MIRA
INFORM REPORT
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Report Date : |
27.08.2007 |
IDENTIFICATION DETAILS
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Name : |
PARSVNATH DEVELOPERS LIMITED |
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Registered Office : |
6th Floor, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.07.1990 |
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Com. Reg. No.: |
40945 |
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CIN No.: [Company
Identification No.] |
L45201DL1990PLC040945 |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on Stock
Exchange. |
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Line of Business : |
The Company is engaged in the business of promotion, construction and
development of integrated townships, residential & commercial complex,
multistoried buildings, flats, houses, apartments, shopping malls, IT parks,
hotels etc. |
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 58000000 |
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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 in the Indian real
estate industry. Available information indicates high financial
responsibility of the company. Trade relations are reported as fair. Business
is active. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
6th Floor, |
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Tel. No.: |
91-11-23310198 /23350120 (20 lines) |
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Fax No.: |
91-11-23315400, 23355565 |
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E-Mail : |
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Website : |
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Residential Tel No. : |
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Retail Tel No. : |
91-9818583626, 9910159775, 9871926291,
9910990173 |
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E-Mail : |
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International
Marketing : Tel No. : |
91-9818625377 |
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E-Mail : |
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Corporate marketing : |
91-9910990171 |
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E-Mail : |
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Investors : E-Mail : |
DIRECTORS
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Name : |
Mr. Pradeep Jain |
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Designation : |
Chairman |
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Date of Birth/Age : |
42 Years |
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Qualification : |
Graduate |
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Experience : |
21 Years |
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Date of Appointment : |
01.04.2002 |
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Previous Employment : |
Parasnath And Associates Private
Limited / Director. |
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Name : |
Mrs. Nutan Jain |
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Designation : |
Vice Chairman |
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Date of Birth/Age : |
25.11.1965 |
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Qualification : |
M.Com; Post Graduate in Hospitality Administration |
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Experience : |
Non-executive Director of the Company w.e.f. 23.12.2005 |
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Previous Employment : |
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Name : |
Mr. Sanjeev Jain |
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Designation : |
Managing Director |
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Date of Birth/Age : |
36 Years |
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Qualification : |
B. E. [Civil] |
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Experience : |
15 Years |
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Date of Appointment : |
01.04.2002 |
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Previous Employment : |
Parasnath And Associates Private
Limited / Director. |
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Name : |
Mr. Rajeev Jain |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
34 Years |
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Qualification : |
M.B.B.S. |
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Experience : |
9 Years |
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Date of Appointment : |
01.11.2001 |
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Previous Employment : |
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Name : |
Mr. G R Gogia |
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Designation : |
Director |
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Date of Birth/Age : |
72 Years |
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Qualification : |
B.A. [Hons.] LLB |
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Experience : |
45 Years |
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Date of Appointment : |
01.04.2004 |
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Previous Employment : |
Ansal Properties & Industries Limited / Director. |
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Name : |
Mr. Ashok Kumar |
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Designation : |
Director |
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Name : |
Mr. Sunil Kumar Jain |
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Designation : |
Director |
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Date of Birth/Age : |
21.07.1962 |
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Qualification : |
B. com. |
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Experience : |
More than 20 Years |
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Previous Employment : |
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Name : |
Mr. Subhash Kathuria |
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Designation : |
Director |
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Name : |
Mr. R N Lakhotia |
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Designation : |
Director |
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Date of Birth/Age : |
26.04.1932 |
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Qualification : |
M.Com; LL.B; Honorary Degree of Doctorate in Taxation |
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Experience : |
He previously worked with Indian Revenue Service and is currently a practicing
advocate and tax consultant. He has also authored several books on taxation. |
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Previous Employment : |
Parsvnath Developers Limited |
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Membership : |
Parsvnath Developers Limited Audit Committee |
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Name : |
Mr. R J Kamath |
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Designation : |
Director |
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Name : |
Mr. Vijay B Raheja |
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Designation : |
Director |
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Name : |
Mrs. Pritam Singh |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. V Mohan |
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Designation : |
Vice President & Company
Secretary |
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Name : |
Mr. Sunit Sachar |
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Designation : |
Chief Operating Officer (Uttar Pradesh) |
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Date of Birth/Age : |
54 Years |
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Qualification : |
B.Com, PGDASM, MCBA'83 |
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Experience : |
29 Years |
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Date of Appointment : |
16.04.2002 |
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Previous Employment : |
Sarvpriya Developers Limited / CEO |
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Name : |
Mr. J.B. Karamchandani |
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Designation : |
Vice President (Architecture) |
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Date of Birth/Age : |
59 Years |
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Qualification : |
B. Arch. |
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Experience : |
36 Years |
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Date of Appointment : |
13.10.2003 |
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Previous Employment : |
Omaxe Limited / Sr. V.P. (Arch.) |
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Name : |
Mr. Prehlad Kumar Jain |
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Designation : |
Advisor |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B.E. (Civil) |
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Experience : |
37 Years |
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Date of Appointment : |
27.09.2004 |
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Previous Employment : |
IDEB Constructions Private Limited/ E.D. |
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Name : |
Mr. S.P. Oberoi |
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Designation : |
Chief Operating Officer (South) |
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Date of Birth/Age : |
64 Years |
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Qualification : |
B. Arch., B.E. (Civil), MBA. |
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Experience : |
42 Years |
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Date of Appointment : |
01.01.2005 |
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Previous Employment : |
Ansal Buildwell Limited / E.D. |
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Name : |
Mr. Ravinder Babbar |
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Designation : |
Chief Operating Officer (Rajasthan) |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B.Sc, M.B.A. |
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Experience : |
33 Years |
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Date of Appointment : |
02.05.2005 |
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Previous Employment : |
Malibu Estate Private
Limited / CEO |
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Name : |
Dr. B.P. Dhaka |
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Designation : |
Chief Operating Officer (Madhya Pradesh) & H.R.
