MIRA INFORM REPORT
|
Report Date : |
12.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
L&T FINANCE HOLDINGS LIMITED (w.e.f. 06.09.2010) |
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Formerly Known
As : |
L&T CAPITAL HOLDINGS LIMITED |
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Registered
Office : |
L&T House, Ballard Estate, Mumbai – 400 001, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
01.05.2008 |
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Com. Reg. No.: |
11-181833 |
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Capital Investment
/ Paid-up Capital : |
Rs.27184.490 millions |
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CIN No.: [Company Identification
No.] |
L67120MH2008PLC181833 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in providing various financial products and services for the corporate, retail, housing, and infrastructure finance sectors |
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No. of Employees
: |
Approximately 2933 |
RATING & COMMENTS
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MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of L&T Group. It is a well-established company
having fine track record. Financial position of the company appears to be sound. Overall fundamentals
of the company appears to be sound and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AA+ (Long Term Rating) |
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Rating Explanation |
High degree at safety and very low credit
risk. |
|
Date |
September, 2014 |
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 DECLINED
Management non-cooperative
(Tel. No.: 91-22-66217300)
LOCATIONS
|
Registered Office : |
L&T House, Ballard Estate, Mumbai – 400 001, |
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Tel. No.: |
91-22-67525656 |
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Fax No.: |
91-22-67525858 |
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E-Mail : |
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Website: |
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Corporate Office : |
8th Floor, City 2, Plot No.177, Vidyanagari
Marg, |
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Tel. No.: |
91-22-66217300/ 400 |
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Fax No.: |
91-22-66217302 |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Y. M. Deosthalee |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. N. Sivaraman |
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Designation : |
President and Whole-time Director |
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Name : |
Mr. R. Shankar Raman |
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Designation : |
Non-Executive Director |
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Name : |
Mr. A. K. Jain |
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Designation : |
Non-Executive Director |
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Name : |
Mr. S. V. Haribhakti |
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Designation : |
Independent Director |
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Name : |
Mr. B. V. Bhargava |
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Designation : |
Independent Director |
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Name : |
Mr. P. V. Bhide |
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Designation : |
Independent Director |
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Name : |
Ms. Kamakshi Rao |
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Designation : |
Independent Director |
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Name : |
Mr. Harsh Mariwala |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
N. Suryanarayanan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
holding |
|
(A)
Shareholding of Promoter and Promoter Group |
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|
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|
1289003865 |
74.98 |
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|
1289003865 |
74.98 |
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Total
shareholding of Promoter and Promoter Group (A) |
1289003865 |
74.98 |
|
(B)
Public Shareholding |
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|
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|
1877731 |
0.11 |
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|
8271868 |
0.48 |
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|
1784192 |
0.10 |
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|
88628268 |
5.16 |
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|
100562059 |
5.85 |
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|
|
|
|
|
33305270 |
1.94 |
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|
|
|
|
|
184684841 |
10.74 |
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|
49697537 |
2.89 |
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|
61867952 |
3.60 |
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|
7416869 |
0.43 |
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|
9700 |
0.00 |
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|
822474 |
0.05 |
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|
53618909 |
3.12 |
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|
