MIRA INFORM REPORT
|
Report Date : |
08.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
KOTAK MAHINDRA CAPITAL COMPANY LIMITED |
|
|
|
|
Registered
Office : |
27 BKC, 1st Floor, Plot No. C-27, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai-400 051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
27.07.1995 |
|
|
|
|
Com. Reg. No.: |
11-134050 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 34.361 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U67120MH1995PLC134050 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
It operates as a full – service Investment bank and is also a trading cum clearing member of the National Stock Exchange of India on all three segments viz. Cash, Futures & Options and Wholesale Debt Market. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 |
|
Maximum Credit Limit : |
USD 15000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a subsidiary of “Kotak Mahindra Bank Limited”. It is a
well-established company having fine track record. The rating reflects healthy financial risk profile marked by adequate
liquidity position and decent profitability achieved by the company. 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.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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 |
CRISIL |
|
Rating |
Short term Debt Programmer = A1+ |
|
Rating Explanation |
Very strong degree of safety degree and lowest credit risk. |
|
Date |
10.02.2014 |
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 Co-operative (91-22-66056825)
LOCATIONS
|
Registered Office : |
27 BKC, 1st Floor, Plot No. C-27, "G"
Block, Bandra Kurla Complex, Bandra (East), Mumbai-400 051, Maharashtra,
India |
|
Tel. No.: |
91-22-43360000 |
|
Fax No.: |
91-22-67132445 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2013
|
Name : |
Dr. Shankar Acharya |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Uday Kotak |
|
Designation : |
Executive Vice Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Dipak Gupta |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Prof. S. Mahendra Dev |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N.P. Sarda |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amit Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jayaram |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. Asim Ghosh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prakash Apte |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Names of Shareholders |
|
No. of Shares |
|
Kotak Mahindra Bank Limited, the holding company |
|
3436149 |
|
Total |
|
3436149 |
BUSINESS DETAILS
|
Line of Business : |
It operates as a full – service Investment bank and is
also a trading cum clearing member of the National Stock Exchange of India on
all three segments viz. Cash, Futures and Options and Wholesale Debt Market. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Holding Company : |
Kotak Mahindra Bank Limited (KMBL) |
|
|
|
|
Fellow
Subsidiaries: |
(Head Office : 1st Floor, Bakhtawar Building, 229, Nariman Point, Mumbai – 400021, Maharashtra, Indai)
|
|
|
|
|
Associates
(Enterprises in which the Company has significant influence) |
Infina Finance Private Limited. (The company holds 49.99% of the equity share capital) |
|
|
|
|
Joint Venture |
Kotak Mahindra Old Mutual Life Insurance Limited – Joint Venture with Kotak Mahindra Bank Limited; Old Mutual Plc; Kotak Mahindra Prime Limited. |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3436149 |
Equity Shares |
Rs.10/- each |
Rs.34.361 Millions |
|
|
|
|
|
Rights, preferences
and restrictions attached to equity shares:
(i) Right to receive dividend as may be approved by the Board / Annual General Meeting.
(ii) The equity shares are not repayable except in the case of a buy back, reduction of capital or winding up in terms of the provisions of the Companies Act, 1956.
(iii) Every member of the company holding equity shares has a right to attend the General Meeting of the company and has a right to speak and on a showof hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share of the paid-up capital of the company.
Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
reporting period:
|
Particulars |
Number |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
4,116,149 |
41.161 |
|
Add : Shares issued during the year |
-- |
-- |
|
Less : Shares bought back during the year |
680,000 |
6.800 |
|
Shares outstanding at the end of the year |
3,436,149 |
34.361 |
Details of shares
held by the holding company, the ultimate holding company including shares held
by subsidaries or associates of the holding company or the ultimate holding
company, together with their nominees, in aggregate:
|
Particulars |
Number of Equity shares |
|
Kotak Mahindra Bank Limited, the holding company |
3,436,149 |
|
Kotak Securities Limited, a subsidiary of the holding company |
-- |
Details of shares
held by each shareholder, together with their nominees, holding more than 5%
shares:
|
Particulars |
Number of shares
held |
% of holding |
|
Kotak Mahindra Bank Limited |
3,436,149 |
100.00% |
|
Kotak Securities Limited |
-- |
-- |
Aggregate number and
class of shares bought back for a period of 5 years immediately preceding the
Balance Sheet date:
|
Particulars |
As at 31 March,
2013 |
|
Equity shares of Rs.10 each |
660,000 |
Aggregate number and
class of shares allotted as fully paid up for consideration other than cash for