Systems |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B.E., LIB., Ph.D. |
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Experience : |
32 Years |
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Date of Appointment : |
02.01.2006 |
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Previous Employment : |
PHD Chamber of Commerce & Industry / Secretary General
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Name : |
Mr. Pawan Kumar Gupta |
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Designation : |
Chief Operating Officer
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Date of Birth/Age : |
42 Years |
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Qualification : |
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Experience : |
17 Years |
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Date of Appointment : |
11.05.2006 |
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Name : |
Mr. Anuraag Govind |
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Designation : |
Chief Operating Officer
(West) |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B.A. (Hons.) |
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Experience : |
22 Years |
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Date of Appointment : |
01.11.2006 |
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Previous Employment : |
Landmark Builders Private
Limited/ President. |
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Name : |
Mr. Abdul Rab |
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Designation : |
Vice President (Business Development-Retail) |
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Date of Birth/Age : |
33 Years |
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Qualification : |
M.B.A. |
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Experience : |
10 Years |
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Date of Appointment : |
17.02.2007 |
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Previous Employment : |
Suncity Projects Private
Limited / G.M. |
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Name : |
Mr. Samir Bhupendra Shah |
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Designation : |
Vice President
(Strategic Initiatives & IR) |
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Date of Birth/Age : |
42 Years |
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Qualification : |
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Experience : |
21 Years |
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Previous Employment : |
Suzlon Energy Limited / G.M. (Corporate Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Individuals |
19372148 |
10.49 |
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Corporates |
8241168 |
4.46 |
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Financial
Institutions / Banks |
231971 |
0.13 |
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Mutual Funds |
1089728 |
0.59 |
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Flls |
5723662 |
3.10 |
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Promoters |
148370400 |
80.33 |
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Others |
1666123 |
0.90 |
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TOTAL |
184696200 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The Company is engaged in the business of promotion, construction and
development of integrated townships, residential & commercial complex,
multistoried buildings, flats, houses, apartments, shopping malls, IT parks,
hotels etc. |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
875 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
MCT House, One Okhla Centre, Block A, Okhla Institutional Area, |
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Joint Venture : |
• Ratan Parsvnath Developers AOP • Parsvnath Developers AOP |
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Associates : |
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Subsidiaries : |
• Parsvnath SEZ Limited • Parsvnath Film City Limited • Parsvnath Landmark Developers Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 2000.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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184,696,200 |
Equity Shares |
Rs. 10/- each |
Rs. 1846.962
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1846.962 |
989.136 |
82.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
12779.844 |
1022.370 |
940.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
14626.806 |
2011.506 |
1023.300 |
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LOAN FUNDS |
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1] Secured Loans |
10118.349 |
2358.499 |
1207.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
10118.349 |
2358.499 |
1207.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
24745.155 |
4370.005 |
2230.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
712.858 |
356.270 |
171.800 |
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Capital work-in-progress |
387.263 |
172.690 |
0.000 |
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INVESTMENT |
828.627 |
80.149 |
42.100 |
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DEFERREX TAX ASSETS |
32.090 |
0.593 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
13419.115
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3894.168 |
2356.900 |
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Sundry Debtors |
4225.893
|
637.708 |
433.800 |
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Cash & Bank Balances |
5443.587
|
412.447 |
841.000 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
7629.010
|
3608.481 |
1481.500 |
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Total
Current Assets |
30717.605
|
8552.804 |
5113.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7347.706
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4542.381 |
2970.000 |
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Provisions |
585.582
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250.120 |
127.100 |
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Total
Current Liabilities |
7933.288
|
4792.501 |
3097.100 |
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Net Current Assets |
22784.317
|
3760.303 |
2016.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.300 |
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TOTAL |
24745.155 |
4370.005 |
2230.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
12361.365 |
6438.324 |
3032.100 |
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Other Income |
248.455 |
99.344 |
1151.200 |
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Total Income |
12609.820 |
6537.668 |
4183.300 |
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Profit/(Loss) Before Tax |
3479.049 |
1457.915 |
733.300 |
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Provision for Taxation |
761.292 |
395.457 |
74.400 |
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Profit/(Loss) After Tax |
2717.757 |
1062.458 |
658.900 |
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Expenditures : |
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Cost of construction / development |
8247.194 |
4649.533 |
0.000 |
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Personnel Costs |
215.981 |
75.573 |
0.000 |
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Selling, Administrative and other Expenses |
333.128 |
269.021 |
188.200 |
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Finance Expenses |
193.034 |
26.872 |
10.600 |
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Depreciation & Amortization |
141.434 |
58.754 |
14.300 |
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Other Expenditure |
0.000 |
0.000 |
3374.600 |
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Total Expenditure |
9130.771 |
5079.753 |
3587.700 |
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QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2007 |
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Sales Turnover |
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|
3461.600 |
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Other Income |
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|
107.000 |
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Total Income |
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|
3568.600 |
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Total Expenditure |
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|
2323.900 |
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Operating Profit |
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|
1244.700 |
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Interest |
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|
32.800 |
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Gross Profit |
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|
1211.900 |
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Depreciation |
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|
48.500 |
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Tax |
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|
328.900 |
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Reported PAT |
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|
844.600 |
Notes
200706
Quarter 1 –
Expenditure Includes Cost of construction/development Rs
2162.83 million Staff cost Rs 71.51 million Other expenditure Rs 89.45 million Provision
for Taxation Includes Current Tax Rs 327.50 million Deferred Tax Rs
(10.06)million Fringe Benefit Tax Rs 1.40 million EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended June 30, 2007 Complaints
Pending at the beginning of the quarter 174 Complaints Received during the
quarter 1099 Complaints disposed off during the quarter 1266 Complaints
unresolved at the end of the quarter 07 1. The above financial results have
been reviewed by the Audit Committee and approved by the Board of Directors at
their respective meetings held on July 30, 2007. 2. The details of funds raised
through IPO and utilisation of such funds are given below: (Rs in Millions)
Funds raised through Initial Public Offer - 9971.40 Funds raised through Green
Shoe Option - 926.34 Total funds raised - 10897.74 Utilisation Expenditure on
development and construction of Projects Specified for IPO - 4873.74 IPO
Expenses including Advertisement - 458.11 Expenses for post listing &
General Corporate Purposes - 926.34 Total funds utilised up to June 30, 2007 -
6258.19 Balance as at June 30, 2007 - 4639.55 The unutilised funds as at June
30, 2007 have been temporarily invested in short term investments and for
reducing bank overdrafts. 3. The consolidated financial results have been
prepared in accordance with AS 21. Accounting Standards on Consolidated
Financial Statements, AS 27 - Financial Reporting of Interests in Joint
Ventures and AS 23 Accounting for investments in Associates in Consolidated
Financial Statements. 4. AS 21 for preparation of consolidated financial
statements was not applicable on the company in the corresponding quarter of
the previous financial year. Hence, consolidated financial results for the said
quarter of the previous year have not bean given. 5. The statutory auditors
have carried out a limited review of the unaudited financial results of the
company for the quarter ended June 30, 2007. 6. Figures for the previous period
/ year have been regrouped, wherever necessary, for the purpose of comparison.
