MIRA
INFORM REPORT
|
Report Date : |
20.08.2014 |
IDENTIFICATION DETAILS
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Name : |
SPANDANA SPHOORTY FINANCIAL LIMITED (w.e.f. 03.01.2008) |
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Formerly Known
As : |
SPANDANA SPHOORTY INNOVATIVE FINANCIAL SERVICES LIMITED |
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Registered
Office : |
Plot No:79, Care Crystal,Vinayak Nagar Colony, Gachibowli,
Near Indira Nagar Bus Stop, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
10.03.2003 |
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Com. Reg. No.: |
01-040648 |
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Capital
Investment / Paid-up Capital : |
Rs.9599.808 Millions |
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CIN No.: [Company Identification
No.] |
U65929AP2003PLC040648 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
The Company is engaged in the business of micro finance, providing
small value unsecured loans. |
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No. of Employees
: |
Information denied by management |
RATING & COMMENTS
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MIRA’s Rating : |
Ca (15) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The company is continuously incurring heavy losses which has resulted
in to fully erosion of net worth. However, business is active. Payment terms are reported to be slow. The company can be considered for business dealings on a secured 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.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization policies.
A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating = D |
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Rating Explanation |
Lowest credit quality. Very low prospects of
recovery. |
|
Date |
10.07.2013 |
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
31-03-2014.
INFORMATION DENIED
Management Non-Cooperative (Tel No.: 91-40-44386648)
LOCATIONS
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Registered Office : |
Plot No:79, Care Crystal,Vinayak Nagar Colony, Gachibowli,
Near Indira Nagar Bus Stop, Hyderabad - 500032, Andhra Pradesh, India |
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Tel. No.: |
91-40-44386648 / 44356666 |
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Fax No.: |
91-40-44386640 |
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E-Mail : |
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Website : |
DIRECTORS
As on 27.09.2013
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Name : |
Mrs. Padmaja Gangireddy |
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Designation : |
Managing Director |
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Address : |
Express Towers, 3rd Floor, Flat No. 305, South Block, White Field,
Kondapur, Hyderabad – 500032, Andhra Pradesh, India |
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Date of Birth/Age : |
14.01.1967 |
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Date of Appointment : |
01.04.2010 |
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DIN No.: |
00004842 |
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Other Directorship:
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Name : |
Ms. Abanti Mitra |
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Designation : |
Additional Director |
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Address : |
Flat No.B‐1201 Floor 12TH, Oberoi Woods Mohan, Gokhale
Road, Goregoan East, Mumbai – 400063, Maharashtra, India |
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Date of Birth/Age : |
01.01.1955 |
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Date of Appointment : |
27.09.2013 |
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DIN No.: |
02305893 |
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Other Directorship:
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Name : |
Mr. Khazan Singh Singhwan |
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Designation : |
Nominee Director |
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Address : |
602, 6th Floor, Infinity Park, ICICI Apartments, 244 Bhandar Galli, Mahim
West, Mumbai – 400016, Maharashtra, India |
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Date of Birth/Age : |
08.06.1951 |
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Date of Appointment : |
28.06.2013 |
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DIN No.: |
02435323 |
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Other Directorship:
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Name : |
Mr. Lakshmi Narasaiah Gunturu |
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Designation : |
Director |
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Address : |
2‐223/35, Poranki,
Ganganamma Temple, V Puram Colony, Brahmamgari Temple, Krishna - 521 137,
Andhra Pradesh, India |
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Date of Birth/Age : |
15.06.1961 |
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Date of Appointment : |
05.09.2011 |
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DIN No.: |
03567778 |
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Other Directorship:
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KEY EXECUTIVES
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Name : |
Mr. Krishna Murali Narne |
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Designation : |
Company Secretary |
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Address : |
Flat No. 204, Triveni Apartments, 8‐3‐969/1,
Sri Nagar Colony, Hyderabad – 500073, Andhra Pradesh, India |
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Date of Birth/Age : |
15.05.1971 |
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Date of Appointment : |
14.09.2013 |
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PAN No.: |
