MIRA INFORM REPORT
|
Report No. : |
330392 |
|
Report Date : |
07.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
AXIS
SECURITIES LIMITED (w.e.f. 07.12.2012) |
|
|
|
|
Formerly Known
As : |
AXIS
SECURITIES PRIVATE LIMITED (w.e.f. 23.10.2012) ENAM
SECURITIES DIRECT PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Axis House, 8th Floor, Wadia
International Centre, Pandurang Budhkar Marg, Worli, Mumbai – 400 025,
Maharashtra |
|
Tel. No.: |
91-22-24252525 |
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|
|
|
Country : |
India |
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|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
21.07.2006 |
|
|
|
|
Com. Reg. No.: |
11-163204 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1445.000
million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74992MH2006PLC163204 |
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|
|
|
IEC No.: |
Not Available |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
|
|
PAN No.: [Permanent Account No.] |
AABCE6263F |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
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|
Line of Business
: |
Business of the subject is divided into two
segments: Marketing of financial products and resources management (sales)
and retail broking (online and offline mode). i. Resources management and marketing of
financial products: Division is involved in the business of marketing of
third party retail asset products including providing resource management
services. ii. Retail broking: The division is involved in
providing retail broking services, distribution of IPO, mutual funds and
portfolio management products. |
|
|
|
|
No. of Employees
: |
16000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
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|
|
|
Litigation : |
Clear |
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Comments : |
Subject an established company incorporated during 2006 having a
satisfactory track record. The company has progressed well during FY 2014. It has achieved a fair
profitability and has been successful in wiping off its accumulated losses of
the previous year. Further, the rating also takes into consideration debt free balance
sheet of the company. Trade relations are reported as fair. Business is active. Payment
terms are reported to be usually correct In view of acceptable financial base, the company can be considered
normal 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 |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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
|
Name : |
Mr. Ashwin Sharma |
|
Designation : |
Manager |
|
Contact No.: |
91-22-42671525 |
|
Date : |
04.07.2015 |
LOCATIONS
|
Registered Office : |
Axis House, 8th Floor, Wadia International
Centre, Pandurang Budhkar Marg, Worli, Mumbai – 400 025, Maharashtra, India |
|
Tel. No.: |
91-22-24252525/ 24252021/ 42671525/ 24252017 |
|
Fax No.: |
91-22-42671519 |
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E-Mail : |
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|
Website : |
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Corporate Office : |
Unit No.2, Phoenix Market City, 15, L.B.S. Road, Near
Kamani Junction |
|
Tel. No.: |
91-22-42671500 |
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|
|
|
Branch Office : |
Located at: ·
Ahmedabad ·
Aurangabad ·
Bangalore ·
Bhopal ·
Bhubaneshwar ·
Calicut ·
Chandigarh ·
Chennai ·
Coimbatore ·
Dehradun ·
Ghaziabad ·
Goa ·
Gurgaon ·
Guwahati ·
Hubli ·
Hyderabad ·
Indore ·
Jaipur ·
Jalandhar ·
Jamshedpur ·
Jodhpur ·
Kochi ·
Kolhapur ·
Kolkata ·
Lucknow ·
Ludhiana ·
Madurai ·
Mangalore ·
Mehsana ·
Mumbai ·
Mysore ·
Nagpur ·
Nasik ·
New
Delhi ·
Noida ·
Patiala ·
Patna ·
Pune ·
Raipur ·
Rajkot ·
Ranchi ·
Siliguri ·
Surat ·
Tambaram ·
Thane ·
Thiruvananthapuram ·
Tilak
Nagar - Collection (Delhi) ·
Trichy ·
Udaipur ·
Vadodara ·
Vijayawada ·
Vizag |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr.
Jagdish Naresh Master |
|
Designation : |
Director |
|
Address : |
14,
Laxmi Nivas, Church Road, Vile Parle (West), Mumbai – 400 056, Maharashtra,
India |
|
Date of Birth/Age : |
21.07.1959 |
|
Date of Appointment : |
20.10.2012 |
|
DIN No.: |
00202500 |
|
|
|
|
Name : |
Mr.
Anand Kumar Shaha |
|
Designation : |
Whole-time
Director |
|
Address : |
B-602,
6th Floor, Diffodil Whispering Meadows, Model Town, Mulund (West),
Mumbai – 400 080, Maharashtra, India |
|
Date of Birth/Age : |
20.06.1966 |
|
Date of Appointment : |
10.02.2014 |
|
DIN No.: |
02421213 |
|
PAN No.: |
AOPPS4355D |
|
|
|
|
Name : |
Mr.
