MIRA
INFORM REPORT
|
Report Date : |
18.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
MUTHOOT FINANCE LIMITED |
|
|
|
|
Formerly Known
As : |
THE MUTHOOT FINANCE PRIVATE LIMITED MUTHOOT ENTERPRISES PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
2nd Floor, Muthoot Chambers, Opposite Saritha Theatre
Complex, Ernakulam-682018, Kerala |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
14.03.1997 |
|
|
|
|
Com. Reg. No.: |
09-011300 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.3717.128 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L65910KL1997PLC011300 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHNT00811G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCT0343B |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Providing Financial Services and Power Generation. |
|
|
|
|
No. of Employees
: |
25351 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (61) |
|
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 117000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exists |
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|
|
|
Comments : |
Subject is an established company having a good track record. 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.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Non convertible Debentures: AA- |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
07.06.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Debt: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
07.06.2013 |
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.
LOCATIONS
|
Registered/ Head Office : |
2nd Floor, Muthoot Chambers, Opposite Saritha Theatre
Complex, Ernakulam-682018, Kerala, India |
|
Tel. No.: |
91-484-2396478/ 2394712 |
|
Fax No.: |
91-484-2396506 |
|
E-Mail : |
|
|
Website : |
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|
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Corporate Office : |
The Muthoot Group, Muthoot Towers - Alaknanda, New Delhi – 110019,
India |
|
Tel. No.: |
91-11-46697777 |
|
Fax No.: |
91-11-29841832 |
|
|
|
|
Overseas Office : |
Located at: · United Arab Emirates · United Kingdom · USA |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. M. G. George Muthoot |
|
Designation : |
Chairman |
|
Address : |
Muthoot House G-74, East of Kailash, New Delhi-110063, |
|
Date of Birth/Age : |
02.11.1949 |
|
Qualification : |
B. Tech |
|
Experience : |
38 years |
|
|
|
|
Name : |
Mr. George Alexander Muthoot |
|
Designation : |
Managing Director |
|
Address : |
Muthoot House G-343, Panampilly Nagar, Ernakulam-682036, Kerala |
|
Date of Birth/Age : |
16.09.1955 |
|
Qualification : |
FCA |
|
Experience : |
32 years |
|
|
|
|
Name : |
Mr. George Thomas Muthoot |
|
Designation : |
Whole-time Director |
|
Address : |
Muthoot House H No. 9/324 A, Baker-686001, Kerala |
|
Date of Birth/Age : |
25.12.1950 |
|
Qualification : |
Under Graduate |
|
Experience : |
37 years |
|
|
|
|
Name : |
Mr. George Jacob Muthoot |
|
Designation : |
Whole-time Director |
|
Address : |
T C 4/2515, Muthoot House, Pattom. P. O-695014, Kerala |
|
Date of Birth/Age : |
21.09.1952 |
|
Qualification : |
B. Tech |
|
Experience : |
35 years |
|
|
|
|
Name : |
Mr. George Joseph |
|
Designation : |
Non –Executive Independent Director |
|
Date of Birth/Age : |
26.04.1949 |
|
Qualification : |
B.Com; CAIIB |
|
Date of Appointment : |
21.07.2010 |
|
Profile: |
George Joseph is
a first rank holder commerce graduate from Kerala University. He is also a
certified associate of the Indian Institute of Banking and Finance. He is the
former chairman and managing director of Syndicate Bank. He joined Syndicate
Bank as an executive director on April 01, 2006 and was elevated to the post
of Chairman and Managing Director on August 02, 2008 and subsequently retired
from office on April 30, 2009. Before joining the Syndicate Bank, George
Joseph was employed with Canara Bank for over 36 years. |
|
|
|
|
Name : |
Mr. P. George Varghese |
|
Designation : |
Non –Executive Independent Director |
|
Address : |
A 52, |
|
Date of Birth/Age : |
18.04.1948 |
|
|
|
|
Name : |
Mr. John K. Paul |
|
Designation : |
Non –Executive Independent Director |
|
Date of Birth/Age : |
28.03.1953 |
|
Qualification : |
B. Tech |
|
Date of Appointment : |
21.07.2010 |
|
Profile: |
John K Paul is a
graduate in engineering from the Regional Engineering College, Kozhikode and
a businessman by profession. He is a director of Popular Vehicles and
Services Limited, leading and well reputed dealers of automobiles and
accessories from Kerala. He is also a trustee of the Kuttukaran Institute for
HRD, a institution offering professional courses. He was the president of the
