MIRA INFORM REPORT

 

 

Report Date :

19.02.2013

 

IDENTIFICATION DETAILS

 

Name :

BIRLA SUN LIFE ASSET MANAGEMENT COMPANY LIMITED

 

 

Registered Office :

One India Bulls Tower 1, 17th Floor, Jupiter Mills, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013, Maharashtra 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012 (Profit and Loss Account)

 

 

Date of Incorporation :

05.09.1994

 

 

Com. Reg. No.:

11-080811

 

 

Capital Investment / Paid-up Capital :

Rs. 180.000 millions

 

 

CIN No.:

[Company Identification No.]

U65991MH1994PLC080811

 

 

PAN No.:

[Permanent Account No.]

AAACB6134D

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Fund Management and Advisory Service.

 

 

No. of Employees :

Information declined 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

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established asset management company having a satisfactory track record.

 

There appears some dip in the total income earned during 2012 and profits.

 

The group company is passing through some financial crisis and Birla power solutions limited has defaulted against its payment.

 

However, trade relations are reported as decent. Business of the subject is active. Payment terms are usually correct and as per commitment.

 

The company can be considered 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

ICRA

Rating

A1+mfs (Birla Cash plus find)

Rating Explanation

The highest credit quality short term rating and lowest credit risk.

Date

March 2012

 

Rating Agency Name

ICRA

Rating

AAAmfs (Birla floating rate – long term plan)

Rating Explanation

The highest credit quality and lowest credit risk.

Date

March 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 DENIED BY

 

Name :

Ms. Rubi

Designation :

Finance Executive

Contact No.:

91-22-43568000

Date :

15.02.2013

 

 

LOCATIONS

 

Registered Office :

One India Bulls Tower 1, 17th Floor, Jupiter Mills, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013, Maharashtra, India

Tel. No.:

91-22-43568009

Fax No.:

91-22-43568110

E-Mail :

connect@birlasunlife.com

Website :

www.birlasunlife.com

http://mutualfund.birlasunlife.com

 

 

DIRECTORS

 

As on 24.07.2012

 

Name :

Mr. Donald Alexander Stewart

Designation :

Director

Address :

Sun Life Financial Services Inc., 150, King Street West, 6th Floor, Toronto, Onm5hij9, Canada

Date of Birth/Age :

06.11.1946

Qualification :

FIA, FCIA

Date of Appointment :

29.09.2000

DIN No.:

00438164

 

 

Name :

Mr. Kumar Mangalam Birla

Designation :

Director

Qualification :

C.A., M.B.A. (London Business School)

Date of Appointment :

28.10.1995

DIN No.:

00012813

 

 

Name :

Mr. Ajay Srinivasan

Designation :

Director

Address :

91 / 901, Narain Tarraces, 7TH , 8TH  Floor, Union Park Road, Pali Hill, Bandra (W), Mumbai - 400050, Maharashtra, India

Date of Birth/Age :

02.11.1963

Qualification :

B.A. Economics (Hons.), PGDM, IIM – Ahmedabad

Date of Appointment :

02.08.2007

DIN No.:

00121181

 

 

Name :

Mr. Pankaj Jawaharlal Razdan

Designation :

Director

Address :

Sherwin Ark, Bungalow No. 3, Bellscot CHS Lokhandwala Complex, Andheri (West), Mumbai - 400058, Maharashtra, India

Date of Birth/Age :

16.11.1968

Qualification :

B. Tech (Electronics), B. S C (Electronics)

Date of Appointment :

21.10.2009

DIN No.:

00061240

 

 

Name :

Mr. Navalkishor Naginlal Jambusaria

Designation :

Director

Address :

401, Bakers Field, A – 22, Shastri Nagar, Near Lokhandwala Complex, Andheri, Mumbai – 400 053, Maharashtra, India

Date of Birth/Age :

15.12.1933

Qualification :

M. Com, Fellow of the Institute of Actuaries, London, F.A.S.I. (Fellow of the Actuarial Society of India)

Date of Appointment :

19.06.2001

DIN No.:

00055760

 

 

Name :

Mr. Sandeep Asthana

Designation :

Director

Address :

A - 403, Golden Oak, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra, India

Date of Birth/Age :

16.04.1968

Qualification :

B. Tech (IIT, Mumbai), MBA (IIM, Lucknow )

Date of Appointment :

27.04.2011

DIN No.:

00401858

 

 

