MIRA INFORM REPORT

Report Date :

23.05.2013

IDENTIFICATION DETAILS

Name :	CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED (w.e.f. 10.10.2007)
Formerly Known As :	CANBANK INVESTMENT MANAGEMENT SERVICES LIMITED
Registered Office :	Construction House, 4^th Floor, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai-400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	02.03.1993
Com. Reg. No.:	11-071003
Capital Investment / Paid-up Capital :	Rs. 201.044 Millions
CIN No.: [Company Identification No.]	U65990MH1993PLC071003
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Investment Management Company
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1800000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a joint venture between Canara Bank, India and Robeco Group N.V, Netherlands. It is an established company having a satisfactory track record. There appears drastic dip in the profitability during 2012. However, Networth of the company seems to be fair. Trade relations are fair. Business is active. Payments terms are usually correct and as per commitment. The company can be considered normal 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	CARE
Rating	Short term bank facility: A1+
Rating Explanation	Very strong degree safety and lowest credit risk.
Date	16 January 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Suhas
Designation :	Account Department
Contact No.:	91-22-66585000
Date :	22.05.2013

LOCATIONS

Registered Office :	Construction House, 4^th Floor, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-66585000
Fax No.:	91-22-66585011/5013
E-Mail :	crmf@canararobeco.com jignesh.modi@canararobeco.com
Website:	http://www.canararobeco.com
Location:	Owned
Sales Office:	Ground Floor, Construction House, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-66585000
Fax No.:	91-22-66585012
Sales / Branch Office :	Located At: · Kolkata · Ahmedabd · Mumbai · Surat · Chandigarh · Bangalore · Mangalore · Goa · Pune · Indore · New Delhi · Chennai · Hyderabad · Kochi · Bhopal · Coimbatore · Nagpur · Patna · Ludhiana · Trichy · Vadodara · Visakhapatnam

DIRECTORS

As on 31.03.2012

Name :	Mr. S. Raman
Designation :	Chairman
Address :	Canara Bank House No.72, Opposite Krishna Rao Park, Kanakapura Road, Basavanagudi, Bangalore-560004, Karnataka, India
Date of Birth/Age :	07.09.1952
Date of Appointment :	15.09.2010
Name :	Mr. M. A. K. Prabhu
Designation :	Director
Qualification:	B.Com, CAIIB, PG Diploma in Management
Name :	Ms. Hester Wendela Deseree Gillia Borrie
Designation :	Director
Address :	Apollolaan 52, Amsterdam
Date of Birth/Age :	18.11.1969
Date of Appointment :	10.12.2009
Name :	Mr. Deveshwer Kumar Kapila
Designation :	Director
Address :	C-4, 1^st Floor, Jangapura Extension, New Delhi-110014, India
Date of Birth/Age :	03.05.1991
Date of Appointment :	20.12.2008
Name :	Mr. V.H. Ramakrishnan
Designation :	Director
Address :	Flat No. 1005, Block 2A, SMR Vinay City, Bollaram Road, Miyapur, Hyderabad-500049, Andhra Pradesh, India
Date of Birth/Age :	13.04.1941
Qualification:	B. Sc., ACA, AICWA
Date of Appointment :	29.09.2009
Name :	Mr. Shital Kumar Jain
Designation :	Director
Address :	5/10, 2^nd Floor, Shantiniketan, New Delhi-110021, India
Date of Birth/Age :	12.11.1939
Qualification:	MBA, Indiana University, U.S. A. Dean's List
Date of Appointment :	10.12.2009
Name :	Mr. Antony Edwards
Designation :	Director
Qualification:	B.Sc. (Hon) - Business Information Technology (Central University of Lancashire) Finance programme (London Business School)
Name :	Mr. Sambasivan Venkatachalam
Designation :	Director
Qualification:	B.Com (University of Madras), CA

KEY EXECUTIVES

Name :	Mr. Rajnish Narula
Designation :	Chief Executive Officer
Qualification:	MBA from Iona College, New York
Name :	Mr. Edwin Rietkerk
Designation :	Chief Operating Officer
Qualification:	Certification on Management and Organisation from the University of Groningen, Netherlands
Name :	Mr. Y. Sambasiva Rao
Designation :	Divisional Manager - Canara Bank (On Deputation)
Name :	Mr. Suhas
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2010

