MIRA
INFORM REPORT
|
Report Date : |
09.05.2007 |
IDENTIFICATION DETAILS
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Name : |
SEW CONSTRUCTIONS LIMITED |
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Registered Office : |
6-3-871, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
07.02.1983 |
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Com. Reg. No.: |
01-3796 |
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CIN No.: [Company
Identification No.] |
U45200AP1983PLC003796 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS00011E |
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PAN No.: [Permanent
Account No.] |
AADCS4061P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Subject acts as a Civil Engineering Construction Company |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having
satisfactory track records. Directors are reported as experienced and
respectable businessmen. Trade relations are reported as fair. Business is
active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
6-3-871, |
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Tel. No.: |
91-40-23402153/3270/23402153/23403273/66512157 |
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Fax No.: |
91-40-23405016/23417553 |
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E-Mail : |
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Website : |
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Regional Offices : |
C-4/6, Safdarjung
Development Area, Tel - 91 - 11 - 2696 2690 Fax - 91 - 11 - 2696 2684 E-mail - sewdelhi@usa.net 1A-287, Sector-III, Tel - 91 - 33
- 2355 5398 27-6-15, Tel - 91 - 866 - 2575 126 |
DIRECTORS
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Name : |
Mr. C Lakshmirajam |
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Designation : |
Director |
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Address : |
Plot No. 1267A Road No. 63, Jubilee Hills, |
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Date of Birth/Age : |
04.03.1951 |
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Date of Appointment : |
01.10.1997 |
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Name : |
Mr. Y Gangadhara Rao |
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Designation : |
Director |
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Address : |
Plot No. 528A, Road No. 29, Jubilee Hills, |
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Date of Birth/Age : |
15.08.1954 |
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Date of Appointment : |
12.09.1998 |
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Name : |
Mr. Y S Prakash Rao |
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Designation : |
Director |
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Address : |
Plot No. 99, Suryaphase II, Kavuri Hills, |
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Date of Birth/Age : |
01.06.1956 |
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Date of Appointment : |
12.09.1998 |
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Name : |
Mr. S Anil Kumar |
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Designation : |
Director |
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Address : |
Padmaja Paradise, Plot No. 44, Flat No. 44, Flat No. 302, |
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Date of Birth/Age : |
02.06.1966 |
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Date of Appointment : |
12.09.1998 |
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Name : |
Mr. M Gopala Krishna |
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Designation : |
Director |
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Address : |
C – 10, SBH Colony, Saidabad, |
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Date of Birth/Age : |
22.08.1951 |
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Date of Appointment : |
31.10.2003 |
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Name : |
Mr. V Raj Kumar |
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Designation : |
Director |
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Address : |
Plot No. 2704, Road No. 0, |
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Date of Birth/Age : |
02.09.1969 |
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Date of Appointment : |
01.07.2004 |
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Name : |
Mr. M Thirpath Reddy |
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Designation : |
Director |
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Name : |
Mr. S Sivaram Krishna |
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Designation : |
Director |
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Name : |
Mr. V Raja Ram Mohan Rao |
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Designation : |
Director |
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Name : |
Mr. V Rajasekhar |
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Designation : |
Director |
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Name : |
Mr. Y Balakrishna Rao |
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Designation : |
Director |
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Name : |
Ms I. V. LAkshmi |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. V Nageswara Rao |
68474 |
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Mr. V Venkateswara Rao |
36936 |
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Mr. V Raja Rama |
20665 |
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Mr. S Sivarama Krishna |
16654 |
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Mr. Y S Prakasa Rao |
13453 |
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Ms. Y Padmavathi |
11310 |
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Mr. M Gopala Krishna |
34809 |
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Mr. V Bultemma |
18203 |
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Mr. V Rajkumar |
17459 |
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Mr. K Srinivasa Rao |
12743 |
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Ms. Y Preethi |
24950 |
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Ms. Y Gangadhara Rao |
13648 |
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Mr. C Srikanth |
20616 |
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Ms. M Vasaudevamma |
10800 |
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Ms. S Kasturi |
13500 |
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Ms. Y Vijaya Lakshmi |
12000 |
BUSINESS DETAILS
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Line of Business : |
Subject acts as a Civil Engineering Construction Company |
GENERAL INFORMATION
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Customer: |
List
of Clients(Government & Government Corporations) Andhra
Pradesh
ii) Andhra Pradesh State Electricity
Board. iii) Visakhapatnam Municipal Corporation. iv) Andhra Pradesh State Road Transport
Corporation. v) National Highways Authority of vi) Rashtriya Ispat Nigam Limited( Madhya
Pradesh
ii) Madhya Pradesh State Electricity
Board. iii) Public Health Engineering Department,
Govt. of Madhya Pradesh. iv) Narmada Valley Development
Corporation, Govt. of Chattisgarh
ii) Chattisgarh State Electricity Board. iii) South Eastern Coal Fields Limited,
Bilaspur
ii) Tapi Irrigation Development
