MIRA INFORM REPORT

 

 

Report Date :

09.03.2013

 

IDENTIFICATION DETAILS

 

Name :

TVS CAPITAL FUNDS LIMITED (w.e.f. 13.09.2007)

 

 

Formerly Known As :

TVS VENTURE CAPITAL LIMITED

 

 

Registered Office :

"Jayalakshmi Estates", 29 Haddows Road, Chennai – 600 006, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012 

 

 

Date of Incorporation :

28.06.2007

 

 

Com. Reg. No.:

18-064133

 

 

Capital Investment / Paid-up Capital :

Rs.48.864 millions

 

 

CIN No.:

[Company Identification No.]

U65991TN2007PLC064133

 

 

PAN No.:

[Permanent Account No.]

AACCT6972H

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing a complete range of investment management and related advisory services.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 152000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. There appear some accumulated losses recorded by the company.

 

However, trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some cautions.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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

 

 

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 Office :

"Jayalakshmi Estates", 29 Haddows Road, Chennai – 600 006, Tamilnadu, India 

Tel. No.:

91-44-42954800

Fax No.:

91-44-42954888

E-Mail :

rs.raghavan@tvs-i.in

gopal.srinivasan@tvs-e.in

Website :

http://www.tvscapital.in

 

 

Head Office :

# 249-A, Ambujammal Street, Off TTK Road, Alwarpet, (Near Alwarpet Post Office), Chennai – 600 018, Tamilnadu, India 

 

 

Mumbai Office :

2nd Floor, Quadrant B Unit 2, IL&FS Financial Centre, Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051, Maharashtra, India

Tel. No.:

91-22-42495800

Fax No.:

91-22-42495888

 

 

DIRECTORS

 

As on 27.09.2011

 

Name :

Mr. Gopal Srinivasan

Father’s Name :

Mr. Srinivasan Trichur Sundaram

Designation :

Managing Director

Address :

West Side House, New No.3, (Old No.2), Adyar Club Gate Road, Chennai – 600 028, Tamilnadu, India

Date of Birth/Age :

04.08.1958

Qualification :

B.Com, MBA

Experience :

25 Years

Date of Appointment :

28.06.2007

PAN No.:

AADPG9543P

DIN No.:

00177699

 

 

Name :

Mr. Sundaram Damodaran Nair

Father’s Name :

Mr. Damodaran Nair

Designation :

Managing Director

Address :

# 1901, 19th Floor, A-Wing, Beaumond, New Prabhadevi Road, Prabhadevi, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

16.04.1953

Qualification :

B.Com, MMS, ICWA, AMP

Experience :

33 Years

Date of Appointment :

04.09.2009

PAN No.:

AANPS7428P

DIN No.:

00016304

 

 

Name :

Mr. Harihara Iyer Lakshmanan

Father’s Name :

Mr. Sivaramakrishnan Harihara Iyer

Designation :

Director

Address :

“Palacio”, Apartment No.D1, (First Floor), No.408 (Old No.216), TTK Road, Alwarpet, Chennai – 600 018, Tamilnadu, India

Date of Birth/Age :

14.08.1933

Qualification :

SSLC

Date of Appointment :

28.06.2007

DIN No.:

00057973

 

 

Name :

Dr. Sridhar Mitta

Designation :

Director

Address :

“Adarsh Palm Meadows”, Villa 143, Phase 1, Ramagondanahallai, Airport-Varathur Road, Bangalore – 560 066, Karnataka, India

Date of Birth/Age :

10.01.1946

Qualification :

M. Tech, MS, PHD

Date of Appointment :

16.09.2007

DIN No.:

00003952

 

 

Name :

Mr. Ramamurthy Thyagarajan

Designation :

Director

Address :

No.12, Besant Road, Off Lloyds Road, Royapettah, Chennai – 600 014, Tamilnadu, India

Date of Birth/Age :

25.08.1937

Qualification :

MSC, ACII

Date of Appointment :

21.10.2007

DIN No.:

00185036

 

 

Name :

Mr. Lakshmi Narayanan Natarajan

Designation :

Director

Address :

New No.30, ABM Avenue, Boat Club, R.A. Puram, Chennai – 600 028, Tamilnadu, India

Date of Birth/Age :

10.03.1953

Qualification :

