|
Report Date : |
26.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
STCI PRIMARY DEALER LIMITED |
|
|
|
|
Registered
Office : |
A/B1-801 (A Wing), 8th Floor, Marathon Innova, Marathon NextGen
Compound, Lower Parel, Mumbai-400013, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
31.10.2006 |
|
|
|
|
Com. Reg. No.: |
11-165306 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.2000.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U67110MH2006PLC165306 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS55878E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAKCS6909H |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Primary Dealer in Government Securities. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10600000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a wholly owned subsidiary of Securities Trading Corporation
of India Finance Limited. It is an established company having a fine track record.
It has incurred loss during 2012. However, net worth appears to be
satisfactory. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short term debt programme) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
31.03.2012 |
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 PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Suresh |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-22-66202200 |
|
Date : |
23.02.2013 |
LOCATIONS
|
Registered Office : |
A/B1-801 (A Wing), 8th Floor, Marathon Innova, Marathon NextGen
Compound, Lower Parel, Mumbai-400013, Maharashtra, India |
|
Tel. No.: |
91-22-66202200/211 |
|
Fax No.: |
91-22-66202288 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Office 1 : |
UGF 12-15, Tolstoy House, Tolstoy Marg, New Delhi-110001, India |
|
Tel. No.: |
91-11-23351091 |
|
Fax No.: |
91-11-23711091 |
|
|
|
|
Branch Office 2 : |
S-403, Brigade Plaza, Anand Rao Circle, Bangalore-560009, Karnataka, India |
|
Tel. No.: |
91-80-22208891 |
|
Fax No.: |
91-80-22208890 |
DIRECTORS
As on 14.06.2012
|
Name : |
Mr. Dipankar Basu |
|
Designation : |
Director |
|
Address : |
602, Glen Eagle ,G D Ambekar Marg, Parel, Mumbai-400012, Maharashtra,
India |
|
Date of Birth/Age : |
10.08.1935 |
|
Date of Appointment : |
31.10.2006 |
|
DIN No.: |
00009653 |
|
|
|
|
Name : |
Mr. Pundarik Sanyal |
|
Designation : |
Director |
|
Address : |
8-C, Shanaz 90, Nepean Sea Road, Mumbai-400006, Maharashtra, India |
|
Date of Birth/Age : |
28.01.1950 |
|
Date of Appointment : |
15.10.2007 |
|
DIN No.: |
01773295 |
|
|
|
|
Name : |
Mr. Ramachandra Vishnupant Joshi |
|
Designation : |
Director |
|
Address : |
11, Priyadarshan Boi Housing Society, Sant Nagar, Pune-411009,
Maharashtra, India |
|
Date of Birth/Age : |
01.09.1972 |
|
Date of Appointment : |
31.10.2006 |
|
DIN No.: |
00180218 |
|
|
|
|
Name : |
Mr. Pradeep Motiram Madhav |
|
Designation : |
Director |
|
Address : |
J-25, RHS, Sector 6, Vashi,
Navi Mumbai-400703, Maharashtra, India |
|
Date of Birth/Age : |
31.07.1957 |
|
Date of Appointment : |
04.05.2007 |
|
DIN No.: |
00267422 |
|
|
|
|
Name : |
Mr. Anant Vishnu Rajwade |
|
Designation : |
Director |
|
Address : |
2, Parshwa Kunj, Malaviya Road, Vile Parle (East), Mumbai-400057,
Maharashtra, India |
|
Date of Birth/Age : |
29.09.1936 |
|
Date of Appointment : |
14.06.2007 |
|
DIN No.: |
00007232 |
|
|
|
|
Name : |
Mr. Sridar Venkatesan |
|
Designation : |
Director |
|
Address : |
303A, H. P. Employees CHS, Plot No NDR-11, Tilak Nagar, Chembur,
Mumbai-400089, Maharashtra, India |
|
Date of Birth/Age : |
28.07.1947 |
|
Date of Appointment : |
02.02.2009 |
|
DIN No.: |
02241339 |
KEY EXECUTIVES
|
Name : |
Mr. Kalpesh Chandrakant Mody |
|
Designation : |
Secretary |
|
Address : |
8/10, Bora Bazaar, Street, 3rd Floor, Room No.27, Fort,
Mumbai-400001, Maharashtra, India |
|
Date of Birth/Age : |
15.08.1982 |
|
Date of Appointment : |
13.09.2011 |
|
PAN No.: |
ANDPM1406C |
|
|
|
|
Name : |
Mr. Suresh |
|
Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 14.06.2012
|
Names of Shareholders |
|
No. of Shares |
|
STCI Finance Limited, India (Erstwhile Securities Trading Corporation
of India Limited) |
|
199999994 |
|
K V Ramakrishnan (Nominee Shareholder of STCI Finance Limited
Erstwhile Securities Trading Corporation of India Limited) |
|
1 |
|
Pradeep Madhav (Nominee Shareholder of STCI Finance Limited Erstwhile
Securities Trading Corporation of India Limited) |
|
1 |
|
Prasanna Patankar (Nominee Shareholder of STCI Finance Limited
Erstwhile Securities Trading Corporation of India Limited) |
|
1 |
|
Pundarik Sanyal (Nominee Shareholder of STCI Finance Limited Erstwhile
Securities Trading Corporation of India Limited) |
|
1 |
|
Kamlesh Rathi (Nominee Shareholder of STCI Finance Limited Erstwhile
Securities Trading Corporation of India Limited) |
|
1 |
|
Suparna Sharma (Nominee Shareholder of STCI Finance Limited Erstwhile
Securities Trading Corporation of India Limited) |
|
1 |
|
Total |
|
200000000 |
Equity Share Break up (Percentage of Total Equity)
