MIRA INFORM REPORT
|
Report Date : |
6th May, 2006 |
IDENTIFICATION DETAILS
|
Name : |
LEELA
KEMPINSKI– PROP. HOTEL LEELA VENTURE LIMITED |
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Registered Office : |
Sahar,
Andheri (East), Mumbai-400059, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
20.03.1981 |
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Com. Reg. No.: |
11-24097 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
MUMH07048G |
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PAN No.: (Permanent Account No.) |
AAACH3167J |
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Legal Form : |
A Public Limited Liability
Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Hotels
and Tourism relating Industry |
RATING & COMMENTS
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MIRA’s Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 30000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed Five Star Hotel Group. Available information
indicates high financial responsibility of the company. Their trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per
commitments. The company can be considered good for normal business dealings |
LOCATIONS
|
Registered Office : |
Sahar,
Andheri (East), Mumbai-400059, Maharashtra |
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Tel. No.: |
91-22-56911234/19/20 |
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Fax No.: |
91-22-56911212/1452 |
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E-Mail : |
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Website : |
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DIRECTORS
|
Name : |
Capt.
C. P. Krishna Nair |
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Designation : |
Chairman |
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Name : |
Mr.
Vivek Nair |
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Designation : |
Director |
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Name : |
Mr.
Dinesh Nair |
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Designation : |
Director |
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Name : |
Mr.
R. Venkatachalam |
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Designation : |
Director |
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Name : |
Mr.
Venu Krishnan |
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Designation : |
Director |
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Name : |
Mrs.
Madhu Nair |
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Designation : |
Director |
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Name : |
Mr.
Vijay Amritraj |
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Designation : |
Director |
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Name : |
Mr.
P. C. D. Nambiar |
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Designation : |
Director |
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Name : |
Mrs.
Anna Malhotra |
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Designation : |
Director |
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Name : |
Mr.
Anil Harish |
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Designation : |
Director |
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Name : |
Mr.
K. U. Mada |
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Designation : |
Director |
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Name : |
Mr.
Sudhir Kumar |
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Designation : |
Director |
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Name : |
Mr.
Luis Miranda |
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Designation : |
Director |
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Date of Appointment: |
10.03.2005 |
KEY EXECUTIVES
|
Name |
Mr.
Vivek Nair |
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Designation |
Vice
Chairman & Managing Director |
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|
Date of Birth |
03.01.1952 |
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Age |
48
years |
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|
Qualification |
B.A.
(Economics), Hotel Management (USA) |
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Experience |
26
years |
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|
Date of Joining |
08.08.1983 |
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|
Other Directorships :- |
·
Leela Scottish Lace Limited – Director ·
Standard Precious and Alloy Industries Private Limited ·
Buena Vista Travels Private Limited ·
Leela Housing Private Limited ·
Wondercraft Apparels Private Limited ·
Armcess Engineers Private Limited ·
Vibgyor Leasing Private Limited ·
Elegant Bateries Private Limited ·
PSPL Polymers Private Limited ·
Aushim Soft Private Limited ·
Leela Soft Private Limited ·
Splendour Realtors India Private Limited ·
Tropicate Textiles Private Limited ·
Beacon Fabrics Private Limited ·
Chemtec Water Conditioners Private Limited ·
VIP Industries Limited ·
Leela Capital & Finance Limited ·
Leela International Limited ·
Buena Vista (International) Limited ·
Vision Hotels and Resorts Limited ·
Mumbai International Convention and Exhibition Centre Limited ·
Leela Lace International Limited |
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Name |
Mr.
Sudhir Kumar |
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Designation |
Director |
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Date of Birth |
02.01.1946 |
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Qualification |
B.
Com., A.C.A. |
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Date of Appointment |
02.07.2002 |
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Name |
Dr.
K. U. Mada |
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Designation |
Director |
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Date of Birth |
29.12.1933 |
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Qualification |
M.
A. (Economics), Ph.D., Diploma in Financial Engineering, FICA |
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Date of Appointment |
29.01.2000 |
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Other Directorships :- |
1.
Lupin Limited 2.
Southern Petrochemical Industrial Corporation Limited 3.
Ispat Metallics India Limited 4.
Natco Pharma Limited 5.
Asian Electronics Limited |
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Name |
Mrs.
Anna Malhotra |
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Designation |
Director |
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Date of Birth |
17.07.1927 |
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Qualification |
I.A.S. |
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Date of Appointment |
14.06.1993 |
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Other Directorships:- |
1.
Malhotra Heart Institute and Medical Centre Private Limited, New
Delhi 2.
Medicorp Limited, Chennai 3.
Simplex Mills Company Limited, Mumbai |
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Name: |
Mr.
Dinesh Nair |
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Designation: |
Joint
Managing Director |
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Age: |
45
years |
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Qualification: |
B.Com |
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Experience: |
27
years |
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Date of Commencement: |
08.08.1983 |
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Previous Employment: |
Leela
Scottish Lace Limited – Managing Director |
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MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
Promoters |
34930399 |
49.31 |
|
Directors and their
relatives |
323138 |
0.46 |
|
Public Financial Institution |
1056775 |
1.49 |
|
Nationalised Bank |
3400 |
- |
|
Mutual Funds |
2847661 |
4.02 |
|
Bodies Corporate (Not
mentioned above) |
4220697 |
5.96 |
|
Foreign Holdings
(FIIs/NRIs/OCBs) |
9755133 |
13.77 |
|
Venture Capital Funds |
7299000 |
10.30 |
|
Trusts |
826000 |
1.17 |
|
Resident Individuals |
9571801 |
13.52 |
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|
|
|
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Total |
70834004 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Hotels
and Tourism relating Industry |
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GENERAL INFORMATION
|
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Employees: |
1200 |
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Bankers : |
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Banking Relations : |
Good |
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Auditors : |
Picardo & Co. Chartered Accountants |
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Solicitors: |
Kanga
& Company |
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Associates: |
Ř
Mumbai International
Convention and Exhibition Centre Limited Ř
Leela Industries
Limited, U.S.A. Ř
Leela Capital and
Finance Limited Ř
Leela Lace
International Limited Ř
Leela Lace (H. K.)
