MIRA
INFORM REPORT
|
Report Date : |
24.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
M FAR HOTELS LIMITED |
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Registered Office : |
NH 47 By Pass, Kundannur JN, Cochin – 682304, Kerala |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.07.1997 |
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Com. Reg. No.: |
09-11649 |
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CIN No.: [Company
Identification No.] |
U55101KL1997PLC011649 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNM01094C |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
To carry on the business of Hotel, Motel, Lodge, Resorts, Tourist
centres, Cottages, Holiday Homes, Amusement Parks, Health resorts and for this
purpose purchase, develop, construct, hire, lease, rent and deal in land,
building, houses or any interest therein in India and outside India. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 1800000 |
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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 in the Indian
Hospitality industry. The company has turned the corner and wiped-off all its
previous losses. Trade relations are fair. Business is active. Payments are
reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
NH 47 By Pass, Kundannur JN, Cochin – 682304, Kerala, India |
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Tel. No.: |
91-484-2706116 / 2706117 |
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Fax No.: |
91-484-2706118 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. P. Mohamed Ali |
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Designation : |
Director |
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Address : |
Chandanaparambil House, Talikulam, Kerala |
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Date of Birth/Age : |
06.06.1949 |
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Date of Appointment : |
23.07.1997 |
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Name : |
Mr. S. K. K. Nair |
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Designation : |
Director |
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Address : |
879, Abhayam Janatha Road, Vyttila Cochin, Ernakulam – 682019, Kerala,
India |
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Date of Birth/Age : |
21.09.1947 |
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Date of Appointment : |
23.07.1997 |
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Name : |
Mr. M. M. Abdul Basheer |
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Designation : |
Director |
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Address : |
Mucheth House, Nedumthode, Mudickal, Perumbavoor, Ernakulam – 682019,
Kerala, India |
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Date of Birth/Age : |
28.11.1961 |
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Date of Appointment : |
23.07.1997 |
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Name : |
Mr. Y. Moideen Rizwan |
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Designation : |
Director |
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Address : |
AL Manhal Vaslane, Mangalore, Dakshina Kannada, Karnataka |
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Date of Birth/Age : |
23.02.1973 |
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Date of Appointment : |
28.08.1999 |
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Name : |
Mr. P. H. Kurien |
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Designation : |
Managing Director |
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Address : |
Kerala State Industrial Development Corporation Limited, Kowadiar,
Trivandrum, Kerala |
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Date of Birth/Age : |
20.01.1959 |
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Date of Appointment : |
03.09.2003 |
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Name : |
Mr. K. P. Vijayan |
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Designation : |
Director |
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Address : |
Krishnalayam, Orkkatteri P. O., Vadakara, Calicut – 673501, Kerala,
India |
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Date of Birth/Age : |
20.05.1959 |
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Date of Appointment : |
07.01.2002 |
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Name : |
Mr. Muttanisseril Abdulrahumankunju Mohammed Ali |
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Designation : |
Director |
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Address : |
Ashiyana, Subash Nagar, Poonithura, Cochin – 682038, Kerala, India |
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Date of Birth/Age : |
21.09.1945 |
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Date of Appointment : |
20.04.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Rasiya Mohamed Ali |
|
9506360 |
|
P. Mohamed Ali |
|
7071924 |
|
Galfar India Limited |
|
5321603 |
|