Kerala Chamber of Commerce and Industry from 2005 to 2006. He was also the
president of both the Kerala Hockey Association from 2005 onwards and the
Ernakulam District Hockey Association from 2004 onwards. |
|
|
|
|
Name : |
Mr. K John Mathew |
|
Designation : |
Non –Executive Independent Director |
|
Address : |
|
|
Date of Birth/Age : |
09.05.1932 |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh A. |
|
Designation : |
Company Secretary |
|
Address : |
Perunninakulath, Warriem Irimpanam Ernakulam, Kochi-682309, Ernakulam |
|
Date of Birth/Age : |
30.05.1986 |
|
Date of Appointment : |
01.10.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
297797872 |
80.12 |
|
|
297797872 |
80.12 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
297797872 |
80.12 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
471497 |
0.13 |
|
|
33971 |
0.01 |
|
|
38835850 |
10.45 |
|
|
39341318 |
10.58 |
|
|
|
|
|
|
|
|
|
|
3852205 |
1.04 |
|
|
|
|
|
|
5278047 |
1.42 |
|
|
2483019 |
0.67 |
|
|
|
|
|
|
22960307 |
6.18 |
|
|
465949 |
0.13 |
|
|
22494358 |
6.05 |
|
|
34573578 |
9.30 |
|
|
|
|
|
Total Public
shareholding (B) |
73914896 |
19.88 |
|
|
|
|
|
Total (A)+(B) |
371712768 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total
(A)+(B)+(C) |
371712768 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Providing Financial Services and Power Generation. |
GENERAL INFORMATION
|
No. of Employees : |
25351 (Approximately) |
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Bankers : |
Reserve Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Rangamani and Company Chartered Accountant |
|
|
|
|
Associates : |
1. Muthoot Vehicle and Assets Finance Limited 2. Muthoot Leisure And Hospitality Services Private Limited 3. MGM Muthoot Medical Centre Private Limited 4. Muthoot Marketing Services Private Limited 5. Muthoot Broadcasting Private Limited 6. Muthoot Exchange Company Private Limited 7. Backdrop Advertising Private Limited 8. Muthoot Global Money Transfers Private Limited 9. Emgee Board and Paper Mills Private Limited 10. Mar Gregorios Memorial Muthoot Medical Centre 11. Muthoot Precious Metals Corporation 12. GMG Associates 13. Muthoot Insurance Brokers Private Limited 14. Emgee Muthoot Benefit Funds (India) Limited 15. Geo Bros Muthoot Funds (India) Limited 16. Muthoot Investment Advisory Services Private Limited 17. Muthoot Insurance Brokers Private Limited 18. Muthoot M George Permanent Fund Limited 19. Muthoot Medical Centre, Kozhencherry 20. Muthoot Securities Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
450000000 |
Equity Shares |
Rs.10/- each |
Rs.4500.000 Millions |
|
5000000 |
Preference Shares |
Rs.1000/- each |
Rs.5000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.9500.000
Millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
371712768 |
Equity Shares |
Rs.10/- each |
Rs.3717.128 Millions |
|
|
|
|
|
NOTE:
Terms and Rights attached to Equity Shares
The Company has
only one class of equity shares having face value Rs. 10/- per share. All these
shares have the same rights and preferences with respect to the payment of dividend,
repayment of capital and voting. The dividend proposed by the Board of
Directors is subject to the approval of shareholders in the ensuing Annual
General Meeting.
In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive any of the remaining assets of the Company, after distribution of all
preferential amounts. However, no such preferential amounts exist currently.
The distribution will be in proportion to the number of equity shares held by
the shareholders.
The reconciliation
of the number of shares outstanding and the amount of share capital as at March
31, 2012 and March 31, 2011 is set out below:
|
Particulars |
Equity Shares |
|
|
|
Number |
Amount |
|
Shares
outstanding at the beginning of the year |
320,212,768 |
3202.128 Millions |
|
Shares
Issued during the year |
51,500,000 |
515.000 Millions |
|
Shares
outstanding at the end of the year |
371,712,768 |
3717.128 Millions |
Disclosure
as to the shareholders holding more than 5 percent shares
|
Sl. No. |
Name of
Shareholder |
As on 31.03.2012 |
|
|
|
|
No. of Shares held |
% of Holding |
|
1 |
M.
G. George Muthoot |
47,385,132 |
12.75% |
|
2 |
George
Alexander Muthoot |
44,464,400 |
11.96% |
|
3 |
George
Jacob Muthoot |
44,464,400 |
11.96% |
|
4 |
George
Thomas Muthoot |
44,464,400 |
11.96% |
|
5 |
Susan
Thomas |
29,985,068 |
8.07% |
Disclosure as to aggregate number and class of shares allotted
as pursuant to contract(s) without payment being received in cash, fully paid
up by way of bonus shares and shares bought back.