a period of 5 years immediately preceding the Balance Sheet date:
Nil equity shares (Previous year 156,129 equity shares – allotted as fully paid – up pursuant to the Scheme of Arrangement approved by the Bombay High Court during the financial year 2007-08)
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 |
34.361 |
41.161 |
41.161 |
|
(b) Reserves & Surplus |
3851.420 |
4911.685 |
4852.304 |
|
(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) |
3885.781 |
4952.846 |
4893.465 |
|
|
|
|
|
|
(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 |
10.000 |
|
(d) long-term
provisions |
75.160 |
65.275 |
43.814 |
|
Total Non-current
Liabilities (3) |
75.160 |
65.275 |
53.814 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
63.808 |
272.317 |
125.234 |
|
(c) Other
current liabilities |
51.252 |
78.696 |
29.376 |
|
(d) Short-term
provisions |
57.399 |
50.661 |
53.485 |
|
Total Current
Liabilities (4) |
172.459 |
401.674 |
208.095 |
|
|
|
|
|
|
TOTAL |
4133.400 |
5419.795 |
5155.374 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
182.242 |
186.294 |
199.350 |
|
(ii)
Intangible Assets |
1.273 |
0.879 |
1.173 |
|
(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 |
3068.561 |
3237.662 |
2988.508 |
|
(c) Deferred tax assets (net) |
15.800 |
20.423 |
8.759 |
|
(d) Long-term Loan and Advances |
11.383 |
139.107 |
111.183 |
|
(e) Other
Non-current assets |
0.000 |
952.300 |
0.000 |
|
Total Non-Current
Assets |
3279.259 |
4536.665 |
3308.973 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
372.386 |
396.033 |
0.000 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
98.803 |
445.399 |
318.340 |
|
(d) Cash
and cash equivalents |
271.170 |
16.555 |
1503.511 |
|
(e) Short-term
loans and advances |
10.463 |
16.974 |
12.915 |
|
(f) Other
current assets |
1.319 |
8.169 |
11.635 |
|
Total
Current Assets |
754.141 |
883.130 |
1846.401 |
|
|
|
|
|
|
TOTAL |
4133.400 |
5419.795 |
5155.374 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
623.087 |
596.104 |
1223.557 |
|
|
|
Other Income |
209.548 |
220.395 |
329.519 |
|
|
|
TOTAL (A) |
832.635 |
816.499 |
1553.076 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefits Expense |
384.690 |
490.023 |
591.832 |
|
|
|
Others Expenses |
195.182 |
214.691 |
237.043 |
|
|
|
TOTAL (B) |
579.872 |
704.714 |
828.875 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
252.763 |
111.785 |
724.201 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.391 |
0.473 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
251.372 |
111.312 |
724.201 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16.098 |
17.082 |
22.184 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
235.274 |
94.230 |
702.017 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
68.139 |
34.849 |
183.131 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
167.135 |
59.381 |
518.886 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Financial advisory fees |
159.938 |
168.022 |
159.618 |
|
|
TOTAL EARNINGS |
159.938 |
168.022 |
159.618 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
41.47 |
14.43 |
126.06 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
20.07
|
7.27 |
33.41 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
37.76
|
15.81 |
57.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
24.79
|
4.36 |
32.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.02 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
CURRENT Ratio (Current Asset/Current Liability) |
|
4.37
|
2.20 |
8.87 |
|
|
|
|
|
|
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 |
41.161 |
41.161 |
34.361 |
|
Reserves & Surplus |
4852.304 |
4911.685 |
3851.420 |
|
Net
worth |
4893.465 |
4952.846 |
3885.781 |
|
|
|
|
|
|
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 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1223.557 |
596.104 |
623.087 |
|
|
|
-51.281 |
4.527 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1223.557 |
596.104 |
623.087 |
|
Profit |
518.886 |
59.381 |
167.135 |
|
|
42.41% |
9.96% |
26.82% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
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 |
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 |
No |
|
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 |
LITIGATIONS DETAILS
|
LITIGATION DETAILS |
|||||||
|
Bench:- Bombay |
|||||||
|
Lodging No. : |
ITXAL/995/2013 |
Failing Date:- |
06/07/2013 |
Reg. No.:- |
ITXA/1818/2013 |
Reg. Date:- |
30/09/2013 |
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX |
Respondent:- |
KOTAK MAHINDRA CAPITAL COMPANY LIMITED |
||||
|
Petn.Adv:- |
PADMA DIVAKARV (0) |
Resp. Adv.: |
ATUL K. JASANI (0) |
||||
|
District:- |
MUMBAI |
||||||
|
Bench:- |
DIVISION |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Pre-Admission |
Stage:- |
|||||
|
Last Date:- |
20/01/2014 |
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ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
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Act. : |
Income Tax Act,1961 |
Under Section 260A |
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CORPORATE INFORMATION
Subject is a Category I Merchant banker registered with SEBI. It operates as a full – service Investment bank and is also a trading cum clearing member of the National Stock Exchange of India on all three segments viz. Cash, Futures and Options and Wholesale Debt Market.
