|
Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
ACE DERIVATIVES AND COMMODITY EXCHANGE LIMITED (w.e.f. 18.05.2010) |
|
|
|
|
Formerly Known
As : |
AHMEDABAD COMMODITY EXCHANGE LIMITED |
|
|
|
|
Registered
Office : |
Rawat Ni Wadi, Near Central Bank, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.03.1956 |
|
|
|
|
Com. Reg. No.: |
04-000597 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 958.275 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U67100GJ1956PLC000597 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT7281P |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Trader of Precious Metals, Pulses, Castor Oil and Oil Seeds, Cotton
Products. |
|
|
|
|
No. of Employees
: |
68 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1470000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. There appears huge accumulated losses recorded by the company during
the financial year 2013. Profitability of the company seems to be under
pressure. However, trade relations are fair. Business is active. Payment terms
are slow. The company can be considered for business dealing 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 PARTED BY
|
Name : |
Mr. Rakesh |
|
Designation : |
Finance Department |
|
Contact No.: |
91-22-66709201 |
|
Date : |
23.12.2013 |
LOCATIONS
|
Registered Office : |
Rawat Ni Wadi, Near Central Bank, |
|
Tel. No.: |
91-79-25356115/ 66709200 |
|
Fax No.: |
91-22-66709290 |
|
E-Mail : |
|
|
Website : |
|
|
Location: |
Owned |
|
|
|
|
Corporate Office : |
Infinity IT Park, 4th Floor, Building no.4, B-Wing, General
AK Vaidya Marg, Dindoshi, Malad (East), Mumbai – 400097, Maharashtra, India |
|
Tel. No.: |
91-22-66709201 |
|
Fax No.: |
91-22-66709290 |
|
|
|
|
Branch Office : |
Flat No. J-6, 6th Floor, Himalaya Hous, KG Marg, New Delhi – 110001, India |
DIRECTORS
As on 27.09.2013
|
Name : |
Mr. Jaimin Bhatt Mukund |
|
Designation : |
Director |
|
Address : |
18, 5th Floor, Jeevan Jyoti, 29-B-C, Lallubhai Park,
Andheri (West), Mumbai – 400058, Maharashtra, India |
|
Date of Birth/Age : |
30.03.1962 |
|
Date of Appointment : |
28.09.2010 |
|
DIN : |
00003657 |
|
|
|
|
Name : |
Ms. Shanti Ekambaram |
|
Designation : |
Director |
|
Address : |
101A, Kalpatru Habitat, |
|
Date of Birth/Age : |
14.09.1962 |
|
Date of Appointment : |
20.11.2009 |
|
DIN : |
00004889 |
|
|
|
|
Name : |
Mr. Narayan Subramaniam Ayypankav |
|
Designation : |
Director |
|
Address : |
2nd Floor, Silvares (Clear Villa), Plot No. 502, |
|
Date of Birth/Age : |
09.11.1960 |
|
Date of Appointment : |
04.08.2009 |
|
DIN : |
00007404 |
|
|
|
|
Name : |
Mr. Prakash Nayak |
|
Designation : |
Director |
|
Address : |
402, |
|
Date of Birth/Age : |
23.08.1963 |
|
Date of Appointment : |
04.08.2009 |
|
DIN : |
00011490 |
|
|
|
|
Name : |
Mr. Dileep Chinubhai Choksi |
|
Designation : |
Nominee Director |
|
Address : |
E/7, |
|
Date of Birth/Age : |
26.12.1949 |
|
Date of Appointment : |
20.11.2009 |
|
DIN : |
00016322 |
|
|
|
|
Name : |
Mr. Brijmohan Jindel |
|
Designation : |
Director appointed in casual vacancy |
|
Address : |
Flat No. B-1102, 11th Floor, Saipride, Sector-18, Plot
No.05, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra, India |
|
Date of Birth/Age : |
13.06.1945 |
|
Date of Appointment : |
16.08.2012 |
|
DIN : |
00071417 |
|
|
|
|
Name : |
Mr. Shivendra Gupta |
|
Designation : |
Director |
|
Address : |
A1-62, |
|
Date of Birth/Age : |
12.08.1970 |
|
Date of Appointment : |
20.11.2009 |
|
DIN : |
00140360 |
|
|
|
|
Name : |
Mr. Ashok Kumar Yadav |
|
Designation : |
Director |
|
Address : |
194, Sector-17, Gurgaon – 122001, Haryana, India |
|
Date of Birth/Age : |
15.07.1955 |
|
Date of Appointment : |
27.09.2013 |
|
DIN : |
01839508 |
|
|
|
|
Name : |
Mr. Vijay Sardana |
|
Designation : |
Nominee director |
|
Address : |
145-A, Pocket-C, Mayur Vihar-II, Delhi – 110091, India |