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.75 |
1.17 |
1.21 |
|
Long Term Debt-Equity Ratio |
0.58 |
1.08 |
1.18 |
|
Current Ratio |
2.38 |
1.64 |
1.71 |
|
TURNOVER RATIOS |
|
|
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|
Fixed Assets |
17.78 |
19.76 |
21.92 |
|
Inventory |
1.43 |
2.06 |
1.64 |
|
Debtors |
5.08 |
12.02 |
10.76 |
|
Interest Cover Ratio |
7.17 |
12.70 |
70.18 |
|
Operating Profit Margin(%) |
33.85 |
25.49 |
25.01 |
|
Profit Before Interest And Tax
Margin(%) |
32.71 |
24.58 |
24.53 |
|
Cash Profit Margin(%) |
23.13 |
17.41 |
22.20 |
|
Adjusted Net Profit Margin(%) |
21.99 |
16.50 |
21.73 |
|
Return On Capital Employed(%) |
27.77 |
47.95 |
48.11 |
|
Return On Net Worth(%) |
32.67 |
70.01 |
94.03 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.339.50/- |
|
Low |
Rs.324.70/- |
LOCAL AGENCY FURTHER INFORMATION
Business
The sleeping giant has woken
The
large Indian economy which slumbered through most of its first 50
post-independence years as a potent giant is now up and looms large. The Indian
GDP growth rate is now within striking range of a double digit figure.
To
sustain the progress of the Indian economic juggernaut, a strong foundation in terms
of well developed nfrastructure facilities is indispensable. This has resulted
in a boom in the infrastructure segment over the last few years. The multiplier
to this force has been strong political will demonstrated by the .Central and
State Governments in the form of huge budgetary outlays. Resultantly, growth in
the Indian infrastructure sector continues to unfold, displaying tremendous
potential. This potential and the likelihood of it being fulfilled is evident
in the interest displayed by international property developers in
Hereunder,
they have snapshots of the growth opportunities of the market segments they
operate in:
Residential
Projects
As the
Indian economy continues its march ahead various regions like Pune, Gurgaon etc
have emerged as the most sought after realty locations in the light of the
commercial development in these cities.
On
account of saturation in the metros, development has extended to the non-metros
which would be key growth drivers going forward. they have been early to detect
this trend and have positioned ourselves to ride the resultant boom. Tax breaks
and a softer interest rate regime in the past enabled many individuals to
achieve superior housing affordability.
Besides
the rising disposable incomes, the demographic impetus provided by over 60% of
the total Indian population in the working category, has fuelled the demand for
residential properties. Furthermore, for the affluent class, real estate has
emerged as a promising investment option. On the demand side , the Planning
Commission in Indiahas estimated a
housing shortage of 25 million housing units. Going forward, in the view of the
demand supply gap and the quantum of investments required , organized real
estate developers from the private segment have tremendous growth prospects.
Here, the vast experience and grassroots expertise of their
management team provides them the cutting edge.
Commercial Complexes
Offices
As
their economy integrates with that of the world,
Retail
Formats
With the rising standard of living, organized retail
is the order of the day. One of the fastest growing sectors in the economy, the
demand from this segment comes in two forms. The first involves expansion plans
of existing players as they are increasing and consolidating their presence by
rolling out new outlets. The second from the new players who have forayed into
this space recently. Besides, many foreign players are waiting in the wings to
enter and establish a footprint in the highly lucrative Indian market.
Malls which have a variety of products under one
roof, are also in demand. All this, increases the demand for premium property
developers with a sound track record to execute such projects. Here too,
Parsvnath Developers is well poised to cash in on the latent demand.
Organized
retail formats account for only 3% of the total sales at present and is
expected to grow at the rate of 25- 3 0 % CAGR (Compounded Annual Growth Rate).
The total investment plans of the major players who are the new entrants in
this space are to the tune of Rs. 700 billion.
By 2010-11, the additional retail space expected to
be generated is pegged at around 300 million square feet To sum up, this is the
size of the market, real estate developers are targeting within this segment A
huge opportunity beckons, and they are well poised to benefit therefrom.
Multiplexes
With the advent of multiplexes, the Indian movie
exhibition business has been literally re-engineered. The major listed
companies in this space have registered unprecedented growth rates in topline
ami bottomline which clearly stems from the roB out of new properties.
demographic impetus provided by the rising middle class of
180-- 300 million people.
Various
state governments have provided entertainment tax exemptions for multiplexes
which make the multiplex business even more lucrative. Furthermore, the
opportunity for real estate developers is underlined by the fact that almost
all companies have announced major capacity expansion preceded by huge fund
raising activities. It is estimated that the top players are planning to add
1000 screens by the end of the next two years. Having won significant projects,
their company with its strong reputation and know-how is confident of
strengthening its foothold, in this lucrative segment.