Mohiyudeen Mohamed Ali |
|
1617141 |
|
Amina Mohamed Ali |
|
1153000 |
|
MFAR Holdings Private Limited |
|
1310000 |
|
Khadeeja Zeenath |
|
750000 |
|
Safiya Abdul Rahiman |
|
259900 |
|
Meridien S. A. |
|
220066 |
|
K. A. M. Sageer |
|
40000 |
|
Sameerali Sageer |
|
30000 |
|
Surumi |
|
30000 |
|
Bismi Holdings Limited |
|
494 |
|
S. K. K. Nair |
|
1 |
|
M. M. Abdul Basheer |
|
1 |
|
Sajitha Basheer |
|
1 |
|
P. M. Sheriff |
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1 |
|
Balu Paul |
|
1 |
|
Total |
|
27310493 |
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|
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Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Bodies corporate |
|
24.29 |
|
Directors or relatives of directors |
|
75.71 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
To carry on the business of Hotel, Motel, Lodge, Resorts, Tourist centres,
Cottages, Holiday Homes, Amusement Parks, Health resorts and for this purpose
purchase, develop, construct, hire, lease, rent and deal in land, building,
houses or any interest therein in India and outside India. |
GENERAL
INFORMATION
|
Bankers : |
Federal Bank Limited Ernakulam North Branch, Cochin – 682018,
Kerala, India The Dhanalakshmi Bank Limited M. G. Road, Emakulam |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Krishnamoorthy and Krishnamoorthy Chartered Accountants |
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Address : |
Paliam Road, Cochin, Ernakulam – 682016, Kerala, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27850000 |
Equity Shares |
Rs. 10/- each |
Rs. 278.500 Millions |
|
915000 |
Preference Shares |
Rs. 100/- each |
Rs. 91.500 Millions |
|
|
Total |
|
Rs. 370.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27310493 |
Equity Shares |
Rs. 10/- each |
Rs. 273.105 Millions |
|
915000 |
Preference Shares |
Rs. 100/- each |
Rs. 91.500 Millions |
|
|
Total |
|
Rs. 364.605
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
364.605 |
364.605 |
364.605 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
87.022 |
58.714 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
[85.013] |
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|
NETWORTH |
451.627 |
423.319 |
279.592 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
278.416 |
319.036 |
344.876 |
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2] Unsecured Loans |
0.293 |
0.724 |
89.750 |
|
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TOTAL BORROWING |
278.709 |
319.760 |
434.626 |
|
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DEFERRED TAX LIABILITIES |
66.539 |
37.769 |
0.000 |
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TOTAL |
796.875 |
780.848 |
714.218 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
604.695 |
597.580 |
585.519 |
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Capital work-in-progress |
6.506 |
1.881 |
0.000 |
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|
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INVESTMENT |
90.012 |
90.011 |
302.748 |
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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 |
0.000
|
0.000 |
0.000 |
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|
Sundry Debtors |
0.000
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
0.000
|
0.000 |
0.000 |
|
|
Other Current Assets |
106.688
|
90.904 |
45.341 |
|
|
Loans & Advances |
84.304
|
85.636 |
56.399 |
|
Total
Current Assets |
190.992
|
176.540 |
101.740 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
66.669
|
64.123 |
277.550 |
|
|
Provisions |
28.661
|
21.041 |
0.000 |
|
Total
Current Liabilities |
95.330
|
85.164 |
277.550 |
|
|
Net Current Assets |
95.662
|
91.376 |
[175.810] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.761 |
|
|
|
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|
|
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TOTAL |
796.875 |
780.848 |
714.218 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
243.894 |
212.796 |
209.391 |
|
|
Other Income |
142.100 |
315.401 |
22.819 |
|
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Total Income |
385.994 |
528.197 |
232.210 |
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|
|
|
|
|
|
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Profit/(Loss) Before Tax |
65.276 |
252.327 |
25.578 |
|
|
Provision for Taxation |
36.967 |
59.341 |
0.000 |
|
|
Profit/(Loss) After Tax |
28.309 |
192.986 |
25.578 |
|
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
NA |
58.964 |
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Imports : |
|
|
|
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Total Imports |
NA |
NA |
0.881 |
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Expenditures : |
|
|
|
|
|
|
Administrative Expenses |
0.000 |
0.000 |
23.142 |
|
|
Raw Material Consumed |
36.675 |
36.611 |
0.000 |
|
|
Consumption of stores and spares parts |
14.503 |
6.671 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
46.963 |
36.150 |
30.893 |
|
|
Payment to Auditors |
0.197 |
0.160 |
0.000 |
|
|
