MIRA INFORM REPORT
|
Report Date : |
15.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
CREDIT ANALYSIS AND RESEARCH LIMITED |
|
|
|
|
Registered
Office : |
Godrej Coliseum, 4th Floor, |
|
|
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|
Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
21.04.1993 |
|
|
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|
Com. Reg. No.: |
11-071691 |
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Capital
Investment / Paid-up Capital : |
Rs.289.991 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L67190MH1993PLC071691 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s Shares are Listed on
the Stock Exchanges. |
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|
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|
Line of Business
: |
Credit Rating and Professional Risk Opinion Agency. |
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|
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|
No. of Employees
: |
594 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 19000000 |
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|
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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 second-largest credit rating agency in India. It is
well-established and reputed company having fine track record. The rating reflects company’s strong financial risk profile marked by
strong liquidity position and decent profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Mr. Chandresh |
|
Designation : |
Chief Financial Officer |
|
Contact No.: |
91-22-67543456 |
|
Date : |
12.09.2014 |
LOCATIONS
|
Registered / Head Office : |
Godrej Coliseum, 4th Floor, Somaiya Hospital Road, Off
Eastern Express Highway, Sion (East), Mumbai – 400022, Maharashtra, India |
|
Tel. No.: |
91-22-67543456 |
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Fax No.: |
91-22-67543457 |
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E-Mail : |
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Website : |
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Other Office : |
503, Kaledonia, Sahar Road, Near Andheri Railway Station,
Andheri (E), Mumbai – 400069, Maharashtra, India |
|
Tel. No.: |
91-22-61443456 |
|
Fax No.: |
91-22-61443556 |
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|
|
|
Regional office : |
Located At: ·
Ahmedabad ·
Bangalore ·
Chandigarh ·
Chennai ·
Coimbatore ·
Hyderabad ·
Jaipur ·
Kolkata ·
New Delhi ·
Pune ·
Republic of Maldives |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. A. K. Bansal |
|
Designation : |
Chairman |
|
Address : |
|
|
Date of Birth/Age : |
Dr. Ashima Goyal |
|
Qualification : |
Director (with
effect from August 26, 2014) |
|
Experience : |
|
|
Date of Appointment : |
Mr. S. Venkatraman |
|
PAN No.: |
Director |
|
Passport No.: |
|
|
Voter ID No.: |
Ms. Bharti Prasad |
|
DIN No.: |
Director (upto
August 23, 2014) |
|
|
|
|
Name : |
Mr. D. R. Dogra |
|
Designation : |
Managing Director & CEO |
|
Address : |
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|
Date of Birth/Age : |
Mr. Rajesh Mokashi |
|
Qualification : |
Dy. Managing Director |
KEY EXECUTIVES
|
AUDIT
COMMITTEE |
|
|
|
|
|
Name : |
Mr. A. K. Bansal – Chairman Mr. S. Venkatraman Dr. Ashima Goyal (with
effect from August 26, 2014) Ms. Bharti Prasad (upto
August 23, 2014) Mr. Rajesh Mokashi |
|
|
|
|
STAKEHOLDERS
RELATIONSHIP COMMITTEE |
|
|
|
|
|
Name : |
Mr. A. K. Bansal – Chairman Ms. Bharti Prasad (upto
August 23, 2014) Mr. D. R. Dogra |
|
|
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NOMINATION
& REMUNERATION COMMITTEE |
|
|
|
|
|
Name : |
Mr. S. Venkatraman – Chairman Mr. A. K. Bansal Ms. Bharti Prasad (upto
August 23, 2014) |
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RATING
COMMITTEE |
|
|
|
|
|
Name : |
Mr. Y. H. Malegam – Chairman Mr. V. Leeladhar Mr. V. K. Chopra Mr. P. P. Pattanayak Mr. D. R. Dogra |
|
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|
INVESTMENT
COMMITTEE |
|
|
|
|
|
Name : |
Mr. S. Venkatraman – Chairman Mr. D. R. Dogra Mr. Rajesh Mokashi |
|
|
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|
ESOP
COMPENSATION COMMITTEE |
|
|
|
|
|
Name : |
Mr. A. K. Bansal – Chairman Mr. S. Venkatraman Mr. D. R. Dogra |
|
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CORPORATE
SOCIAL RESPONSIBILITY COMMITTEE |
|
|
