MIRA INFORM
REPORT
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Report
Date : |
04.05.2007 |
IDENTIFICATION DETAILS
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Name : |
INFRASTRUCTURE LEASING AND FINANCIAL SERVICES LIMITED |
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Registered
Office : |
Plot C 22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai
400 051 |
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Country: |
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Financials
(as on): |
31.03.2005 |
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Date
of Incorporation : |
03.09. 1987 |
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Com.
Reg. No.: |
11-44571 |
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CIN
No.: [Company
Identification No.] |
U65990MH1987OLC044571 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMI00330B |
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Legal
Form : |
A Closely Held Public Limited Liability Company |
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Line
of Business : |
Infrastructure Leasing & Financial Services Limited
(IL&FS) is one of |
RATING & COMMENTS
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MIRA’s
Rating : |
A |
RATING
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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
32000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
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Subject is a well established and reputed company having
fine track. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are always correct and as per commitments. The company can be considered good for any normal business
dealings . |
LOCATIONS
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Registered
Office : |
Plot C22, G Block Bandra Kurla Complex Bandra
East |
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Tel.
No.: |
9122 2653 3333 / 3232 |
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Fax
No.: |
9122 2653 3038 |
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E-Mail
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Website
: |
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Branches
: |
Kolkata
Guwahati Shyam Kanu Mahanta, |
DIRECTORS
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Name : |
Mr Ravi Parthasarathy |
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Designation
: |
Chairman |
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Name : |
Mr Yuki Oshima |
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Designation
: |
Head, International Business Department, ORIX Corporation, |
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Name : |
Mr Chosei Azuma (Alternate to Mr Yuki Oshima) |
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Designation
: |
Nominee Director, ORIX Corporation, |
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Name : |
Mr Junichi Hayashi (Alternate to Mr Yoshihiko
Miyauchi) |
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Designation
: |
Sr Vice President, International Business Department, ORIX
Corporation, |
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Name : |
Mr Michael Pinto |
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Designation
: |
Secretary (Retd.), Government of |
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Name : |
Mr Gopi K Arora |
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Designation
: |
Former Finance Secretary (Retd.), Government of |
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Name : |
Mr RC Bhargava |
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Designation
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Former Managing Director (Retd.), Maruti Udyog Ltd |
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Name : |
Mr SR Krishnan |
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Designation
: |
General Manager (Credit), Central Bank of |
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Name : |
Mr Ashwini Kumar Sharma |
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Designation
: |
Deputy Managing Director & Chief Financial Officer, State
Bank of |
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Name : |
Mr KM Mistry |
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Designation
: |
Managing Director, HDFC |
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Name : |
Mr SB Mathur |
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Designation
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Administrator to the Specified Undertaking of Unit Trust of |
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Name : |
Mr Atul Kumar Shukla |
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Designation
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Chairman, Life Insurance Corporation of |
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Name : |
Mr Yoshihiko Miyauchi |
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Designation
: |
Chairman & CEO, ORIX Corporation, |
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Name : |
Mr Arun K Saha |
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Designation
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Deputy
Managing |
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Name : |
Mr Hari Sankaran |
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Designation
: |
Managing Director – IL and FS |
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Name : |
Mr. D K Malhotra |
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Designation
: |
Deputy Managing Director- LIC |
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Name : |
Mr. Sushobhan Sarker |
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Designation
: |
Executive Director (Investment), LIC |
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Name : |
Mr. Nagaaki Esaki (Alternate to Mr. Yuki Oshima) |
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Designation
: |
Managing Director, International Busines Department, ORIX
Corporation, |
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Name : |
Mr. Junichi Hayashi |
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Designation
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Alternate Director |
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Name : |
Mr. Chosei Azuma |
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Designation
: |
Alternate Director |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
Percentage of Holding |
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Life Insurance Corporation of |
26.98 |
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ORIX Corporation, |
23.82 |
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Housing Development Finance Corporation Limited |
13.10 |
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10.23 |
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Central Bank of |
9.18 |
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State Bank of |
7.68 |
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HSBC Group |
5.23 |
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IL&FS Employees' Welfare Trust |
3.78 |
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Total |
