MIRA
INFORM REPORT
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Report Date : |
28.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
UNITY INFRAPROJECTS LIMITED |
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Formerly Known As : |
UNITY BUILDERS LIMITED |
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Registered Office : |
1252, Pushpanjali, Old
Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.04.1997 |
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Com. Reg. No.: |
107153 |
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CIN No.: [Company
Identification No.] |
U99999MH1997PLC107153 |
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PAN No.: [Permanent
Account No.] |
AAACU4560E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Construction of buildings –
residential, commercial and industrial.
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RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 15000000 |
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Status : |
Good |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having fine track. Available information
indicates high financial responsibility of the company. Financial position is
good. Trade relations are fair. Payments are slow but correct. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
1252, Pushpanjali, Old
Prabhadevi Road, Prabhadevi, Mumbai – 400025, Maharashtra, India |
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Tel. No.: |
91-22-66665500 |
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Fax No.: |
91-22-66665599 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Kishore Avarsekar |
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Designation : |
Chairman and Managing Director |
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Address : |
A-601,
Vicky Apartments, P. Balu Marg, Prabhadevi, Mumbai - 400 025 |
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Name : |
Mr. Abhijit
Avarsekar |
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Designation : |
Vice Chairman and Managing Director |
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Address : |
A-601,
Vicky Apartments, P. Balu Marg, Prabhadevi, Mumbai - 400 025 |
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Name : |
Mr. Ashish K.
Avarsekar |
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Designation : |
Executive Directors |
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Address : |
A-601,
Vicky Apartments, P. Balu Marg, Prabhadevi, Mumbai - 400 025 |
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Name : |
Mrs. Puspa K.
Avarsekar |
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Designation : |
Executive Directors |
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Address : |
A-601,
Vicky Apartments, P. Balu Marg, Prabhadevi, Mumbai - 400 025 |
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Name : |
Mr. Chaitanya
Joshi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Girish
Gokhale |
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Designation : |
IAS Executive Officer
– Chief sec. Government of Maharashtra |
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Name : |
Mr. Anil G. Joshi |
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Designation : |
Chairman – Dena
Bank |
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Name : |
Mr. Suresh Iyer |
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Designation : |
Executive IRS
Officer |
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Name : |
Mr. Yogen Lal |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Madnav
Nadkarni |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Rajiv Shah |
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Designation : |
Chief Procurement Officer |
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Name : |
Mr. Manoj Thakar |
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Designation : |
Company Secretary |
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Name : |
Mr. Iftekar Ahmed |
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Designation : |
Senior Vice-President |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 22.06.2007)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters and Directors |
4939300 |
36.948683
% |
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Bodies Corporates |
4884626 |
36.539692
% |
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Resident Individuals |
1371714 |
10.261176% |
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Foreign Institutional Investors |
1338326 |
10.011415% |
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Mutual Funds |
579725 |
4.336662 % |
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Indian Financial Institutions |
70977 |
0.530947 % |
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HUF |
69264 |
0.518133% |
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Banks |
53464 |
0.399940 % |
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Clearing Members |
38135 |
0.285271 % |
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Non Resident Indians |
18169 |
0.135914% |
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Directors And Relatives |
4300 |
0.032166% |
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Total |
13368000 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Construction of buildings –
residential, commercial and industrial.
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GENERAL
INFORMATION
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No. of Employees : |
Around 850 |
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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 : |