329555600 |
19.17 |
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Total
Public shareholding (B) |
430117659 |
25.02 |
|
Total
(A)+(B) |
1719121524 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
1719121524 |
0.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs.0.100 million
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of the Shareholder |
Details of Shares held |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
|
No. of Shares held |
As a % of grand total |
|
||
|
1 |
Larsen
& Toubro Limited |
1,28,90,03,865 |
74.98 |
74.62 |
|
|
Total |
1,28,90,03,865 |
74.98 |
74.62 |
Shareholding of securities (including shares, warrants,
convertible securities) of persons belonging to the category Public and holding
more than 1% of the total number of shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
|
1 |
Mace
Cipef Limited |
51595484 |
3.00 |
2.99 |
|
|
2 |
Tioman
Investments ( |
37835543 |
2.20 |
2.19 |
|
|
|
Total |
89431027 |
5.20 |
5.18 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in providing various financial products and services for the corporate, retail, housing, and infrastructure finance sectors |
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Products/ Services : |
Financial Services |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS –
NOT APPLICABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Approximately 2933 |
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Bankers : |
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Facilities : |
-- |
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Auditors : |
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Name : |
Sharp and Tannan Chartered Accountants |
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Address : |
Ravindra Annexe, 194, Churchgate Reclamation, |
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Tel. No. : |
91-22-22047722/ 23/ 66338343-47 |
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Mobile No. : |
91-22-66338352 |
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E-Mail : |
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Holding Company : |
Larsen & Toubro Limited |
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Subsidiary Companies : |
·
L&T Finance Limited ·
L&T Infrastructure Finance Company Limited ·
L&T FinCorp Limited ·
L&T Vrindavan Properties Limited (formerly: L&T Unnati Finance
Limited) ·
L&T Access Distribution Services Limited (formerly: L&T Access
Financial Advisory Services Limited) ·
L&T Investment Management Limited ·
L&T Mutual Fund Trustee Limited ·
L&T lnfra Investment Partners Advisory Private Limited ·
L &T lnfra lnvestment Partners Trustee Private Limited ·
L&T Housing Finance Limited ·
Family Credit Limited ·
L&T Capital Markets Limited ·
L&T Trustee Services Private Limited ·
Consumer Financial Services Limited ·
L&T lnfra Debt Fund Limited B ·
Mudit Cement Private Limited (w.e.f December 27,201 3) |
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Fellow Subsidiary (with
whom Company has undertaken transactions during current or previous year) : |
·
L&T Capital Company Limited ·
Larsen & Toubro InfoTech Limited ·
L&T Metro Rail ( ·
L&T Infrastructure Development Projects Limited ·
L&T General Insurance Company Limited |
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Associate Companies : |
·
NAC Infrastructure Equipment Limited ·
Feedback Infrastructure Services Private Limited |
CAPITAL STRUCTURE
AS ON 24.07.2014
Authorised Capital : Rs.80000.000 millions
Issued, Subscribed & Paid-up Capital : Rs.30828.571
millions
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000000 |
Equity Shares |
Rs.10/- each |
Rs.50000.000 millions |
|
100000000 |
Preference Shares |
Rs.100/- each |
Rs.10000.000 millions |
|
|
Total |
|
Rs.60000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1718448975 |
Equity Shares |
Rs.10/- each |
Rs.17184.490 millions |
|
75000000 |
8.75% Cumulative Compulsorily Redeemable Preference Shares |
Rs.100/-
each |
Rs.7500.000 millions |
|
25000000 |
9.00% Cumulative Compulsorily Redeemable Preference Shares |
Rs.100/-
each |
Rs.2500.000 millions |
|
|
Total |
|
Rs.27184.490
millions |
Terms/rights attached
to equity shares
The Company has only one class of equity shares having a par value of Rs.10 per share. Members of the Company holding equity shares therein have a right to vote, on every resolution placed before the Company and right to receive dividend. The voting rights on a poll is in proportion to the share of the paid up equity capital of the Company held by the shareholders. The Company declares dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.
Terms/rights attached
to preference shares
The CRPS will not have voting rights other than in respect of matters directly affecting it. In the event any due and payable dividends remain unpaid for aggregate period of at least 2 years prior to the start of any general meeting of the equity shareholders, CRPS holders shall have voting rights in line with their voting rights of the equity shareholders. The CRPS will be redeemed at the end of 3 years from the date of allotment. Provided that the tenure may be extended by a further period, not exceeding 5 days from the Proposed Tenure, which shall be notified to the Investors at the time of allotment.
