MIRA
INFORM REPORT
|
Report Date : |
31.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SHRIRAM EPC LIMITED |
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Registered Office : |
4th Floor, Mookambia Complex, 4, Lady Desika Road,
Mylapore, Chennai-600004, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
12.06.2000 |
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Com. Reg. No.: |
18-45167 |
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CIN No.: [Company
Identification No.] |
U74210TN2000PLC045167 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES20276E |
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PAN No.: [Permanent
Account No.] |
AAFCS1410C |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
To carry on the business as an Engineering and Procurement Contractors. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 6400000 |
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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 company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
4th Floor, Mookambia Complex, 4, Lady Desika Road, Mylapore,
Chennai-600004, |
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Tel. No.: |
91-44-24990356 |
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E-Mail : |
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Website : |
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Head Office : |
9, |
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Tel. No.: |
91-44-26531592/ 3572/ 3313/ 3109 |
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Fax No.: |
91-44-26532780 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Santosh Kamat |
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Designation : |
Director |
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Address : |
F-2, Palm Bach IV, Seaward, Valmiki Nagar, Chennai-600041 |
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Date of Birth/Age : |
06.05.1964 |
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Date of Appointment : |
12.06.2000 |
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Name : |
Mr. R K Pal |
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Designation : |
Director |
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Address : |
R-17, Anna Nagar West, Chennai-600040 |
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Date of Birth/Age : |
09.04.1954 |
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Date of Appointment : |
12.06.2000 |
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Date of Ceasing : |
20.05.2005 |
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Name : |
Mr. M Amjad Shariff |
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Designation : |
54-AH- Block, 2nd Floor, Anna Nagar, Chennai-600040 |
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Address : |
04.04.1955 |
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Date of Appointment : |
26.07.2000 |
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Name : |
Mr. Peranamallur N Devarajan |
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Designation : |
Director |
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Address : |
A-1, Ground Floor, Navmunjal Nagar 2, Chembur, Mumbai-400089 |
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Date of Birth/Age : |
15.02.1935 |
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Date of Appointment : |
11.08.2001 |
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Name : |
Major General A L Suri (Retd.) |
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Designation : |
C-485, Defence Colony, New Delhi-110024 |
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Address : |
23.11.1934 |
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Date of Appointment : |
14.05.2005 |
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Name : |
Mr. Srirangam R Ramakrishnan |
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Designation : |
Director |
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Address : |
No.1005, Nanda Kaushambu Apartments, Sahibabad-201010 |
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Date of Birth/Age : |
04.02.1935 |
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Date of Appointment : |
14.05.2005 |
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Name : |
Mr. K Narayanaswamy |
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Designation : |
Director |
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Address : |
18, |
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Date of Birth/Age : |
08.01.1938 |
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Date of Appointment : |
12.06.2000 |
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Date of Ceasing : |
14.05.2005 |
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Name : |
Mr. Raja Kumar Kopnduru E C |
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Designation : |
Nominee Director of UTI Venture Funds Management Company Private
Limited |
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Address : |
No.96/A, 7th Cross, 2nd |
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Date of Birth/Age : |
28.09.1962 |
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Date of Appointment : |
20.01.2007 |
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Other Directorships : |
Consolidated Construction Consortium Limited UTI Venture Funds Management Company Private Limited |
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Name : |
Mr. Ranganathan Vathsala |
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Designation : |
Whole time Director |
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Address : |
15, |
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Date of Birth/Age : |
09.03.1952 |
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Date of Appointment : |
23.03.2006 |
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Name : |
Mr. Amrit Lal Suri |
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Designation : |
Director |
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Address : |
C-485, Defence Colony, New Delhi-110024 |
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Date of Birth/Age : |
23.11.1934 |
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Date of Appointment : |
14.05.2006 |
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Name : |
Mr. Robin C Chandra |
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Designation : |
Director |
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Address : |
555, |
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Date of Birth/Age : |
15.04.1966 |
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Date of Appointment : |
31.03.2006 |