BUSINESS OPERATIONS
A. EQUITIES
The Indian equity capital markets witnessed a modest recovery in FY 2012-13 on the back of three large Government of India disinvestments. The primary markets continued to remain subdued with Rs 267.9 billion being raised across Initial Public Offerings (IPOs), Follow-on Public Offerings (FPO), Institutional Placement Programs (IPP), Qualified Institutional Placements (QIP) and Rights issues while the secondary markets witnessed a fund raise of Rs 280.2 billion through Offers For Sale (OFS).
KMCC completed sixteen transactions raising a total of Rs. 245.9 billion in FY 2013. The company had a strong year managing a number of marquee transactions that straddled the entire suite of capital market products including four IPOs, seven OFS, three QIPs, one IPP and one Rights issue.
KMCC dominated the IPO market, managing the four largest IPO issuances to hit the markets during the year. These include: Bharti Infratel, PC Jeweller, CARE Ratings, and Speciality Restaurants. This also reinforced KMCC’s track record of introducing new sectors to India’s capital markets with the first telecom tower company and the first fine dining restaurant chain to get listed in India. The company also performed strongly in follow-on transactions across QIP, IPP and OFS formats.
The spread of sectors
that we brought to the market ranged from:
- Consumer plays like Speciality Restaurants, PC Jeweller, Mahindra Holidays and DB Corp
- Companies in capital intensive industries such as Bharti Infratel, Gujarat Pipapav Port and NTPC
- Financial services companies like Mahindra Finance, CARE Ratings and Cholamandalam
The Equity Deals that
were concluded by the Company during the year include:
- Bharti Infratel IPO: Rs 41.7 billion
- PC Jeweller IPO: Rs. 6.0 billion
- CARE Ratings IPO: Rs. 5.4 billion
- Speciality Restaurants IPO: Rs 1.8 billion
- NTPC OFS: Rs 114.7 billion
- Oil India OFS: Rs 31.4 billion
- Steel Authority of India OFS – Rs 15.2 billion
- Hindustan Copper OFS: Rs 8.1 billion
- DB Corp OFS: Rs 2.5 billion
- Mahindra Holidays OFS: Rs 0.9 billion
- Eros International OFS: Rs. 0.5 billion
- Mahindra and Mahindra Financial Services QIP: Rs. 8.7 billion
- Cholamandalam QIP: Rs. 3.0 billion
- Gujarat Pipavav Port QIP: Rs. 2.0 billion
- Godrej Industries IPP: Rs 3.7 billion
- EPC Industrié Rights Issue: Rs. 0.4 billion
KMCC was ranked the #1 Book Running Lead Manager for Initial Public Offerings in FY 2013. KMCC was ranked #2 across all Equity Offerings (IPO, FPO, QIP, OFS, IPP, Rights) in FY 2013.
The Debt Deals
(Public Issue of NCDs) that were concluded by the Company during the year
include:
- Shriram Transport Finance Company: Rs 6.0 billion
- Religare Finvest: Rs 3.3 billion
- Rural Electrification Corporation: Rs 20.1 billion
- Power Finance Corporation: Rs 6.9 billion
- India Infrastructure Finance Company: Rs 28.8 billion
- Housing and Urban Development Corporation: Rs 21.9 billion
- Indian Railway Finance Corporation: Rs 53.7 billion
- Power Finance Corporation: Rs 1.6 billion
- Housing and Urban Development Corporation: Rs 2.0 billion
- Rural Electrification Corporation: Rs 1.3 billion
- Indian Railway Finance Corporation: Rs 4.2 billion
- India Infrastructure Finance Company: Rs 2.7 billion
- National Housing Bank: Rs 1.9 billion
- Jawaharlal Nehru Port Trust: Rs 0.4 billion
B. M&A, FINANCIAL
SPONSORS, INFRASTRUCTURE AND RESTRUCTURING ADVISORY
The ongoing Eurozone crisis accompanied by a slowdown in the Indian economy and worsening domestic macroeconomic indicators, adversely impacted M&A activity in India in FY 2013. The M&A market in India during the year saw a total deal value of US$ 36.26 billion across 828 deals as against US$ 43.09 billion across 950 deals in the previous year.
A moderation in India’s growth rate coupled with other factors led to a slowdown in inbound deals. The United States, United Kingdom and Japan were the top 3 countries to make acquisitions in India. With respect to outbound deals, while Indian companies continue to intently look at international markets for strategic acquisitions, global economic headwinds resulted in the mood remaining cautious through the year. Investments by private equity funds, on the other hand, continued to grow.
