|
|
|
MIRA INFORM REPORT
|
Report No. : |
487677 |
|
Report Date : |
23.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE ASSET RECONSTRUCTION COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Reliance Centre, North Wing, 6th Floor, Near Prabhat
Colony, Off Western Express Highway, Santacruz, Mumbai – 400055, Maharashtra |
|
Tel. No.: |
91-22-33031000 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
17.04.2006 |
|
|
|
|
Com. Reg. No.: |
11-161190 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 1000.000 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U45200MH2006PLC161190 |
|
|
|
|
IEC No.: |
Not Divulged |
|
|
|
|
GSTIN: |
Not Divulged |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR20971G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCR3968G |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is in the Business of Acquisition and Resolution
of Non-Performing Assets. (Registered Activity) |
|
|
|
|
No. of Employees
: |
Information denied 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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Reliance Asset Reconstruction Company Limited was incorporated in the year
2006. “Reliance Capital Limited holds 49% stakes in the company. Reliance
Capital Limited (RCL) is a part of the “Reliance ADA Group.” For the financial year 2017, the revenue of the company has increased
by 28.59% along with fair profit margin of 24.385 million. The moderate financial profile of the company is marked by low reserve
base and unfavourable gap between trade payables and trade receivables along
with negligible debt level. However, rating takes into consideration strong financial and managerial
support that company receives from its major shareholder backed by its well
experienced management team. Business is active. Payments are reported to be slow but correct. In view of aforesaid, the company can be considered 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 Debt Programme (A+) |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
01.06.2017 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Bank Lines (A1+) |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
01.06.2017 |
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 23.01.2018
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
Management non-cooperative (Tel No.: 91-22-33031000)
Given Number 91-22-30479306 (Not Working)
LOCATIONS
|
Registered Office/ Corporate Office : |
Reliance Centre, North Wing, 6th Floor, Near Prabhat
Colony, Off Western Express Highway, Santacruz, Mumbai – 400055, Maharashtra,
India |
|
Tel. No.: |
91-22-33031000 |
|
Fax No.: |
91-22-30479868/ 30762525 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Mumbai Office : |
570, Rectifier House, 2nd Floor, Naigaum Cross Road, Near Royal
Industrial Estate, Wadala (West), Mumbai – 400031, Maharashtra, India |
|
Tel. No.: |
91-22-30479256 |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Sujal Anil Shah |
|
Designation : |
Director |
|
Address : |
701, 7th Floor, Mayfair Kumkum Co-Operative Housing Society Limited, CTS No. 772, S V, Andheri (West), Mumbai – 400058, Maharashtra, India |
|
Date of Birth/Age : |
23.09.1968 |
|
Qualification: |
CA |
|
Date of Appointment : |
31.10.2006 |
|
PAN No.: |
AAIPS9182P |
|
DIN No.: |
00058019 |
|
|
|
|
Name : |
Mrs. Deena Asit Mehta |
|
Designation : |
Director |
|
Address : |
17-A, Abhilasha Building, August Kranti Marg, Mumbai – 400036, Maharashtra, India |
|
Date of Birth/Age : |
18.02.1961 |
|
Qualification: |
CA |
|
Date of Appointment : |
01.08.2014 |
|
PAN No.: |
AABPM6683L |
|
DIN No.: |
00168992 |
|
|
|
|
Name : |
Ms. Radha Binod Barman |
|
Designation : |
Director |
|
Address : |
A/1/1006, Rishi Garden, Film City Road, Malad (East), Mumbai – 400 097, Maharashtra, India |
|
Date of Birth/Age : |
01.08.1948 |
|
Qualification: |
Doctorate degree in Economics from IIT Bombay, Master's degree in Statistics & CFA |
|
Date of Appointment : |
15.05.2013 |
|
PAN No.: |
ACLPB8677K |
|
DIN No.: |
02612871 |
|
|
|
|
Name : |
Mr. Shrikant Shankar Rege |
|
Designation : |
Director |
|
Address : |
R-402, F-4, WP 845/848, Raheja Princess, Agar Bazar Road, Ahadur Bander SK Bole Road, Dadar (West), Mumbai – 400 028, , Maharashtra, India |