|
|
|
Name : |
Ms. Bharti Prasad – Chairperson (upto August 23, 2014) Mr. A. K. Bansal Mr. Rajesh Mokashi |
SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3204584 |
11.05 |
|
|
11338580 |
39.10 |
|
|
5855247 |
20.19 |
|
|
447210 |
1.54 |
|
|
20845621 |
71.88 |
|
|
|
|
|
|
5488430 |
18.93 |
|
|
|
|
|
|
1919998 |
6.62 |
|
|
304802 |
1.05 |
|
|
440271 |
1.52 |
|
|
93636 |
0.32 |
|
|
206144 |
0.71 |
|
|
28990 |
0.10 |
|
|
111501 |
0.38 |
|
|
8153501 |
28.12 |
|
Total Public shareholding (B) |
28999122 |
100.00 |
|
Total (A)+(B) |
28999122 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
28999122 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Credit Rating and Professional Risk Opinion Agency. |
GENERAL INFORMATION
|
No. of Employees : |
594 (Approximately) |
|
|
|
|
Bankers : |
·
IDBI Bank ·
HDFC Bank Limited ·
State Bank of India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Khimji Kunverji and Company Chartered Accountants |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Pravin Chandak and Associates Chartered Accountants |
|
|
|
|
Joint Venture : |
ARC Ratings Holding Pte Limited |
|
|
|
|
Subsidiary Company : |
Care Kalypto Risk Technologies Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs. 10/- each |
Rs.300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
28999122 |
Equity Shares |
Rs. 10/- each |
Rs.289.991 Millions |
|
|
|
|
|
a)
Reconciliation of the shares outstanding at the
beginning and at the end of the year
|
Equity Shares |
Number
of Shares |
Rs.
In Millions |
|
At the beginning of the year |
28552812 |
285.528 |
|
Issued during the year - Preferential Allotment |
446310 |
4.463 |
|
Outstanding
at the end of the year |
28999122 |
289.991 |
b)
Terms / rights attached to equity shares
The
company has only one class of equity shares having a par value of Rs. 10 per
share. Each holder of equity shares is entitled to one vote per share. The
company declares and pays dividends in Indian Rupees. The dividend proposed by
the Board of Directors is subject to approval of the shareholders at the
ensuing Annual General Meeting.
During
the year ended March 31, 2014, interim dividend of Rs. 18 per share was
distributed to equity shareholders and the Board of Directors has recommended a
final dividend of Rs. 10 per share. (March 31, 2013: Rs. 20 per share)
In
the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
c)
Aggregate number of bonus shares issued, share
issued for consideration other than cash and shares bought back during the
period of five years immediately preceding the reporting date
|
Equity Shares |
Number
of Shares |
|
Equity Shares allotted as fully paid up bonus shares |
20485869 |
|
Equity Shares
allotted as fully paid up pursuant to
contracts for consideration other than cash |
-- |
|
Equity Shares bought back by the company |
-- |
|
Equity Shares
allotted as fully paid up in exercise of
options granted under the ESOP |
291943 |
d)
Details of shareholders holding more than 5% shares
in the company
|
Equity Shares |
Number
of Shares |
% holding |
|
IDBI Bank Limited |
4818292 |
16.62% |
|
Canara Bank |
4342400 |
14.97% |
|
State Bank of India |
1751755 |
6.04% |
|
IL&FS Financial Services Limited |
996495 |
3.44% |
|
Bajaj Holdings and Investment Limited |
1707615 |
5.89% |
e)
The Company does not have a holding company
f)
Shares reserved for issue under options and contracts,
including the terms and amounts:
For details of Shares reserved for issue under the Employee Stock Option
Plan (ESOP) of the Company
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
289.991 |
285.528 |
285.528 |
|
(b) Reserves & Surplus |
4553.150 |
3953.438 |
3485.600 |
|
(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) |
4843.141 |
4238.966 |
3771.128 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
39.295 |
39.050 |
32.714 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
39.054 |
42.472 |
22.750 |
|
Total Non-current Liabilities (3) |
78.349 |
81.522 |
55.464 |
|
|
|
|
|
|
(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 |
421.986 |
393.260 |
384.045 |
|
(d) Short-term provisions |
438.064 |
340.235 |
70.985 |
|
Total Current Liabilities (4) |
860.050 |
733.495 |
455.030 |
|
|
|
|
|
|
TOTAL |
5781.540 |
5053.983 |
4281.622 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
515.045 |
511.555 |
483.409 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
