MIRA
INFORM REPORT
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Report Date : |
31ST
May, 2006 |
IDENTIFICATION
DETAILS
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Name : |
BMR
& ASSOCIATES |
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Registered Office : |
3F,
Contractor Building, 41 R Kamani Marg, Ballard Estate, Mumbai – 400001 |
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Country : |
India |
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Date of Incorporation : |
7/8
Years in India |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB14283D |
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Line of Business : |
Company
is in engaged in Services in the Areas of Tax and regulatory Inputs Such as Corporate
tax consulting and reporting, International tax, Mergers, Acquisitions and Corporate Reorganizations , Transfer
Pricing , Local and Indirect Taxes |
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Maximum Credit Limit : |
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Status : |
Undetermined
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Payment Behaviour : |
Unknown
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Litigation : |
Unknown
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Comments : |
Subject
is a leading financial consultants, tax and audit firm. They will not provide
require details for credit information. We
discussed with Ms. Vijaya Sampath and subsequently to Mr. Seiji Ota, one of
the director who is looking after overseas clients in Japan. He declined any
details unless the inquirer name is know to him. The
concern appears to be active in its profession. It can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
3F,
Contractor Building, 41 R Kamani Marg, Ballard Estate, Mumbai – 400001 |
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Tel. No.: |
91 22 3021 7000 |
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Fax No.: |
91 22 3021 7070 |
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Website : |
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Location : |
Leased
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Branches
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Great Eastern Centre, 202, "Sobha
Alexander Plaza", |
KEY EXECUTIVES
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Management
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Mr. Boby Parikh Financial Markets E-mail bobby.parikh@bmrtax.com Mr. Mukesh Butani International & Transfer
Pricing E-mail mukesh.butani@bmrtax.com Mr. Rajeev Dimri Indirect Tax E-mail rajeev.dimri@bmrtax.com Mr. Gokul Chaudhri Energy and Infrastructure Mr. Abhishek Goenka Technology Mr. Frank D’Souza Communication, Entertainment and
Media Mr. Ajay Mehra Competency: Indirect Tax Mr. Rohit Berry Merger and Acquisition Mr. Sujit Ghosh Indirect Tax Ms. Divya Baweja |
BUSINESS DETAILS
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Line of Business : |
Company
is in engaged in Services in the Areas of Tax and regulatory Inputs Such as Corporate
tax consulting and reporting, International tax, Mergers, Acquisitions and Corporate Reorganizations , Transfer
Pricing , Local and Indirect Taxes |
GENERAL
INFORMATION
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Customers : |
Engineering
Procurement and Construction |
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Bankers : |
Not
Available |
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Facilities : |
-- |
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Banking Relations : |
Unknown
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Associates/Subsidiaries : |
Nil |
FINANCIAL DATA
[all figures are in Rupees
Millions]
Not
Known
LOCAL AGENCY
FURTHER INFORMATION
As
per Website Details
About
Us:
The Firm
BMR is a premier
professional services firm focused on providing high quality services to their
clients in the tax and regulatory area, and adding value by blending practical
business advice with tax and regulatory inputs.
We expect to realize this vision by placing their clients’ needs front and centre
at all times, by hiring the best professionals, investing continuously in their
personal and professional development, and by adhering rigorously to a set of
values that are core to everything we do.
We
believe that what clients truly value is sound technical advice, delivered in
the context of their business or commercial situation – advice that is not only
technically sound, but which is also practical, effective and implementable.
This requires going beyond the specific tax or regulatory issue to understanding
the underlying business transaction and the business imperatives, and then
applying an understanding of the tax and regulatory framework to fashion a
solution that works. We equally believe that we will gain and retain their
clients’ confidence only when we are able to provide such advice consistently,
from engagement to engagement, from one year to the next. We are passionately
committed to doing so.
Our core values
Integrity – We are committed
to integrity in their efforts, in their commitments to clients and their
people, and in their conduct.
Passion for excellence – We are
committed to working with the best clients, hiring the best people, providing
the best environment, encouraging innovation and creativity, and delivering
consistent, high quality, added value service.
Stewardship – We are committed to an
organizational philosophy where we believe that the role of all their partners
and their people is to build the firm while we are a part of it, and to leave
behind an organization that is stronger and better than when we entered it.
Personal growth – We are committed to
providing an environment that continually fosters personal and professional
growth of all their people. We will achieve this by providing a best in class
work environment, through ongoing investment in technical and professional
development, by providing challenging professional opportunities for their
people and by consistently living their values.