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Name : |
Mr. Rangaswamy Sundararajan |
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Designation : |
Director |
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Address : |
30/A, |
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Date of Birth/Age : |
28.04.1948 |
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Date of Appointment : |
22.10.2005 |
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Name : |
Mr. Kalavakolanu M Sarma |
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Designation : |
Director |
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Address : |
08.07.1938 |
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Date of Appointment : |
01.07.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
|
Mr. S Shanker |
10 |
|
Mr. K Narayanswamy |
10 |
|
Mr. K Narayanswamy (On behalf of Shriram Consumer Durables And
Leasing) |
1000000 |
|
Shriram Industrial Holdings Private Limited |
4839930 |
|
Mr. Vathsala Ranganathan (On behalf of Shriram Auto Finanance) |
8910000 |
|
Shriram Group Executive Welfare Truse |
5050000 |
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Mr. T Jayaraman |
550 |
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Mr. A V S Raja |
2850 |
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Mrs. Indira Natarajan |
250 |
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Mr, V Rajalakshmi |
250 |
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Mr. S Shanker |
2400 |
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Mrs. Rama Shanker |
600 |
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Shriram City Union Finance Limited |
5000 |
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Shriram Industrial Holdings Private Limited |
6000 |
|
Arabhi Investments Private Limited |
1250 |
|
Bilahari Investments Private Limited |
9100 |
|
Mrs. Bhavani Thygarajan |
33700 |
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Shriram Chits And Investments Private Limited |
78600 |
|
Mr. R Sundaram And S Shanker |
750 |
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Shriram Housing Finance And Development Company |
106000 |
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Mr. G J R Krishnan |
157308 |
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Mr. R Raghavan |
5082 |
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Shriram Logistics Private Limited |
16705 |
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Shriram General Finance Private Limited |
4780 |
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Shriram Chits Tamilnadu Limited |
14018 |
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UNO Investments |
5000000 |
As on 31.03.2006
|
Names of Shareholders |
|
Percentage of
Holding |
|
Foreign holdings |
|
47.00 |
|
Bodies Corporate |
|
30.00 |
|
Other top 50 shareholders |
|
23.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
To carry on the business as an Engineering and Procurement
Contractors. |
GENERAL INFORMATION
|
No. of Employees : |
350 |
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Bankers : |
v
The Hongkong And Shanghai Banking Corporation
Limited, 76, v
Chennai-600086, Tamilnadu v
Citi Bank Limited v
State Bank of |
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Facilities : |
Secured Loans
(As on 31.03.2004): Cash Credit (State Bank of Hire Purchase Finance – Citi Bank Limited : Rs.0.580 million Bill Discounting – CanBank Factors Limited : Rs.1.248 millions Total : Rs.2.584
millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K S Kalyansundaram And Company Chartered Accountants |
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Address : |
14, 11th Cross Street, Indra Nagar, Adyar, Chennai-600020,
Tamilnadu |
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Associates/Subsidiaries : |
v
Shriram –PPR Technology Private Limited v
Consolidated Construction Consortium Limited v
UTI Venture Funds Management Company Private
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
Total |
|
Rs.450.000
millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
|
20000000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 millions |
|
|
Total |
|
Rs.450.000
millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20245193 |
Equity Shares |
Rs.10/- each |
Rs.202.452
millions |
|
17622597 |
Preference Shares |
Rs.10/- each |
Rs.176.226
millions |
|
|
Total |
|
Rs.378.678 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
378.678 |
202.452 |
198.000 |
|
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2] Share Application Money |
0.000 |
300.000 |
0.000 |
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|
3] Reserves & Surplus |
1222.201 |
23.671 |
6.613 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1600.879 |
526.123 |
204.613 |
|
|
LOAN FUNDS |
|
|
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1] Secured Loans |
440.958 |
158.556 |
2.584 |
|
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2] Unsecured Loans |
5.000 |
85.500 |
0.000 |
|
|
TOTAL BORROWING |
445.958 |
244.056 |
2.584 |
|
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DEFERRED TAX LIABILITIES |
2.206 |
8.222 |
3.943 |
|
|
|
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|
|
|
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TOTAL |
2049.043 |
778.401 |
211.140 |
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APPLICATION OF FUNDS |
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|
|
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|
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|
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FIXED ASSETS [Net Block] |
90.868 |
90.882 |
36.505 |
|
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
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INVESTMENT |
51.516 |
51.291 |
65.000 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
172.830
|
217.342 |
13.888 |
|
|
Sundry Debtors |
624.625
|
186.987 |
53.093 |
|
|
Cash & Bank Balances |
1056.229
|
363.640 |
12.788 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
407.531
|
160.648 |
67.851 |
|
Total
Current Assets |
2261.215 |
928.617
|
147.620 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
328.850
|
281.642 |
39.245 |
|
|
Provisions |
34.990
|
11.826 |
0.000 |
|
Total
Current Liabilities |
363.840 |
293.468
|
39.245 |
|
|
Net Current Assets |
1897.375 |
635.149
|
108.375 |
|
|
|
|
|
|
|
|
DEFERRED REVUENUE EXPENDITURE |
0.000 |
0.000 |
1.237 |
|
|
MISCELLANEOUS EXPENSES |
9.284 |
1.079 |
0.023 |
|
|
|
|
|
|
|
|
TOTAL |
2049.043 |
778.401 |
211.140 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
1411.111 |
757.995 |
213.869 |
|
|
Other Income |
9.696 |
3.007 |
4.949 |
|
|
Total Income |
1420.807 |