BS, MS, MBA

Date of Appointment :

21.10.2007

DIN No.:

00580679

 

 

Name :

Mr. Kenneth Tai

Designation :

Director

Address :

4 F 86-2 Sung Kao Road, Taipei, Taiwan, China

Date of Birth/Age :

24.05.1950

Qualification :

BSC, MBA

Date of Appointment :

21.10.2007

DIN No.:

01964412

 

 

Name :

Mr. Puneet Yadu Dalmia

Father’s Name :

Mr. Yadu Hari Dalmia

Designation :

Additional Director

Address :

18, Golf Links, New Delhi – 110 003, India

Date of Birth/Age :

15.10.1972

Qualification :

B. Tech, MBA

Date of Appointment :

15.02.2011

DIN No.:

00022633

 

 

Name :

Mr. Rajeev Gupta

Designation :

Additional Director

Date of Birth/Age :

19.03.1958

Qualification :

MBA, B Tech

Date of Appointment :

11.11.2011

DIN No.:

00241501

 

 

KEY EXECUTIVES

 

 

Employed for a part the year

 

Name :

Mr. Manish Makharia

Designation :

Executive Director

Date of Birth/Age :

40 Years

Qualification :

A.C.A

Experience :

18 Years

 

 

Name :

Mr. G. Ravishankar

Designation :

Chief Finance Officer

Date of Birth/Age :

45 Years

Qualification :

B.sc., A.C.A., Grad. C.W.A

Experience :

24 Years

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 27.09.2011

 

Names of Shareholders

 

Address

No. of Shares

TVS Investments Limited

"Jayalakshmi Estates", 29 Haddows Road, Chennai – 600 006, Tamilnadu, India 

4299940

Gopal Srinivasan

(Nominee of TVS Investments Limited)

West Side House, New No.3, (Old No.2), Adyar Club Gate Road, Chennai – 600 028, Tamilnadu, India

10

H. Lakshmanan

(Nominee of TVS Investments Limited)

“Palacio”, Apartment No.D1, (First Floor), No.408 (Old No.216), TTK Road, Alwarpet, Chennai – 600 018, Tamilnadu, India

10

V.N. Venkatanathan

(Nominee of TVS Investments Limited)

34, Nachiappan Street, Mahalingapuram, Chennai – 600 034, Tamilnadu, India

10

R. Jagannathan

(Nominee of TVS Investments Limited)

No.30 (Old No.17), Kamaraj Street, Dasarathapuram, Saligraman, Chennai – 600 093, Tamilnadu, India

10

R.S. Raghavan

(Nominee of TVS Investments Limited)

No.4, Gokulam Colony, 2, Ramavaram Road, Valasaravakkam, Chennai – 600 087, Tamilnadu, India

10

T.A. Prasannaa

(Nominee of TVS Investments Limited)

No.33, 1st Main Road, CIT Colony, Mylapore, Chennai – 600 004, Tamilnadu, India

10

Gopal Srinivasan

West Side House, New No.3, (Old No.2), Adyar Club Gate Road, Chennai – 600 028, Tamilnadu, India

342000

D. Sundaram

# 1901, 19th Floor, A-Wing, Beaumond, New Prabhadevi Road, Prabhadevi, Mumbai – 400 026, Maharashtra, India

244400

 

Total

4886400

 

As on 27.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

88.00

Directors or relatives of directors

 

12.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing a complete range of investment management and related advisory services.

 

 

Products/ Services :

Item Code No. (ITC Code)

99715123

Product Description

Services for venture capital financing

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

Address :

PWC Centre, 32, Khader Nawaz Khan Road, Nungambakkam, Chennai – 600 006, Tamilnadu, India

Income-tax PAN of auditor or auditor's firm :

AAEFP5579P

 

 

Holding Company :

Sundaram - Clayton Limited, Chennai

 

 

Ultimate Holding Company:

TVS Investments Limited, India (CIN No.: U65191TN1994PLC028851)

 

 

Fellow Subsidiary Companies:

·         TVS Electronics Limited, India (CIN No.: L30007TN1995PLC032941)

·         TVS-E Servicetec Limited, India (CIN No.: U72500TN2007PLC063540)

