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MIRA
INFORM REPORT
|
Report Date : |
31.10.2006 |
IDENTIFICATION
DETAILS
|
Name : |
LEIGHTON
CONTRACTORS (INDIA) PRIVATE LIMITED |
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Formerly Known As: |
Leighton
Asia Limited |
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Registered Office : |
Block
No. 210, 2nd Floor, Raheja Arcade, Sector-2, C.B.D. Belapur, Navi
Mumbai, Thane 400614, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
20.11.1998 |
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Com. Reg. No.: |
11-117187 |
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CIN No.: [Company
Identification No.] |
U99999MH1998PTC117187 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML03930D |
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PAN No.: [Permanent
Account No.] |
AAACL3338D |
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Legal Form : |
A
Private Limited Liability Company. |
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Line of Business : |
Construction
service on a contractual basis |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a subsidiary of Leighton Asia (Southern) Limited, Caymen Islands. The
company is not doing well in India. It has substantial accumulated losses.
Financial position is moderate. Payments are regular. The
company can be considered for any business dealings on safe and secured trade
terms and conditions, initially |
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LOCATIONS
|
Registered Office/ Head Office : |
Block
No. 210, 2nd Floor, Raheja Arcade, Sector-2, C.B.D. Belapur, Navi
Mumbai, Thane 400614, Maharashtra |
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Tel. No.: |
91-22-26533589/
26533599 |
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Fax No.: |
91-22-26523979 |
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Corporate
Office : |
301-302,
3rd Floor, Windsor Building, CST Road, Mumbai-400098, Maharashtra,
India |
DIRECTORS
|
Name : |
Mr.
Devesh Shah |
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Designation : |
Director |
|
Address : |
D-404
Anandnagar, 4th Floor, Fortjett street, Mumbai-400036, Maharashtra |
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Date of Birth/Age : |
3.12.1965 |
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Date of Appointment : |
20.11.1998 |
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Name : |
Mr.
Nikesh Shah |
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Designation : |
Director |
|
Address : |
Trivedi
C-5, 2nd Floor, 66 Walkeshwar Road, mumbai-400006, Maharashtra |
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Date of Birth/Age : |
1.9.1968 |
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Date of Appointment : |
21.2.2000 |
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Name : |
Mr.
Paul Edward Gibney |
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Designation : |
Director |
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Address : |
6th
Floor, SPC Building, 1 Soi Chaemchan, Sukhumvit 55 Road, Bangkok 10110,
Thailand |
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Date of Birth/Age : |
3.11.1956 |
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Date of Appointment : |
20.11.1998 |
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Name : |
Mr.
Thomas David Davidson |
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Designation : |
Director |
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Address : |
NA |
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Date of Birth/Age : |
30.12.1942 |
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Date of Appointment : |
13.7.2000 |
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Name : |
Mr.
William Kernot Hamilton |
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Designation : |
Director |
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Address : |
6th
Floor, SPC Building, 1 Soi Chaemchan, Sukhumvit 55 Road, Bangkok 10110,
Thailand |
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Date of Birth/Age : |
3.11.1954 |
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Date of Appointment : |
20.11.1998 |
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Name : |
Mr.
Stephen Le Cornu |
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Designation : |
Director |
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Address : |
6th
Floor, SPC Building, 1 Soi Chaemchan, Sukhumvit 55 Road, Bangkok 10110,
Thailand |
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Date of Birth/Age : |
4.6.1954 |
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Date of Appointment : |
1.12.2000 |
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Name : |
Mr.
Eric Owen Wardle |
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Designation : |
Director |
|
Address : |
4,
Shenton Way, #14-05/06 SGX Centre 2, Singapore 068807 |
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Date of Birth/Age : |
20.8.1963 |
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Date of Appointment : |
6.3.2003 |
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Name : |
Mr.
