MIRA INFORM REPORT
|
Report Date : |
16.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
ASSET RECONSTRUCTION COMPANY ( |
|
|
|
|
Registered
Office : |
The Ruby, 10th Floor, 29, Senapati Bapat Marg, Dadar (West),
Mumbai – 400 028, Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
11.02.2002 |
|
|
|
|
Com. Reg. No.: |
11-134884 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.3248.971 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65999MH2002PLC134884 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA21246B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAECA3878M |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged into
corporate asset reconstruction business and retail asset reconstruction
business. |
|
|
|
|
No. of Employees
: |
279 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 58829000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an
established company having satisfactory track record. There seems some
dip in the turnover and drastic dip in the profits of the company during
financial year 2013. However, networth of the company is satisfactory. No
borrowings recorded by the company. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long Term Issuer Rating of (IND ‘A’) (Withdrawn) |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
January, 2013 |
Note:
The instrument rating has been withdrawn as
the company has closed the bank loan facility. The long term issuer rating has
been withdrawn as the company has chosen to stop participating in the rating
process. Therefore, India Rating will no longer have sufficient information to
maintain rating.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. Badal Chauhan |
|
Designation : |
Manager |
|
Contact No.: |
91-22-66581300 |
|
Date : |
16.06.2014 |
LOCATIONS
|
Registered Office : |
The Ruby, 10th Floor, 29, Senapati Bapat Marg, Dadar
(West), Mumbai – 400 028, Maharashtra, India |
|
Tel. No.: |
91-22-66581300 |
|
Fax No.: |
91-22-66581313 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Times Tower, 9th Floor, Kamala Mills Compound, S.B. Marg,
Lower Parel (West), Mumbai – 400 013, Maharashtra, India |
DIRECTORS
AS ON 23.09.2013
|
Name : |
Ms. Soundara Mahadevan Kumar |
|
Designation : |
Nominee Director |
|
Address : |
4A/B2, Harbour Heights, Colaba, Mumbai – 400 005,
Maharashtra, India |
|
Date of Birth/Age : |
15.08.1954 |
|
Qualification : |
B.
Sc. |
|
Date of Appointment : |
26.11.2012* |
|
DIN No.: |
01974515 |
|
* Ms. Soundara Kumar was
appointed as Nominee Director with effect from November 26, 2012. Ms.
Soundara Kumar was appointed as Chairperson of the Board of Directors with
effect from December 5, 2012. |
|
|
|
|
|
Name : |
Rudran Raman Puthukulangara |
|
Designation : |
Managing Director |
|
Address : |
A-Wing, 403, 4th Floor El-Dorado CHS Limited,
Kashinath Dhuru Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India |
|
Date of Birth/Age : |
22.12.1949 |
|
Qualification : |
M.Com,
LLB, CAIIB |
|
Experience : |
43
Years |
|
Date of Appointment : |
24.04.2012 |
|
DIN No.: |
00546638 |
|
PAN No.: |
AAKPP8102C |
|
|
|
|
Name : |
Mr. Ravindranath Babu Bannanje |
|
Designation : |
Nominee Director |
|
Address : |
Jolly Maker Apartment No.2, Flat No.21, Cuffe Parade, Mumbai – 400
005, Maharashtra, India |
|
Date of Birth/Age : |
30.04.1955 |
|
Qualification : |
Mechanical
Engineer |
|
Date of Appointment : |
03.07.2008 |
|
DIN No.: |
02156076 |
|
|
|
|
Name : |
Mrutyunjayarao Kasturi |
|
Designation : |
Nominee Director |
|
Address : |
Flat No. B-15, Peregrine Apartments, Behind Kohinoor Hotel, 400 Veer Savarkar
Marg, Mumbai – 400 025, Maharashtra, India |
|
Date of Birth/Age : |
20.03.1956 |
|
Qualification : |
Mechanical
Engineer |
|
Date of Appointment : |
12.08.2009 |
|
DIN No.: |
01077289 |
|
|
|
|
Name : |
Mr. Avinash Chander Chugh |
|
Designation : |
Director |
|
Address : |
III-H-21, Lajpath Nagar-3, New Delhi – 110 024,
India |
|
Date of Birth/Age : |
18.11.1954 |
|
Qualification : |
MA
(Economics), MBA and Certified Associate of Indian Institute of Bankers |
|
Date of Appointment : |
27.12.2011 |
|
DIN No.: |
05158107 |
|
|
|
|
Name : |
Mr. Sadashiv Srinivas Rao |
|
Designation : |
Additional Director |
|
Address : |
3, Krishna Kunj, 14th Road, Chembur,
Mumbai – 400 071, Maharashtra, India |
|
Date of Birth/Age : |
17.06.1960 |
|
Date of Appointment : |
24.07.2013 |
|
DIN No.: |
01245772 |
|
|
|
|
Name : |
Mr. Sanjaykumar Nandkishore Khemani |
|
Designation : |
Director |
|
Address : |
1901-A, Jasmine Towers, Vasant Vihar, Poharan Road No.2, Thane – 400
610, Maharashtra, India |
|
Date of Birth/Age : |
01.01.1968 |
|
Qualification : |
C.A.