Name :

Mr. Naresh Chand Singhal

Designation :

Director

Address :

D-107, Poornima, Pedder Road, Mumbai - 400 026, Maharashtra, India

Date of Birth/Age :

10.08.1936

Qualification :

Postgraduate in Economics, Statistics and Administration, Has received professional education from institutes like IIM (Ahmedabad, Calcutta), IIT Kanpur, and ISI Calcutta

Date of Appointment :

20.05.2002

DIN No.:

00004916

 

 

Name :

Mr. Bobby Kanubhai Parikh

Designation :

Director

Address :

4, Seven on the Hill, Auxilium Convent Road, Pali Hill, Bandra (West), Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

30.04.1964

Qualification :

B.Com, C.A.

Date of Appointment :

03.02.2012

DIN No.:

00019437

 

 

Name :

Mr. Sundara Raman Subramaniam

Designation :

Director

Address :

304, Cypress, Marigold Premises, Kalyan Nager, Pune – 411 014, Maharashtra, India

Date of Birth/Age :

30.06.1937

Qualification :

B.Com (Hons.), C. A. , Post Graduate in Business Management

Date of Appointment :

15.11.1999

DIN No.:

00308407

 

 

Name :

Mr. Vaidyanathan Ramamurthy

Designation :

Director

Address :

226, Panduranga Nagar, Bannerghatta Road, Bangalore – 560 076, Karnataka, India

Date of Birth/Age :

21.12.1951

Qualification :

M. Stat, PhD in Finance

Date of Appointment :

21.10.2009

DIN No.:

00221577

 

 

Name :

Mr. Kevin David Strain

Designation :

Director

Address :

180, Watson Ave, Oakville, Ontario, Canada – L6A 3T8

Date of Birth/Age :

31.08.1966

Date of Appointment :

28.04.2012

DIN No.:

05262340

 

 

Name :

Mr. Bharat Vithalbhai Patel

Designation :

Director

Address :

52, Mlami Apartments, Bhulabhai Desai Road, Breach Candy, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

25.09.1944

Date of Appointment :

27.06.2012

DIN No.:

00060998

 

 

KEY EXECUTIVES

 

 

Name :

Ms. Rubi

Designation :

Finance Executive

 

 

Name :

Mr. Rajiv Vinodchandra Joshi

Designation :

Secretary

Address :

A / 6, Jeevan Sudha, Juhu lane, Andheri (West), Mumbai – 400 058, Maharashtra, India

Date of Birth/Age :

07.05.1963

Date of Appointment :

25.04.2008

PAN No.:

AACPJ1462H

 

 

Name :

Mr. Anil Kumar Darshan Lal

Designation :

Manager

Address :

C10 / 6, Jeevan Terrace, LIC Colony, Mumbai – 400 103, Maharashtra, India

Date of Birth/Age :

12.12.1960

Date of Appointment :

24.05.2008

PAN No.:

AABPL1502B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 24.07.2012

 

Names of Shareholders

 

No. of Shares

 

 

 

Aditya Birla Financial Services Private Limited, India

 

8999910

Birla Aditya Kumar Mangalam

 

10

Birla Kumar Mangalam Neerja

 

10

Sun Life (India) AMC Investments Inc.

 

9000000

Aditya Birla Financial Services Private Limited Jointly With Manoj Kedia

 

32

Aditya Birla financial Services Private Limited Jointly With Devendra Bhandari

 

12

Aditya Birla Financial Services Private Limited Jointly With Sushil Agarwal

 

26

 

 

 

TOTAL

 

18000000

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

50.00

Bodies corporate

50.00

Total

100.00

 

 

BUSINESS DETAILS

 

 

Line of Business :

Providing Fund Management and Advisory Service.

 

 

GENERAL INFORMATION

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Haribhakti and Company

Chartered Accountants

Address :

701, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400 059, Maharashtra, India

Tel. No.:

91-22-61326999 / 66729999

Fax No.:

91-22-22856237 / 66729777

E-Mail :

www.bdoindia.co.in

PAN No.:

AAAFH2010F

 

 

Subsidiaries :

·         India Advantage Fund Limited

·         Birla Sun Life AMC (Mauritius) Limited

·         Aditya Birla Sun Life AMC Limited, Dubai

·         Aditya Birla Sun Life AMC Pte. Limited, Singapore

 

 

Group Companies :

·         Sun Life (India) AMC Investments Inc; Canada

·         Birla Global Finance Limited (since merged with Aditya Birla Nuvo Limited.)