100.00 |
BUSINESS DETAILS
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Line
of Business : |
Infrastructure Leasing & Financial Services Limited
(IL&FS) is one of |
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GENERAL INFORMATION
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Bankers
: |
v
Central Bank of v
State Bank of |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Messrs SB Billimoria & Company Chartered Accountants |
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Associates/Subsidiaries
: |
v
Infrastructure Services v
IL&FS Infrastructure Development Corporation Limited
v
v
IL&FS
Education and Technology Services Limited v
New Tirupur Area
Development Corporation Limited v
Noida Toll
Bridge Company Limited v
Financial Services v
IL&FS
Investment Managers Limited v ORIX Auto and Business Solutions
Limited v
Integrated Property Management and Services Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
300000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 3000.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
159250000 |
Equity
Shares |
Rs. 10/- each |
Rs. 1592.500 Millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share
Capital |
1142.500 |
1142.500 |
1592.500 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
6977.900 |
6193.500 |
5659.900 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
8120.400 |
7336.000 |
7252.400 |
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LOAN
FUNDS |
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1] Secured
Loans |
37219.800 |
26226.300 |
28634.600 |
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2]
Unsecured Loans |
25316.100 |
21110.300 |
15088.900 |
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TOTAL
BORROWING
|
62535.900 |
47336.600 |
43723.500 |
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DEFERRED
TAX LIABILITIES |
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|
0.000 |
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TOTAL
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70656.300 |
54672.600 |
50975.900 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
4488.400 |
5022.100 |
4527.100 |
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Capital work-in-progress
|
49.600 |
49.100 |
0.000 |
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INVESTMENT
|
17124.400 |
16857.300 |
13944.200 |
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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
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Sundry Debtors
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Cash & Bank Balances
|
5198.300
|
2180.700
|
16505.300
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Other Current Assets
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Loans & Advances
|
55813.000
|
40025.000
|
36775.900
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Total Current Assets
|
61011.300
|
42205.700 |
53281.200
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
12017.400
|
9461.600
|
6832.400 |
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Provisions
|
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Total Current Liabilities
|
12017.400
|
9461.600 |
6832.400
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Net
Current Assets
|
48993.900
|
32744.100 |
46448.800
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
70656.300 |
54672.600 |
50975.900 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
6905.400 |
5563.700 |
5555.000 |
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Other Income |
441.600 |
288.700 |
166.900 |
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Total
Income |
7347.000 |
5852.400 |
5721.900 |
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Profit/(Loss) Before Tax |
1609.000 |
1275.700 |
891.200 |
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Provision for Taxation |
389.000 |
253.700 |
70.000 |
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Profit/(Loss) After Tax |
1220.000 |
1022.000 |
821.200 |
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Expenditures : |
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Administrative Expenses |
1484.200 |
1117.200 |
1084.200 |
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Interest |
4005.400 |
3156.200 |
3352.300 |
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Depreciation & Amortization |
248.400 |
303.300 |
394.200 |
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Total
Expenditure |
5738.000 |
4576.700 |
4830.700 |
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KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
7.11 |
6.24 |
5.49 |
|
Long Term
Debt-Equity Ratio |
4.72 |
5.06 |
5.26 |
|
Current
Ratio |
1.77 |
2.43 |
4.44 |
|
TURNOVER
RATIOS |
|
|
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Fixed
Assets |
0.71 |
0.77 |
1.13 |
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Inventory |
0.00 |
0.00 |
0.00 |
|
Debtors |
24.56 |
16.37 |
9.24 |
|
Interest
Cover Ratio |
1.40 |
1.40 |
1.27 |
|
Operating
Profit Margin(%) |
79.80 |
80.91 |
81.05 |
|
Profit
Before Interest And Tax Margin(%) |
76.42 |
75.73 |
74.16 |
|
Cash
Profit Margin(%) |
19.99 |
22.65 |
21.24 |
|
Adjusted
Net Profit Margin(%) |
16.61 |
17.46 |
14.35 |
|
Return On
Capital Employed(%) |
8.96 |
8.39 |
9.29 |
|
Return On
Net Worth(%) |
15.84 |
14.33 |
11.85 |
LOCAL AGENCY FURTHER
INFORMATION
IL&FS was incorporated in
* Surface Transport* Water Supply* Power* Telecom* Industrial Parks
The various joint venture were formed with foreign partners with a specific
purpose in each of the joints ventures.
During 2001 the Vadodara-Halol Toll Road project and Delhi Noida Bridge project
were completed as per schedule and within the budgeted cost.Apart from the
above Transport project Ahmedabad-Mehsana Road project is expected to be completed
on time and a 50:50 Joint Venture between TIDCO and Tamil Nadu Road Development
Company Limited project for improvement and maintenance of the ECR connecting
Chennai and Pondicherry and the operations are expected to commence in the fag
end of 2001.
In the Retail Distribution Debtonnet a B2B portal was jointly promoted by the
company and Debtonnetindia.com Limited. The main objective is to deepen the
debt market and facilitate the private placement of debt instruments through
the internet with Qualified Institutional Investors.
The Social Infrastructure operations has been focusing on niche projects and
Healthcare & Wellness Foundation Limited a hospital management company is
fully operationsl and has developed a modern Cardiac Care Facility at Kottayam,
Kerala. This foundation is also expanding its operations by commissioning a new
Cardiac Care Centre at Tumkur,
OPERATIONS
The overall economic activities during the year under review exhibited mixed
trends: an uneven monsoon weakened the agriculture sector, while the momentum
in the industrial sector. service sector and financial markets continued. The
foregoing not only compensated the lower output of agriculture sector, but also
resulted in GDP growth in excess of 7% pa. Despite escalating oil prices in the
international markets and hardening of overall interest rates, the level of
activity across all sectors remained encouraging.