Names of Shareholders	No. of Shares
Canara Bank, India	10251222
Robeco India Holding B.V., Netherlands	9746778
Canara Bank, India	800
Robeco India Holding B.V., Netherlands	104352
T. Sreek Anthan Jointly With Canara Bank, India	200
Robeco Direct NV, Netherlands	1
Robeco International Holding NV, Netherlands	1
Robeco Nederland BV, Netherlands	1
Robeco Groep NV, Netherlands	1
Robeco Institutional Asset Management BV, Netherlands	1
M. Ramkumar Jointly With Canara Bank, India	200
Dennis Rodrigues Jointly With Canara Bank, India	200
V. Sundaresan Jointly With Canara Bank, India	200
D. Muralidhar Rao Jointly With Canara Bank, India	200
K R. Rao Jointly With Canara Bank, India	200
Total	20104357

BUSINESS DETAILS

Line of Business :	Investment Management Company
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	250 (Approximately)
Bankers :	HDFC Bank Limited, Mumbai, Maharashtra ,India
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Khimji Kunverji and Company Chartered Accountants
Address :	Suite No. 52, Bombay Mutual Building, P.M. Road, Fort, Mumbai-400001, Maharashtra, India
Holding Company:	· Canara Bank
Fellow Subsidiaries:	· Canbank Computer Services Limited (CCSL) · Canbank Financial Services Limited (CFSL) · Canbank Factors Limited (CFL) · Canbank Venture Capital Fund Limited (CVCFL) · Canara Bank Securities Limited (CBSL) · Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited (CHOBCI)
Entity having significant Influence over the Company:	· Robeco Groep N.V. (49% J.V. Partner) · Robeco India Holding B.V.
Under Common Control of Holding Company:	Canfin Homes Limited (CHL)
Under the common control of entity having significant Influence over the company:	· Robeco Hongkong Limited · Robeco Institutional Asset Management B.V.
Overseas Joint Venture:	Commercial Bank of India LLC
Mutual Fund managed by the company:	Canara Robeco Mutual Fund (Schemes)

CAPITAL STRUCTURE

As on 21.09.2012

Authorised Capital : Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.498.544 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10253222	Equity Shares	Rs.10/- each	Rs.102.532 Millions
9851135	Shares held by Robeco India Holding B.V	Rs.10/- each	Rs.98.511 Millions
	Total		Rs.201.044 Millions

Note:

The Company has only one class of shares referred to as equity shares. Each holder of equity shares is entitled to one vote per share. The details of shareholder holding more than 5 % shares as at March 31, 2012 are set out below:

Name of the shareholder	As at 31^st March 2012
	No. of shares	% held
Canara Bank	10,252,022	51
Robeco India Holding B V	9,851,130	49

The reconciliation of the number of shares outstanding and the amount of share capital as at March 31, 2012 is set out below:

Particulars	As at 31st March 2012
Number of shares at the beginning Add : During the year Closing at the year end	20,104,357 NIL 20,104,357

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		201.044	201.044	201.044
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		249.999	208.033	147.004
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		451.043	409.077	348.048
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		7.848	9.595	0.000
TOTAL		458.891	418.672	348.048
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		59.144	64.076	94.228
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		346.383	283.106	202.033
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	43.131	39.902	28.954
	Cash & Bank Balances	2.771	9.969	9.322
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	89.790	101.556	103.514
Total Current Assets		135.692	151.427	141.790
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.204
	Other Current Liabilities	79.906	75.912	85.824
	Provisions	2.422	4.025	3.975
Total Current Liabilities		82.328	79.937	90.003
Net Current Assets		53.364	71.490	51.787
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		458.891	418.672	348.048

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	399.261	402.815
		Other Income	26.931	67.223
		TOTAL	426.192	470.038	381.618
Less	EXPENSES
		Employee benefits expense	221.292	190.118
		Other expenses	148.324	184.077
		Extraordinary Items	0.000	0.198
		TOTAL	369.616	374.393	298.207
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		56.576	95.645	83.411
Less/ Add	DEPRECIATION/ AMORTISATION		10.203	9.467	9.598
	PROFIT BEFORE TAX		46.373	86.178	73.813
Less	TAX		4.407	25.149	10.314
	PROFIT AFTER TAX		41.966	61.029	63.499
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		89.923	28.894	(33.397)
	BALANCE CARRIED TO THE B/S		131.890	89.923	30.102
	EARNINGS IN FOREIGN CURRENCY
		Advisory Fees, Consultancy Fees	24.649	19.839	0.891
	Earnings Per Share (Rs.)		2.09	3.04	5.55

