MIRA
INFORM REPORT
|
Report Date : |
05.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE ASSET RECONSTRUCTION COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Reliance Centre,
19, Walchand Hirachand Marg, Ballard Estate, Mumbai – 400 038, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
17.04.2006 |
|
|
|
|
Com. Reg. No.: |
11-161190 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.1000.000
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U45200MH2006PLC161190 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR20971G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCR3968G |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject operates as an asset
reconstruction and debt recovery company and also engages in the settlement of
debt and securitization, as well as acts as an agent of banks/financial
institutions. |
|
|
|
|
No. of Employees
: |
Information declined by the Management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4869000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part
of Reliance Group. It is an established company having satisfactory track
record. The company sales
turnover has declined resulting into dip in profit of the company during
financial year 2013. However, capital
base of the company seems to be decent liquidity position of the company is
fair. Trade relations
are fair. Business is active. Payment terms are reported to be usually
correct. The company can
be considered 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 |
ICRA |
|
Rating |
Short term bank lines: A1+ |
|
Rating Explanation |
Very strong degree of safety and low credit risk. |
|
Date |
March 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
31-03-2012.
INFORMATION DECLINED
Management non-cooperative
(Contact No.: 91-22-30479306)
LOCATIONS
|
Registered Office : |
Reliance Centre,
19, Walchand Hirachand Marg, Ballard Estate, Mumbai – 400 038, Maharashtra,
India |
|
Tel. No.: |
91-22-30479306 |
|
Fax No.: |
91-22-30479868 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Mumbai Office : |
570, Rectifier House, 2nd Floor, Naigaum Cross Road, Near Royal Industrial Estate, Wadala (West), Mumbai – 400 031, Maharashtra, India
|
|
Tel. No.: |
91-22-30479256 |
|
Fax No.: |
91-22-30479868 |
DIRECTORS
AS ON 31.07.2013
|
Name : |
Mr. Sujal Anil Shah |
|
Designation : |
Director |
|
Address : |
9, Ganesh Bhuvan, Natwar Nagar, Road No.2, Jogeshwari (East), Mumbai –
400 060, Maharashtra, India |
|
Date of Birth/Age : |
23.09.1968 |
|
Qualification : |
C.A. |
|
Date of Appointment : |
31.10.2006 |
|
DIN No.: |
00058019 |
|
|
|
|
Name : |
Rajeean Gangadharan Pillay |
|
Designation : |
Nominee Director |
|
Address : |
Flat No.2-B, Indian Bank Officer’s Bank Quarters, 9, Eldams Road,
Alwarpet, Chennai – 600 018, Tamilnadu, India |
|
Date of Birth/Age : |
19.05.1954 |
|
Date of Appointment : |
12.09.2013 |
|
DIN No.: |
06630480 |
|
|
|
|
Name : |
Mr. Asokan Arumugam |
|
Designation : |
Nominee Director |
|
Address : |
C2, Jolly Highrise Apartment, Palimala Road, Bandra (West), Mumbai –
400 050, Maharashtra, India |
|
Date of Birth/Age : |
03.11.1956 |
|
Date of Appointment : |
04.04.2013 |
|
DIN No.: |
01460456 |
|
|
|
|
Name : |
Dr. Radha Binod Barman |
|
Designation : |
Additional director |
|
Address : |
A/1/1006, Rishi Garden, Film City Road, Malad (East), Mumbai – 400 097,
Maharashtra, India |
|
Date of Birth/Age : |
01.08.1948 |
|
Date of Appointment : |
15.05.2013 |
|
DIN No.: |
02612871 |
|
|
|
|
Name : |
Mr. P. Paramasivam |
|
Designation : |
Nominee Director |
|
Address : |
Naperol Tower, Condominium, A-113, Rafi Ahmed Kidwai Road, Wadala
(West), Mumbai – 400 031, Maharashtra, India
|
|
Date of Birth/Age : |
04.03.1957 |
|
Date of Appointment : |
15.05.2013 |
|
DIN No.: |
06520927 |
|
|
|
|
Name : |
Mr. Shrikant Shanker Rege |
|
Designation : |
Additional Director |
|
Address : |
R-402, F-4, WP 845/848, Raheja Princess, Agar Bazar Road, Ahadur
Bander SK Bole Road, Dadar (West), Mumbai – 400 028, , Maharashtra,
India |
|
Date of Birth/Age : |
15.12.1956 |
|
Date of Appointment : |
11.07.2013 |
|
DIN No.: |
06554826 |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep Vrat |
|
Designation : |
Manager |
|
Address : |
Flat No.B-402, 4th Floor, Gundecha Heights, LBS Marg, Kanjurmarg
(West), Mumbai – 400 078, , Maharashtra, India |
|
Date of Birth/Age : |
30.12.1962 |
|
Date of Appointment : |
01.04.2012 |
|
PAN No.: |
AABPV4140R |
|
|
|
|
Name : |
Ms. Neema Tiwari |
|
Designation : |
Secretary |
|
Address : |
Flat No.202, Eden Garden Apartment, Sector – 5, Kharghar, Navi Mumbai
– 410 210, , Maharashtra, India |
|
Date of Birth/Age : |
22.02.1987 |
|
Date of Appointment : |
01.07.2013 |
|
PAN No.: |
AJWPN1608G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.07.2013
|
Names of Shareholders |
|
No. of Shares |
|
Reliance Capital Limited, India |
|
48964000 |
|
Corporation Bank, India |
|
11500000 |
|
General Insurance Corporation of India, India |
|
9000000 |
|
Indian Bank, India |
|
11500000 |
|
Dacecroft Limited, Cyprus |
|
9500000 |
|
Blue Ridge Limited, New York |
|
5890000 |
|
Blue Ridge Offshore Master Limited, New York |
|
3610000 |
|
Reliance Capital Limited, India jointly with Gautam Doshi |
|
8000 |
|
Reliance Capital Limited, India jointly with Surendra Pipara |
|
7000 |
|
Reliance Capital Limited, India jointly with Mohan Vellore |