·         TVS Finance and Services Limited, Chennai

·         TVS-E Access India Limited, Chennai

·         TVS Motor Company Limited, Chennai

·         Anusha Investments Limited, Chennai

·         Sravanna Properties Limited

 

 

Other Related Parties :

·         TVS Shriram Growth Fund, India

·         TVS Private Equity Trust

·         TVS Private Equity I Fund

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- each

Rs.50.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4886400

Equity Shares

Rs.10/- each

Rs.48.864 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

48.864

48.864

48.864

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

1.868

1.173

4] (Accumulated Losses)

(10.970)

0.000

(4.497)

NETWORTH

37.894

50.732

45.540

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

0.000

4.311

1.990

 

 

 

 

TOTAL

37.894

55.043

47.530

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

32.921

35.544

36.270

Capital work-in-progress

0.000

0.420

2.701

 

 

 

 

INVESTMENT

0.250

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

0.000

 

Sundry Debtors
0.000

0.000

0.000

 

Cash & Bank Balances
22.646

40.493

35.821

 

Other Current Assets
7.514

3.067

1.127

 

Loans & Advances
18.431

12.225

10.234

Total Current Assets
48.591

55.785

47.182

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
15.148

7.366

6.961

 

Other Current Liabilities
28.282

28.157

30.443

 

Provisions
0.438

1.183

1.219

Total Current Liabilities
43.868

36.706

38.623

Net Current Assets
4.723

19.079

8.559

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

37.894

55.043

47.530

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from Operations

124.149

118.216

118.215

 

 

Other Income

1.328

1.807

1.342

 

 

TOTAL                                     (A)

125.477

120.023

119.557

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee Benefit Expense

60.069

55.372

120.165

 

 

Other Expenses

77.241

51.986

 

 

 

TOTAL                                     (B)

137.310

107.358

120.165

 

 

 

 

 

Less

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

(11.833)

12.665

(0.608)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

0.104

0.087

0.000

 

 

 

 

 

 

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

(11.937)

12.578

(0.608)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

5.213

5.066

3.322

 

 

 

 

 

 

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

(17.150)

7.512

(3.930)

 

 

 

 

 

Less

TAX                                                                  (H)

(4.312)

2.319

1.703

 

 

 

 

 

 

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

(12.838)

5.193

(5.633)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

0.696

(4.497)

1.136

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

0.696

(4.497)

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(2.63)

1.06

(1.21)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
(10.23)

4.33
(4.71)

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
(13.81)

6.35
(3.32)

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
(21.04)

8.23
(4.71)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.45)

0.15

(0.09)

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.00

0.00

0.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.11

1.52

1.22

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

Yes

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

No

 

 

BACKGROUND:

 

The Company was incorporated on 28th June 2007 under CIN# - U65991TN2007PLC064133 as closely held joint stock company. The objective of the company is to provide a complete range of investment management and related advisory services including but not limited to:

 

(a) identifying potential investment opportunities in Investee Companies in accordance with their respective investment strategy

(b) carrying out appraisal and due diligence of such Investee Companies

(c) managing and administering relationship with its investors including capital call management.

(d) maintenance of books of accounts and preparation of financial statement for funds under management

(e) provide operational value addition to the portfolio companies throughout the investment period and

(f) institute good risk management practices

 

The Company has entered into investment management agreement, to provide non binding investment advisory services in relation to the investments made by TVS Shriram Growth Fund I and TVS Shriram Growth Fund 1B (Funds), schemes of TVS Shriram Growth Fund (Trust) registered with the Securities and Exchange Board of India as a venture capital fund.

 

MANAGEMENT REVIEW FOR THE YEAR

 

BUSINESS PHILOSOPHY

 

The primary objective of the Company is to engage in the business of managing private equity/ venture capital funds and to act as the Investment Manager of such funds for the purposes of making private equity / venture capital investments in unlisted companies engaged in various sectors.

 

As a part of the services, the Company, would aid the Fund/Trust to (a) establish the appropriate fund structure, (b) initiate and execute the fund raising process, (c) initiate the process of identifying investment opportunities, (d) execute investments of various identified transactions, (e) monitor and exit from investments and (f) other related advisory services.