|
Date of Birth/Age : |
15.121956 |
|
Qualification: |
B.Com, LLB, Diploma in Financial Management, CA, CS, and CAIIB |
|
Date of Appointment : |
11.07.2013 |
|
PAN No.: |
AABPR3395Q |
|
DIN No.: |
06554826 |
|
|
|
|
Name : |
Mr. Udupi Chandrakantha Nayak |
|
Designation : |
Nominee Director |
|
Address : |
Corporation Bank, SCO - 16, 1st Floor Sector 32 - A, Focal Point, Ludhiana – 141010, Punjab, India |
|
Date of Birth/Age : |
17.01.1959 |
|
Qualification: |
B.Com, LLB and CAIIB |
|
Date of Appointment : |
01.02.2016 |
|
PAN No.: |
AATPN0179N |
|
DIN No.: |
07422169 |
|
|
|
|
Name : |
Mr. Ramu Alagappan |
|
Designation : |
Nominee Director |
|
Address : |
Flat No.112, Casablanca Flats, Cuffe Parade, Mumbai-400005, Maharashtra, India |
|
Date of Appointment : |
13.11.2017 |
|
DIN No.: |
07912624 |
KEY EXECUTIVES
|
Name : |
Ms. Preeti Chhapru |
|
Designation : |
Company Secretary |
|
Address : |
201, Beena Apartment, Near Bhagwati APT, Behind Sona MKT, Ulhasnagar, Mumbai – 421002, Maharashtra, India |
|
Date of Birth: |
19.02.1984 |
|
Date of Appointment : |
16.04.2016 |
|
PAN No.: |
AKUPC5659F |
|
|
|
|
Name : |
Mehul Mansukhlal Gandhi |
|
Designation : |
Chief Finance Officer |
|
Address : |
B/603, Gokul, Sai Baba Nagar, Opposite Dev Nagar, Kandivili, Mumbai-400067, Maharashtra, India |
|
Date of Appointment : |
21.04.2017 |
|
PAN No.: |
AHBPG9254G |
|
|
|
|
Name : |
Mr. Aashish K. Bhatt and Associates |
|
Designation : |
Practicing Company Secretary |
|
Address : |
D-101, LAta Annexe, Above Axis Bank, Western Express Highway, Borivali (East), Mumbai – 400066, Maharashtra, India |
|
Mob. No: |
91-9867151081 |
|
Telefax. |
91-22-28461715 |
|
Email: |
|
|
PAN No: |
AKDPB0593Q |
|
Secretarial Audit
Firm No: |
S2008MH100200 |
MAJOR SHAREHOLDERS
As on 31.03.2017
|
Names of Shareholders |
|
No. of Shares |
|
Blue Ridge Limited, Newyork |
|
5890000 |
|
Blue Ridge Offshore Master Limited, Newyork |
|
3610000 |
|
Reliance Capital Limited, India |
|
48964000 |
|
General Insurance Corporation of India |
|
9000000 |
|
Corporation Bank |
|
11500000 |
|
Indian Bank |
|
11500000 |
|
Reliance Capital Limited Jointly with Mohan Vellore |
|
7000 |
|
Dacecroft Limited, India |
|
9500000 |
|
Reliance Capital Limited Jointly with Yogesh Deshpande |
|
8000 |
|
Reliance Capital Limited Jointly with Madan Mohan Chaturvedi |
|
7000 |
|
Reliance Capital Limited Jointly with Parul Jain |
|
7000 |
|
Reliance Capital Limited Jointly with Atul Kumar Tandon |
|
7000 |
|
Total |
|
100000000 |
Equity Share Break up (Percentage of Total Equity)
As on 30.09.2017
|
Category |
Percentage |
|
Promoters (Body corporate) |
49.00 |
|
Public/Other than promoters (Insurance companies) |
9.00 |
|
Public/Other than promoters (Banks) |
23.00 |
|
Public/Other than promoters (Foreign institutional investors) |
19.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is in the Business of Acquisition and Resolution
of Non-Performing Assets. (Registered Activity) |
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Products/ Services : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information denied by the management |
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Bankers : |
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Facilities : |
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Auditors : |
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|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai, Maharastra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAEFP3641G |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
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|
|
|
Investor Company
(Significant Influence exists) |
Reliance Capital Limited, India (L65910MH1986PLC165645) |
|
|
|
|
Subsidiary of
Investor Company : |
|
|
|
|
|
Trust to which the
Company acts as trustee : |
|
CAPITAL STRUCTURE
As on 30.09.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
INR 10/- each |
INR 1500.000 Million |
|
10000000 |
Preference shares |
INR 10/- each |
INR 100.000 Million |
|
|
Total |
|
INR 1600.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
INR 10/- each |
INR 1000.000
