MIRA
INFORM REPORT
|
Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
|
Name : |
KETAN CONSTRUCTION LIMITED |
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Registered Office : |
KCL Near 150 FT, Ring Road, Amin Marg Junction, Rajkot-360001, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
11.11.1999 |
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Com. Reg. No.: |
04-36877 |
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CIN No.: [Company
Identification No.] |
U45200GJ1999PLC036877 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTK01694A |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Subject is engaged in Construction of Roads and Dams |
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 3300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed construction company. Directors are reported as experienced and respectable businessmen. Their trade relations are fair. Business is active. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions. Mr. Sanjay, Office Assistance, Mr. Rajanikant (Accountant)
and Gitnajali (Operator) were contacted and lately Mr. Mayank ( HR Manager)
Parted some details. |
INFORMATION PARTED BY
|
Name : |
Mr. Mayank Vyas |
|
Designation : |
Hr Manager |
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Contact No.: |
91-9328442536 |
|
Date : |
17.11.2008 |
LOCATIONS
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Registered Office : |
KCL Near 150 FT, Ring Road, Amin Marg Junction, Rajkot-360001, |
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Tel. No.: |
91-281-2573284 |
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Mobile No.: |
91-9328442536 |
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Fax No.: |
91-281-2241879 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Branches : |
A/21, New York Tower, Near Thaltej Circle, S. G. Road,
Ahmedabad, Gujarat, India |
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Tel. No.: |
91-79-26843577/ 26857214 |
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Fax No.: |
91-79-26851773 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Ramesh Amarshi Barad |
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Designation : |
Managing Director |
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Address : |
Milanuni, 3, |
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Date of Birth/Age : |
11.08.1959 |
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Date of Appointment : |
11.11.1999 |
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Name : |
Mr. Amit V Barad |
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Designation : |
Whole-time Director |
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Address : |
3/10, Janaklayan Society, Plot No. 31, Behind LIC Office,
Rajkot-360001, |
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Date of Birth/Age : |
24.07.1979 |
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Date of Appointment : |
22.01.2002 |
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Name : |
Mr. Harish A Barad |
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Designation : |
Whole-time Director |
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Address : |
2, |
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Date of Birth/Age : |
24.04.1969 |
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Name : |
Mr. Paresh A Barad |
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Designation : |
Whole Time Director |
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Address : |
2, |
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Date of Birth/Age : |
05.07.1966 |
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Date of Appointment : |
14.06.2000 |
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Name : |
Mr. Sanjay A Barad |
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Designation : |
Director |
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Address : |
2, |
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Date of Birth/Age : |
24.04.1968 |
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Date of Appointment : |
14.06.2000 |
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Name : |
Mr. R D Soni |
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Designation : |
Additional Director |
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Address : |
11, Arti Society, Near Hariram Nagar, Vadodara-390023, |
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Date of Birth/Age : |
05.12.1941 |
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Date of Appointment : |
17.03.2006 |
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Name : |
Mr. Babubhai Parmar |
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Designation : |
Additional Director |
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Address : |
52/A, Shreenagar Society, Behind Dinesh Mill, |
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Date of Birth/Age : |
21.02.1945 |
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Date of Appointment : |
17.03.2006 |
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Date of Ceasing: |
12.05.2008 |
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Name : |
Mr. Vijay A Barad |
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Designation : |
Chairman and Managing Director |
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Address : |
Jankalyan Society, |
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Date of Birth/Age : |
03.11.1951 |
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Date of Appointment : |
11.11.1999 |
KEY EXECUTIVES
|
Name : |
Mr. Mayank Vyas |
|
Designation : |
Hr Manager |
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Mobile No. : |
91-9328442536 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2008
|
Names of Shareholders |
|
No. of Shares |
|
Vijaysingh A Barad |
|
2672180 |
|
Rameshbhai A Barad |
|
3284620 |
|
Pareshbhai A Barad |
|
2613320 |
|
Sanjaybhai A Barad |
|
2444920 |
|
Amit V Barad |
|
367840 |
|
Rupalba Harishsingh Barad |
|
3036620 |
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Vijaysingh A Barad HUF |
|
121300 |
|
Maduben V Barad |
|
242700 |
|
Peetiben V Barad |
|
32300 |
|
Rameshbhai A Barad |
|
50200 |
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Induben R Barad |
|
95500 |
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Nidhiben R Barad |
|
6000 |
|
