MIRA INFORM REPORT
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Report No. : |
310668 |
|
Report Date : |
05.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
LIC NOMURA MUTUAL FUND ASSET MANAGEMENT COMPANY LIMITED (w.e.f.
25.02.2011) |
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Formally known
As: |
LIC MUTUAL FUND ASSET MANAGEMENT COMPANY LIMITED (w.e.f. 21.08.2006) JEEVAN BIMA SAHAYOG ASSET MANAGEMENT COMPANY LIMITED |
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Registered
Office : |
Industrial Assurance Building, 4th Floor, Opposite Churchgate Station, Mumbai – 400020, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
20.04.1994 |
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Com. Reg. No.: |
11-077858 |
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Capital
Investment / Paid-up Capital : |
Rs.1100.000 Million |
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CIN No.: [Company Identification
No.] |
U67190MH1994PLC077858 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMJ04150G |
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PAN No.: [Permanent Account No.] |
AAACJ1166H |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in the business of mutual fund. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (82) |
|
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 |
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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 joint venture between LIC Mutual Fund Trustee Company
Limited and Nomura Asset Management Strategic Investments Private Limited. It
is a well-established company having fine track. Fundamentals are very strong
and healthy. The rating also takes into consideration healthy net worth position
backed by debt free balance sheet 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 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long Term Rating (AAAmfs (LIC Nomura MF Bon
Fund)) |
|
Rating Explanation |
Highest degree of safety and carry lowest
credit risk. |
|
Date |
February 2015 |
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Rating Agency Name |
ICRA |
|
Rating |
Short Term Rating (A1+mfs (LIC Nomura MF
Liquid Fund)) |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
February 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
31-03-2014.
INFORMATION DENIED BY
|
Name : |
Mr. Rahul Jain |
|
Designation : |
Account Manager |
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Contact No.: |
91-22-66016018 |
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Date : |
03.03.2015 |
LOCATIONS
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Registered Office/ Corporate Office : |
Industrial Assurance Building, 4th Floor, Opposite
Churchgate Station, Mumbai – 400020, Maharashtra, India |
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Tel. No.: |
91-22-66016000 |
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Fax No.: |
91-22-22880633/22843660 |
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E-Mail : |
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Website : |
DIRECTORS
As on: 24.09.2014
|
Name : |
Mr. Subrata Kumar Atindra Mitra |
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Designation : |
Director |
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Address : |
1201 Phoenix Tower, B Wing, Senapati Bapat Marg Lower Parel (West),
Mumbai – 400013, Maharashtra, India |
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Date of Birth/Age : |
16.01.1948 |
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Date of Appointment : |
05.02.2010 |
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DIN No.: |
00029961 |
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Name : |
Mr. Marti Gurunath Subrahmanyam |
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Designation : |
Director |
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Address : |
10 East Tenth Street, #18-s, New York, United State of America |
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Date of Birth/Age : |
23.08.1946 |
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Date of Appointment : |
18.01.2011 |
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DIN No.: |
00306761 |
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Name : |
Mr. Hajime Kurozu |
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Designation : |
Nominee director |
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Address : |
The Oberoi Nariman point, Mumbai – 400021, Maharashtra, India |
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Date of Birth/Age : |
15.01.1959 |
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Date of Appointment : |
11.12.2012 |
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DIN No.: |
05318940 |
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Name : |
Mr. Kailash Kumar Bang |
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Designation : |
Director |
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Address : |
13-6,-438 /A 52/1, Satyanarayana Nagar Gudimalkapur, Hederabad –
500006, Andhra Pradesh, India |
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Date of Birth/Age : |
15.05.1965 |
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Date of Appointment : |
25.04.2013 |
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DIN No.: |
06505739 |
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Name : |
Takashi Saruta |
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Designation : |
Nominee director |
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Address : |
1645 Kurohama Hasuda, Saitama, Japan |
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Date of Birth/Age : |
29.01.1962 |
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Date of Appointment : |
20.06.2013 |
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DIN No.: |
06561447 |
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Name : |
Mr. Surya Kumar Roy |
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Designation : |
Nominee director |
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Address : |
51, Jeevan Akash Forjet Hill Road, Mumbai – 400036, Maharashtra, India
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Date of Birth/Age : |
30.07.1958 |
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Date of Appointment : |
23.08.2013 |
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DIN No.: |
02503135 |
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Name : |
Mr. Satish Keshav Kamat |
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Designation : |
Director |
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Address : |
F/6, Union House First, Floor, LJ Cross Road, Noz Mahim, Mumbai –
400016, Maharashtra, India |
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Date of Birth/Age : |
13.09.1956 |
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Date of Appointment : |
30.08.2013 |
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DIN No.: |
01536698 |
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Name : |
Mrs. Sunita Sharma |
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Designation : |
Nominee director |
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Address : |
