|
|
|
%20PRIVATE%20LIMITED%20-%20494590%2028-Feb-2018_files/image002.jpg){kind=small}
%20PRIVATE%20LIMITED%20-%20494590%2028-Feb-2018_files/image004.jpg)
%20PRIVATE%20LIMITED%20-%20494590%2028-Feb-2018_files/image006.gif)
MIRA
INFORM REPORT
|
Report No. : |
494590 |
|
Report Date : |
28.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PRIVATE LIMITED (w.e.f.
15.03.2004) |
|
|
|
|
Formerly Known
As : |
TEMPLETON ASSET MANAGEMENT (INDIA) PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Indiabulls Finance Centre, Tower 2,12th and 13th Floor,
Senapati Bapat Marg, Elphinstone (West), Mumbai-400013, Maharashtra |
|
Tel. No.: |
91-22-67519100 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
30.09.2016 |
|
|
|
|
Date of
Incorporation : |
06.10.1995 |
|
|
|
|
Com. Reg. No.: |
11-093356 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 2393.333 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U67190MH1995PTC093356 |
|
|
|
|
IEC No.: [Import-Export Code No.] |
Not Divulged |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT1609B |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Divulged |
|
|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
27AAACT1609B1ZW |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the business of providing investment management and related services. (Registered Activity) |
|
|
|
|
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 |
|
Maximum Credit Limit : |
USD 27400000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Franklin Templeton Asset Management (India) Private Limited operates as a step down subsidiary of ‘Franklin Resources, Inc.’, a global investment management organization. It was incorporated in the year 1995 and is engaged in the business of providing investment management and related services. As per the financial records of 2016, the company has achieved revenue growth of 9.38% as compared to the previous year along with a decent profit margin of 46.93%. The sound financial risk profile of the company is marked by healthy net worth base, decent liquidity position and strong debt protection metrics. Moreover, rating also takes into account the strong support that the subject receives from its holding company, its extensive global presence in different countries along with reputed client base across the world. Payments seems to be regular and as per the commitments. In view of good financial position and strong managerial and technical support from its holding company, the subject can be considered for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Templeton India Treasury Management Account : A1+ |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
02.06.2017 |
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
31-03-2016.
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 28.02.2018
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 DECLINED
Management non-cooperative (Tel No.: 91-22-67519100)
LOCATIONS
|
Registered Office : |
Indiabulls Finance Centre, Tower 2,12th and 13th Floor,
Senapati Bapat Marg, Elphinstone (West), Mumbai-400013, Maharashtra, India |
|
Tel. No.: |
91-22-67519100 |
|
Fax No.: |
91-22-66391282 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Sales Office : |
Maker Chamber VI 3rd Floor, Office No. 37, Nariman Point, Mumbai-400021, Maharashtra, India |
|
Tel. No.: |
91-22-66107777 |
DIRECTORS
As on 2017
|
Name : |
Mr. Sanjay Vishwanath Sapre |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Whole-Time Director |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
Flt 41/A, Embassy Apartments, 46 N S Road, M Hill, A K Marg,
Mumbai-400036, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
31.08.2016 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
PAN No.: |
AALPS5825N |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
01104702 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
Directorship :
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name : |
Mr. Jayaram Subramaniam |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Director |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
Flat No. 23, Tower 2, Godrej Garden Enclave Pirojsha Nagar, Vikhroli
(East), Mumbai – 400079, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Birth/Age : |
09.09.1966 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
12.09.2014 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