761.002 |
218.818 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
93.299 |
27.081 |
4.984 |
|
|
Provision for Taxation |
0.000 |
0.000 |
2.496 |
|
|
Profit/(Loss) After Tax |
93.299 |
27.081 |
2.488 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
1066.710 |
534.554 |
NA |
|
|
Contract Expenditure |
NA |
NA |
190.671 |
|
|
Salaries, Wages, Bonus, etc. |
66.411 |
28.117 |
2.667 |
|
|
Deferred Revenue and Preliminary Expenses
written off |
|
|
0.180 |
|
|
Payment to Auditors |
0.080 |
0.080 |
NA |
|
|
Interest |
38.396 |
31.595 |
NA |
|
|
Insurance Expenses |
6.858 |
1.685 |
0.189 |
|
|
Depreciation & Amortization |
11.448 |
9.523 |
1.256 |
|
|
Other Expenditure |
137.604 |
128.367 |
18.870 |
|
Total Expenditure |
1327.508 |
733.921 |
213.833 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
6.57
|
3.56 |
1.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.57
|
3.56 |
2.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.97
|
2.65 |
2.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.05 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.50
|
1.02 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.21
|
3.16 |
3.76 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets :
v
Intangible assets
v
Vehicle
v
Office equipment
v
Plant and machinery
v
Furniture and fixtures
v
Computers
Contingent
Liabilities :
v
Letter of Guarantees issued by the bank : Rs.15.412
millions
v
Letter of credit issued by the Bank : Rs.2.795
millions
Form 8 Particular for
creation or modification of charges
|
Corporation identity number or foreign company registrations number of
the company |
U74210TN2000PLC045167 |
|
Name of the company |
SHRIRAM EPC LIMITED |
|
Address |
4th Floor, Mookambia Complex, 4, Lady Desika Road,
Mylapore, Chennai-600004, |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Book debts Movable property Stocks and receivables |
|
Particular of the charge holder
|
The Hongkong And Shanghai Banking Corporation Limited 76, Chennai-600086 Tamilnadu |
|
Nature or description of the instrument creating charge |
Agreement for overdraft/ loan against hypothecation of revolving
stocks and other moveable assets and also present and future book debts |
|
Date of the instrument creating charge |
01.06.2007 |
|
Amount Secure by the charge |
Rs.100.000 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of interest Commission shall be payable by the company on banking facilities as
per banks tariff subject however that the bank shall have the right to change
the rate of commission after giving notice ot the company. Terms of repayment : In consideration of banking facilities sanctioned/ to be sanctioned by
the bank to the company. The company has hypothecated and charged to the bank
by way of exclusive charge as a continuing security, the assets mentioned in
the agreement f overdraft for stocks and receivables of GWISSB project to
secure the repayments of the advances together with interest cost and all
other charges Margin The company shall maintain such
margin a may be specified by the bank form time to time. Others In case the company fails to fulfill its obligation under the
agreement, the bank shall be entitled to take possession of the hypothecated
properties and sell them by public
auction or private contract and utilize the proceeds in full or pat
settlement of tiffs claims. |
|
Particulars of the Property charged
|
Exclusive charge on all ht company’s took in trade both present and
future including stocks of raw materials, work in progress, spare and store s
and finished good of GWSSB Project and All the company’s present and future book debts, outstanding monies,
receivables, claims due and owing to GWSSB project |
Website Details :
Subject provides a single point solution to engineering
challenges. The Company offers multi-disciplinary design, engineering,
procurement, construction and project management services.
The Company is an associate of the Shriram Group headquartered in
The Group has major operations in areas such as insurance, pharmaceuticals,
property development, software development and project engineering. The
Group’s business is in excess of US $ 3.0 Billion.
With more than 350 employees including a strong engineering and construction
team of over 220 engineers, Subject’s main strength is its human resource in
terms of knowledge and experience in process, mechanical, civil, structural,
electrical engineering and process automation. With this manpower strength,
Shriram EPC is committed to provide turnkey solutions for small Power Plants,
Ferrous and Non-Ferrous Metallurgical Industries, Water Systems including Water
Treatment Plants and Cooling Towers as well as specialized services for the
Municipal Sector such as pipe rehabilitation.
The focus of the Company is highly efficient and effective Project Management
backed by a strong engineering team. A very strong site construction and
erection team supports the project management group. Appropriate and cost
effective technology support is available from international partners.
In addition to the Shriram Group, Bessemer Venture Partners,
The Company is an associate of the Shriram Group , headquartered in
Shriram EPC has a diversified basket of
services in the field of engineering services
• Turnkey Services
• Ferrous and Non-ferrous metallurgical industries
• Power plants
• Water and wastewater treatment
• Municipal services
• Trenchless Technology
• Cooling towers
Subjec has an excellent track record and a number of plants have been
set up on “lump sum turnkey (LSTK)” basis from concept to commissioning.
Strength – Their People
The main strength is its human resource in terms of knowledge and
experience in process, mechanical, civil, structural, electrical engineering
and process automation With more than 350 employees, Shriram EPC has a strong
engineering team of 220 engineers. A very strong site erection team is
available.
Infrastructure
SEPC operates from an large Engineering Centre located at 9,
Manufacturing facilities
In- house manufacturing facilities include three factories in the
Ambattur area of Chennai. The total manufacturing area is around 25000 sq ft of
covered space with full handling facilities and sufficient open space. A fourth
facility in
Partnerships
Subject operates in partnership
with a network of Indian and international companies. Their International
Partners provide access to the latest technologies in their areas of operation.
Partnerships with Indian engineering companies permits us to extend their
capabilities and provides increased value to their customers
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.40.44 |
|
|
1 |
Rs.82.03 |
|
Euro |
1 |
Rs.55.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|