|
Particulars |
Aggregate No. of Shares issued in the financial years |
||||
|
|
2011-12 |
2010-11 |
2009-10 |
2008-09 |
2007-08 |
|
|
|
|
|
|
|
|
Equity Shares : |
|
|
|
|
|
|
Fully paid up pursuant to contract(s)
without payment being received in cash |
Nil |
Nil |
Nil |
Nil |
Nil |
|
Fully
paid up by way of bonus shares |
Nil |
Nil |
252,000,000 |
42,000,000 |
Nil |
|
Shares
bought back |
Nil |
Nil |
Nil |
Nil |
Nil |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
3717.128 |
3202.128 |
|
(b) Reserves & Surplus |
|
25540.192 |
10141.997 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1)+(2) |
|
29257.320 |
13344.125 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
62416.534 |
26692.184 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long
term liabilities |
|
2686.933 |
1258.608 |
|
(d) long-term
provisions |
|
0.00 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
65103.467 |
27950.792 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
92386.822 |
72414.081 |
|
(b)
Trade payables and Other current liabilities |
|
44227.655 |
22899.693 |
|
(c) Short-term
provisions |
|
2746.756 |
601.308 |
|
Total Current Liabilities
(4) |
|
139361.233 |
95915.082 |
|
|
|
|
|
|
TOTAL |
|
233722.020 |
137209.999 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
2621.056 |
1835.567 |
|
(ii)
Intangible Assets |
|
5.840 |
2.205 |
|
(iii)
Capital work-in-progress |
|
38.948 |
47.970 |
|
(iv)
Intangible assets under development |
|
16.418 |
0.000 |
|
(b) Non-current Investments |
|
75.050 |
75.050 |
|
(c) Deferred tax assets (net) |
|
3.896 |
(24.731) |
|
(d) Long-term Loan and Advances |
|
1098.701 |
903.862 |
|
(e) Other
Non-current assets |
|
0.522 |
0.000 |
|
Total Non-Current
Assets |
|
3860.431 |
2839.923 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
900.000 |
0.000 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c)
Trade receivables |
|
7340.232 |
3468.661 |
|
(d) Cash
and cash equivalents |
|
7950.385 |
13754.950 |
|
7(e) Short-term
loans and advances |
|
213600.222 |
117057.217 |
|
(f)
Other current assets |
|
70.750 |
89.248 |
|
Total
Current Assets |
|
229861.589 |
134370.076 |
|
|
|
|
|
|
TOTAL |
|
233722.020 |
137209.999 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
|
45366.721 |
23015.054 |
|
|
|
Other Income |
|
123.836 |
143.624 |
|
|
|
TOTAL (A) |
|
45490.557 |
23158.678 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefits expense |
|
4144.769 |
2209.492 |
|
|
|
Other expenses |
|
3393.183 |
2239.474 |
|
|
|
Directors Remuneration |
|
192.000 |
192.000 |
|
|
|
Provisions and Write Offs |
|
419.971 |
341.752 |
|
|
|
TOTAL (B) |
|
8149.923 |
4982.718 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
37340.634 |
18175.960 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
23698.993 |
10382.874 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
13641.641 |
7793.086 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
329.169 |
180.980 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
13312.472 |
7612.106 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
4392.232 |
2670.342 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
8920.240 |
4941.764 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
|
0.433 |
6.327 |
|
|
TOTAL IMPORTS |
|
0.433 |
6.327 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
24.29 |
15.78 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
12874.600 |
13060.600 |
13591.800 |
14062.000 |
|
Total Expenditure |
2230.000 |
2283.000 |
2434.200 |
3102.400 |
|
PBIDT (Excl OI) |
10644.600 |
10777.600 |
11157.600 |
10959.600 |
|
Other Income |
63.300 |
104.900 |
60.800 |
53.400 |
|
Operating Profit |
10707.900 |
10882.500 |
11218.400 |
11013.000 |
|
Interest |
6963.400 |
6784.000 |
7080.800 |
7424.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
3744.500 |
4098.500 |
4137.600 |
3588.300 |
|
Depreciation |
102.700 |
116.800 |
115.300 |
119.600 |
|
Profit Before Tax |
3641.900 |
3981.700 |
4022.300 |
3468.700 |
|
Tax |
1180.800 |
1301.500 |
1321.600 |
1268.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
2461.100 |
2680.200 |
2700.700 |
2200.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2461.100 |
2680.200 |
2700.700 |
2200.400 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
|
19.61 |
21.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
29.34 |
33.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
5.70 |
5.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.46 |
0.57 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
|
5.29 |
7.43 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.65 |
0.14 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last two years |
Yes |
|
12] |
Profitability for last twoe 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 |
Yes |
|
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 |
------------------------------------------------------------------------------------------------------------------------------
KERALA HIGH COURT
CASE STATUS INFORMATION
SYSTEMS
|
Case Status |
Pending |
|
|
|
|
Status of |
Income Tax Appeal 234 of 2012 |
|
|
|
|
The commissioner of Income Tax-1 vs. M/s
Muthoot Finance Private Limited |
|
|
Pet’s Adv. |
Sri. Jose Joseph, Sc, for |
|
|
|
|
Res’s Adv. |
-- |
|
|
|
|
Last Listed On |
Wednesday, July 17, 2013 |
|
|
|
|
Category |
Income Tax Appeal |
|
|
|
|
|
|
|
Case Updated on: Monday, December 03, 2012. |
|
------------------------------------------------------------------------------------------------------------------------------
MANAGEMENT DISCUSSION AND ANALYSIS
INDIA’S GOLD LOAN
INDUSTRY
Gold production
India's gold production is a fraction of the world's output (around
2,500 tonnes a year), the only producer being Hutti Gold Mines in Karnataka
(3.5 tonnes of gold a year). However, in terms of total government gold
reserves, India ranks 11th globally with 557.7 tonnes. Over the last decade,
the gold import into India hovered around 700 tonnes and in last two years,
increased to around 900 tonnes.
Gold consumption
• India ranks as the largest consumer of gold globally, accounting for one-fourth
of the world’s gold demand. Household gold consumption increased from US$ 19
billion in 2009 to US$ 45 billion in 2011. Over the past 10 years, household
gold consumption has increased at a CAGR of 21%.
• Gold represented 10% of total Indian household savings in 2010-11.
• Globally, nearly 50% of the demand is in the form of jewellery, around
40% for investment in bars, coins, ETFs and similar investments; around 10% is
for industrial use.