PAN No.: |
AAAPI2333L |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
01440502 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
Directorship :
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name : |
Mr. Deepak Madhav Satwalekar |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Director |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
9, Nutan Alka Co-operative Housing Society Limited, Relief Road,
Santacurz (West), Mumbai-400054, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Birth/Age : |
14.11.1948 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
06.10.1995 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
00009627 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
Directorship :
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name : |
Navroz Hormasji Seervai |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Director |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
8, Shiv Shanti Bhavan 146, M. Karve Marg Mumbai – 400020, Maharashtra,
India |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Birth/Age : |
22.02.1957 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
17.05.2003 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
00024144 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name : |
Mr. Bhaskara Nageshwara Rao Mandavilli |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Director |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
Flat No. A 906, Purva Heights, 14, Bannerghatta Road, Bilekahalli,
Bangalore –560076, Karnataka, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Birth/Age : |
19.06.1948 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
19.05.2009 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
00287260 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
Directorship :
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name : |
Mr. Vivek Kudva |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Director |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
Flat No. 202, 2nd Floor, Vishnu Villa 7B, Worli Sea Face, Worli,
Mumbai-400030, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
11.03.2017 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
0748582 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other
Directorship :
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
KEY EXECUTIVES
|
Name : |
Mr. Mahesh Kumar C M |
|
Designation : |
Company Secretary |
|
Address : |
23/2d, Kalpataru Riverside, Opposite Panchmukhi Hanuman
Temple, Takka, Panvel, Mumbai – 410206, Maharashtra, India |
|
Date of Birth/Age : |
19.04.1978 |
|
Date of Appointment : |
18.11.2013 |
|
PAN No.: |
AGZPM5722G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2016
|
Names of Shareholders |
|
No. of Shares |
|
Franklin Templeton Holding Limited, India |
|
239333296 |
|
Vivek Kudva* |
|
4 |
|
Total |
|
239333300 |
*Nominee shareholder, beneficial interest is with Franklin Templeton Holding Limited, Mauritius
Equity Share Break up (Percentage of Total Equity)
As on 10.03.2017
|
Category |
Percentage |
|
Promoters (Body corporate) |
99.99999833 |
|
Public/Other than promoters (Individual/Hindu Undivided Family-Indian) |
0.00000167 |
|
Total |
100.00 |
%20PRIVATE%20LIMITED%20-%20494590%2028-Feb-2018_files/image008.gif)
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of providing investment management and related services. (Registered Activity) |
||||
|
|
|
||||
|
Products/
Services : |
|
||||
|
|
|
||||
|
Brand Names : |
Not Available |
||||
|
|
|
||||
|
Agencies Held : |
Not Available |
||||
|
|
|
||||
|
Exports : |
Not Divulged |
||||
|
|
|
||||
|
Imports : |
Not Divulged |
||||
|
|
|
||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Customers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
No. of Employees : |
Information declined by the management |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Facilities : |
|
|
Auditors : |
|
|
Name : |
Price Waterhouse LLP Chartered Accountants |
|
Address : |
252, Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAFFP3698A |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Holding company : |
Franklin Templeton Holding Limited, Mauritius |
|
|
|
|
Ultimate Holding
company : |
Franklin Resources Inc., USA |
|
|
|
|
Subsidiary company
: |
ITI Capital Markets Limited CIN No.: U65991TN1993PLC024429 |
|
|
|
|