Reconciliation of the
shares outstanding at the beginning and at the end of the year
|
Equity Shares |
As at March 31, 2014 |
|
|
|
No. of Shares |
Rs. In Millions |
|
At the beginning of the year |
1716760532 |
17167.605 |
|
Issued during the year |
|
|
|
- Issued under ESOP |
1688443 |
16.885 |
|
Outstanding at the end of
the year |
1718448975 |
17184.490 |
|
8.75% Cumulative
Compulsorily Redeemable Preference Shares (CRPS) of Rs.100 each fully paid |
As at March 31, 2014 |
|
|
|
No. of Shares |
Rs. In Millions |
|
At the beginning of the year |
75000000 |
7500.000 |
|
Issued during the year |
-- |
-- |
|
Outstanding at the
end of the year |
75000000 |
7500.000 |
|
9.00% Cumulative
Compulsorily Redeemable Preference Shares (CRPS) of Rs.100 each fully paid |
As at March 31, 2014 |
|
|
|
No. of Shares |
Rs. In Millions |
|
At the beginning of the year |
-- |
-- |
|
Issued during the year |
75000000 |
7500.000 |
|
Outstanding at the
end of the year |
75000000 |
7500.000 |
Equity shares in the
Company held by the Holding Company
|
Equity Shares |
As at March 31, 2014 |
|
|
|
No. of Shares |
Rs. In Millions |
|
Larsen & Toubro Limited and its nominees |
1316589609 |
13165.896 |
|
|
1316589609 |
13165.896 |
Details of shareholders holding more than
5% shares in the Company
|
Equity Shares |
As at March 31, 2014 |
|
|
|
No. of Shares |
% holding |
|
Larsen & Toubro Limited and its nominees |
1316589609 |
76.61% |
|
|
1316589609 |
|
|
Cumulative
Compulsorily Redeemable Preference Shares (CRPS) of Rs.100 each fully paid |
As at March 31, 2014 |
|
|
|
No. of Shares |
% holding |
|
Shree Cement Limited |
7296136 |
7.30% |
|
Azim Hashma Premji |
10109420 |
10.11% |
|
Azim Premji Trust |
5109420 |
5.11% |
|
ICICI Securities Primary Dealership
Limited |
4546594 |
4.55% |
Details of shares
reserved to be issued under ESOP
|
Equity Shares |
As at March 31, 2014 |
|
|
|
No. of Shares |
Rs. In Millions |
|
Equity Shares of Rs.10 each |
9106625 |
91.066 |
|
|
9106625 |
91.066 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
27184.490 |
24667.605 |
17147.616 |
|
(b) Reserves & Surplus |
18085.122 |
18137.887 |
16388.947 |
|
(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) |
45269.612 |
42805.492 |
33536.563 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
2000.000 |
1000.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
1.358 |
1.358 |
1.358 |
|
(d) Long-term provisions |
3.473 |
82.856 |
8.689 |
|
Total Non-current
Liabilities (3) |
2004.831 |
1084.214 |
10.047 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
3603.141 |
2956.133 |
0.000 |
|
(b) Current maturity of long term borrowings |
1000.000 |
3490.000 |
0.000 |
|
(c) Other current liabilities |
117.846 |
3403.797 |
86.832 |
|
(d) Short-term provisions |
1338.597 |
1366.017 |
31.136 |
|
Total Current
Liabilities (4) |
6059.584 |
11215.947 |
117.968 |
|
|
|
|
|
|
TOTAL |
53334.027 |
55105.653 |
33664.578 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4.065 |
4.983 |
4.948 |
|
(ii) Intangible Assets |
0.110 |
0.271 |
0.434 |
|
(iii) Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
47270.111 |
41225.611 |
30467.779 |
|
(c) Deferred tax assets (net) |
13.376 |
17.649 |
5.504 |
|
(d) Long-term Loan and Advances |
579.713 |
4905.992 |
0.000 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
47867.375 |
46154.506 |
30478.665 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
1984.390 |
7529.161 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
0.000 |
0.000 |
0.000 |
|
(d) Cash and cash equivalents |
463.491 |
489.389 |
39.398 |
|
(e) Short-term loans and advances |
2868.922 |
840.300 |
2945.349 |
|
(f) Other current assets |
149.849 |
92.297 |
201.166 |
|
Total Current
Assets |
5466.652 |
8951.147 |
3185.913 |
|
|
|
|
|
|
TOTAL |
53334.027 |
55105.653 |
33664.578 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
2575.714 |
1719.761 |
1118.350 |
|
|
|
Other Income |
336.553 |
286.961 |
175.864 |
|
|
|
TOTAL |
2912.267 |
2006.722 |
1294.214 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefits expense |
70.810 |
150.901 |
111.589 |
|
|
|
Administration and other expenses |
213.999 |
