MIRA
INFORM REPORT
|
Report Date : |
07.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
UTI ASSET MANAGEMENT COMPANY LIMITED (w.e.f. 14.11.2011) |
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Formerly Known
As: |
UTI ASSET MANAGEMENT COMPANY PRIVATE LIMITED |
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Registered
Office : |
Ground Floor, UTI Tower, GN Block, Banrda Kurla Complex, Bandra (East),
Mumbai - 400 051, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
14.11.2002 |
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Com. Reg. No.: |
11-137867 |
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Capital
Investment / Paid-up Capital : |
Rs.1250.000 Millions |
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|
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CIN No.: [Company Identification
No.] |
U65991MH2002GOI137867 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NGPU01326D / MUMU03355C |
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PAN No.: [Permanent Account No.] |
AAACU6260F |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
The company is engaged in the investment management business and providing wealth management services. |
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No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
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 38000000 |
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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 an established and reputed company having a fine track
record. Financial position of the company appears to be sound. Trade
relations are reported as trustworthy. 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Liquid Fund – Cash Plan : A1 + mfs |
|
Rating Explanation |
Very strong degree of safety regarding timely receipts of payments. |
|
Date |
July, 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
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-667866666)
LOCATIONS
|
Registered Office : |
Ground Floor, UTI Tower, GN Block, Banrda Kurla Complex, Bandra
(East), Mumbai-400051, Maharashtra, India |
|
Tel. No.: |
91-22-66786354 / 6101 / 66786666 / 6793 / 66786424 |
|
Mobile No.: |
91-9892900946 (Ms. Khurshid Mistry) |
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Fax No.: |
91-22-66786326 / 26528991 |
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E-Mail : |
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Website : |
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Branch Office : |
Located at ·
Andhra Pradesh ·
Assam ·
Bihar ·
Chandighar ·
Delhi ·
Goa ·
Gujarat ·
Harahan ·
Himachal Pradesh ·
Jammu and Kashmir ·
Jharkhand ·
Karnataka ·
Kerala ·
Madhya Pradesh ·
Maharashtra ·
Meghalaya ·
Orissa ·
Punjab ·
Rajasthan ·
Tamil Nadu ·
Tripura ·
Uttar Pradesh ·
Uttarakhand ·
West Bengal |
DIRECTORS
As on 18.07.2012
|
Name : |
Mr. Prithvi Raj Khanna |
|
Designation : |
Director |
|
Address : |
70, Sundar Nagar, New Delhi-110003, India |
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Date of Birth/Age : |
02.07.1933 |
|
Qualification : |
B.Com. (Hons.) from Delhi University and a fellow member of Institute of Chartered Accountants of India |
|
Date of Appointment : |
13.01.2006 |
|
DIN No.: |
00048800 |
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|
Name : |
Mr. Flemming Madsen |
|
Designation : |
Director |
|
Address : |
10 Spring Forest Court, Ownings Mills, Maryland 21117, USA |
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Date of Birth/Age : |
12.08.1965 |
|
Qualification : |
Finished first half of the business program "HD" at Copenhagen Business School, which includes Economic Mathematics, Business Law and Finance |
|
Date of Appointment : |
20.01.2010 |
|
DIN No.: |
02904543 |
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|
Name : |
Mr. Sachit Jain |
|
Designation : |
Director |
|
Address : |
Auro Mirra Bhawan, 2722, Gurdec Nagar, Pakhowal Road, Ludhiana-141001, Punjab, India |
|
Date of Birth/Age : |
08.07.1966 |
|
Qualification : |
Electrical Engineering degree from IIT, New Delhi, Management degree from IIM, Ahmedabad and Financial Management at Standford |
|
Date of Appointment : |
20.01.2010 |
|
DIN No.: |
00746409 |
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|
Name : |
Mr. Pradeep Gupta |
|
Designation : |
Director |
|
Address : |
D-74, Panchsheel Enclave, New Delhi-110017, India |
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Date of Birth/Age : |
08.03.1955 |
|
Qualification : |
Engineer from IIT Delhi and an MBA from IIM, Calcutta |
|
Date of Appointment : |
20.01.2010 |
|
DIN No.: |
00007520 |
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|
Name : |
Mr. Pudugramam Narayanaswamy Venkatachalam |
|
Designation : |
Director |
|
Address : |
3c, Settlur Manor, 2 Sivaswamy Street (Behind Axis Bank), Off Dr. Radhakrishnan Salai, Mylapore, Chennai-600004, Tamilnadu, India |
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Date of Birth/Age : |
22.03.1944 |
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Qualification : |
MA(ECO), CAIIB |
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Date of Appointment : |
05.01.2012 |
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DIN No.: |
00499442 |
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|