3/301 Millenium Apartment Plot – 2, Dwarka, Sector 9 Delhi – 110077,
India |
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Date of Birth/Age : |
09.03.1959 |
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Date of Appointment : |
25.02.2014 |
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DIN No.: |
02949529 |
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Name : |
Mr. Nilesh Bhaskar Sathe |
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Designation : |
Whole-time director |
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Address : |
D2, Jeevan Jyot Building Setalwad Lane, Nepeansea Road, Mumbai –
400036, Maharashtra, India |
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Date of Birth/Age : |
01.05.1957 |
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Date of Appointment : |
21.06.2012 |
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DIN No.: |
02372576 |
KEY EXECUTIVES
|
Name : |
Mr. Ashish Kumar Srivastava |
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Designation : |
Secretary |
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Address : |
Flat 301 Sector 23 Benoy Housing Society, Jui Nagar West – 400706,
Maharashtra, India |
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Date of Birth/Age : |
04.11.1986 |
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Date of Appointment : |
02.05.2014 |
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PAN No.: |
BCDPS7214Q |
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Name : |
Mr. Rahul Jain |
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Designation : |
Account Manager |
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Name : |
Mr. .Ryuichi Moriya |
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Designation : |
Senior Manager-Business Development |
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Date of Birth/Age : |
47 Years |
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Experience and Qualification : |
Bachelor of Economics graduated from Keio University and over 23 years
of experience in financial industry |
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|
Name : |
Mr. Anutosh Bose |
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Designation : |
Chief Operations Officer |
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Date of Birth/Age : |
45 Years |
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Experience and Qualification : |
MBA (Finance), PGD Marketing & Sales, CAIIB (UTI - Exam), Oracle
Financials, PGDCA. 21 years’ experience in Mutual Fund. In IT and Operations. |
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|
Name : |
Mr. Nobukata Kitajima |
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Designation : |
Chief Operations Officer (Equity) |
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Date of Birth/Age : |
48 Years |
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Experience and Qualification : |
MBA, Pepperdine University, California, USA, Bachelor of International
Economics. Experience: - Nomura Asset Management Company Limited Product
Management for Global Equity related products and as Senior Portfolio
Manager. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 24.09.2014
|
Names of Shareholders |
|
No. of Shares |
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Sushobhan Sarker |
|
1 |
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Pravin Hari Kutumbe |
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1 |
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M. R. Murali |
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1 |
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P. Vaidhyanathan |
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1 |
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Kamal Kishore Singhal |
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1 |
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Supratim Bandyopadhyay |
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1 |
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R.D. Damle |
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1 |
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LIC of India |
|
4943 |
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LIC Housing Finance Limited |
|
2200 |
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Normura Asset Management Strategic Investments Private Limited |
|
3850 |
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Total |
|
11000 |
Equity Share Break up (Percentage of Total Equity)
As on: 24.09.2014
|
Category |
Percentage |
|
Public financial companies |
45.00 |
|
Foreign holdings (Foreign institutional investor(s), Foreign companies(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas corporate bodies or Others) |
35.00 |
|
Bodies corporate (not mentioned above) |
20.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business of mutual fund. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by the management |
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Bankers : |
Not Divulged |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
252, Veer Savarkar MargShivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India |
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Pan: |
AAEFP3641G |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Associate Companies : |
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Mutual Fund managed by the Company |
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Wholly owned subsidiary of NAM |
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CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
25000 |
Equity Shares |
Rs.10000/- each |
Rs. 250.000 Million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
11,000 |
Equity Shares |
Rs.10000/- each |
Rs. 110.000
Million |
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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 |
|
|
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(a) Share Capital |
110.000 |
110.000 |
110.000 |
|
(b) Reserves & Surplus |
977.220 |
1143.522 |
1135.178 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
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(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
1087.220 |
1253.522 |
1245.178 |
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(3)
Non-Current Liabilities |
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(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
4.464 |
5.119 |
8.533 |
|
(c) Other long term
liabilities |
71.901 |
57.738 |
38.487 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
76.365 |
62.857 |
47.020 |
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(4)
Current Liabilities |
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|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
43.530 |
39.747 |
49.465 |
|
(c) Other current
liabilities |
9.833 |
4.905 |
1.145 |
|
(d) Short-term
provisions |
0.051 |
0.048 |
5.577 |
|
Total Current
Liabilities (4) |
53.414 |
44.700 |
56.187 |
|
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|
|
|
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TOTAL |
1216.999 |
1361.079 |
1348.385 |
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II.
