PROJECT NBFC’s AND MICROFINANCE
Submitted By, KEERTHANA MV T5 MBA A-29
KOTAK MAHINDRA PRIME LTD
Kotak Mahindra Prime Limited, a non-banking financial company, provides finance services for passenger cars and multi-utility vehicles to automotive manufacturers, dealers, and retail customers in India. The company operates through Vehicle Financing, Other Lending Activities, and Treasury and Investments segments. It finances new and used cars under retail loan, hire purchase, and lease contracts. The company also offers inventory and term funding to car dealers; and loans against securities, personal loans, corporate loans, and developer funding. In addition, it is involved in securitization and assignment transactions; purchase of non-performing assets; and provision of credit life and comprehensive car insurance services. Kotak Mahindra Prime Limited has a retail distribution network of approximately 79 branches, as well as a network of direct marketing associates, brokers, and agencies in 18 states in India. The company was formerly known as Kotak Mahindra Primus Limited and changed its name to Kotak Mahindra Prime Limited in December 2005. The company was incorporated in 1996 and is based in Mumbai, India. Kotak Mahindra Prime Limited is a subsidiary of Kotak Mahindra Bank Limited.
Our Vision The Global Indian Financial Services Brand.Our customers will enjoy the benefits of dealing with a global Indian brand that best understands their needs and delivers customised pragmatic solutions across multiple platforms. We are a world class Indian financial services group. Our technology and best practices are bench-marked along international lines while our understanding of customers will be uniquely Indian..We are more than a repository of our customers' savings. We, the group, are a single window to every financial service in a customer's universe. The Most Preferred Employer in Financial Services A culture of empowerment and a spirit of enterprise attracts bright minds with an entrepreneurial streak to join us and build long-term careers with us..Working with a home grown professionally managed company, which has benefited from partnerships with international leaders, gives our people a perspective that is universal as well as unique. The Most Trusted Financial Services Company We have created an ethos of trust across all our constituents. Adhering to high standards of compliance and corporate governance is an integral part of building trust. Value Creation
Value creation rather than size alone will be our business driver.
HISTORY The Company is a wholly owned subsidiary of the Kotak Group. The Company is primarily in the business of car financing that encompasses major portion of the Company’s assets The Kotak group is one of India’s leading banking and financial services organizations, with offerings across personal financial services; commercial banking; corporate and investment banking; stock broking; asset management and life insurance. The Company was incorporated on February 28, 1996 under the name and style of Komaf Auto Finance Private Limited. Subsequently, on 29th August 1996, the Company was converted into a Public Limited Company and the word “Private” was deleted from its corporate name w.e.f. 13th September 1996. The name of the Company was changed to Kotak Mahindra Primus Limited on October 17, 1996. The Company commenced operations on November 1, 1996. Initially, Kotak Mahindra Prime Limited (KMP) was a joint venture between Kotak Mahindra Bank Limited (KMB) (formerly Kotak Mahindra Finance Limited) holding 60% of the paid up equity share capital and Ford Credit International, Inc (FCII), U.S.A. holding 40% of the paid up equity share capital. On June 1, 2005, the two partners announced the realignment of their Joint Venture in India. Subsequent to the receipt of regulatory approvals, the 40% stake, earlier held by FCII, was acquired on October 4, 2005 by Kotak Mahindra Investments Limited (KMIL), a 100% subsidiary of KMB. Post the Joint Venture realignment the name of the Company was changed to Kotak Mahindra Prime Limited after getting necessary clearances from the Registrar of Companies on December 1, 2005. On January 30, 2006 the Company allotted equity shares to Kotak Mahindra Asset Management Company Limited on preferential allotment basis. Further in March 2007, Kotak Securities purchased Kotak Mahindra Investments Limited (KMIL) stake in KMP as a part of an internal financial restructuring. Further, on October 29, 2007, the Company allotted 2,54,900 equity shares to Kotak Securities Limited on preferential allotment basis. Further, on November 3, 2008 Kotak Securities Limited purchased an additional 1.1% stake in the company from Kotak Mahindra Asset Management Co Ltd., as on March 31, 2010, the company allotted 2,33,300 equity shares to Kotak Securities Limited on preferential allotment basis. The current shareholding composition is as follows: Kotak Mahindra Bank Limited (51 %), Kotak Securities Limited (49 %). Kotak Mahindra Prime Limited Private and Confidential .
