MIRA
INFORM REPORT
|
Report Date : |
05.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA BIRLA FINANCE LIMITED (w.e.f. 21.12.2009) |
|
|
|
|
Formerly Known
As : |
BIRLA GLOBAL FINANCE COMPANY LIMITED (w.e.f. 21.07.2006) BIRLA GLOBAL ASSETS FINANCE COMPANY LIMITED (14.03.2001) BGFL FINANCE AND INVESTMENTS
LIMITED |
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Registered
Office : |
Indian Rayon Compound, Veraval – 362266, Gujarat |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
28.08.1991 |
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Com. Reg. No.: |
04-064603 |
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Capital
Investment / Paid-up Capital : |
Rs.4809.648 millions |
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|
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CIN No.: [Company Identification No.] |
U65990GJ1991PLC064603 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject offers specialized solutions in areas of Capital Markets,
Corporate Finance, Mortgages (LAP, LRD) and Infrastructure Finance. |
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No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 25000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is one of the India’s leading non-banking financial companies.
It is registered with RBI as systemically important non deposit taking NBFC.
It is a 100% subsidiary of ‘Aditya Birla Nuvo Limited’. It is a well-established and reputed company having a fine track
record. It has recorded a healthy growth in its income earned from operations
and profit during 2012. The financial position of the company appears to be good and healthy.
Directors are reported as well-experienced and knowledgeable. Trade relations are reported as trustworthy. Business is active.
Payment terms are reported as 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 |
CARE |
|
Rating |
Subordinate Debt = AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
05.10.2012 |
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 DECLINED BY
|
Name : |
Mr. Rajesh Maheshwari |
|
Designation : |
Accounts Manager |
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Contact No.: |
91-22-39963644/ 45 |
|
Date : |
04.01.2013 |
LOCATIONS
|
Registered Office : |
Indian Rayon Compound, Veraval – 362266, Gujarat, India |
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Tel. No.: |
91-22-43567225 |
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Fax No.: |
91-22-43567266 |
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E-Mail : |
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Website : |
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Corporate Office : |
One Indiabulls Center, Tower 1, 18th Floor, Jupiter Mill
Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013,
Maharashtra, India |
|
Tel. No.: |
91-22-43567000 |
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Fax No.: |
91-22-43567444 |
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Branch Office : |
Apeejay, 2nd Floor, Fort, |
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Tel. No.: |
91-22-22880660 |
DIRECTORS
(AS ON 02.08.2012)
|
Name : |
Mr. Bishwanath Mangilal Puranmalka |
|
Designation : |
Director |
|
Address : |
Antariksha
Apartment, Flat No. 182,. 19th Floor, 95/96 Kaka Saheb Gadgil Marg,
Prabhadevi., Mumbai – 400025, |
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Date of Birth/Age : |
02.11.1935 |
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Date of Appointment : |
31.03.1999 |
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DIN No.: |
00007432 |
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Name : |
Mr. Darius Jehangir Kakalia |
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Designation : |
Director |
|
Address : |
Rebello House, ‘B’
Wing, 9th Floor, Flat No. 54, 132, |
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Date of Birth/Age : |
19.12.1948 |
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Date of Appointment : |
15.03.2001 |
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DIN No.: |
00029159 |
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|
|
Name : |
Mr. Ajay Srinivasan |
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Designation : |
Director |
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Address : |
91/101, Narain
Terraces, 7th and 8th Floor, Union Park Road, Pali Hill, Bandra (West), Mumbai
- 400050, Maharashtra, India |
|
Date of Birth/Age : |
02.11.1963 |
|
Date of Appointment : |
31.07.2007 |
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DIN No.: |
00121181 |
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|
Name : |
Mr. Jitender Balakrishnan |
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Designation : |
Director |
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Address : |
208-Tower-2, Casa Grande,
Senapati Bapat Marg, Lower Parel, Mumbai - 400013, |
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Date of Birth/Age : |
08.05.1949 |
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Date of Appointment : |
20.07.2010 |
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DIN No.: |
00028320 |
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|
|
Name : |
Mr. Ashwani Kumar Puri |
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Designation : |
Director |
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Address : |
28/2 Friends
Colony West, |
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Date of Birth/Age : |
16.11.1956 |
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Date of Appointment : |
13.09.2010 |