As on 14.06.2012
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Primary Dealer in Government Securities. |
|
|
|
|
Terms : |
|
|
Selling : |
Cheque and DD |
|
|
|
|
Purchasing : |
Cheque and DD |
GENERAL INFORMATION
|
Customers : |
Others |
|
|
|
|
No. of Employees : |
Not Divulged |
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Chandabhoy And Jassoobhoy Chartered Accountant |
|
Address : |
208 Phoenix House A Wing 462 Senapati Bapat Marg, Lower Parel,
Mumbai-400013, Maharashtra, India |
|
PAN No.: |
AAAFC5274C |
|
|
|
|
Holding Company : |
STCI Finance Limited (erstwhile Securities Trading Corporation of
India Limited) |
|
|
|
|
Fellow Subsidiaries : |
STCI Commodities Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs.2000.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2000.000 |
2000.000 |
2000.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
654.346 |
718.911 |
661.826 |
|
|
4] (Accumulated Losses) |
0.000 |
0000 |
0.000 |
|
|
NETWORTH |
2654.346 |
2718.911 |
2661.826 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13930.563 |
13661.035 |
2327.821 |
|
|
2] Unsecured Loans |
5286.852 |
4288.245 |
7414.202 |
|
|
TOTAL BORROWING |
19217.415 |
17949.280 |
9742.023 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21871.761 |
20668.191 |
12403.849 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
208.930 |
227.108 |
18.389 |
|
|
Capital work-in-progress |
0.00 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
16367.766 |
18061.534 |
200.390 |
|
|
DEFERREX TAX ASSETS |
28.729 |
2.321 |
9.385 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
11538.622 |
|
|
Sundry Debtors |
0.061
|
0.455
|
0.925 |
|
|
Cash & Bank Balances |
3543.719
|
2102.384
|
4.469 |
|
|
Other Current Assets |
210.177
|
286.121
|
125.976 |
|
|
Loans & Advances |
1863.300
|
721.894
|
1269.320 |
|
Total
Current Assets |
5617.257
|
3110.854
|
12939.312 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
0.290
|
3.888
|
0.000 |
|
|
Other Current Liabilities |
48.935
|
35.892
|
62.508 |
|
|
Provisions |
301.696
|
693.846
|
701.119 |
|
Total
Current Liabilities |
350.921
|
733.626
|
763.627 |
|
|
Net Current Assets |
5266.336
|
2377.228
|
12175.685 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21871.761 |
20668.191 |
12403.849 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
1603.178 |
|
|
|
Other Income |
|
|
3.515 |
|
|
|
TOTAL (A) |
|
|
1606.693 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
|
|
32.587 |
|
|
|
Managerial remuneration |
|
|
4.707 |
|
|
|
Payment to Auditors |
|
|
0.659 |
|
|
|
Insurance expenses |
|
|
1.656 |
|
|
|
Power and fuel |
|
|
1.244 |
|
|
|
Other expenses |
|
|
34.107 |
|
|
|
Exceptional items |
|
|
0.005 |
|
|
|
Extraordinary items |
|
|
0.392 |
|
|
|
TOTAL (B) |
|
|
75.357 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (A-B) |
|
|
1531.336 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
|
1600.522 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
(69.186) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
18.183 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
|
|
(87.369) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
|
22.805 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX (G-H) (I) |
|
|
(64.564) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
|
412.657 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
|
0.000 |
|
|
|
General Reserve |
|
|
0.000 |
|
|
|
Interim Dividend |
|
|
0.000 |
|
|
|
Tax on Interim Dividend |
|
|
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
|
|
348.093 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
(0.32) |
|
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Trading Profit/ (Loss) on Securities |
|
(47.721) |
(85.297) |
|
|
|
Interest/ Discount Income |
|
1289.470 |
792.843 |
|
|
|
Dividend Income |
|
2.224 |
0.533 |
|
|
|
Underwriting & Other Income |
|
42.007 |
108.591 |
|
|
|
TOTAL (A) |
|
1285.980 |
816.670 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Expenses on REPO |
|
212.207 |
158.875 |
|
|
|
Other Financial Payments |
|
48.338 |
60.701 |
|
|
|
Personal Cost |
|
41.529 |
40.692 |
|
|
|
Administrative Expenses |
|
50.735 |
51.348 |
|
|
|
TOTAL (B) |
|
352.809 |
311.616 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) |
|
933.171 |
505.054 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
837.283 |
293.906 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
95.888 |
211.148 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
14.948 |
8.802 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
|
80.940 |
202.346 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
27.388 |
74.050 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
|
53.552 |
128.296 |
|
|
|
|
|
|
|
|
|
Add |
Write back of
Provision for FY2007-08 |
|
3.532 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
366.283 |
263.646 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
10.710 |
25.659 |
|
|