Rajiv Anand |
|
Designation : |
Director |
|
Address : |
D-1204/5/6,
Floor 12, Ashok Tower, 63-64, Dr. S.S. Rao Marg, Parel, Mumbai – 400 012,
Maharashtra, India |
|
Date of Appointment : |
17.07.2014 |
|
DIN No.: |
02541753 |
|
|
|
|
Name : |
Mr.
Arun Arjun Thukral |
|
Designation : |
Whole-time
Director |
|
Address : |
B-101,
Patliputra CHS, Four Bunglows, Andheri West, Azad Nagar, Mumbai – 400 053,
Maharashtra, India |
|
Date of Birth/Age : |
07.04.1963 |
|
Date of Appointment : |
20.10.2012 |
|
DIN No.: |
03043072 |
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PAN No.: |
AAAPT7492H |
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|
|
|
Name : |
Mr.
Ramesh Kumar Bammi |
|
Designation : |
Director |
|
Address : |
B-301,
Ashok Gardens, T.J. ROAD, Sewree, Mumbai – 400 015, Maharashtra, India |
|
Date of Birth/Age : |
18.07.1954 |
|
Date of Appointment : |
20.10.2012 |
|
DIN No.: |
03411046 |
|
|
|
|
Name : |
Nithya
Easwaran |
|
Designation : |
Director |
|
Address : |
A-405,
Floor No.4, Ashok Garden, T-1, 180/188, T.J. Road, Sewree, Mumbai – 400 015, Maharashtra,
India |
|
Date of Appointment : |
09.03.2015 |
|
DIN No.: |
03605392 |
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|
|
|
Name : |
Mr.
Jairam Ramamurthy Sridharan |
|
Designation : |
Director |
|
Address : |
Flat
No.1801, Ashok Tower-B, Dr. Babasaheb Ambedkar Marg, Parel, Mumbai – 400 012,
Maharashtra, India |
|
Date of Appointment : |
17.07.2014 |
|
DIN No.: |
05165390 |
KEY EXECUTIVES
|
Name : |
Shilpi Jaiswal |
|
Designation : |
Secretary |
|
Address : |
Bhoomi
Valley, Thakur Village, Kandivali (East), Mumbai – 400 025, Maharashtra,
India |
|
Date of Birth/Age : |
03.04.1985 |
|
Date of Appointment : |
16.05.2014 |
|
PAN No.: |
AVXPK2326B |
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|
|
|
Name : |
Mr. Hemantkumar Patel |
|
Designation : |
Chief Financial Officer |
|
Address : |
Plot
No.542/D-4, Hindu Friends CHS Limited, Sector-5, Charkop, Kandivali (West),
Mumbai – 400 067, Maharashtra, India |
|
Date of Appointment : |
03.02.2015 |
|
PAN No.: |
AGOPP9611N |
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|
|
|
Name : |
Mr. Ashwin Sharma |
|
Designation : |
Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 19.05.2014
|
Names of Shareholders |
|
No. of Shares |
|
Axis Bank Limited, India (Out of 144499940, 6
shares are held in Physical Form and remaining 144499934 shares are held in
demat form) |
|
144499940 |
|
Bammi Shanti Lal Ramesh [As nominee of Axis Bank Limited, India] |
|
10 |
|
Thukral Arjun Arun [As nominee of Axis Bank Limited, India] |
|
10 |
|
Saha Bijoy Modan [As nominee of Axis Bank Limited, India] |
|
10 |
|
Varadarajan Kuppusamy Srinivasan [As nominee of Axis Bank Limited, India] |
|
10 |
|
Sengupta Jurankumar Somnath [As nominee of Axis Bank Limited, India] |
|
10 |
|
Gupta Kumar Sanjeev [As nominee of Axis Bank Limited, India] |
|
10 |
|
Total |
|
144500000 |
AS ON 19.05.2014
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Nationalised or other banks |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Business of the subject is divided into two
segments: Marketing of financial products and resources management (sales) and
retail broking (online and offline mode). i. Resources management and marketing of
financial products: Division is involved in the business of marketing of
third party retail asset products including providing resource management
services. ii. Retail broking: The division is involved in
providing retail broking services, distribution of IPO, mutual funds and
portfolio management products. |
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Products/ Services : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
16000 (Approximately) |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S.R.B.C
and Co. LLP Chartered Accountants |
|