Respect – We are committed to a philosophy
of mutual respect, in their dealings with clients, with their people and all
their stakeholders.
Way we work
Effective tax
strategy is integral to business strategy
In today’s
environment, the tax function must contribute to financial performance of a
company like any other part functions. This is vital at a time when
opportunities as well as threats are coming from so many different directions.
Markets
are opening up around the world. Global, multilateral and bilateral trade pacts
continually influence market and supply chain structures. Delivery channels are
multiplying, with many removing barriers to entry. Companies are increasingly
pursuing marketspace through mergers, acquisitions and alliances.
As
ownership and operations cross borders, the complexity of tax grows exponentially.
Managing this complexity goes well beyond tax compliance planning.
The
benefits of using tax to the competitive advantage are too important to
underestimate. The company’s ability to captialise on the lowest effective tax
rates, whether domestically, or across multiple jurisdictions can directly
impact the market valuation. How tax is treated in a transaction can be
critical in determining the success of a new venture.
Tax,
in other words, can no longer be treated as an afterthought; it has to be an
integral part of the forward planning for the entire organization. The ability
to minimize tax and maximize value depends on the ability to implement a
forward-looking tax strategy. Moreover, to be successful, the speed at which
you can put ideas into action is critical.
You
need an advisor who can not only work with you in formulating effective tax
strategies, but also has the experience to help you implement effectively and
swiftly. With deep experience in all areas of taxation, BMR can partner with
you in creating value for the organization. We do this:
By understanding your business
We
take time to analyze the business objectives, operations and markets, so that
we are properly focused on the tax strategy.
By focusing on new business models
Whether
you are looking at creating an eBusiness venture or outsourcing, whether you
are looking to merge, acquire or franchise domestically or across
jurisdictions, we are ready to advise you on the tax implications.
By seeing the whole picture
Their
solutions look beyond the effect on a single tax. Rather, we take into account
the resulting impact across an array of taxes.
By putting ideas to work
We
continually strive to look beyond the obvious and challenge conventional
thought to craft innovative tax solutions. At the same time, we firmly believe
that every idea is only as good as its effective implementation. We are focused
on putting ideas to work for you.
From
concept to execution, we can help you enhance the impact of the tax strategy.
BMR
offers a comprehensive array of tax advisory services for businesses and
organizations of all sizes, at the local, national and international levels:
- Corporate
tax consulting and reporting
- International
tax
- Mergers,
acquisitions and corporate reorganizations
- Transfer
pricing
- Local
and indirect taxes
Services
Corporate Tax
BMR provides a
variety of tax and business support services to organizations. Their services
range from providing on-call assistance, providing point solutions for complex
transactions or business arrangements, due diligence support in mergers,
acquisitions and business reorganizations, to comprehensive assistance in
addressing all the corporate tax advisory and reporting needs on an ongoing
basis.
Transfer
pricing
For a global
transfer pricing strategy to be effective, it should address all elements of an
organization’s value chain, encompassing not only the arm’s length pricing of
tangible goods and services, but also transfers of intangible assets and group
financing arrangements. With their team of tax specialists, economists and
financial analysts, we provide assistance in the entire spectrum of transfer
pricing issues including planning, advice on and assistance with documentation
requirements to support the planning and positions adopted, and in controversy
management including representation at Revenue audits, litigation support and
assistance with Competent Authority negotiations.
Mergers &
Acquisitions
BMR specialists
have extensive experience in working on complex mergers, acquisitions and other
corporate reorganizations, both domestic as well as cross border. We have an
appreciation for the dynamics of such transactions, and the ability to blend
tax and regulatory knowledge encompassing corporate taxes, indirect taxes, corporate
laws, with practical business and commercial insights to identify transaction
structures that are effective, to pin point exposures and negotiate appropriate
warranties and indemnities and to partner with the team through the entire
transaction process from structuring to negotiation through to documentation
coordination and implementation.
International Tax
Their international
tax services address the needs of transnational corporations and companies with
international transactions. We work with companies to optimise the efficiency
of cross border investment and transaction structures, including advising on
international holding structures, planning around the housing of group
intellectual property assets, structuring hybrid entities and financing
instruments, utilizing tax treaty networks to mitigate tax withholding impacts
and enhance cash flows, structuring cross border business models such as
contract manufacturing, commissionaire arrangements, service provider entities,
and planning strategies to implement tax effective repatriation and exit
arrangements. Also, with the increasing acceptance of using dispute resolution
constructs provided within tax treaties, we have expertise in working with
Competent Authorities for the effective resolution of international tax
disputes.