and C.S. |
|
Date of Appointment : |
14.01.2011 |
|
DIN No.: |
00072812 |
|
|
|
|
Name : |
Mr. Rajinder Singh Loona |
|
Designation : |
Director |
|
Address : |
Flat No.1305, 13th Floor Kingston Tower,
G.D Ambedkar Marg, Parel, Mumbai – 400 012, Maharashtra, India |
|
Date of Birth/Age : |
21.09.1951 |
|
Qualification : |
B.
Sc., LL.B. |
|
Date of Appointment : |
02.02.2012 |
|
DIN No.: |
02305074 |
|
|
|
|
Name : |
Rajiva Tej Bahadur |
|
Designation : |
Director |
|
Address : |
290, Eldeco Green, Gomti Nagar, Lucknow – 226 010,
Uttar Pradesh, India |
|
Date of Birth/Age : |
06.08.1950 |
|
Qualification : |
B.
Sc., LL.D, LL.B, LL.M |
|
Date of Appointment : |
16.03.2012 |
|
DIN No.: |
05193258 |
KEY EXECUTIVES
|
Name : |
Mr. Ameet Ashok Kela |
|
Designation : |
Secretary |
|
Address : |
S-3/19, Vishram Sthal Society, Bangur Nagar,
Goregaon (West), Mumbai – 400 090, Maharashtra, India |
|
Date of Birth/Age : |
14.10.1981 |
|
Date of Appointment : |
09.07.2012 |
|
PAN No.: |
AFMPK3350G |
|
|
|
|
Name : |
Mr. Badal Chauhan |
|
Designation : |
Manager |
|
|
|
|
Name : |
Chandan
Churiwal |
|
Designation : |
AVP,
BG* |
|
|
|
|
Name : |
Manash
Chakraborty |
|
Designation : |
Head,
BG |
|
|
|
|
Name : |
Mr.
Mihir Nanavati |
|
Designation : |
EVP,
SBG and FAG* |
|
|
|
|
Name : |
S.
K. Amarnath |
|
Designation : |
SVP,
BG |
|
|
|
|
Name : |
S.
V. Venkatakrishnan, |
|
Designation : |
SVP,
BG |
|
|
|
|
Name : |
Mr.
Satish Gupta |
|
Designation : |
SVP,
BG* |
|
|
|
|
Name : |
Saugata
Bandyopadhyay |
|
Designation : |
SVP,
ROG* |
|
|
|
|
Name : |
Shruti
Kumar |
|
Designation : |
VP,
BG* |
|
|
|
|
Name : |
Sudhendranath
M. |
|
Designation : |
EVP,
LOG*# |
*
Employed for part of the year
#
Date of Completion of 60 Years is May 29, 2011
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 23.09.2013
Note:
Shareholding details file attached.