Corporation, Govt. of
Meghalaya
Private
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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 : |
Brahmayya & Company Chartered Accountant |
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Address : |
403 & 404, Golden Green Apartment, Irrum Manzil Colony, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3500000 |
Equity Shares |
Rs. 100/- Each |
Rs. 350.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2288930 |
Equity Shares |
Rs. 100/- Each |
Rs. 228.893
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 |
228.893 |
152.553 |
81.340 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
813.470 |
405.401 |
339.674 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1042.363 |
557.954 |
421.014 |
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LOAN FUNDS |
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1] Secured Loans |
865.102 |
771.970 |
301.697 |
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2] Unsecured Loans |
565.317 |
624.467 |
603.641 |
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TOTAL BORROWING |
1430.419 |
1396.437 |
905.338 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
9.923 |
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TOTAL |
2472.782 |
1954.391 |
1336.275 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
853.193 |
399.185 |
212.689 |
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Capital work-in-progress |
108.849 |
53.358 |
33.858 |
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INVESTMENT |
7.321 |
6.306 |
44.409 |
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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 |
375.896
|
293.603 |
168.748 |
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Sundry Debtors |
184.262
|
228.641 |
179.758 |
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Cash & Bank Balances |
469.903
|
540.450 |
372.016 |
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Other Current Assets |
449.000
|
395.875 |
295.144 |
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Loans & Advances |
772.426
|
615.659 |
552.967 |
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Total
Current Assets |
2251.487
|
2074.228 |
1568.633 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
503.146
|
404.236 |
377.962 |
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Provisions |
244.922
|
174.450 |
145.352 |
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Total
Current Liabilities |
748.068
|
578.686 |
523.314 |
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Net Current Assets |
1503.419
|
1495.542 |
1045.319 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2472.782 |
1954.391 |
1336.275 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
|
31.03.2004 |
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Sales Turnover |
4217.435 |
|
1522.324 |
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Other Income |
29.375 |
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Total Income |
4246.810 |
|
1522.324 |
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Profit/(Loss) Before Tax |
350.368 |
|
100.002 |
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Provision for Taxation |
114.900 |
|
37.184 |
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Profit/(Loss) After Tax |
235.468 |
|
62.818 |
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Expenditures : |
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Manufacturing Expenses |
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1102.218 |
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Administrative Expenses |
3705.638 |
|
35.217 |
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Salaries, Wages, Bonus, etc. |
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|
97.625 |
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Interest |
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|
33.100 |
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Depreciation & Amortization |
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|
50.415 |
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Other Expenditure |
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|
78.150 |
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Total Expenditure |
3705.638 |
|
1396.725 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total
Income |
(%) |
5.54
|
-- |
4.12 |
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Net Profit Margin (PBT/Sales) |
(%) |
8.30
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-- |
6.56 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
88.70
|
-- |
5.61 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.33
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-- |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.08
|
3.53 |
3.39 |
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Current Ratio (Current Asset/Current Liability) |
|
3.00
|
3.58 |
2.99 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Plant &
Machinery
- Transport
Vehicles
- Inspection
Vehicles
- Office
Equipment
As per website
details
Profile
In the year 1960, Sri.
VALLURUPALLI NAGESWARA RAO, established a civil engineering construction
company in the name and style of SOUTHERN
ENGINEERING WORKS at
Growing steadily and within a span of seven years, SEW achieved recognition and in the
year 1967 was awarded a GOLD MEDAL by the Hon'ble Prime Minister of India for
achieving a record progress of masonry at Nagarjuna Sagar Dam on a single day.
With the experience gained at Nagarjuna Sagar Dam the company
participated in building major dams at TAWA, BARGI, BANSAGAR and HASDEO BANGO
in Madhya Pradesh and Masonry for SRISAILAM DAM in Andhra pradesh. While meeting
the set targets the company attained the status of specialists in construction
of high dams.
In the year 1983 the company was converted into a Private Limited Company. With
increasing revenues a public limited company was formed in 2001 under the name
and style of The company .
Over the years, The
company ., has diversified its activities into construction of Lined
Irrigation Canals; Power Projects (Hydel, Thermal and Gas based); Industrial,
Commercial and Residential Buildings; Barrages, Wiers and Aqueducts; Roads and
Bridges; Fabrication and Erection of Gates; Water Supply Projects and E.P.C.
contracts for Hydel Power Projects.
The company derives its strength
from its shareholders and employees and the company accords top most priority
for their growth.
The main objective of The
company has always been to execute quality work within the stipulated
time frame with a sense of dedication.
The company is backed by a group of
talented, committed and loyal employees. The company has the latest machinery and equipment to execute the
projects in time.
The company is aiming towards
further achievements of growth with excellent client relationship and a
satisfied workforce, and to be among the leaders in the construction industry.
company is guided by a distinguished board of
directors with vast experience and knowledge in their areas of specialization
and have contributed immensely to the growth of the company.
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.40.78 |
|
|
1 |
Rs.81.34 |
|
Euro |
1 |
Rs.55.53 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
55 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|