Nicco Uco Alliance Credit Limited
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BSE Code:
523209
NSE Code:
Business Profile
Business Profile
Nicco Uco Alliance Credit (NICCOUCO), incorporated in the year 1984, is engaged in financial activities. The company has business activities in leasing, investment in securities, bill discounting, inter corporate deposits, and other fund and non-fund based activities.
The Reserve Bank of India (RBI) cancelled the certificate of registration of the company to carry out non-banking financial activities vide its order dated Mar. 31, 2005. In the same year, its non-performing assets touched Rs 2,250 million. As a result, fund-based business came to a halt. The reason for mounting losses is due to non creation of new assets and provisioning against non performing assets as per RBI guidelines.
In March 2008, the company entered into a strategic alliance with Westdeutsche Landesbank London for marketing its products in the country. It also entered into a working arrangement with Pricewaterhouse Coopers for implementation of a centralized web-enabled financial system. As the company could not service its fixed deposit holders, a draft scheme of arrangement for reorganization of share capital of the company and compromise with its fixed deposit holders was approved by shareholders. Necessary legal sanction is awaited. Nicco Insurance Agents and Consultants is a subsidiary company.
The registered office is located at 2, Nicco House, 2nd Floor, Hare Street, Kolkata- 700001.
Financials
On standalone and consolidated basis, Nicco Uco Alliance Credit registered a loss of Rs 360.1 million for the year ended March 2008.
It recorded a net sales of Rs 31.1 million for the year ended March 2008.
Total income was Rs 45.5 million for the year ended March 2008.
The loss per share of the company stood at Rs 8.97 for the year ended March 2008.
Recent Developments
14-MAR-08
A draft scheme of arrangement for re-organization of share capital of the company was charted out at the board meeting held on Jul. 31, 2007. Due to substantial losses incurred from June 2004 onwards and due to unavailability of required cash flow, the company had difficulty in complying with the schedule of payment to the deposit holders. In fact, the company had not made any payment to the deposit holders from April 2007 onwards.
In view of the aforesaid and as part of corporate debt restructuring of the company, the has decided to reduce the present equity share capital of the company by canceling 80% of the amount paid up on each equity share of the company which has been lost or is unrepresented by available assets without extinguishing or reducing the liability on any of its existing shares. Subsequent to this reduction of the share capital of the company, the reduced share capital will be Rs 79,838,546 divided into 40,146,773 equity shares of Rs 2 each fully paid up, aggregating to Rs 455,000 and a sum of Rs 321,174,184 arising from cancellation of equity shares, which can be utilized to reduce the debit balance in profit and loss account amounting to Rs 2,562,009,191.
The board expects to settle the claims of the deposit holders amounting to Rs 263,804,330 by issuance of equity shares amounting to Rs 263,802,650 which shall rank with the existing shares of the company. The board further announced that upon reduction of equity shares and issuance of further equity shares on compromise with the fixed deposit holders, the total equity shares of the company shall stand at Rs 343,641,196 divided into 172,048,098 equity shares of Rs 2 each fully paid up, save and except calls in arrears amounting to Rs 455,000.
12-MAR-08
The equity shareholders have approved the scheme of arrangement for the re-organization of the company`s share capital and a compromise with the fixed deposit holders has also been reached. A meeting was held on Feb. 29, 2008 to reach a decision on the aforesaid.
The company entered into a strategic alliance with Westdeutsche Landesbank London for marketing its products in the country. It also entered into a working arrangement with Pricewaterhouse Coopers (PwC) for implementation of a centralized web enabled financial system.