Limited Ř
Standard Precious
Alloy Industries Private Limited Ř
Design Creations
(Mumbai) Private Limited Ř
PSPL Polymers Private
Limited Ř
Zantho Pharmaceuticals
Private Limited Ř
Armcess Engineers
Private Limited Ř
Chemtec Waters
Conditioners Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9,00,00,000 |
Equity
Shares |
Rs. 10 each |
Rs. 900.000 millions |
|
|
|
|
|
|
9,00,00,000 |
Redeemable
Preference Shares |
Rs. 100 each |
Rs. 9000.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7,08,34,004 |
Equity
Shares |
Rs. 10 each |
Rs. 708.340 millions |
|
|
|
|
|
|
76,75,000 |
5%
Non Cumulative Preference Shares |
Rs. 100 each |
Rs. 767.500 millions |
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FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1475.840 |
1403.5900 |
|
|
2] Share Application Money |
|
- |
186.000 |
|
|
3] Reserves & Surplus |
|
6201.486 |
4414.163 |
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|
4] (Accumulated Losses) |
|
|
|
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NETWORTH
|
|
7677.326 |
6003.753 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
6233.093 |
6972.750 |
|
|
2] Unsecured Loans |
|
532.343 |
152.655 |
|
TOTAL
BORROWING
|
|
6765.436 |
7125.405 |
|
|
DEFERRED TAX LIABILITIES |
|
293.857 |
150.675 |
|
|
|
|
|
|
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TOTAL
|
|
14736.619 |
13279.833 |
|
|
|
|
|
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APPLICATION OF FUNDS
|
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|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
|
12745.131 |
11833.898 |
|
Capital work-in-progress
|
|
|
|
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|
|
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|
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INVESTMENT
|
|
1.111 |
97.788
|
|
DEFERREX TAX ASSETS
|
|
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
246.345 |
224.359 |
|
|
Sundry Debtors
|
|
197.646 |
139.581 |
|
|
Cash & Bank Balances
|
|
520.569 |
52.068 |
|
|
Loans & Advances
|
|
1622.568 |
1688.867 |
Total Current Assets
|
|
2587.129 |
2104.875
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
596.752 |
766.852 |
|
Total Current Liabilities
|
|
596.752
|
766.852 |
|
Net Current
Assets
|
|
1990.377 |
1338.023 |
|
MISCELLANEOUS EXPENSES
|
|
- |
10.124 |
|
|
|
|
|
|
|
TOTAL
|
|
14736.619 |
13279.833 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
|
2713.393 |
2076.323 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
492.173 |
71.815 |
Provision for Taxation
|
|
44.613 |
(4.222) |
Profit/(Loss) After Tax
|
|
447.560 |
76.038
|
|
|
|
|
|
Total Expenditure
|
|
3160.953 |
5313.314 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
|
31.12.2006 [Full Year] |
|
|
|
|
|
|
Sales Turnover
|
|
|
|
3238.600 |
Other Income
|
|
|
|
198.300 |
Total Income
|
|
|
|
3436.900 |
Total Expenditure
|
|
|
|
1661.400 |
Operating Profit
|
|
|
|
1775.500 |
Interest
|
|
|
|
318.500 |
Gross Profit
|
|
|
|
1457.000 |
Depreciation
|
|
|
|
338.900 |
Tax
|
|
|
|
110.000 |
Reported PAT
|
|
|
|
1008.100 |
Dividend (%)
|
|
|
|
15.00 |
200506 Quarter 1 --------------- Notes: EPS is
basic and diluted. Status of Investor Complaints for the quarter ended June 30,
2005 Complaints Pending at the beginning of the quarter 04 Complaints Received
during the quarter 177 Complaints disposed off during the quarter 180
Complaints unresolved at the end of the quarter 01 1. The above results,
subjected to a limited review by the Statutory Auditors, were considered by the
Audit Committee and taken on record by the Board of Directors at their meeting
held on July 13, 2005. 2. a. The Company has started upon the project work for
expansion of room capacity at The Leela Palace Kempinski, Bangalore. b. The
Second Phase ('C & 'D' Wings) of refurbishment of the Leela Kempinski,
Mumbai is in progress. c. The Company has purchased the land for its 400 room
hotel project at Chennai and has commenced steps for implementing the project
3. In view of the seasonally of the business, the financial results for the
quarter ended are not indicative of the full year's performance. 4. With
respect to the Auditors' observation about the balance sums due from HUDCO in
the last Annual Report, the Division Bench of the Delhi High Court has vide its
Order dated November 09, 2004 confirmed the Order of the Single Judge upholding
the Arbitral Award in toto in favour of the Company and rejected the appeal of
HUDCO who have filed a Special Leave Petition before the Supreme Court of India
and which is pending before it. 5. As the Company operates in a single segment,
segment-wise reporting is not applicable. 6. Provision for taxation (including
Deferred Taxation as per Accounting Standard 22 of The Institute of Chartered
Accountants of India) as applicable will be made at the end of the year. 7.
Figures of the previous year, wherever necessary, have been
regrouped/rearranged to make them comparable with the current year/quarter.
