MIRA INFORM REPORT
|
Report No. : |
336285 |
|
Report Date : |
13.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
ELECTRONICA FINANCE LIMITED (w.e.f. 29.01.1993) |
|
|
|
|
Formerly Known
As : |
ELECTRONICA LEASING AND FINANCE LIMITED |
|
|
|
|
Registered Office
: |
128/A, Plot No.3, Kailaschandra Apartments, |
|
Tel. No.: |
91-20-25459716/17/18/19 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
26.06.1990 |
|
|
|
|
Com. Reg. No.: |
11-057017 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.221.107 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65910PN1990PLC057017 |
|
|
|
|
IEC No.: |
3193003743 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
PNEE00293G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACE4577B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Providing finance and machinery loan to micro, small and medium
enterprises in India |
|
|
|
|
No. of Employees
: |
400 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
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|
|
Comments : |
Subject is an established company having satisfactory track record. Company has taken huge borrowing which acts as threatening to balance
sheet profile of the company. However, rating takes into consideration company’s sound operational
risk profile marked by above average operating efficiencies and fair
profitability margins of the company. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. In view of sound financial profile, the company can be considered for
business dealings at usual trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
PTC Series A1 (Withdrawn) A+ (SO) |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Reason for Withdrawn |
All the payouts to the investor in the above mentioned PTCs have been
made and no further payment is due to the investor. |
|
Date |
April, 2015 |
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
31-03-2013.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Tushar |
|
Designation : |
Marketing Executive |
|
Contact No.: |
91- 8007011556 |
|
Date : |
10.08.2015 |
LOCATIONS
|
Registered/ Head Office/ Corporate Office : |
128/A, Plot No.3, Kailaschandra Apartments, Paud Road, Pune – 411038,
Maharashtra, India |
|
Tel. No.: |
91-20-25459716/ 17/ 18/ 19 |
|
Mobile No. : |
91-8007011556 (Mr. Tushar) |
|
Fax No.: |
91-20-25459716 |
|
E-Mail : |
a.deshpande@electronicafinance.com finance@electronicafinance.com |
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Branch Office : |
Located at:
|
DIRECTORS
As on 28.07.2014
|
Name : |
Mr. Thallapaka Venkateswara Rao |
|
Designation : |
Director |
|
Address : |
Flat no 803, Silverlake Terrace apartments No. 167, Richmond Road, Bangalore
– 560025, Karnataka, India |
|
Date of Birth/Age : |
01.07.1952 |
|
Date of Appointment : |
19.08.2013 |
|
DIN No. : |
05273533 |
|
|
|
|
Name : |
Mr. Rahul Ramkumar Rathi |
|
Designation : |
Director |
|
Address : |
796/189-B, Construction House, |
|
Date of Birth/Age : |
14.12.1972 |
|
Date of Appointment : |
16.11.2012 |
|
DIN No. : |
00966359 |
|
|
|
|
Name : |
Ms. Priya Adwait Dharmadhikari |
|
Designation : |
Director |
|
Address : |
Balkrishna Heritage, CTS No. 863, Final Plot no. 207, Bhandarkar Road,
Shivajinager, Pune – 411005, Maharashtra, India |
|
Date of Birth/Age : |
07.02.1973 |
|
Qualification : |
M. D. (Aayureved) |
|
Date of Appointment : |
25.07.2009 |
|
DIN No. : |
02629790 |
|
|
|
|
Name : |
Mr. Shilpa Shrikant Pophale |
|
Designation : |
Director |
|
Address : |
Plot No.52, CTS No.101/1, Erandawane, Pune – 411004,
Maharashtra, India |
|
Date of Birth/Age : |
09.03.1971 |
|
Date of Appointment : |
01.06.2006 |
|
DIN No. : |
00182457 |
|
|
|
|
Name : |
Mr. Venkatesh Ssrinivasan Srinivasan |
|
Designation : |
Director |
|
Address : |
21, Purushottam Nagar, S. V. road, Bandra (West), Mumbai – 400050,
Maharashtra, India |
|
Date of Birth/Age : |
08.11.1971 |
|
Date of Appointment : |
24.07.2010 |
|
DIN No.: |
02110770 |
|
|
|
|
Name : |
Mr. Shriram Narayan Gogate |
|
Designation : |
Director |
|
Address : |
2153, Sadashiv Peth, shri Mangesh Society S. P. college, Swarget, Pune
– 411030, India |
|
Date of Birth/Age : |
27.03.1942 |
|
Date of Appointment : |
24.08.2012 |
|
DIN No. : |
00057966 |
|
|
|
|