Address : |
14th Floor, The Ruby, 29 Senapati
Bapat Marg, Dadar (West), Mumbai – 400 028, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
ACHFS9117R |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Ultimate Holding Company: |
Axis
Bank Limited, India (w.e.f. 25th May, 2013) (CIN No.:
L65110GJ1993PLC020769) |
|
|
|
|
Holding Company: |
Axis
Capital Limited, India (upto 24th May 2013) (CIN No.:
U51900MH2005PLC157853) |
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Fellow Subsidiary Companies: |
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Joint Venture of
Holding Company: |
Bussan Auto Finance India
Private Limited, India (CIN No.: U67190DL2007FTC162475) |
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|
Enterprises which are owned, or have significant influence of or are
partners with Key management personnel and their relatives: |
|
CAPITAL STRUCTURE
AS ON 19.05.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
144500000 |
Equity Shares |
Rs.10/- each |
Rs.1445.000
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 |
1445.000 |
230.000 |
230.000 |
|
(b) Reserves & Surplus |
119.632 |
-2.305 |
21.705 |
|
(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) |
1564.632 |
227.695 |
251.705 |
|
|
|
|
|
|
(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 |
9.174 |
7.228 |
7.753 |
|
(d) Long-term provisions |
14.281 |
0.010 |
0.000 |
|
Total Non-current Liabilities (3) |
23.455 |
7.238 |
7.753 |
|
|
|
|
|
|
(4) Current
Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
840.373 |
211.277 |
117.046 |
|
(c) Other current liabilities |
547.455 |
13.254 |
16.669 |
|
(d) Short-term provisions |
82.984 |
8.345 |
3.461 |
|
Total Current Liabilities (4) |
1470.812 |
232.876 |
137.176 |
|
|
|
|
|
|
TOTAL |
3058.899 |
467.809 |
396.634 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current
assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
125.341 |
9.419 |
15.224 |
|
(ii) Intangible Assets |
45.956 |
0.086 |
0.746 |
|
(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 |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
7.512 |
0.000 |
0.000 |
|
(d)
Long-term Loan and Advances |
397.293 |
36.600 |
62.639 |
|
(e) Other Non-current assets |
72.885 |
95.674 |
0.000 |
|
Total Non-Current Assets |
648.987 |
141.779 |
78.609 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
773.730 |
20.763 |
23.076 |
|
(d) Cash and cash equivalents |
1484.175 |
283.402 |
273.379 |
|
(e) Short-term loans and advances |
26.816 |
8.351 |
13.028 |
|
(f) Other current assets |
125.191 |
13.514 |
8.542 |
|
Total Current Assets |
2409.912 |
326.030 |
318.025 |
|
|
|
|
|
|
TOTAL |
3058.899 |
467.809 |
396.634 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
3025.984 |
104.770 |
115.483 |
|
|
|
Other Income |
119.364 |
29.024 |
39.231 |
|
|
|
TOTAL |
3145.348 |
133.794 |
154.714 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
2497.894 |
86.415 |
114.222 |
|
|
|
Other expenses |
472.172 |
65.634 |
68.353 |
|
|
|
Prior period items |
14.219 |
0.000 |
0.000 |
|
|
|
TOTAL |
2984.285 |
152.049 |
182.575 |
|
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
161.063 |
(18.255) |
(27.861) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
0.482 |
0.370 |
1.465 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
160.581 |
(18.625) |
(29.326) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
49.058 |
5.400 |
6.056 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
111.523 |
(24.025) |
(35.382) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(10.027) |
(0.015) |
0.092 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
121.550 |
(24.010) |
(35.474) |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
0.85 |
(8.00) |
(11.82) |
|
Expected Sales (2015-2016): Rs.4000.000 million
The above information has been parted by Mr. Ashwin Sharma (Manager).
