MIRA INFORM REPORT

 

 

Report Date :

30.10.2013

 

IDENTIFICATION DETAILS

 

Name :

FEDBANK FINANCIAL SERVICES LIMITED

 

 

Registered Office :

Federal Towers, Alwaye, Ernakulam – 683101, Kerala

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

17.04.1995

 

 

Com. Reg. No.:

09-008910

 

 

Capital Investment / Paid-up Capital :

Rs.1900.000 Millions

 

 

CIN No.:

[Company Identification No.]

U65910KL1995PLC008910

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in Providing Gold Loan, Loan Against Property, Home Loan, Car Loan.

 

 

No. of Employees :

800 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 7691000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject operates as a subsidiary of Federal Bank Limited.

 

It provides financial products and services. It is well established and reputed company having a fine track record. Company gets good support from its holding company. Creditworthiness of the company is good. Fundamentals are strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered for good business dealing 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

 

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

 

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

 

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

 

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

 

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

 

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

 

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

A1+ (Short Term Debt)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

December 11, 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 PARTED BY

 

Name :

Mr. Amol Deshpande

Designation :

Treasury Manager

Contact No.:

91-22-42930799

Date :

29.10.2013

 

 

LOCATIONS

 

Registered Office :

Federal Towers, Alwaye, Ernakulam – 683101, Kerala, India

Tel. No.:

91-22-42930700

Fax No.:

91-22-26524144

E-Mail :

dilip.maloo@fedfina.com

amol.deshpande@fedfina.com

Website :

www.fedfina.com

Location :

Owned

 

 

Corporate Office :

C-6, Laxmi Tower, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-42930799

 

 

Branch :

The subject has 163 gold loan branches

 

Located at:

·         Karnataka

·         Andhra Pradesh

·         Tamilnadu 

 

 

DIRECTORS

 

As on: 04.06.2013

 

Name :

Mr. Suresh Muthukrishna Kumar

Designation :

Director

Address :

H. H. SH. Hamadan Bin Rashid Villa, 352/26B, Jumeirah Area, N R Arenco Villas, Villa-05(76), Dubai, UAE

Date of Birth/Age :

08.07.1950

Date of Appointment :

24.08.2007

DIN No.:

00494479

 

 

Name :

Mr. Mohammad Yousuf Khan

Designation :

Director

Address :

S-378, Panchsheel Park, New Delhi – 110017, India

Date of Birth/Age :

24.06.1944

Date of Appointment :

13.09.2010

DIN No.:

00570339

 

 

Name :

Mr. Shyam Srinivasan

Designation :

Director

Address :

101, Nagarjuna Apartments, 36 Ram N St. T Nagar, Chennai – 600017, Tamilnadu, India

Date of Birth/Age :

02.02.1962

Date of Appointment :

03.08.2011

DIN No.:

02274773

 

 

Name :

Mr. Sudhir Joshi

Designation :

Director

Address :

1705, Tower A, Dosti Elite, Near Sion, Telephone Exchange, Sion, Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

27.02.1947

Date of Appointment :

04.06.2013

DIN No.:

00349597

 

 

Name :

Prof. Abraham Koshy

Designation :

Director

Address :

House – 409, Indian Institute of Management, Vastrapur – 380015, Gujarat, India

Date of Birth/Age :

18.01.1953

Date of Appointment :

04.06.2013

DIN No.:

00471385

 

 

KEY EXECUTIVES

 

Name :

Mr. Amol Deshpande

Designation :

Accounts Manager

 

 

Name :

Mr. Dilip Kr Radheshyam Maloo

Designation :

Secretary

Address :

C-106, Gayatri Shivam Co-operative Housing Society Limited, 90 Feet Road, Near Sai Hospital, Thakur Complex, Kandivali (East), Mumbai -  400101, Maharashtra, India

Date of Birth/Age :

04.07.1980

Date of Appointment :

13.05.2010

PAN No.:

AKHPM9725B

 

 

Name :

Mr. Pradosh Kumar Radhamohan Mohapatra

Designation :

Manager

Address :

41, Aishwarya Towers, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India

Date of Birth/Age :

05.05.1955

Experience :

01.10.2011

PAN No.:

AENPM6545B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 04.06.2013

 

Names of Shareholders

No. of Shares

The Federal Bank Limited, India

189999595

Ganapathy Kumar Girish Jointly with The Federal Bank Limited, India

1

Joha C P Jointly with The Federal Bank Limited, India

100

Jagadeesan S T Jointly with The Federal Bank Limited, India

1

Srinivasan Tirunelvelu Shyam Jointly with The Federal Bank Limited, India

200

Varghese I K Jointly with The Federal Bank Limited, India

1

Kumar Muthukrishna

100

Ashuthosh Khajuria

1

Abraham Chacko

1

 

 

Total

190000000

 


As on: 04.06.2013

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Nationalised or other banks

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in Providing Gold Loan, Loan Against Property, Home Loan, Car Loan.