Name : |
Mr. James Sellers Riepe |
|
Designation : |
Director |
|
Address : |
1330, Western Run Road, Cockeysville, Maryland 21030, USA |
|
Date of Birth/Age : |
25.06.1943 |
|
Qualification : |
Bachelor in Science in Economics - University of Pennsylvania, MBA - University of Pennsylvania |
|
Date of Appointment : |
20.01.2010 |
|
DIN No.: |
02904546 |
KEY EXECUTIVES
|
Name : |
Mr. Kiran Narendra Vohra |
|
Designation : |
Secretary |
|
Address : |
G-101, Settelit Garden I, Gen A K Vaidya Marg, Goregaon East,
Mumbai-400063, Maharashtra, India |
|
Date of Birth/Age : |
11.04.1962 |
|
Date of Appointment : |
25.04.2012 |
|
PAN No.: |
AAAPV8125F |
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|
Name : |
Mr. S C Dikshit |
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Designation : |
President |
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Name : |
Mrs. Swati A Kulkarni |
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Designation : |
Vice President |
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Name : |
Mr. Sanjay R Dongre |
|
Designation : |
Senior Vice President |
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Name : |
Mr. Amandeep S Chopra |
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Designation : |
PRESIDENT |
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|
Name : |
Mr. Ajay Tyagi |
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Designation : |
Assistant Vice President |
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|
Name : |
Mr. Imtaiyazur Rahman |
|
Designation : |
Acting Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 18.07.2012
|
Names of Shareholders |
|
No. of Shares |
|
State Bank of India |
|
23093750 |
|
Life Insurance Corporation of India |
|
23124999 |
|
Bank of Baroda |
|
23093750 |
|
Punjab National Bank |
|
23125000 |
|
T. Rowe Price Global Investment Services Limited |
|
32500000 |
|
Shri Shyamal Acharya (Nominee of State Bank of India) |
|
31250 |
|
Shri ADM Chavali (Nominee of Bank of Baroda) |
|
31250 |
|
Shri Pravin Hari Kutumbe s/o Shri Hari Narayan Kutumbe (Nominee of LIC) |
|
1 |
|
Total |
|
125000000 |
As on 18.07.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others |
26.00 |
|
Public financial companies |
18.50 |
|
Nationalised or other banks |
55.50 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the investment management business and providing wealth management services. |
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Product / Services
: |
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GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
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Bankers : |
Not Divulged |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
L. S. Nalwaya and Company Chartered Accountants |
|
Address : |
B-43, Mittal Industrial Estate 1, Andheri Kurla Road, Sakinaka,
Andheri (East), Mumbai – 400059, Maharashtra, India |
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Tel. No.: |
91-22-28591141 / 44 |
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Fax No.: |
91-22-28591145 |
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E-Mail : |
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Website: |
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PAN No.: |
AABFL4571E |
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Subsidiaries : |
v UTI Venture Funds Management Company Private Limited CIN No.: U65991KA2001PTC028827 v UTI International Limited v UTI Retirement Solutions Limited CIN No.:U66020MH2007GOI176785 v UTI Capital Private Limited CIN No.:U65900MH2011PTC217430 v UTI International (Singapore) Private Limited. (100% subsidiary of UTI International Limited, Guernsey) v UTI Investment Management Company (Mauritius) Limited. (100% subsidiary of UTI International Limited, Guernsey) v UTI Private Equity Advisors (UPEA) Mauritius (Subsidiary of UTI Venture Funds Management Company (Private) Limited) (100%) |
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Others Related
Parties: |
v Life Insurance Corporation of India v State Bank of India v Bank of Baroda v Punjab National Bank v T Rowe Price International Limited v Ascent Capital Advisors India Private Limited v UTI Mutual Fund v ASCENT India Fund III v India Infrastructure Development Fund (Managed by UTI Capital Private Limited) |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Rs.10/- each |
Rs. 2000.000 Millions |
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs. 1250.000 Millions |
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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 |
1250.000 |
1250.000 |
1250.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8189.180 |
7239.690 |
6248.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9439.180 |
8489.690 |
7498.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
186.310 |
154.970 |
117.100 |
|
|
|
|
|
|
|
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TOTAL |
9625.490 |
8644.660 |
7615.100 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
1968.780 |
2029.300 |
2024.400 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
7703.750 |
6859.450 |
5776.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
60.100
|
38.200 |
50.400 |
|
|
Cash & Bank Balances |
6.500
|