·         Aditva Birla Nuvo Limited [CIN No.: L17199GJ1956PLC001107]

·         Birla Sun Life Insurance Company Limited [CIN No.: U99999MH2000PLC128110]

·         Birla Sun Life Trustee Company Private Limited

·         Aditva Birla Monev Mart Limited

·         ABNL Investment Limited [CIN No.: U65910GJ1994PLC022685

·         Aditya Birla Finance Limited [CIN No.: U65990GJ1991PLC064603]

·         Aditya Birla Money Limited [CIN No.: L65993GJ1995PLC064810]

·         Aditya Birla Financial Shared Services Limited [CIN No.: U65999MH2008PLC183695]

·         Aditya Birla Financial Services Private Limited [CIN No.: U67120GJ2007PTC058890]

·         Aditya Birla Minacs Worldwide Limited [CIN No.: U99999KA1995PLC052040]

·         Aditya Birla Minacs IT Services Limited [CIN No.: U72200KA1976PLC027564]

·         Birla Insurance Advisory and Broking Services Limited

·         IDEA Cellular Limited [CIN No.: L32100GJ1996PLC030976]

·         Aditya Birla Money Mart Limited [CIN No.: U61190GJ1997PLC062406]

·         Aditya Birla Insurance Brokers Limited [CIN No.: U99999GJ2001PLC062239]

 

 

Associates:

·         Sun Life Assurance Company of Canada, Canada

 

 

CAPITAL STRUCTURE

 

As on 24.07.2012

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

20000000

Equity Shares

Rs. 10/- each

Rs. 200.000 millions

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

18000000

Equity Shares

Rs. 10/- each

Rs. 180.000 millions

 

 

 

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

180.000

180.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

2070.693

1225.264

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

2250.693

1405.264

LOAN FUNDS

 

 

 

1] Secured Loans

 

0.000

0.000

2] Unsecured Loans

 

0.000

350.000

TOTAL BORROWING

 

0.000

350.000

DEFERRED TAX LIABILITIES

 

0.000

9.590

 

 

 

 

TOTAL

 

2250.693

1764.854

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

368.285

484.410

Capital work-in-progress

 

2.308

0.343

 

 

 

 

INVESTMENT

 

1252.009

676.895

DEFERREX TAX ASSETS

 

11.809

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

0.000

0.000

 

Sundry Debtors

 
58.245
161.339

 

Cash & Bank Balances

 
58.300
32.168

 

Other Current Assets

 
0.090
38.378

 

Loans & Advances

 
1554.215
1640.248

Total Current Assets

 
1670.850
1872.133

Less : CURRENT LIABILITIES & PROVISIONS

 
 
 

 

Sundry Creditor

 
1008.467

1219.238

 

Other Current Liabilities

 

35.138

39.668

 

Provisions

 
10.963
10.021

Total Current Liabilities

 
1054.568
1268.927

Net Current Assets

 
616.282
603.206

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

2250.693

1764.854

 

Note:

Balance Sheet for the year 2012 is not available only Profit and Loss Account is available


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

3073.508

3658.451

2926.979

 

 

Other Income

419.764

212.578

204.162

 

 

TOTAL                                     (A)

3493.272

3871.029

3131.141

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee benefit expense

810.775

1005.265

807.622

 

 

Other expense

1494.581

1458.645

1408.662

 

 

TOTAL                                     (B)

2305.356

2463.910

2216.285

 

 

 

 

 

Less

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

1187.916

1407.119

914.856

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1.882

5.449

41.707

 

 

 

 

 

 

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

1186.034

1401.670

873.149

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

124.308

140.339

147.089

 

 

 

 

 

 

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

1061.726

1261.330

726.060

 

 

 

 

 

Less

TAX                                                                  (H)

298.627

415.901

241.581

 

 

 

 

 

 

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

763.099

845.430

484.479

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

123.700

123.400

123.442

 

 

 

 

 

 

Earnings/(Loss)  Per Share (Rs.)