• In India, nearly 61% of the demand is in the form of jewellery and the
rest is for investments
• Gold consumption accounted for 2.3% of GDP in 2011-12. Gold imports
are an estimated 72% of India’s current account deficit.
Gold import market
India is the world's largest consumer of gold. India imported 969 tonnes
in 2011 and is expected to import a lower quantum in 2012 (Source: World Gold
Council). According to a report of the Prime Minister’s Economic Council
(PMEAC), the country’s total gold imports during 2011-12 was likely to have
touched US$ 58 billion, accounting for a sizeable part of the rising current
account deficit (US$ 32.8 billion in the first half of 2011-12). However,
India’s gold imports have already started falling. According to World Gold
Council, the country’s gold imports declined from 298 tonnes in January-March
2011 quarter to 157 tonnes in the October- December 2011 quarter. PMEAC
projected gold imports to slide to around US$ 38 billion in 2012-13 as gold
prices remained high at around Rs. 28,000 per 10 grams.
Gold loan market
The vast size of gold present in India has translated into the creation
of a large gold loan industry in India. The current market size of the
organized sector including portfolio of NBFC’s and banks could be around
Rs.1,500 bn. This is only a small portion of the total gold holding in India.
Hence, the potential for further expansion of the gold loan market exist.
Interestingly, the size of India’s unorganised (partnership or sole
proprietorship firms) gold loan sector has been estimated at least couple of
times of the organised segment. At least 10-15 players currently operate in
every Indian village or town, the majority being unorganised. India’s gold loan
customers comprise the following: agriculturists, small businessmen,
entrepreneurs, vendors, retail traders, contractors, transport operators, small
and medium industries, self-employed professionals and salaried individuals.
Growth drivers of
India’s gold loan market
The existence of large household savings in India due to socio-cultural
reasons provides the basis for the development of the gold loan industry.
Further, the increase in gold prices over the last 11 years has
positioned gold as an attractive investment option. The gold loan industry has
grown in recent years due to the following reasons:
• A pioneering initiative by India’s NBFC sector to position gold loans
as a convenient vehicle to enhance liquidity through product awareness.
• NBFC sector increased its branch network on a pan India level in rural
and semi-urban areas resulting in an increase in new customer base.
• Transparency in the gold loan business and the ease with which loans
can be availed prompted a shift of customer base from the country’s unorganised
to organised sector
The role of NBFCs
The shift from India’s unorganised gold loan segment to the organised
has been catalysed by the responsible role played by the country’s non-banking
finance companies through the following provisions:
Low disbursal
times: NBFCs disburse loans quicker than other players without compromising
the documentation discipline and KYC requirements.
Fund availability: Since NBFCs have
access to organized credit; the availability of funds is not a constraint.
Since the unorganized sector operates through proprietary funds, availability
of funds remains as a constraint.
Low interest
rates: The interest rates charged by NBFCs have been lower than the rates
charged by the country’s unorganised segment.
Flexible repayment
options: NBFCs made it possible for the interest and principal repayment being
bunched at the end of the period in a lump sum resulting in a higher level of
customer comfort.
Transparent and
standardized operating practices: The transparent and standardized operating
practices by NBFCs enhanced customer comfort which increased customer footfalls
for NBFCs.
SECTORAL
CHALLENGES
Regulatory changes
Capping the loan to value is a welcome move as it will catalyse
standardization in an industry which has reached a reasonable level of
maturity. However, the level at which it has kept (60% of value of jewellery)
may make it unattractive to borrowers who do not have additional gold holdings
to make up for the shortage. This may drive them to the unorganized sector to
which these norms do not apply.
Regulatory gaps
NBFCs do not have a level playing field vis a vis banks, since apart
from the non applicability of LTV cap norms, banks have an advantage in terms
of lower borrowing cost, lower capital requirement and lower risk weight. It is
understood that bank’s gold loan portfolio carry zero risk weight if the LTV is
less than 75%, virtually allowing them to operate without capital. In this
scenario, customer service will be the key factor driving business for NBFC
sector.
Funding
Bank funding will be critical for the growth of the sector. Though the
exposure ceiling of bank to a single NBFC, having gold loans to the extent of
50% or more of its total financial assets, was reduced from 10% to 7.5% of the
bank’s Total Capital Funds, there is adequate room for banks to further lend to
the sector.
Negative
perception / Image of the sector
While the regulatory measures were intended to bring standardization and
reduce the growth of the sector, too many regulatory announcements in a short span
of time and adverse media comments have sent out a negative perception. This
has affected an individual company’s ability to attract funding from capital
market investors like mutual funds, financial institutions etc. Bringing back
the confidence of these capital market investors poses a big challenge to the
sector.
OUTLOOK
India’s total gold holding is estimated at 18000 tonnes. Of this, around
1000 tonnes is estimated to be lying with
NBFCs and banks in the form gold loan assets under management. The
remaining resides with Indian households (from the lower middle class to the
upper rich). This represents a large market that could be progressively
monetised for national economic benefit.