0.000 |
0.365 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2000.806 |
1522.294 |
1044.327 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
120.613 |
108.423 |
115.895 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
1.340 |
|
Total Non-Current Assets |
2636.464 |
2142.637 |
1644.971 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
2676.160 |
2378.300 |
1746.943 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
141.707 |
218.891 |
156.260 |
|
(d) Cash and cash
equivalents |
267.191 |
271.658 |
685.993 |
|
(e) Short-term loans and
advances |
21.012 |
18.603 |
11.971 |
|
(f) Other current assets |
39.006 |
23.894 |
35.484 |
|
Total Current Assets |
3145.076 |
2911.346 |
2636.651 |
|
|
|
|
|
|
TOTAL |
5781.540 |
5053.983 |
4281.622 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
2294.646 |
1987.658 |
1780.750 |
|
|
|
|
Other Income |
356.572 |
286.305 |
282.112 |
|
|
|
|
TOTAL |
2651.218 |
2273.963 |
2062.862 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Employee Benefits Expenses |
605.993 |
507.881 |
422.409 |
|
|
|
|
Other Expenses |
222.265 |
140.990 |
126.523 |
|
|
|
|
TOTAL |
828.258 |
648.871 |
548.932 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1822.960 |
1625.092 |
1513.930 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION |
28.913 |
26.273 |
18.814 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX |
1794.047 |
1598.819 |
1495.116 |
||
|
|
|
|
|
|
||
|
Less |
TAX |
507.321 |
465.521 |
419.686 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX |
1286.726 |
1133.298 |
1075.430 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2726.249 |
2408.411 |
1784.829 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Proposed Dividend |
289.991 |
228.422 |
0.000 |
|
|
|
|
Interim Dividend |
519.306 |
342.634 |
285.528 |
|
|
|
|
Tax on Proposed Dividend |
49.284 |
38.820 |
0.000 |
|
|
|
|
Tax on Interim Dividend |
88.256 |
55.584 |
46.320 |
|
|
|
|
Transfer to General Reserve |
150.000 |
150.000 |
120.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
2916.138 |
2726.249 |
2408.411 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
|
|
|
||
|
|
-- Basic |
44.71 |
39.69 |
37.66 |
||
|
|
-- Diluted |
44.68 |
39.69 |
37.66 |
||
QUARTERLY RESULTS
(Rs.
In Millions)
|
Particulars |
|
|
30.06.2014 (Unaudited) |
|
|
|
|
1st
Quarter |
|
Net Sales |
|
|
426.800 |
|
Total Expenditure |
|
|
225.900 |
|
PBIDT (Excl OI) |
|
|
200.900 |
|
Other Income |
|
|
148.400 |
|
Operating Profit |
|
|
349.200 |
|
Interest |
|
|
0.000 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
349.200 |
|
Depreciation |
|
|
14.100 |
|
Profit Before Tax |
|
|
335.200 |
|
Tax |
|
|
69.300 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
265.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
48.53 |
49.84 |
52.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
78.18 |
80.44 |
83.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
47.45 |
45.28 |
46.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.37 |
0.38 |
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.66 |
3.97 |
5.79 |
FINANCIAL ANALYSIS
[all figures are in
Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
285.528 |
285.528 |
289.991 |
|
Reserves & Surplus |
3485.600 |
3953.438 |
4553.150 |
|
Net
worth |
3771.128 |
4238.966 |
4843.141 |
|
|
|
|
|
|
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 |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
1,780.750 |
1,987.658 |
2,294.646 |
|
|
|
11.619 |
15.445 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
1,780.750 |
1,987.658 |
2,294.646 |
|
Profit |
1,075.430 |
1,133.298 |
1,286.726 |
|
|
60.39% |
57.02% |
56.08% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
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 |
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 |
No |
FINANCIAL
PERFORMANCE
Total
income increased by 16.6% with income from operations increasing by 15.4%. This
may be attributed to an increase in both rating assignments from new companies
as well as from existing clients. Total expenditure increased by 26.9%, with an
increase in wage bill largely on account of an increase in staff count from 565
on March 31, 2013 to 594 on March 31, 2014. Profit before tax increased by
12.2% in FY14, and with provision for tax rising by 8.9%, profit after tax
increased by 13.5%.