During the year, the Company secured a number of diverse, challenging
assignments from the Central Government, a number of State Governments and
corporates in relation to the development, financing and implementation of
infrastructure projects. The positive environment resulted in funding
opportunities as well as activities in financial services relating to
acquisitions private equity IPOs etc. In the area of corporate finance, focus
on structured transactions resulted in higher yields and improved market
positioning. With all round improvement in performance, Operating Income for
the year increased by 22% to Rs 2.13 billion as compared to Rs 1.75 billion
achieved in the preceding year. A comprehensive review of the operations of the
Company is provided below
THE SURFACE TRANSPORT SECTOR
Noida Toll Bridge Company Limited: The Company has grown steadily over the
years, with traffic and advertisement revenue witnessing a significant
increase. NTBCL had earlier re-structured its term loans through the Corporate
Debt Restructuring (CDR) Mechanism, resulting in a reduction of the average
interest rate, and with provision for funding of interest for the first 3
years. The Deep Discount Bonds issued in 1999 were also restructured under
Section 391 of the Companies Act as approved by the Allahabad High Court in
October 2005. The foregoing has resulted in a substantial reduction it.
interest costs. With a renegotiation of the O&M contract, the operating
performance of NTBCL has improved significantly. NTBCL has been successful in
completing a GDR listing and has realised over Rs 2 billion through the issue of
GDRs listed on the Alternate Investment Market of the London Stock Exchange.
NTBCL now proposes to raise long term bonds for an amount of Rs 1.75 billion to
align the tenor of financing more closely to the asset life. On completion of
the foregoing capital re-structuring plan, the overall debt is expected to
reduce substantially, and would contribute to the improved performance of
NTBCL
Gujarat Toll Road Projects : IL&-FS and the Government of Gujarat (GoG)
co-sponsored two projects viz, the Vadodara Halol Toll Road Company Limited
(VHTRL) and the Ahmedabad Melisana Toll Road Company Limited (AMTRL). The
vehicular traffic on both these roads was less than anticipated due to a
multiplicity of reasons. With the object of achieving operational viability,
pursuant to the debt restructuring scheme approved by the CDR Cell, and with
the approval of all stakeholders of VHTRL AND AMTRL, a scheme of arrangement
had been filed before High Court of Gujarat. With the approval of the Court,
the two entities AMTRL and VHTRL have been merged into Gujarat Toll Road
Investment Company Limited (GTRIL)
Due to communal disturbances, there was a sharp drop in activities in the Halol
Godra region, affecting the
Debt re-structuring had been done for both the projects, and steps have been
taken to strengthen the cash flow of GTRIL. GTRIL has also re-negotiated its
O&M contracts, resulting in savings in costs
North Karnataka Expressway Project : The Project of four laning of National
Highway (NH4) covering the stretch from
West Gujarat Expressway Limited : West Gujarat Expressway Limited (WGEL) is a
SPV incorporated by the Company and IL&FS Transportation Networks Limited
(ITNL), a subsidiary of the Company, for developing a 68 km road project on NH
8B. WGEL has executed the Concession Agreement with National Highways Authority
(NHAI) for development of the Project on a Build-Operate-Transfer (BOT) basis
at an estimated cost of Rs 2.40 billion. WGEL has issued notice to proceed to
the Construction Contractors, resources have been mobilised by the contractors,
and construction has commenced on the project. It is currently envisaged that
the project would be completed within the budgeted cost and time
Road Infrastructure Development Company of Rajasthan Limited : Road
Infrastructure Development Company Limited (RIDCOR) is a 50:50 joint initiative
of Government of Rajasthan and the Company, set up with the objective of
implementing road sector projects in the State of
Andhra Pradesh Expressway Limited : The Company together with 1TNL has set up
Andhra Pradesh Expressway Limited (APEL) for the development and implementation
of the 74 km annuity based road project in Andhra Pradesh under a Concession
from National Highways Authority (NHAI) on a Build-Operate-Transfer (BOT)
basis. The project is estimated to cost Rs 7.45 billion. The construction work
contract has been awarded, with ITNL performing the role of Project Manager and
O&M contractor on completion of the project
Creation of Road Vertical : The Company has sponsored five toll roads which
have been commissioned and another ten are in various stages of development.
Currently these toll roads are domiciled in separate SPVs. The Company
envisages that SPVs with a single project offer limited growth prospects. In
developed economics, toll operators with multiple projects command a higher PE
due to the multiple risk mitigation. IL&FS Transportation Networks Limited
(ITNL), a wholly owned subsidiary of the Company, has been designated as a
holding Company, where all the initiatives in surface transport sector are
proposed to be consolidated. ITNL thus would become the single largest toll
road Company in the country, offering better valuation and returns on the
investments of the Company
THE POWER SECTOR
ONGC Tripura Power Project : The Company, ONGC and Government of Tripura (GoT)
have formed a Joint Venture Company, ONGC Tripura Power Company Private Limited
('OTPC'), for development of the 1100 MW Gas Based Power Generation Project.