200509 Quarter 2 --------------- Expenditure
Includes Consumption of Raw Materials Rs 47.721 million Staff Cost Rs 103.017
million Fuel, Power & Light Rs 63.652 million Other Expenditure Rs 169.819
million Extra Ordinary Items indicates Profit on sale of assets Status of
Investor Complaints for the quarter ended September 30, 2005 Complaints Pending
at the beginning of the quarter 01 Complaints Received during the quarter 139
Complaints disposed off during the quarter 140 Complaints unresolved at the end
of the quarter Nil 1. The above results, subjected to a limited review by the
Statutory Auditors, were considered by the Audit Committee and taken on record
by the Board of Directors at their meeting held on October 28, 2005. 2. a. The
Company has embarked upon the project work for expansion of room capacity at
The Leela Palace Kempinski, Bangalore. b. The Second Phase ('C' & 'D'
Wings) of refurbishment of The Leela, Kempinski Mumbai is nearing completion.
c. The Company has initiated steps for implementing its hotel project at
Chennai. d. The construction of the hotel at Udaipur is in progress. e. The
Company has acquired 99.97% of the equity shares of Kovalam Hotels Ltd on July
15, 2005 and the hotel has been renamed as The Leela, Kovalam Beach. 3. In view
of the seasonally of the hotel business, the financial results for the half
year ended are not indicative of the full year's performance. 4. With respect
to the Auditors observation about the balance sums due from HUDCO in the last
Annual Report, the Division Bench of the Delhi High Court has vide its Order
dated November 09, 2004 confirmed the Order of the Single Judge upholding the
Arbitral Award in toto in favour of the Company and rejected the appeal of
HUDCO. HUDCO's Special Leave Petition is pending before the Supreme Court of
India on this matter. 5. The company has issued Foreign Currency Convertible
Bonds to the extent of Euro 60 Million during this quarter. 6. As the Company
operates in a single segment, segment-wise reporting is not applicable. 7.
Provision for taxation (including Deferred Taxation as per Accounting Standard
22 of The Institute of Chartered Accountants of India) as applicable will be
made at the end of the year. 8. Figures of the previous year, wherever
necessary, have been regrouped / rearranged to make them comparable with the
current year / quarter / half year.
200512 Quarter 3 --------------- Notes
EPS is basic and diluted. Status of Investor Complaints for the quarter ended
December 31, 2005 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 82 Complaints disposed off during the
quarter 82 Complaints unresolved at the end of the quarter Nil 1. The above
results, subjected to a limited review by the Statutory Auditors, were
considered by the Audit Committee and taken on record by the Board of Directors
at their meeting held on January 27, 2006. 2. a. The Company has embarked upon
the project work for expansion of room capacity at The Leela Palace Kempinski,
Bangalore. b. The Second Phase ('C & 'D' Wings) of refurbishment of The
Leela, Kempinski Mumbai has been completed. c. The Company has initiated steps
for implementing its hotel project at Chennai, Hyderabad and Pune. d. The
construction of the hotel at Udaipur is in progress. 3. In view of the
seasonally of the hotel business, the financial results for the quarter ended are
not indicative of the full year's performance. 4. With respect to the Auditors'
observation about the balance sums due from HUDCO in the last Annual Report,
the Division Bench of the Delhi High Court has vide its Order dated November
09, 2004 confirmed the Order of the Single Judge upholding the Arbitral Award
in to in favour of the Company and rejected the appeal of HUDCO. HUDCO's
Special Leave Petition is pending before the Supreme Court of India on this
matter. 5. As the Company operates in a single segment, segment-wise reporting
is not applicable. 6. Provision for taxation (including Deferred Taxation as
per Accounting Standard 22 of The Institute of Chartered Accountants of India)
as applicable will be made at the end of the year. 7. Figures of the previous
year, wherever necessary, have been regrouped / rearranged to make them
comparable with the current year/quarter.
200603 Quarter 4 --------------- Notes: EPS is Basic and diluted. 1. The above results, subjected to a limited review by the Statutory Auditors, were considered by the Audit Committee and taken on record by the Board of Directors at their meeting held on 29th April, 2006. 2. The Company has declared an interim dividend of 15% on equity shares. 3. a. The Company has embarked upon the project work for expansion of room capacity at The Leela Palace, Kempinski, Bangalore which is expected to be completed by December, 2006. b. The 3rd Phase ('B' Wings) of refurbishment ofthe Leela Kempinski, Mumbai is in progress and is expected to be completed by October, 2006. c. The Company has initiated steps for implementing its hotel projects at Chennai, Hyderabad and Pune. d. The construction of the hotel in Udaipur is in progress and is expected to be completed in time for the winter season 2007-08. e. The Company has redeemed preference shares to the extent of Rs. 38 Crores during the financial year. 4. The Company has entered into a management contract to operate a Five Star Deluxe Hotel with 319 guest rooms and suites and 90 serviced residences at Gurgaon. 5. With respect to the AV(Wt6tobservation about the balance sums due from HUDCO in the last Annual Report, the Division Bench of the Delhi High Court has vide its Order dated 9/11/2004 confirmed the Order of the Single Judge upholding the Arbitral Award in toto in favour of the Company and rejected the appeal of HUDCO. The Supreme Court of India has subsequently issued an order asking HUDCO to pay/deposit 50% of the decretal amount. HUDCO has deposited an amount of Rs. 59.61 Crore in the Delhi High Court. 6. As the Company operates in a single segment, segment-wise reporting is not applicable. 7. Provision for taxation (including Deferred Taxation as per Accounting Standard 22 of The Institute of Chartered Accountants of India) as applicable will be made at the time of finalization of audited accounts. However, the Company has made the provisions for Fringe BenefitTax and Other Taxes. 8. Status of Investors' complaints for the quarter: [Opening Balance (01.01.06) - NIL, Received - 128, Redressed-128, Closing Balance (31.03.06)-NIL] 9. Figures of the previous year, wherever necessary, have been re-grouped/re-arranged to make them comparable with the current year/quarter. 