Suresh Seshadri |
|
Designation : |
Manager |
|
Address : |
Flat
no. 202, Pushpam, Plot 6, Sector 21, Nerul, Navin mumbai-400706 |
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Date of Birth/Age : |
12.7.1972 |
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Date of Appointment : |
3.7.2000 |
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|
Name : |
Mr.
David George Savage |
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Designation : |
Director |
|
Address : |
C/o
Leighton Asia (Southern) Limited 13th Floor, Menara Multipurpose,
no. 8, Jalan Munshi Abdullah 50100, Kuala Lumpur, Malaysia |
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Date of Birth/Age : |
28.4.1960 |
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Date of Appointment : |
6.3.2003 |
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Name : |
Mr.
Rusell John Waugh |
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Designation : |
Director |
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Address : |
601/602,
Simran, Plot no. 9, 15th Road, Khar (W), Mumbai-400052 |
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Date of Birth/Age : |
25.4.1966 |
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Date of Appointment : |
27.6.2005 |
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Name : |
Mr.
Alan John Hill |
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Designation : |
Director |
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Address : |
202,
Palm beach Building, 2nd floor, Riviera CHS, Gandhi Gram Road,
Juhu, Mumbai-400049 |
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Date of Birth/Age : |
22.12.1949 |
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Date of Appointment : |
27.6.2005 |
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|
Name : |
Mr.
Michael James Connolly |
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Designation : |
Dircetor |
|
Address : |
C/o
Leighton Asia (Southern) Limited 13th Floor, Menara Multipurpose,
no. 8, Jalan Munshi Abdullah 50100, Kuala Lumpur, Malaysia |
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Date of Birth/Age : |
15.7.1967 |
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Date of Appointment : |
27.6.2005 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
Type |
No. of Shares |
|
|
|
|
|
Leighton
Asia (Southern) Limited |
Equity |
9,99,999 |
|
Leighton
Asia (Southern) Limited |
Preference |
53,41,311 |
|
Leighton
Contractors (Singapore)Private Limited |
Equity |
1 |
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|
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BUSINESS DETAILS
|
Line of Business : |
Construction
service on a contractual basis |
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GENERAL
INFORMATION
|
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Bankers : |
NA |
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Auditors : |
BSR
and Associates Chartered
Accountant |
|
Address: |
KPMG
House, Kamala Mills Compaound, 448, Senapati Bapat Marg, Lower parel,
Mumbai-400013 |
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Tel. No.: |
91-22-24913033/
24913131 |
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Fax No.: |
91-22-24913132 |
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Associates : |
Leighton
Asia (Southern) Limited Leighton
Contractors (Singapore) Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000 |
Equity
Shares |
Rs. 10/- each |
Rs. 15.000 millions |
|
8500000 |
Preference
Shares |
Rs. 10/- each |
Rs. 85.000 millions |
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 millions |
|
5341311 |
Preference
Shares |
Rs. 10/- each |
Rs. 53.413 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 |
|
63.413 |
0.101 |
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|
2] Share Application Money |
|
- |
0.459 |
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|
NETWORTH |
|
63.413 |
0.561 |
|
|
LOAN FUNDS |
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|
1] Secured Loans |
|
- |
- |
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2] Unsecured Loans |
|
2.053 |
0.655 |
|
|
TOTAL BORROWING |
|
2.053 |
0.655 |
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|
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TOTAL |
|
65.466 |
1.216 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
11.391 |
0.345 |
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Capital work-in-progress |
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INVESTMENT |
|
- |
- |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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|
Cash & Bank Balances |
|
37.052 |
0.0.25 |
|
|
Other Current Assets |
|
0.047 |
- |
|
|
Loans & Advances |
|
9.441 |
0.205 |
|
Total Current Assets |
|
46.540 |
0.250 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
|
|
1.290 |
|
|
Provisions |
|
|
0.035 |
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Total Current Liabilities |
|
30.235 |
1.325 |
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|
Net Current Assets/
(Liabilities) |
|
16.305 |
(1.095) |
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Profit & Loss A/c |
|
37.769 |
1.962 |
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TOTAL |
|
65.466 |
1.216 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
0.060 |
12.045 |
|
|
|
|
|
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Profit/(Loss)
Before Tax |
|
(35.803) |
10.131 |
|
Provision
for Taxation |
|
- |
0.080 |
|
Profit/(Loss)
After Tax |
|
(35.803) |
10.211 |
|
|
|
|
|
|
Total
Expenditure |
|
(35.743) |
22.256 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
(59671.67) |
86 |
|
|
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|
Net Profit
Margin (PBT/Sales) |
(%) |
|
(59671.67) |
86 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
(61.80) |
1702.69 |
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Return
on Investment (ROI) (PBT/Networth) |
|
|
(0.16) |
18.06 |
|
|
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|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
0.51 |
3.53 |
|
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|
|
|
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|
Current
Ratio (Current
Asset/Current Liability) |
|
|
1.54 |
0.19 |
LOCAL AGENCY
FURTHER INFORMATION
Leighton
is one of Asia's leading contractors and project
developers operating in civil engineering and infrastructure, building, rail,
marine mining and resources, petrochemical and the process sector.