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current maturities of long-term debt |
0.000 |
0.000 |
0.000 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net
cash flows from (used in) operations |
849.641 |
15.528 |
(350.960) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
4.02 |
(22.92) |
(30.72) |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
5.32 |
(17.42) |
(24.13) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.65 |
(5.14) |
(8.92) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07 |
(0.11) |
(0.14) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.64 |
1.40 |
2.32 |
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 |
230.000 |
230.000 |
1445.000 |
|
Reserves & Surplus |
21.705 |
-2.305 |
119.632 |
|
Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
251.705 |
227.695 |
1564.632 |
|
|
|
|
|
|
Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Current maturities of long-term
debts |
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 Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Revenue from operations |
115.483 |
104.770 |
3025.984 |
|
|
|
(9.277) |
2788.216 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Revenue from operations |
115.483 |
104.770 |
3025.984 |
|
Profit |
(35.474) |
(24.010) |
121.550 |
|
|
(30.72%) |
(22.92%) |
4.02% |
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 |
Yes |
|
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 |
Yes |
|
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 |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
NOTE:
The registered office of the company has been shifted from Axis House, Ground Floor, Wadia International Centre, Worli, Mumbai – 400 025, Maharashtra to the present address w.e.f. 23.01.2013.
NATURE OF OPERATIONS
AND BACKGROUND:
The Company domiciled in India and incorporated under the provision of
Companies Act, 1956. The Company is in the business of providing resource
management and marketing of third party financial products and business of
retail broking online and offline mode.
The Company's holding company up to 19 October 2012 - Enam Securities
Private Limited ('ESPL') in their Board of Directors meeting held on 17
November 2010 approved and entered into an arrangement, with amendments
thereafter, with Axis Bank and Axis Securities and Sales Limited ('ASSL' now
renamed as Axis Capital Limited ('ACL')) inter-alia to de-merge its investment
banking, institutional equities and related business such as distribution of
financial products, loan against shares among others conducted by ESPL directly
and through its wholly owned subsidiaries ('Financial Services Business') with
effect from 1 April 2010 by way of a demerger to Axis Bank, on a going concern
basis (the Scheme) and simultaneous sale of Financial Service Business from
Axis Bank to ACL. The High Court of Bombay and the High Court of Gujarat vide
their order dated 30 August 2012 and 14 September 2012 respectively, have
approved the Scheme among the Company, Axis Bank Limited, ASSL (now Axis
Capital Limited) and their respective shareholders and creditors. The Scheme
has been executed effective 20 October 2012 on filing of the Court order with
the Registrar of Companies. From the effective date i.e. 20 October 2012, the
Company became a wholly owned subsidiary of Axis Capital Limited ('ACL' which
is 100% subsidiary of Axis Bank Limited).
On 20 October 2012, the Board of Directors of the Company and
subsequently the shareholders vide their consent letter dated 7 December 2012,
had approved the scheme of demerger ('Scheme of Demerger') among ACL, the
Company and their respective shareholders and creditors. Under the Scheme of
Demerger effective 20 October 2012, the Company has acquired the business of
resources management and marketing of third party financial products ('Sales
Division') and online retail broking ('Broking Division') of ACL on a going
concern basis, having net assets of Rs.1215.387 million against a purchase
consideration of 121500000 equity shares of Rs.10 each (fully paid up) in the
Company discharged to the members of ACL. Further, the High Court, Bombay, vide
their Order dated 26 April 2013, has approved the Scheme of Demerger. The
Company has filed the high court order with the Registrar of Companies on 21
May 2013.On the effective date (i.e. 25 May 2013), the Company became
subsidiary of Axis Bank Limited.
|
Segment information |
|
|
Business segment |
Principal activities |
|
Resources management and
marketing of financial products ('Sales Division') |
Division is involved in the
business of marketing of third party retail asset products including
providing resource management services. |
|
Retail
broking ('Broking Division') |
Share broking (online and
offline mode) and other related activities including distribution of IPO and
mutual funds and portfolio management services. |
BUSINESS OVERVIEW
AND REVIEW OF OPERATIONS:
The markets, after a subdued start to the financial year, moved higher
in the last quarter of the year ending the year with a gain of 17.5%.
The sentiments in the market improved in second half of financial year
FY14 due to improvement in the world economy as well as local economic
parameters. The last quarter of FY14 saw Indian stock market outperform most of
its peers on back of improving micro economy data and expectation of Business
friendly political regime. The retail participation at 10 year low in the first
half however has shown initial sign of improvement in second half of FY14.
Domestic Institutions remained sellers almost throughout the year while FIIs
remained net buyers.
The focus in FY14 was to cash break-even in FY14 which was successfully
achieved.
The Company continued to grow steadily, both in business and earnings,
in an increasingly competitive financial market and business accelerated in the
last quarter to such an extent that March’ 14 saw the highest ever Retail Asset
disbursal of Rs.19563.600 million including ever highest Home Loan disbursal of
Rs.10415.200 million which was a landmark figure.
The Company continued to enlarge its distribution network by widening
its geographical reach, which is seen to be critical for tapping business, by
coming up with new branches.