200603 Quarter 4 --------------- Notes: EPS is Basic and diluted. 1. The above results, subjected to a limited review by the Statutory Auditors, were considered by the Audit Committee and taken on record by the Board of Directors at their meeting held on 29th April, 2006. 2. The Company has declared an interim dividend of 15% on equity shares. 3. a. The Company has embarked upon the project work for expansion of room capacity at The Leela Palace, Kempinski, Bangalore which is expected to be completed by December, 2006. b. The 3rd Phase ('B' Wings) of refurbishment ofthe Leela Kempinski, Mumbai is in progress and is expected to be completed by October, 2006. c. The Company has initiated steps for implementing its hotel projects at Chennai, Hyderabad and Pune. d. The construction of the hotel in Udaipur is in progress and is expected to be completed in time for the winter season 2007-08. e. The Company has redeemed preference shares to the extent of Rs. 38 Crores during the financial year. 4. The Company has entered into a management contract to operate a Five Star Deluxe Hotel with 319 guest rooms and suites and 90 serviced residences at Gurgaon. 5. With respect to the AV(Wt6tobservation about the balance sums due from HUDCO in the last Annual Report, the Division Bench of the Delhi High Court has vide its Order dated 9/11/2004 confirmed the Order of the Single Judge upholding the Arbitral Award in toto in favour of the Company and rejected the appeal of HUDCO. The Supreme Court of India has subsequently issued an order asking HUDCO to pay/deposit 50% of the decretal amount. HUDCO has deposited an amount of Rs. 59.61 Crore in the Delhi High Court. 6. As the Company operates in a single segment, segment-wise reporting is not applicable. 7. Provision for taxation (including Deferred Taxation as per Accounting Standard 22 of The Institute of Chartered Accountants of India) as applicable will be made at the time of finalization of audited accounts. However, the Company has made the provisions for Fringe BenefitTax and Other Taxes. 8. Status of Investors' complaints for the quarter: [Opening Balance (01.01.06) - NIL, Received - 128, Redressed-128, Closing Balance (31.03.06)-NIL] 9. Figures of the previous year, wherever necessary, have been re-grouped/re-arranged to make them comparable with the current year/quarter.
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
|
1.57 |
2.02 |
2.15 |
|
Long Term Debt Equity Ratio |
|
1.54 |
1.88 |
1.90 |
|
Current Ratio |
|
1.81 |
1.22 |
0.98 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
0.23 |
0.19 |
0.17 |
|
Inventory |
|
10.91 |
9.27 |
6.82 |
|
Debtors |
|
15.22 |
15.48 |
13.19 |
|
Interest Cover Ratio |
|
1.95 |
1.13 |
1.08 |
|
Operating Profit Margin (%) |
|
50.96 |
44.87 |
65.22 |
|
Profit Before Interest and
Tax Margin (%) |
|
39.34 |
30.97 |
45.69 |
|
Cash Profit Margin (%) |
|
29.06 |
17.79 |
31.27 |
|
Adjusted Net Profit Margin
(%) |
|
17.44 |
3.89 |
11.73 |
|
Return On Capital Employed
(%) |
|
8.71 |
5.63 |
5.80 |
|
Return On Net Worth (%) |
|
11.00 |
2.80 |
5.74 |
|
|
|
|
|
|
STOCK PRICES
|
Face
Value |
Rs.
10 |
|
High |
Rs.
423.35 |
|
Low |
Rs.
404.45 |
LOCAL AGENCY FURTHER INFORMATION
Subject was promoted by a
former Army Captain Mr. C. P. Krishnan Nair, commenced operations in 1986, with
a 250-room hotel in Mumbai. The
controlling stake of subject is with Leela Scottish Lace Limited started by Mr.
Nair in the early 50’s. The Subject was
expanded in 1990-91 and Leela Beach Goa commenced its operations in
1991-1992. Subject was a four star
hotel and had a collaboration with Penta Hotel Limited, a part of Lufthansa
German Airlines. In 1987-88, when
subject attained 5 star status, the agreement was assigned to Kempinski Hotels
S.A. Switzerland, also a part of Lufthansa Group.
Subject entered into a
collaboration with Penta Hotels, UK, which was subsequently transferred to
Kempinski Hotels, a European chain on 5 star deluxe hotels, owned by Lufthansa,
the German airline.
The company set up its first 5
star deluxe hotel, Leela Penta, in Mumbai in 1986. It was renamed Leela
Kempinski in 1988, following the change in its marketing and sales tie-up. It
undertook an expansion of its hotel in Mumbai by constructing a tower block
comprising an additional 172 rooms, including suites. Simultaneously, it also
undertook the construction of a new 5 star deluxe resort at Goa which was part
financed by a right issue in September, 1991. Consequent on the enhancement of
facilities and upgradation of standards, aggregate cost escalated and the
financing for the project had to be revised due to which the company came out
with a right issue in September, 19913. Consequent on the enhancement of
facilities and upgradation of standards, aggregate cost escalated and the financing
for the project had to be revised due to which the company came out with a
right NCDs issue with detachable warrants aggregating Rs. 490.900 millions in
the year 1995.
The Leela Bombay, was
conferred by the Government of India, Department of Tourism, the highest honour
in the hospitality industry viz. The National Tourism Award for 1997-98 for
outstanding performance in the five star deluxe category hotels in India.
The Leela Palace, Goa had
started its operation in September 1998. The hotel had been upgraded to a world
class beach resort and had been acclaimed as one of the finest resorts in the
world.
|
Set
amidst 11 acres of lush landscaped gardens, cascading waterfalls, lotus pools
and fountains, The Leela Kempinski Mumbai, only 1.5 kms from the international
airport and in proximity to the North Mumbai Central Business District, is an
enclave of tranquillity midst the hustle and bustle of India's commercial
capital. Here, the culture, mystique and hospitality of India blends with
modern facilities and services to give Mumbai's finest business hotel of the
country. In a city of lively contemporary culture, this 5-star deluxe hotel
combines state-of-the-art technology with tasteful décor to create a haven
for the guests, welcoming both business and leisure travellers with warm
graciousness at our five star hotel in Mumbai. |
The year 2004-05 has been
the best year for the hospitality industry since the mid-nineties and hotel
stockholders have much to cheer about. Foreign Tourist arrivals grew by an unprecedented
24% much beyond expectations. India has truly turned incredible and is
now a giant in the BPO
space, claiming 80% of the global market share with Bangalore leading the pack.