AS ON 23.09.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Public Financial
Institutions |
|
8.37 |
|
Nationalised/
Other Banks |
|
71.55 |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
15.36 |
|
Bodies
corporate |
|
4.59 |
|
Other
top fifty shareholders |
|
0.13 |
|
Total |
|
100.00 |
%20LIMITED%20-%20272345_MIRA%2016-Jun-2014_files/image002.gif)
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged into
corporate asset reconstruction business and retail asset reconstruction
business. |
||||
|
|
|
||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
279 (Approximately) |
|
|
|
|
Bankers : |
Not Available |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Kalyaniwalla and Mistry Chartered Accountants |
|
Address : |
Kalpataru Heritage, 127, M.G. Road, Fort, Mumbai – 400 001, Maharashtra, India |
|
PAN No.: |
AAAFK7554R |
|
|
|
|
Auditors 2 : |
|
|
Name : |
Khimji
Kunverji and Company Chartered Accountants |
|
Address : |
Sunshine Tower, Level 19,
Senapati Bapat Marg, Elphinestone, Mumbai – 400 013, Maharashtra, India |
|
PAN No.: |
AAAFK1142M |
CAPITAL STRUCTURE
AS ON 23.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
324897140 |
Equity Shares |
Rs.10/- each |
Rs.3248.971 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 |
3248.971 |
3248.971 |
3248.971 |
|
(b) Reserves & Surplus |
11458.360 |
11454.393 |
11058.623 |
|
(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) |
14707.331 |
14703.364 |
14307.594 |
|
|
|
|
|
|
(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 |
15.540 |
15.552 |
11.851 |
|
Total
Non-current Liabilities (3) |
15.540 |
15.552 |
11.851 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b)
Trade payables |
18.383 |
32.127 |
21.836
|
|
(c)
Other current liabilities |
766.982 |
1259.093 |
1673.115
|
|
(d)
Short-term provisions |
5.733 |
508.332 |
72.239
|
|
Total
Current Liabilities (4) |
791.098 |
1799.552 |
1767.190 |
|
|
|
|
|
|
TOTAL |
15513.969 |
16518.468 |
16086.635 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
485.554 |
494.990 |
72.764 |
|
(ii)
Intangible Assets |
11.994 |
41.700 |
71.855 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
31.078 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
7301.114 |
4699.124 |
7468.785 |
|
(c) Deferred tax assets
(net) |
147.364 |
158.045 |
256.419 |
|
(d) Long-term Loan
and Advances |
345.164 |
228.500 |
589.774 |
|
(e)
Other Non-current assets |
91.636 |
99.862 |
531.851 |
|
Total
Non-Current Assets |
8382.826 |
5722.221 |
9022.526 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
2560.801 |
2838.788 |
2501.347 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000
|
|
(c)
Trade receivables |
346.105 |
651.932 |
441.443
|
|
(d)
Cash and cash equivalents |
3826.853 |
6480.125 |
3310.918
|
|
(e)
Short-term loans and advances |
291.211 |
507.317 |
593.853 |
|
(f)
Other current assets |
106.173 |
318.085 |
216.548 |
|
Total
Current Assets |
7131.143 |
10796.247 |
7064.109 |
|
|
|
|
|
|
TOTAL |
15513.969 |
16518.468 |
16086.635 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue
from operations |
1635.276 |
2387.640 |
1995.781 |
|
|
|
Other Income |
586.928 |
501.909 |
194.874 |
|
|
|
TOTAL (A) |
2222.204 |
2889.549 |
2190.655 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee
benefit expense |
210.492 |
276.503 |
284.017 |
|
|
|
Other
expenses |
1925.318 |
1304.173 |
1495.172 |
|
|
|
TOTAL (B) |
2135.810 |
1580.676 |
1779.189 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
86.394 |
1308.873 |
411.466 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
3.733 |
270.799 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
86.394 |
1305.140 |
140.667 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
51.874 |
60.396 |
68.385 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
34.520 |
1244.744 |
72.282 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
30.553 |
395.850 |
38.330 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
3.967 |
848.894 |
33.952 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
1747.151 |
1372.603 |
1437.966 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Contingency Reserve |
0.000 |
0.000 |
99.315 |
|
|
|
Transfer to General Reserve |
0.000 |
21.222 |
0.000 |
|
|
|
Proposed Dividends |
0.000 |
389.876 |
0.000 |
|
|
|
Provision for tax on Dividend |
0.000 |
63.248 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1751.118 |
1747.151 |
1372.603 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.01 |
2.61 |
0.10 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.18 |
29.38 |
1.55 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.11 |
52.13 |
3.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.43 |
10.67 |
0.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00 |
0.08 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
9.01 |
6.00 |
4.00 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
3248.971 |
3248.971 |
3248.971 |
|
Reserves & Surplus |
11058.623 |
11454.393 |
11458.360 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
14307.594 |
14703.364 |
14707.331 |
|
|
|
|
|
|
Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity ratio |
0.000 |
0.000 |
0.000 |
%20LIMITED%20-%20272345_MIRA%2016-Jun-2014_files/image004.gif)
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from operations |
1995.781 |
2387.640 |
1635.276 |
|
|
|
19.634 |
(31.511) |
%20LIMITED%20-%20272345_MIRA%2016-Jun-2014_files/image006.gif)
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from operations |
1995.781 |
2387.640 |
1635.276 |
|
Profit |
33.952 |
848.894 |
3.967 |
|
|
1.70% |
35.55% |
0.24% |
%20LIMITED%20-%20272345_MIRA%2016-Jun-2014_files/image008.gif)
LOCAL AGENCY FURTHER INFORMATION
Details of Current Maturities of Long Term
Debt: 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 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 |
No |
|
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 |
Yes |
|
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] |
PAN of Proprietor/Partner/Director, if available |
Yes |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS:
CASE
DETAILS
Bench:- Bombay
Presentation Date:- 24.02.2014
Lodging No.:- AOST/5381/2014
Filing Date:- 24.02.2014
Petitioner:- Reachwell
KSM Properties Private Limited
Respondent:- The
Asset Reconstruction Company (India) Limited
Petn. Adv.:- Satyan
Shivkumar Israni (I5817)
District:- Mumbai
Bench:- Single
Status:- Pre-Admission
Last Date:- 03.03.2014
Last Coram:- Registrar
(Judicial)
Act :- C.P.C.-(Interlocutory
Order)
Notes:
· The registered office of the Company was shifted from Times Tower, 9th Floor, Kamala Mills Compound, Lower Parel (West), Mumbai – 400 013 to the present address w.e.f. May 30, 2011.