Power will be evacuated by a dedicated 680 km long 400 kV DC transmission line
and associated system. The Transmission Project would be domiciled in a
separate SPV. Northeast Power Transmission Company Limited (NEPTC) in
collaboration with Power Grid Corporation of India Limited. The Company is
acting as the Sole Transaction Advisor to both OTPC and NEPTC, and is
responsible for delivery/oversight of all key technical, commercial and
financial aspects of the Generation as well as Transmission Project. The
Company has commenced extensive project development work, and it is expected
that the both the Projects would achieve financial closure by October 2006. The
total investment of Rs 56 billion would be the single largest investment in
North East Region till date
Hydro Power Projects : The Company and Government of Uttaranchal (GoU) have
established a Joint Venture under the name and style of Uttaranchal
Infrastructure Projects Company Private Limited (UIPCL) for the development of
various infrastructure projects, including hydro power projects aggregating to
2,000 MW. The JV will develop the unallocated Hydro Power Projects, and the
development process will include the identification of new potential hydro
projects sites, preparation of commercial viability Reports and DPRs, obtention
of clearances and bid process management
Power Projects - Andhra Pradesh : The Company has been identified as Project
Advisor by the Andhra Pradesh Power Generation Company Limited (APGENCO) for
development of various power projects in the State of Andhra Pradesh. There is
currently a substantial energy deficit in the country. and with view to bridge
this gap, the Government is encouraging setting up of Power Projects by the
private sector
THE ENVIRONMENTAL SECTOR
IL&FS Ecosmart Limited : The Company has set up IL&FS Ecosmart Limited
(Ecosmart) as a 100% Subsidiary to provide environmental and social services in
the infrastructure and industrial sectors, which address the diverse needs of
business, Government and communities in pro-active environmental management.
Ecosmart has currently undertaken major initiatives in establishing and
maintaining the Environmental Information Centre of Government of India, Urban
Planning of Environmental Management, Solid Waste Management. Common
Environmental Infrastructure and Environmental on Social Risk Management.
Ecosmart, in consortium with Factor AG.
NEW INITIATIVES
International Project Development : The Company has developed expertise and
requisite skill-sets to develop complex infrastructure projects on a commercial
format in various parts in
Project Development Initiatives in
The Company, alongwith IL&FS Infrastructure Development Company Limited
(IIDC). a 100% subsidiary had earlier initiated project development activities
in
IIDC is now carrying out development activities of almost 15 projects in Haldia
in water treatment, sewerage & drainage, bus and truck terminals, tourism,
and other sectors for HIDAL. Two projects have been successfully awarded to the
private sector for implementation
At the invitation of the State Government. another JV Company between the
Company and West Bengal Industrial Development Corporation, namely, Bengal
Integrated Infrastructure Development Limited (BIIDL) has been incorporated for
the development of specific infrastructure and area development projects in the
State
On behalf of BIIDL, IIDC is developing a Knowledge park at Kolkata, and a Mega
Chemical Industrial Estate (MCIE) at Haldia. The MCIE project is proposed on
10,000 acres and will create a large Chemical hub in
IIDC is preparing a City Development Plan for Asansol and has positioned a
total of 7 projects under the JNNURM scheme of the Government of India.
IIDC is also working with the Howrah Foundry Association in developing a
924-acre
Project Development Initiatives in North East Region :
The Company has been focusing on the North East Region, and has initiated the
development of projects across an array of infrastructure sectors:
PDPP with Tripura : The Project Development and Promotion Partnership (PDPP)
with Tripura State Government has been successfully replicated with Bodoland
Territorial Council. Most of the project development initiatives are on the
model of PDPP, wherein the Company remains responsible for delivery/oversight
of all key technical, commercial and financial aspects of the Project. The
projects being pursued include Land Custom Stations, ONGC Power Generation
& Transmission Project and Industrial Infrastructure Projects. The Company
has successfully closed the Agartala Hotel Project and the Incense Stick Project
Development of Tourism Infrastructure with North East Council : Development of
budget hotels at fourteen locations and luxury hotels at two locations are
currently underway
PDPP with Bodoland Territorial Council : Work has commenced on a Logistics Hub
Project, Small Hydro Projects and integrated 'Destination Manas Project'
Air Connectivity : With the support of North East Council Tourism initiatives,
a unique `Air Link Project' has been conceived to inter-connect the North East.
A proposal to constitute an `NER Air Link Fund is currently being discussed
with the authorities
Cluster Development Initiative : The Cluster Development Initiative (CDI) was
set up as a Strategic Business Unit of the Company during FY 2006 with the
objective of undertaking cluster development programmes across industries. The
initiative is aimed at enhancing the competitiveness of small and medium
enterprises (SMEs) through the provision of common infrastructure needed by
clusters. Based on need assessment, a wide range of services including capacity
building, financial, engineering, technology and marketing linkages, are
provided to the targeted cluster enterprises in an integrated arid commercially
sustainable manner. Three broad categories of clusters are being targeted under
this Initiative: Industrial Clusters, Artisan Clusters and Agro Clusters which
would help the competitiveness enhancement of SMEs and would also act as a
prototype for replicable development for a variety of clusters across the
country.