The culture, mystique and hospitality of India blends
with modern facilities and services to give you what is the finest business
hotel in the country, the Leela Kempinski Hotel.
Hotel The Leela Kempinski is one of the leading 5 Star Deluxe hotels in Mumbai,
the dream city of India.
Location
The Leela is a City Hotel, situated in the heart of Mumbai's Bustling
Industrial Belts.
The hotel is located 1.5 kms. from International Airport, and 7 kms. From
Domestic Airport.
Accommodation at Hotel The Leela Kempinski
The Leela Kempinski hotel offers 423 centrally air-conditioned rooms
including 33 suites.
Amongst the various room facilities available at the Leela Kempinski hotel are
24 hours in room dinning, H/C running water, High-speed broad band internet
access, Telephone, T.V., Safe deposit, Channel music, In-house Video Channels,
Mini Bar, Electronic Card Locker / Automatic Fire censoring and Water
Sprinklers.
Dining at Hotel The Leela Kempinski
Indian Harvest is an authentic Indian restaurant that serves diverse
Hindustani cuisine with live Indian Classical music. Gleaming brass, copper and
silver dominate the traditional décor at Indian Harvest.
Great Wall is famed for its authentic Hunan cuisine, and reputed to be a
favourite of the elite of Mumbai.
Waterfall is situated at lobby level, The Waterfall is Leela's 24-hour
restaurant facing an exotic, landscaped waterfall. You can enjoy breakfast,
buffet lunch & dinner and a la carte Continental, Indian and Chinese
cuisine.
Orchid Lounge is the spacious waiting lounge of the Leela hotel, which
serves as a quiet niche for the ever welcome guest. Snacks and beverages are
served here with live piano music in the evenings.
Bonaparte's carries the distinct air of warm bonhomie. It also boasts of
an exhaustive collection of vintage wines and liqueurs.
Fiorella is the only Italian restaurant in Mumbai, the north Italian
fare is a must check-out.
Take 3 the restaurant ha a live jazz band and its own exclusive bar
called Caesar serving authentic Italian wines.
Facilities at Hotel The Leela Kempinski
The Leela has a 24-hr business centre that offers a host of specialized
services viz: secretarial services, telex, telefax, word-processing, conference
rooms plus reading material to catch up with the business news around the
world.
Amongst the special facilities for corporate giants, from The Leela are 9
exclusive meeting rooms equipped with hi-tech facilities for conferences,
seminars and board meetings.
The Grand Ballroom of the Leela Hotel is Bombay's largest indoor banquet hall.
It comfortably accommodates over 2000 guests for celebrated weddings and
mammoth conference. For more intimate gatherings, the Ballroom can be
conveniently divided into five smaller venues. For outdoor functions, The Palm
Courts and the Poolside are unmatched for their beautiful pristine setting.
Services at Hotel The Leela Kempinski
Leela Kempinski offers a range of services to its guests including Doctor on
call, Laundry, Money changer, Banking, Safe deposit, Baby sitting, and
Concierge.
You may dip into the crystal blue, lagoon-shaped swimming pool, jog through
acres of jogging trail set amidst exotic flora and fauna, work out in the fully
equipped gym from Universal of USA, complete with sauna, Jacuzzi and steam
bath. Indulge in a game of tennis on the 2 International Amritraj Astrotuf
tennis courts. Or if squash is your game, then you may check out the finest
air-conditioned glass-back-walled squash court. The shopping arcade of the
Leela Hotel offers exquisite antiques, carpets, handicrafts, leather and
jewelry.
We at HotelsMumbaiIndia.com offer hotel booking, and room reservation for Hotel
The Leela Kempinski in Mumbai (Bombay).
It is raining diamonds at
The Leela
For the first time in India, all our 3 properties at
Mumbai, Bangalore & Goa individually won the prestigious 2005 International
Five Star Diamond .Award instituted by the American Academy of Hospitality
Sciences, New York USA, for achieving excellence in performance &
services. I also felt deeply humbled on being bestowed
the Lifetime Achievement Award by the Academy. This achievement is our
contribution to raising the global perception of India's hospitality industry
as we stand alongside past recipients viz: Ritz Carlton, Shangri La, Mandarin
Oriental and Four Seasons.
To carry
forward our stupendous success at Bangalore
we are adding an additional wing of 130 rooms to The
Leela Palace Bangalore which should be ready by the beginning of next year.
The Leela Goa continues with its numero uno slot by
consistently winning the World. Travel Awards and being once again recognized
in 2004 as the Leading Luxury Resort in Asia Pacific.
It gives me great pride that both The Leela Palace
Bangalore and The Leela Goa continue to reign supreme on the CRISIL charts with
the highest ARR in the country.
At The Leela Mumbai the initial phase of renovation
& refurbishment has been completed with the rooms having world class
amenities and the restaurants, pooldecks and lounges having a rich contemporary
new look. The final phase of this enhancement programme will be completed this
year making The Leela Mumbai the buzzword for luxury, comfort and style, for it
to regain the number one market position in Mumbai.
Financial Performance
The excellent financial performance during 2004-05 is
the result of a well chalked out strategy for improving performance and
reducing costs. Cost of borrowing has also come down drastically due to
skillful financial engineering. The confidence reflected, both by the economy
in general and your company in particular, helped in raising Equity & FCCB
-(since converted to Eiquity) to the tune of Rs 200 crores which has enabled
the Company to reduce debt and partially fund its expansion plans.
The balance due from HUDCO is expected to be received
during the current year and its application to reduce the debt would lead to
.lower gearing and further improvement in the bottomline.