C. B.
Chhajed and Company Chartered
Accountants |
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Address : |
13, Manik Apartment, Bhavani Shankar Road, Dadar, Mumbai –
400028, Maharashtra, India |
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Tel No.: |
91-22-4226830 / 4314804 |
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Associate and Group Companies : |
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Joint Venture : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000
Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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13368000 |
Equity Shares |
Rs.10/- each |
Rs.133.680
millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
133.680 |
106.000 |
100.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2884.788 |
847.272 |
344.110 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3018.468 |
953.272 |
444.110 |
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LOAN FUNDS |
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1] Secured Loans |
897.980 |
728.007 |
581.007 |
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2] Unsecured Loans |
4.221 |
17.653 |
13.591 |
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TOTAL BORROWING |
902.201 |
745.660 |
594.598 |
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DEFERRED TAX LIABILITIES |
4.628 |
4.243 |
6.334 |
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TOTAL |
3925.297 |
1703.175 |
1045.042 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
356.477 |
237.826 |
104.091 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
599.304 |
75.699 |
62.391 |
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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 |
259.341 |
194.357 |
115.830 |
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Sundry Debtors |
2160.399 |
1334.513 |
942.040 |
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Cash & Bank Balances |
1022.761 |
642.685 |
391.740 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
1791.101 |
772.982 |
488.265 |
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Total
Current Assets |
5233.602
|
2944.537
|
1937.875 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1870.183 |
1409.961 |
987.567 |
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Provisions |
394.822 |
145.986 |
71.960 |
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Total
Current Liabilities |
2265.005
|
1555.947 |
1059.527 |
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Net Current Assets |
2968.597 |
1388.590 |
878.348 |
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MISCELLANEOUS EXPENSES |
0.919 |
1.060 |
0.212 |
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TOTAL |
3925.297 |
1703.175 |
1045.042 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
5428.625 |
3287.428 |
2652.970 |
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Share of Profit – Joint Ventures |
6.627 |
16.585 |
26.509 |
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Other Income |
100.340 |
27.724 |
26.596 |
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Total Income |
5535.592 |
3331.737 |
2706.075 |
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Profit/(Loss) Before Tax |
618.988 |
306.463 |
175.708 |
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Provision for Taxation |
195.614 |
60.534 |
57.045 |
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Profit/(Loss) After Tax |
423.374 |
245.929 |
118.663 |
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Import Value |
30.707 |
NA |
NA |
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Expenditures : |
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Construction
expenses |
4474.194 |
2702.715 |
2248.180 |
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Employees
remuneration and welfare expenses |
154.756 |
90.226 |
45.208 |
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Office and
establishment expenses |
112.413 |
65.430 |
151.535 |
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Finance charges
|
120.741 |
128.679 |
68.638 |
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Depreciation |
54.500 |
38.225 |
16.805 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
4916.604 |
3025.275 |
2530.366 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 [1st Quarter] |
30.09.2007 [2nd Quarter] |
31.12.2007 [3rd Quarter] |
|
Type |
|
|
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Sales Turnover |
1482.600 |
1526.600 |
2315.300 |
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Other Income |
24.600 |
25.800 |
21.800 |
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Total Income |
1507.200 |
1552.400 |
2337.100 |
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Total Expenditure |
1295.500 |
1324.600 |
2000.000 |
|
Operating Profit |
211.700 |
227.800 |
337.100 |
|
Interest |
41.700 |
55.100 |
61.200 |
|
Gross Profit |
170.000 |
172.700 |
275.900 |
|
Depreciation |
15.500 |
16.800 |
18.300 |
|
Tax |
45.700 |
47.500 |
80.000 |
|
Reported PAT |
108.800 |
108.400 |
177.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
7.65
|
7.38 |
4.39 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.40
|
9.32 |
6.62 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
11.07
|
9.63 |
8.60 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.32 |
0.40 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.05
|
2.41 |
3.72 |
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Current Ratio (Current Asset/Current Liability) |
|
2.31
|
1.89 |
1.83 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject
was incorporated on 9th April, 1997 at Mumbai in Maharashtra under
the name and style of Unity Builders Limited having Company Registration Number
107153.
The name
of the company was changed to present name with effect from 07.02.2000.
The
company took-over the running business of Unity Construction Company in the
year 2000.
OPERATIONS
The turnover achieved by the Company was at Rs.5428.625 Millions and has shown
an increase of 65.13% as compared to Rs.3287.428 Millions in the previous year.
The Profit before tax was Rs.618.988 Millions as compared to Rs.306.463
Millions in the previous year.
The total balance value of work on hand as on March 31, 2007 was Rs.20000
Millions.
MANAGEMENT DISCUSSION AND
ANALYSIS
OVERVIEW
Unity Infraprojects Limited is one of India's leading engineering and
construction companies. The company provides integrated engineering,
procurement and construction services for civil construction and infrastructure
sector projects. Unity's project expertise includes: civil construction,
transportation engineering, and irrigation and water supply projects.
INDUSTRY STRUCTURE AND
DEVELOPMENTS
The company operates in construction industry which has a mix of big, mid
sized, small and very small players. Due to the current growth in the
construction activity there is very healthy growth in the order book positions
and turnovers of almost all construction companies.
Infrastructure being vital for economic development of a country, activities
related to infrastructure has gathered momentum in the last few years.
Significant measures are being initiated by both state and central governments
with several projects being planned in sectors like roads and highways, ports,
airports, railways, and water supply, to name a few.
Strong growth rates were achieved in electricity generation, telecom, railways,
roads, ports and civil aviation. Though the initiatives taken in the number of
sectors like railways, roads, etc. have started yielding results, the
government has identified that infrastructure inadequacy constrains economic
growth. The government has recognized that ports need to have adequate policy
framework to promote inter-port and intra-port competition. Also in the civil
aviation sector, there is an immediate need to improve regulation and to build
better airports.