Name : |
Mr. Shrikant R. Pophale |
|
Designation : |
Director |
|
Address : |
S No.101, Erandawana, Pune – 411004, Maharashtra, India |
|
Date of Birth/Age : |
22.01.1942 |
|
Date of Appointment : |
24.08.2012 |
|
DIN No. : |
00393859 |
|
|
|
|
Name : |
Mr. Abhijeet Sharad Ranade |
|
Designation : |
Director |
|
Address : |
SR No. 207, FL-E-301, Landmark Garden Kalyani NG, Pune – 411006, Maharashtra,
India |
|
Date of Birth/Age : |
26.02.1972 |
|
Date of Appointment : |
28.07.2014 |
|
DIN No.: |
06639150 |
KEY EXECUTIVES
|
Name : |
Mr. Tushar |
|
Designation : |
Marketing Executive |
|
|
|
|
Name : |
Mr. Prajakta Anoop Deshpande |
|
Designation : |
Secretary |
|
Address : |
A-1/1, Vijaya-Rashmi Residency,, Near Ganapati Matha, Warje Malwadi, Pune, 411058, Maharashtra, India |
|
Date of Appointment : |
13/04/2013 |
|
PAN No.: |
ASYPP1293N |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 28.07.2014
SHAREHOLDING DETAILS FILE ATTACHED
Equity Share Break up (Percentage of Total Equity)
As on 28.07.2014
|
Category |
Percentage |
|
Bodies corporate |
92.12 |
|
Directors or relatives of Directors |
6.03 |
|
Other top fifty shareholders |
1.85 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing finance and machinery loan to micro, small and medium
enterprises in India |
|
|
|
|
Products : |
Not Divulged |
|
|
|
|
Brand Names : |
Not Divulged |
|
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|
|
Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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|
|
|
Terms : |
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|
Selling : |
Cheque |
|
|
|
|
Purchasing : |
Cheque |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
Manufacturer
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No. of Employees : |
400 (Approximately) |
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Bankers : |
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Facilities : |
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Auditors : |
|
|
Name : |
M. P. Chitale and Company Chartered Accountant |
|
Address : |
417/1, Narayan Peth, Pune – 411030, Maharashtra, India |
|
Tel. No.: |
91-20-24450156 |
|
Fax No.: |
91- 22- 2445 0667 |
|
E-Mail : |
|
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AAAFM2282Q |
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Memberships : |
Not Available |
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|
|
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Collaborators : |
Not Available |
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|
|
|
Significant
Influence as Directors and their relatives have substantial interest |
|
CAPITAL STRUCTURE
As on 28.07.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
22110700 |
Equity Shares |
Rs.10/- each |
Rs.221.107
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Million]
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 |
221.107 |
221.107 |
221.107 |
|
(b) Reserves & Surplus |
516.970 |
391.863 |
281.965 |
|
(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) |
738.077 |
612.970 |
503.072 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2817.894 |
2818.523 |
794.583 |
|
(b) Deferred tax liabilities
(Net) |
7.877 |
8.441 |
1.873 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
1412.796 |
|
(d) long-term provisions |
159.416 |
126.956 |
89.974 |
|
Total
Non-current Liabilities (3) |
2985.187 |
2953.920 |
2299.226 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
133.479 |
79.286 |
138.269 |
|
(b) Trade payables |
1.832 |
0.335 |
215.597 |
|
(c) Other current liabilities |
1866.514 |
1629.887 |
817.077 |
|
(d) Short-term provisions |
50.278 |
33.896 |
23.042 |
|
Total
Current Liabilities (4) |
2052.103 |
1743.404 |
1193.985 |
|
|
|
|
|
|
TOTAL |
5775.367 |
5310.294 |
3996.283 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
210.183 |
172.734 |
157.920 |
|
(ii) Intangible Assets |
15.296 |
4.727 |
11.058 |
|
(iii) Capital work-in-progress |
0.000 |
4.668 |
0.000 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.187 |
0.286 |
0.284 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
3142.689 |
2395.625 |
2027.772 |
|
(e) Other Non-current assets |
68.405 |
134.619 |
0.702 |
|
Total
Non-Current Assets |
