JM Financial Limited · NSE:JMFINANCIL
JM Financial — JM Financial Asset Reconstruction Company — Investor Presentation (October 2020)
17 slides from JM Financial's investor presentation, October 2020
Slide 1: JM Financial Asset Reconstruction Company Limited (JMFARC) Corporate Presentation
JM Financial Asset Reconstruction Company Limited (JMFARC) Corporate Presentation October 2020
Slide 2: Safe Harbour
Safe Harbour This presentation and the following discussion may contain “forward looking statements” by JM Financial Asset Reconstruction Company Limited (“JMFARC”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operati
Slide 3: Business Highlights
Business Highlights • JMFARC is the 3rd largest capitalised ARC^ with net worth of Rs. 1,471 Crore (as on September 30, 2020) Strong Balance Sheet • JM Financial Ltd (JMFL) is the holding company with 59.25% holding, balance equity held by Banks, HNIs & FII • JMFARC has raised capital twice in the l
Slide 4: JMFARC Overview
JMFARC Overview Aim FINANCIAL
Slide 5: Summary of Assets Acquired & Outstanding
Summary of Assets Acquired & Outstanding as on September 30, 2020 Assets Acquired (Gross) & Security Receipts Outstanding • Acquired financial assets of Rs. 60,401 Crore (Total dues) • Total Acquisition Cost Rs. 17,079 Crore, acquired in 181 trusts from 78 Banks/FIs/NBFCs • Contribution by JMFARC in
Slide 6: Resolution and Recoveries
Resolution and Recoveries Cumulative recovery till September 30, 2020 • Capital / Business restructuring as required Rs. 8,748 Crore • Right sizing of Debt • Conversion of Debt to Equity Resolution NCLT • Additional priority financing for Working Capital / Growth Capital Strategy 1% Possession & • S
Slide 7: Accounting for JMFARC
Accounting for JMFARC Accounting • Accounting within the framework of IND AS issued by MCA Framework • Main items of revenue - Management Fees, Interest and Upside (grouped under Fair Value Gains/Losses) • The recognition of revenue is as per the terms of the contract of specific trusts Revenue Reco
Slide 8: JMFARC Financial Performance
JMFARC Financial Performance Last 7 years trend Total Income AUM (Rs Crore) (Rs Crore) 600 560 16,000 14,044 12,965 500 11,874 414 11,489 11,429 387 12,000 400 9,821 319 8,398 300 8,000 214 224 183 200 3,646 120 4,000 100 0 0 2014 2015 2016 2017 2018 2019 2020 H1 2021 2014 2015 2016 2017 2018 2019 2
Slide 9: JMFARC Financial Performance
JMFARC Financial Performance Last 7 years Trend Networth Total Borrowings (Rs Crore) (Rs Crore) 1,600 1,450 1,471 3,000 1,400 1,265 2,440 2,445 2,500 2,317 1,200 967 2,000 1,000 800 1,500 1,351 580 1,130 1,163 600 525 417 1,000 765 400 330 500 346 200 0 0 2014 2015 2016 2017 2018 2019 2020 H1 2021 2
Slide 10: Liability Profile and Credit Rating
Liability Profile and Credit Rating Credit Rating ICRA & CRISIL AA- (Stable) Bank Loan of Rs. 700 Crore (ICRA rating is for bank limits of Rs 500 crore & CRISIL Rating for Rs 200 crore) ICRA & CRISIL AA- (Stable) Non Convertible Debentures of Rs. 2,215 Crore (ICRA rating is for NCD of Rs 1415 crore
Slide 11: Select Case Studies – Closed/Exited Accounts
Annexure 1 Select Case Studies – Closed/Exited Accounts 10
Slide 12: Select Case Studies
Select Case Studies Project Resin Project Retail Company • Engaged in manufacturing and trading of resins • Acquisition of 3.76 lakh Personal Loan & Credit Cards accounts spread across 24 Background • Non-operational unit locations • Price expectation mismatch between bank and JMFARC for • Establish
Slide 13: Select Case Studies (cont’d)
Select Case Studies (cont’d) Project Poultry Project Paint • Integrated poultry breeder located in Western India • Promoter having more than 45 years of experience in the • Engaged in manufacturing of paints Company business • Plants located at Rajasthan, Maharashtra & Tamil Nadu and windmills at Sa
Slide 14: Select Case Studies (cont’d)
Select Case Studies (cont’d) Project Metal Project Real Estate • Operating in a niche industry - Engaged in production of minor metal oxides which are used for making carbide grade tool • Engaged in the development of Real Estate Projects. Company steel, electronic and optical applications Backgroun
Slide 15: Corporate Details
Annexure 2 Corporate Details 14
Slide 16: Shareholders, Board of Directors & Management
Shareholders, Board of Directors & Management Board of Directors Mr. V. P. Shetty Chairman Public sector Banks* Mr. Narotam Sekhsaria Sponsor Director 12.33% Mr. Pulkit Sekhsaria Sponsor Director Valiant Mauritius Partners FDI Ms. Rupa Vora Independent Director Limited 8.42% Mr. Adi Patel Sponsor Di
Slide 17: Profile of Board of Directors
Profile of Board of Directors • Founder-Promoter and Chairman of Ambuja Cements Ltd and ACC Ltd. • Banking experience of 40 years. • Instrumental in two of the largest model cement sector turnarounds – • Ex - CMD of UCO Bank, Canara Bank and IDBI Bank. Modi Cements & DLF Cement Ltd. • Recipient of "
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