Acknowledgement
With a deep sense of gratitude I once again thank all
Banks and Financial Institutions, my colleagues on the Board and my Loyal
shareholders for their continued and unstinted support which has enabled the
Company to reemerge with renewed strength. I would also like to thank
the AAI, the Ministry of Tourism, Government of India
and the Government of Maharashtra, Goa and Karnataka for their support to the
industry. Last but not least, I have to thank all my vibrant co-workers who
with their dedicated passion, vigour and hard, work have made the Company’s
resurgence possible
The Leela Kempinski Mumbai
The Leela Kempinski Mumbai Nominated
in The Savvy F&B Awards
Newly opened
- Finest Italian Restaurant - 'STELLA'
Mission Statement
Hoteliering has gone beyond the status of an
industry. It is today an art form. It starts with innovation, continues the
search for excellence, and finally celebrates perfection. These are precisely
the three pillars on which The Leela Group has built its reputation.
- Innovation
- Excellence
- Perfection
They also
represent the three faces of modern India. The India which dares to take on the
world with its world class technology, its great tradition ' enriched over the
centuries and its obsessive desire to be hospitable to travelers from all over
the world. But beyond all this is the simple fact: We love and enjoy people. It
is this that has made us what we are. It is this that must inspire us in the
years to come.
Chairman's
Profile
Captain C.P. Krishnan Nair was born at Cannanore, Kerela, on the 9th of Feb.
1923. He did his schooling at the Local Raja’s High School and later on joined
the Muslim College in Chennai.
With the spirit of a rebel and a freedom fighter, he joined Free India’s army.
Later on, he resigned his commission to champion the cause of handloom weavers.
From pioneering handlooms, the far reaching impact of the visionary Capt.
Krishnan Nair has always been evident. When his sights focussed on hospitality
he transformed industry standards forever. Today he is a significant player in
the Tourism and Handloom Industry.
His three magnificent creations in corporate Hotels and Resorts, The Leela
Kempinski Mumbai, The Leela, Goa , and The Leela Palace Kempinski Bangalore
stand testimony to his unswerving spirit.
Numerous are the awards that Capt. Nair has won over the years. They include
the Pride of India Gold Award, the Prime Minister’s National Tourism Award, for
six years, The Green Hotelier Award by the International Hotel & Restaurant
Association, The Life Time Acheivement Award from FHRAI and NAFEN. The Golden
Globe Award for highest clothing in 2000 and 2001.
Special amongst all is the Global 500 Laureate Roll of Honour by the United
Nations Environment Programme in 1999, the Maharana Mewar Foundation National
Award for “outstanding practical achievements in the protection and improvement
of the environment” in 2002, and the prestigious V. P. Menon Award from the
President of India.
Once, when asked what motivates him, He replied, ‘‘The obsessive compulsion to
excel, and offer my country the best of what I was fortunate to experience
around the world, is what drives me endlessly.”
Directors:
Mr. R.Venkatachalam, Mrs. Anna Malhotra,
Dr. (Mrs.) Lata Singh, Capt. C.P. Krishnan Nair, Mr. P.C.D. Nambiar, Air Vice
Marshal H.M. Shahul, Dr. K.U. Mada, Mr. Anil Harish
Mr. Venu Krishnan, Mr. Vivek Nair, Mr.
Dinesh Nair, Mr. Vijay Arnritraj
Mrs.Madhu Nair, Mr Sudhir Kumar
Awards
& Accolades
Winner of three PATA Gold Awards - 2002
- Corporate Environmental Programme - The Leela
Kempinski, Mumbai
- The best Travel Advertising - The Leela Palace
Kempinski, Bangalore
- The best National Marketing Programme - The
Leela, Goa
Maharana Udai Singh Award - 2002 For Excellence in Environmental
intiatives
V P Menon Award - 2002 For Outstanding Performance and Valuable Support
to the field of Environment and Industry.
Forbes Magazine selects The Leela Palace, Bangalore as One of the Eight
Best New Business Hotels in the World - 2001
World travel Award - 2000,2001 & 2002 The Leela, Goa voted as
the very best Resort in Asia Pacific.
Winner of National and Regional Tourism Awards From 1994 to 2000 for 6
consecutive years - The Leela Kempinski Mumbai
Global 500 Laureate - 1999 By United Nations Environment Programme
Corporate Environmental Achievement Award 1998 6th World Wilderness
Congress
BCCI (Bombay Chambers Civic and industry Award) Bombay Chamber of
Commerce and Industry for improving environment and civic conditions of Bombay
Green Hotelier Award - 1996 International Hotel and Restaurant
Association, Paris
Hotel Facilities
423 elegantly furnished deluxe rooms
& suites Large business desk in all rooms
Electronic safe in all rooms
2 Line telephones in all rooms
3"' phone in all the bathrooms
100 channel cable TV
Fully stocked mini-bar
Broadband high-speed internet access Power
supply: 220 volts
Business Centre
Concierge Services
24 hr In-Room dining
Laundry & Dry cleaning
Limousine Services
Daily City Coach
Board rooms & Meeting rooms
Beauty Parlour
Health Club & Fitness
Massage Service
Outdoor Swimming pool
Squash Court
DINING &
ENTERTAINMENT
Citrus -
All-day Dining Restuarant
Jamavar -
Indian Speciality Restaurant
The Great
Wall- Chinese Cuisine
Fiorella -
Italian Cuisine (Under Renovation from 1st March - Dec 2005 )
Six Degrees -
The Cosmopolitan Bar
Zaha - Lounge
bar / Night club
OTHER
FACILITIES
Shopping Arcade
Limousine and Car Hire Services
Parking for 150 cars
Foreign Exchange Services
Travel Agency
Post and Parcel Services
Pastry Shop
Same day Laundry Services
Art Gallery
Baby Sitting
Concierge
Florist
Operations:
The total revenue of the Company for the year ended 31st March, 2005 was
Rs.272.62 crores (previous year Rs.207.90 crores), with contribution from The
Leela Palace Kempinski, Bangalore at Rs.139 crores (previous year Rs.96.90
crores), The Leela Goa at Rs.40 crores (previous year Rs.29.15 crores), The
Leela Kempinski Mumbai at Rs.69 crores (previous year Rs.62.09 crores), The
Galleria at Rs.10.64 crores (previous year Rs.9.44 crores) while Interest and
Other Income amounted to Rs.13.97 crores (previous year Rs.10.05 crores).