|
7000 |
|
Reliance Capital Limited, India jointly with Hari Nair |
|
7000 |
|
Reliance Capital Limited, India jointly with Venkatrao Ponnada |
|
7000 |
|
Total
|
|
100000000 |
AS ON 31.07.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Government companies |
|
9.00 |
|
Nationalised or other banks |
|
23.00 |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
19.00 |
|
Bodies
corporate |
|
49.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject operates as an asset reconstruction
and debt recovery company and also engages in the settlement of debt and
securitization, as well as acts as an agent of banks/financial institutions. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the Management. |
|
|
|
|
Bankers : |
Indian Bank, 66,
Rajaji Salai, Chennai – 600 001, Tamilnadu, India |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
PAN No.: |
AAEFP3641G |
|
|
|
|
Enterprises
having significant influence over the Company : |
Reliance Capital Limited, India (CIN No.: L65910MH1986PLC165645) |
|
|
|
|
Trust to which
the Company acts as trustee : |
·
RARC AL Trust ·
RARC AL Plus Trust ·
RARC CB SOCL Trust ·
RARC IB Chennai Trust ·
RARC VB Pilve Trust |
CAPITAL STRUCTURE
AS ON 31.07.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 millions |
|
10000000 |
Preference Shares |
Rs.10/- each |
Rs.100.000 millions |
|
|
Total |
|
Rs.1100.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.10/- each
|
Rs.1000.000
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)
Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
(b) Reserves & Surplus |
217.225 |
141.237 |
30.725 |
|
(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) |
1217.225 |
1141.237 |
1030.725 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
18.937 |
98.719 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.003 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term provisions |
1.668 |
1.661 |
0.000 |
|
Total Non-current Liabilities (3) |
1.668 |
20.598 |
98.722 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
0.000 |
0.000 |
0.000 |
|
(c) Other current
liabilities |
22.951 |
59.164 |
69.827 |
|
(d) Short-term provisions |
8.035 |
2.337 |
0.000 |
|
Total Current Liabilities (4) |
30.986 |
61.501 |
69.827 |
|
|
|
|
|
|
TOTAL |
1249.879 |
1223.336 |
1199.274 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
0.025 |
0.031 |
0.037 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(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 |
64.716 |
42.510 |
195.342 |
|
(c) Deferred tax assets (net) |
1.798 |
0.821 |
0.000 |
|
(d) Long-term Loan and Advances |
49.898 |
18.937 |
3.280 |
|
(e) Other Non-current assets |
892.040 |
520.249 |
0.000 |
|
Total Non-Current Assets |
1008.477 |
582.548 |
198.659 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
8.168 |
27.563 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
0.000 |
0.000 |
0.000 |
|
(d) Cash and cash
equivalents |
220.002 |
504.099 |
990.725 |
|
(e) Short-term loans
and advances |
11.329 |
90.636 |
2.159 |
|
(f) Other current assets |
1.903 |
18.490 |
7.731 |
|
Total Current Assets |
241.402 |
640.788 |
1000.615 |
|
|
|
|
|
|
TOTAL |
1249.879 |
1223.336 |
1199.274 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
44.353 |
97.727 |
33.976 |
|
|
|
Other Income |
99.845 |
99.840 |
60.319 |
|
|
|
TOTAL (A) |
144.198 |
197.567 |
94.295 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
16.879 |
18.669 |
17.774 |
|
|
|
Other expenses |
13.134 |
10.126 |
9.974 |
|
|
|
Prior period items |
0.000 |
0.000 |
16.710 |
|
|
|
TOTAL (B) |
30.013 |
28.795 |
44.458 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
114.185 |
168.772 |
49.837 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.668 |
4.994 |
7.678 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
112.517 |
163.778 |
42.159 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
0.006 |
0.006 |
0.002 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
112.511 |
163.772 |
42.157 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
36.522 |
53.260 |
20.013 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
75.989 |
110.512 |
22.144 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.76 |
1.11 |
0.22 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
52.70
|
55.94 |
23.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
253.67
|
167.58 |
124.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.51
|
13.88 |
4.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.14 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.02 |
0.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
7.79
|
10.42 |
14.33 |
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 |
1000 |
1000 |
1000 |
|
Reserves & Surplus |
30.725 |
141.237 |
217.225 |
|
Net
worth |
1,030.725 |
1,141.237 |
1,217.225 |
|
|
|
|
|
|
long-term borrowings |
98.719 |
18.937 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
98.719 |
18.937 |
0.000 |
|
Debt/Equity
ratio |
0.096 |
0.017 |
0.000 |
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) |
|
Revenue from operations |
33.976 |
97.727 |
44.353 |
|
|
|
187.635 |
(54.615) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
33.976 |
97.727 |
44.353 |
|
Profit |
22.144 |
110.512 |
75.989 |
|
|
65.18% |
113.08% |
171.33% |
LOCAL AGENCY FURTHER INFORMATION
Details of Current
maturities of long-term debt:
|
Particulars |
31.03.2013 (Rs.