In the opinion of the Company, India’s organised gold loan sector could
grow sustainably for a number of years even if there was only a switch from
India’s unorganised sector to the organized through proper marketing
initiatives and increase in the network. An effective LTV of 80%, coupled with
a strong business focus and customized products, can potentially attract small
borrowers, self-employed professionals, agriculturalists and artisans, among
others. The credibility of the Indian organised gold loan segment could help
catalyse social transformation especially in areas with high financial
exclusion. The Company is optimistic of the long-term prospects of the business
on account of a high 65% of India’s large private gold stock being held by
rural households as a well as large proportion of India’s gold loan market
remaining with the unorganised sector.
ECONOMIC SCENARIO
The fall in values
of investments triggered primarily by the deceleration in economic growth and
high inflation characterized the economic scenario in the year gone by. The
huge fiscal and current account deficits in the context of declining export
growth led to substantial erosion in the exchange rate of Indian rupee and
triggered a sovereign rating reduction by some of the rating agencies. These
developments throw a dark shadow on the growth prospects of the country in the
fiscal 2012-13 and despite a huge consumption demand, the nation’s GDP growth
reaching 8% looks improbable.
BUSINESS
Increase in foot
print, aggressive marketing efforts and tweaking of products in response to
market conditions enabled the Company to improve its loan book by 55% taking
the outstanding to Rs.246736.000 Millions. The cost of borrowed funds went upto
12.20% compared to 8.87% in fiscal 2010-11. Despite this, they could, thanks to
overall control on expenditure, efficient collection of interest and control on
NPAs, retain the Net Interest Margin at 10.65%. Total income grew by a very
creditable 96% to Rs.45490.600 Millions. Profit Before Tax rose by 75% to
Rs.13312.500 Millions and Profit After Tax by 80% to Rs.8920.200 Millions. The
Return on Average Retail Loans rose to 4.40% as compared to 4.24% in fiscal
2010-11.
Financial Year
2011-12 flags a significant mile stone in the gold loan industry as it marks
the beginning of a consolidation phase and your Company too has taken cautious
steps in moving towards such a positive direction. The Gross Retail Loan Assets
under Management as on 31st March, 2012 stood at Rs.246736.000 Millions
registering a year over year growth of 55%. While the total income grew by 96%
to reach at Rs.45490.600 Millions on 31st March, 2012, Profit after tax stood
at Rs.8920.200 Millions as against a figure of Rs.4941.800 Millions reported
during the previous financial year.
945 new branches
were opened during the financial year taking the branch network as on 31st
March, 2012 to 3,678 branches spread across 21 states and 4 union territories.
The average gold loan outstanding per branch has increased from Rs.57.500
Millions to Rs.66.400 Millions as on March 31, 2012.
BACKGROUND
Subject was
incorporated as a private limited Company on 14th March 1997 and was converted
into a public limited Company on 18th November 2008. The Company is promoted by
Mr. M. G. George Muthoot, Mr. George Thomas Muthoot, Mr. George Jacob Muthoot and
Mr. George Alexander Muthoot collectively operating under the brand name of
‘The Muthoot Group’, which has diversified interests in the fields of Financial
Services, Healthcare, Education,
Plantations, Real Estate, Foreign Exchange, Information Technology, Insurance
Distribution, Hospitality etc. The Company obtained permission from the Reserve
Bank of India for carrying on the business of Non-Banking Financial
Institutions on 13.11.2001 vide Regn No. N 16.00167. The Company is presently
classified as Systemically Important Non-Deposit Taking NBFC (NBFC-ND-SI).
The Company made
an Initial Public Offer of 5,15,00,000 Equity Shares of the face value Rs. 10/-
each at a price of Rs. 175/- raising Rs. 9012.500 Millions during the month of
April 2011. The equity shares of the Company are listed on National Stock
Exchange of India Limited and BSE Limited from 6th May 2011.
------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER AND NINE MONTHS ENDED 31ST DECEMBER 2012
(RS. IN MILLIONS)
|
Particulars |
Quarter
ended |
Year to
date |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income
from Operations |
13539.167 |
12994.924 |
39373.596 |
|
Other
Operating Income |
52.629 |
65.682 |
153.406 |
|
Total Income from Operations |
13591.796 |
13060.606 |
39527.002 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Employee
Benefits Expenses |
1427.323 |
1348.730 |