42.39

46.97

26.92

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

21.84

21.83

15.47

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

52.11

34.47

24.80

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

NA

61.86

30.81

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

NA

0.47

0.52

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

NA

0.00

0.25

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

NA

1.58

1.47

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

 

 

31.03.2011

31.03.2010

 

(Rs. In Millions)

Sundry Creditors

 

 

 

-          Due to Micro and Small Enterprises

 

--

--

-          Due to other than to Micro, Small and Medium Enterprises

 

1008.467

1219.238

 

 

 

 

Total

 

1008.467

1219.238

 

Note:

ICD Dahej Harbour and Infrastructure Limited Rs. 250.000 millions, ICD Ultratech Cement Limited Rs. 100.000 millions

 

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

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

No

20]

Export / Import details (if applicable)

No

21]

Market information

----

22]

Litigations that the firm / promoter involved in

----

23]

Banking Details

Yes

24]

Banking facility details

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 2nd Floor Ahura Centre, A Wing 96 / A – D, mahakali Caves Road, Andheri (West), Mumbai, Maharashtra, India to the present address w.e.f. 01.06.2009

 

BACKGROUND

 

Birla Sun Life Asset Management Company Limited (“the Company”) was incorporated on September 5, 1994. The Company is a joint venture between the Aditya Birla Group and Sun Life Financial, Inc. The share capital of the Company is equally owned by Aditya Birla Financial Services Pvt Ltd (Wholly owned Subsidiary of Aditya Birla Nuvo Limited) - and Sun Life (India) AMC Investments Inc., which is a wholly owned subsidiary of Sun Life Financial, Inc.

 

The Company is registered with Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations, 1996 and the principal activity is to act as an investment manager to Birla Sun Life Mutual Fund. The Company manages the investment portfolios of Birla Sun Life Mutual Fund, India Advantage Fund Limited, Mauritius, India Excel (Mauritius) Fund. The Company is also registered under the SEBI (Portfolio Managers) Regulations, 1993 and provides portfolio management services and investment advisory services to offshore funds and high net worth investors.

 

REVIEW OF OPERATIONS

 

The Company is the investment manager to Birla Sun Life Mutual Fund (Fund), which, based on the Average Assets under Management (AAUM) as on March 31, 2011, is the 5th largest Mutual Fund in India.

 

The total AAUM of the Fund for the quarter ended March 31, 2011 was Rs. 636960.000 millions. Domestic Assets under Management (monthwise) was at Rs. 542560.000 millions and Offshore Assets under Management (monthwise) was at Rs. 26210.000 millions as on March 31, 2011. The Average Domestic Assets Under Management for March 2011 stood at Rs. 650760.000 millions, an increase of over 4% from Rs. 623430.000 millions in March 31, 2010.

 

The total revenue for the year under review went up by 24% to Rs. 3871.000 millions and the profit before tax increased by 74% to Rs. 1261.500 millions.

 

During the year under review, in order to expand its distribution infrastructure and enhance its presence, the Company increased the number of distributors (including Individual Financial Advisors) to 33,560 (an increase of 4.84% Year-on-Year basis).

 

With a view to bring in more operational efficiencies and reduce cost, the Company during the year carried out an exercise of consolidation of multiple folios. As a result the numbers of investor folios reduced to around 2.428 millions as on March 31, 2011 from over 2.460 millions as on March 31, 2010.

 

UNSECURED LOAN:

                                                                                                                                           (Rs. in Millions)

Particulars

As on 31.03.2012

 

As on 31.03.2011

 

 

 

 

Fixed Deposits

0.000

350.000

 

 

 

TOTAL

0.000

350.000

 

PRESS RELEASE:

 

BIRLA SUN LIFE LAUNCHES BSLI VISION LIFEINCOME

 

MUMBAI: Private insurer Birla Sun Life Insurance today launched its first participating plan, BSLI Vision LifeIncome, offering regular guaranteed payouts, long-term savings and life Insurance benefit.


By way of its guaranteed regular income, bonus accumulation and life insurance benefit, BSLI Vision LifeIncome offers a three-way solution for customer's financial needs, the company said in a release issued here.


"With survival benefits payable every year from the end of the premium paying term till maturity and life insurance benefit, this plan offers a perfect blend of income and financial protection for the customer's family," Birla Sun Life Insurance Managing Director and CEO Jayant Dua said.


BSLI Vision LifeIncome plan is suitable for individuals whose key objective is secured savings, earning a steady income for life and providing their family with comprehensive financial protection, he added.


BSLI is a joint venture between the Aditya Birla Group and Sun Life Financial, one of the leading international financial services organisations from Canada.