Harishbhai R Barad |
|
399700 |
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Pareshbhai A Barad |
|
195000 |
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Shitalben P Barad |
|
628000 |
|
Sanjaybhai A Barad |
|
384000 |
|
Rupaliben sanjaysingh Barad |
|
607400 |
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Total |
|
17181600 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2008
|
Category |
|
Percentage |
|
Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Construction of Roads and Dams |
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Terms : |
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Purchasing : |
Credit ( 120 Days) |
GENERAL INFORMATION
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No. of Employees : |
+ 100 |
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Bankers : |
·
Axis Bank Limited, Trishul, ·
Oriental
Bank of Commerce, Mangal Bhavan, ·
Centurion Bank Limited, 216, 2nd
Floor, Sakar-II, Ellisbridge, Ahmedabad, ·
Karur Vysya Bank Limited, Motilal Centre, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
A D Vyas and Company Chartered Accountant |
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Address : |
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Name : |
Mistry and Associates Chartered Accountant |
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Address : |
C/O, Gunvant S Panchal, Opposite C.K. Seth House, |
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Joint Venture : |
·
KCL Bel Tarmat JV ·
Dholu KCL JPF JV ·
BEL KCL JV ·
KCL JCCG JV ·
KCL SCL JV ·
KCL IMFAB JV ·
KCL GAUATRI JV |
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Associates/Subsidiaries : |
Ketan Mines and Minerals Limited U13209GJ2006PLC048424 |
CAPITAL STRUCTURE
As on 30.09.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35000000 |
Equity Shares |
Rs. 10/- each |
Rs. 350.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17181600 |
Equity Shares (17181600 Equity Shares of Rs. 10/- each
fully paid, previous year 171871600 Equity Shares of Rs. 10/- each fully
padi) |
Rs. 10/-
each |
Rs. 171.816
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
171.816 |
171.816 |
171.816 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
500.936 |
388.482 |
299.230 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
672.752 |
560.298 |
471.046 |
|
|
LOAN FUNDS |
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|
|
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1] Secured Loans |
491.283 |
407.934 |
310.160 |
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2] Unsecured Loans |
314.935 |
450.710 |
390.043 |
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TOTAL BORROWING |
806.218 |
858.644 |
700.203 |
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DEFERRED TAX LIABILITIES |
23.877 |
30.020 |
36.459 |
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|
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|
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TOTAL |
1502.847 |
1448.962 |
1207.708 |
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APPLICATION OF FUNDS |
|
|
|
|
|
|
494.852 |
454.424 |
466.731 |
|
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FIXED ASSETS [Net Block] |
0.000 |
0.000 |
0.000 |
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Capital work-in-progress |
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|
|
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INVESTMENT |
1.648 |
2.248 |
1.947 |
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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 |
303.464
|
288.715 |
171.826 |
|
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Sundry Debtors |
391.660
|
343.471 |
316.204 |
|
|
Cash & Bank Balances |
11.292
|
14.828 |
24.228 |
|
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Other Current Assets |
385.497
|
396.613 |
301.185 |
|
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Loans & Advances |
481.143
|
383.150 |
240.255 |
|
Total
Current Assets |
1573.056
|
1426.777 |
1053.698 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
516.689
|
419.749 |
266.848 |
|
|
Provisions |
50.020
|
14.738 |
47.820 |
|
Total
Current Liabilities |
566.709
|
434.487 |
314.668 |
|
|
Net Current Assets |
1006.347
|
992.290 |
739.030 |
|
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|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
1502.847 |
1448.961 |
1207.708 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Bill Income |
1680.563 |
1451.019 |
1307.570 |
|
|
Other Income |
19.522 |
15.713 |
21.864 |
|
|
Total Income |
1700.085 |
1466.732 |
1329.434 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
141.786 |
115.859 |
136.122 |
|
|
Provision for Taxation |
9.229 |
7.016 |
25.846 |
|
|
Profit/(Loss) After Tax |
132.557 |
108.843 |
110.276 |
|
|
|
|
|
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|
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Expenditures : |
|
|
|
|
|
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Raw Material Consumed |
575.328 |
350.907 |
239.718 |
|
|
Consumption of stores and spares parts |
747.105 |
724.870 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
[61.360] |
[12.588] |
[110.028] |
|
|
Salaries, Wages, Bonus, etc. |
58.706 |
45.765 |
32.403 |
|
|
Managerial Remuneration |
10.200 |
12.300 |
5.100 |
|
|
Payment to Auditors |
0.400 |
0.674 |
0.827 |
|
|
Interest |
66.698 |
53.993 |
26.920 |
|
|
Insurance Expenses |
5.625 |
6.772 |
7.666 |
|
|
Power & Fuel |
0.000 |
0.000 |
1.425 |
|
|
Depreciation & Amortization |
74.377 |
81.837 |
75.045 |
|
|
Other Expenditure |
81.217 |
86.344 |
914.236 |
|
Total Expenditure |
1558.299 |
1350.873 |
1193.312 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
7.79
|
7.42 |
0.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.44
|
1.09 |
10.41 |
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.86
|
6.16 |
8.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.03 |
0.29 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.04
|
2.31 |
2.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.78
|
3.28 |
3.35 |
LOCAL AGENCY FURTHER INFORMATION
Dividend:
The Directors are pleased to recommend a dividend of Rs. 1/- per Equity
Share on the 17181600 fully paid Equity Shares of Rs. 10/- each for the
financial year ended 31st March, 2008 as compared to Rs. 1/- per
Equity Shares of Rs. 10/- each for the previous year.