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	9.85	12.98	16.64
Net Profit Margin (PBT/Sales)	(%)	11.61	21.39	NA
Return on Total Assets (PBT/Total Assets}	(%)	34.18	56.91	52.06
Return on Investment (ROI) (PBT/Networth)		0.10	0.21	0.21
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		1.65	1.89	1.58

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors	0.000	0.000	0.204
Total	0.000	0.000	0.204

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
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

BUSINESS RESULTS and DIVIDEND:

For the year ended March 31, 2012 the revenue of the company by way of management fees and other income earned was at Rs. 426.191 Millions as compared to Rs. 470.004 Millions earned in the year ended March 31, 2011. The average assets under management stood at Rs. 744.628 Millions (previous year: Rs. 755.315 Millions).

The company has incurred expenses over the past year to the tune of Rs. 379.819 Millions as compared to Rs. 383.661 Millions incurred in the last financial year. While expenditure under personnel costs were kept under tight control, one of the significant items under expenditure was the marketing and distribution expenses incurred although the same was the lower than the previous year (FY 2011-12: Rs. 26.586 Millions; FY 2010-11: Rs. 56.421 Millions).

In view of the need to conserve resources of the Company to meet planned expenditure, the Directors express their inability to recommend any dividend for the year ended 31st March, 2012.

OPERATIONS:

In tune with the market demand, the following schemes were launched during the year:

Name	Type	Initial Subscription
Canara Robeco Yield Advantage Fund	Open Ended Debt Fund	Rs. 129.784 Millions
Canara Robeco Gold Exchange Traded Fund	Open Ended Exchange Traded Fund	Rs. 106.000 Millions
Canara Robeco Fixed Maturity Plan -Series 7 (Plan A)	Close Ended Fixed Maturity Debt Scheme	Rs. 2069.200 Millions

Apart from capital appreciation under growth plans of various Schemes and daily/weekly dividends in Canara Robeco Liquid, Canara Robeco

Treasury Advantage, Canara Robeco Floating Rate and Canara Robeco Interval Funds and Canara Robeco Fixed Maturity Plans, the following Schemes declared dividends during the year under dividend plans:

· Canara Robeco Gilt Advantage Fund: Rs. 0.07 per unit (7%)

· Canara Robeco InDiGo Fund: Rs. 0.10 per unit (10%)(four times during the year)

· Canara Robeco Income: Rs. 0.30 per unit (30%) (four times during the year)

· Canara Robeco Monthly Income Plan: Rs. 0.30 per unit (30%) (four times the year)

· Canara Robeco Dynamic Bond: Rs. 0.20 per unit (2%)

· Canara Robeco Balance: Rs. 1.50 per unit (15%)

· Canara Robeco Equity Diversified: Rs. 1.00 per unit (10%)

· Canara Robeco Equity TaxSaver: Rs. 1.00 per unit (10%)

As on 31st March, 2012, the Company was managing 24 schemes of Canara Robeco Mutual Fund, of which 12 were debt oriented schemes, 7 were equity oriented schemes and 4 were hybrid schemes and 1 was an Exchange Traded Fund.

As on 31st March, 2012, the Average Assets under Management of Canara Robeco Mutual Fund stood at Rs. 74462.800 Millions (previous year: Rs. 75531.500 Millions).

RECOGNITION AND AWARDS:

The Canara Robeco Investment Team delivered good performance throughout the year in the fixed income class. This performance has been recognized by the awards conferred upon us recently.

Canara Robeco Income Fund and Canara Robeco Floating Rate were awarded the Best Fund in Intermediate Bond category and Ultra short term Bond Category by Morning Star at the Morningstar India Awards 2012 ceremony held in February 2012. Also, Mr. Ritesh Jain (Head - Fixed Income) was accorded as the "Debt Fund Manager of the Year" at the CNBC TV 18 - CRISIL Mutual Fund Awards 2012.

FIXED ASSETS

• Residential Flats
• Office Equipments
• Air Conditioners
• Computers and Peripherals
• Electrical Fittings
• Furniture and Fixtures
• Motor Vehicles
• Leasehold Improvements

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 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 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] 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.55.52
UK Pound	1	Rs.84.09
Euro	1	Rs.71.67

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		46

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.