During the year, KMCC advised on a wide array of nineteen transactions ranging from Acquisitions and India Entry, Divestments, Internal Restructurings, Private Equity investments and Open Offers/ Delistings
KMCC entered into an exclusive strategic alliance for cross-border MandA advisory services between India and Japan with Sumitomo Mitsui Banking Corporation (“SMBC”) and SMBC Nikko Securities Inc. (“SMBC Nikko”), a wholly-owned subsidiary of SMBC. SMBC is the core financial institution of Sumitomo Mitsui Financial Group, the second largest financial services group in terms of market capitalization in Japan while SMBC Nikko is one of the largest full-service securities and investment banking firms in Japan. The India-Japan corridor is among the most important and active markets for cross-border M&A involving India. In 2010, Kotak and SMBC had entered into a Memorandum of Understanding (MoU) for Business Cooperation across various businesses of mutual interest, subject to relevant regulations and the investment banking alliance completes a holistic bouquet of offerings, serving corporates in India and Japan for India-Japan flows and deals. Kotak Investment Banking and GCA Savvian Corporation have mutually concluded their exclusive strategic cooperation agreement for M&A Advisory Services between India and Japan.
The Advisory deals that were announced/ concluded by the Company during the year include:
- Divestment of controlling stake in Apollo Health Street Limited to Sutherland Global Services Limited
- Divestment of 74% stake in GMR Jadcherla Expressways Limited by GMR Highways Limited to Macquarie SBI Infrastructure Fund – US$ 36.3 million
- Acquisition of Hutchison Global Services by Tech Mahindra – US$ 87.1 million
- Acquisition of significant minority stake in Arch Pharmalabs Limited by Mitsui and Company Limited, Japan – US$ 68.3 million
- Strategic Alliance Agreement between Essar Ports Limited and Port of Antwerp International and placement of Global Depository Receipts – US$ 31.0 million
- Private equity investment in TVS Logistics Limited by Kohlberg Kravis Roberts and Company L.P. (KKR) and Goldman Sachs – US$ 51.6 million
- Private equity investment in Super Religare Laboratories by Jacob Ballas and International Finance Corporation (IFC) – US$ 66.2 million
- Private equity investment in Trivitron Healthcare led by Fidelity Growth Partners
- Preferential allotment of equity shares by Marico to GIC and Baring India Private Equity
– US$ 96.3 million
- Delisting Offer for Patni Computer Systems Limited – US$ 223.0 million
- Delisting Offer for Indo Tech Transformers Limited
- Merger of Hero Investments Private Limited with Hero MotoCorp Limited
- Merger of Suzuki Powertrain India Limited with Maruti Suzuki India Limited – US$ 269.1 million
- Merger of Shriram Retail Holdings Private Limited and Shriram Enterprise Holdings Private Limited With Shriram City Union Finance Limited
- Advisor to the Promoter Group for the Demerger of non-IT business from Wipro Limited
- Open Offer for Capital First Limited by Warburg Pincus – US$ 46.2 million
- Open Offer for Shree Digvijay Cement Company Limited by Votorantim Cimentos S.A. – US$ 25.3 million
- Open Offer for Sunshield Chemicals Limited by Solvay S.A. – US$ 1.8 million
- Advisor to the committee of Independent Directors for the Open Offer for GSK Consumer Limited – US$ 864.2 million
In the M&A league tables, KMCC was ranked #4 by volume of deals and #12 by value of deals in FY 2013
3. AWARDS AND
RECOGNITIONS
During the year, KMCC
received many prestigious industry awards:
1) Best Investment Bank in India by FinanceAsia – 2012
2) Best Equity House in India by FinanceAsia – 2012
3) Dealmaker of the year for Qualified Institutional Placements in the Businessworld Awards - India’s Best Dealmakers 2012
4) Deal of the year for the MandM Financial Services QIP in the Businessworld Awards - India’s Best Dealmakers 2012
5) Securities Advisory Firm of the Year in India, Corporate INTL Global Awards 2012
6) Investment Bank of the Year in India, ACQ Global Awards 2012
7) Best Domestic Investment Bank by Asset Asian Awards 2012
CONTINGENT
LIABILITIES
Rs. In Millions
|
Particular |
31.03.2013 |
31.03.2012 |
|
(a) Claims against the Company not acknowledged as debts Show cause cum demand notice in respect of service tax |
14.788 |
18.591 |
|
Demand notice in respect of Income tax |
6.331 |
-- |
|
(b) Guarantee on behalf associates Hongkong and Shanghai Banking Corporation Limited (Singapore) (Rupee equivalent of Sing $ 2,000,000) |
87.440 |
80.955 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10100170 |
13/12/2006 |
1,068,200.00 |
KOTAK MAHINDRA PRIME LIMITED |
36-38B NARIMAN BHAVAN 227NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
A08449670 |
* Date of charge modification
FIXED ASSETS
- Buildings
- Computers
- Furniture and Fixtures
- Vehicles
- Office equipment
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.60.04 |
|
|
1 |
Rs.101.97 |
|
Euro |
1 |
Rs.83.58 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
64 |
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.