PRODUCTS AND SERVICES New Car Finance Your dreams can be realised here. Get that new car you always wanted with our new car loans. We offer loans up to 90% of the ex-showroom price and flexible repayment tenors as
per your convenience. Margin Money Scheme
We provide finance for acquisition of new car upto Step Up Scheme
Increase in EMI after every year, six months Low EMI, Balloon Scheme
10%-25% of the cost of the car to be Advance EMI Scheme Make the payments of a few monthly
Used Car Finance Owning a used car can be a simple, easy and reliable experience with KMPL Used Car Finance. We offer up to 90% funding of the car value. You may also avail finance against your existing car
Pre-approved loan Low ticket size loans
referred segment loan Approve you own loan For salaried employee Take over of your existing car loan and generate cash It' Is a loan take over from the bank where the foreclosure amount is lesser than what KMPL actually funds on the asset. That's how you generate cash and you can
get more than 100% finance. Refinance Cash against your car Avail this loan by pledging your existing car which is free from any loan / hypothecation.
Top Up Loans KMPL provides Top Up loans to the esteemed Car loan Customers. As a constant effort in reaching to our privileged customers new products are designed seeing the past repayment track. The lines of Products are:
Top Up Loans
KPTR (Kotak Prime Track record) - This is an exclusive offer for our loyal customers who have maintained a good repayment track with Kotak Mahindra Prime.
RePlus - This loan is a 2-in-1 Offer for our valued customers, which offers benefits of Personal Loan and Re-Finance at the same time. It' s an easy pre-approved top up loan on your car finance.
Car Lease for Corporate customers
Lease is a financial transaction that permits usage of the asset by lessee (Corporate or Employer Corporate) for a rental charged by Lessor Lease tenure : 3 years to 5 years KMPL will help in selecting variant and model of the car for desired price band which suits the need of end-user.
What we Offer:
Transparent pricing mechanism and competitive rates Hassle free Processing Presence in all metros and key states Single Point Contact for all queries and issue resolution Car Lease take-over facility from other financiers Tie up with all major car dealers and manufacturers Tie up with dedicated insurance company for car insurance.
Dealer Finance Kotak Mahindra Prime Limited has vast experience in providing comprehensive solution to the wholesale funding requirement of automobile dealers across various manufacturers. KMPL offers superlative experience to automobile dealers by catering to their entire spectrum of financial requirement through 'single window' and tailor made products to suit
the dealership business requirement. This results in better response time and funding solutions to our esteemed customers. The various financial options available are: Inventory Funding Project financing - Term Loan for setting up, renovation, expansion of dealership. Other Term loans against property for business expansion, working capital term loans. Setting up of CC/BG/OD/LC limits through Kotak Mahindra Bank Limited
FINANCIAL ANALYSIS
Mar '17
Mar '16 Mar '15
12 mths
12 mths
12 mths
13.3
13.28
13.28
13.3 51.51 64.81
13.28 53.02 66.3
13.28 95.39 108.67
2.09
27.85
33.46
6.2 8.29
16.4 44.25
24.36 57.82
73.1
110.55
166.49
Sources Of Funds Total Share Capital Equity Share Capital Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities
Mar '17 12 mths Application Of Funds Gross Block 5.65 Less: Accum. Depreciation 2.74 Net Block 2.91 Investments 14.77 Sundry 0.29
Mar '16 Mar '12 12 mths 12 mths 5.47
6.35
2.61 2.86 47.31 0
1.66 4.69 77.27 3.73
Debtors Cash and Bank Balance Total Current Assets Loans and Advances
0.09
0.61
3.61
0.38
0.61
7.34
59.73
63.46
83.63
60.11
64.07
90.97
2.67 2.02
1.94 1.75
5.21 1.23
Total CA, Loans & Advances Current Liabilities Provisions Total CL & Provisions Net Current Assets
4.69
3.69
6.44
55.42
60.38
84.53
Total Assets
73.1
110.55
166.49
0
26.22
42.26
24.44
25.04
41.05
Contingent Liabilities Book Value (Rs)