To sustain its current pace of growth, India will require a significant boost
in infrastructure investment, from its current level of 3.5% of GDP to about
8%, according to think tanks at the Asian Development Bank. In the roads
sector, the government had, been encouraging private participation, via
measures like duty-free import of machinery, tax exemption, FDI up to 100%,
high concession period for BOT operators and easier borrowing norms. The
government has adopted a similar sharp focus in the power sector, envisaging
massive expansion, allowing measures like increased Budgetary spending,
promotion of languishing state government projects, easier procedures,
improving tariff structures and identification of new projects.
Some other crucial areas where both construction and infrastructure come into
play are Special Economic Zones, civil aviation and airport modernization,
irrigation projects and port development, where the amount of investment
expected is huge.
The growth in the Indian economy has led to a growth in per capita income
levels, which has fueled an increasing demand for housing, transportation and commercial
facilities. Easier access to capital due to easy availability of housing loans,
tax benefits from the government and India's success in the IT/ ITES sector has
provided a boost to the construction industry. It is estimated that the growth
in the IT/ ITES sector will mean construction investments of Rs.148 billion by
FY08, compared to the aggregate investment of Rs.74 billion over FY03-05. The
boom in the retailing industry is expected to a further construction investment
of Rs.112 billion over the next five years.
OPPORTUNITIES AND OUTLOOK
In the next few months, the company will be bidding for mega projects in
transportation and irrigation and water supply sectors. Power sector will also
be a target area, though it is too soon for any concrete plans.
With the balance sheet close to around Rs.4000 Millions, the company is
confident enough to attempt projects around three to four times that size.
Today, Unity is attempting projects with greater contract values.
The company's decision to concentrate on turnkey and Build-Operate-Transfer
projects is designed to maximize margins. The company has traditionally
followed the route of conservative bidding, only for projects where the margins
are above-average.. Going by the performance in the first quarter, we expect to
maintain the growth rate in the current financial year as well.
Unity has also decided to venture into projects where the company used joint
ventures earlier. The thinking that drove the earlier JVs was to first acquire
the necessary skill sets for a particular sector from the partner, and then bid
independently.
Contingent Liability:
|
|
Rs in
Millions |
|
Bank Guarantees |
2431.800 |
|
Letter of Credit |
173.180 |
Trade Reference:
- Mahendra Brothers
- ACC Dealer
- Prachi Electricals
Fixed Assets
- Land and buildings
- Plant and machineries
- Furniture and fixtures
- Office equipments
- Computers
- Vehicles
AS PER WEBSITE
Profile
With over a quarter century of excellence in diverse areas of infrastructure development, Unity Infraprojects is today one of the largest civil contractors in India. Subjects have successfully completed some of the most challenging infrastructure projects in the country. Many of the best dams, tunnels, bridges, flyovers, subways, roads and buildings of India bear the Unity Infraprojects stamp of quality, reliability and timely project completion.Unity Infraprojects is an ISO 9001-2000 and 14001-2004 company, with accreditation from The ANSI-ASQ National Accreditation Board and Orion Registrar Inc. Company gone for Public issue in the year 2006 by listing both in BSE as well as NSE. It is the flagship unit of the Mumbai based KK Group of Companies which has its interests spread across a wide spectrum of businesses such as concrete block manufacturing and quarrying, hotel and organized retailing industries.
Unity Infraprojects has done the city of Mumbai proud - with an array of
glittering landmarks. Utilitarian projects like the impressive Chhatrapati
Shivaji Domestic Airport Terminal 1B , Khodadad Circle flyover at Dadar, the
ultramodern CST Subway, the new generation Millennium Business Park and the
imposing Seawoods Estate for NRI’s at Navi Mumbai; Unity Infraprojects Limited
has ushered in a sea change in the city’s landscape.
News
1. Unity Infraprojects Limited was felicitated as the second fastest growing construction company for the year 2006 with NICMAR Awards 2006 by Construction World
2. Unity Infraprojects Limited was felicitated jointly by Lalit Doshi Memorial Trust and SICOM Limited for its outstanding performance for the year 2007. The award was presented by Mr. Vijay K. Nambiar, Chief Cabinet, the secretary general of United Nation.
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.42.79 |
|
UK Pound |
1 |
Rs.85.04 |
|
Euro |
1 |
Rs.6734 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
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--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--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 |
|
63 |
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 |
|