The overall performance of the Company showed considerable improvement as
compared to the previous year with revenues growing by 31%.
The buoyancy witnessed in the Hotel and Tourism Industry from the
beginning of the second half of the financial year 2003-04 continued unabated
through 2004-05. The Industry showed a significant growth in revenue due to
upswing in both domestic as well international tourist arrivals by over 35%,
and recorded a remarkable growth in all segments with high average room rates
and occupancy levels.
The Leela Kempinski, Mumbai performed better when compared to the last
year due to the swell in in-bound traffic and general revival of the economy
and steady evolution of North-Mumbai as a business district over the past few
years. The growth in revenue was achieved despite the fact the number of rooms
available for operation was fewer due to refurbishment, at 333 per day as against
413 in the past. Phase-I of the refurbishment programme, that included three
restaurants, bar, 130 rooms and other public areas, was completed and the new
rooms were well received. Phase-II of refurbishment involves 168 rooms, the
Business and Conference centre and the Italian restaurant. The Company now
expects this unit to revive and re-emerge leader in the five star deluxe
segment.
The Leela Goa performed better than the last year due to increase in both
ARR and occupancy. The additional 15 Club Suites, equipped with exclusive Club
Lounge facilities proved to be an instant hit with the tourists. This hotel
remained the market leader although many multinational hotels have recently
started operations in Goa.
The Leela Palace Kempinski, Bangalore has carved a niche of its own in
the business segment and enjoys the highest RevPar in the country. This unit
has been ranked by CRISIL as the best performing hotel in the country.
Amalgamation:
Vision Hotels & Resorts Limited, an erstwhile wholly owned subsidiary
of the Company, was merged with the Company, following the approval of the
Scheme of Amalgamation by the High Court of judicature at Bombay vide its order
dated 15th April, 2005. The appointed date of the merger is 1st April, 2004. The
undertaking of Vision Hotels & Resorts Limited stands transferred to and is
vested in Hotel Leelaventure Limited with effect from the appointed date and
accordingly all its assets and liabilities are reflected in the Company's
accounts as on 31st March, 2005. Pursuant to the merger, all the shares of
Vision Hotels & Resorts Limited held by the Company stand cancelled.
Dues from HUDCO:
The Division Bench of the Delhi High Court has by its Order dated 9th
November, 2004 confirmed the Order of the Single Judge upholding the Arbitral
Award in toto in favour of the Company. HUDCO has filed a Special Leave
Petition which is pending before the Supreme Court. Hence, the observation by
the auditors in their report.
(i) Projects under implementation:
(a) The Leela Business Park, a joint venture project with Rockfort
Developers (a combine of HDFC and Rahejas) is almost completed and the same is
expected to be fully completed before the end of July, 2005.
(b) The preparatory work for the construction of additional wing at The
Leela Palace Bangalore is in progress and the project is expected to be
completed and commissioned during first quarter of the financial year
2006-07.
(c) The civil work for The Leela Palace Udaipur is expected to be
completed during the year 2005-06 and thereafter the balance work of interiors
and services, etc. would be taken up during next year.
(ii) Projects in view:
(a) Chennai: The Company has acquired land at Chennai for the
construction of a Five Star Deluxe Luxury Hotel (about 280 rooms in phase-I)
and IT Park and the project work will be commence after receipt of the
necessary approvals. This hotel is expected to be ready for operation in the
year 2008-09.
(b) Hyderabad: The Company has identified suitable land for setting up a
Five Star Deluxe Luxury Hotel. The land identified has an FSI to set up a 300
room hotel. The process of acquisition of the land so identified is under
process. This hotel is expected to be ready for operation by end 2007-08.
(c) Kovalam (Kerala): The Company has proposed to acquire an existing and
operating Resort Hotel located in the pristine and scenic Kovalam beach. This
hotel, located partly on the peak of a cliff and partly on the beach is very
unique and offers an exciting experience for the discerning high-end
international tourists coming to India for long holidays.
Subsidiary Amin Group Hotel
Limited (AGHL):
The land held by this subsidiary is also part of the area under
development as 'The Leela Business Park'. The project is nearing
completion.
Awards:
All our three hotels were recognized to be among the best hotels in the
world and were rewarded with 5 star Diamond Awards by the American Academy of
Hospitality Services. Your Chairman was also awarded the Life-time Achievement
Award by the Academy for his immense contribution to the growth of the Industry
in India and world wide. Your Chairman has also been awarded the Pata Award of
Merit by the Pacific Asia Travel Association. The Company also received Bombay
Chamber Civic Award 2004-05 for environment excellence.
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS ENVIRONMENT:
The Indian Hospitality Industry is now well set to scale new heights and
the resurgence witnessed by the Tourism Industry in the second half of the year
2003-04 continued unabated through the year 2004-05 as well. Foreign tourist
arrivals improved by 24% to reach 3.36 million during 2004 and Foreign Exchange
earnings by the industry grew by 33% to cross Rs.21,828 crores during 2004. At
many forums across the globe, India being one of the fastest growing economies
of the world, remained the current flavour and the Indian Hotel Market has
therefore been generating serious interest from international operators, hotel
developers as well as investors.
INDUSTRY STRUCTURE AND OUTLOOK:
With Foreign Tourists & Domestic Tourists set to grow at above 35%
and 40% respectively, the hotel industry is in for very good times.
Atleast 80,000 hotel rooms are required to be added in the next 3-4 years
to cater to the 5 million tourists expected by then which involves an
investment of over Rs.30,000 crores.