Fellow Subsidiary
companies : |
· Franklin Templeton International Services (India) Private Limited · Franklin Templeton Trustee Services Private Limited · Darby Asia Investors (India) Private Limited · Franklin Templeton Services (India) Private Limited · Franklin Templeton Companies, LLC, USA · Franklin Templeton Services, LLC, USA · Templeton Asset Management Limited, Singapore · Franklin Templeton Capital Holdings Private Limited, Singapore · Franklin Advisers, Inc., USA · Franklin Templeton Investment Management (ME) Limited, Dubai |
|
|
|
|
Others (Mutual Fund
managed by the Company) |
Franklin Templeton Mutual Fund |
CAPITAL STRUCTURE
As on 10.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
245000000 |
Equity Shares |
INR 10/- each |
INR 2450.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
239333300 |
Equity Shares |
INR 10/- each |
INR 2393.333
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.09.2016 |
30.09.2015 |
30.09.2014 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2393.333 |
2393.333 |
2393.333 |
|
(b) Reserves and Surplus |
7197.783 |
3834.832 |
4678.569 |
|
(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) |
9591.116 |
6228.165 |
7071.902 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
18.637 |
15.562 |
12.249 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long-term
liabilities |
39.076 |
42.646 |
45.515 |
|
(d) long-term
provisions |
78.180 |
80.729 |
65.030 |
|
Total Non-current
Liabilities (3) |
135.893 |
138.937 |
122.794 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short-term
borrowings |
3500.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
204.320 |
160.305 |
97.363 |
|
(c) Other
current liabilities |
730.867 |
3864.757 |
911.402 |
|
(d) Short-term
provisions |
10.758 |
92.025 |
9.177 |
|
Total Current
Liabilities (4) |
4445.945 |
4117.087 |
1017.942 |
|
|
|
|
|
|
TOTAL |
14172.954 |
10484.189 |
8212.638 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
254.875 |
261.204 |
238.839 |
|
(ii)
Intangible Assets |
2.063 |
2.559 |
3.909 |
|
(iii) Tangible assets
capital work-in-progress |
2.542 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
178.346 |
190.004 |
16.733 |
|
(c) Deferred tax assets (net) |
658.783 |
251.851 |
279.109 |
|
(d)
Long-term loans and advances |
95.907 |
135.128 |
117.966 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1192.516 |
840.746 |
656.556 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current investments |
12373.651 |
8669.840 |
6709.564 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
106.184 |
661.235 |
608.978 |
|
(d) Cash and bank balances |
382.849 |
279.837 |
131.724 |
|
(e) Short-term loans and advances |
110.974 |
32.367 |
105.530 |
|
(f) Other current assets |
6.780 |
0.164 |
0.286 |
|
Total
Current Assets |
12980.438 |
9643.443 |
7556.082 |
|
|
|
|
|
|
TOTAL |
14172.954 |
10484.189 |
8212.638 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
30.09.2016 |
30.09.2015 |
30.09.2014 |
|
|
SALES |
|
|
|
|
|
Revenue
from operations |
7166.209 |
6551.704 |
4597.828 |
|
|
Other Income |
1568.315 |
416.415 |
1217.757 |
|
|
TOTAL |
8734.524 |
6968.119 |
5815.585 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
0.000 |
0.000 |
0.000 |
|
|
Employee benefit expense |
1353.161 |
1357.047 |
1349.581 |
|
|
CSR expenditure |
56.886 |
26.836 |
0.000 |
|
|
Other expenses |
1669.379 |
2145.522 |
1007.065 |
|
|
Extraordinary items |
616.996 |
0.000 |
0.000 |
|
|
TOTAL |
3696.422 |
3529.405 |
2356.646 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
5038.102 |
3438.714 |
3458.939 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
12.148 |
4.656 |
4.442 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
5025.954 |
3434.058 |
3454.497 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
97.586 |
92.110 |
87.675 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
4928.368 |
3341.948 |
3366.822 |
|
|
|
|
|
|
|
Less |
TAX |
1565.417 |
1018.458 |
738.614 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
3362.951 |
2323.490 |
2628.208 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
14.05 |
9.71 |
10.98 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
30.09.2016 |
30.09.2015 |
30.09.2014 |
|
Current Maturities of Long term debt |
7.955 |
5.585 |
NA |
|
Net cash flows from (used in) operations |
4679.660 |
2873.491 |
2384.266 |
|
