MIRA INFORM REPORT
|
Report Date : |
10.10.2013
|
IDENTIFICATION DETAILS
|
Name : |
ADITYA BIRLA MONEY MART LIMITED (w.e.f. 01.02.2010) |
|
|
|
|
Formerly Known As
: |
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Indian Rayon Compound, Veraval - 362266, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
13.06.1997 |
|
|
|
|
Com. Reg. No.: |
04-062406 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1200.000 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
U61190GJ1997PLC062406 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB8843M |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in Distribution of Financial Products like Mutual Funds, Fixed Deposits, Bonds, IPO, Private Equity and other Alternate Products, Real Estate and Broking and other allied services . |
|
|
|
|
No. of Employees
: |
Information declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Aditya Birla Group a well established and reputed
Group. As per the available Financial, the networth of the company has been
eroded due to continuous accumulated loss incurred from its operations. Their
are huge external borrowings recorded by the company during 2012. The ratings also take into consideration the strong parentage and long
standing experience of the promoters. However, trade relations are reported as fair. Business is active.
Payment are reported to be slow. The company can be considered for business dealings with some caution. |
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) |
|
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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
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
MANAGEMENT NON-COOPERATIVE (Tel.
No.: 91-2876-248895)
LOCATIONS
|
Registered Office : |
Indian Rayon Compound, Veraval – 362266, Gujarat, India |
|
Tel. No. : |
91-2876-248895 |
|
Fax No. : |
91-2876-243220 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
One Indiabulls Centre, Tower-1, 14th Floor, 841, S.B. Marg,
Elphinstone Road, Mumbai - 400013, Maharashtra, India |
|
Tel. No.: |
91-22-43568300 |
|
Fax No.: |
91-22-43568310 |
DIRECTORS
As on 30.08.2012
|
Name : |
Mr. Bishwanath Mangilal Puranmalka |
|
Designation : |
Director |
|
Address : |
Antariksha Appartments, Flat No. 182, 95/96, Kakasaheb Gadgil Road,
Prabhadevi, Mumbai - 400025, Maharashtra, India |
|
Date of Birth/Age : |
02.11.1935 |
|
Date of Appointment : |
28.07.1998 |
|
DIN No.: |
00007432 |
|
|
|
|
Name : |
Mr. Ajay Srinivasan |
|
Designation : |
Director |
|
Address : |
91/101, Narain Terraces, 7th, 8th Floor, Union Park Road, Pali Hill, Bandra
(West), Mumbai - 400050, Maharashtra, India |
|
Date of Birth/Age : |
02.11.1963 |
|
Date of Appointment : |
31.07.2007 |
|
DIN No.: |
00121181 |
|
|
|
|
Name : |
Mr. Pankaj Jawaharlal Razdan |
|
Designation : |
Director |
|
Address : |
Sherwin Ark, Bunglow#3, Bellscot Tower, Opposite Kamath Club,
Lokhandwala Complex, Andheri (West), Mumbai - 400058, Maharashtra, India |
|
Date of Birth/Age : |
16.11.1968 |
|
Date of Appointment : |
23.05.2008 |
|
DIN No.: |
00061240 |
|
|
|
|
Name : |
Mr. Sushil Agarwal |
|
Designation : |
Director |
|
Address : |
Ocean C.H.S Limited, 301, Ocean View Union Park, Khar (West), Mumbai -
400052, Maharashtra, India |
|
Date of Birth/Age : |
13.06.1963 |
|
Date of Appointment : |
03.08.2012 |
|
DIN No.: |
00060017 |
KEY EXECUTIVES
|
Name : |
Mr. Amber Gupta |
|
Designation : |
Secretary |
|
Address : |
C-506, Wing ‘C’, Udyan-III, Co-operative Housing Limited, Udyan
Complex, Off. Military Road, Sakinaka, Mumbai - 400072, Maharashtra, India |
|
Date of Birth/Age : |
11.02.1978 |
|
Date of Appointment : |
01.02.2012 |
|
PAN No.: |
AENPG6177P |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.08.2012
|
Names of Equity Shareholders |
|
No. of Shares |
|
Aditya Birla Financial Services Private Limited, India |
|
19999994 |
|
Aditya Birla Financial Services Private Limited Jointly with ABNL
Investment Limited, India |
|
1 |
|
Aditya Birla Financial Services Private Limited Jointly with Devendra
Bhandari |
|
1 |
|
Aditya Birla Financial Services Private Limited Jointly with Manoj
Shah |
|
1 |
|
Aditya Birla Financial Services Private Limited Jointly with Sudhir
Maheshwari |
|
1 |
|
Aditya Birla Financial Services Private Limited Jointly with S.S.