ASSETS |
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|
(1)
Non-current assets |
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|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
28.553 |
38.523 |
55.507 |
|
(ii)
Intangible Assets |
14.989 |
35.684 |
52.747 |
|
(iii)
Capital work-in-progress |
0.000 |
0.335 |
1.320 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
10.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
243.651 |
216.592 |
232.435 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
287.193 |
291.134 |
352.009 |
|
|
|
|
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(2)
Current assets |
|
|
|
|
(a)
Current investments |
853.736 |
1011.908 |
959.520 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
41.271 |
33.665 |
19.052 |
|
(d) Cash
and cash equivalents |
28.017 |
18.159 |
5.218 |
|
(e)
Short-term loans and advances |
6.782 |
6.193 |
12.566 |
|
(f) Other
current assets |
0.000 |
0.020 |
0.020 |
|
Total
Current Assets |
929.806 |
1069.945 |
996.376 |
|
|
|
|
|
|
TOTAL |
1216.999 |
1361.079 |
1348.385 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
278.713 |
269.245 |
337.642 |
|
|
|
Other Income |
87.945 |
177.332 |
29.549 |
|
|
|
TOTAL |
366.658 |
446.577 |
367.191 |
|
|
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|
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|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees benefits expense |
242.355 |
211.165 |
172.930 |
|
|
|
Other expenses |
250.271 |
187.179 |
283.223 |
|
|
|
TOTAL |
492.626 |
398.344 |
456.153 |
|
|
|
|
|
|
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|
Less |
PROFIT
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
(125.968) |
48.233 |
(88.962) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
0.098 |
0.063 |
0.050 |
|
|
|
|
|
|
|
|
|
|
PROFIT
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(126.066) |
48.170 |
(89.012) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
38.429 |
39.826 |
32.662 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL ITEM |
(10.919) |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
PRIOR PERIOD |
12.727 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT (LOSS)
BEFORE TAX |
(166.303) |
8.344 |
(121.674) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
280.664 |
|
|
|
|
|
|
|
|
|
|
PROFIT (LOSS)
AFTER TAX |
(166.303) |
8.344 |
(402.338) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(166.117) |
(174.461) |
227.877 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(332.420) |
(166.117) |
(174.461) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
30.634 |
27.461 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(15118.45) |
759.000 |
(36576) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(59.67) |
3.10 |
(119.16) |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
(45.20) |
17.91 |
(26.35) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(13.67) |
0.61 |
(9.10) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.15) |
0.01 |
(0.10) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
17.41 |
23.94 |
17.73 |
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 |
110.000 |
110.000 |
110.000 |
|
Reserves & Surplus |
1135.178 |
1143.522 |
977.220 |
|
Net worth |
1245.178 |
1253.522 |
1087.220 |
|
|
|
|
|
|
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 Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Revenue from Operations |
337.642 |
269.245 |
278.713 |
|
|
|
(20.257) |
3.516 |
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 |
337.642 |
269.245 |
278.713 |
|
Profit/Loss |
(402.338) |
8.344 |
(166.303) |
|
|
(119.16%) |
3.10% |
(59.67%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
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 |
No |
|
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 |
No |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
PERFORMANCE:
The total income during the financial year 2013-14 has gone down from Rs. 446.577 Million to Rs 366.657 Million, mainly on account of reduction in income from investments. Exceptional item of income is on account of amount received in settlement of their claim on the Central Bank of India, for it having made improper encashment of dividend warrants. Prior period item is on account of withheld brokerage relating to FY 2011-12 & 2012-13, which was not provided in earlier years. During the financial year 2013-14 total expenses have increased from Rs.398.344 Million to Rs. 492.625 Million, due to increase in expenses on account of commission, publicity, employee benefit & scheme related expenses. The main source of income for the Company is Management and Advisory fee for managing the schemes of LIC Nomura Mutual Fund. During the year under review, the Management and Advisory fee has gone up from Rs 269.245 Million to Rs 278.713 Million in view of increases in Asset under Management.