Operations:
The turnover of the company at Rs. 1700.085 Millions has shown an
increase of 15.90% as compared to Rs. 1466.732 Millions in the previous year.
The operating profit increased by 12.39% from Rs. 251.689 Millions in the
previous year to Rs. 282.861 Millions.
The total balance value of works on hand as on March 31, 2008 is Rs.
6400.000 Millions including Company’s share in integrated joint venture
projects.
Decisions are awaited form various clients for tenders submitted by the
Company (Directly or in JV) for One projects amounting to about Rs. 5140.000
Millions. Tenders for various packages for 20 projects worth about Rs. 12000.000
Millions are expected to be submitted in the near future. The Company has also
submitted prequalification bids for 4 projects worth over Rs. 6000.000 Millions
, which are currently under evaluation. Pre-qualification bids for 5 projects
worth over Rs. 6000.000 Millions are expected to be submitted in the near
future. The company is confident of securing a sizeable share of these new
projects.
Trade Reference:
Government of
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
80014008 |
|
Corporate
identity number of the company |
U45200GJ1999PLC036877 |
|
Name of the
company |
KETAN CONSTRUCTION LIMITED |
|
Address of the registered
office or of the principal place of
business in |
KCL Near 150 FT, Ring Road, Amin Marg Junction, Rajkot-360001, |
|
Type of charge |
Immovable
Property |
|
Particular of
charge holder |
Oriental Bank of
Commerce, Mangal Bhavan, |
|
Nature of
description of the instrument creating or modifying the charge |
Memorandum of
Extension of Equitable Mortgage |
|
Date of
instrument Creating the charge |
28.09.2006 |
|
Amount secured by
the charge |
Rs. 550.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Bank Guarantee
and Sub Limit of Government Supply bills and letter of credit (Sub Limit of
BG) : As Per bank Norms For OD Against
Government Supply bills ( Sub Limit of BG) : 1% over PLR, Presently at 12.5%
with monthly rests. Penal Interest :-
2% p.a. Terms of
Repayment CC and OD Payable
on demand subject to annual review. Bank guarantee
payable as per bank norms. Margin Bank Guarantee :
FG 15% PG 15% Letter of Credit
: 25% OD Against
Government Supply Bills : Nil Extent and
Operation of the charge The Company
agrees to extend the equitable mortgage of properties for new revised limits
(Alongwith the sublimits) Granted to M/S Ketan Construction Limited. First and pari
passu charge of the bank over the entire net block of ketan construction
limited Other terms and
conditions as per bank norms. |
|
Short particulars
of the property charged |
Extension of
Equitable Mortgage of Workshop of the company with building located at block
no., 271 having approximately Area of 9181 sq.yards at santhal taluka sanda, District
Ahmedabad, for modified bifurcation of unchanged total amount of Rs. 550.000
Millions |
|
Date of latest
modification prior to the present modification |
06.01.2006 |
|
Name of the company |
KETAN CONSTRUCTION LIMITED |
|
Presented By |
Mr. Rameshsinh Barad |
|
1) Date and description of instrument creating the change |
Loan cum hypothecation arrangement dated 25.11.2005 between Ketan
Construction Limited and Centurion Bank Limited vide Agreement no.,
A00328-528 |
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 2.200 Millions |
|
3) Short particular of the property charged. If the property acquired
is subject to charge, date of the acquired of the property should be given |
Charges on Scrapper Vehicle No. GJ-7-AG-2254 Chassis No. 24 w 3402,
Engine No. 6968 |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Hypothecation of Charge with centurian bank Limited (EMI Rs 0.072 Million) |
|
5) Name and Address and description of the person entitled to the
charge. |
Centurion Bank Limited, 216, 2nd Floor, Sakar-II,
Ellisbridge, Ahmedabad, |
|
6) Date and brief description
of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or
the extent of operations of the charge in which modification is made and the
details of the modification. |
Not Applicable |
Fixed Assets:
·
·
Plant and Machinery
·
Office Furniture and
Fixture
·
Office Equipments
·
Vehicles
·
Computers
·
·
Santal Land
·
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 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.49.68 |
|
|
1 |
Rs.74.64 |
|
Euro |
1 |
Rs.62.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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 |
|