· No Charges Exist for Company.
FINANCIAL PERFORMANCE:
Overall financial
performance of the Company, despite prevailing difficult economic environment
in the country, was satisfactory. The Company posted a total income of
Rs.2220.000 millions compared to Rs.2890.000 millions in the previous year. The
reduction in the total income is essentially due to significant reduction in
AUM and delays in planned recoveries.
There have been continued
efforts on overall costs reductions which is evident from the remarkable
decline in expenses (before write off and provisions) by 27% from Rs.560.000
millions to Rs.410.000 millions during the year.
However due to significant
increase in write offs by 64%, mainly due to regulatory requirements, amounting
to Rs.1780.000 millions compared to Rs.1090.000 millions during the previous
year the net profit of the Company has reduced to Rs.3.900 millions compared to
Rs.850.000 millions during the previous year.
MANAGEMENT DISCUSSION AND ANALYSIS:
Business overview
During the year, the Indian
economy registered a growth rate of 5% in terms of GDP as against 6.2 % in FY
2011-12. Inflation remained a concern, however it decelerated to 6-7% in later
part of the year giving some window to regulators for policy easing to
accelerate growth. Slowdown in the economy and higher cost of funds has
resulted in listed commercial banks showing a 51% rise in bad loans in the
fiscal year 2012-13 over the previous year. A study shows that bad loans after
making provisions or net NPA rose 51% to Rs.92,825 Crore for the fiscal year
ended March 2013 for 39 listed banks. Gross NPA ratio at system-level
increased, mainly on account of the deterioration in asset quality of public
sector banks. The spurt in NPAs could be mainly attributed to overall slowdown
prevailing in the economy of the country.
Despite quantum jump in NPA
across the banking sector the market for non-performing assets (NPAs) in India
continued to be seller driven with a significant gap in value offered by
prospective buyers of NPAs and banks expectations, which led to a low success
rate of consummation of sale of NPAs. However due to higher provisioning
requirements and the need of cleaning banks books there is an increasing
pressure on banks to sell NPAs. This is expected to boost up the acquisition
process going forward. Provisioning requirement for fresh restructured assets
is being increased to 5% in a phased manner to 2.75% w.e.f. April 1, 2013, to
3.75% with effect from March 31, 2014 and 5% with effect from March 31, 2015.
Several measures initiated
by the government including relaxation in FDI, modifications in SARFAESI Act,
Enforcement of Security Interest and Recovery of Debt Laws (Amendment) Bill,
equity ownership in NPAs etc. will ease the recovery of bad loans. Amendments
remove some hurdles and empower the banks and ARCs to get more legal protection
while restructuring loans and supporting weak units. Further, as per the recent
change, now ARCs will be able to convert debt into equity. This is expected to
help restructuring of potentially viable units significantly.
Operating performance
The operating performance
of the Company during the year is summarized below:
Acquisition
During the year, financial
assets involving total dues of Rs.22260.000 millions were acquired from 17
banks / financial institutions (sellers) for an aggregate consideration of
Rs.7410.000 millions. Majority of the acquisitions during the year have been
made from private sector banks.
During the year, while NPAs
with aggregate principal debt of over Rs.110000.000 millions were offered by
banks, on quite a few occasions, the portfolios were withdrawn by the banks.
The success rate of consummation of deals with banks where the Company
participated during the year was about 20%.
Up to March 31, 2013, the
company had acquired an aggregate debt of Rs.511070.000 millions at an average
price of 25% of the debt acquired.
Up to this year, the
Company has established relationship with 63 banks / financial institutions.
CONTINGENT LIABILITIES
CLASSIFIED AS (AS ON 31.03.2013):
·
Claims
against the company not acknowledged as debt – Rs.4.763 millions
FIXED ASSETS:
·
· Leasehold Improvements
· Office Equipment
· Computers
· Furniture and Fixtures
· Vehicles
· 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 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.59.48 |
|
|
1 |
Rs.100.93 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
42 |
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.