The Company also continued its efforts towards optimizing costs and
expects to further optimize their cost structure through additional measures
taken on operational efficiency.
The company did a substantially voluminous retail asset business of
Rs.163530.000 million in the FY 2013-14. In comparison to FY 2012-13, Home Loan
has witnessed a growth of 15% from Rs.77340.000 million to Rs.88720.000
million, Loan Against Property has witnessed a growth of 55% from Rs.13750.000
million to Rs.21360.000 million, Personal Loan has witnessed a growth of 42%
from Rs.18600.000 million to Rs.26440.000 million and Auto Loan has witnessed a
growth of 11% from Rs.23820.000 million to Rs.26380.000 million.
The company contributes to 55% of overall Home Loan, 69% of Personal
Loan, 58% of Loan against Property and about 93% of Auto Loan business of the
Bank.
The Credit card business which was shifted from cost plus model to
revenue model in retail assets saw a 49% increase in the number of cards issued
449148 in FY 2013-14 as compared to FY 2012-13 which was 302260.
Business of Schematic loan for SMEs has shot up by a huge margin of 84%
by sourcing the business of Rs.27980.000 million in this financial year as
compared to Rs.15230.000 million in FY 2012-13. The manpower productivity for
Retail Assets in FY 2013-14 was 62%.
CHANGE OF CONTROL:
Pursuant to the Demerger of the retail Businesses (including retail
stock broking) of Axis Capital Limited into the Company effective May 25, 2013,
the Company allotted 121499940 Equity Share(s) of Rs.10/- each of the Company,
on a fully paid-up basis, to Axis Bank Limited.
During the year, the Company received approval from all the applicable
regulatory authorities for the transfer of entire Share Capital held by Axis
Capital Limited to Axis Bank Limited. Pursuant to the above transfer of shares,
the Company has now become a wholly owned subsidiary of Axis Bank Limited.
FUTURE OUTLOOK:
The key drivers of Indian equity market will be country’s economic
growth, the outlook of domestic interest rates and outcome of general election.
FII inflow is expected to continue provided the new government is willing to
implement economic reforms.
The Indian capital markets remain largely entwined with the global and
domestic economy. Retail participation remains uncertain, regulatory changes
mean institutional equities business could face significant structural
challenges and other capital markets businesses may remain subdued.
The Indian economy stands at a critical juncture today. It has
successfully tackled some macroeconomic problems such as the widening of twin
deficits and currency depreciation. But equally challenging problem in the form
of growth slowdown and rising food inflation persist. The new government will
have to hit the ground running on economic policy in order to provide confidence
to investors. Enlightened action by a new government is required to put the
economy back on track.
They would like to look forward to the coming year with cautious
optimism and would take steps to supplement core broking income by widening
their product offerings and reach. Retail participation is expected to deepen
if there is broad based rally in the market.
However, the past 3-4 months have generally provided more good news than
bad. The interest rate cycle seems to have peaked, liquidity flows in the
country have been strong, retail participation giving signs of returning to
life and positive noises by the government have all in aggregate helped dispel
some gloom that beset the industry. The industry brokerage revenue pool has
been stabilizing.
Though last few months trend in real estate business was stagnant still
their contribution towards Home Loan business was remarkable. The demand is
expected to increase in the coming year, the upcoming general elections will
also play a key role in the market with buyers expected to wait for the new
government and price corrections to happen.
The company posted good results for the financial year 2013-14 as
compared to the previous financial year despite difficult external factors.
They are confident of capturing the resulting opportunities through their
focused approach.
The Company shall continue to explore opportunities to service clients
directly and shall setup broking branches close to Retail asset centres and
cities where High net worth customers have presence.
The company would also seek to use its brand name which is well
established in the market to stay ahead of the upcoming competition in the wake
of new banking licenses awarded by the RBI.
INDEX
OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10503453 |
09/06/2014 |
200,000,000.00 |
AXIS BANK LIMITED |
CAPITAL MARKET DIVISION, JEEVAN
PRAKASH BUILDING, SIR P.M. ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA |
C06862858 |
FIXED ASSETS:
Tangible Assets
·
Furniture and Fixtures
·
Office Equipment
·
Computer Equipments
·
Leasehold Improvements
Intangible Assets
·
Computer Software
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.63.58 |
|
UK Pound |
1 |
Rs.99.11 |
|
Euro |
1 |
Rs.70.29 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.