|
DIN No.: |
00160662 |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Maheshwari |
|
Designation : |
Accounts Manager |
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|
|
|
Name : |
Mr. Muthiah Ganapathy |
|
Designation : |
Secretary |
|
Address : |
2, Roopashree CHS,
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Date of Birth/Age : |
17.11.1971 |
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Date of Appointment : |
11.03.2008 |
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PAN : |
AGUPG3565E |
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|
Name : |
Mr. Krishna Gopal Ajmera |
|
Designation : |
Manager |
|
Address : |
13, Shivtirth
Apartment, |
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Date of Birth/Age : |
05.01.1953 |
|
Date of Appointment : |
31.07.2007 |
|
PAN : |
AAGPA5860L |
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|
|
|
Name : |
Mr. Rakesh Singh |
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Designation : |
Chief Executive Officer |
|
Date of Birth/Age : |
46 years |
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Qualification : |
MBA |
|
Experience : |
19 years |
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|
|
|
Name : |
Mr. Tushar Shah |
|
Designation : |
Chief Executive Officer – Infrastructure Finance |
|
Date of Birth/Age : |
47 years |
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Qualification : |
ACA, LLB |
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Experience : |
16 years |
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|
Name : |
Mr. K. G. Ajmera |
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Designation : |
Chief Financial Officer |
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Date of Birth/Age : |
59 years |
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Qualification : |
FCA, CISA |
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Experience : |
35 years |
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|
|
|
Name : |
Mr. Sanjay Miranka |
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Designation : |
Senior Vice President |
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Date of Birth/Age : |
41 years |
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Qualification : |
CA, CS |
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Experience : |
15 years |
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|
Name : |
Mr. Navin Gupta |
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Designation : |
Senior Vice President |
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Date of Birth/Age : |
41 years |
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Qualification : |
MBA |
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Experience : |
13 years |
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|
|
Name : |
Mr. Sekhar Mosur |
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Designation : |
Senior Vice President |
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Date of Birth/Age : |
52 years |
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Qualification : |
CAIIB |
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Experience : |
16 years |
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|
Name : |
Mr. Maneesh Yadav |
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Designation : |
Senior Vice President |
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|
Name : |
Mr. Prosenjit Aich |
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Designation : |
Senior Vice President |
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|
Name : |
Mr. Anil Phalod |
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Designation : |
Vice President |
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|
Name : |
Ms. Sujatha Sudheendra |
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Designation : |
Assistant Vice President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 02.08.2012)
|
Names of Shareholders |
|
No. of Shares
[Equity] |
|
|
|
|
|
Aditya Birla Financial Services Private Limited (ABFSPL), |
|
105964781 |
|
Aditya Birla Investment Limited, |
|
1 |
|
ABFSPL jointly with Aditya Birla Investment Limited, |
|
10 |
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ABFSPL jointly with Mr. Devendra Bhandari |
|
10 |
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ABFSPL jointly with Mr. Sudhir Maheshwari |
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10 |
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ABFSPL jointly with Mr. Anupam Gupta |
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10 |
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ABFSPL jointly with Mr. Manoj Shah |
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10 |
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ABFSPL jointly with Mr. S S Pareekh |
|
10 |
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|
|
|
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Total |
|
105964842 |
|
(0.01%
Compulsorily Convertible Cumulative Preference Shares) |
||
|
Names of Shareholders |
|
No. of Shares
[Preference] |
|
|
|
|
|
Aditya Birla
Financial Services Private
Limited (ABFSPL), India |
|
25000000 |
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Aditya Birla
Financial Services Private
Limited (ABFSPL), India |
|
50000000 |
|
Madura Garments
Lifestyle Retail Company Limited, |
|
300000000 |
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Aditya Birla
Financial Services Private
Limited India |
|
100000000 |
|
|
|
|
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Total |
