25% p.a. within which the Pension Fund Managers can fix their Investment Management Fees for different schemes. Accordingly, Investment Management Fees for their Tier I and Tier II schemes have been increased from 0.0009% p.a. to 0.25% p.a. and 0.0102% p.a. for NPS Lite scheme on the Assets under management w.e.f. March 21, 2013 on a daily basis inclusive of brokerage except Custodian Charges, applicable taxes and any other charges permitted by PFRDA from time to time.

 

As per the terms of the appointment, the Company manages the funds received in the Trustee Bank (Bank of India) and as per the pension fund subscription information provided by the Central record keeping agency (National Securities Depository Limited). The assets are under the custody of the NPS Trustee appointed custodian viz., Stock Holding Corporation of India Limited.

 

The Company manages seven scheme, and the combined assets under management on March 31, 2013 were Rs. 247.490 Millions.

 

 

FIXED ASSETS

 

·         Vehicles

·         Office Equipments

 

 

 


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 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 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. 62.24

UK Pound

1

Rs. 101.80

Euro

1

Rs. 84.87

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

DPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

4

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--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

 

34

 

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.