SEZ PROJECTS
Mangalore SEZ Project : Karnataka Chamber of
Commerce & Industry (KCCI), Karnataka Industrial Area Development Board
(KIADB) and ONGC had entered into an MoU for joint development of the MSEZ.
Subsequently, KCCI and the Company have entered into a MoU for its induction
into the consortium as a strategic partner for development of the MSEZ. ONGC
operates a refinery at Mangalore through its subsidiary MRPL. ONGC/MRPL plan to
have major investments aggregating Rs 350 bn in refinery/petrochemicals in the
region. It is proposed to domicile the projects in the Mangalore SEZ. The total
area for the project would be about 3,300 acres split into 3 zones connected to
each other through an exclusive logistic corridor. Land acquisition is
currently in progress. As Project Advisor to MSEZ, the Company would be
responsible for delivery/oversight delivery of all key technical, commercial
and financial aspects of the Project. The Company has commenced extensive
project development work and it is expected that the Project would achieve
financial closure in FY 2008
IL&FS Pan-Asia Project Development Fund
(IPAPDF) : Having gained significant expertise in developing projects in
Green Energy Fund : Government of
SUBSIDIARY & AFFILIATE OPERATIONS
IL&FS Transportation Networks Limited : IL&FS Transportation Networks
Limited (ITNL) was established by the Company to create a pan-India surface
transport business. Over a period of time, ITNL has also emerged as the
designated entity of the Group that bids for projects in collaboration with
private sector promoters and contractors. The Company has recently initiated a
process of consolidating its surface transport sector investments and assets in
ITNL which is expected to result in ;
Substantial cost savings due to economies of scale. This includes amongst
others, reduction in employee headcount, and elimination of duplicative
processes through centralized operations
Savings due to economies of scale, including induction of new technology and
efficient asset management
Reduction in risk and improvement in credit ratings. This will bring down cost
of borrowing and increase the leveraging capacity of the consolidated
entity
Pursuant to the foregoing, the activity profile of ITNL would cover
Project Development
Project Valuation
Project Implementation
Asset Management
Tolling
Maintenance
Project Advisory
IL&FS Infrastructure Development Corporation Limited : During the year,
IL&FS Infrastructure Development Corporation (IIDC) expanded its
geographical and sectoral spread under its mandate, undertaking project
development activities in a Public Private-Partnership (PPP) format in
collaboration with Government of India, State Governments and the Private
Sector
Over the past five years, IIDC has successfully closed projects under PPP
formats across diverse sectors including Ports, Roads, Water. E-governance,
Information Technology, Tourism. Urban Renewal, Commercial and Residential Real
Estate, Industrial Estate and Power
During the year under review, IIDC commenced operations in Jharkhand,
Uttaranchal, Chhattisgarh and
IL&FS Trust Company Limited : IL&FS Trust Company Limited (ITCL) has been
providing independent fiduciary services since FY 2000, and today has a client
base of over 200 Corporates/Institutions. ITCL has created a niche for itself
in the structured products market and is a preferred trustee for higher margin,
complex transactions. ITCL is the only corporate entity in
During the year under review. ITCL entered into a strategic alliance with the
Bank of New York (BONY), a global leader in fiduciary services relating to
structured product offerings. BONY has consistently topped the list of Trust
Companies in international bond issuances. The arrangement between the two
organizations will provide Indian issuers with access to The Bank of New York's
global network. BoNY's technology capabilities are expected to leverage ITCL's
strong brand and proven track record in the provision of local trust and
fiduciary services
In FY 2006, ITCL launched two new initiatives, and a modest beginning was made
in these fields, given the dominance of service providers from unorganized
sector
(a) Debt Recovery and Receivership
(b) Secure Storage and e-Access
(4) Integrated Property Management & Services Limited : Initially a 49:51
joint venture between the Company and Mahindra & Mahindra Group, Integrated
Property Management & Services Limited (IPMSL) has evolved over the years
to emerge as a single window Real Estate Management Service Provider for a wide
range of Services.