Indirect Tax
BMR’s indirect tax
team provides comprehensive advice and assistance across a range of local and
indirect taxes including customs duty, excise duty, sales tax, value-added tax,
service tax, R&D cess, octroi and entry taxes. We have an appreciation for
the interplay of taxes on commercial operations, and are able to apply this
understanding to craft effective strategies around procurement, manufacturing
and distribution arrangements. Their team stays abreast of developments in the
export – import policy regime, the evolution of bilateral and multilateral
trading arrangements and the special incentives offered by states and locations
around the country in relation to various business activities. This places us in
a position to advice you proactively, anticipate regulatory challenges and plan
mitigating strategies, to help implement effectively, and to provide litigation
support in the event of a challenge. We routinely assist with classification
issues, valuation matters, contract negotiations and structuring, impact
assessments and transition planning during tax law changes and due diligence
support in mergers, acquisitions and corporate reorganizations.
Specialised Groups
Energy &
Infrastructure
Energy Overview
The Indian
hydrocarbon industry stands fifth in the world in terms of energy consumption.
The world energy demand is around 80 million barrels of oil per day of which,
India guzzles approximately 5 percent of the
world energy. India’s per capita consumption of energy is 479 kgoe and if the
burgeoning economy is any indication, this is expected to grow exponentially.
Upstream
The
estimated resources of the country stood at 32 billion tonnes (O +OEG) as on April,
2004 . India, not being self sufficient imports over 70 percent of crude
petroleum. The countries domestic oil production for 2004-05 was 33.98
million metric tonnes a third of which was produced from onshore and the rest
of it from offshore fields.
The
natural gas production for the year 2004-05 was 31.7 billion cubic meters of 28
percent was produced from the onshore fields and the rest was produced from the
offshore fields.
The
increasing dependence on imported crude causes a huge foreign exchange outflow,
which as led to a focused attention on energy security. With increasing
exploration efforts through New Exploration Licensing Policy(NELP) , the Government has signed 90
Production Sharing Contracts (PSCs) and currently offered 20 blocks under fifth round of NELP. Till date, 19 discoveries have been made in the PSCs
signed and the rest are yet being explored. One of the landmark discoveries has
been the Krishna-Godavari deepwater discovery by Reliance, which changed the
energy map of the country.
Refining
As
of March 2005, there are 18 refineries in the country (one in the private
sector). The downstream refining throughput capacity of
the country stood at 127.4 million metric tonnes. The refinery throughput for
the year 2004-05 stood at 127.1 million metric tonnes. The public sector
refineries production for the same period stood at 92.8 million metric tonnes
with capacity utilization 98.3 percent, while the private refineries production
for the same period stood ate 34.3 million metric tonnes, 104 percent capacity
utilization.
With
the increasing demand for oil products existing refineries are expanding their
capacities rapidly. New refineries are slated to come up in the near future.
According to the Hydrocarbon Vision – 2025 , the demand for oil products is
estimated at 148 million tonnes for 2006-07 , 195 million tonnes for 2011-12
and 368 million tonnes for 2024-25
With
the increasing environmental concerns, Indian refineries recently upgraded
themselves to meet the Euro III norms.
With
increasing demand for oil products, existing refineries are expanding their
capacities rapidly. New refineries are slated to come up in the near future
with MoP&NG contemplating to ramp up the country’s refining capacity with
emphasis on exports so as to compete with refineries in Singapore and west
Asian countries. This additional refining capacity for exports will help India
offset its huge crude oil import bill.
Liquefied Natural Gas (LNG)
With
the widening demand-supply gap and the technical and economic inefficiency of
natural gas pipelines to transmit gas, it pilot India into the international
LNG business.
Petronet LNG, a consortium, is the first
company that set up the LNG receiving terminal at Dahej in Gujarat. It was
designed to handle 5MMTPA (20mmscmd) of LNG and is doubling its capacity to
10MMTPA (40mmscmd) . To this date, there are 2 LNG terminals operational in
India and 4 LNG receiving terminals have been proposed to be set up in the
country.
Downstream Retailing
The
downstream retailing business till recently was dominated by the public sector
oil companies. With the deregulation of the sector, and anticipated surge in
demand of petroleum products, the country is witnessing the advent of private
domestic and multinational players in this segment.