252.831 |
140.642 |
|
|
|
Provisions and contingencies |
(3.700) |
7.000 |
7.400 |
|
|
|
TOTAL |
281.109 |
410.732 |
259.631 |
|
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE
INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2631.158 |
1595.990 |
1034.583 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
661.091 |
277.718 |
145.467 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1970.067 |
1318.272 |
889.116 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1.144 |
0.956 |
0.117 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE EXCEPTIONAL AND
EXTRAORDINARY ITEMS AND TAXES |
1968.923 |
1317.316 |
888.999 |
|
|
|
|
|
|
|
|
|
Add/ Less |
EXCEPTIONAL ITEMS |
0.000 |
2357.292 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
1968.923 |
3674.608 |
888.999 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
5.092 |
561.356 |
176.496 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER
TAX |
1963.831 |
3113.252 |
712.503 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
1769.851 |
593.384 |
23.381 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Statutory Reserve |
392.800 |
625.000 |
142.501 |
|
|
|
Proposed Dividend on Preference Shares |
0.000 |
15.000 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
1288.837 |
1287.570 |
0.000 |
|
|
|
Dividend paid for previous year |
0.129 |
0.000 |
0.000 |
|
|
|
Dividend Distribution Tax on Proposed Dividend |
0.338 |
9.215 |
0.000 |
|
|
|
Interim Dividend on Preference Shares |
759.750 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1291.828 |
1769.851 |
593.383 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
0.70 |
1.81 |
0.44 |
|
|
|
- Diluted |
0.70 |
1.80 |
0.44 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2014 |
30.09.2014 |
|
Unaudited |
|
1st
Quarter |
2nd
Quarter |
|
Net
Sales |
|
1302.500 |
1305.800 |
|
Total
Expenditure |
|
1150.200 |
1445.700 |
|
PBIDT
(Excl OI) |
|
152.300 |
(139.900) |
|
Other
Income |
|
11.400 |
19.200 |
|
Operating
Profit |
|
163.700 |
(120.700) |
|
Interest |
|
4.200 |
2.600 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
159.500 |
(123.300) |
|
Depreciation |
|
32.000 |
22.100 |
|
Profit
Before Tax |
|
127.500 |
(145.400) |
|
Tax |
|
43.900 |
(47.000) |
|
Provisions
and contingencies |
|
0.000 |
0.000 |
|
Profit
After Tax |
|
83.500 |
(98.400) |
|
Extraordinary
Items |
|
0.000 |
0.000 |
|
Prior
Period Expenses |
|
0.000 |
0.000 |
|
Other
Adjustments |
|
0.000 |
0.000 |
|
Net
Profit |
|
83.500 |
(98.400) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
76.24 |
181.03 |
63.71 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/ Sales) |
(%) |
102.15 |
92.80 |
92.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
32.54 |
26.51 |
27.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
0.09 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.12 |
0.09 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90 |
0.80 |
27.01 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
17147.616 |
24667.605 |
27184.490 |
|
Reserves & Surplus |
16388.947 |
18137.887 |
18085.122 |
|
Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
33536.563 |
42805.492 |
45269.612 |
|
|
|
|
|
|
Long Term borrowings |
0.000 |
1000.000 |
2000.000 |
|
Short Term borrowings |
0.000 |
2956.133 |
3603.141 |
|
Total borrowings |
0.000 |
3956.133 |
5603.141 |
|
Debt/Equity ratio |
0.000 |
0.092 |
0.124 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from operations |
1,118.350 |
1,719.761 |
2,575.714 |
|
|
|
53.777 |
49.772 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR) |
(INR) |
(INR) |
|
Revenue from operations |
1,118.350 |
1,719.761 |
2,575.714 |
|
Profit |
712.503 |
3,113.252 |
1,963.831 |
|
|
63.71% |
181.03% |
76.24% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM BORROWINGS:
|
Particulars |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Current maturity of long term borrowings |
1000.000 |
3490.000 |
0.000 |
|
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 |
No |
|
8] |
No. of employees |
Yes |
|
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 |
|
|
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 |
No |