AXDPS1309L |
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Audit, Compliance and Corporate Governance Committee : |
· Mr. KJ Taori · Mr. Avinash Umapathy · Mr. Lakshmi Narsaih · Mr. Siddharth Kothari ·
Ms. Abanti Mitra |
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Remuneration and
Nomination Committee : |
· Mr. KJ Taori · Mr. Avinash Umapathy · Mr. Siddharth Kothari · Ms. Abanti Mitra ·
Mr. K S Singhwan |
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Risk and Fraud
Control and Monitoring Committee : |
· Mr. K.J Taori · Mrs. Padmaja Reddy · Mr. Avinash Umapathy · Mr. Siddharth Kothari ·
Ms. Abanti Mitra |
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Asset Liability
Management and Credit Policy
Committee : |
· Mr. KJ Taori · Mrs. Padmaja Reddy · Ms. Abanti Mitra · Mr. K S Singhwan ·
Mr. Vinit Rai |
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Product, Process
and Grievance redressal : |
·
Mrs. Padmaja Reddy ·
Ms. Abanti Mitra ·
Mr. K S Singhwan ·
Mr. Vinit Rai |
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Asset Sale : |
·
Mrs. Padmaja Reddy ·
Mr. K S Singhwan ·
Mr. Vinit Rai ·
Ms. Abanti Mitra |
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Executive
Committee : |
·
Mrs. Padmaja Reddy ·
Mr. Lakshmi Narsaih ·
Mr. Avinash Umapathy ·
Mr. K S Singhwan |
MAJOR SHAREHOLDERS
As on 27.09.2013
|
Names of Shareholders (Equity Shares) |
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No. of Shares |
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Padmaja Gangireddy |
|
5798388 |
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Vijaya Sivarami Reddy Vendidandi |
|
1479983 |
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Bala Deepti Gangi Reddy |
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10000 |
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Venkata Ramana Reddy Godi |
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11500 |
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Peddireddy Bapathu |
|
27843 |
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Rajasekharbabu Reddymasu |
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6843 |
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S K Baji |
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755 |
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Koteswaramma Enumula |
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228788 |
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Vendidandi Revan Saahith Reddy |
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395118 |
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Spandana Employees Welfare Trust, India |
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690500 |
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JM Financial Trustee Company Private Limited, India |
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6038276 |
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Valiant Mauritius Partners FDI Limited, Mauritius |
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3651780 |
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Lok Capital LLC, Mauritius |
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319065 |
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Helion Venture Partners LLC, India |
|
335964 |
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Helion Venture Partners II LLC, India |
|
335964 |
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Small Industries Development Bank of India, India |
|
50000 |
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Total |
|
19380767 |
PREFERENCE SHAREHOLDERS DETAILS NOT AVAILABLE
As on 16.05.2014
|
Names of Allottees |
|
No. of Shares |
|
JM Financial Trustee Company Private Limited, India |
|
544000 |
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Valiant Mauritius Partners FDI Limited, Mauritius |
|
330000 |
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Helion Venture Partners II LLC, India |
|
90000 |
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Helion Venture Partners LLC, India |
|
36000 |
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Total |
|
1000000 |
Equity Share Break up (Percentage of Total Equity)
As on 27.09.2013
|
Category |
Percentage |
|
Nationalised or other banks |
0.26 |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
23.95 |
|
Bodies corporate |
31.16 |
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Directors or relatives of Directors |
40.83 |
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Other top fifty shareholders |
3.80 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the business of micro finance, providing
small value unsecured loans. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by management |
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Bankers : |
·
Andhra Bank ·
Axis Bank ·
Bank of Baroda ·
Bank of India ·
Central Bank of India ·
Corporation Bank ·
Dhanalaxmi Bank ·
HDFC Bank Limited, HDFC Bank House Senapati Bapat
Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India ·
HSBC ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Indian Overseas Bank, 33-1-1 , Seetharampuram,
Eluru Road, Vijayawada - 520002, Andhra Pradesh, India ·
IndusInd Bank ·
ING Vysya Bank Limited ·
Jammu and Kashmir Bank ·
Karnataka Bank Limited ·
Karur Vysya Bank ·
Lakshmi Vilas Bank ·
Oriental Bank of Commerce ·
Punjab National Bank ·
Punjab and Sind Bank ·
South Indian Bank ·
Standard Chartered Bank, 6-3-1090, Raj Bhavan
Road, Somajiguda, Hyderabad - 500082, Andhra Pradesh, India ·
State Bank of Hyderabad ·
State Bank of Mysore ·
State Bank of Patiala ·
State Bank of Travancore ·
Syndicate Bank ·
Vijaya Bank ·
YES Bank ·
Manaveeya H and I Private Limited ·
Rabo India Finance ·
SIDBI ·
Tata Capital Limited ·
UCO Bank ·
Union Bank of India ·
BNP Paribas ·
CITI Bank |
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Facilities : |
Secured loans a.