During the year 2013-14, the AMC has increased its Average Assets under Management from Rs. 71850.000 Million to Rs. 105840.000 Million (Mutual Fund Industry’s AAUM Rs 9051200.000 Million), showing an increase of 47%. The AMC is ranked 18 th out of the 45 Mutual Funds AMC operating in the country with an increase in market share to 1.17% from 0.86% in the previous year.
The total number of investors as at the end of the year stood at 297659 as against 321491 at the end of the last financial year.
Future Outlook of the
Fund:
The Asset Management Company with the consent of the boards has taken steps to further improve the efficiencies in the business. The streamlining of NAV computation, strengthening of various functions in line with the Mutual fund industry has helped in the growth of business.
The regulator has also guided and supported in permitting new schemes and also the merger of four equity funds.
The fund house also has taken initiatives to improve public relations and media coverage with success.
General Economic Trend:
RBI in its recent bi-monthly policies has kept the key policy rates unchanged as expected, in line with its forward guidance. The RBI was not upbeat about the domestic economy, seeing downside risks to its 5.5% central forecast for fiscal year 2014/15. While it acknowledged the sharp decline in recent months in headline CPI inflation, it pointed out that this was due to food inflation and that the core inflation remains high and sticky.
The RBI kept the policy rate (the repurchase or repo rate) on hold at 8.00%, in line with consensus and their expectations. Consequently, the reverse repo and marginal standing facility (MSF) rates were left unchanged at 7.00% and 9.00%, respectively. The cash reserve ratio (CRR) was also kept unchanged at 4.00%.
The Debt markets sentiments in the Government Bond Markets turned bearish on the Budget announcement, with 8.83 % 2023 G-Sec gaining from 8.80 to 9.07% as investor appetite ebbed amid excess issuances (4 th April) and diminished chances of rate cut. The rupee's recovery and improved macroeconomic indicators are among the reasons for the greater confidence in India. Foreign fund managers expect flows into the debt market to remain robust going forward, as yields in India are significantly more attractive than those in developed markets. The appreciation in the rupee is positive for the Indian economy as it reduces crude import costs substantially amid falling international commodity prices. The appreciating rupee however will make exports uncompetitive, thereby hurting that critical sector.
Strong currency environment, narrowing current account deficit (CAD), declining inflation trend and improving balance of payments situation has boosted global investors' confidence towards India. April-December CAD narrowed to 2.3% of GDP, or $31.1 billion, against 5.2% ($69.8 billion) a year ago, mainly due to steep decline in gold imports. Experts pegged CAD for FY14 at about 2% of GDP, or $35 billion down sharply from 4.8% last year.
Outlook:
With the hopes of a change in the economic and political scenario which would help revive investment and push growth to above 5% for the first time in the past two years. Some of the key areas for the new government are improving infrastructure, consolidating fiscal deficits, containing inflation, and reinvigorating the manufacturing sector. Any indications of the policies in these areas will be keenly watched by the market participants.