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 |
1000.000 |
1000.000 |
1000.000 |
|
(b) Reserves and Surplus |
445.403 |
355.202 |
294.257 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
(d) Minority interest |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
1445.403 |
1355.202 |
1294.257 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
1000.000 |
250.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long-term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
2.697 |
1.134 |
2.348 |
|
Total Non-current Liabilities
(3) |
2.697 |
1001.134 |
252.348 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short-term
borrowings |
1445.472 |
0.000 |
133.831 |
|
(b) Trade
payables |
0.353 |
3.131 |
1.546 |
|
(c) Other
current liabilities |
104.748 |
117.820 |
124.121 |
|
(d) Short-term
provisions |
0.097 |
37.331 |
36.214 |
|
Total Current
Liabilities (4) |
1550.670 |
158.282 |
295.712 |
|
|
|
|
|
|
TOTAL |
2998.770 |
2514.618 |
1842.317 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
0.927 |
1.167 |
0.372 |
|
(ii)
Intangible Assets |
5.156 |
0.272 |
0.422 |
|
(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 |
2853.230 |
2250.366 |
1671.415 |
|
(c) Deferred tax assets (net) |
1.057 |
1.232 |
5.565 |
|
(d)
Long-term loans and advances |
17.300 |
3.727 |
118.901 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
2877.670 |
2256.764 |
1796.675 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
1.561 |
3.365 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade
receivables |
5.194 |
35.998 |
32.184 |
|
(d) Cash and
bank balances |
0.426 |
99.490 |
1.483 |
|
(e)
Short-term loans and advances |
5.148 |
10.468 |
8.609 |
|
(f) Other
current assets |
110.332 |
110.337 |
0.001 |
|
Total
Current Assets |
121.100 |
257.854 |
45.642 |
|
|
|
|
|
|
TOTAL |
2998.770 |
2514.618 |
1842.317 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Total
Revenue from operations |
369.948 |
287.683 |
196.094 |
|
|
Other Income |
7.934 |
20.399 |
9.818 |
|
|
TOTAL |
377.882 |
308.082 |
205.912 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Employee benefit expense |
64.831 |
50.150 |
34.959 |
|
|
CSR expenditure |
2.453 |
2.337 |
2.600 |
|
|
Other expenses |
46.109 |
34.644 |
29.506 |
|
|
TOTAL |
113.393 |
87.131 |
67.065 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
264.489 |
220.951 |
138.847 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
125.606 |
75.321 |
17.294 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
138.883 |
145.630 |
121.553 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
0.939 |
0.612 |
0.097 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX |
137.944 |
145.018 |
121.456 |
|
|
|
|
|
|
|
Less |
TAX |
47.743 |
47.966 |
41.389 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX |
90.201 |
97.052 |
80.067 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
0.902 |
0.971 |
0.500 |
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 |
277.621 |
195.744 |
814.115 |
|
|
|
|
|
|
Net cash flows from (used in) operating activities |
216.678 |
165.641 |
767.843 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days [Sundry Debtors / Income * 365] |
|
5.12 |
45.67 |
59.91 |
|
|
|
|
|
|
|
Account Receivables Turnover [Income / Sunday Debtors] |
|
71.23 |
7.99 |
6.09 |
|
|
|
|
|
|
|
Average Payment Days [Sundry Creditors /
Purchases * 365] |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Inventory Turnover [Operating Income /
Inventories] |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Asset Turnover [Operating Income / Net Fixed
Assets] |
|
43.48 |
153.54 |
174.87 |
LEVERAGE RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio [(Borrowing + Current Liabilities) / Total Assets] |
|
0.52 |
0.46 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Borrowings / NetWorth) |
|
1.00 |
0.74 |
0.30 |
|
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities
/ NetWorth) |
|
1.07 |
0.12 |
0.23 |
|
|
|
|
|
|
|
Fixed Assets to NetWorth (Net Fixed Assets /
NetWorth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Interest Coverage Ratio [PBIT / Financial
Charges] |
|
2.11 |
2.93 |
8.03 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin [(PAT / Sales) * 100] |