The
retail outlet network of PSUs across the country stood at 26,606 as on March
2005. Private participation has also been on an aggressive footing. Reliance
has acquired the license to set up 5,849 retail outlets. Till date it has set
up over 400 retail outlets having an average throughput of 28,000 litres per
outlet for petrol and 3, 52000 litres for diesel. The industry average per
outlet for petrol and diesel is 37,000 and 1, 23,000 litres respectively.
Other
private companies, who have set up retail outlets, are Essar and Shell.
Private
participation in this segment is changing the way fuel was ever sold giving a
new face to in line with the international standards.
Infrastructure
Overview
Infrastructure is
the backbone of every economy. Quality infrastructure covering services of
transportation, electricity, and communications among others are the most
important necessities for unleashing high and sustained growth of the country.
India
in its second generation reforms has laid a greater thrust on infrastructure
through the federal Governments commitments made in the National Common Minimum Program.
In
2004-05, the infrastructure sector
experienced mixed outcomes. The growth rate in many key sectors accelerated.
Strong growth rates were witnessed in electricity, telecom, railway, ports,
civil aviation, etc.
Electricity
Currently,
the country’s power generation capacity is 1, 16,646 mega
watts of which thermal accounts for 69 percent, hydro and wind account for 28
percent and nuclear accounts for 2.5 percent. Besides this India has an
unutilized hydro generation capacity of 1, 50, 000 mega watts. Capacity
addition has grown at a compounded annual growth rate of 4.16 percent annually
from 1992 to 2004.
The
total generation of electricity for the year ended 2003-04 was 668.8 billion
kWh. For 2004-05 (April- Dec), the total electricity generated was 437.9
billion kWh while it was 411 billion kWh for the corresponding period last
year. The plants operated on an all India average PLF of 73.9 percent.
The
growth rate in economy, calls for a matching rate of growth in infrastructure
facilities. The growth rate for demand for power is generally higher than the
GDP and, to support the growth rate of 7 percent, the growth rate of power
supply needs to be over 10 percent annually. To meet the ever-increasing
demand, the Ministry of Power has set a goal- Mission 2012: Power for all Recognizing the
significance of this industry as the key driver for rapid economic growth the
poverty alleviation, the Government has framed a National
Electricity Policy comprising plans, aims and objectives for
generation, distribution and transmission of electricity in compliance with Electricity
Act, 2003.
Ports
Ports
form a crucial part of the transport infrastructure of the country. Economic
development has laid the emphasis on the development of coasts.
India
has around 6,000 km of natural peninsular coastline with 12 major ports
(Central Government plays policy and regulatory functions) and 185 minor ports
(guided by State Governments).
The
traffic handled at major ports in India during the period
2004-05 (April-Dec) was 278 million tonnes. It was 248 million tonnes during
the corresponding period last year. The growth rate registered in the cargo
handled by major ports was 10.9
percent
during 2004-05 (April-Dec) compared to 9.9 percent for the corresponding period
last year.
While
the container traffic has witnessed growth in India, it lags behind it the
international league.
In
order to strengthen this sector, investments continue to take place on a
substantial scale which will spur the capacities in the coming years.
Roads
The
importance of road network in the country is reinstated
with the fact that their roads carry 85 percent of the passenger traffic and 70
percent of the freight traffic of the country. Highways, which make only 2
percent of the road network by length, carry 40 percent of this traffic.
For
many years, India lagged behind many countries of the world which build express
highways. In recent years concerted effort has been undertaken under the National Highway Development Project (NHDP) to build a
connectivity of 14,279 km of highways at a total estimated cost of 65, 000
crores.
The
NHDP consists of:
- The
Golden Quadrilateral (5,846 km)
connecting the four major metro cities of Delhi, Mumbai, Chennai and
Kolkata.
- The
North-South and East-West corridors (7,300 km)
connecting Srinagar in the North to
Kanyakumari in the South and Silchar in the East to Porbandar in the West.
Further, the
Government plans to build a strong connectivity in the hinterland - Rural
connectivity, through the committed programme of e Pradhan Mantri Gram Sadak
Yojana.
Also the Government proposes top
take rehabilitation and up gradation of 10,000 km of national highway under the
NHDP Phase-III.
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.46.43 |
|
UK
Pound |
1 |
Rs.87.43 |
|
Euro |
1 |
Rs.59.80 |
RATING EXPLANATIONS
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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 |