Terms loans and Working capital term loans under the
purview of the CDR Package are secured by hypothecation of book debts of the
Company to be shared amongst the CDR lenders on pari passu basis and also the
pledge of the entire unencumbered shares held by the promoters including
bonus, right and preferential allotments made during the currency of the
package to the CDR lenders. b.
The term loans and Working capital term loans
under the purview of the CDR package carry an interest rate of 12% p.a.
payable on monthly basis on the 15'~da y of every month. c.
Two
(Previous year: Three) lenders of the Company have not entered into the CDR
package as at 31 March 2013. Unpaid loan balances for these lenders
(excluding interest accrued thereon) as at 31 March 2013 is Rs.664.283
Millions (Previous year: Rs.1476.671 Millions). d.
The Company during the year has obtained loan
against fixed deposits with South Indian bank repayable on demand, which
carries an effective interest rate of 9.60% p.a. |
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Banking
Relations : |
-- |
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Financial Institutions : |
IDBI Trusteeship Services Limited, IDBI Trusteeship Services Limited, Ballard Estate, Mumbai, Maharashtra - 400001, India |
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Auditors : |
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Name : |
BSR and Company Chartered Accountants |
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Address : |
Reliance Humsafar, IVth Floor, Road No. 11, Banjara Hills, Hyderabad –
500034, Andhra Pradesh, India |
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Tel. No.: |
91-40-30465000 |
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Fax No.: |
91-40-30465299 |
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Enterprises where
key management personnel exercise significant influence
: |
· Spandana Rural and Urban Development Organization · Spandana Mutual Benefit Trust · Abhiram Marketing Services Limited (Formerly Spandana Sphoorty Marketing Services Limited) · Spandana Employee Welfare Trust ·
Criss Financial Holdings Limited (Formerly
Keertana Financial Limited) |
CAPITAL STRUCTURE
After 27.09.2013
Authorised Capital : Rs.20000.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.11068.614 Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
900000000 |
Equity Shares |
Rs.10/- each |
Rs.9000.000 Millions |
|
1100000000 |
Preference
Shares |
Rs.10/- each |
Rs.11000.000 Millions |
|
|
Total |
|
Rs.20000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19380767 |
Equity Shares |
Rs.10/- each |
Rs.193.808 Millions |
|
940600000 |
Preference
Shares |
Rs.10/- each |
Rs.9406.000 Millions |
|
|
Total |
|
Rs.9599.808
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 |
9,599.808 |
9,253.808 |
135.474 |
|
(b) Reserves & Surplus |
(9,704.657) |
1,921.543 |
4,608.336 |
|
(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) |
(104.849) |
11,175.351 |
4,743.810 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
6,318.316 |
8,340.761 |
20,357.341 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
10.893 |
1,089.999 |
4.332 |
|
(d) long-term provisions |
13,880.864 |
2,514.895 |
1,201.979 |
|
Total Non-current Liabilities (3) |
20,210.073 |
11,945.655 |
21,563.652 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1,126.805 |
677.059 |
1,514.171 |
|
(b) Trade payables |
46.799 |
132.864 |
155.713 |
|
(c) Other current
liabilities |
4,223.575 |
5,351.927 |
4,344.350 |
|
(d) Short-term provisions |
271.107 |
73.947 |
56.426 |
|
Total Current Liabilities (4) |
5,668.286 |
6,235.797 |
6,070.660 |
|
|
|
|
|
|
TOTAL |
25,773.510 |
29,356.803 |