According to the Ministry of Tourism, every new investment of Rs.10 lakhs
in the hospitality industry generates employment for 89 persons compared to 44
persons in agriculture and 12.5 persons in the manufacturing sector and hence
the proposed investment in the hospitality industry will boost
employment.
The upgradation of Airports all over the country, the move towards their
privatisation, the Open Sky policy which has seen several new International
Airlines linking up with India, the emergence of several low-cost domestic
airlines, the opening up of international destinations to domestic airlines,
all augurs well for the hospitality industry.
The Government has made various announcements to support the growth of
the hospitality and tourism industry viz., setting up of the Consortium for
Infrastructure Funds with a corpus of Rs.40,000 crores, setting up of an
International Airport at Jaipur (Rajasthan), the abolition of 15% Inland Air
Travel Tax, reduction of Excise Duty from 16% to 8% on Aviation Turbine Fuel
and extension of Service Tax concession to Tour Operators.
The proposal to introduce VAT is indeed welcome as Sales Tax on Food
& Beverage which is over 20% in many States would stand reduced to around
12.50% under the VAT regime and would result in reduction in prices.
The Finance Bill also increased the Plan Outlay for Ministry of Tourism
from Rs.325 crores in 2003-04 to Rs.500 crores for 2004-05 and further to
Rs.786 crores for the year 2005-06 which will enable the Ministry to provide
higher outlays for infrastructural development and promotional
activities.
The Government's announcement to set up Convention Centres of
international standards in the four cities of Delhi, Mumbai, Jaipur and Goa, to
be partially funded by the Government, will give a boost to the hoteliering
industry in these cities.
Bangalore continued to be the market leader in terms of occupancy and ARR
(Average Room Rate) and is considered the best hotel market in Asia at present
and one of the best in the world. Average occupancy has shot up
from 57% in 1999-2000 to 80% in 2004-05, the highest in the
country.
Goa has already matured as an international tourist destination with
major hotel chains having presence viz., Hyatt, JW Marriott etc. The State has
benefited from keen efforts by the DoT and the State Government to promote Goa
as a destination. Goa is now the permanent venue for the International Film
Festival. The growth of the Charter Sector will continue to result in positive
development for Goa.
Mumbai, the financial capital of India, continued to experience a large
surge in demand which was reflected in relatively higher ARR, especially in
north Mumbai. The ongoing improvements to infrastructure in terms of wider
roads, flyovers and Highway development and renovation of the Mumbai Airport
will add to demand since not much of hotel construction is to be seen.
Across the world, with the internet becoming a household feature, booking
of hotel rooms through branded hotel websites is on the rise. Voice calls to
reservation centres have declined and Global Distribution Systems remain the
most popular electronic form of hotel room booking making up almost 40% of all
hotel reservations.
As per the recent study conducted by NCAER, there are 10 million
households in India with an average income of over Rs.46,000 per month and 2
million households with income of over Rs.1,15,000 per month, for whom eating
out is emerging as a trend. Hotels have therefore started giving more emphasis
on enhancing F&B Income and a huge boom in domestic tourism is
expected.
RISKS AND CONCERNS:
While the hospitality industry has now re-emerged from the cascading
effects of 9/11, SARS and the aftermath of Kargil, Afghanistan and Iraq,
security is a major concern.
The industry needs to take a proactive approach in addressing issues
concerning geopolitical relations, governmental travel restrictions and
currency exchange rates and their potential impact.
The hospitality industry has to do a better job in managing technology
and address the challenges posed by new and changing technology, especially
with regard to upgradation of aging and inadequate infrastructure.
In recent years 'non-controllable' costs viz.: insurance, utilities etc
have seen an upsurge. It is therefore all the more important to keep
'controllable' costs viz.: payroll, staffing, brand requirements, under
check.
The high incidence of Luxury Tax and the lack of a uniform approach
amongst States has to be looked at in an integrated manner.
Though hotels have been granted infrastructure status and included for
concession u/s 10(23G) of the Income Tax Act, it is necessary to treat hotels
at par with other infrastructure sectors and be included for concessions u/s 80
IA of the Income Tax Act which is imperative to give a fillip to both the
Indian Hotel Industry as well as for FDI which is permitted upto 100%.
While Expenditure Tax was abolished in the year 2003, Service Tax has
been introduced to cover various services rendered by the hotel industry such
that over the years Service Tax has virtually replaced Expenditure Tax. It is
therefore necessary to grant exemption or allow full set-off for the Service
Tax paid and collected to avoid an adverse impact. The Fringe Benefit Tax,
introduced in the recent Finance Budget, on various expenses incurred by the
Company is also a dampener that would increase the cost of operation.
INTERNAL CONTROL SYSTEMS:
Your Company is committed to maintain high standards of internal control
and procedures. To meet with the demands of good corporate governance and for
adopting globally accepted accounting practices, your Company has put in place
systems and procedures vetted by Price Waterhouse. Your Company is therefore
slowly moving towards adopting international best practices in many fields of
its operations including Environment, Accounting, Corporate Governance etc.
|
Contact Us |
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|
LEELA PALACES AND RESORTS SALES AND RESERVATIONS NETWORK IN
INDIA |
|
Mumbai |
|
Bangalore |
|
Goa |
|
Kovalam |
|
Chennai |
|
Hyderabad |
|
New
Delhi |
|
Kolkata |
|
Pune |
|
|
|
|
LEELA GENERAL SALES AGENTS IN INDIA |
|
|
AHMEDABAD |
Tel: +91 79 658 3004/6122 |
|
CHANDIGARH |
Tel: +91 172 278
4030/4130/4230/4330 |
|
JAIPUR |
Tel: +91 141 281 1244, +91 141
281 1747 |
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 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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.30 |
|
UK
Pound |
1 |
Rs.78.45 |
|
Euro |
1 |
Rs.54.88 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational
base are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |