|
|
|
MIRA INFORM REPORT
|
Report No. : |
504031 |
|
Report Date : |
17.04.2018 |
IDENTIFICATION DETAILS
|
Name : |
BNP PARIBAS ASSET MANAGEMENT INDIA PRIVATE LIMITED (w.e.f. 18.10.2010) |
|
|
|
|
Formerly Known
As : |
FORTIS INVESTMENT MANAGEMENT (INDIA) PRIVATE LIMITED (w.e.f.
19.09.2008) ABN AMRO ASSET MANAGEMENT (INDIA) PRIVATE LIMITED (w.e.f. 20.06.2008) ABN AMRO ASSET MANAGEMENT (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
BNP Paribas House, 1 North Avenue, Maker Maxity, Bandra Kurla Complex,
Bandra (East), Mumbai – 400051, Maharashtra |
|
Tel. No.: |
91-22-33704000 |
|
|
|
|
Country : |
India |
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|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
04.11.2003 |
|
|
|
|
Com. Reg. No.: |
11-142972 |
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|
|
|
Capital
Investment / Paid-up Capital : |
INR 2109.675 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65991MH2003PTC142972 |
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|
|
|
IEC No.: [Import-Export Code No.] |
Not Applicable (As informed by the management that firm
does not have export and import) |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
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|
|
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PAN No.: [Permanent Account No.] |
AAECA5153B |
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|
|
|
Legal Form : |
Private Limited Liability Company. |
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|
|
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Line of Business
: |
(Registered activity) |
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|
|
|
No. of Employees
: |
Information declined by the management
|
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a subsidiary of “BNP Paribas Investment Partners Asia Limited” based in Hong Kong but its ultimate holding company is “BNP Paribas S.A” based in France. It was incorporated in the year 2003 and engaged in providing investment management asset advice and services of Mutual Funds. As per financials of March 2017, the company has registered minimal decline in its revenue and has reported decent profit margin. Rating takes into consideration the company’s established track record of business operations marked by healthy capital base along with deft free balance sheet and decent liquidity position. Rating also takes into account the strong financial and managerial support received from its holding entity and well experienced management team. Further, “BNP Paribas S.A” has been ranked 43rd in Global Fortune 500 Company List. However, rating strength is partially offset by negative reserves of the company. Payments reported to be regular. In view of aforesaid, the company can be considered for good 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 |
CRISIL |
|
Rating |
BNP Paribas Overnight Fund = AAAmfs |
|
Rating Explanation |
Highest degree of degree and carry lowest credit risk. |
|
Date |
13.04.2017 |
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
31-03-2018.
BIFR (Board for Industrial & Financial
Reconstruction) LISTING STATUS
Subject’s name is
not listed as a Sick Unit in the publicly available BIFR (Board for Industrial
& Financial Reconstruction) list as of 17.04.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED BY
|
Name : |
Ms. Nisha |
|
Designation : |
Sales Department |
|
Contact No.: |
91-22-33704000 |
|
Date : |
14.04.2018 |
LOCATIONS
|
Registered Office : |
BNP Paribas House, 1 North Avenue, Maker Maxity, Bandra Kurla Complex,
Bandra (East), Mumbai – 400051, Maharashtra, India |
|
Tel. No.: |
91-22-33704000 |
|
Fax No.: |
91-22-37304294 |
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E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2017
|
Name : |
Ninad Bhalchandra Karpe |
|
Designation : |
Director |
|
Address : |
801,Jaywant Apartments, 63, Tardeo Road, Mumbai – 400034, Maharashtra, India |
|
Date of Birth/Age : |
04.03.1961 |
|
Qualification : |
B. Com; LLB (Gen.) FCA |
|
Date of Appointment : |
16.11.2004 |
|
PAN No.: |
ACBPK0044R |
|
DIN No.: |
00030971 |
|
|
|
|
Name : |
Mr. Sanjay Niranjan Sachdev |
|
Designation : |
Director |
|
Address : |
India House N0.2, 4th Floor, Flat N0.21, Kemp's Corner,
Mumbai 400036 MH IN |
|
Date of Appointment : |
24.12.2016 |
|
DIN No.: |
00415170 |
|
|
|
|
Name : |
Chandan Bhattacharya |
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Designation : |
Director |
|
Address : |
Flat No. 72, Sunflower Apartment, Ravi Kiran Chs Gd Somani Marg, Cuffe Parade Mumbai – 400005, Maharashtra, India |
|
Date of Birth/Age : |
13.01.1945 |
|
Qualification : |
B.A. (Hons.), C.A.I.I.B. |
|
Date of Appointment : |
19.07.2011 |
|
PAN No.: |
ADZPB9238K |
|
DIN No.: |