In terms of investment opportunity, infrastructure would be an obvious area for post-election policy drive, internet penetration is still low but growing rapidly, opening up opportunity for e-commerce companies, agricultural productivity must rise in order to feed the increasing population with different taste (more protein, etc.). Investing in export oriented IT and pharma provide good hedge against potential currency weakness. Despite the recent rally, mid-cap valuation relative to large cap remains attractive. G-sec range that earlier stood at 8.70-8.95% will see an upward shift as frontloaded H1 FY14 borrowing Rs 0.368 Million crore in the April-September period, (which is about 62% of the government debt borrowing plan of Rs 0.597 Million crore for FY14) coupled with a likely uptick in inflation in next release on a turnaround in food prices and a rebound in core CPI impacts the appetite for government debt will put upward, steepening pressure on the yield curve, which may attract more global investors to the Indian Markets .
.
CONTINGENT
LIABILITIES:
(Rs. in Million)
|
PARTICULARS |
31.03.2014 |
|
Claims against company not acknowledged as debt |
280.624 |
|
Total contingent liabilities |
280.624 |
Index of charges: No
Charges Exist for Company
FIXED ASSETS:
- Furniture and fixtures
- Vehicles
- Motor vehicles
- Office equipment
- Computer equipments
- Leasehold improvements
- Computer software
PRESS RELEASE:
LIC likely to exit mutual fund JV with Nomura
Delhi: January 12, 2015:
LIC has denied
the contents of this article. Please read the correction at the end.
As part of its new strategy on
non-core businesses, Life insurance Corporation (LIC), India's largest
insurance company, is considering exiting from its mutual fund joint venture with Nomura, and paring its
stake in LIC Housing Finance.
According to sources, in a January 6 letter to the department of financial services (DFS) under the finance
ministry, LIC said it wanted to stop sponsoring LIC Nomura Mutual Fund, and might offer some of its stake
in LIC Housing Finance to other shareholders.
The letter focused more on the dismal performance of the fund house sponsored
by LIC, and did not elaborate on the insurance company's plans for LIC Housing
Finance.
In the near term, it wants to stop sponsoring LIC Nomura Mutual Fund, whose
assets under management (AUM) stood at a low Rs 7,618 crore as of December last
year.
LIC sought the department's approval to break the joint venture. In the
meantime, it will not put fresh funds into the business. "Pending the
ministry's nod, they will not put fresh funds... However, they will continue
good business relations with the fund house," said an official who did not
wish to be named.
Emails sent to LIC, LIC Nomura Mutual Fund and LIC Housing Finance had not
elicited any response till the time of going to press.
LIC, the largest domestic investor in the market, managing assets worth over Rs
1.700 Million crore, holds a majority stake in LIC Nomura Mutual Fund, which
was set up in April 1989.
According to the company website, LIC holds a 45 per cent stake and LIC Housing
Finance a 20 per cent stake in the venture, while Japanese investment firm,
Nomura, owns 35 per cent shares.
The discussions to discontinue the
joint venture had begun in August last year, when LIC and Nomura had exchanged
correspondence for the way forward.
LIC Nomura MF's AUM dropped to almost a 10th of the Rs 700000.000 Million
during its heyday, even as the industry's overall AUM exceeded Rs 1.000 Million
crore in May, amid a stock market rally.
In September 2014, LIC raised
concerns on the fund house's performance. Chairman S K Roy was quoted as saying
that the business had not grown in the desired way, and was yet to be scaled
up.
If the finance ministry approves LIC's plan to exit, either Nomura will have to
increase its stake in the venture or LIC will sell its stake to another entity.
This will be the 16th deal in the country's mutual fund space in the past
one-and-a-half decades.
Even as there have been a few instances of foreign fund houses shutting shops
here - there have been five such exits in the past five years - LIC's exit from
LIC Nomura MF will be a rare instance of an Indian partner pulling out of a
mutual fund joint venture.
CORRECTION
LIC has said in a statement, “LIC of India wishes to inform that it is neither
contemplating nor does it intend to review its present position in relation to
LIC Nomura Mutual Fund Asset Management Company Ltd or LIC Housing Finance Ltd.
LIC of India reiterates its commitment to LIC Nomura Mutual Fund Asset
Management Company Ltd and LIC Housing Finance Ltd.” We stand corrected and
regret the error.
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 records 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.61.85 |
|
|
1 |
Rs.94.96 |
|
Euro |
1 |
Rs.69.10 |
INFORMATION DETAILS
|
Information
Gathered by : |
PPT |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILITY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
10 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
82 |
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.