|
Date of Birth/Age : |
18.02.1967 |
|
Date of Appointment : |
28.08.2013 |
|
DIN : |
01977874 |
|
|
|
|
Name : |
Mr. Ragunath Tirupattur Venkataraman |
|
Designation : |
Director |
|
Address : |
11, Kalpataru Harmony, |
|
Date of Birth/Age : |
11.05.1962 |
|
Date of Appointment : |
04.08.2009 |
|
DIN : |
02143711 |
|
|
|
|
Name : |
Ms. Dharmishta Narendraprasad Rawal |
|
Designation : |
Nominee Director |
|
Address : |
25, Saurabh Society, Drive In Road, Ahmedabad – 380009, Gujarat, India |
|
Date of Birth/Age : |
12.01.1956 |
|
Date of Appointment : |
20.11.2009 |
|
DIN : |
02792246 |
|
|
|
|
Name : |
Mr. Jagjit Singh Sangwan |
|
Designation : |
Director |
|
Address : |
Paintawas House, Bhiwani Road, Charkhi Dadri, District Bhiwani,
Bhiwani – 127306, Haryana, India |
|
Date of Birth/Age : |
12.10.1955 |
|
Date of Appointment : |
28.09.2010 |
|
DIN : |
03280678 |
KEY EXECUTIVES
|
Name : |
Mr. Rakesh |
|
Designation : |
Finance Department |
|
|
|
|
Name : |
Mr. Yash Jaisinh Kotak |
|
Designation : |
Manager |
|
Address : |
203/A, Shalimar Apartments, |
|
Date of Birth/Age : |
26.09.1979 |
|
Date of Appointment : |
27.04.2010 |
|
DIN : |
AGMPK2765L |
|
|
|
|
Name : |
Mr. Manish Kumar Jain |
|
Designation : |
Secretary |
|
Address : |
D-504, Beach Classic, Chikuwadi, Gorai Road, Borivali (West), Mumbai –
400092, Maharashtra, India |
|
Date of Birth/Age : |
01.03.1975 |
|
Date of Appointment : |
28.09.2010 |
|
DIN : |
AFLPJ7851A |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 27.09.2013
Note: Shareholding details file attached.
As on 27.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Nationalised or other banks |
41.69 |
|
Bodies corporate |
40.77 |
|
Others |
17.54 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Trader of Precious Metals, Pulses, Castor Oil and Oil Seeds, Cotton
Products. |
|
|
|
|
Terms : |
|
|
Selling : |
L/C and Credit |
|
|
|
|
Purchasing : |
L/C and Credit |
GENERAL INFORMATION
|
Customers : |
Retailers and End Users |
|
|
|
|
No. of Employees : |
68 (Approximately) |
|
|
|
|
Bankers : |
Kotak Mahindra Bank, Malad (East), Maharashtra, India Tel. No.: 91-22-67985013 |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. V. Ghatalia and Associates LLP Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
ACHFS9181P |
|
|
|
|
Investing Parties: |
Kotak Mahindra Bank Limited, India CIN No.: L65110MH1985PLC038137 |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
95,827,461 |
Equity Shares |
Rs.10/- each |
Rs. 958.275 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 |
958.275 |
958.275 |
958.275 |
|
(b) Reserves & Surplus |
(589.639) |
(363.097) |
(103.976) |
|
(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) |
368.636 |
595.178 |
854.299 |
|
|
|
|
|
|
(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 |
58.994 |
57.148 |
31.437 |
|
(d) long-term provisions |
7.082 |
6.647 |
2.431 |
|
Total Non-current Liabilities (3) |
66.076 |
63.795 |
33.868 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
16.161 |
13.074 |
34.875 |
|
(c) Other current
liabilities |
224.162 |
307.342 |
163.367 |
|
(d) Short-term provisions |
1.188 |
1.465 |
3.727 |
|
Total Current Liabilities (4) |
241.511 |
321.881 |
201.969 |
|
|
|
|
|
|
TOTAL |
676.223 |
980.854 |
1090.136 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
39.142 |
64.139 |
83.415 |
|
(ii) Intangible Assets |
79.471 |
107.490 |
132.173 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
3.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
70.772 |
58.249 |
39.705 |
|
(e) Other Non-current assets |
0.300 |
249.672 |
2.500 |
|
Total Non-Current Assets |
189.685 |
482.550 |
257.793 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
16.970 |
0.000 |
26.700 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
2.377 |
4.139 |
3.162 |
|
(d) Cash and cash
equivalents |
447.884 |
392.325 |
783.341 |
|