(%) |
24.38 |
33.74 |
40.83 |
|
|
|
|
|
|
|
Return on Total Assets [(PAT / Total Assets)
* 100] |
(%) |
3.01 |
3.86 |
4.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) [(PAT / NetWorth)
* 100] |
(%) |
6.24 |
7.16 |
6.19 |
SOLVENCY RATIO
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio [Current Assets / Current Liabilities] |
|
0.08 |
1.63 |
0.15 |
|
|
|
|
|
|
|
Quick Ratio [(Current Assets - Inventories)
/ Current Liabilities] |
|
0.08 |
1.63 |
0.15 |
|
|
|
|
|
|
|
G-Score Ratio Financial [NetWorth / Total
Assets] |
|
0.48 |
0.54 |
0.70 |
|
|
|
|
|
|
|
G-Score Ratio Debt [Debts / Equity Capital] |
|
1.45 |
1.00 |
0.38 |
|
|
|
|
|
|
|
G-Score Ratio Liquidity [Total Current
Assets / Total Current Liabilities] |
|
0.08 |
1.63 |
0.15 |
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 |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
Reserves & Surplus |
294.257 |
355.202 |
445.403 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
1294.257 |
1355.202 |
1445.403 |
|
|
|
|
|
|
Long-term borrowings |
250.000 |
1000.000 |
0.000 |
|
Short term borrowings |
133.831 |
0.000 |
1445.472 |
|
Current maturities of
long-term debts |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
383.831 |
1000.000 |
1445.472 |
|
Debt/Equity
ratio |
0.297 |
0.738 |
1.000 |
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 |
196.094 |
287.683 |
369.948 |
|
|
|
46.707 |
28.596 |
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 |
196.094 |
287.683 |
369.948 |
|
Profit/ (Loss) |
80.067 |
97.052 |
90.201 |
|
|
40.83
% |
33.74
% |
24.38
% |
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 |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last two/ three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
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 |
FINANCIAL PERFORMANCE
The Company’s Asset Under Management (AUM) as on March 31, 2017 increased to INR 18290.000 million from INR 14880.000 million in the previous year, increase of 22.92 per cent. The gross income of the Company for the financial year ended March 31, 2017 increased by 23 per cent to INR 377.900 million from INR 308.100 million in the previous year.
The net profit for the year decreased by 7 per cent to INR 90.201 million from INR 97.052 million in the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
MACROECONOMIC
OVERVIEW
Domestic macroeconomic conditions remain stable with significant moderation in inflation. Moreover, reduced policy uncertainty and legislative and tax reforms such as implementation of goods and services tax (GST) and enactment of bankruptcy laws are expected to reinforce the benefits from the strong macro fundamentals. The withdrawal of legal tender status of specified bank notes (SBNs) could potentially transform the domestic economy. While the overall risks to the corporate sector moderated in 2016-17, concerns remain over its recovery.
The banking stability indicator (BSI) shows that the risks to the banking sector remained elevated due to continuous deterioration in asset quality, low profitability and liquidity. The business growth of scheduled commercial banks (SCBs) remained subdued with public sector banks (PSBs) continuing to lag behind their private sector peers. System level profit after tax (PAT) contracted on year on year basis in the first half of 2016-17.
The GNPA (Gross Non-Performing Advances) ratio of SCBs increased to 9.1 per cent in September 2016 from 7.8 per cent in March 2017 pushing the overall stressed advances ratio to 12.3 per cent from 11.5 per cent.
The large borrowers registered significant deterioration in their asset quality.
The macro stress test shows that GNPA ratio of SCBs may increase further if macroeconomic conditions deteriorate sharply. The PSBs may record the highest GNPA ratio and lowest Capital to Risk-weighted Asset Ratio (CRAR) among bank-groups although the CRAR at the system as well as bank-group levels may remain above the required regulatory minimum.
Given the higher level of impairment, SCBs may remain risk averse in the near future as they focus on cleaning up their balance sheets and their capital positions may remain insufficient to support higher credit growth.