Hotels
As
tourist arrivals in
All in
all, this translates into a newer source of projects for their company which
they have already forayed into and expect to garner a bigger pie in this
segment. Add to this, the upcoming Asian games in the national capital, their
home turf, and it becomes clear how potent this segment can be as another
growth driverfor us.
Special Economic Zones
Special
Economic Zones (SEZs) are dedicated geographical zones, which enjoy economic
incentives provided by the Government. They are aimed at encouraging export
oriented units, attracting foreign capital and thus promoting overall economic
growth. Their significance lies in the fact that with the 63 notified Special
Economic Zones, it is expected that total investment will be Rs.500,000 million
and 15 lakh additional jobs will be created by
December
2009. If the 234 formal approvals become operational, at a total investment of
Rs.3,000 billion, 4 million additional jobs will be created by December 2009.
As the
Indian Economy continues its march ahead, SEZs are viewed as the future engines
of growth and thus provides a huge opportunity for real estate developers.
Notably the major expansion plans have been announced by companies in the Tier
II and Tier III cities and towns besides the metros. Considering as they have
already fine-tuned their positioning having anticipated this trend, the
dividends that lie ahead should be substantial.
Building Dreams
The
company earns income from sale of residential plots, individual houses, and
group housing units; where as the shopping and commercial complexes are either
sold or are given on lease. The company is developing 18 integrated townships
with an estimated area of 79.9 million square feet.
Key Projects
Beyond Bricks and Mortar
This
segment includes stand alone dwelling units, high-rise apartments and row
houses. Their forte lies in understanding the target population in terms of
their economic standards and composing a development plan accordingly.
The
company sells residential plots, individual houses and group housing units.The
company is developing 32 Residential complexes with an estimated saleable area
of 32.63 million square feet.
Key Projects
The
Group Housing Project at
Parsvnath
Privilege at Greater Noida is being developed over an area of 2.05 lac sq uare
feet. Other projects initiated in this segment include - Parsvnath Paramount -
Riding the
Economic Boom
It
involves construction and development of Shopping Malls, Multiplexes, Hotel,
and Office premises. With favourable demographics against the backdrop of
strong economic fundamentals, the demand for commercial space is rising Leading
this demand from the forefront are the Retail and IT segments besides I ndia's
positioning as a global outsourcing hub. As the standard of living rises demand
for entertainment is also surging. These developments are not restricted to the
Tier I cities alone. Resultantly, Parsvnath's foray into Tier-l I cities will
prove profitable.
The company earns income from sales as well as lease rentals
under this segment.
Key Projects
Rohini
Mall Project - Twin District Centre Rohini,
Parsvnath
City Mall being developed at City Centre Faridabad, Haryana is having a
saleable area of 1.68 lac square feet.
Riding the
Economic Boom
Delhi Metro Rail Corporation Projects
As
part of commercial complexes, their company undertakes projects for Delhi Metro
Railway Corporation (DMRC) on a Build- Operate-Transfer basis. The scope of the
projects encompasses building Shopping malls and Shopping complexes at railway
stations.
They
have already completed 6 DMRC Projects with a leasable area of 0.33 million
square feet. Another 6 DMRC projects are in hand, comprising a leasable area of
1.73 million square feet these would be completed by the year 2010. Rental
income for a period of either 12 or 30 years are received.
Key
projects
They
have recently been awarded two projects for development of Metro Stations with
Integrated Commercial Development involving construction of station building,
platforms, piers and bridges for the tracks in the proposed locations for Metro
Stations at Azadpur and Akshardham Delhi. The total leaseable area would be
2.97 lac square feet and 2.96 square feet respectively Besides they are also
developing Parsvnath Metro Mall outside Welcome Metro Station,
Addressing Risks
The company proactively addresses the business risks
associated with the company.
Cyclical nature of business
The real
estate industry is cyclical in nature and one should look at it from the longer
term horizon. However, the Indian economy has seen the pains of transition and
is now well and truly on a roll. Parsvnath has in the past, survived the ups
and downs in the economy and has emerged an outperforrner They are confident of
consistent
performance
in the future backed by their experience and expertise.
Concentration of Residential Projects
They have
taken concrete steps towards diversifying their business model and reducing the
dependence on residential projects. They am to consolidate and grow in the
business segments n which they operate. Equipped
with
this experience, v; * are confident of undertaking projects in other segmems
like shopping malls, hotels, IT
Parks
and SEZs. Diversification into new segments is an integrated aspect of their
strategy.
Scalability and Execution
They
have launched various projects and have been awarded big contracts during the
year, raising queries on management of scalability and execution. However with
experience spanning over two decades at the grassroot level, they have
developed significant expertise. Their strong project monitoring system ensures
disciplined completion of the projects. Up-to-date records on each and every
aspect of the project, ranging from material purchase, regulatory adherence,
operations control and health and safety norms ensure that they deliver
consistent and quality output. W-? are at present undertaking 103 projects with
a total dtn elopment area of 153,46 million square feet of which cc islruction
and development has commenced on 66 miiK- n square feet.
Uncertainty about Special Economic Zones
They
propose to develop 16 SEZs of which formal approvals for 4 and in-principle
approvals for 8, have been received. They will go ahead provided the government
continues the tax incentives; else there is always a possibility of developing
another real estate format over these areas. Either ways the company will
benefit in terms of revenues.
Interest rate risk
Rising
interest costs would marginally impact the margins and it would also impact the
further investments as the cost of the projects may go up. The impact of rising
interest costs would however, have only a marginal impact in the near term due
to the recent raising of funds through the public offer which will give them
leverage and meet their fund requirements. Further, tor the future projects the
increased interest risk would be factored,
Withdrawal of Section 801A
This
move in the recent Union Budget will hamper the margins of companies availing
this benefit for its projects. However, their current project portfolio has
lower component of these properties. Also, the growth they are expecting is far
higher and they will not be significantly affected bythe withdrawal of this
section.