(e) Short-term loans and
advances |
2.642 |
5.815 |
6.869 |
|
(f) Other current assets |
16.665 |
96.025 |
12.271 |
|
Total Current Assets |
486.538 |
498.304 |
832.343 |
|
|
|
|
|
|
TOTAL |
676.223 |
980.854 |
1090.136 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
42.995 |
41.561 |
13.366 |
|
|
|
Other Income |
56.326 |
78.237 |
55.491 |
|
|
|
TOTAL (A) |
99.321 |
119.798 |
68.857 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
96.520 |
117.695 |
83.302 |
|
|
|
Other expenses |
170.069 |
203.846 |
120.752 |
|
|
|
TOTAL (B) |
266.589 |
321.541 |
204.054 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
(167.268) |
(201.743) |
(135.197) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.243 |
0.121 |
0.017 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(167.511) |
(201.864) |
(135.214) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
60.045 |
58.101 |
32.258 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(227.556) |
(259.965) |
(167.472) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(227.556) |
(259.965) |
(167.472) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(2.37) |
(2.71) |
(2.10) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(229.11)
|
(217.00) |
(243.22) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(529.26)
|
(625.50) |
(1252.97) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(33.65)
|
(26.59) |
(15.36) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.62)
|
(0.44) |
(0.20) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.01
|
1.55 |
4.12 |
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 |
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 |
Yes |
|
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 |
No |
CURRENT MATURITIES OF
LONG TERM DEBTS: NOT AVAILABLE
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
GENERAL INFORMATION
ABOUT COMPANY
Subject is a demutualised national level multi commodity exchange. Ace is a screen based online derivatives exchange for commodities in India and is focused on servicing the needs of the Indian commodity market and offers cutting edge technology platform
FINANCIAL RESULTS
During the year, the Company recorded a total income of Rs. 99.321 Millions as compared to Rs 119.798 Millions in the previous financial year. The net loss of the Company for the year was Rs 227.556 Millions as compared to a loss of Rs 259.965 Millions in the previous financial year.
REVIEW OF BUSINESS
OPERATIONS
The Exchange recorded a total turnover of Rs. 1720101.800 Millions (one-sided) during the current financial year as compared to the previous year’s turnover of Rs. 1386546.100 Millions (one-sided). The Average Daily Traded Volume (ADTV) on the Exchange during the year was Rs. 5830.000 Millions as compared to previous year’s ADTV of Rs. 4600.000 Millions, a growth of 26.74%. During the year, the Exchange successfully handled the physical deliveries worth Rs.650.000 Millions.
During the year, the Exchange launched trading in Cotton and RBD Palmolein commodities. With the launch of these commodities, the Exchange now offers futures trading in 11 commodities viz. Castor, Chana, Guar Seed, Guar Gum, Mustard Seed, Refined Soy Oil, Soybean, Yellow Soybean Meal, Sugar, Cotton and RBD Palmolein.
In line with the previous year’s trend, the commodities belonging to Soy Complex i.e. Refined Soy Oil and Yellow Soybean Meal continued to show decent momentum. The newly launched commodities i.e. Cotton and RBD Palmolein registered the ADTV of Rs. 244.100 Millions and Rs. 254.200 Millions respectively during the year.
During the year 2012-13, the top 5 commodities in terms of daily traded value were Refined Soy Oil, Soybean, Yellow Soybean Meal, Cotton and RBD Palmolein and contributed 99% of the total traded value. Of this, Soy Complex contributed 96%, Cotton and RBD Palmolein contributed 2% and 1% respectively.