01341570 |
|
|
|
|
Name : |
Sharad Kumar Sharma |
|
Designation : |
Managing Director |
|
Address : |
Flat No. 1, Ground Floor, Building. No. 1, Hill Park, A.G. Bell Road, Near Malabar Telephone Ex Change, Mumbai – 400006, Maharashtra, India |
|
Date of Birth/Age : |
08.09.1959 |
|
Qualification : |
B.COM, MFM, CAIIB,CFP |
|
Date of Appointment : |
08.01.2015 |
|
DIN No.: |
01586742 |
|
|
|
|
Name : |
Anand Nareshbhai Shah |
|
Designation : |
Wholetime Director |
|
Address : |
801 Raheja Acropolis Atlantis Bldg Deonar Pada Rd Deonar Village Chembur Mumbai – 400088, Maharashtra, India |
|
Date of Birth/Age : |
24.12.1974 |
|
Qualification : |
B.E. (REC, Surat) P G D B A (IIM-Lucknow) |
|
Date of Appointment : |
16.07.2013 |
|
PAN No.: |
AMWPS3591E |
|
DIN No.: |
06592579 |
|
|
|
|
Name : |
Rakesh Vengayil |
|
Designation : |
Director |
|
Address : |
Flat 38, Sheringham St Johns Wood Park, Nw8 6ra London Na Gb |
|
Date of Appointment : |
23.09.2015 |
|
DIN No.: |
07285800 |
KEY EXECUTIVES
|
Name : |
Jyothi Krishnan |
|
Designation : |
Company Secretary |
|
Address : |
601, Pratik Apt, Asha Nagar, Kandivili (East), Mumbai – 400101, Maharashtra, India |
|
Date of Appointment : |
22.05.2013 |
|
PAN No.: |
AAKPK3974D |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2017
|
Names of Shareholders |
|
No. of Shares |
|
BNP Paribas Investment Partners Asia Limited, Hong Kong |
|
210967500 |
|
|
|
|
|
Total |
|
210967500 |
Note: * Mr. Sharad Kumar Sharma and Ms. Jyothi Krishnan (residing in
India) are holding 10 shares each as nominees of BNP Paribas Investment
Partners Asia Limited u/s 89 of the companies Act, 2013.
Equity Share Break up (Percentage of Total Equity)
As on 29.04.2017
|
Category |
Percentage |
|
Promoter - Bodies
corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
(Registered activity) |
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Products : |
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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 : |
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 : |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
‘Heritage’, 3rd Floor, Near Gujarat Vidhyapith, off Ashram Road, Ahmedabad – 380014, Gujarat, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AABFD7919A |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Holding company: |
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Ultimate Holding company: |
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Fellow Subsidiary
company: |
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Others : |
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CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
215000000 |
Equity Shares |
INR 10/- each |
INR 2150.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
210967500 |
Equity Shares |
INR 10/- each |
INR 2109.675 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2109.675 |
2109.675 |
2109.675 |
|
(b) Reserves and Surplus |
(84.853) |
(219.104) |
(331.095) |
|
(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) |
2024.822 |
1890.571 |
1778.580 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long-term
liabilities |
0.347 |
0.104 |
0.058 |
|
(d) long-term
provisions |
14.137 |
12.180 |
12.301 |
|
Total Non-current
Liabilities (3) |
14.484 |
12.284 |
12.359 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short-term
borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
72.244 |
77.667 |
71.004 |
|
(c) Other
current liabilities |
53.876 |
50.842 |
42.115 |
|
(d) Short-term
provisions |
10.608 |
7.164 |
5.146 |
|
Total Current
Liabilities (4) |
136.728 |
135.673 |
118.265 |
|
|
|
|
|
|
TOTAL |
2176.034 |
2038.528 |
1909.204 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
5.186 |
5.065 |
10.979 |
|
(ii)
Intangible Assets |
2.288 |
0.511 |
1.452 |
|
(iii) Tangible assets
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 |
65.450 |
59.490 |
59.490 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d)
Long-term loans and advances |
119.903 |
211.094 |
251.240 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
192.827 |
276.160 |
323.161 |
|
|
|
|
|
|
(2) Current
assets |
|
|
|
|
(a)
Current investments |
1846.447 |
1598.504 |
1426.299 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
47.226 |
70.557 |
48.862 |
|
(d) Cash and
bank balances |
1.283 |
1.141 |
1.143 |
|
(e)
Short-term loans and advances |
88.251 |
92.166 |
109.739 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
1983.207 |
1762.368 |
1586.043 |
|
|
|
|
|
|
TOTAL |
2176.034 |
2038.528 |
1909.204 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Total
Revenue from operations |
650.468 |
654.109 |
514.356 |
|
|
Other Income |
142.522 |
124.400 |
189.731 |
|
|
TOTAL |
792.990 |
778.509 |
704.087 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