Rising
Input Costs
As a
prudent business policy, Parsvnath undertakes most construction processes
in-house. It has long term relationship with its vendors and considering the
company's scale of operations, it is able to leverage on it to obtain quality
raw material at reasonable rates. The just-in-time inventory principle followed
by the company
Building the Future
They
are developing a
Film Studio
-Digital Studios like film, television and multipurpose
studios
- Post production facilities for digital films
- Model high-tech Animation facility
- Modern high-tech Gaming facilities
-Administration, Cafeteria and Corridors
-The
- Gaming, Animation and special effects
Multimedia Entertainment Centre
- Minimum 4 screen Multiplex with atotal seating capacity of
900
- A hotel with a provision of at least 200 rooms
- Commercial space for food parlours, games centers,
internet cafe, exhibition center etc.
-Adequate parking facility
-
Facility for multimediate studies with all its components
- Animation
and modern equipments for animations of international Standards
-
Gaming with various software and tools required for gaming and its applications
-
Research center having animation technique for distance education for improving
its delivery system.
The
project will be implemented by the Company through its Subsidiary viz.
Parsvnath Film City Limited with suitable tie-up with technical associates for
this project. They intend replicating this model in various other parts of the
country.
REVIEW
OF OPERATIONS:
Financial Results:
The Directors are pleased to state that during the year
under review, the Company achieved a turnover and operating income of Rs.
12609.82 Millions compared to Rs. 6537.66 Millions in the previous financial
year, registering an increase of 92.88%. Gross Profit before Interest,
Depreciation and Tax was substantially higher at Rs. 3813.52 Millions compared
to Rs. 1543.54 Millions in the previous financial year inspite of increased
cost of inputs. Net Profit after tax stood at Rs. 2717.76 Millions as against
of Rs. 1062.46 Millions in the previous financial year registering an increase
of 155.80%. Thus, the Company scaled new heights in revenue and
profitability.
Transfer
to Reserves:
A sum of Rs. 1700 Millions and Rs. 300 Millions is being transferred to
Debenture Redemption Reserve and General Reserve respectively.
Operational Performance:
During the year, the Company has won major projects like the development of
Multimedia-cum-film city centre at Sarangpur in Chandigarh at a total cost of
approximately Rs. 5000 Millions and announced various initiatives like the
launch of a 5-star Hotel and Multiplex-cum-Commercial Mall project at Vejalpur
in Ahmedabad besides, the launch of Parsvnath City, a high-end residential
township at Dharuhera in Haryana at an approximate cost of Rs. 4580 Millions.
The revenues from these projects will significantly bolster their financials
going ahead.
FINANCE:
Initial Public Offering:
To further augment the Capital base for future growth plans, the Company made a
successful Initial Public Offering (IPO) through Book Building process of
3,63,25,800 Equity Shares of Rs. 10 each at a premium of Rs. 290 per Share,
including a Green Shoe Option (GSO) of 30,87,800 Equity Shares offered by
Parasnath And Associates Private
Limited, one of the Promoters of the Company. The issue was subscribed
by over 56 times. The Equity Shares issued to the Public and Green Shoe
Lender after exercise of GSO by the Stabilising Agent, were listed on National
Stock Exchange of India Limited and Bombay Stock Exchange Limited on 30.11.2006
and 16.01.2007 respectively. Thus, the IPO constituted 19.67% of the fully
diluted post issue Paid-up Share Capital of the Company.
The Directors are happy to report that the listing has enhanced their
visibility and brand value and would like to take this opportunity to thank all
the Investors for their over whelming response to the IPO and confidence
reposed by them in their business prospects.
SUBSIDIARIES,
JOINTLY CONTROLLED ENTITIES AND ASSOCIATE COMPANY:
During the year, the Company has incorporated two Subsidiary companies as
Special Purpose Vehicles, viz. Parsvnath SEZ Limited to develop Special
Economic Zones (SEZs) and Parsvnath Film City Limited to develop film city
project bagged from the Chandigarh Administration,
The Company has entered into a Joint Venture Agreement with Ratan Housing
Development Limited for forming an 'Association of Persons' Ratan Parsvnath
Developers (AOP) with a 50% share in the funds and profit/loss of the Joint
Venture. Further, Vardaan Buildtech Private Limited became an Associate Company
during the year.
The documents prescribed under Section 212(1) of the Companies Act, 1956
for the Subsidiary companies are attached with the Balance Sheet of the
Company. The Audited Consolidated Financial Statements of the Company and the
Subsidiaries, Jointly Controlled Entities and Associate companies prepared in
accordance with the prescribed Accounting Standards issued by The Institute of
Chartered Accountants of India are attached herewith, which form part of the
Annual Report / Accounts of the Company.
Management
Discussion and Analysis Report:
Industry Structure and Developments:
The Real Estate sector in
Buoyant demand from the corporate world and the interest of private equity and
venture capital firms to the Real Estate sector have led to firming of values
across Tier I and Tier II cities. Another major booster for the growth of the
Real Estate sector is the growing demand for office space in the booming IT and
ITES sectors, especially the BPO sector. These sectors have benefited from the
growing international trend towards off-shoring activities which has resulted
in higher demand for skilled, low cost, english speaking workers.
New growth concentrations are being seen across Tier II and Tier III cities, besides
suburban and peripheral areas in established markets. The construction activity
in residential, commercial and retail segments of Real Estate, which until
recently was focused on the four metres, is spreading to Tier II and Tier III
cities as well. Also, within the established markets, Real Estate activities
are moving into suburban business districts from central districts to take
advantage of lower Real Estate prices and higher availability of space, which
provide built-to-suit larger centralised office space.
Historically, the Real Estate sector in
a) Govt, of
b) Modifications in the Rent Control Act to provide greater protection to
homeowners wishing to rent out their properties;
c) Rationalisation of property tax in a number of states; and
d) The proposed computerisation of land records.