32,378.122 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
55.411 |
92.074 |
118.338 |
|
(ii) Intangible Assets |
10.785 |
10.674 |
17.252 |
|
(iii) Capital
work-in-progress |
1.237 |
2.577 |
1.677 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1.000 |
1.000 |
1.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Loan portfolio |
13,220.534 |
14,040.175 |
11,562.952 |
|
(e) Long-term Loan and Advances |
1,531.327 |
1,514.268 |
1,512.261 |
|
(f) Other Non-current assets |
20.352 |
20.352 |
24.423 |
|
Total Non-Current Assets |
14,840.646 |
15,681.120 |
13,237.903 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
0.000 |
0.000 |
0.000 |
|
(d) Cash and cash
equivalents |
1,751.046 |
5,171.323 |
1,950.664 |
|
(e) Loan Portfolio |
9,011.894 |
8,295.179 |
16,885.407 |
|
(f) Short-term loans and
advances |
47.528 |
52.885 |
54.793 |
|
(g) Other current assets |
122.396 |
156.296 |
249.355 |
|
Total Current Assets |
10,932.864 |
13,675.683 |
19,140.219 |
|
|
|
|
|
|
TOTAL |
25,773.510 |
29,356.803 |
32,378.122 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
2,268.759 |
3,219.697 |
7,565.600 |
|
|
|
|
Other Income |
459.414 |
348.874 |
254.810 |
|
|
|
|
TOTAL (A) |
2,728.173 |
3,568.571 |
7,820.410 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Operating expenses |
107.109 |
161.075 |
152.866 |
|
|
|
|
Employee Benefits Expenses |
887.172 |
1,582.312 |
1,740.924 |
|
|
|
|
Other Expenses |
122.160 |
164.817 |
210.890 |
|
|
|
|
Provision and write offs |
13,153.228 |
1,504.745 |
2,541.910 |
|
|
|
|
TOTAL (B) |
14,269.669 |
3,412.949 |
4,646.590 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(11,541.496) |
155.622 |
3,173.820 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
55.181 |
2,812.806 |
3,111.642 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
(11,596.677) |
(2,657.184) |
62.178 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
29.523 |
41.170 |
58.377 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(11,626.200) |
(2,698.354) |
3.801 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
0.000 |
0.000 |
96.161 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(11,626.200) |
(2,698.354) |
(92.360) |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(223.680) |
2474.778 |
2567.138 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Dividend on OCCRPS |
0.000 |
0.090 |
0.000 |
|
|
|
|
Dividend distribution tax |
0.000 |
0.014 |
0.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
(11849.880) |
(223.680) |
2474.778 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
(599.88) |
(163.25) |
(6.82) |
||
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(426.15) |
(75.61) |
(1.18) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(512.45) |
(83.81) |
0.05 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(92.63) |
(17.62) |
0.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
110.89 |
(0.24) |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(71.01) |
0.81 |
4.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.93 |
2.19 |
3.15 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
135.474 |
9253.808 |
9599.808 |
|
Reserves & Surplus |
4608.336 |
1921.543 |
(9704.657) |
|
Net
worth |
4743.810 |
11175.351 |
(104.849) |
|
|
|
|
|
|
long-term borrowings |
20357.341 |
8340.761 |
6318.316 |
|
Short term borrowings |
1514.171 |
677.059 |
1126.805 |
|
Total
borrowings |
21871.512 |
9017.820 |
7445.121 |
|
Debt/Equity
ratio |
4.611 |
0.807 |
(71.008) |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
7,565.600 |
3,219.697 |
2,268.759 |
|
|
|
(57.443) |
(29.535) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
7,565.600 |
3,219.697 |
2,268.759 |
|
Profit |
(92.360) |
(2,698.354) |
(11,626.200) |
|
|
(1.22%) |