3436.760 |
2712.659 |
2197.736 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
86.193 |
111.327 |
1146.377 |
|
(d) Cash and cash equivalents |
608.741 |
642.574 |
586.259 |
|
(e) Short-term loans and
advances |
1430.693 |
1650.994 |
61.880 |
|
(f) Other current assets |
212.980 |
192.740 |
4.031 |
|
Total
Current Assets |
2338.607 |
2597.635 |
1798.547 |
|
|
|
|
|
|
TOTAL |
5775.367 |
5310.294 |
3996.283 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Revenue from Operations |
866.952 |
723.119 |
539.668 |
|
|
Other Income |
32.210 |
12.961 |
18.986 |
|
|
TOTAL
(A) |
899.162 |
736.080 |
558.654 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Employees benefits expense |
146.362 |
102.567 |
77.531 |
|
|
Extra Ordinary Items |
0.000 |
0.000 |
-0.044 |
|
|
Administrative and Other
expenses |
116.020 |
90.860 |
76.710 |
|
|
TOTAL
(B) |
262.382 |
193.427 |
154.197 |
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
636.780 |
542.653 |
404.457 |
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
437.691 |
358.446 |
264.341 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
199.089 |
184.207 |
140.116 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
9.948 |
7.182 |
5.236 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
189.141 |
177.025 |
134.880 |
|
|
|
|
|
|
|
Less |
TAX (H) |
62.533 |
64.090 |
46.554 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER
TAX (G-H) (I) |
126.608 |
112.935 |
88.326 |
|
|
|
|
|
|
|
Add |
SURPLUS
AT THE BEGINNING OF THE ACCOUNTING PERIOD (K) |
170.454 |
80.106 |
186.332 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to Statutory Reserve |
25.341 |
22.587 |
17.665 |
|
|
Bonus Shares Issued |
0.000 |
0.000 |
176.887 |
|
|
Total
(M) |
25.341 |
22.587 |
194.552 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S (J+K+L-M) |
271.721 |
170.454 |
80.106 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
5.73 |
5.11 |
19.55 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current Maturities of Long term debt |
1423.452 |
1109.523 |
664.052 |
|
Cash generated from operations |
(2.462) |
1.940 |
322.605 |
|
Net cash flow from operating activity |
(65.559) |
(55.582) |
277.474 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
14.60 |
15.62 |
16.37 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
73.45 |
75.04 |
74.95 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.28 |
3.34 |
3.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26 |
0.29 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
5.93 |
6.54 |
3.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.14 |
1.49 |
1.51 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
221.107 |
221.107 |
221.107 |
|
Reserves & Surplus |
281.965 |
391.863 |
516.970 |
|
Net worth |
503.072 |
612.970 |
738.077 |
|
|
|
|
|
|
long-term borrowings |
794.583 |
2818.523 |
2817.894 |
|
Short term borrowings |
138.269 |
79.286 |
133.479 |
|
Current Maturities of Long-Term Debts |
664.052 |
1109.523 |
1423.452 |
|
Total borrowings |
1596.904 |
4007.332 |
4374.825 |
|
Debt/Equity ratio |
3.174 |
6.538 |
5.927 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
539.668 |
723.119 |
866.952 |
|
|
|
33.993 |
19.891 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
539.668 |
723.119 |
866.952 |
|
Profit |
88.326 |
112.935 |
126.608 |
|
|
16.37% |
15.62% |
14.60% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
LITIGATION
DETAILS:
|
Case Details |
|
|
Case Type |
Cri.Rev.App. |
|
Filing No. |
101746/2011
Filing date: 11.04.2011 |
|
Registration No. |
100221/2011
Registration date: 21.04.2011 |
|
Case code |
201801017462011 |
|
|
|
|
CASE STATUS |
|
|
First Hearing Date |
21.04.2011 |
|
Next Hearing Date |
08.09.2015 |
|
Purpose of Hearing |
|
|
Court No & Judge |
65 - DISTRICT JUDGE -10 AND
ADDL. SESSIONS JUDGE PUNE |
|
|
|
|
Petitioner(s) & Advocate(s) |
|
|
Petitioner – G S Precision
Industries etc 2 Advocate – Adv S R Shetty Extra Parties 2) Petitioner – Krishna Veni Address: Shukrawar Peth, Pune Advocate – S R Shetty |
|
|
Respondent(s) & Advocate(s) |
|
|
Respondent - Electronica
Finance Limited |
|
|
ACTS |
|
|
Under Act(s) |
-- |
|
Under Section(s) |
-- |
|
Subject |
|
|
|
|
|
LOWER COURT INFORMATION |
|
|
Court No & Name |
Jt.Civil Judge J.D. J.M.F.C.