The trend towards greater institutionalization and transparency has contributed
to the development of reliable indicators of value and the organised investment
in the Real Estate sector by domestic and international financial institutions.
This has resulted in the greater availability of financing for Real Estate
developers. Regulatory changes permitting foreign investment are expected to
further increase investment in the Indian Real Estate sector.
The nature of demand is also changing, with heightened consumer expectations
that are influenced by higher disposable incomes, increased globalisation and
the introduction of new Real Estate products and services.
These trends have benefited from the substantial recent growth in the Indian
economy, which has stimulated demand for land and developed Real Estate across
the business lines. Demand for residential, commercial and retail Real Estate
is rising throughout the country, accompanied by increased demand for hotel
accommodation and improved infrastructure. Additionally, tax and other benefits
applicable to SEZs are expected to result in a new source of Real Estate
demand.
Real Estate is the second largest employment driver, next only to agriculture.
This is because of the chain of backward and forward linkages that the sector
has with other sectors of the economy. About 250 ancillary industries such as
cement, steel, brick, timber, building material, etc. are dependent on the Real
Estate industry. A unit increase in expenditure in this sector has a multiplier
effect and the capacity to generate income as high as five times. If the
economy grows at the rate of 10%, the housing sector has the capacity to grow
at 14% and generate 3.2 million new jobs over the next 10 years.
Opportunities:
The Real Estate sector in
* Demand for more housing units in cities and towns because of faster growth in
urban households as a result of nuclearisation and shrinking of average size of
Indian household, increased disposable incomes, easy availability of housing
finance and a favourable tax regime, heightened customer expectations -, shift
in consumer preferences from rented houses to owned houses;
* Demand for office premises by growing IT / ITES Industry:
* Demand for shopping malls by growing retail segment;
* Demand for multiplexes by evolving entertainment sector;
* Demand for hotels/resorts by growing tourism industry;* Demand for SEZs by
various sectors; and
* Demand for better infrastructure by the growing Indian Economy through all
its sectors.
Opportunities seen in the Indian Real Estate sector are as follows:
- A shortage of 12.7 million housing units in urban areas alone.
- Space available for approximately 400 new township projects over the next
five years across 70 cities, each having a population of more than 1 million
and that the total project value dedicated to low and middle income housing in
the next seven years is estimated at US $40 billion.
- The tenth five- year plan estimated a shortage of 22.4 million dwelling
units. Thus, in the coming 15 - 20 years, 80 - 90 million housing units will
have to be constructed with the majority catering to the low income group. The
investment required for constructing these and related infrastructure in this
period would, thus, be of the order of $666 billion to $888 billion at
approximately $33 billion to $44 billion per year.
- The residential sector is expected to continue to
demonstrate robust growth over the next five years, assisted by the rising
penetration of housing finance and favourable tax incentives. The amount spent
on new middle and higher income housing was Rs. 1.72 trillion in fiscal 2005
and is expected to grow further at a CAGR of 18.6% over the subsequent five
years to Rs. 4.03 trillion in fiscal 2010.
- The phenomenal growth in the IT/ITES sector including BPO/Call centers
is expected to continue and generate additional employment which will result in
increased demand for commercial space. Based on the manpower/ workspace
requirement in the IT/ITES sector, the growth in this sector is likely to
translate into construction investments of Rs. 148 billion (118 million sq.
ft.) by 2007-08 as compared with investments of Rs. 74 billion (61 million sq.
ft.) in the last 3 years.
- The Real Estate development in the retail segment has been growing
rapidly. The increase in disposable incomes, demographic changes (such as the
increasing number of working women who spend more, the rising number of nuclear
families and higher income levels within the urban population), the change in
the perception for branded products, the growth in retail malls, the entry of
international players and the availability of easy finance will drive growth in
the organised retail segment. It is expected that the boom in the retail sector
will result in construction investments of Rs. 112 billion over the next five
years.
- Another growth booster for Real Estate activities is the growing demand
for multiplex cinemas. Multiplexes typically have 250-400 seats per screen as
against 800-1000 seats in a single screen theatere which gives multiplex owners
additional flexibility, enabling them to optimise capacity utilisation. The
Indian cinema industry is expected to reach approximately Rs. 153 billion by
2010, contributing 25% to
- The hospitality sector in
- Special Economic Zones are geographically defined enclaves established
for the purpose of promoting exports and are deemed to be foreign territories
for purposes of Indian custom controls, duties and tariffs. There are three
main types of SEZs, namely, Integrated SEZs, which may consist of a number of
industries; Services SEZs, which may operate across a range of defined
services; and Sector specific SEZs, which focus on one particular industry
line. SEZs, by virtue of their size, are expected to be a significant new
source of Real Estate demand.
Threats:
- Severe fluctuations in market conditions may affects the sector
adversely.
- The projects in Real Estate business involve the purchase of several small
parcels of land within a large area and failure to purchase any strategically
located parcels may lead to failure of the entire project.
- Limited supply of land, increasing competition and applicable regulations may
result in land price escalation and a further shortage of developable
land.
- The business is subject to extensive statutory or governmental
regulations.
- The industry is highly fragmented and competitive and increased competitive
pressure may have adverse affect on the sector.
- For seizing opportunities and driving further growth, incremental capital may
be required, which may not be available on acceptable terms.
- Compulsory price correction, if any, exercised by the government, may
adversely affect the business.
- Significant increase in prices or shortage of building materials may
adversely affect the business.
- Joint venture projects entail certain risks.
- A slowdown in economic growth in
- Work stoppages and other labour problems could adversely affect the
business.
- Any increase in rate of interest may adversely affect the business.
- Threats specific to the Company are as under:
- A number of the company's projects in the Real Estate business and
construction business are not covered by insurance or are not adequately
insured to cover all risks in these projects.
- The company conducts due diligence and assessment exercises prior to
undertaking a project, but may not be able to assess or identify certain risks
and liabilities related to it.
- The company is dependent on its directors and senior management team to
effectively oversee the operations and growth of the business. However, the
loss of key members or failure to attract skilled personnel may adversely
affect the business.
- The ability to sell the company's products may be affected by the
availability of financing to potential customers, especially the buyers of
residential properties.
- The company is dependent on various sub-contractors or specialist agencies to
construct and develop its projects.
Segment wise performance:
Based on similarity of activities/products, risk and reward structure,
organisation structure and internal reporting systems, the Company has
structured its operations into the following segments:
* Self Owned Projects: Promotion, construction, development and sale of
integrated townships, residential and commercial property, etc. owned by them
for which we have development rights.
* BOT Projects: Construction and development of licensed properties on Built,
Operate and Transfer (BOT) basis. Segment wise performance has been disclosed
in Para 18 of Schedule R of the Balance Sheet.
Outlook:
The company, at present, has nationwide presence in about 47 Cities in 17
States of India. The company has its focus on the development of Integrated
Townships, Group Housing, Shopping Malls & Multiplexes, Commercial
Complexes, Hotels & Resorts, IT Parks, BOT Projects (DMRC Projects),
Multiplexes and SEZs.
At present, 103 projects are in the process of development across the country,
comprising 32 group housing, 18 integrated townships, 22 shopping malls and
commercial complexes, 17 hotels & resorts, 4 IT Parks and 6 DMRC
projects.
The company is also increasing its competitive advantage by moving into
strategic segments i.e. Special Economic Zones (SEZs) and IT Parks. It has
received approvals from the Ministry of Commerce for development of 12 SEZs
covering an area of approx. 4,000 acres. The SEZ business will be conducted by
Parsvnath SEZ Limited, a subsidiary company of the company.
Presently the company has 12 DMRC Projects on BOT basis out
of which 6 have already been completed and 6 are in the process of development.
With expansion of metro lines in
The Company has bagged a
The company has been awarded a project on BOT basis by
B.E.S.T. Limited for re-development of a Bus Terminus at Kuria in Mumbai. This
will be developed into a modern bus terminus with modern passenger facilities
and a commercial / shopping complex.
By the year 2010, the company is planning to increase its footprint to 20
States and 250 cities with the chosen diversified portfolio of Integrated
Townships, Residential Group Housing, Shopping Malls, Hotels, IT Parks,
etc.
The company has plans to develop Retail Malls consisting of Multiplexes, Food
Courts, Entertainment Zones, Retail Space, Hyper Markets, etc. in 200 cities in
India, with size ranging from 3 to 5 lacs sq. ft.
Additionally, the company is proposing to develop 20 large Highway Malls with
land area for each mall ranging from 25 to 100 acres. These Malls will consist
of Hotels, Health Spas, Entertainment Zones,
The outlook for the industry in the medium term looks very good and the company
has firm plans to take advantage of the same by consolidating its position and
to spread across various states along the length and breadth of the country by
taking up viable projects.
Risks and concerns:
The Indian Real Estate market is still in its infancy, largely unorganised and
dominated by a large number of small regional players, with very few corporates
or large players having national presence.
They do not apprehend any inherent risk in the Real Estate Industry in the long
run except for certain primary concerns that have afflicted the progress of the
Real Estate industry:-
1. Increased cost of Real Estate financing for customers.
2. Increasing Competition.
3. Change in government policies including change in tax structure, stamp duty,
etc.
4. Increased cost of development / construction: An inefficient fiscal control
may threaten margins and profitability, especially during an industry
downturn.
The Company employs strict internal and budgetary controls adequately supported
with an effective management information system (MIS) to keep costs at low
levels. The company has a centralised purchase department to meet the
requirements of all its projects and is therefore able to source large volumes
at best price and terms.
5. Liquidity risk: The Company requires large amount of long term/short term
funds to meet its requirement for various Real Estate / Construction
projects.
Construction activities are often funded by the clients who make cash advances
at different stages of construction. Further, the company enjoys excellent
relationships with its bankers and has been able to mobilise funds at
competitive rates.
6. Demand risk: Demand risk for Real Estate developers covers a number of
factors connected to the ability to sell properties based on location, brand,
track record, quality and timeliness of completion.
They assess the potential of location after an evaluation of its demographic
trends. Their ability to evaluate such trends has enabled them to identify
locations that are relatively undeveloped and gain the first mover advantage in
such locations. Based on their understanding of the demographic trends of a
location, they identify and internally assess key emerging markets for Real
Estate development. They further undertake market surveys in order to assess
the demand for their properties.
7. Limited investment from the organised sector has also hindered the growth of
this sector.
Operational
performance:
The Company is developing Projects across verticals with focus on Integrated
Townships, Group Housing, Shopping Malls & Multiplexes, Commercial
Complexes, Hotels & Resorts, IT parks, BOT Projects, etc. and has over 100
ongoing Projects comprising of 32 Group Housing, 18 Integrated Townships, 22
Shopping Malls and Commercial Complexes, 17 Hotels & Resorts, 4 IT Parks
and 6 Projects on BOT basis with Delhi Metro Rail Corporation Limited The
Company has pan India presence and has Projects located in about 47 cities in
17 states across the country involving a developable area of 153 million sq.
ft. including 26 million sq.ft. area of 4 SEZs. The total cost estimates for
these projects are in the region of Rs.21,000 crores. These projects are
expected to be completed by 2012.
During the year under review, the Company has completed two Residential Housing
Projects viz. Parsvnath Majestic Floors (Indirapuram -
Some of the prestigious Projects acquired by the Company during the year under
review are :
Development of Residential Housing / Commercial Project at Chandigarh from
Chandigarh Housing Board; Development of Commercial Complex-cum-Shopping Mall
on a Commercial Plot situated at Rohini (New Delhi) from Delhi Development
Authority; Development of Group Housing Projects on Plots at NOIDA from New
Okhla Industrial Development Authority of India, Development of Shopping /
Office Complex and Multiplex Project at Ranchi from Ranchi Municipal
Corporation and integrated development of Metro Station & Mall at Azadpur
and Commonwealth Games Village at Akshardham (Delhi) from Delhi Metro Rail
Corporation Limited
Also, the development of Multimedia - cum - Film City Project at Chandigarh
bagged from Chandigarh Administration through competitive bidding process shall
be implemented through their Subsidiary viz. Parsvnath Film City Limited for
which necessary Development Agreement and other documents have been executed
with Chandigarh Administration.