BUSINESS
OPERATIONS
While
overall economic conditions have been and continue to be challenging, your
company was successful in both the widening of customer base and deepening of
relationship with existing clients. The company has now completed over 30,000
rating assignments since inception to reach 31,381 as of March 2014. The
cumulative amount of debt rated has increased to Rs.56.99 lakh crore as of
March 2014 from Rs. 48.51 lakh crore as of March 2013. As of March 2014, your
company had business relationships with 7,754 clients (5,263 in March 2013).
The relentless thrust on expanding the client base will set the foundation for
further leveraging in future.
As per
the statistics given above the total number of rating assignments completed
grew by about 5.7% in FY14 aggregating to 7,865 from 7,439 in FY13. Also, the
total volume of debt rated has witnessed an increase on account of bank
facility ratings segment by 15.5% while that of long term debt increased by
13.7%. Volume of short-term debt was lower by 6.8%.
In
terms of rating assignments completed, there was a decline in the number of short
term ratings and long term ratings while bank facility ratings increased by
0.7%. The miscellaneous category (including grading) witnessed robust increase
of more than 39.8%, which was mainly due to higher NSIC-MSME ratings.
MANAGEMENT
DISCUSSION & ANALYSIS
BACKGROUND
The
hope for revival of the Indian economy failed to materialize in FY14. The
economy continued to be challenged by the twin problems of low growth and high
inflation. The domestic economy had witnessed a drastic drop in GDP growth from
an average 8.2% during FY04-FY12 to sub 5% in FY13 and FY14. India’s economy in
the last 2 years has been marked by declining industrial output, significant
drop in investment, deterioration in asset quality, high current account
deficit, and depreciation in exchange rate and persistent high inflation that
prompted the pursuance of a high interest rate regime by the monetary
authority.
While
in terms of overall growth, FY14 has seen marginal improvements with GDP growth
estimates for the year being pegged at 4.7%, 0.2% higher than that in FY13, it
fell short of earlier estimates of 4.9% growth. In terms of sectoral growth,
the Indian economy was sustained by agriculture and the services sector in
FY14. The agriculture sector, aided by favorable monsoons, clocked noteworthy
growth of 4.7%, while the service sector despite registering a deceleration
from an average 9.7% in FY05-12 to 6.8% in FY14, continues to be the single
most significant contributor to the country’s economy.
The
industrial sector has been highly subdued since FY13 with growth hovering
around zero. FY14 witnessed a further deterioration in the sector with growth
coming in at 0.4%, lower than the 1.0% growth of FY13. The growth contraction
in the mining and manufacturing sub-segments, depressed investments and a slump
in consumer demand have resulted in low industrial growth.
Also,
high inflation negatively impacted consumption demand and investments have
declined on account of high interest rates and prevalence of spare capacity.
Low growth
and investment set the tone for subdued activity in both the credit and debt
markets in FY14. Growth in credit to industry had slowed down while it was
higher in case of agriculture and the retail segment. In particular, companies
in the large industry segment preferred to source the ECB market for funds and
higher growth was witnessed in the SME space. Further, with infra projects
being held back on account of high interest rates, fresh debt issuances had
also been subdued during the year. CARE’s performance needs to be juxtaposed
against this background.
NEW
PRODUCT LAUNCH
CARE
Rated India’s First Securitization Transaction backed by Mortgage Guarantee.
The agency rated an innovative MBS transaction backed by housing loans
originated by Dewan Housing Finance Ltd and carrying the mortgage guarantee
from India Mortgage Guarantee Corporation Private Limited (IMGC). This has been
a major highlight this year as it also shows the way for such transactions in
future when backed by a credit rating.