3982.930 |
|
Rent |
329.377 |
321.796 |
954.054 |
|
Advertisement |
121.954 |
152.462 |
336.463 |
|
Other
Expenditure |
555.560 |
518.411 |
1732.158 |
|
Depreciation
and Amortisation |
115.309 |
116.843 |
334.799 |
|
Total Expenses |
2549.523 |
2458.242 |
7340.404 |
|
|
|
|
|
|
Profit
from Operations before Other Income, |
|
|
|
|
Finance
cost & Exceptional Items |
11042.273 |
10602.364 |
32186.598 |
|
Other
Income |
60.844 |
104.855 |
228.947 |
|
Profit from
ordinary activities before finance cost & Exceptional Items |
11103.117 |
10707.219 |
32415.545 |
|
Finance
Cost |
7080.825 |
6725.573 |
20769.748 |
|
Profit
from ordinary activities after finance cost but before Exceptional Items |
4022.292 |
3981.646 |
11645.797 |
|
|
|
|
|
|
Profit from Ordinary Activities
before tax |
4022.292 |
3981.646 |
11645.797 |
|
|
|
|
|
|
Tax
expense (including deferred tax) |
1321.567 |
1301.446 |
3803.818 |
|
|
|
|
|
|
Net Profit from Ordinary
Activities after tax |
2700.725 |
2680.200 |
7841.979 |
|
|
|
|
|
|
Net Profit for the period |
2700.725 |
2680.200 |
7841.979 |
|
|
|
|
|
|
Equity
share capital |
3717.128 |
3717.128 |
3717.128 |
|
|
|
|
|
|
Face Value
in Rs. |
Rs.10/- |
||
|
|
|
|
|
|
Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
|
|
|
|
|
Earnings Per Share (EPS) |
|
|
|
|
(a) Basic
and Diluted EPS (before Extraordinary items) (not annualised) |
7.27 |
7.21 |
21.10 |
|
(b) Basic and
Diluted EPS (after Extraordinary items) (not annualised) |
7.27 |
7.21 |
21.10 |
|
|
|
|
|
|
Public
shareholding |
|
|
|
|
Number of shares |
73914896 |
73914896 |
73914896 |
|
Percentage of
shareholding |
19.88% |
19.88% |
19.88% |
|
|
|
|
|
|
Promoters
and Promoter Group Shareholding |
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
Number
of Shares |
Nil |
Nil |
Nil |
|
Percentage
of shares (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
Percentage
of shares (as a % of the total share capital of the company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
b) Non - encumbered |
|
|
|
|
Number
of Shares |
297797872 |
297797872 |
297797872 |
|
Percentage
of shares (as a % of the total shareholding of the Promoter and Promoter
group) |
100.00% |
100.00% |
100.00% |
|
Percentage
of shares (as a % of the total share
capital of the company)
|
80.12% |
80.12% |
80.12% |
Investor Complaints
|
Particulars |
3 months ended 31.12.2012 |
|
|
|
|
Pending at the
beginning of the quarter |
Nil |
|
Received during
the quarter |
1 |
|
Disposed off
during the quarter |
1 |
|
Remaining unresolved
at the end of the quarter |
Nil |
SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
|
Particulars |
Quarter ended |
Year to date ended |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Segment
Revenue: |
|
|
|
|
Financing |
13589.700 |
13045.515 |
39502.898 |
|
Power
Generation |
2.096 |
15.091 |
24.104 |
|
Total
Revenue |
13591.796 |
13060.606 |
39527.002 |
|
|
|
|
|
|
Segment
Result: |
|
|
|
|
Financing |
4010.442 |
3910.468 |
11547.797 |
|
Power
Generation |
(0.970) |
15.295 |
14.931 |
|
Unallocated
corporate income |
60.845 |
1,04.855 |
2,28.947 |
|
Unallocated
corporate expenses |
(48.025) |
(48.972) |
(145.878) |
|
|
|
|
|
|
Operating
profit |
4022.292 |
3981.646 |
11645.797 |
|
|
|
|
|
|
Tax
expense (including deferred tax) |
1321.567 |
1301.446 |
3803.818 |
|
|
|
|
|
|
Profit
after Tax |
2700.725 |
2680.200 |
7841.979 |
|
|
|
|
|
|
Capital
Employed |
|
|
|
|
Financing |
36616.607 |
34270.607 |
36616.607 |
|
Power Generation |
751.49 |
831.36 |
75.149 |
|
Unallocated
Corporate Assets/(Liabilities) |
4,075.44 |
448.33 |
4,07.544 |
|
Total |
37099.300 |
343985.76 |
37099.300 |
Notes:
·
The above unaudited financial results have been reviewed by the
Audit Committee and approved by the Board of Directors of the Company at their
respective meetings held on 14th January 2013.
·
The above results have been subject to Limited Review by the
Statutory Auditors of the Company.
·
The working results have been arrived at after considering
provisions for standard assets and non-performing assets as per RBI guidelines,
depreciation on fixed assets and other usual and necessary provisions.
·
The Company operates in two segments - Financing and Power
Generation. These segments have been identified in line with the Accounting
Standard on Segment Reporting (AS 17).
·
The company has not recognized any deferred tax asset on
provision for standard assets as the company is of the opinion that such
provision does not give rise to a timing difference, which has a reasonable
certainty of its reversal in future.
·
Previous period/year figures have been regrouped /
reclassified wherever necessary as per the format revised by SEBI in conformity
with the amended Schedule VI to the Companies Act 1956.