0.000 |
0.000 |
0.000 |
|
|
Purchases of
Stock-in-Trade |
0.000 |
0.000 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
0.000 |
0.000 |
0.000 |
|
|
Employee benefit expense |
259.062 |
236.765 |
202.711 |
|
|
Other expenses |
358.789 |
390.142 |
410.965 |
|
|
TOTAL |
617.851 |
626.907 |
613.676 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
175.139 |
151.602 |
90.411 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
0.076 |
0.103 |
1.966 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
175.063 |
151.499 |
88.445 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
4.387 |
9.122 |
10.498 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
170.676 |
142.377 |
77.947 |
|
|
|
|
|
|
|
Less |
TAX |
36.425 |
30.385 |
9.251 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
134.251 |
111.992 |
68.696 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
0.64 |
0.53 |
0.33 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Net cash flows from (used in) operations |
63.224 |
72.464 |
(309.526) |
|
Net cash flows from (used in) operating activities |
136.915 |
54.916 |
(343.541) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
26.50 |
39.37 |
34.67 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
13.77 |
9.27 |
10.53 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
23.43 |
27.19 |
7.27 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.06 |
0.07 |
0.06 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.07 |
0.07 |
0.07 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.00 |
0.00 |
0.01 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
2304.46 |
1471.86 |
45.99 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
20.64 |
17.12 |
13.36 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
6.17 |
5.49 |
3.60 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
6.63 |
5.92 |
3.86 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
14.50 |
12.99 |
13.41 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
14.50 |
12.99 |
13.41 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.93 |
0.93 |
0.93 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
14.50 |
12.99 |
13.41 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Share Capital |
2109.675 |
2109.675 |
2109.675 |
|
Reserves & Surplus |
(331.095) |
(219.104) |
(84.853) |
|
Net
worth |
1778.580 |
1890.571 |
2024.822 |
|
|
|
|
|
|
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 |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
514.356 |
654.109 |
650.468 |
|
|
0.000 |
27.170 |
(0.557) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
514.356 |
654.109 |
650.468 |
|
Profit/ (Loss) |
68.696 |
111.992 |
134.251 |
|
|
13.36
% |
17.12
% |
20.64
% |
LEGAL
CASES
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LITIGATION DETAILS |
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Bench:- Bombay |
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Lodging No:- |
ITXAL/2251/2017 |
Failing Date:- |
12.09.2017 |
Reg. No.:- |
ITXA/707/2018 |
Reg. Date:- |
28.02.2018 |
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Petitioner:- |
PR. COMMISSIONER OF INCOME TAX – 14 |
Respondent:- |
BNP PARIBAS ASSET MANAGEMENT INDIA PRIVATE LIMITED |
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Petn.Adv:- |
SURESH KUMAR (I2100) |
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District:- |
AHMEDNAGAR |
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Bench:- |
DIVISION |
Category: |
TAX APPEALS |
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Status:- |
Pre-Admission |
Stage:- |
FOR REJECTION
[ORIGINAL SIDE MATTERS] |
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Last Date:- |
13.03.2018 |
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Last Coram : |
ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST |
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Act:- |
Income Tax Act, 1961 |
Under Section :- |
260A |
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LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
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2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
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6 |
Contact numbers |
Yes |
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7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
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9 |
Promoter’s background |
Yes |
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10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
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11 |
Pan Card No. of Proprietor / Partners |
No |
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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 |
No |
|
17 |
Details of sister concerns |
Yes |
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18 |
Major suppliers |
No |
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19 |
Major customers |
No |
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20 |
Banking Details |
No |
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21 |
Banking facility details |
No |
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22 |
Conduct of the banking account |
-- |
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23 |
Financials, if provided |
Yes |
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24 |
Capital in the business |
Yes |
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25 |
Last accounts filed at ROC, if applicable |
Yes |
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26 |
Turnover of firm for last three years |
Yes |
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27 |
Reasons for variation <> 20% |
-- |
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28 |
Estimation for coming financial year |
No |
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29 |
Profitability for last three years |
Yes |
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30 |
Major shareholders, if available |
Yes |
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31 |
External Agency Rating, if available |
Yes |
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32 |
Litigations that the firm/promoter
involved in |
Yes |
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33 |
Market information |
-- |
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34 |
Payments terms |
No |
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35 |
Negative Reporting by Auditors in the
Annual Report |
No |
CORPORATE INFORMATION
BNP Paribas Asset Management India Private Limited (the Company) is registered under the Companies Act, 1956 with effect from October 18, 2010. Earlier, the Company was known as Fortis Investment Management (India) Private Limited from September 19, 2008 to October 17, 2010. Prior to that it was known as ABN AMRO Asset Management (India) Limited and had obtained the registration under the Companies Act, 1956 on November 4, 2003. The main objects of the Company are to carry on the business of asset management and portfolio management services. The Company is a wholly owned subsidiary of BNP Paribas Investment Partners Asia Limited, Hong Kong.
Subsequent to the global acquisition of Fortis Group by BNP Paribas in 2009 and on receiving the no objection letter from SEBI to be the sponsor of the Company, the Asset Management Company became a part of the BNP Paribas Group. Earlier due to a global restructuring in April 2008, ABN AMRO Asset Management group became a part of Fortis Investments group. At that time, ABN AMRO Asset Management (India) Limited was changed to a private limited company on June 20, 2008 and in due course to Fortis Investment Management (India) Private Limited.
The primary activity of the Company is to act as an investment manager to BNP Paribas Mutual Fund. The Company manages the investment portfolio and provides various administrative services to the Fund.
The Company also provides portfolio management services (PMS) to clients under Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993.
FINANCIAL RESULTS
During the year, the Company made a net profit of INR 134.251 Million as against net profit of INR 111.991 Million during the previous year.
APPROPRIATIONS
The Company does not propose to transfer any amounts to the General Reserves. An amount of INR 134.251 Million is proposed to be retained in the Statement of Profit and Loss.
STATE OF COMPANYS
AFFAIRS
The Company is registered with Securities and Exchange Board of India (SEBI) primarily to act as an asset manager to the Schemes of BNP Paribas Mutual Fund under the SEBI (Mutual Funds) Regulations, 1996. Further, the Company also provides services as a Portfolio Manager under SEBI (Portfolio Managers) Regulations, 1993.
OPERATIONAL
HIGHLIGHTS:
Mutual Fund: BNP Paribas Mutual Fund (the Fund) commenced its operations in the month of August 2004. The Fund manages 13 Schemes as on March 31, 2017 with Net Assets under Management (NAUM) of INR 55897.500 Million, which increased from INR 49836.800 Million as on March 31, 2016, indicating an increase in NAUM of 12.16% approximately. The schemes are a mix of equity, debt and hybrid schemes.
Portfolio Management:
The Company has commenced providing Portfolio Management Services with effect from September 26, 2006. As on March 31, 2017, the net assets under management are INR 3243.700 Million. The Portfolio Manager also provides Advisory Services to offshore clients. The AUM for which Advisory Services are provided is INR 76075.200 Million as on March 31, 2017.
FUTURE OUTLOOK:
Economic Overview:
Paving the way for a
digital economy
The year 2016 turned out to be a year of heightened activity as the Government of India introduced game changing reforms and economic growth took a turn for the better. The biggest event of the year was undoubtedly the demonetisation of high value currency notes in November, 2016. Implemented with an aim to flush out black money from the economy and nudge India into its digital future, it is a move which has far reaching ramifications for the Indian economy, its stock markets and its people. While short-term disruption is imminent, they expect this move to bring long term benefits to the country which includes greater financial inclusion, an improved formal economy and greater tax collection. From a sector perspective they believe that this initiative puts Indian banks in a sweet spot as higher deposits will subsequently lower the cost of funds for banks. Additionally, it also provides an incentive for digital payments.
The expected initiation of the Goods and Services Tax (GST) regime from July, 2017 is likely to help enhance tax compliance and benefit the organised sector. From a corporate perspective, it should improve logistics efficiency and ease of doing business. As tax compliance improves, they believe the GST rate could eventually come down.
Macro-economic
metrics on stable ground
GDP growth in 2016 has been surprisingly robust with the latest Q3 FY17 figures showing no significant slowdown from the governments demonetisation exercise. The governments advance estimates see GDP growth at 7.1% in FY 17. Buoyed by a normal monsoon and encouraging sowing data, the farm sectors growth is projected to accelerate to 4.1% this financial year from 1.2% last year. However, slower growth in manufacturing (7.4%) and the construction sector (2.9%) and contraction in the mining sector (1.8%) is expected to drive down overall growth. Among the services sectors, public expenditure, which has been the key driver of growth this year, is expected to grow 12.8% compared with 6.6% last year. Growth in the trade, hotels and transport sectorthe largest services segmentis expected to slow to 6% from 9%. Private consumption is expected to continue to decelerate (6.5%), investment demand is set to enter negative territory (-0.2%), due to lack of private investment demand.
On a growth
trajectory
For the past three years, India's earnings growth has repeatedly belied expectations. While FY15 saw weak commodity prices and dampened rural demand, 2016 saw a gradual pick up in earnings growth with promising earnings trends in the near future. However, exceptional events particularly demonetisation, could hit earnings in the short term. Once the furor over demonetisation rests they expect a steady recovery in 2017. They expect earnings growth to pick up to 15%+ in FY18 after two weak years. Further improvements are likely to be more pronounced from 2HFY18 as GST-related disruptions may impact 1HFY18 earnings. Additionally, domestic inflows are likely to remain strong perpetuated by investments in mutual funds by retail investors, even if FII inflows decline. Highlighting the promising picture is that valuations have become attractive (around historical average at 15.8x 12 month forward P/E) following the demonetisation-led market correction.
2016 turned out to be the year where Value (loosely defined as PSU banks, private corporate banks, metals, oil & gas, utilities) performed better compared to Growth (autos, consumer, IT and pharmaceuticals). Higher economic growth may gradually benefit Indian savers & also lead to a shift in the saving pattern of Indian households from physical to financial assets with a sharp bias towards equity. Mutual funds are well positioned to absorb this incremental shift in investment pattern.
A conflation of factors which include enhanced macroeconomic stability, a credible monetary policy and incremental progress in reforms has put India on a path to a gradual but sustainable recovery.
While they expect a pick-up in private investments to be sluggish, the government's push to boost investment in infrastructure (particularly roads and railways) and housing marks another step towards a planned improvement of the country's economic growth rate.
They believe the government's long-term vision of game changing reforms supported by a slow but steady improvement in economic growth over the next three quarters will help build a stable and sustainable growth economy.
Mutual Fund Industry
Overview:
Just to put some numbers into perspective, the average Assets under Management (AuM) of Indian Mutual Fund Industry for crossed a landmark of INR 18 trillion (INR 1,800,000 crore) and stood at INR 18.58 trillion. The AUM of the Indian MF Industry has grown from INR 3.26 trillion as on March 31, 2007 to INR 18.58 trillion as on March 31, 2017 witnessing an astonishing 5x increase in a span of 10 years The total number of accounts (or folios) as on March 31, 2017 stood at 5.54 crores, while the number of folios under Equity, ELSS and Balanced schemes, wherein the maximum investment is from retail segment stood at 4.44 crores. This has happened despite the headwinds that the industry has faced. A confluence of factors point towards positive growth for mutual funds in India.