CARE
also assigned a rating to the IFMR Impact Investment Fund managed by IFMR
Investment Managers Private Limited This is the first ever AIF rating assigned
in India.
BUSINESS
PROSPECTS FOR FY15
CARE’s
business prospects would be dependent on the macroeconomic developments.
Gradual recovery in the economy is expected in the ongoing fiscal. The
government clearing pending projects would provide boost to the investment
climate leading to pick up in debt issuances. Higher growth in bank credit
would provide support for bank loan rating.
The
company would attempt to widen its client base and also increase its share in
the business standard top 1000 companies list and ET top 500 companies list.
Emphasis on SME sector would continue in the current fiscal as well. Therefore,
one can sense opportunity both within the existing rating universe as well as
expansion of these boundaries.
UNAUDITED FINANCIAL RESULTS FOR QUARTER ENDED 30.06.2014
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
|
|
30.06.2014 |
|
1.
Income from operations |
|
|
a) Net sales/ Income from operation (net of excise duty) |
426.760 |
|
b) Other operating income |
0.000 |
|
Total
income from Operations(net) |
426.760 |
|
2.Expenditure |
|
|
a) Employees benefit expenses |
165.573 |
|
b) Depreciation and amortization expenses |
14.057 |
|
c) Other expenditure |
60.337 |
|
Total expenses |
239.967 |
|
3. Profit from operations before other income and
financial costs |
186.793 |
|
4. Other income |
148.379 |
|
5. Profit from ordinary activities before tax
Expense: |
335.172 |
|
6.Tax expenses |
69.328 |
|
7.Net Profit / (Loss) for the period (11 -12) |
265.844 |
|
8.Paid-up equity share capital (Nominal value Rs.10/- per share) |
289.991 |
|
9. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
-- |
|
10.Earnings per share (before extraordinary items)
of Rs.10/- each) (not annualised): |
|
|
-- Basic |
9.17 |
|
-- Diluted |
9.13 |
|
|
|
|
A. Particulars of shareholding |
|
|
1. Public Shareholding |
|
|
- Number of shares |
28999122 |
|
- Percentage of shareholding |
100.00% |
|
2. Promoters and Promoters group Shareholding- |
|
|
a) Pledged /Encumbered |
|
|
Number of shares |
-- |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
-- |
|
Percentage of shares (as a % of total share capital of the
company) |
-- |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
-- |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
-- |
|
Percentage of shares (as a % of total share capital of the
company) |
-- |
|
|
|
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
-- |
|
Receiving during the quarter |
4 |
|
Disposed of during the quarter |
4 |
|
Remaining unreserved at the end of the quarter |
-- |
NOTE:
1.
The above results have been reviewed by
the Audit Committee of the Board and approved by the Board of Directors of the
Company at its meeting held on July 31, 2014.
2.
The Board of Directors of the Company
have declared an interim dividend of Rs.6 per share having a nominal value of
Rs. 10 each.
3.
During the quarter, the Company has
revised depreciation rate on certain assets as per the useful life specified in
the Schedule II of the Companies Act, 2013. Consequently depreciation expense
for the quarter is higher by Rs. 8.407 Millions. Similarly, in case of assets
whose life has been completed as on March 31, 2014, the carrying value (net of
tax) of those assets amounting to Rs.7.072 Millions has been debited to General
Reserve.
4.
The Company primarily operates in
single business and geographical segment, hence, no additional disclosures
required to be given as per AS 17-Segmental Reporting other than those already
given in the financial results.
5.
The Company has granted 5,00,000
options on January 01,2014, to the eligible employees as the Company's Employees
Stock Option Scheme (ESOS) 2013. As per SEBI (Employee Stock Option Scheme and
Employees Stock Purchase Scheme) Guidelines 1999, total cost of ESOS 2013 will
be charged on straight line basis over vesting period, accordingly Rs. 14.287
Millions has been charged to Statement of Profit and Loss during the quarter
ended June 30, 2014 (quarter ended March 31, 2014 Rs.14.287 Millions and
quarter ended June 30, 2013 Rs. NIL).