12.460 |
241.000 |
|
|
Other Current Assets |
220.800
|
219.980 |
7.800 |
|
|
Loans & Advances |
1427.980
|
1494.510 |
2261.000 |
|
Total
Current Assets |
1715.380
|
1765.150 |
2560.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
42.420
|
49.560 |
488.500 |
|
|
Other Current Liabilities |
1240.700
|
1405.080 |
950.100 |
|
|
Provisions |
479.300
|
554.600 |
1306.900 |
|
Total
Current Liabilities |
1762.420
|
2009.240 |
2745.500 |
|
|
Net Current Assets |
(47.040)
|
(244.090) |
(185.300) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9625.490 |
8644.660 |
7615.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3883.790 |
4204.030 |
4427.500 |
|
|
|
Other Income |
591.300 |
401.700 |
421.500 |
|
|
|
TOTAL (A) |
4475.090 |
4605.730 |
4849.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
1485.520 |
|
|
|
|
|
Other expenses |
1095.000 |
1077.200 |
|
|
|
|
Prior period items |
5.300 |
(8.800) |
|
|
|
|
TOTAL (B) |
2585.820 |
2577.100 |
2107.300 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
1889.270 |
2028.630 |
2741.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.040 |
0.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1889.270 |
2028.590 |
2741.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
80.400 |
77.660 |
79.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
1808.870 |
1950.930 |
2661.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
467.970 |
575.910 |
959.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
1340.900 |
1375.020 |
1702.700 |
|
|
|
|
|
|
|
|
|
Add |
PROVISION FOR INCOME
TAX WRITTEN BACK |
0.000 |
0.000 |
11.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6388.300 |
5534.100 |
4487.200 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
134.100 |
137.500 |
171.500 |
|
|
|
Dividend |
343.800 |
343.800 |
431.300 |
|
|
|
Tax on Dividend |
47.64 |
39.500 |
64.800 |
|
|
BALANCE CARRIED
TO THE B/S |
7203.660 |
6388.300 |
5534.100 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
10.73 |
11.00 |
13.70 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
29.96
|
29.85
|
35.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
46.57
|
46.41
|
60.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
49.10
|
51.42
|
58.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.23
|
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00
|
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.97
|
0.88
|
0.93 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
|
|
|
|
|
Sundry Creditors |
42.420
|
49.560 |
488.500 |
|
|
|
|
|
|
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 |
No |
|
10] |
Designation of contact
person |
No |
|
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 |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
MANAGEMENT DISCUSSION
AND ANALYSIS
DOMESTIC MUTUAL FUND
BUSINESS
As of March 31, 2012 UTI Mutual Fund had 92 schemes in operation with Average Asset Under Management (AAUM) at Rs. 589.22 billion as against Rs. 671.88 billion in the previous year.
Of the 92 schemes offered by the UTI MF, 24 are equity schemes; 59 are debt schemes; 2 are liquid and short-term schemes and 7 are balanced/hybrid schemes. During the period, 32 debt schemes were launched, which mobilised funds of Rs. 46034 million. On the other hand, 19 debt schemes matured or were terminated. No new equity scheme was launched during the year. The total dividend paid out by all the schemes in the financial year 2011-12 was Rs. 17,850.9 million.
The objective of the fund management in UTI Mutual Fund is to deliver stable and consistent returns in the medium to long term, with a fairly lower level of volatility compared to the broader market. Rigorous in-house research, a process-based approach to investment management, and a focus on asset allocation and sector selection along with stock selection, are undertaken in the endeavour to consistently remain in the top quartile of the peer group of funds.
OFFSHORE FUNDS
The AUM of Offshore Funds amounted to Rs. 51938.8 million as on March 31, 2012. The biggest financial group in Thailand, K Asset has launched a Thai Baht denominated India fund in Thailand. This fund acts as a feeder into the UTI 1986 India fund. During the initial offer period, they have raised USD 22 million, which is invested in UTI India Fund Unit Scheme 1986, thereby the size of UTI India fund increased to USD 85 million. This also makes K Asset the biggest investor in our flagship fund. UTI India Debt Opportunities Fund Unit Scheme has received subscription of USD 958.59 million from 22 investors in the month of September 2011.
PORTFOLIO MANAGEMENT
SERVICES AXEL
UTI PMS division had Assets Under Management / Advise amounting to Rs.82,816.24 million as on March 31, 2012. UTI PMS has 865 clients which include High Net worth Individuals, Corporates, Institutions, Government Organizations and Overseas Investors. The PMS Division has been growing well over the last few years and established a good track record in terms of performance and diversification of opportunities. This Division aims to provide its clients with investment solutions commensurate with their risk profiles and their return expectations, using research-based valuation and security selection techniques. PMS offers discretionary and research-based advisory services.