During the year under review, IPMSL expanded its presence in realty
transactions and Project Construction Management activities on a pan-India
basis into 26 cities and towns across the country. With a Facility Management
Portfolio of 35 Million Square Feet, IPMSL is today a market leader in this
field. IPN-ISL has entered the field of management of mega-properties, and
received mandates in relation to the 2 30 acres Electronic City Estate in
During the year, IPMSL became a wholly owned subsidiary, of the Company. With
the support of IL&FS and other Group Companies. IPMSL is now involved in
joint projects relating to infrastructure
(5) IL&FS Investsmart Limited : IL&FFS Investsmart Limited (IIL) has
registered sustained growth in retail trading volumes. Equity segment
registered 119% growth, while the derivatives segment registered 256% growth
over the previous year. There has also been a quantum jump in registered medium
net worth equity customer accounts, with an increased number of outlets to
broaden the geographical spread
During the year under review, IIL provided a major thrust to the
Institutional Equity Desk by strengthening the sales and research teams. In the
Institutional Equity Segment, fresh empanelments were taken with Bank and
Institutional clients, which increased from 76 at the beginning of FY 2006 to
over 100 as on March 31, 2006. This has resulted in increase in revenues in a
significant manner
IIL successfully executed 31 mandates in FY 2006, which included Initial Public
Offer, Follow-on Offerings, ESOPs, GDR issues and other advisory mandates
raising an amount of Rs 135 billion from the capital markets. The Syndication
Division has also shown a robust growth during FY 2006. with both revenues and
number of mandates. The Syndication Division has successfully raised resources
for projects exceeding Rs 37 billion
The year under review has been an eventful year for IIL. After induction of
E*TRADE and Softbank Asia Infrastructure Fund as strategic partners towards the
end of FY 2005, IIL launched a maiden public issue, which was oversubscribed 34
times with shares allocated at a price of Rs 125 per share. In December 2005,
IIL successfully completed a Global Depository Receipts Issue and raised US$ 99
million in the international capital market, issuing 23,121,000 underlying
equity shares at a price of Rs 197 per share. The GDRs were listed on the
Luxembourg Stock Exchange. On conclusion of the GDR issue, the networth of IIL
stood at Rs 6.60 billion in comparison to Rs 568.5 million at the beginning of
the financial year. The Company continues to hold around 31% of the paid-up
equity capital of IIL
(6) IL&FS Investment Managers Limited : During the ear under review,
IL&FS Investment Managers Limited (IIML) continued to expand its
operations. The Leverage India Fund (LIT) closed at US$ 153.5 million, and over
20 investments were committed from this pool. Five exits were achieved from
earlier investments. Substantial effort was also invested in raising a Real
Estate Fund, which achieved its first close in April 2006. Final closure is
expected to be achieved by September 2006. Given the upswing in the economy and
buoyant capital markets, IIML has been able to maintain a healthy divestment
track record with exits through capital markets and strategic sales. This would
help IIML in its various fund mobilisation initiatives in future
(7) ORIX Auto & Business Solutions Limited : ORIX Auto and Business
Solutions Limited (ORBS) provides total solutions in the field of Leasing,
Fleet Management Services, Business Transport Solutions and Equipment
Financing. Rent-a-Car operations and Service Centres are handled by two
separate Franchisees of GABS. OABS also provides Back Office services for
capital market related activities in the area of transaction processing, along
with the Franchisees
During the year, OABS has shown growth of business in all business segments.
The BTS business is now being considered on a pan
(8) IL&FS Education & Technology Services Limited
Over the years, IL&FS Education & Technology Services Limited (IETS)
has developed significant expertise in content creation and managing technology
platforms. IETS has also built capabilities to deliver Government content and
training mandates. Technological innovations like the K-Yan have enabled IETS
to expand its reach across the country and across learner spectrum
IETS has been implementing the Common Service Centre (CSC) mandate. The
work on the mandate commenced in December 2005 and the activities for the first
five months have been successfully completed. Phase-II. being implementation of
the 100,000 Common Service Centres. would also involve provision of assistance
in stabilizing the system and ensuring that sufficient momentum is generated
for the provision of services to rural citizens. The project provides a unique
positioning to IETS and would have significant bearing on future direction and
revenues in terms of Training. Content and K-Yan sales
During the year, IETS has completed training of an additional 70,000
government employees in
IETS has also been able to make a break through during the year under review in
the space of computer education and publications. Various initiatives are
underway with agencies like UNICEF. as well as various State Governments in
this regard.
FUTURE OUTLOOK
The Company has a robust pipeline of infrastructure projects across various
sectors and States. These would result into not only benefits for the Company
but also would throw opportunities to various Subsidiaries and Affiliates in
the Group to provide the services that would be required in connection with
project development as well as operations and maintenance. Initiatives taken in
earlier years with regard to consolidation of various operations have largely
been completed, and further streamlining of business operations is currently
being undertaken
The Company would continue to focus efforts to secure international mandates
especially where our country has a competitive advantage. Efforts would also be
made in the case of specific entities to raise funds through the capital market
in order to fund business growth without any undue reliance on the resources of
the Group
Relationships with Senior Lenders, Creditors and Shareholders would continue to
be nurtured with the objective of working towards the development of ancillary
business relationships in areas of mutual interest
SHAREHOLDERS:
During the year under review, The Specified Undertakings of Unit Trust of
India (SU-UTI), one of the major Shareholders of the Company, transferred its
entire shareholding in the Company to Life Insurance Corporation of India (LIC)
and International Finance Corporation,
Website
Details :
The overall economic activities during the year
under review exhibited mixed trends: an uneven monsoon weakened the agriculture
sector, while the momentum in the industrial sector, service sectors and
financial markets continued. The foregoing not only compensated the lower output
of agriculture sector, but also resulted in GDP growth in excess of 7% pa.