 

PERFORMANCE REVIEW

 

The Company is the Investment Manager of TVS Shriram Growth Fund IA (Fund), a scheme of TVS Shriram Growth Fund (Trust). The Trust was formed on February 1, 2008 and has been registered with Securities and Exchange Board of India (SEBI) as a "Venture Capital Fund".

 

The vision of the Fund is to develop and nurture India s mid-cap businesses into world class companies. The Investments will be primarily in unlisted companies that are at the intersection of high growth sectors driven by India s macro-trends and a developmental theme, such as organizing the unorganized/inefficient sectors, entrepreneur development and providing high quality products to consumers. Fund will target to source proprietary investment opportunities, especially from emerging, high growth cities across India. The Fund expects to be a strategic partner to the entrepreneur and the enterprise to help expand business beyond their existing roots, professionalize their operations and enhance their management team.

 

The Fund has received capital commitments aggregating Rs.5906.800 millions from its investors. The Fund has achieved its final closure on April 30, 2009. The fund has made a total of eleven portfolio investments aggregating Rs.4160.000 millions as on 31st March 2012. The Fund has fully invested the investible amount by May 2012.

 

During the year, the company has been appointed as the Investment Manager for the second fund of the trust, TVS Shriram Growth Fund IB.

 

DEAL FLOW INDUSTRY

 

During the year, about 290 Private Equity deals valued approximately at Rs.476060.000 millions (ex Real Estate deals) were concluded in India.

 

The Fund managed by the Company is one among the leading funds in its space by number of deals done in the FY 2012.

 

TVS SHRIRAM GROWTH FUND: DEAL FLOW

 

TVS Shriram Growth Fund -IA (Fund) has received more than 160 deals in the financial year 2011-12. The Fund continues to see healthy deal inflows from its network of more than 200 intermediaries across the country. The Fund’s deal pipeline continues to be robust with around 35% to 40% of the deals in the focus sectors of the Fund. The deal pipeline changes dynamically and at any point in time, the investment team is in active discussion at various stages with about 4 to 7 companies. In addition to the intermediaries, the Fund also works with professionals with experience in commercial banking Chartered Accountants, CII, SME agencies to source deals. The Fund is also engaged in proactively sourcing potential market leaders in attractive consumer consumption sectors.

 

FIXED ASSETS:

 

Tangible Assets:

·         Furniture and Fittings

·         Computers

·         Office Equipments

·         Vehicles

Intangible Assets

·         Software

 

WEBISTE DETAILS:

 

NEWS/ PRESS RELEASES:

 

TVS CAPITAL FUNDS EXITS LANDMARK

 

Chennai, February, 18:  

 

TVS Capital Funds has sold its stake of close to 25 per cent in Landmark Limited for a consideration of Rs.840.000 millions, post tax.

 

Landmark is a retail chain that sells a range of products such as books, music, jewellery, greeting cards and kitchenware, and is a subsidiary of Trent Limited, a company of the Tata group.

 

Trent said in a filing to the BSE that the company’s board has approved to purchase from TVS Shriram Growth Fund I its entire shareholding of 18.25 lakh shares of Rs.10 each of Landmark Limited.

 

On Monday, the shares of Trent closed at Rs.1145.10 on the BSE, down 1.14 per cent from its previous close.

TVS Capital invested Rs 650.000 millions in Landmark in November 2009.

 

Landmark was promoted by an entrepreneur, Hemu Ramaiah, and was taken over by Trent in 2005.

 

However, TVS Capital has retained its option to buy ‘40 plus’ stake in Westland, a book publisher and a subsidiary of Landmark. “We are likely to exercise this option,” Gopal Srinivasan, founder and Chairman of TVS Capital Funds Limited, told today.

 

The investment in Landmark was made out of a venture capital fund managed by TVS Capital, called TVS Shriram Growth Fund I. This Rs.5900.000 millions fund was formed with investments by the TVS group and the Shriram group of Chennai.

 

The fund targets investments across consumer consumption and business services such as retail, healthcare delivery, education, hospitality, food and agro, FMCG, restaurants, media and entertainment, facilities management and institutional catering and security services.

 

Answering a question, Gopal Srinivasan said the fund has returned Rs.1090.000 millions to the investors.