The company operates through separate entities: Leighton Asia (Northern) which
incorporates operations in Hong Kong, Macau, China, Taiwan, the Philippines,
Thailand, Vietnam, Laos and Cambodia; and Leighton Asia (Southern) which
incorporates operations in Malaysia, Indonesia, Singapore, Brunei, Sri Lanka
and India.
In India, Leighton Contractors (India) Private Limited is a division of
Leighton Group as a whole. Presently, the company is executing an EPC project for Nokia
at Sriperembudur in Chennai, which is a green field project
heading for completion.
As a leading contractor operating in Asia, the company's oil and gas sector
represents a key area of focus for the development of its business in the
region. S.V. Rajadhyaksha, Director (BD), says, "In India we are going in
a big way in the oil and gas sector with various operators including ONGC. We
are looking for an opportunity from ONGC but so far we have not succeeded in
getting an award for the work, but I believe the situation will change
radically within the next few months."
The Group's capabilities in oil and gas include terminal, hydrocarbon, storage
facilities as well as marine loading and export facilities. The company even
builds offshore concrete gravity structures, pipelines (offshore and onshore)
and hydrocarbon receiving and process facilities.
On the issue of cost escalation, Rajadhyaksha commented, "The issue should
be tackled in both ways. During the last three years, some of the major
contractors in India have suffered because of an abrupt spurt in steel prices.
There was no adequate protection by the then escalation agreement, which was
prevalent in the contracts. So whatever escalation, the contractors never got
enough."
The basic idea is that contractors and end-users should not suffer. Thus, under
this situation there should not be any escalation formula. If an escalation
formula exists, it won't harm contractors, and if it does not exist, one should
make sure there is adequate compensation for suffering contractors.
Rajadhyaksha believes that infrastructure development in India will continue
not only for the next four to five years, but for 15 to 20 years. He stressed
that if India wants the infrastructure boom to continue, there should be immense
increase in its coal, iron and ore production. If this scenario remains for at
least 10 years, then automatically there will be boom in the infrastructure
sector.
Directors:
Mr.
David Savage, Mr. Rusell Waugh, Mr. Alan Hill, Mr. Michael Connolly are liable
to retire and being eligible offer themselves for reappointment
Background:
Leighton
Contractors (India) Private Limited was incorporated on 20.11.31998. the
company is a subsidiary of Leighton Asia (Southern) Limited (formerly Leighton
Asia Limited)a company incorporated in the Cayman island
The
company offers a broad range of construction service on a contractual basis.
Activities include engineering and building construction, contract mining,
marine pipelines besides a host of other infrastructure activities. However,
during the current year, the company has not entered into any accounts.
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.44.93 |
|
UK
Pound |
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.57.34 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
24 |
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 EXPLANATIONS
|
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 |