(83.81%) |
(512.45%) |
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 |
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 |
UNSECURED LOANS:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Short Term Borrowings |
|
|
|
Other micro
credit loan payable |
676.805 |
676.805 |
|
Total |
676.805 |
676.805 |
COMPANY OVERVIEW
The Company was incorporated
on 10 March 2003 as a limited company. The Company is registered as a Non
deposit accepting Non-Banking Financial Company holding Certificate of
Registration (COR) No. 09.00414 dated 16 October 2004. The Company is engaged
in the business of micro finance, providing small value unsecured loans to
low-income clientele in urban and rural areas. The tenure of these loans is
generally spread over one to two years. The Company provides individual loans,
small business loans, tractor loans and loans against gold ornaments. The
Company also acts as agent to manage loans assigned to Banks Financial
Institutions.
Pursuant to a
Notification DNBS.CC.PD.No.250/03.101./200 1 1-12 dated 2 December, 2011, the Reserve Bank of India
('RBI') issued 'Non-Banking Financial Company - Micro Finance Institutions'
(NBFC-MFI Directions), wherein a new category of NBFCs as NBFC-MFI was created.
These directions in addition to defining NBFC- MFIs also provided for a
regulatory framework for NBFCMFIs, guidelines on asset classification and
provisioning norms and other regulations applicable to the new NBFC-MFI
category. Further, it required the NBFCs to apply for a change in the
classification and apply for a fresh registration. The Company has, on 18 June
2012, submitted the request letter to Reserve Bank of India ('RBI') for the
purpose of change in classification to NBFC-MFI in accordance with the
Non-Banking Financial Company - Micro Finance Institutions (Reserve Bank)
Directions, 20 1 1, which is currently under process.
While the
guidelines are applicable with effect from 1 April 2012, taking into account
the difficulties faced by MFI sector, the implementation of the guidelines
relating to asset classification and provisioning norms has been deferred to 1
April 2013 while other regulations laid down in the December 02,201 1 circular
are applicable.
The Company has
obtained an approval for a Corporate Debt Restructuring (CDR) package from its
lenders on June 02,20 11 and a Master restructuring Agreement (MRA) has been
entered into with the lenders on 24 September 201 1.
FINANCIAL PERFORMANCE
The Company’s Andhra Pradesh (AP) operations were adversely affected,
which constituted almost half of the business of the Company, with promulgation
of the Andhra Pradesh Micro Finance Institution (Regulation of Money-Lending)
Ordinance on October 15, 2010, as such the company has recorded Rs.(11626.200)
Millions as loss for the current financial year (PY Rs (2698.400) Millions
loss). This has adversely effected the Income from Operations as well and the
company recorded Rs.2268.700 Millions for the current Financial year (PY
Rs.3219.700 Millions).
The Company is struggling hard to get back to track and the various
Productivity enhancement measures have been fruitful and successful. Improved
productivity and rationalization of manpower has led to reduction in operating
expenses and the Company had recorded an operating expense of Rs.10.100
Millions for the current year (PY Rs.161.000 Millions), which is 33% lesser
than the previous year.
The Company’s operating surplus started picking up month on month from
the 3rd Quarter of F.Y 2012-2013. Since the AP crisis, Rs.740.000 Millions
operating surplus had been gereated after meeting all expenses.
In the first 4 months of the FY ending 2014, the surplus generated is
Rs200.000 Millions.