 

SUPREME COURT REJECTS PLEA AGAINST ADMINISTRATORS' POWERS ON BIRLA ASSETS

 

Nov 27, 2012

 

NEW DELHI: The Supreme Court has dismissed a petition challenging the appointment of three-member panel of administrators of late Priyamvada Devi Birla's estate and its powers.

 

"We find no merit in the petitions for special leave. These are dismissed," a bench of justices Aftab Alam and Ranjana Prakash Desai said, dismissing the plea filed by a chartered accountant Harsh Vardhan Lodha whose family is engaged in a legal battle over the property since 2004.

 

Lodha had challenged the powers granted by the Calcutta High Court to the three-member committee of administrators for controlling the block of shares held by the late Priyamvada Devi in the entire M P Birla group of companies.

 

Lodha in his petition had contended that the voting rights in respect of the block of shares owned by the late Priyamvada Devi were never exercised in the past and therefore, there was no need to confer the voting rights to the administrators.

 

He had also said the heirs of late R S Lodha had been managing the estate and the companies and therefore strangers should not be allowed to disturb management of the companies.

The high court on August 23 had asked the administrators of late Priyamvada Birla's estate to protect her assets.

It had said the administrators would be entitled to all rights as shareholders in respect of shares which formed part of her estate.

 

The administrators cannot, however, distribute any asset of the estate over which the Birlas and Lodhas are fighting a bitter legal battle since 2004 following the death of Priyamvada Birla, the high court had directed.

 

LENDERS FILE SUITS AGAINST BIRLA POWER FOR PAYMENT DEFAULTS

 

Jan 11, 2013

 

MUMBAI: A number of lenders, including individual depositors and companies, have filed cases against Birla Power Solutions; a maker of portable gensets owned by Yashovardhan Birla, an industrialist known for his flamboyant lifestyle, after the company defaulted on payments. A company official attributed the problem to labour unrest which had crippled production at its factory in Uttarakhand.

 

"We have had some defaults as our company had labour issues for an year at our plant,'' says PVR Murthy, group director, Birla Power. "But, (the) defaults are not beyond control and we will repay it by December as we have reached a settlement with our labourers.'' The defaults were on a range of instruments, including fixed deposits payable to retail investors, as well as inter-corporate deposits and bills of exchange.

 

PD Sekhsaria and Company, a Mumbai based manufacturing company, filed a petition in the Bombay High Court to wind up Birla Power as a cheque drawn on Indian Overseas Bank, issued on August 11, for Rs 1.000 millions bounced. Niranjan Parekh, solicitor at law firm Mansukhlal Hiralal and Company, representing PD Sekhsaria, told ET that he has filed a case under Section 138 of Negotiable Instruments Act as well as a winding-up petition against Birla Power for defaulting on inter-corporate deposits of his client.

 

"'We have Inter Corporate Deposits, or ICDs, worth about Rs 800.000 millions and Rs 400.000 millions of fixed deposits," says Murthy, adding that all are not due at this point of time. ''We have already started paying some depositors and we hope to settle by the end of March whatever is due till then.

 

Also, we are negotiating with the lenders and have plans to clear all the dues by the end of this calendar year." Another company, Wazir Financial Services has filed suits against Birla Power and Birla Cotsyn in Bombay High Court through advocate Siddharth Murarka.

 

That case is in the pre-admission stage, according to the court website. Murarka confirmed cases have been filed against Birla Power and Birla Cotsyn. Some depositors have started receiving their dues. "I have received my dues of Rs 0.620 millions with interest on Thursday," says Hariram Chaudhary, one of the depositors.

 

However Chaudhary, chairman, Forum of Middle Income Investors, which takes up such issues, added that many other depositors are yet to receive their dues. The company had to slash production, both because of labour problems as well as lack of technology to manufacture generators capable of meeting upgraded government environmental guidelines.

 

At one stage the plant's capacity had to be trimmed to 10%, or 20,000 units, from Rs. 0.200 millions every year. "Now that we have developed technology to make better products and have solved the labour issues, we will ramp up capacity and improve cash flows," Murthy said.

 

Birla, a member of the famous family that traces its lineage to GD Birla, has been diluting his stake over the past few years by issuing shares to raise money both in the domestic and global market. Birla, whose holding has fallen to 4.2% from 24% in December 2007, resigned as company chairman on December 28, 2012.

 

 


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.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

INFORMATION DETAILS

 

Information Gathered by :

JML

 

 

Report Prepared by :

NID

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

6

--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

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

-

 

 

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.