|
475000000 |
(AS ON 30.09.2012)
Equity Shares Break – up
|
Category |
|
Percentage |
|
|
|
|
|
Bodies corporate |
|
100.00 |
|
|
|
|
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Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject offers specialized solutions in areas of Capital Markets,
Corporate Finance, Mortgages (LAP, LRD) and Infrastructure Finance. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
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Bankers : |
·
Indusind Bank Limited 2401 Gen Thimmayya Road, Contonment, Pune - 411001, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
· IL and FS Trust Company Limited Il and Fs Financial Centre, Plot No C22 G Block Bandra,
Kurla Complex Bandra East, Mumbai - 400051, Maharashtra, India |
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|
|
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Auditors : |
|
|
Name : |
S.V. Ghatalia and Associates Chartered Accountants |
|
Address : |
6TH Floor, |
|
PAN No.: |
AACFS6921Q |
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|
|
|
Holding Company : |
Aditya Birla Financial Services Private Limited (ABFSPL) CIN : U67120GJ2007PTC058890 |
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|
Ultimate Holding
Company: |
Aditya Birla Nuvo Limited |
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|
|
|
Subsidiary Companies : |
Aditya Birla Securities Private Limited CIN : U67190MH2008PTC179283 |
|
|
|
|
Subsidiaries/
Fellow Subsidiaries : |
· Aditya Birla Customer Services Private Limited (ABCSPL) · Aditya Birla Trustee Company Private Limited (ABTCPL) · Aditya Birla Financial Shared Services Limited (ABFSSL) · Aditya Birla Money Limited (ABML) · Aditya Birla Commodities Broking Limited (ABCBL) · Aditya Birla Insurance Brokers Limited (ABIBL) · Aditya Birla Securities Private Limited (ABSPL) · Aditya Birla Money Mart Limited (ABMML) · Aditya Birla Money Insurance Advisory Services Limited (ABMIASL) · Birla Sun Life Insurance Company Limited (BSLICL) · ABNL Investment Limited (ABNLIL) · Madura Garments Lifestyle Retail Company Limited (MGLRCL) · Aditya Birla Minacs Worldwide Limited (Aditya Birla Minacs IT Services Limited merged into Aditya Birla Minacs Worldwide Limited (ABMWL) |
CAPITAL STRUCTURE
AS ON 02.08.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000,000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 millions |
|
500,000,000 |
Preference Shares |
Rs.10/- each |
Rs.5000.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.10000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
105,964,842 |
Equity Shares |
Rs.10/- each |
Rs.1059.648 millions |
|
475,000,000 |
Preference Shares |
Rs.10/- each |
Rs.4750.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.5809.648
millions |
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000,000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 millions |
|
500,000,000 |
Preference Shares |
Rs.10/- each |
Rs.5000.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.10000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
105,964,842 |
Equity Shares |
Rs.10/- each |
Rs.1059.648 millions |
|
50,000,000 |
0.01% Compulsory Convertible Cumulative Preference Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
25,000,000 |
0.01% Compulsory Convertible Cumulative Preference Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
300,000,000 |
0.01% Compulsory Convertible Cumulative Preference Share |
Rs.10/- each |
Rs.3000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.4809.648
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 |
4809.648 |
4059.648 |
1809.648 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1473.856 |
911.907 |
539.870 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6283.504 |
4971.555 |
2349.518 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7951.829 |
530.954 |
450.000 |
|
|
2] Unsecured Loans |
22065.978 |
14847.919 |
7421.548 |
|
|
TOTAL BORROWING |
30017.807 |
15378.873 |
7871.548 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
36301.311 |
20350.428 |
10221.066 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
62.929 |
35.494 |
37.402 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
2110.835 |
1848.149 |
300.075 |
|
|
DEFERREX TAX ASSETS |
71.877 |
23.122 |
4.204 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1608.139
|
1645.978
|
969.198 |
|
|
Sundry Debtors |
8.064
|
0.487
|
1.660 |
|
|
Cash & Bank Balances |
179.241
|
57.135
|
105.360 |
|
|
Other Current Assets |
233.726
|
156.129 |
0.000 |
|
|
Loans & Advances |
33198.456
|
16824.771
|
8978.742 |
|
Total
Current Assets |
35227.626
|
18684.500
|
10054.960 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
130.690
|
72.568 |
70.080 |
|
|
Other Current Liabilities |
825.536
|
93.023
|
22.478 |
|
|
Provisions |
215.730
|
75.246
|
83.017 |
|
Total
Current Liabilities |
1171.956
|
240.837
|
175.575 |
|
|
Net Current Assets |
34055.670
|
18443.663
|
9879.385 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
36301.311 |
20350.428 |
10221.066 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
3501.668 |
1972.280 |
1418.768 |
|
|
|
Other Income |
3.719 |
6.471 |
7.338 |
|
|
|
TOTAL (A) |
3505.387 |
1978.751 |
1426.106 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefit Expenses |
293.085 |
175.629 |
|
|
|
|
Other Expenses |
209.206 |
189.621 |
|
|
|
|
Bad debts and Provision for Non-Performing Assets( Net) |
101.579 |
(3.912) |
181.740 |
|
|
|
General Provision on Standard Assets |
39.633 |
50.439 |
|
|
|
|
TOTAL (B) |
643.503 |
411.777 |
181.740 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2861.884 |