During the year, the Exchange added seventeen (17) new members.
During the year, the Exchange conducted 51 awareness programs jointly with FMC in the relevant regions for the benefit and education of market participants. Also, the Exchange installed 94 Price Ticker Boards during the year under the Price Dissemination Project. The total numberof Price Ticker Boards installed by the Exchange till March 31, 2013 stood at 174.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC OVERVIEW
INDIAN ECONOMY
The Indian economy faced tough times during the fiscal 2013, wherein the effect of slowdown was seen across sectors. The effects of slowdown were witnessed in falling savings coupled with falling aggregate investment leading to widening current account deficit. The Government has taken various measures to improve the fiscal health of the Country.
After the financial crisis in the year 2008-09, the Indian economy responded well to the strong fiscal and monetary stimulus. However, to tackle the inflationary trends in the subsequent years, the Reserve Bank of India (RBI) raised the interest rates resulting in growth rates slowing to 5 percent in the year 2012-13, from 6.2 in the year 2011-12.
The moderation in growth is primarily attributable to weakness in industry (comprising the mining and quarrying, manufacturing, electricity, gas and water supply, and construction sectors) which registered a growth rate of only 3.5 per cent and 3.1 per cent in 2011-12 and 2012-13 respectively. The rate of growth of the manufacturing sector was even lower at 2.7 per cent and 1.9 per cent for these two years respectively. Growth in agriculture has also been weak in 2012-13 at 1.8% as against 2.7% last year, following lower-than-normal rainfall, especially in the initial phases (months of June and July) of the south-west monsoon.
Average annual growth of the agriculture and allied sector during the eleventh five year plan at 3.6% fell short of the 4% growth target. The growth target for agriculture in the twelfth five year plan remains at 4% as in the eleventh five year plan.
GLOBAL ECONOMY
As per the mid review monetary policy released by RBI it is observed that the growth looks uneven in the global scenario. Improved growth is witnessed in advanced economies like USA and Japan, however, growth in most emerging and developing economies have been relatively subdued. In some large emerging economies, sluggish external demand and stalled domestic investments are dragging down economic activity. Globally, the inflation has been easing due to weak demand. Few emerging economies, are presenting a mixed picture where inflation is on the rise, except China. The commodity prices have also softened in the recent months.
OUTLOOK
The commodity prices are weakening on the global front and weaker pricing power of the corporate is having a softening impact on the inflation front. Going forward, inflation scenario will be determined by suppressed inflation being released through revisions in administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee.
The government has taken steps to curb increasing gold imports; and due to softer global commodity prices and measures taken to dampen gold imports, Current Account Deficit (CAD) in 2013-14 is expected to moderate from its previous year’s level. The main challenge is to reduce the CAD to a sustainable level; the near-term challenge is to finance it through stable flows. The most recent number on the Centre’s fiscal deficit, at 4.9 per cent of GDP for 2012-13, has turned out better than expected and instills confidence in the Government’s commitment to contain the fiscal deficit for 2013-14 at 4.8 per cent.
Efforts towards consolidation shall help in mitigating the twin deficit risks to the outlook. The positive impact of efforts taken is also acknowledged by international credit rating agencies, which shall help bolster investor confidence.
The robustrabiproduction and the monsoon performance has provided positive cues on growth prospects. The distribution of rainfall over the next three months will be crucial in determining the performance of agriculture. The continuing weakness in manufacturing activity needs to be urgently reversed. Key to bolster growth is accelerating investment by creating an environment conducive for private investment, improving project clearance and implementation and leveraging on the crowding-in role of public investment.
INDUSTRY OVERVIEW
The trading of commodities consists oftradinginspot markets and derivatives exchanges. Exchange traded commodities have seen an upturn in the trading volumes since the start of the decade. India currently has six nationwide multi-commodity exchanges which have been set up under overall control of Forward Markets Commission (FMC), Government of India.
In recent times, the Forward Markets Commission has taken slew of measures for better regulation and to increase the transparency in commodity derivatives markets functioning such as clubbing of open positions across the exchanges, requirement of exposure free Base Minimum Capital, Guidelines on Algorithmic trading etc. Though these measures are expected to add to efficient market functioning in the long run; the immediate reaction of the market participants to these measures has been negative thereby adversely impacting the volume on the Exchange platform.