Net cash flows from (used in) operating activities |
2597.053 |
2009.432 |
1614.068 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
30.09.2016 |
30.09.2015 |
30.09.2014 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
5.41 |
36.84 |
48.34 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
67.49 |
9.91 |
7.55 |
|
|
|
|
|
|
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) |
19.42 |
13.04 |
14.25 |
LEVERAGE RATIOS
|
PARTICULARS |
30.09.2016 |
30.09.2015 |
30.09.2014 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.32 |
0.39 |
0.13 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.37 |
0.00 |
0.00 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities
/ Net Worth) |
0.46 |
0.66 |
0.14 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.03 |
0.04 |
0.03 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
414.73 |
738.56 |
778.69 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
30.09.2016 |
30.09.2015 |
30.09.2014 |
|
Net Profit Margin ((PAT
/ Sales) * 100) |
% |
46.93 |
35.46 |
57.16 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
23.73 |
22.16 |
32.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
35.06 |
37.31 |
37.16 |
SOLVENCY RATIOS
|
PARTICULARS |
30.09.2016 |
30.09.2015 |
30.09.2014 |
|
Current Ratio (Current Assets / Current Liabilities) |
2.92 |
2.34 |
7.42 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
2.92 |
2.34 |
7.42 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.68 |
0.59 |
0.86 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
1.47 |
0.01 |
0.01 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
2.92 |
2.34 |
7.42 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particular |
30.09.2014 |
30.09.2015 |
30.09.2016 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
2393.333 |
2393.333 |
2393.333 |
|
Reserves & Surplus |
4678.569 |
3834.832 |
7197.783 |
|
Net
worth |
7071.902 |
6228.165 |
9591.116 |
|
|
|
|
|
|
long-term borrowings |
12.249 |
15.562 |
18.637 |
|
Short term borrowings |
0.000 |
0.000 |
3500.000 |
|
Total
borrowings |
12.249 |
15.562 |
3518.637 |
|
Debt/Equity
ratio |
0.002 |
0.002 |
0.367 |
%20PRIVATE%20LIMITED%20-%20494590%2028-Feb-2018_files/image010.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
30.09.2014 |
30.09.2015 |
30.09.2016 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
4597.828 |
6551.704 |
7166.209 |
|
|
|
42.496 |
9.379 |
%20PRIVATE%20LIMITED%20-%20494590%2028-Feb-2018_files/image012.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
30.09.2014 |
30.09.2015 |
30.09.2016 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
4597.828 |
6551.704 |
7166.209 |
|
Profit |
2628.208 |
2323.490 |
3362.951 |
|
|
57.16% |
35.46% |
46.93% |
%20PRIVATE%20LIMITED%20-%20494590%2028-Feb-2018_files/image014.gif)
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 |
No |
|
8] |
Designation of contact person |
No |
|
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 |
No |
|
17] |
Details of sister concerns |
Yes |
|
18] |
Major suppliers |
No |
|
19] |
Major customers |
No |
|
20] |
Banking Details |
No |
|
21] |
Banking facility details |
Yes |
|
22] |
Conduct of the banking account |
-- |
|
23] |
Financials, if provided |
Yes |
|
24] |
Capital in the business |
Yes |
|
25] |
Last accounts filed at ROC, if applicable |
Yes |
|
26] |
Turnover of firm for last three years |
Yes |
|
27] |
Reasons for variation <> 20% |
-- |
|
28] |
Estimation for coming financial year |
No |
|
29] |
Profitability for last three years |
Yes |
|
30] |
Major shareholders, if available |
Yes |
|
31] |
External Agency Rating, if available |
Yes |
|
32] |
Litigations that the firm/promoter
involved in |
-- |
|
33] |
Market information |
-- |
|
34] |
Payments terms |
No |
|
35] |
Negative Reporting by Auditors in the
Annual Report |
No |
GENERAL INFORMATION
The Company has been incorporated in India under the Companies Act, 1956 (the “Act”) as a private company limited by shares. The Company is engaged in the business of providing investment management and related services. The Company is the investment manager to the schemes of Franklin Templeton Mutual Fund ('the Fund') and also provides transfer agency services to the schemes of the Fund. The Company is a wholly-owned subsidiary of Franklin Templeton Holding Limited, Mauritius, a wholly owned subsidiary of the ultimate parent company, Franklin Resources, Inc. (FRI).