OPERATIONAL HIGHLIGHTS
The Company is emerging as a turn-around story, standing out among the
AP-crisis affected Microfinance Institutions (MFIs). It has received support of
lenders and regulators in the last three years and sustained its operation.
SSFL is operating predominately in 11 states of Andhra Pradesh, Karnataka,
Maharashtra, Chattisgarh, Orissa, Madhya Pradesh, Gujarat, Goa, Jharkhand,
Kerala and UP.
You are aware that Andhra Pradesh (AP) operations were adversely
affected with promulgation of the Andhra Pradesh Micro Finance Institution
(Regulation of Money-Lending) Ordinance on October 15, 2010, which was
subsequently replaced by Government of Andhra Pradesh by Andhra Pradesh Micro
Finance Institution, Act on January 1, 2011. Prior to the promulgation of said
law, operations in Andhra Pradesh, constituted almost half of the business of
the Company.
The Company has disbursed Rs.890.000 Millions in AP and Rs.14900.000
Millions in Non-Andhra Pradesh during the financial year 2012- 2013. The
Company had been able to grow the non-AP portfolio and deploy most of the AP
collections also in non-AP. The portfolio grew by Rs.2000.000 Millions in
non-AP in the last 16 months. Nonetheless, the Company has been able to
generate operating surplus since Q-3 of FY-13.
FUTURE OUTLOOK
SSFL continues to be one of the largest MFIs (3rd by volume of
disbursements) making substantive impact in the financial inclusion space
across India. Operations are well diversified into 10 non-AP states. The
Company had been growing the smaller states more than the larger states due to
which the non-AP portfolio composition has become better diversified.
Performance across all states had been good. In AP, the portfolio is
predominantly secured (loan against Gold/ Farm Equipment/ Micro Mortgages etc).
The company has demonstrated its ability in terms of promoter commitment,
management stability significant technology adoption, process strengthening,
internal controls and compliance with emergent industry and RBI norms for MFI
NBFCs. Non-AP Operations are sustainable (over 99% recovery rates) and
profitable (costs under control) on a standalone basis (high operational
efficiencies). The Company is confident that it will soon reach the top
position with its various initiatives.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10489446 |
29/04/2014 |
11,502,500,000.00 |
IDBI Trusteeship Services Limited |
IDBI Trusteeship Services Limited, Ballard Estate, Mumbai, Maharashtra - 400001, India |
C02985182 |
|
2 |
10493150 |
15/04/2014 |
35,000,000.00 |
Yes Bank Limited |
Yes Bank Limited, Dr. Annie Besant Road, Worli, Mumbai, Maharashtra - 400018, India |
C03117108 |
|
3 |
10491206 |
11/04/2014 |
25,000,000.00 |
Indusind Bank Limited |
Indusind Bank Limited, Begumpet, Hyderabad, Andhra Pradesh - 500003, India |
C03002193 |
|
4 |
10311683 |
24/09/2011 |
12,967,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Bldg., Ground Floor, 17, R.Kamani Marg,, Ballard Estate, Mumbai, Maharashtra - 400001, India |
B23131790 |
|
5 |
10203155 |
20/02/2010 |
250,000,000.00 |
BNP PARIBAS |
Venkat Plaza,, 6-3-883/5, Punjagutta, Hyderabad, Andhra Pradesh - 500082, India |
A79761706 |
|
6 |
10182601 |
19/09/2009 |
240,000,000.00 |
CITIBANK N.A |
Citi Center,Plot C-61, Bandra Kurla Complex, Bandra(E), Mumbai, Maharashtra - 400051, India |
A72014160 |
|
7 |
10142711 |
19/02/2009 |
970,000,000.00 |
CITI BANK N.A |
Citi Bank Center,Plot C 61, Bandrakurla Complex, Bandra (East), Mumbai, Maharashtra - 400051, India |
A56676414 |
*Date of modification Charges
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
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.60.73 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.81.04 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
|
15 |
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.