|
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 LOAN
|
Particular |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG-TERM
BORROWINGS |
|
|
|
Redeemable non-convertible debentures |
0.000 |
1000.000 |
|
Inter Corporate Borrowing |
2000.000 |
0.000 |
|
SHORT-TERM
BORROWINGS |
|
|
|
Commercial Papers |
|
|
|
Face Value |
3600.000 |
3000.000 |
|
Less: Unexpired discount |
(43.587) |
(43.867) |
|
Cash Credit |
46.728 |
0.000 |
|
Total |
5603.141 |
3956.133 |
|
Particular |
31.03.2014 (Rs. In Millions) |
31.03.2013 (Rs. In Millions) |
||
|
|
Non Current |
Current Maturity |
Non Current |
Current Maturity |
|
LONG-TERM
BORROWINGS |
|
|
|
|
|
Redeemable non-convertible debentures |
-- |
1000.000 |
1000.000 |
3490.000 |
|
Inter Corporate Borrowing |
2000.000 |
-- |
-- |
-- |
|
Total |
2000.000 |
1000.000 |
1000.000 |
3490.000 |
Notes:
I. Unsecured Redeemable
non-convertible debentures: Private Placement
|
Series |
Face value per
Debentures |
Date of Allotment |
Amount (Rs. In Millions) |
Non Current Portion (Rs. In Millions) |
Current Maturities (Rs. In
Millions) |
Interest rate % P.a. |
Date of Redemption |
Redeemable term |
|
Series A |
Rs.10 Lakh each |
15/11/2012 |
1000.000 |
-- |
1000.000 |
10.07% |
May 16, 2014 |
Redeemable at par on maturity |
|
|
|
|
1000.000 |
|
|
|
|
|
II. Inter
Corporate Borrowing
|
Amount (Rs. In Millions) |
Non Current Portion (Rs. In Millions) |
Current Maturities (Rs. In
Millions) |
Interest rate % P.a. |
Date of Redemption |
Redeemable term |
|
2000.000 |
2000.000 |
-- |
10.25% |
June 11, 2015 |
Redeemable at par on maturity |
Note:
No charges exist for company
MANAGEMENT DISCUSSION
AND ANALYSIS
Macro-economic review
and outlook
GDP growth decelerated through 2011 and 2012, reaching 4.6% in H1-FY13. Initially, a problem of stalled infrastructure and corporate investment, the slowdown spread across sectors. The growth slowdown combined with high inflation is a matter of concern. The global slowdown has affected exports and investment, but according to an IMF study, two-third of the downslide in GDP growth can be attributed to domestic factors - supply bottlenecks, delayed project approval and implementation and policy uncertainty. Growth in industrial output and new capital expenditure saw significant deceleration during the fiscal. At the beginning of the financial year, there was a general consensus that interest rates have peaked and should see some softening within the financial year. However, interest rates remained at elevated levels, hurting corporate profitability.
Though recent policy actions have reduced
Though recent policy actions have reduced
It is clear that for a sustainable turnaround, the country will have to tackle deep structural issues and resolve supply-side bottlenecks to revitalise investment and shore up investor confidence.
Company's Businesses
The Company's businesses, carried out through its wholly owned subsidiaries, are structured as Retail Finance, Wholesale Finance, Investment Management and Wealth Management business.
Retail Finance
Our Retail Finance consisting of retail, mid-corporate and housing finance businesses is carried out through their wholly owned subsidiaries, L&,T Finance Limited, Family Credit Limited and L&,T Housing Finance Limited. These comprise loans for the purchase of income generating as well as consumer assets, working capital loans for SMEs, term loans for medium and large companies, micro finance, loans for purchase of homes and loans against property.
Consumer and Auto
Loans
We offer asset backed financing for small commercial and personal vehicles, primarily in semi-urban and rural areas. This business also covers farm equipment - like tractors and harvesters - and they also offer financing for generator sets.
Our growth continues to be led by their geographical presence, strong OEM tie-ups, rapid roll-out capabilities and innovative schemes.
Micro and Small
Enterprises
Through the Micro and Small Enterprises business, they offer construction equipment and medium and large commercial vehicle loans. We are also incubating a warehouse receipting business for agri commodities.