Significant effort is being invested by the Asset Management Companies (AMCs) in investor education. SEBI has mandated AMCs to spend 2 basis points (bps) of their AUM per year for this purpose.
Over the last few years, fund houses, distributors and investors have started speaking the language of goal-based investing. This may lead to investors staying with their investments for longer time horizons.
Debt and liquid funds have now become increasingly popular among the retail investors. This indicates that mutual funds can potentially account for a larger share of the investors wallet, thereby giving an impetus to industry growth in the coming years.
Mutual funds continue to remain one of the finest investment vehicles available to investors. Incidentally, hardly anything has changed for the investor. Just that the rules of the game have changed.
Distribution Network
BNP Paribas Asset Management India Private Limited (the AMC) has 5848 empanelled distributors as on 31st March, 2017 as against 5127 empanelled distributors as on 31st March, 2016. The number of empanelled distributors has gone up due to good fund performance, and better service quality which is helping us find acceptance amongst the distributor community. The AMC has opened 3 new branches in Hyderabad, Thane and Borivali thereby increasing the count of Investor Service Centers to 10 along with 140 Official Points of Acceptance.
Investor Education
Activity
During the year, the AMC carried out various investor education programs across the country. These programs helped the existing and prospective investors in breaking myths and barriers about mutual fund products as an investment option and also in understanding various mutual fund concepts like Systematic Investment Plan (SIP), asset allocation etc.
New Initiatives:
In order to leapfrog into Indias digital future and provide value accretive services to all our stake holders (distributors, investors and sales team) we have during the year launched a number of digital initiatives. These include:
Investor E-on boarding: Paper free process, instant Folio creation and immediate transactions. New Individual investor who is KRA compliant can avail this facility & instantly create a folio online in a few steps. Following this, the investor can immediately make a purchase in our funds.
Transactions under Direct plan: SEBI registered Investment Advisors (RIAs) can now push investor transactions under direct plans of any scheme (s). While no brokerage will be accrued for these transactions, reverse transaction feed will be provided to the respective investment advisors.
E-KYC: Investor can input all information and documents online which will then be reviewed by the KRA to verify/reject the KYC. Investor can invest in MF without any pre-set limit.
iSIP: This facility is available for all the existing investors in the open ended schemes. It provides investors the ability to set up an SIP without having to complete any physical form or paper
BNPP Mobile App: now investors can conduct paperless transactions at no additional cost via our mobile App.
Paperless Transactions for Online Channel Partners: Facilitating paper less transactions for Channel partner (s) by accepting investor KRA form (s), which will be provided by respective Channel partner (s) along with investor signature and other required documents.
Now Bank mandates can be updated for ongoing SIPs.
Commencement of transactions on MF Utility platform: They are now a participating AMC on the MF Utility platform. The Distributor/ RIA can transact through one form across participating AMCs (27 AMCs currently) on behalf of their investors.
Business Intelligence Tool has been developed to ensure greater efficiency by way of enhanced reporting covering different data points for Management Team.
Future Plans
The year 2017 will herald a new era of digitization and accelerated growth for the mutual fund industry. To partake in this growth they will have to be more innovative, dynamic and nimble.
They intend to participate on CAMS mobile platform, which will help increase their footprint whereby investor can subscribe to their funds. Product distribution will continue to be their main priority. Their focus will be on leveraging technology to reach out to their target audience, in the most efficient and cost effective manner. Their continuous efforts to have best performing products for their investors and superior service standards for both investors and distributors are ongoing and will continue.
INDEX
OF CHARGES: NO CHARGES EXIST FOR THE COMPANY
FIXED ASSETS
- Furniture and fixtures
- Office equipment
- Computer equipments
- Leasehold improvements
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
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Currency |
Unit
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INR |
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US Dollar |
1 |
INR 65.22 |
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1 |
INR 92.77 |
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Euro |
1 |
INR 80.34 |
INFORMATION DETAILS
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Information
Gathered by : |
SLK |
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Analysis Done by
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VIV |
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Report Prepared
by : |
SUJ |
SCORE FACTORS
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
YES |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at your
request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.