The financial year 2012-13 saw marginal growth in quantity traded (Volume) on the National commodity exchanges. Volume traded for FY 2012-13 was 14,510.08 lakh MTs as against 14,025.74 lakh MT in previous year, registering a growth of 3.46%. However in value terms, the value of commodity traded on National commodity exchanges declined by 5.96% and stood at Rs. 170468400.900 Millions in the FY 2012-13 as against Rs. 181261037.800 Millions in the previous year.
In the financial year 2012-13, Metals, Bullion, Energy and Agricultural commodities contributed approximately 19.12%, 46.12%, 22.10% and 12.65% respectively to the total turnover of Commodity Exchanges, registering a change of approximately 12.54%, -22.77%, 32.17% and -1.85% respectively as compared to the previous financial year.
BUSINESS OVERVIEW
The Exchange has successfully completed two years of its online operations as a nationwide multi-commodity exchange. The Exchange started the year with 7 commodities on its platform for trading viz., Castor Seed, Chana, Rape Mustard Seed, Sugar, Soybean, Refined Soy Oil and Yellow Soybean Meal. During the year 2012-13, the Exchange launched futures trading in Cotton and RBD Palmolein.
Due to spiraling prices of Guar Seed and Guar Gum, the futures trading in Guar Complex was suspended by the Forward Markets Commission (FMC) w.e.f March 28, 2012 hence impacting the volumes on the Exchange platform to a certain extent. The order of suspension is now revoked with Guar Complex being available for trading on the nationwide exchanges, including the exchange. With this, the Exchange now offers futures trading in 11 commodities. As a part of the company’s continuous endeavor to diversify the product portfolio and making available products suiting the requirements of market participants, it is looking at launching new commodities.
The Exchange recorded a total turnover of Rs. 1720101.800 Millions (one-sided) during the current financial year as compared to the previous year’s turnover of Rs. 1386546.100 Millions (one-sided). The Average Daily Traded Volume (ADTV) on the Exchange during the year was Rs. 5830.000 Millions as compared to previous year’s ADTV of Rs. 4600.000 Millions, a growth of 26.74%.
During the year, the Exchange inducted seventeen (17) new members, empanelled one (1) new Warehouse Service Provider (WSP) and two (2) depository participants. With this, the Exchange has 482 members, 5 WSPs, 22 Depository Participants and 10 Clearing Banks as on March 31, 2013.
During the year, the Exchange launched trading in Cotton and RBD Palmolein contracts. Your Exchange is the first exchange in India to launch a Cotton contract with trading units being in ‘Candy’, which is a reflection of the requirement of the physical market participants.
Out of the 11 commodities available for trading on the Exchange platform, the commodities belonging to Soy Complex i.e. Soybean, Refined Soy Oil and Yellow Soybean Meal continued to show decent momentum in the year 2012-13. The commodities belonging to Soy Complex contributed 96 % to the total traded value during the year 2012-13. The newly launched commodities i.e. Cotton and RBD Palmolein contributed 2% and 1% respectively to the total volume. It is expected that liquidity in Cotton and RBD Palmolein will increase gradually.
In order to diversify its product portfolio, the Exchange is looking at launching the contracts in Crude Palm Oil.
BUSINESS OUTLOOK
The Business Outlook for the commodities derivatives markets in general and Ace in particular may be subdued in the coming year on account of imposition of Commodities Transaction Tax (CTT) and weak economic situation. It is expected that future trade in commodities would witness a slower growth rate in the coming year also as was witnessed in the year gone by. Further, with increase in the number of nationwide commodity exchanges, the competitive environment has become more challenging. However, with passing of the FCRA amendment bill and subsequent reforms, it is expected that the market shall gradually grow as it is significantly under-penetrated and thinly spread as compared tointernationalbenchmarks.
The Exchange is making continuous efforts to diversify its product portfolio, induct new members to increase participation and improve volumes on exchange platform.
FIXED ASSETS
v
TANGIBLE
ASSETS
Land
Premises
Leasehold
Improvements
Computers
and Computer Hardware
Office
Equipment
Furniture
and Fixtures
Vehicles
v
INTANGIBLE ASSETS
Trading
Software
Other
Software
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 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.61.99 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
27 |
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.