PSBs need to further increase their provisioning levels to meet the Expected Losses (ELs) arising from credit risk, under baseline and adverse macroeconomic risk scenarios.
On September 1, 2016, the Reserve Bank of India issued fresh Guidelines on Sale of Stressed Assets by Banks. The Reserve Bank of India, as part of the Framework for Revitalizing Distressed Assets in the Economy, had previously amended certain guidelines relating to sale of non-performing assets (NPAs) by banks to Securitization Companies (SCs)/ Reconstruction Companies (RCs).
The guidelines have been issued with a view to further strengthen bank ability to resolve their stressed assets effectively, and put in place an improved framework governing sale of such assets by banks to SCs/RCs/other banks/ Non-Banking Financial Companies /Financial Institutions etc.
The highlight of the Circular is RBI resolve to restrict the investment of banks in security receipts that are backed by their own stressed assets. If a bank has invested in more than 50% of security receipts created against the sale of its own stressed assets, it has to set aside more money as provisions. From financial year 2018-19, this threshold of 50% will be further reduced to 10%.
This would significantly reduce SR-based sales of bad loans. Banks will prefer cash deals since banks do not have an incentive of lowering provision requirements. Consequently, Sale of NPAs by Banks will be by way of cash deals and not SR deals.
The Government of India announced a Demonetization of INR 500 and INR 1000 notes on November 8, 2016. This led to a disruption in normal business operations for about 3 months. As a consequence, this also resulted in disruption in Loa
A collection of NPLs of the company, which has a larger exposure to the Retail segment was impacted in the last quarter of the Financial year.
UNSECURED LOAN
|
PARTICULARS |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Inter Corporate Loans |
0.000 |
1000.000 |
|
Short-term
borrowings |
|
|
|
Inter Corporate Loans |
1000.000 |
0.000 |
|
Total |
1000.000 |
1000.000 |
|
(I) The Company had availed Inter Corporate Loan from Reliance Nippon Life Asset Management Limited (RNLAM) (previously known Reliance Capital Asset Management Limited). During the current year, call option has been inserted on the entire term of facility agreement. Via addendum dated March 23, 2017 resulting the loan being classified under Short Term Borrowings. (II) The loan was availed for the purpose of acquisition of Non-Performing Assets (NPA) from Banks/Financial Institutions. Interest rate has been reduced from 12.50% to 12% for first tranche of disbursement amounting to INR 250.000 million effective February 11, 2017 and on balance loan of INR 750.000 million from March 01, 2017 |
||
INDEX
OF CHARGES
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
G32695041 |
100070611 |
Andhra Bank |
27/12/2016 |
- |
- |
750000000.0 |
9/15, Mama Paramanand Marg, Queens Road, Opera House, Mumbai-400004, Maharashtra, India |
|
2 |
G13044250 |
100052160 |
LAKSHMI VILAS BANK LIMITED |
14/09/2016 |
- |
- |
250000000.0 |
Bharat House, 104, B S Marg, Fort, MUMBAI-400001, Maharashtra, India |
|
3 |
G39723838 |
100034175 |
State Bank Of Travancore |
20/06/2016 |
- |
30/03/2017 |
250000000.0 |
CFB, 112-115, Tulsiani Chambers, West Wing, 1st, 212, Free Press Journal Marg, Nariman Point, Mumbai-400021, Maharashtra, India |
|
4 |
G03129368 |
10519362 |
ING VYSYA BANK LIMITED |
08/09/2014 |
- |
09/05/2016 |
500000000.0 |
22, M G ROAD, BANGALORE-560001, Karnataka, India |
|
5 |
C30055800 |
10228350 |
Indian Bank |
14/05/2010 |
- |
26/09/2014 |
1000000000.0 |
66, Rajaji Salai, Chennai-600001, Tamilnadu, India |
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Other money for which company is contingently liable |
16.408 |
14.263 |
FIXED ASSETS
Tangible Assets
- Furniture and Fixture
- Office equipment
- Computer equipments
- Computer Software
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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
|
INR |
|
US Dollar |
1 |
INR 63.89 |
|
|
1 |
INR 88.60 |
|
Euro |
1 |
INR 78.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
MTN |
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.