The continuing decline in construction and mining activities, drop in overall industrial growth and strained liquidity in the system took its toll on this sector this financial year. The industry experienced a worsening in asset quality due to rising NPA levels and a fall in the resale value of assets.
Accordingly, their strategic direction in the last two years of curtailing their exposure in the segment, with a view on the industry, has ensured that levels of stress in their book are limited. While this has led to negative growth in this portfolio, the damage to the asset quality has been relatively limited.
Mid and Large
Corporations
Our portfolio for this segment of business comprises corporate loans and leases, loans against securities and supply chain finance.
After excellent growth and high liquidity through FY12, the combination of low demand, tight liquidity, volatile interest rates and forex rate scenarios impacted the economy and industry over the last two years. Lacklustre stock market performance resulted in stretched leverage of companies. For corporate loans and leases this financial year, their strategy was selectivity – they offered credit only to well rated companies with tight monitoring of the end use of loans. Compared to the previous year, this business witnessed a rise in GNPA levels -entirely due to a limited number of large ticket loans disbursed during the upward cycle of the economy. This is not a representation of overall asset or overall portfolio quality.
Housing Finance
Our housing finance business is carried out by L&,T Housing Finance Limited. Through this business, they offer home loans, loans against property and construction finance. Overall growth in housing credit in FY14 was close to 20% as against 18.5% in FY13. Housing Finance Companies (HFCs) have demonstrated a higher growth rate of 21 % compared with banks, which stand at 17% in FY14. The top 5 players in the market continue to hold more than 60% of the share.
During this financial year, they focused on scale through a mix of innovative product offerings and distribution channels. The year also marked L&,T Housing Finance acquiring a portfolio worth Rs.5720.000 millions out of the Rs.6980.000 millions (Balance Rs.1260.000 millions portfolio was acquired by another fellow subsidiary Family Credit Limited) from CitiFinancial Consumer Finance India Limited (CCFIL) to give scalability and size to the business. Including this acquisition, L&T Housing Finance loans and advances have grown from Rs.3260.000 millions in FY13 to Rs.18800.000 millions in FY14.
Micro Finance
They offer micro loans through a joint liability group model
and have also begun offering individual micro loans on a pilot basis. We
currently disburse micro loans in six states - Tamil Nadu, Karnataka,
Maharashtra, Gujarat, Orissa and
During the year ended 31st March 2014, they disbursed Rs.6060.000 millions worth of loans as against Rs.3140.000 millions in the previous year, accounting for 93% growth.
In Andhra Pradesh, they continued their effort to recover loans they had written-off in the previous year, within the overall framework of RBI regulations and AP Micro Finance Act. They have stopped further disbursements in Andhra Pradesh and their onward strategy will depend on evolving regulations.
Apart from the above, the Retail Platform also has a financial distribution company, L&T Access Distribution Services Limited, which currently distributes the products and services of group companies.
Expansion of
Non-lnfra, Wholesale Business
L&T Infra Finance is an Infrastructure Finance Company ('IFC') and by the virtue of the extant regulations, an IFC is required to maintain minimum 75% of the book towards infrastructure sector. Seeing the tremendous growth opportunities residing within the non-infra space, it was decided that non-infra project and corporate financing would be undertaken in L&,T FinCorp Limited. Non-lnfra finance would primarily focus on providing financial assistance to a range of industry sectors in terms of project finance, corporate loans, etc.
Another aspect of renewed strategy has been the increased focus towards low risk operational projects. The focus has largely been the result of changed business environment and emerging dynamics of IDF platform.
Standalone
Performance
On a standalone basis, L&T Finance Holding's income increased from Rs.2006.700 millions in FY13 to Rs.2912.300 millions in FY14, primarily as a result of increased dividend income from subsidiaries. Operating income increased from Rs.1719.800 millions in FY13 to Rs.2575.700 millions in FY14. Total expenditure increased from Rs.689.400 millions in FY13 to Rs.943.300 millions in FY14 substantially on account of finance cost for funding the Company's operations and expenses on branding. Profit after tax excluding exceptional items increased from Rs.1227.400 millions in FY13 to Rs.1963.800 millions in FY14. Profit after tax including exceptional items decreased from Rs.3113.300 millions in FY13 to Rs.1963.800 millions in FY14 due to exceptional items of Rs.2357.300 millions in FY13, pertaining mainly to profit on sale of investments held outside the group.