1566.974 |
1244.366 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2001.987 |
994.249 |
773.069 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
859.897 |
572.725 |
471.297 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
23.688 |
19.128 |
14.551 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
836.209 |
553.597 |
456.746 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
273.909 |
181.407 |
156.541 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
562.300 |
372.190 |
300.205 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
372.869 |
196.549 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Special Reserve |
NA |
75.000 |
61.000 |
|
|
|
Dividend on Compulsorily Convertible Preference Shares |
NA |
0.131 |
53.750 |
|
|
|
Interim Dividend on Equity Shares |
NA |
- |
- |
|
|
|
Corporate Dividend Tax |
NA |
0.021 |
9.135 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
669.907 |
372.869 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.30 |
3.51 |
2.24 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
16.04
|
18.81
|
21.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
23.88
|
28.07 |
32.19 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.37
|
2.96
|
4.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11
|
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.96
|
3.14
|
3.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
30.06
|
77.58
|
57.27 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 (Rs. In Millions) |
31.03.2011 (Rs. In Millions) |
|
|
|
|
|
Sundry Creditors |
130.690
|
72.568 |
|
|
|
|
|
Total |
130.690
|
72.568 |
|
Particulars |
31.03.2010 (Rs. In Millions) |
|
|
|
|
Sundry Creditors |
|
|
-Due to Micro and Small Enterprises |
- |
|
-Other than Micro and Small Enterprises |
70.080 |
|
|
|
|
Total |
70.080 |
|
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 |
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 |
Yes |
BUSINESS PERFORMANCE
KEY HIGHLIGHTS
During the year,
the Total Income stood at Rs 3505.300 Millions as against Rs.1978.700 Millions
in the previous year, a jump of 77.15%. Correspondingly, the Total Expenses
increased to Rs 2669.100 Millions from Rs.1425.100 Millions in the previous
year mainly due to induction of senior management personnel, increase in
travelling and conveyance, legal and professional charges, rating and
certification expenses etc.
BUSINESS
Indian equity
markets had a down trend given the sharp currency depreciation, undeterred
inflation, high interest rates, change of key governments at state level and subsequent
changes in political equations. Despite these adverse conditions, Capital
Market Group (CMG) registered a healthy growth of 30% on Y-O-Y basis as against
10% fall in Sensex
during the year.
The Corporate
Finance (CFG) business showed a strong 95% growth during the year with its
disbursals aggregating to Rs.27040.000 Millions as against Rs.13850.000
Millions in the previous year. The business
largely focused on penetrating the Aditya Birla Group’s ecosystem and
lending to SME’s and its corporate sector.
During the year,
the Company also ventured into infrastructure financing and formed
Infrastructure Projects and Structure Finance Group (Infra Group). The Infra
Group offers a variety of loan products ranging from Project loans, corporate
loans, Working Capital finance, Bridge loans and Structured Finance to support
infrastructure companies in Power, Telecom, Roads, Ports, Airports as well as
allied and social infrastructure sectors like Logistics, Mining, Petroleum,
Cement, Steel, Education, Healthcare etc. In the very first year of its
operations, the infra Group disbursed Rs.7250.000 Millions and had a closing
asset book of around Rs.6650.000 Millions. The portfolio has been well
diversified with coverage in power, roads, ports as well as allied infrastructure
sectors.
SHARE CAPITAL/ FINANCES
CAPITAL
The Company had a
capital infusion of Rs.750.000 Millions by way of a capital call of Rs.2.50 per
share on 300.000 Millions Compulsorily Convertible Cumulative Preference Shares
of Rs.10/- each which were earlier partly paid. Consequent to the capital
infusion, the issued, subscribed and paid up share capital of the Company was
Rs.4809.600 Millions as on March 31, 2012.
TREASURY
The company
primarily sources funds through bank borrowings, Non-convertible Debentures
(NCD), Sub-ordinate debt and Commercial Paper (CP). The total bank borrowings
as on March 31, 2012 were Rs.2160.000 Millions and outstanding CP’s were Rs.
21220.000 Millions. During the year, the company was sanctioned long-term loan
from Banks aggregating Rs 4500.000 Millions which included a term loan of
Rs.1000.000 Millions for a tenor 5 years and 3 months.
During the year,
the Company also made a private placement of Non Convertible Debentures
aggregating to Rs 1470.000 Millions and issued Tier II NCDs aggregating to Rs
300.000 Millions, which were listed with National Stock Exchange. This has
strengthened the capital adequacy and the Company was able to maintain Asset
Liability Management ratio, as mandated by RBI.
MANAGEMENT DISCUSSION
AND ANALYSIS
INTRODUCTION
The Company is one
of India’s non-banking financial companies (NBFC). Incorporated in 1991, the
Company is one of the largest players in security based lending and IPO
Financing in the country. Company offers specialized solutions in areas of
Capital Market and Corporate Finance and has recently added Infra Financing and
Mortgages to its range. Headquartered in Mumbai, the Company has a wide network
through its branches and associates across the country.