Pareek, |
|
1 |
|
Aditya Birla Financial Services Private Limited Jointly with Anupam
Gupta |
|
1 |
|
Total |
|
20000000 |
|
Names of Preference Shareholders |
|
No. of Shares |
|
Aditya Birla Financial Services Private Limited, India |
|
100000000 |
|
Total |
|
100000000 |
As on 30.08.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Distribution of Financial Products like Mutual Funds, Fixed Deposits, Bonds, IPO, Private Equity and other Alternate Products, Real Estate and Broking and other allied services . |
||||
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||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
|
|
|
|
Bankers : |
Not Divulged |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
SRBC and Company Chartered Accountants |
|
Address : |
5th Floor, Block B2, Nirlon Knowledge Park, Off Western Express Highway, Goregaon East, Mumbai – 400063, Maharashtra, India |
|
PAN No.: |
ABSFS4151K |
|
|
|
|
Holding company : |
Aditya Birla Financial Services Private Limited CIN No.:U67120GJ2007PTC058890 |
|
|
|
|
Ultimate Holding
company : |
Aditya Birla Nuvo Limited CIN No.: L17199GJ1956PLC001107 |
|
|
|
|
Subsidiary company: |
Aditya Birla Money Insurance Advisory Services Limited CIN No.: U66030GJ2001PLC062240 |
|
|
|
|
Fellow Subsidiary
Company : |
· Aditya Birla Finance Limited CIN No.: U65990GJ1991PLC064603 · Aditya Birla Financial Shared Services Limited CIN No.: U65999MH2008PLC183695 · Aditya Birla Customer Services Private Limited CIN No.: U93000MH2008PTC186669 · Aditya Birla Minacs IT Services Limited CIN No.: U72200KA1976PLC027564 · Aditya Birla Minacs Worldwide Limited CIN No.: U99999KA1995PLC052040 · Aditya Birla Insurance Brokers Limited CIN No.: U99999GJ2001PLC062239 · Birla Sun Life Insurance Company Limited CIN No.: U99999MH2000PLC128110 · Aditya Birla Money Limited CIN No.: L65993GJ1995PLC064810 · Aditya Birla Commodities Broking Limited CIN No.: U51501GJ2003PLC065196 · ABNL Investment Limited CIN No.: U65910GJ1994PLC022685 |
|
|
|
|
Joint Venture : |
· Birla Sun Life Asset Management Company Limited CIN No.: U65991MH1994PLC080811 |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
100000000 |
Preference Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.0000 Millions |
|
100000000 |
Preference Shares |
Rs.10/- each |
Rs.1000.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1200.000
Millions |
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 |
|
1200.000 |
200.000 |
|
(b) Reserves & Surplus |
|
(1326.373) |
(1162.164) |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
|
0.000 |
1000.000 |
|
Total Shareholders’
Funds (1) + (2) |
|
(126.373) |
37.836 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
424.300 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term
liabilities |
|
8.986 |
0.000 |
|
(d) long-term
provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
433.286 |
0.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
0.000 |
221.300 |
|
(b) Trade
payables |
|
81.923 |
122.855 |
|
(c) Other
current liabilities |
|
13.939 |
41.442 |
|
(d) Short-term
provisions |
|
9.564 |
2.218 |
|
Total Current
Liabilities (4) |
|
105.426 |
387.815 |
|
|
|
|
|
|
TOTAL |
|
412.339 |
425.651 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
39.151 |
47.356 |
|
(ii)
Intangible Assets |
|
0.063 |
2.847 |
|
(iii)
Capital work-in-progress |
|
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
4.900 |
4.900 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
212.729 |
25.731 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
256.843 |
80.834 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c) Trade
receivables |
|
43.475 |
73.512 |
|
(d) Cash
and cash equivalents |
|
44.076 |
29.583 |
|
(e)
Short-term loans and advances |
|
67.945 |
241.722 |
|
(f) Other
current assets |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
155.496 |
344.817 |
|
|
|
|
|
|
TOTAL |
|
412.339 |
425.651 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
200.000 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
38.372 |
|
|
4] (Accumulated Losses) |
|
|
(164.289) |
|
|
NETWORTH |
|
|
74.083 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
80.000 |
|
|
TOTAL BORROWING |
|
|
80.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
154.083 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
58.021 |
|
|
Capital work-in-progress |
|
|
0.228 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
4.902 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
81.000
|
|
|
Cash & Bank Balances |
|
|
11.383
|
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
137.003
|
|
Total
Current Assets |
|
|
229.386
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
108.066
|
|
|
Other Current Liabilities |
|
|
24.902
|
|
|
Provisions |
|
|
5.486
|
|
Total
Current Liabilities |
|
|
138.454
|
|
|
Net Current Assets |
|
|
90.932
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
154.083 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
517.660 |
643.670 |
528.202 |
|
|
|
Other Income |
20.752 |
1.413 |
5.005 |
|
|
|
TOTAL |
538.412 |
645.083 |
533.207 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
398.452 |
|
|
|
|
|
Other expenses |
292.103 |
348.018 |
|
|
|
|
TOTAL |
690.555 |
667.860 |
612.748 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
(152.143) |
(22.777) |
(79.541) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
0.725 |
27.316 |
9.661 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(152.868) |
(50.093) |
(89.202) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
11.423 |
12.718 |
12.807 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEMS |
0.000 |
973.219 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(164.291) |
(1036.030) |
(102.009) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(0.082) |
0.217 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(164.209) |
(1036.247) |
(102.009) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1200.536) |
(164.289) |
(62.280) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(1364.745) |
(1200.536) |