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

No. of Employees :

800 (Approximately)

 

 

Bankers :

·         IDBI Bank Limited, 224 A Mittal Court , A Wing, Nariman Point, Mumbai – 400021, Maharashtra, India

·         The Federal Bank Limited, Federal Towersp B No 103, Alwaye, Eranakulam – 683101, Kerala, India

·         Karur Vysya Bank, Bandra (West), Mumbai, Maharashtra, India

 

 

Facilities :

Secured Loan

31.03.2013

[Rs. in Millions]

31.03.2012

[Rs. in Millions]

Short Term Borrowing

 

 

Loans repayable on demand from banks

 

 

From IDBI

320.030

250.082

From Karur Vysya Bank

200.514

0.000

 

 

 

Loans and advances from related parties

 

 

Cash and credit from federal Limited

2279.701

1345.957

 

 

 

Total

2800.245

1596.039

 

NOTE:

 

The above facilities are secured by way of hypothecation on Gold Loan Receivables.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Varma and Varma

Chartered Accountants

Address :

Sriniketan, Nettipadam Road, P B No.2350, Kochi – 682016, Kerala, India

PAN No. :

AABFV9555E

 

 

Holding Company :

The Federal Bank Limited

CIN No.: L65191KL1931PLC000368

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

190000000

Equity Shares

Rs.10/- each

Rs. 1900.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

190000000

Equity Shares

Rs.10/- each

Rs.1900.000 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1900.000

1900.000

350.000

(b) Reserves & Surplus

22.940

(35.653)

38.094

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

1922.940

1864.347

388.094

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

2.526

1.217

1.598

Total Non-current Liabilities (3)

2.526

1.217

1.598

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2800.245

1596.039

0.000

(b) Trade payables

51.539

26.892

21.751

(c) Other current liabilities

35.134

55.737

49.771

(d) Short-term provisions

117.623

26.678

0.672

Total Current Liabilities (4)

3004.541

1705.346

72.194

 

 

 

 

TOTAL

4930.007

3570.910

461.886

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

124.950

106.900

30.356

(ii) Intangible Assets

21.100

2.051

0.668

(iii) Capital work-in-progress

0.000

24.508

9.149

(iv) Intangible assets under development

2.739

12.510

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

11.887

0.000

0.853

(d)  Long-term Loan and Advances

95.085

56.561

32.212

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

255.761

202.530

73.238

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

7.981

10.734

26.054

(d) Cash and cash equivalents

102.358

82.130

275.895

(e) Short-term loans and advances

4560.025

3267.568

70.438

(f) Other current assets

3.882

7.948

16.261

Total Current Assets

4674.246

3368.380

388.648

 

 

 

 

TOTAL

4930.007

3570.910

461.886

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

0.884

0.376

145.556

 

 

Other Income

0.003

0.001

9.600

 

 

TOTAL                                    

0.887

0.377

155.156

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee Benefit Expenses

0.213

0.156

52.726

 

 

Other Expenses

0.242

0.170

79.334

 

 

TOTAL                                    

0.455

0.326

132.060

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

0.432

0.051

25.096

 

 

 

 

 

Less

FINANCIAL EXPENSES                        

0.213

0.103

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

0.219

(0.052)

25.096

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

0.038

0.021

2.277

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX

0.181

(0.073)

22.819

 

 

 

 

 

Less

TAX                                                                 

0.040

0.001

8.936

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX

0.141

(0.074)

13.883

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

28.211

17.105

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

NA

2.777

 

BALANCE CARRIED TO THE B/S

NA

NA

28.211

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.74

(1.12)

0.85

 

 


KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

15.89

(19.63)

8.95

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

20.40

(19.41)

15.68

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.00

0.00

5.05

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.00

(0.00)

0.06

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.46

0.86

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.43

1.97

5.38

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE:

 

Current Maturities of Long Term Borrowing are not available.

 

 

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/ Two  years

Yes

12]

Profitability for last three/ Two  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

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

INDEX CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10389807

20/11/2012

250,000,000.00

THE KARUR VYSYA BANK LIMITED

Central Loan Processing Cell Mumbai,, Kamanwala Chamber, Fort, Mumbai, Maharashtra - 400001, INDIA

B63267512

2

10349100

29/03/2012

500,000,000.00

IDBI Bank Limited

224 A Mittal Court , A Wing, Nariman Point, MUMBAI, Maharashtra - 400021, INDIA

B37382561

3

10290646

07/09/2013 *

2,000,000,000.00

THE FEDERAL BANK LTD

FEDERAL TOWERSP B NO 103, ALWAYE, ERANAKULAM, Kerala - 683101, INDIA

B85936615

 

* Date of charge modification

 

 


FIXED ASSETS:

 

TANGIBLE ASSETS

 

·         Leasehold Improvement

·         Furniture and Fixture

·         Vehicles – Cars

·         Office Equipments

·         Computers

 

INTANGIBLE ASSETS

 

·         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, 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.61.46

UK Pound

1

Rs.98.99

Euro

1

Rs.84.74

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

ANK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

54

 

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.