Pune |
|
Case No & Year |
Sum Case – 0001822 - 2008 |
|
Case Decision Date |
14.02.2011 |
OPERATIONS
The year was challenging for the manufacturing sector overall and especially for the machine tools industry which constitutes close to 45% of the overall portfolio. While the disbursements of the company were Rs. 3380.000 Million in 2013-14 vis-à-vis 3510.000 Million in the previous year, the assets under management of the company crossed 6500.000 Million this year.
During the year, the company launched several new initiatives which include
• Appointment of new business head
• Setting up of new departments like Strategic Planning and IT and Process Excellence
• Implementation of new ERP system
• Expansion to 6 new locations
• Launch of textile and pharma verticals
• Launch of Industrial Property Loan product
Although the income grew by 22% from 736.000 Million in FY13 to 899.200 Million in FY14, the profits after tax have grown by 12% due to increase in costs on account of the above initiatives. With the launch of these initiatives, the company has successfully set up a foundation for the next level of growth. They should be able to achieve scale benefits in the coming years which will significantly improve our margins.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Global Economic
Overview
It was a year of recovery for the global economy post the recessionary crisis faced in 2012-13. Fiscal cliff was averted in the US. The Euro Zone averted a break-up which brought in more stability in the Zone. However, the possible impact of quantitative easing on the US and the World Economy at large remains to be seen.
India Economic
Overview
Good monsoons compensated for the overall policy paralysis in India in the first half of FY14. However, inflation remained high and industrial growth remained poor with some key sectors de-growing. The announcement of possible removal of quantitative easing measures had a large negative impact on exchange rates. However, some hard policy measures by RBI and some policy enactments by the government brought them under control and improved the GDP and inflation numbers for the latter half of the year.
Sector Overview
Automobile Sector: The general economic slowdown, rising interest rates and fuel prices put a lot of pressure on the Auto sector which led to decline in sales across major sub-segments. Since, a large part of the machine tool and plastics industry is dependent on automobile sector, the verticals could not perform to their full potential.
Printing Sector: Import of offset printing machines reduced during 2013-14 due to the adverse change in exchange rates, thus hitting the performance of the vertical.
Regulatory Overview
The enactment of the Companies Act, 2013 is an important regulatory change undertaken by the Government. However, clarity needs to be provided on the enactment of several Companies Act sections to ensure smooth implementation.
Company Overview
Business Overview
Electronica Finance Limited (‘EFL’ or ‘Electronica Finance’ or ‘the Company’) continues to have a strong focus on the MSME segment. Having started with an initial focus on the Machine Tools industry due to parental linkages, it has now expanded its product portfolio and vertical presence.
Product Portfolio: In addition to existing portfolio of Term loans, Hire Purchase loans and SIDBI loans, Industrial Property Loans was a new product added to the EFL fold considering the requirement of MSMEs for buying own properties.
Vertical Presence: In addition to the existing verticals viz. Machine Tools, Plastics, Printing, Woodworking and Generators and Compressors, new verticals viz. Textile, Pharmaceutical and Medical Equipment were added considering the requirements of MSMEs in those sectors for EFL products.
Focus on Expansion and at the Same Time, Operational Effectiveness
i) Increased the number of active customer base to over 2,200 with more than 3,500 live agreements as on date.
ii) Increased its branch presence from 30 in 2012-13 to 36 in 2013-14, expanded its geographical presence to all four zones across 14 states and 4 union territories.
iii) Growth in assets under management from 571 crore in 2012-13 to 654 crore in 2013-14.
iv)Set up IT and Process Excellence, Strategic Planning and Product Teams to enhance operational improvements, product research and manufacturer relationships.
v) Implemented organization wide information systems covering logins to disbursements as well as support functions, expected to be completed in June 2014.
Outlook
Economy:
Notwithstanding the adversities faced by the economy in the
current year, growth prospects for 2013-14 continue to remain strong. The GDP growth rate is expected to be
around 5.5% in 2014-15. However, with a clear poll verdict, the growth rate is
expected to touch 6% levels.
Industries:
Automobile:
The Auto sector is expected to revive due to possible fall in interest rates and stability in fuel prices. With two years of continuous slowdown, this comes as a welcome change for the sector.
Printing:
Printing industry in India is currently around USD 12 billion and is expected to grow at 12% per annum for the next 3 years with stable exchange rates
Power-backup Market:
There is an estimated 18% demand-supply gap in power generation. Thus the power back up market which includes the generators and compressors is expected to grow at a rate of 15 to 18% annually.