------------------------------------------------------------------------------------------------------------------------------
CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT
PROVIDED FOR):
|
Particulars |
As on 31.03.2012 |
As on 31.03.2011 |
|
(a) Claims against the company not
acknowledged as debt |
|
|
|
i)
Service Tax demand for the period-2003-2008, pending in appeal with CESTAT
(Net of amount already remitted) |
49.921 |
49.921 |
|
Commissioner
of Central Excise, Customs and Service Tax, Cochin has raised a demand of
Rs.52.008 Millions as Service tax liability and penalty. During the course of
the proceedings Company paid Rs.2.086 Millions. The Appellate Authority
admitted the Appeal preferred by the company and granted stay of recovery, on
pre-deposit of Rs.8.300 Millions. Pending disposal of appeal, no provision
has been made by the company during the year. |
|
|
|
ii)
Income tax demand for Assessment Year 2004-05, pending in appeal with ITAT (Net
of amount already remitted) |
- |
- |
|
Assistant
Commissioner of Income Tax, Circle 1(3), Ernakulam has filed an appeal before
ITAT against the order of Commissioner of Income Tax (Appeals) D II, Cochin
demanding Rs.5.237 Millions. The Company has already paid the demand by way
of Advance Tax, Tax Deducted at Source and adjustment against refund due. No
additional income tax liability is expected. Hence no provision is required
to be made by the company during the year. |
|
|
|
iii) Income
tax demand for Assessment Year 2006-07, pending in appeal with ITAT (Net of
amount already remitted) |
|
|
|
Company
has filed an appeal before ITAT against the order of Commissioner of Income Tax
(Appeals) D II, Cochin demanding Rs.1.521 Millions. The Company has already
paid the demand by way of Advance Tax and Tax Deducted at Source. No
additional income tax liability is expected. Hence no provision is required
to be made by the company during the year. |
|
|
|
iv)
Income tax demand for Assessment Year 2009-10, pending in appeal with
Commissioner of Income Tax (Appeals), Kochi |
13.782 |
|
|
Additional
Commissioner of Income Tax, Range - 1, Kochi has passed an order demanding Rs.
13,782,470.00 towards income tax due for the Assessment Year 2009-10. The
Commissioner of Income Tax (Appeals) admitted the appeal preferred by the
Company. Pending disposal of appeal, no provision has been made by the
company during the year. |
|
|
|
(b)
Guarantees - Counter Guarantees Provided to Banks |
218.494 |
32.544 |
|
(c)
Other money for which the company is contingently liable |
|
|
|
Cash
collateral provided as credit enhancement for bilateral assignment of
receivables |
2610.700 |
2743.160 |
|
Over
collateral provided as credit enhancement for bilateral assignment of
receivables |
25.000 |
63.572 |
|
Corporate
guarantee provided as credit enhancement for bilateral assignment of
receivables |
1571.431 |
751.548 |
|
(ii)
Commitments |
|
|
|
Estimated
amount of contracts remaining to be executed on capital account and not
provided for |
189,802,675.27 |
24,726,183.84 |
------------------------------------------------------------------------------------------------------------------------------
FORM 8:
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10318690 |
|
Corporate
identity number of the company |
L65910KL1997PLC011300 |
|
Name of the
company |
MUTHOOT FINANCE
LIMITED |
|
Address of the
registered office or of the principal place of business in |
2nd Floor,
Muthoot Chambers, Opposite Saritha Theatre Complex, Ernakulam – 682018,
Kerala, India |
|
Type of charge |
Book Debts Floating Charge Others: Current
Assets, Loans, Advances and Receivables |
|
Particular of
charge holder |
State Bank of
Patiala Commercial
Branch, Atlanta, First Floor, Nariman Point, Mumbai – 400021, Maharashtra,
India |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
agreement of hypothecation of goods and assets for increase in the overall limit dated 18th day of March, 2013 |
|
Date of
instrument Creating the charge |
18/03/2013 |
|
Amount secured by
the charge |
Rs.3000.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest Negotiated Rates Terms of
Repayment Repayable on
demand Margin 15% Extent and
Operation of the charge First pari-passu
floating charge on current assets, book debts, loans, advances and
receivables including gold loan receivables, both present and future |
|
Short particulars
of the property charged |
Current assets,
book debts, loans, advances and receivables including gold loan receivables,
both present and future. |
|
Date of latest
modification prior to the present modification |
26/03/2012 |
|
Particulars of
the present modification |
The existing credit
facility has been increased from Rs.2000.000 Millions to Rs.3000.000 Millions
and the security has been extended to cover additional facilities as well. |
|
This form is for |
Modification of
charge |
|
Charge identification
number of the modified |
10244081 |
|
Corporate
identity number of the company |
U65910KL1997PLC011300 |
|
Name of the
company |
MUTHOOT
FINANCE LIMITED |
|
Address of the
registered office or of the principal place of business in |
2nd Floor, Muthoot Chambers, Opposite Saritha Theatre Complex,
Ernakulam, Kerala – 682018, India |
|
Type of charge |
Book debts Floating charge Others: Current Assets, Loans,
Advances and Receivables |
|
Particular of
charge holder |
Central Bank of
India Ernakulam Branch,
M. G. Road North End, Ernakulam – 682035, Kerala, India |
|
Nature of description
of the instrument creating or modifying the charge |
Letter of
hypothecation dated 06/06/2011 and agreement of hypothecation to secure
demand cash credit against goods dated 06/06/2011 |
|
Date of
instrument Creating the charge |
06/06/2011 |
|
Amount secured by
the charge |
Rs.4000.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest Negotiated Rates Terms of
Repayment Repayable on
demand Margin 35% Extent and Operation
of the charge Pari-passu
floating charge on current assets, book debts, loans, advances and
receivables including gold loan receivables, both present and future. Others NIL |
|
Short particulars
of the property charged |
Current Assets, Book
Debts, Loans, Advances and Receivables including gold loan receivables both
present and future |
|
Date of latest
modification prior to the present modification |
The existing
credit facilities has been increased from Rs.3000.000 Millions to Rs.4000.000
Millions and security has been extended to cover additional facilities as
well. |
|
Particulars of
the present modification |
|
------------------------------------------------------------------------------------------------------------------------------
FIXED ASSETS:
· Land
· Building
· Furniture and Fixtures
· Plant and Machinery
· Computer
· Motor car
· Wind Mill
· Computer Software
------------------------------------------------------------------------------------------------------------------------------
NEWS
Muthoot may turn
2,000 gold-loan outlets into bank branches
The largest pure-play gold mortgage player Muthoot Finance, which has applied for banking licence, has said it can easily launch commercial lending business with as many as 2,000 branches.