STATEMENT OF STANDALONE UNAUDITED
RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2014
(Rs. In Millions)
|
Sr. No. |
Particulars |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2014 (Unaudited) |
30.06.2014 (Unaudited) |
30.09.2014 (Unaudited) |
|
1 |
Income from
Operations |
98.833 |
89.706 |
188.539 |
|
2 |
Expenses |
|
|
|
|
|
(a) Employee benefits |
25.972 |
53.767 |
79.739 |
|
|
(b) Professional fees |
15.220 |
23.278 |
38.498 |
|
|
(c) Advertisement expenses |
9.596 |
3.907 |
13.503 |
|
|
(d) Administration and other expenses |
26.065 |
13.919 |
39.984 |
|
|
(e) Allowances and contingencies |
(6.840) |
(0.300) |
(7.140) |
|
|
(f) Depreciation and amortisation |
0.284 |
0.283 |
0.567 |
|
|
Total Expenses |
70.297 |
94.854 |
165.151 |
|
3 |
Profit/(loss) from operations
before other income, finance costs and exceptional items (1-2) |
28.536 |
(5.148) |
23.388 |
|
4 |
Other Income |
80.838 |
99.372 |
180.210 |
|
5 |
Profit from
ordinary activities before finance costs and exceptional items (3+4) |
109.374 |
94.224 |
203.598 |
|
6 |
Finance Costs |
92.420 |
150.749 |
243.169 |
|
7 |
Profit/Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
16.954 |
(56.525) |
(39.571) |
|
8 |
Exceptional items |
-- |
-- |
-- |
|
9 |
Profit/(loss) from
ordinary activities before Tax (7+8) |
16.954 |
(56.525) |
(39.571) |
|
10 |
Tax Expenses |
|
|
|
|
|
a) Current tax |
-- |
-- |
-- |
|
|
b) Deferred tax |
2.097 |
(0.730) |
1.367 |
|
|
Total Tax expense |
2.097 |
(0.730) |
1.367 |
|
11 |
Net profit/(Loss)
from ordinary activities after tax (9-10) |
14.857 |
(55.795) |
(40.938) |
|
12 |
Extraordinary item |
-- |
-- |
-- |
|
13 |
Net profit/(Loss)
for the period/year (11+12) |
14.857 |
(55.795) |
(40.938) |
|
14 |
Paid-up equity share capital (Face Value Rs. 10/- Per Share) |
17191.215 |
17186.718 |
17191.215 |
|
15 |
Reserves as per Balance Sheet at year ended |
13634.000 |
12634.000 |
13634.000 |
|
16 |
Net Worth |
-- |
-- |
48848.319 |
|
17 |
Earnings per share (of
Rs.10/- each) (Not Annualised): |
|
|
|
|
|
(a) Basic |
*(0.16) |
*(0.16) |
*(0.32) |
|
|
(b) Diluted |
*(0.16) |
*(0.16) |
*(0.32) |
|
18 |
Coverage
Ratio: |
|
|
|
|
|
a. Debt Service Coverage Ratio (DSCR) |
|
|
0.06 |
|
|
b. Interest Service Coverage Ratio (ISCR) |
|
|
0.84 |
|
Sr. No. |
Particulars |
Quarter Ended |
Half Year Ended |
|
|
|
|
30.09.2014 (Unaudited) |
30.06.2014 (Unaudited) |
30.09.2014 (Unaudited) |
|
(A) |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public
shareholding |
|
|
|
|
|
- Number of shares |
430117659 |
429667955 |
430117659 |
|
|
- Percentage of shareholding |
25.02% |
25.00% |
25.02% |
|
|
|
|
|
|
|
2 |
Promoter and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of
Shares |
Nil |
Nil |
Nil |
|
|
- Percentage of
Shares (as a % of total shareholding of promoter and promoter group) |
NA |
NA |
NA |
|
|
- Percentage of
Shares (as a % of total share capital of the Company) |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
b) Non-Encumbered |
|
|
|
|
|
- Number of
Shares |
1289003865 |
1289003865 |
1289003865 |
|
|
- Percentage of Shares
(as a % of total shareholding of promoter and promoter group) |
100% |
100% |
100% |
|
|
- Percentage of
Shares (as a % of total share capital of the Company) |
74.98% |
75.00% |
74.98% |
|
|
|
|
|
|
|
|
Invest Complaints |
|
|
|
|
|
Pending at the
beginning of the quarter |
Nil |
|
|
|
|
Received during
the quarter |
2 |
|
|
|
|
Disposed of
during the quarter |
2 |
|
|
|
|