The Capital Market
Group (CMG) gives its customers an attractive opportunity to meet their
liquidity requirements and also provide for investments in the capital market.
The Corporate Finance Group (CFG) deals with SMEs and other corporate clients
and aims to provide innovative and customized solutions to meet their short
term working capital and other funding needs.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company is a
Non Banking Financial Company. Non Banking Financial Companies (NBFC) have
rapidly emerged as an important segment of Indian Financial System and is being
recognised as complementary to banks. In recent times, NBFC’s have emerged as
lenders to both companies and individuals and are able to offer better services
and products to their customers mainly because of its strength viz. local
knowledge, credit appraisal skill, well trained collection machinery, close
monitoring of borrowers and personalized attention to each client. NBFC’s are
playing significant role in financing the road transport and infrastructure and
have reached the gross root level through Micro finance.
With significant
development in infrastructure and micro finance the Reserve Bank of India (RBI)
came out with new categories of Company in NBFCs in Non deposit accepting category
viz. NBFC – Micro Finance Institution and NBFC -Infrastructure Finance.
BUSINESS OVERVIEW AND PERFORMANCE
The overall
performance of the Company was satisfactory considering the market scenario.
The total portfolio of the Company grew significantly by 81% to Rs.3671.000
Millions from Rs.20260.000 Millions in the previous year mainly because of
increase in the book size of CFG and the addition of new lines of business.
Infrastructure
Projects and Structure Finance Group (Infrastructure), having diversified
coverage in power, roads, ports and other allied infrastructure sectors, closed
with the asset book of around Rs 665.000 Millions.
During the last
quarter of FY 12, the Company commenced new line of business viz. Loan Against
Property/ Lease Rentals Discounting (Mortgages) which closed with loan
disbursals aggregating to Rs.670.000 Millions.
OUTLOOK
The Centre for
Monitoring Indian Economy (CMIE) has said that it maintains its economic growth
forecast for the FY 13 at 7.6% against the estimated 6.8% in the previous
financial year mainly because the Union Budget 2012-13 failed to provide thrust
to the slackening pace of economic growth.
The outlook for
the major Indian NBFCs is stable in FY 13, according to Fitch Ratings, although
the rating company remains cautious on the medium-term outlook of the sector in
view of challenges in raising cost-effective funding that may squeeze margins,
impair growth prospects and increase the cost of raising fresh capital.
FORM 8
|
This form is for |
Creation of
charge |
|
Charge
identification number of the modified |
|
|
Corporate
identity number of the company |
U65990GJ1991PLC064603 |
|
Name of the
company |
ADITYA BIRLA
FINANCE LIMITED |
|
Address of the registered
office or of the principal place of
business in |
Indian Rayon
Compound, Veraval – 362266, Gujarat, India |
|
Type of charge |
Others: All receivables
as per agreement |
|
Particular of
charge holder |
IL & FS Trust
Company Limited IL & FS
Financial Centre, Plot No C22, G Block, Bandra Kurla Complex, Bandra (East),
Mumbai – 400051, Maharashtra, India |
|
Nature of
description of the instrument creating or modifying the charge |
Security trustee
agreement cum deed of hypothecation |
|
Date of
instrument Creating the charge |
25/02/2011 |
|
Amount secured by
the charge |
Rs.40000.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest As agreed between
the company and the respective lenders Terms of
Repayment As agreed between
the company and the respective lenders Margin As agreed between
the company and the respective lenders Extent and
Operation of the charge The Borrower
declares, undertakes, represents and warrants to the Security Trustee and hypothecates,
assures and charges in favour of the Security Trustee as security, upon trust
and for the benefit of the lenders all the receivables of the Borrower
arising out of its business, from senior and junior pass through
certificates, all other book debts and the current assets as may be
identified by the Borrower or the Trustee Others The currents
assets as may be identified by the Borrower from time to time and accepted by
the Security Trustee. |
|
Short particulars
of the property charged |
All receivables
of the borrower arising out of the business All other book
debts, receivables from senior and junior pass through certificates in which
the borrower has invested such other current assets as may be identified by
the borrower from time to time and accepted by the security trustee but
excluding any specific receivables in respect of which lien (undertaking to
create charge) or a mortgage or charge or other encumbrance has been created
to secure borrowings of any nature including in case of the issues of
debentures, inter-corporate deposits term loans, working capital demand
loans, cash credit and other fund based and non-fund based credit
facility/(ies) |
FIXED ASSETS:
· Leasehold Improvements
· Building
· Computer
· Software
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Vehicles
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.54.85 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
64 |
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.