Despite escalating oil prices in the international markets and hardening of
overall interest rates, the level of activity across all sectors remained
encouraging
During the year, the Company secured a number of diverse, challenging
assignments from the Central Government, a number of State Governments and
corporates in relation to the development, financing and implementation of
infrastructure projects. The positive environment resulted in funding
opportunities as well as activities in financial services relating to
acquisitions, private equity, IPOs etc. In the area of corporate finance, focus
on structured transactions resulted in higher yields and improved market
positioning. With all round improvement in performance, Operating Income for
the year increased by 22% to Rs 2.13 billion as compared to Rs 1.75 billion
achieved in the preceding year.
Group
Companies :
Infrastructure Services
IL&FS Infrastructure Development
Corporation Limited
IL&FS Transportation Networks
Limited
IL&FS Education and Technology
Services Limited
New Tirupur Area Development
Corporation Limited
Noida Toll Bridge Company Limited
Financial Services
IL&FS Investment Managers Limited
ORIX Auto and Business
Solutions Limited
Press Release :
The Jawaharlal Nehru National Urban Renewal
Mission (JNNURM) is a timely initiative taken by the Government of India to
address the issue of large scale degradation in the civic infrastructure and
various cities across
It has been felt that the Municipal Corporations / Urban Local bodies require a
great deal of "soft assistance" in terms of facilitating the
improvement of its internal system. They also require assistance in terms of
project design, project development, procurement of contractors, oversight of
project implementation and the creation of sustainable O&M frameworks.
Given the high cost attendant to the provisions of these services, it was
important to create a unified framework of debt financing that would create
economies of scale through extension of credit to multiple municipalities under
a common governance framework.
After a detailed deliberation, between IL&FS, IDBI, IIFCL and Canara Bank,
it was decided to initiate the unified framework of debt financing i.e.
"Pooled Municipal Debt Obligation (PMDO)" facility through the term
loan route. All four of us i.e. IL&FS, IDBI, IIFCL and Canra Bank became the
sponsors and initiated the aforesaid facility with a total corpus of Rs.10000 millions
by way of contributing Rs.2500 millions each and approached other banks/
financial institutions to participate in this facility. Based on the identified
viable projects, they have been able to pool the commitments for about Rs.30000
millions as required. The basic purpose of this pooled facility is to
channelise the debt funds to the urban infrastructure with a common governance
framework.
IL&FS Urban Infrastructure Asset Managers Limited will look after the asset
monitoring and the administration work of the urban infrastructure projects to
be funded through this facility. The PMDO facility will be administered by the
Credit Committee to be constituted out of the sponsors and other participating
banks / financial institutions. The Credit Committee would be responsible for
all credit approvals and supervision of all contract management activities
undertaken by the Asset Managers. The Credit Committee would also be responsible
for taking decisions on behalf of the lenders with respect to the
administration of the PMDO facility including reset of interest rates etc.
There will also be an Advisory Board for the facility, to be constituted out of
sponsors and persons of repute in the PMDO's focus areas of investment.
In fact, this is the first time that IL&FS has been able to mobilize a
large number of banks/ financial institutions on a common platform for
participating in the urban infrastructure projects, an initiative taken by the
Government of India through the Jawaharlal Nehru National Urban Renewal Mission
(JNNURM). IL&FS has been working very closely with more than a dozen of
Municipal Corporations in order to conceive designs and implementing an
integrated infrastructure progrmame using a mix of JNNURM funds and the
commercial financing. The sectoral coverage that they envisage across cities,
includes water supply and sewerage, solid waste management, road and urban
transport and environmental projects. IL&FS has made a tremendous progress
in this area and the Nanded city integrated programme would be the first
project to be taken up for implementation.