|
General Reserve |
|
0.000 |
0.000 |
|
|
|
Interim Dividend |
|
0.000 |
0.000 |
|
|
|
Tax on Interim Dividend |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
412.657 |
366.283 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
0.27 |
0.64 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(4.02)
|
4.16
|
15.71 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.45)
|
(169.61)
|
(237.22) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.50
|
2.42
|
1.56 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.03)
|
0.03
|
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
7.24
|
6.60
|
3.66 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
16.00
|
4.24
|
16.94 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditor |
0.290
|
3.888
|
0.000 |
|
|
|
|
|
|
Total |
0.290
|
3.888
|
0.000 |
|
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
NOTE
The registered office of the has been shifted from Marathon NextGen, Marathon Emperor, Opposite Peninsula Corporate Park, Lower Parel (West), Mumbai-400013, Maharashtra, India to present address w.e.f. 23.08.2010
FINANCIAL RESULTS
The Directors report that the Company made a Net Loss of Rs.64.600 millions for the financial year 2011-2012 as against a Net Profit of Rs.57.100 millions in the previous year i.e. 2010-2012.
OPERATIONS REVIEW
Financial Performance
The performance of the Company suffered during the year due to the extremely tight liquidity conditions and very high inflation leading to frequent rate hikes by the Central Bank. The Company’s performance was particularly impacted on account of the sharp and volatile movements in the Interest rate swap market resulting in the OIS curve trading at a substantial discount to the overnight NSE MIBOR fixings. This resulted in the company having to cut its positions. The losses in the IRS market required the company to turn defensive to avoid any further trading losses. The Company ended the financial year with a net loss of Rs.6.46 Crores.
Performance of the
Company as Primary Dealer in Government Securities
The performance of the Company as a Primary Dealer during the year is set out in Statement-1 annexed to the Report. As against the stipulated minimum success ratio of 40%, the Company achieved success ratio in respect of bids tendered for primary issues of Treasury Bills at 40.52%. The Company’s total turnover ratio was 570 times in Government dated securities and 150 times in Treasury Bills as against the stipulated minimum ratio of 5 times and 10 times respectively under the RBI’s guidelines for Primary Dealers in Government securities. On outright basis, the turnover ratio was 393 times in Government dated securities and 29 times in Treasury Bills as against the prescribed minimum of 3 times and 6 times respectively.
OUTLOOK FOR THE
CURRENT YEAR
The year 2012-2013 will continue to be an equally challenging year. The domestic macroeconomic landscape continues to face major headwinds in the nature of slowing growth, sticky inflation, weak currency and burgeoning fiscal and current account deficits. This would make the task of monetary, exchange rate, inflation and liquidity management even more difficult for the Reserve Bank of India.
On the external front, slowing US economy, fears of recession in EU countries and the ongoing sovereign debt crises could result in further quantitative easing by central banks. This could potentially result in higher commodity prices including crude oil which in turn will further aggravate the higher fiscal deficit arising out of incomplete pass through of oil products in India. Also, weakness in economies abroad could dampen India’s exports.
Given this outlook, RBI is expected to ease policy rates by around 50-75 bps in the fiscal year. The bond yields would track rate cuts in the first quarter but are likely to remain under pressure on the back of huge bond supplies, tight liquidity and sticky inflation. It is expected that yields will be supported by bond buying by RBI and opening up of FII debt limits in government securities later in the year.
The company will need to overcome this challenging environment by effectively positioning itself between auctions and OMO’s and mitigate devolvement risks through its strong sales and distribution capabilities. The company has a robust risk management framework to identify, measure, monitor and control various risks associated with the fixed income business enabling it to undertake optimal positions within the defined risk
parameters.
The Company expects to end the current year with a profit.
FIXED ASSETS:
·
Air Conditioner
·
Buildings
·
Office Equipment
·
Electrical Installation
·
Furniture and Fixture
·
Computer- Software
·
Computers
·
Vehicles-Motor Cars
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.54.04 |
|
|
1 |
Rs. 81.80 |
|
Euro |
1 |
Rs. 71.41 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
54 |
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.