Interest |
25.619 |
24.602 |
28.558 |
|
|
Insurance Expenses |
0.930 |
0.689 |
0.000 |
|
|
Power & Fuel |
37.245 |
35.923 |
0.000 |
|
|
Depreciation & Amortization |
26.713 |
24.546 |
23.647 |
|
|
Other Expenditure |
131.873 |
110.518 |
100.392 |
|
Total Expenditure |
320.718 |
275.870 |
206.632 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
7.33
|
36.54 |
11.02 |
|
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
26.76
|
118.58 |
12.22 |
|
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|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.20
|
32.60 |
3.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.60 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.83
|
0.96 |
2.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.00
|
2.07 |
0.37 |
LOCAL AGENCY
FURTHER INFORMATION
BANKERS CHARGES
REPORT AS PER REGISTRY
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U55101KL1997PLC011649 |
|
Name of the
company |
M FAR HOTELS LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
NH 47 By Pass, Kundannur JN, Cochin – 682304, Kerala |
|
Type of charge |
Movable Property |
|
Particular of
charge holder |
Federal Bank Limited Ernakulam North Branch, Cochin – 682018,
Kerala, India |
|
Nature of
description of the instrument creating or modifying the charge |
Term loan
agreement dated 09.11.2007 |
|
Date of instrument
Creating the charge |
09.11.2007 |
|
Amount secured by
the charge |
Rs. 0.527 Million |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
: BPLR @ 2.75 % subject
to a minimum interest rate of 11 % p.a. with monthly rest. The present PLR of
the Bank is 13.75 % and accordingly the borrower shall pay interest @ 11 %
p.a. with monthly rests. Terms of
repayment : Repayable in 36
monthly installments of Rs. 17,254/- each. The first of such installment
shall be paid on 09.12.2007 and the subsequent installment on or before the
same day of succeeding months. Margin : As may be decided
by the bank. Extent and
operation of the charge : The charge
operates as security for the term loan Rs. 0.527 Millions sanctioned to the
company. |
|
Short particulars
of the property charged |
Hypothecation by way of first charge on vehicles : Traveller [II] DI-3700 MM Wheel Base Fitted with TD 2650 FTI [Bharat Stage II Complaint] Engine, [4] 215 R 14 Tyres with ETT, Disc Brakes and H/B seats. |
FIXED ASSETS
- Land and Land
Development
- Building
- Plant,
Equipment and Machineries
- Furniture and
Fixture
- Computer and
Accessories
- Vehicles
- Motor Car
FINANCIALS
- Financial and Management Information System
To practice in
integrated accounting system which unifies both financial and costing, the
books of accounts and other records have been designed to ensure compliance
with the relevant provisions of the Companies Act 1956, on the one hand and to
meet the internal requirements of information and systems for planning and
review internal control on h other hand.
Term loans and
interest accrued and due thereon from banks and financial institutions are
secured by a pari passu first charge on the movable and immovable properties of
the company and an equitable mortgage of the freehold and lease hold land.
Further these loans are guaranteed by an unconditional and irrevocable
corporate guarantee of Galfar India Private Limited and also the personal
guarantee of promoter director of the company.
- External commercial borrowings is secured by a mortgage over all
movable and immovable assets of the company on a pari passu basis with
other term lending institutions and also the personal guarantee of
promoter director of the company.
Hire purchase loan
is secured by hypothecation of vehicles purchased.
Cash, credit
facility from Bank is secured on the book debts and stock of the company and also the personal guarantee
of promoter director of the company.
- The company has taken on operating lease 9.59 acres of land and semi
finished building structure from Galfar India Private Limited. The
arrangement is treated as an Operating Lease considering the substance of
the transaction, as the substantial portion of the subject matter of the
lease is land. The lease rent payable for year is fully provided for in
the accounts.
The details of future liability on account of the lease is as follows :
|
|
Rs in Millions |
|
Lease Rentals due for the year |
1.500 |
|
Obligation on non-cancelable lease : |
|
|
Not later than one year |
3.000 |
|
Later than year and not later than 5
years |
16.000 |
|
Later than 5 Years |
27.000 |
Contingent liability not provided for in the accounts
Bank guarantee given for import under EPCG
license of Rs. 27.400 Millions in order to meet the export obligation
accounting to Rs. 237.200 Millions within a period of 5 years. Against the
above, the company had already met export obligation to the extent of Rs.
144.500 Millions as on 31st March 2005.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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.39.56 |
|
UK Pound |
1 |
Rs.77.45 |
|
Euro |
1 |
Rs.57.89 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|