(164.289) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(8.21) |
(51.81) |
(6.60) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(30.50)
|
(160.60)
|
(19.13)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(31.74)
|
(160.96)
|
(19.31)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(40.32)
|
(246.23)
|
(35.49)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.30
|
(27.38)
|
(1.38)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(3.36)
|
5.85
|
1.08
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.47
|
0.89
|
1.66
|
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 |
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 |
No |
CURRENT MATURITIES OF
LONG TERM DEBTS : NOT AVAILABLE
INDEX OF CHARGES : NO
CHARGES EXIST FOR COMPANY
UNSECURED LOANS
|
PARTICULAR |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
LONG TERM
BORROWING |
|
|
|
Rupee term loans from others |
424.300 |
0.000 |
|
|
|
|
|
SHORT TERM
BORROWING |
|
|
|
Rupee term loans from others |
0.000 |
221.300 |
|
Total |
424.300 |
221.300 |
NOTE
Registered office of the company has been shifted from One India Bulls Centre, Tower 1, 14 Floor, Jupiter Mill Compund, 841 Senapati Bapat marg, Elphinstone Road, Mumbai 400013, Maharashtra, India to the present address w.e.f. 04.08.2010
CORPORATE INFORMATION
The Company is a Public Company domiciled in India and incorpoarted under the provisions of the Companies Act, 1956. It is engaged in Distribution of Financial Products like Mutual Funds, Fixed Deposits, Bonds, IPO, Private Equity and other Alternate Products, Real Estate and Broking and other allied services .
BUSINESS PERFORMANCE
The Company achieved a gross revenue of Rs. 538.400 Millions during the year as against the gross revenue of Rs. 645.100 Millions during the previous year, a decrease of 19%. Total expenditure reduced marginally to Rs. 691.200 Millions as compared to Rs. 695.200 Millions during the previous year. As a result, the total loss before depreciation and tax was Rs. 152.800 Millions as against a loss of Rs. 50.100 Millions in the previous year. This increase in loss was primarily due to continuous downside witnessed in domestic equities participation which resulted in de growth of AUM of Mutual Funds, thus impacting overall revenue. The Company however continues to expand its distribution channel across various asset classes of financial products and range of product offering for its clients. During the year, the Company mobilized aggregate funds under different asset classes to the tune of Rs. 1975380.000 Millions. The Mutual Fund Assets Under Advice (AUA) as at March 31, 2012 was Rs. 125450.000 Millions as against Rs. 138610.000 Millions last year, a decrease of 9.5%. The market share of the Company’s closing AUA stood at 2.14%, which makes it 3rd largest Corporate Distributors in terms of closing AUA as on 31st March 2012 (as per CAMS report).
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMY & MARKET
On the economic front, industrial growth slowed down to 3.5% for the year as slowdown in the global economy hit growth everywhere. The high level of inflation and the high interest rates also impacted the economy. GDP growth for FY12 is estimated at around 7% even as the third quarter GDP came in at 6.10%, its lowest quarterly growth since 2009. Markets witnessed a lot of turbulence as they saw spirited rallies and frenetic sell offs. Nifty ended down by 9.20% in FY 12 one of the worst performers in the global and emerging markets. the Rupee weaken by almost 17% from Rs. 45 a dollar to touch Rs. 54.50 levels (all time low for the rupee) and ending the year down 14%. The IIP number for the whole year was at 2.8% and inflation moderated to 7%. In the last quarter of FY 11-12, market saw some momentum and RBI stance of soft policy helped to make gains for some time. However weak global developments and policy issues are not helping in revival of the market. The sovereign debt problem in Europe fueled much of the volatility that investors experienced during the year, as the worries for countries like Greece, Portugal, Ireland and Spain in repayment of their debt overshadowed the world economics and the contagion spread into more established countries like Italy and France as well. The US markets comparatively performed better as it delivered positive returns and it’ s rally was supported by strong economic rebound and growth. Chinese economy however showed signs of slowdown and the growth rate had fallen drastically to a single digit due to weaker domestic and external demand. Crude and oil prices also remained up during the year to touch a multi year high of USD 130 per barrel. India is expected to grow by 6.9% for FY12 and 7.50% in FY13 as liquidity improves, reforms take place and the Indian macroeconomic indicators are starting to show signs of improvement. While the long term potential of Indian economy remains strong and current level of low growth and weak sentiments will remain for a while till investment climate improves globally as well as in India.
BUSINESS OUTLOOK
These regulatory changes remain dynamic and may change the overall structure for investment management as well as the distribution industry. The state of equity market will be the key for growth. Though the MF industry continues to be under pressure and the revenue is at the decline, the Company has plans to strengthen its wealth management segment, streamline its retail distribution network, focus on client acquisition and engagement through its product offering across all segments, improved processes to increase the revenue stream and at the same time work on cost optimization measures.
FIXED ASSETS
v
Tangible
assets
· Furniture and Fixtures
· Vehicles
· Office Equipment
v
Intangible
Assets
· Brands and Trade Marks
· Computer Software
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.61.92 |
|
|
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.83.92 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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.