Shri GS Kang, Chief Secretary today
signed an MoU with Infrastructure Leasing & Financial Services Limited (IL&FS)
for establishing Special Economic Zones in
Shri DK Mittal reiterated IL&FS’ commitment in development of
infrastructure in
IL&FS is currently associated in development of several SEZs all over the
country. IL&FS would assist GoB in conducting all detailed studies and
project structuring for developing bankable projects, induction of private
developers and financial closure
KfW, Germany Extends Euro 54 million Line
of Credit to IL&FS
The German bilateral KfW has extended to IL&FS a Euro 54 mn Line of Credit
facility that is guaranteed by the Government of India, with a specific mandate
to finance private sector infrastructure projects. The KfW Loan is a three tier
financing package - German Government funds for a tenor of 40 years, market
funds guaranteed by German Government for a tenor of 12 years and direct market
funds for a tenor of 15 years. The subsidy in the long term concessional
tranche of 40 years renders the overall pricing on the line of credit competitive,
whilst the long tenor is optimal for financing infrastructure projects. KfW has
also agreed to provide a grant component of Euro 750,000 towards project
development initiatives. The formal agreement for the loan has been signed
today, paving the way for draw down of funds from the facility
The KfW Line of Credit is on a co-financing basis with the USD 100 mn Line of
Credit from Asian Development Bank (ADB) that had earlier been extended
IL&FS. IL&FS would use the funds for projects spread across a slew of
infrastructure segments comprising roads, water supply and sanitation,
airports, minor ports, power, urban mass transit systems, telecommunication
(submarine optic fibre cable connection projects), information technology
(cyber parks) and special economic zones. The choice of the sectors to be
financed has been identified as part of ADB and KfW's support to State level
reforms, and is based on the projected infrastructure demand in each State
The Line of Credit will enhance the supply of long-term funds, which is
considered to be one of the principal constraints to infrastructure development
in
According to Mr Arun Saha, Deputy Managing Director, IL&FS, as a separate
initiative IL&FS has launched Project Development Fund (Tranche II)
together with participation of KfW. The fund has achieved its first close of
USD 15 mn inclusive of KfW's commitment of USD 5 mn. It is envisaged that the
Fund would raise its corpus to USD 25 mn in the near term. The objective of
this Project Development Fund would be to identify and finance project
development expenditures before these projects are commercially packaged and
successfully bid out. IL&FS in May 2000 set up its first Project
Development Fund of Rs 1 bn which had helped in identifying and development of
new projects in infrastructure sector and the Fund had been able to meet its
target return
About IL&FS :
IL&FS has been promoted by leading Indian and Foreign Banks and Financial
Institutions with twin mandates: to develop infrastructure projects under a
commercial format; and to provide a comprehensive range of financial services.
IL&FS and its associate companies have a diversified range of activities
ranging from infrastructure development, investment banking, advisory services,
funds management and securities brokerage
Bravia Capital Partners Forms Joint
Venture with Infrastructure Leasing and Financial Services (IL&FS), Mumbai
To Provide Needed Financing Solutions for Burgeoning Indian Airline Market
Bravia Capital Partners, (BCP) a global commercial aircraft finance, investment
and leasing company, and Infrastructure Leasing and Financial Services
(IL&FS) of India, a leading Indian Investment Bank that specializes in
asset-based financing, structured finance, infrastructure development and a
wide range of financial services including project finance, today announce the
establishment of a joint venture to serve the aircraft fleet requirements of
the rapidly growing Indian airline market. At the current juncture, IL&FS
has an asset footing of USD 1.75 bn, and a pipeline of projects under development
in excess of USD 20 bn.
The venture will invest in commercial aircraft to be leased to or financed for
airlines in
Under the venture, Bravia Capital and IL&FS shall work together to source
and market appropriate aircraft; develop traditional, structured and innovative
short-term structures; arrange debt financing while investing their own equity
risk capital. In addition, Bravia shall provide technical support for each
aircraft transaction, which includes cargo conversion and maintenance
management facilities.
"Few markets in the world are as vibrant as the Indian aviation
marketplace. There's an infrastructure explosion taking place. Their knowledge
of the aviation business and their expertise in local infrastructure
development make their joint venture with IL&FS the perfect combination of
strengths going forward. While this important venture is mutually beneficial,
more importantly, it will benefit
Bravia and IL&FS will jointly market the venture to airline operators and
other aviation projects; develop local financial structures to support
transactions; arrange, source and participate in syndication of senior debt,
mezzanine debt and equity financing, as appropriate.
"The current boom in aviation and aviation related infrastructure in
About IL&FS
As one of
About Bravia Capital
Bravia Capital Partners is a global finance leasing company that specializes in
addressing the aircraft fleet requirements in the aviation marketplaces of
Group
Companies
In order to achieve focussed specialisation and
competence, the IL&FS Group operates through various legal entities in both
its infrastructure and financial service businesses. While IL&FS itself
carries out a large part of the business, significant portions are domiciled in
group companies due to statutory / strategic reasons
Sector
Organisationally, the IL&FS Group has evolved along routes perfectly
configured to business requirements. Technical support and service groups
provide specialised expertise. Project development and sectoral companies house
the ability to seed initiatives and carry them through to completion. Strong
core skills - key to successful project development and project financing
across sectors - have been developed within the Group. These have aided
IL&FS in spreading its expertise across a variety of sectors, nationwide
Services
The IL&FS Group has developed the requisite
capabilities to take infrastructure projects from concept to commissioning. The
organisation has developed a pool of institutionalised resources and functional
expertise in various areas. These areas include project management, project
engineering, finance, risk management and environmental-social management, all
of which are strategic to the infrastructure development activity
Infrastructure Services
Financial Services
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.40.90 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.55.47 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
- |
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
91 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background
(20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for
credit transaction. It has above average (strong) capability for payment of
interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and
principal sums in default or expected to be in default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit not recommended |