6.
During the quarter, consequent to the
exercise of call option, the Company has acquired 1,992,960 equity shares
representing 24.87% of the paid up equity share capital of its subsidiary CARE
Kalypto Risk Technologies and Advisory Services Private Limited, thus making it
a wholly owned subsidiary.
7.
Previous period’s / year's figures have
been regrouped / rearranged wherever necessary to conform to the figures of the
current period.
NO CHARGES EXIST
FOR COMPANY.
FIXED ASSETS:
·
Furniture and Fixtures
·
Office Equipments
·
Computers
·
Vehicles
·
Electrical Installations
·
Buildings
·
Computer Software
PRESS RELEASE:
Q4 & FY14
Results
·
FY14 Total Income
increases by 16.6%
·
FY14 EBITDA
increases by 12.2%; Net profit enhanced by 13.5%
·
EBITDA Margin of
68.8% and PAT margin 48.5%
·
Final Dividend of
Rs. 10/- per share proposed
·
Cumulative Debt
rated in FY14 at Rs. 57 lakh crore
Mumbai (India), May 20, 2014: Credit Analysis
and Research Limited, the second largest full service rating Company in India
in terms of rating income in FY13, announced its results for the quarter and
full year ended 31 March 2014.
Financial Highlights
FY14 performance overview (Compared
with FY13)
·
Total income grew by 16.6% to Rs
26510.000 Millions compared with Rs 22740.000 Millions
·
EBITDA better by 12.2% Rs 18230.000
Millions compared with Rs 16250.000 Millions
·
Net profit enhanced by 13.5% to Rs
12860.000 Millions compared with Rs 11330.000 Millions
·
EPS diluted improved by 12.6% at Rs
4470.000 compared with Rs 3970.000
Q4 FY14 performance overview
(Compared with Q4 FY13)
·
Total income grew by 17% to Rs 8360.000
Millions compared with Rs 7140.000 Millions
·
EBITDA better by 14%; Rs 5910.000
Millions compared with Rs 5190.000 Millions
·
Net profit enhanced by 16% to Rs
4130.000 Millions compared with Rs 3560.000 Millions
·
EPS diluted improved by 14% at Rs
1420.000 compared with Rs 1250.000
Performance Review
·
In FY14, rating income improved by 15 %. The growth
was driven by expansion in the total number of assignments rated from 7,439 to
7,865. Higher rating income was due to a combination of fresh rating
assignments as well as ongoing surveillance assignments. In Q4, growth in
rating income was 19.7%.
·
‘Other income’ includes income from investments in
instruments such as FMPs, tax free bonds etc. increased from Rs 2860.000
Millions in FY13 to Rs 3570.000 Millions in FY14.
·
Profit margins as defined by EBITDA and PAT were at
68.8% (71.5%) and 48.5% (49.8%) respectively in FY14. For Q4, they were 70.8%
and 49.4% respectively.
CARE's performance
was steady despite low macroeconomic conditions and capital market activity.
Low GDP growth of 4.9% and negative industrial growth were accompanied by a
decline in the investment rate which dampened activity in the debt market.
Commenting on the
performance of Q4 & FY14, D.R. Dogra, Managing Director & CEO Credit
Analysis and Research Limited said,
“CARE Ratings has
done well under challenging conditions in terms of topline and bottom line
growth. This has been a result of fairly aggressive widening of our client base
and deepening of business relations with companies. This is manifested in the
sharp increase in the number of our active clients from 5,263 in FY13 to 7,754
in FY14 while the volume of debt rated increased from Rs 7.8 lkh crore to Rs
8.9 lkh crore during this period.
We have also
created the requisite infrastructure in terms of client-contact points in
various locations in the country and scaled up our operations in our CARE
Knowledge Centre to prepare ourselves well for the future when conditions
improve.
Besides making significant
forays into the SME segment in India, we have furthered our global plans, with
ARC Ratings being launched in January. This along with our plans to start
operations in Mauritius will help in diversification”.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.60.84 |
|
UK Pound |
1 |
Rs.98.73 |
|
Euro |
1 |
Rs.78.64 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
|
72 |
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.