UNSECURED LOAN
|
PARTICULARS |
30.09.2016 (INR
in Million) |
30.09.2015 (INR
in Million) |
|
Short-term
borrowings |
|
|
|
Rupee term loans from banks |
3500.000 |
0.000 |
|
Total |
3500.000 |
0.000 |
INDEX OF CHARGES: NO CHARGES EXISTS FOR COMPANY
FIXED ASSETS
- Land
- Buildings
- Furniture and fixtures
- Vehicles
- Office equipment
- Leasehold improvements
- Computer equipments
WEBSITE DETAILS
NEWS/ PRESS RELEASES
MYSTERY BUYER OF
TROUBLED JSPL PAPERS FROM FRANKLIN TEMPLETON SCHEMES
May 12 2017
Franklin Templeton
India AMC bought the JSPL debt papers, after they were downgraded a second
time, from its own debt schemes in 2016
Franklin Templeton Asset Management (India) Pvt. Ltd last year bought its own debt schemes’ entire holding of Jindal Steel and Power Ltd (JSPL) debt securities, after two downgrades of JSPL debt papers, according to the AMC’s latest annual report.
At the time, there was mystery as to who the buyer was as the JSPL debt papers, it appeared, were bought at a discount, after the second downgrade.
According to Franklin Templeton AMC’s annual report for the year ending September 2016 (October to September calendar), the AMC bought over JSPL’s papers from the debt schemes of Templeton.
When the price of a debt security falls, the net asset value (NAV) of the debt scheme that holds it also goes down.
This is not new in the Indian mutual funds industry. When an underlying scrip of a debt fund defaults—or looks like it might—on its interests and/or principal payments, the AMC buys it from the scheme. But why did Franklin Templeton AMC buy the JSPL debt papers at a discount?
How it unfolded
On 15 February 2016, Crisil downgraded JSPL’s debt rating to BB+/A4+, from BBB+/A3+. This meant that the debt paper fell below investment grade. “Continuous efforts were being made to look for a buyer at all stages in the transaction,” said a Franklin Templeton spokesperson.
Franklin Templeton AMC then decided to buy these debt papers. On 29 February, it bought the first tranche of the troubled scrip at a discount of 25% of face value. On 9 March, Crisil again downgraded JSPL debt papers to a “D” rating.
Immediately, the fund house’s valuation committee decided to re-value the debt paper “to reflect the latest downgrade in the credit rating, considering that there was no price available from an external agency for the same”, said the spokesperson.
Valuing debt securities is tricky and not as straightforward as valuing equity securities, that are traded and prices are available on the stock exchanges. The debt market is highly illiquid and trades take place off-market. But debt securities must be valued on a daily basis to arrive at a scheme’s NAV. Therefore, capital markets regulator Securities and Exchange Board of India (Sebi) has laid down that fund houses must value their securities fairly. But since two debt fund’s fair price for the same scrip could be different, industry lobby Association of Mutual Funds of India (Amfi) has mandated rating agencies Crisil Ltd and Icra Ltd to issue the prices of all debt securities that all fund houses own, daily. The rating agencies, though, don’t give out any guidance for ‘D’ rated securities. In such situations where the price is not available from an external agency, the AMC applies fair valuation principles as per its own valuation policy and Sebi’s regulations.
In this case, Franklin Templeton’s valuation committee decided to re-value the security at a further 10% mark-down. The paper was now valued at 67.5% of the face value. On 10 March, the AMC itself bought the final tranche at 67.5% of the face value.
“Franklin Templeton AMC was the counterparty for JSPL securities transactions in February and March 2016. The transactions were effected keeping in mind the interest of unitholders and the challenges that could be faced while holding non-investment grade securities in an open end fund structure,” said the Franklin Templeton spokesperson.