The Group Housing Projects launched during the year under review are: La
Tropicana (Delhi), Parsvnath Planet (Lucknow), Parsvnath Paramount (New Delhi),
Parsvnath Pratibha (Moradabad), Parsvnath Palacia & Parsvnath Privilege
(Greater Noida), Parsvnath Exotica Extension (Gurgaon), Parsvnath Prominence
(Bhiwadi), Parsvnath Regalia & Parsvnath Sterling (Sahibabad), Parsvnath
Prerna (Agra), Parsvnath Royale (Panchkula), Parsvnath Castle (Rajpura) and
Parsvnath Exotica (Ghaziabad).
The Commercial Projects launched during the year under review are: Mall Matrix
(Mohali), City Centre (Bhiwadi), Parsvnath Mall (Moradabad), Parsvnath Mall
(Rohini-New Delhi), Parsvnath Mall (Ahmedabad), Parsvnath Panchvati Plaza
(Agra) and Parsvnath Metro Malls at Kashmere Gate and Azadpur Metro Stations
(Delhi).
The Integrated Township Projects launched during the year under review are:
King Citi (Rajpura) Parsvnath Greens (Derabassi),
The Company had also obtained in principle and formal approvals from Board of
Approvals (BoA), Ministry of Commerce, Government of India for setting up
various SEZ Projects across the country and the same shall be implemented
through their Subsidiary viz. Parsvnath SEZ Limited after getting notified by
BoA. The proposed SEZ Projects are: Sohna Road, Gurgaon & Kundli (Haryana),
Ernakulam (Kerala), Indore (M.P.), Dehradun (Uttaranchal), Hyderabad (A.P.),
Pune (Maharashtra), Kancheepuram (Tamil Nadu), Agra & Moradabad (U.P.) and
Jaipur (Rajasthan).
The Company has established offices at various locations across the
country including Mumbai,
Contingent liabilities
|
|
Rs in millions as at 31.03.2007 |
|
Claim
against the Company not acknowledged as debt: |
|
|
i.
Interest for delay in payment of land premium instalment |
22.105 |
|
ii.
Demand for payment of stamp duty |
20.834 |
|
iii.
Customer complaints pending in consumer courts |
2.182 |
|
iv.
Demand for trade tax |
-- |
|
b.
Security / Performance Guarantees provided to various Government authorities |
2285.895 |
|
c. Corporate
Guarantees provided on behalf of Subsidiary (Previous year Joint Venture)
Company to the Bankers guaranteeing repayment of loan |
-- |
|
|
|
Particulars
of joint ventures
i.
Parsvnath Landmark Developers Private Limited (PLDPL)
The
Company had a 50% share in Parsvnath Landmark Developers Private Limited, (a
joint venture between the Company and OCL India Limited) upto 5 March 2007, on
which date the Company acquired the balance shares of PLDPL, thereby converting
PLDPL to a wholly owned subsidiary and has accordingly ceased to be jointly
controlled entity.
ii.
Parsvnath Developers AOP (PDAOP)
The
Company has entered into a joint venture agreement with HB Estate Developers
Limited for forming an 'Association of Person' Parsvnath Developers AOP. The
Company has agreed to contribute 42.50% towards funds requirement of the joint
venture and has 50% share in the profit/loss of the joint venture. The Company
has
paid
amount of Rs.('OOO) 120,556 (Previous year Rs.('OOO) 38,130) towards its share
of contribution to meet the funds requirements of the joint venture.
Hi.
Ratan Parsvnath Developers AOP (RPDAOP)
The
Company has entered into a joint venture agreement with Ratan Housing
Development Limited for forming
an
'Association of Person' Ratan Parsvnath Developers (AOP) with a 50% share in
the funds and profit/loss of
the
Joint Venture. The Company has paid amount of Rs.('OOO) 62,500 (previous year
Nil) towards its share of
contribution.
FIXED ASSETS
Land & Building
Building on leasehold land
Plant & Machinery:
- Construction Machinery
- Shuttering & Scaffolding
- Office Equipment
- Computers
Furniture & Fixture
Motor Vehicles
AS PER
WEBSITE
The
Parsvnath Group is a buoyant conglomeration of companies endowed with impeccable
foresight, enviable expertise and innate acumen providing cost effective and
holistic solutions to the Real Estate & Construction World.
The business philosophy of the group derives its strength in its commitment to
create architectural marvel by using state-of-the-art technology, consulting
global architects and by motivating human potential to scale new heights.
With more than two decades of experience in its repertoire, the group has
already stamped its presence already in seventeen states and going Pan –
State
Cities
|
|
Civil Lines, Inderlok, Pratrap Nagar, Tis Hazari, Seelampur |
|
Uttar Pradesh |
|
|
Haryana |
Dharuhera (Rewari), |
|
|
Derabassi, Malerkotla, Mohali, Rajpura , |
|
Rajasthan |
Bhiwadi, Jaipur, Jodhpur etc. |
|
Kerala |
|
|
Uttaranchal |
Dehradun and Haridwar |
|
Andra Pradesh |
|
|
Gujrat |
Ahmedabad |
|
Madhya Pradesh |
|
|
|
Pune, Shirdi and Mumbai |
|
|
Siligudi |
|
|
Sangolda ( |
|
Karnataka |
|
|
Tamilnadu |
Kancheepuram |
|
Jammu& Kashmir |
|
|
Jharkand |
|
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.41.80 |
|
|
1 |
Rs.82.41 |
|
Euro |
1 |
Rs.55.85 |
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 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
68 |
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. |
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 |
|