 

TVS CAPITAL RAISES OVER 5000.000 MILLIONS RUPEES FOR TOP-UP FUND; BEEFS UP TEAM

 

October 5, 2012

 

Chennai-based private equity firm TVS Capital Funds Limited, which manages TVS Shriram Growth Fund-IA, has raised commitments of over Rs.5000.000 millions for its top-up fund with backing from large family offices. TVS Capital launched TVS Shriram Growth Fund-IB last year and expects to make a final close at Rs.5500.000-6000.000 millions in the next 30-45 days, according to Gopal Srinivasan.

 

TVS Capital's chairman and managing director Srinivasan said that TVS Shriram Growth Fund-IB has crossed Rs.5000.000 millions in terms of commitments. The fund has mostly been raised from family offices, whose commitments have ranged from Rs.150.000 millions to Rs.500.000 millions.

 

Sponsors -- TVS Group and Shriram Group -- have committed around Rs.650.000 millions. Family offices have chipped in Rs.2000.000 millions, institutions around Rs.700.000-750.000 millions and the rest came from ultra high net worth individuals (UHNWIs).

 

TVS Capital made the first close of its top-up fund at Rs.3750.000 millions earlier this year and all the funds have been raised from domestic investors. TVS Capital raised its maiden fund (TVS Shriram Growth Fund-1A) of Rs.5000.000 millions in July 2008 and later added another Rs.1000.000 millions. It was one of the first PE funds to be raised completely from domestic investors.

 

BOOSTS TEAM

 

With the second fund approaching final close, TVS Capital has also beefed up its advisory team and added new executives to the team.

 

TVS Capital, which is focused on the domestic consumption market, has roped in former Manipal Global Education CEO Anand Sudarshan and former Yum! Restaurants (which operates KFC and Pizza Hut) MD Sandeep Kohli as fund advisors or venture partners. The addition of Kohli, who has worked at Yum! for 11 years, will give a boost to TVS Capital's investments in Indian Cookery Private Limited and Om Pizzas and Eats Private Limited, while Sudarshan is expected to help the fund chase opportunities in the education space.

 

TVS Capital has also roped in former Dabur CFO S. Raghunathan, who will work with its portfolio companies, as executive director and COO. KPMG Corporate Finance's Shyamal Lahon has joined the team as an associate.

 

It has also appointed B. Soundararajan, founder and chairman of India's largest poultry enterprise Suguna Foods, on its fund advisory board. According to its statement, Soundararajan will help TVS Capital in "investing in emerging India opportunities."

 

DEAL-MAKING

 

TVS Capital has had a busy 2012 as well, with three new investments in Development Credit Bank Limited, Dunar Foods and most recently, in ReGenPowertech. The firm is also nearing closure of another deal and has afew other transactions in the pipeline. It is also looking at a coupleof more exits.

 

Earlier this year, TVS Capital recorded its maiden exit by selling its stake in third-party logistics service provider TVS Logistics Services, where it made 2.23x cash-on-cash returns or an internal rate of return (IRR) of 22.23 per cent. The fund sold its stake to private equity major Kohlberg Kravis Roberts and Co. L.P. (KKR) which, along with existing investor Goldman Sachs, led a Rs.2680.000 millions round in the firm.

 

OM PIZZA APPOINTS NEW CEO [10-07-2012]

 

Mumbai, July 10: 


Om Pizza, a company funded by TVS Capital Funds, has appointed Mr. Tejpavansingh Gandhok as its CEO.
 
Mr. Gandhok, co-founder of Dabur-promoted Litebite Foods, is likely to join the company by next week.

Om Pizza is the master franchisee for Papa Johns Pizza in India as well as Chillis, the popular Tex-Mex restaurants in South and West India. The appointment follows fresh investments made by TVS Shriram Growth Fund 1A in Om Pizza.

 
Mr. Gandhok will provide strategic leadership to Om Pizza.


In his previous role at Litebite, Mr Gandhok helped the start-up company to scale up rapidly to become one of India’s top restaurant chains.


Prior to Litebite, he has worked in senior roles across private equity and consulting firms such as BCG and AT Kearney.

In addition to Mr. Gandhok, Mr. V. Kannan a seasoned HUL veteran, has also joined the team as GM – Commercial and Operations. During his stint at HUL, he headed exports division, indirect taxation and other key roles.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.40

UK Pound

1

Rs.81.57

Euro

1

Rs.71.23 

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--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

 

26

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.