The question is: if the fund house was going to buy the bad security from the scheme, why did it allow the scheme to mark it down by a further 10%? The mark-down meant that the scheme realised 67.5% of the bond’s face value, instead of 75%. That was a loss to the scheme, and thereby its investors.
Holding a security that is rated “default” or “D” can be hazardous for a fund house as it could trigger further redemptions and the fund manager could be compelled to sell other, albeit, better securities to meet the redemption pressure. “FT purchased JSPL securities in two tranches due to the size of the transaction. The first tranche was purchased on 29 February 2016 when the security was rated BB+ which is below investment grade. However, we had to arrange for funding to purchase the balance, which took normal procedural time. The second tranche was therefore purchased on 10 March 2016. In the interim, the rating agency downgraded JSPL’s long term debt rating from BB+ to Default (D), which required fair valuation of these securities,” added the spokesperson.
But the question remains: If Templeton was in the process of buying out the security, the chances of it buying the remaining tranche were quite high. Why did it, then, re-value (or mark down) the security’s value and then bought it? Why did it play the role of the price setter as well as the buyer (at that same price)? It appears that the fund house bought the security at a discount. “The securities were valued in accordance with regulations and fair valuation principles and were purchased by Franklin Templeton at the price at which they were held in the funds,” said the Franklin Templeton spokesperson
Back of the envelope calculations show that the schemes suffered a loss of about Rs365.51 crore on account of the fall in scrip prices due to downgrades.
What about future gains?
“The fund house may have ticked all the boxes but this episode raises corporate governance standards. If a security goes bad, the fund house should try its best to recover money. Elsewhere, lenders have gone to the court to recover their money. But calling it fair valuation practice, marking down the price of the security and the fund house buying it and investors not even informed about… it doesn’t look a proper way of doing things,” said a chief executive officer of a large fund house, who did not want to be named.
“In this situation, when there is no benchmark for valuing a D-rated security, the fallback is at what rate an asset reconstruction company or stressed asset specialist would buy it. Negotiations would have taken time and the AMC just got it off their back as it was impacting their goodwill,” says Joydeep Sen, managing partner, Sen & Apte Consulting Services LLP, a wealth management firm that specializes in mutual funds and bonds.
What if Franklin Templeton recovers the money later? As things stand today, Franklin Templeton AMC still holds the bad paper in its own books. The fund house told us it further provided for a reduction of INR 1120.000 Million in the values of these securities after it had taken them over from the debt schemes. These debt papers will mature between 2018 and 2021. If JSPL’s fortunes recover and it starts paying interest, will the fund house transfer the gains back to the schemes and compensate the investor?
In an interview published in The Economic Times on 10 May, Ravi Uppal, managing director, JSPL said, “…since we are not going to have any more capex (capital expenditure), whatever organic earnings we have are going to be used to pay back loans. We never allowed our company to become a non-performing asset (NPA). Banks are getting more confident of lending to us as they have seen how we turned around in Q3 (third quarter of September-December 2016).”
“For a default rated security, if the mutual fund realises 67.5% of its face value, it’s not a bad deal for the mutual fund scheme. But if the fund house recovers money later, will it return back to the investors? That remains to be seen,” says Sen.
When contacted, Franklin Templeton refused to comment.
The Indian mutual fund industry has seen many instances about fund houses taking over bad paper—and losses—on their books. Franklin Templeton AMC too has done the same. But the second (10%) mark-down, even in the name of fair valuation, sounds a bit unfortunate given that it knew that it was in the middle of buying out the entire stock of JSPL from the mutual fund schemes.
Also, what remains a mystery is why the AMC didn’t disclose to the unitholders that it bought over the papers and the process it followed to mark the same down.
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 records 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
|
INR |
|
US Dollar |
1 |
INR 64.85 |
|
UK Pound |
1 |
INR 79.97 |
|
Euro |
1 |
INR 90.58 |
INFORMATION DETAILS
|
Information
Gathered by : |
SUV |
|
|
|
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE FACTORS
|
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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.