Company:
The Company is extremely positive on the growth prospects for the current year and is expected to further expand its reach across verticals, products and geographies which will help improve the top line. Further, the Company is also looking at improving operational effectiveness through additional six sigma projects which will result in improvements in the bottom line. It also plans to look at portfolio risk and analyze them in greater detail to provide meaningful inputs to the credit, recovery and sales team. With a focus on “Customer First”, the Company expects to build an organization that not only continues to prioritize customer requirements in terms of loans but also delivers new innovative products and services that result in all-round growth of MSME entrepreneurs.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2014 (Rs.
in Million) |
31.03.2013 (Rs.
in Million) |
|
Long-term
Borrowings |
|
|
|
Security Deposit from Customers |
1904.360 |
1861.771 |
|
(Against Loans Hire Purchase Transactions) |
|
|
|
Subordinated Debt From Banks |
70.953 |
100.477 |
|
Subordinated Debt From Others |
19.625 |
0.000 |
|
|
|
|
|
Total |
1994.938 |
1962.248 |
|
Note: Unsecured
Subordinated Debt From Banks “1. 100.000 Million granted by Syndicate Bank to form a part of Tier II capital, repayable in 10 equated half yearly installments (EHI) with balance maturity of 6 EHIs. The debt is Guaranteed by the Managing Director. “2. 50.000 Million granted by IDBI Bank to form a part of Tier II capital, repayable in 21 equated quarterly installments with balance maturity of 17 equated quarterly installments." From Others Subordinated Bond issued are repayable after 63 months and carry interest ranging between 7 to 10% p.a. with balance maturity of 62 to 63 months. Security Deposit
from Customers Security Deposits from the borrowers are a normal part of business operations and their adjustment / refund is generally scheduled to coincide with the respective Term Loan / Hire Purchase agreements. This includes security deposits of Rs. 762.126 Million from customers held in trust for the assignees / trustees of the assigned / securitized assets. |
||
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10584309 |
08/08/2015 |
100,000,000.00 |
Indian Bank |
Deccan Gymkhana Branch, 759/62, Prabhat Road, Dec |
C60925955 |
|
2 |
10558948 |
27/03/2015 |
40,000,000.00 |
DCB Bank Limited |
J. M ROAD BRANCH; ROHIT BUILDING; GR FLOOR, DECCA |
C49009962 |
|
3 |
10561206 |
26/03/2015 |
180,000,000.00 |
Syndicate Bank |
MID Corporate Branch, Navipeth, 3rd Floor, Bharati Vidyapeeth Bhavan,
LBS Road,, Pune, Maharashtra |
C49968357 |
|
4 |
10556109 |
17/03/2015 |
150,000,000.00 |
Maharashtra Gramin Bank |
Wagholi Branch, Krishna Complex, Pune Nagar Road |
C47286687 |
|
5 |
10548072 |
02/02/2015 * |
150,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, PUNE, TARA CHAMBERS,, |
C44659241 |
|
6 |
10539924 |
29/12/2014 |
70,000,000.00 |
TATA CAPITAL FINANCIAL SERVICES LIMITED |
One Forbes,, Dr. V. B. Gandhi Marg, Fort, Mumbai, |
C38815957 |
|
7 |
10537338 |
19/12/2014 |
150,000,000.00 |
Indian Bank |
Deccan Gymkhana Branch, 759/62, Prabhat Road, Dec |
C37364874 |
|
8 |
10525994 |
01/10/2014 |
70,000,000.00 |
DCB Bank Limited |
J. M ROAD BRANCH; ROHIT BUILDING; GR FLOOR, DECCA |
C29740792 |
|
9 |
10546035 |
19/09/2014 |
100,000,000.00 |
Vijaya Bank |
VIJAYA BANK CORPORATE BANKING BRANCH,, SHIVAJI NA |
C41925926 |
|
10 |
10522487 |
05/09/2014 |
150,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W |
C23019250 |
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
A)
Guarantee |
|
|
|
Bank Guarantee |
1.240 |
1.240 |
|
Corporate Guarantee for loan availed by
associates |
100.000 |
140.100 |
|
Corporate Guarantee to assignees of Pool
Receivables |
34.120 |
34.120 |
|
B)
Other money for which the company is Contingently
liable |
|
|
|
Letters of Credit |
13.174 |
11.212 |
|
Demand Ralsed by services Tax Department |
1.549 |
3.424 |
FIXED ASSETS
- Building
- Plant and
Machinery
- Computer
- Office
Equipment
- Furniture and
Fixture
- Vehicles
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.64.17 |
|
|
1 |
Rs.99.84 |
|
Euro |
1 |
Rs.70.35 |
INFORMATION DETAILS
|
Information
Gathered by : |
SPR |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SUJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
42 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.