"We are confident of getting a banking licence from the Reserve Bank, given our reach in rural markets and our over a century of experience. In fact, our experience is the biggest asset and we are better suited than many other applicants in this regard," Muthoot Finance managing director George Alexander Muthoot told PTI from the headquarter in Kochi.
Also read: Muthoot Finance applies for new banking licence
Many of its branches are in tier 2,3 & 4 towns and they can be immediately converted into a full-fledged bank branches. Muthoot said 4,200 branches, large existing customer base and strong brand image makes it an eligible candidate.
With 74 years in gold financing, the company has over 4,200 gold loan outlets across 21 states and four Union territories, and employee strength of over 25,000 with a gold loan portfolio over Rs 260000.000 Millions as of last fiscal.
"With our last mile connect in to the hinterland, a banking licence will enable us to play a larger role of financial inclusion by taking these services to the unbanked and undeserved population of the country," Muthoot further said, adding that around 60 per cent his existing branch network is spread across tier 2, 3 and 4 markets.
On whether the company will continue with the gold loan business if it gets a banking licence, he said there is no question of shutting that down as there is no regulatory requirement to shut down the existing business.
About meeting the funds requirement for the banking foray, he said arranging Rs.5000.000 Millions, which is the RBI prescribed net-worth for bank holding company, will not be difficult.
Muthoot Finance and 25 other companies, including Tatas, Reliance, Birla and India Post, have applied for bank license.
Last month the company got an in-principle go-ahead from the RBI to launch white-label ATMs and it plans to set up at least 9,000 money vending machines over the next three years.
Muthoot Finance Limited to raise upto
Rs.5000.000 Millions through a Public Issue of Secured Redeemable
Non-Convertible Debentures
02 Mar 2012
Mumbai, February 29, 2012 Muthoot Finance Limited (the “Company” or
“Issuer”), the largest gold financing company in India in terms of loan
portfolio, according to the IMaCS Research and Analytics Industry Reports, Gold
Loans Market in India, 2009 ["IMaCS Industry Report, (2010 Update)"],
will open on March 02, 2012, a public issue of secured, redeemable,
non-convertible debentures (“NCDs”) of face value of Rs.1,000 each aggregating
upto Rs.2500.000 Millions with an option to retain over subscription upto
Rs.2500.000 Millions, aggregating to a total of upto Rs.5000.000 Millions (the
“Issue”).
The NCD Issue with four investment options and effective yield of upto 13.43% (per annum) closes on March 17, 2012, with an option for early closure as may be decided by the duly authorised committee of Board of Directors of the Company subject to necessary approvals. The face value of each NCD is Rs. 1,000 and the minimum application is for five NCDs (Rs.5,000) and in multiples of one NCD thereafter. The NCDs offered through the Prospectus are proposed to be listed on BSE Limited (“BSE”).
The NCDs proposed to be issued under this Issue have been rated ‘CRISIL AA-/Stable’ by CRISIL and ‘[ICRA] AA- /Stable’ by ICRA for an amount of upto Rs.6000.000 Millions vide their respective letters dated February 06, 2012.
There are three investment options:
Option I: The maturity date is 24 months from the deemed date of
allotment and the interest is payable annually. The coupon rate and effective
yield is 13.00% p.a. for NCD Holders in Category 1, Category II and Category
III.
Option II: The maturity date is 36 months from the deemed date of allotment and the interest is payable annually. The coupon rate and effective yield is 13.25% p.a. for NCD Holders in Category 1 Category II, Category III and Category IV.
Option III: The maturity date is 60 months from the deemed date of allotment and the interest is payable annually. The coupon rate and effective yield is 13.25% p.a. for NCD Holders in Category 1 Category II, Category III and Category IV.
Option IV: The maturity date is 66 months from the deemed date of allotment and effective yield is 13.43% p.a. and investment amount doubles in 5 ½ years for NCD Holders in Category I, Category II, Category III and Category IV.
The funds raised through this Issue will be utilised by the Company for various financing activities including lending and investments, to repay existing liabilities or loans and towards business operations including for capital expenditure, working capital requirement and other general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.
The Company provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. As of December 31, 2011, the Company has branch network of 3,480 branches. The Company’s Gold Loan portfolio as of September 30, 2011 comprised approximately 5.5 million loan accounts in India. As of September 30, 2011, it employed 23,219 persons in its operations. The Lead Managers to the Issue are ICICI Securities Limited, HDFC Bank Limited, JM Financial Consultants Private Limited, Karvy Investor Services Limited RR Investors Capital Services (P) Limited and Yes Bank Limited.
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 records 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 tansactions 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.59.59 |
|
|
1 |
Rs.89.90 |
|
Euro |
1 |
Rs.77.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
61 |
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.