NATIONAL SKILL
DEVELOPMENT FUND
UTI AMC Ltd. along with two other AMCs has been appointed as Portfolio Managers for the management of funds of National Skill Development Fund (NSDF) under Ministry of Finance. Agreements to that effect were signed on 29th July 2011 between NSDF & Fund Managers. An amount of Rs. 2300 million was allocated to UTI AMC. The fund is managed as per the objective laid down by NSDF. This is the third Government of India Fund entrusted to UTI AMC after National Investment Fund (NIF) and Postal Life Insurance Funds (PLI).
MICRO PENSION
INITIATIVE
UTI AMC is managing small pension contribution of employees of 38 institutions. Total number of investors enrolled is 3,47,554 and the AUM as on March 2012 was Rs. 415.0 million. The contribution of the employees is invested in the UTI Retirement Benefit Pension Fund under the Micro-Pension Initiative of UTI AMC.
INVESTOR REACH AND
DISTRIBUTION
As on 31st March, 2012, UTI MF had 10.11 million investor folios. UTI Mutual Fund has always been proactive in its communication with its investors on announcements, services etc. through various mediums. A important initiative in this direction is the UTI Bulletin, which carries investor centric information. The UTI Bulletin which was first published in February 2011 in leading English and regional language newspapers is intended to be published on a quarterly basis to communicate to our investors.
The online transaction facility over the internet and the mobile media has been revamped and enhanced. Investors can now generate their own PIN, after going through security validation. Further, investors can register for SIPs electronically ( i-SIP) . Similarly, Investors now have the convenience of doing purchase transactions over mobile phone anytime, anywhere. Payouts through electronic mode are also becoming popular with investors.
INVESTOR EDUCATION
UTI-MF launched a unique investor education initiative called Swatantra II for creating awareness about concepts of financial planning and the benefits of investing in mutual funds. As a part of this initiative, four UTI Knowledge Caravans travelled through the length and breadth of the country to spread financial literacy.
FIXED ASSETS
v
Tangible
Assets
· Buildings
· Office building
· Plant and equipment
· Other plant and equipment
· Furniture and fixtures
· Vehicles
· Office equipment
· Other equipments
v
Intangible
Assets
· Computer software
WEBSITE DETAILS
PRESS RELEASE
GOLDMAN, UTIMF SHORTLISTED FOR MANAGING PUBLIC SECTOR ETF
APRIL 11, 2013
NEW DELHI: The finance ministry has shortlisted Goldman Sachs Asset Management and UTI Mutual Fund to act as asset management company (AMC) for the proposed public sector enterprise exchange traded fund (ETF).
The government had already selected ICICI Securities as the advisor for the
proposed ETF. The CPSE ETF will have shares of some listed public sector
companies and will serve as an additional mechanism to monetise government's shareholding
in PSUs. "Both the candidates will make presentation next week and then a
decision will be taken," said a finance ministry official, requesting
anonymity.
The government has set a target to raise Rs 400000.000 millions through divestment in this fiscal. The finance ministry holds the view that the ETF can be used as a year-round mechanism to divest stakes in public sector enterprises. In 2012-13, the government was able to raise Rs 239200.000 millions through stake sale in staterun companies.
Under the proposed mechanism, the government will pool the shares of different companies it plans to disinvest to create a fund, which will be sliced into smaller units. These units will then be listed on stock exchanges. The proposed ETF will have around 20 stocks, including that of blue chip PSUs such as Coal India, NTPC, ONGC, and Oil India.
The government is hopeful that ETF mechanism will help minimise market disruptions usually seen during public offerings of shares of staterun companies. An empowered group of ministers (EGoM) on disinvestment will take a final call on the structure of the proposed ETF and the scrips which will be traded through the mechanism.
ETFs, however, have not been highly successful in India. Gold ETFs have made some headway though. Many global firms had evinced interest when the government had announced its PSU ETF. In one of its reports, Goldman Sachs had said that ETF in India has the potential to touch $5 billion.
"We expect more retail participation in ETF and it will also boost the ETF product in the country," said the above quoted official.
The government will also offer discount of up to 5% to attract investors, with another 5% as loyalty bonus to those who make fresh investments after staying invested in the fund for at least a year.
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.56.87 |
|
|
1 |
Rs.87.65 |
|
Euro |
1 |
Rs.74.52 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
67 |
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.