in millions) |
31.03.2012 (Rs.
in millions) |
31.03.2011 (Rs.
in millions) |
|
Current maturities of long-term debt |
9.613 |
27.563 |
0.000 |
|
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 |
No |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10228350 |
14/05/2010 |
1,000,000,000.00 |
INDIAN BANK |
66, RAJAJI
SALAI, CHENNAI, TAMILNADU - 600001, INDIA |
A88866918 |
|
Unsecured Loan |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG-TERM
BORROWINGS |
|
|
|
Other loans and advances [Unsecured Loan
of Rs.200.000 millions (outstanding as on March 31, 2013 - Rs. Nil (previous
year Rs.27.563 millions)) from Sponsor Company was availed in FY 2009-10
carrying interest @ 5% p.a. An additional loan of Rs.25.600 millions
(outstanding as on March 31, 2013 Rs.9.613 millions (previous year Rs.18.937
millions)) was availed in FY 2011-12 carrying interest @ 5.5% p.a. from the
sponsor company for the purpose of acquisition of Non Performing Assets (NPA)
assets from Banks/Financial institutions.] |
0.000 |
18.937 |
|
Total
|
0.000 |
18.937 |
ECONOMIC AND MARKET OVERVIEW:
During the year,
economic growth rate slowed to around 5.3%. However, the economy has started showing
signs of recovery with the GDP rate expanding by 1.3% for the quarter ended
December 2012. This raises hopes for a sustained though moderately paced
recovery for Financial Year 2013-14. The size of India’s distressed asset
market though, is substantial. Although all distressed assets may not be
amenable to resolution and recovery by an ARC, the size of the market is
sufficient for all ARCs. Gross NPAs of all Public Sector Banks jumped to
Rs.1841930.000 millions in December 2012 compared to Rs.1371020.000 millions in
March 2012, The Gross NPA to Gross Advances ratio was 4.18%, while the Net NPA
to Net Advances ratio was 2.12% as on December 2012. The figures for Gross NPAs
in corporate lending (included in the Total NPA figures) were Rs.988840.000 millions
in December 2012 as against Rs.682210.000 millions in March 2012. The large
quantum of NPAs, combined with shortage of capital faced by Banks, would propel
the Banks to offload their NPAs. The challenges for ARCs will then be more on
raising adequate funds for acquisition and resolution of NPAs.
The NPA picture
would have been much worse but for the restructuring of advances done by banks
during the year which has enabled these banks to classify them as standard
assets (Restructured Standard Assets in the Banking sector were Rs.2180680.000
millions as on March 31, 2012; current figures not available)
PERFORMANCE
During the year,
the Company acquired 11 NPAs with total outstanding dues of Rs.322.300 millions
from two banks/FIs for an aggregate consideration of Rs.67.000 millions. Of the
11 assets acquired during the year, the approach to resolution of five cases
has already been finalized and that for the other six is being worked out.
Provision for
diminution in valuation of investment has been done in three cases. While in
one case the provision was necessitated consequent to the borrower approaching
them for reschedulement of dues, provision for the other two cases was done in
line with RBI guidelines on the same. Given their small exposure, the
provisions will not impact the Company’s profitability significantly. In all
the remaining cases, (including the one in which reschedulement was granted
during the year), payments are being received as per plan.
ASSETS UNDER MANAGEMENT
As of March 31,
2013, cumulative Security Receipts (SRs) issued amounted to Rs.3312.200
millions, out of which SRs of Rs.477.700 millions were outstanding. In addition
to these, outstanding acquisitions in the Company’s books stood at Rs.59.500
millions as on that date.
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.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
48 |
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.