Remaining
unresolved at the end of the quarter |
Nil |
|
|
STANDALONE STATEMENT OF
ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2014
(Rs. In Millions)
|
SOURCES OF FUNDS |
As at 30.09.2014 (Unaudited) |
|
EQUITY AND
LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
30825.215 |
|
(b) Reserves and Surplus |
18023.104 |
|
Sub-Total -
Shareholders' Funds |
48848.319 |
|
|
|
|
(2) Non-Current
Liabilities |
|
|
(a) long-term borrowings |
-- |
|
(c) Other long term liabilities |
1.358 |
|
(d) long-term provisions |
-- |
|
Sub-Total -
Non-Current Liabilities |
1.358 |
|
|
|
|
(3) Current
Liabilities |
|
|
(a) Short term borrowings |
3467.187 |
|
(b) Current maturities of long term borrowings |
-- |
|
(c) Other current liabilities |
84.492 |
|
(d) Short-term provisions |
45.851 |
|
Sub-Total - Current
Liabilities |
3597.530 |
|
|
|
|
TOTAL - EQUITY AND
LIABILITIES |
52447.207 |
|
|
|
|
ASSETS |
|
|
(1) Non-current
assets |
|
|
(a) Fixed Assets |
3.608 |
|
(b) Non-current Investments |
47561.293 |
|
(c) Deferred tax assets (net) |
12.009 |
|
(d) Long-term Loan and Advances |
104.873 |
|
Sub-Total -
Non-Current Assets |
47681.783 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
1459.090 |
|
(b) Current maturity of long term loans and advances |
500.000 |
|
(c) Cash and cash equivalents |
14.713 |
|
(d) Short-term loans and advances |
2543.114 |
|
(e) Other current assets |
248.507 |
|
Sub-Total - Current
Assets |
4765.424 |
|
|
|
|
TOTAL – ASSETS |
52447.207 |
Notes:
1. The Company, during the current quarter has allotted 449,704 equity
shares of Rs.10/- each, fully paid up, on exercise of options by employees, in
accordance with the Company's Employee Stock Option Scheme(s).
2. The main business of the Company is investment activity. Further, all
activities are carried out within
3. Share issue expenses for the half year ended September 30, 2014
amounting to Rs.50.907 millions net of tax have been adjusted against
Securities Premium Account.
4. Definition for Coverage Ratios:
DSCR = Profit before interest and exceptional and extraordinary items /
(Interest expense + Principal repayments of long term debt during the period).
ISCR = Profit before interest and exceptional and extraordinary items
Interest expense.
5. Net worth has been interpreted to mean the aggregate of the paid-up
share capital (including preference share capital), share premium account, and
reserves and surplus (excluding revaluation reserve) as reduced by the
aggregate of miscellaneous expenditure (to the extent not adjusted or written
off) and debit balance of the profit and loss account as defined in the
explanation to Clause 2 of the Listing Agreement for Cumulative Non-convertible
Redeemable Preference Shares.
6. Previous periods/year figures have been regrouped/reclassified to
make them comparable with those of current period.
7. The above financial results have been subjected to Limited Review by
the Statutory Auditors, reviewed by the Audit Committee and approved by the
Board of Directors at its meeting held on October 22, 2014
FIXED ASSETS:
Tangible Assets
· Motor Car
· Computers
· Office Equipment
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,
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.62.21 |
|
|
1 |
Rs.97.80 |
|
Euro |
1 |
Rs.77.48 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
-- PROFITABILITY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
65 |
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.