MIRA INFORM REPORT
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Report Date : |
22.04.2011 |
IDENTIFICATION DETAILS
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Name : |
GAMMON INDIA LIMITED |
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Registered Office : |
Gammon House,
Veer Savarkar Marg, Prabhadevi, Mumbai – 400 025, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
15.06.1922 |
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Com. Reg. No.: |
11 – 000997 |
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CIN No.: [Company
Identification No.] |
L74999MH1922PLC000997 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG07937G |
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PAN No.: [Permanent
Account No.] |
AAACG3821A |
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Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Construction engineers,
contractors and civil engineers |
RATING & COMMENTS
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MIRA’s Rating : |
A (69) |
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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 78000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established and a reputed company having good track. Directors are reported
to be experienced and respectable businessmen. Financial position of the company
appears to be sound. Trade relations are fair. Business is active. Payments
are reported to be regular and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
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Name : |
Mr. K B Shanbaug |
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Designation : |
Finance Manager |
LOCATIONS
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Registered/Head Office : |
Gammon House,
Veer Savarkar Marg, Prabhadevi, Mumbai – 400 025, |
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Tel. No.: |
91-22-66614000 / 24306761 / 24301084 / 6744 4000 (Extn : 4050) |
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Fax No.: |
91-22-24300529 / 24300221 / 66614025 |
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E-Mail : |
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Website : |
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Corporate Office : |
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Factory : |
v
v
Parbati Hydro Electric
Project, Village and Post Office – Sainj, District Kullu, v
v
Teesta Head Race Tunnel,
Makha Post Singtam, District – v
v
Kaiga Nuclear Power Project,
Unit 3 and 4 Kaiga, District – Uttar Kannada, Karnataka – 581400 v
v
Chennai Water Supply
Augmentation Project, Plot No. 32, Chandran Nagar, CLC Works Road, Chromepet,
Chennai – 600044, Tamilnadu v
v
v
v
New
v
v
Prabatri
H. E. Project – Stage – III, C/o. Bhagat Singh and Sons, VPO Larji, Dist. –
Kullu, Himachal Pradesh v
v
Sewa
Hydroelectic Project Stage – II, Vill: Gatti, Po: Bani, Tehsil: Basoli,
Dist.: Kathua ( v
v
v
v
DMRC
Noida – BC 12 and BC 13, Adjacent to v
v
Bihar
Corrindor – Phase II, |
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Investors Correspondence : |
In time Spectrum Registry Limited, C-13 Pannalal Silk Mills Compound, LBS Road
, Bhandup (west), Mumbai- 400 078, Maharashtra, India |
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Tel No.: |
91-22-25963838 |
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Fax No.: |
91-22-25946969 |
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E-Mail: |
DIRECTORS
As on : 31.03.2010
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Name : |
Mr. Abhijit Rajan |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
46 years |
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Qualification : |
B. Com L.S. E. |
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Experience : |
27 years |
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Date of Appointment : |
17.05.1991 |
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Name : |
Mr. Peter Gammon |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. C C Dayal |
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Designation : |
Director |
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Name : |
Mr. Atul Dayal |
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Designation : |
Director |
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Name : |
Mr. Rajul A Bhansali |
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Designation : |
Executive Director |
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Age: |
51 Years |
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Qualification: |
Graduate (Chartered Accountant) |
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Experience: |
29 Years |
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Date of Appointment: |
30.03.2003 |
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Name : |
Mr. Himanshu Parikh |
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Designation : |
Executive Director |
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Age: |
47 Years |
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Qualification: |
B.com |
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Experience: |
27 Years |
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Date of Appointment: |
02.08.2004 |
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Name : |
Mr. Kunal Shroff |
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Designation : |
Additional Director |
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Name : |
Dr. Naushad Forbes |
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Designation : |
Director |
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Name : |
Mr. Chandrahas C. Dayal |
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Designation : |
Director |
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Name : |
Mr. Jagdish C. Sheth |
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Designation : |
Additional Director |
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Name : |
Mrs. Urvashi Saxena |
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Designation : |
Additional Director |
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Name: |
Mr. Ram Mohan Nilkanth |
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Designation : |
Sr. Vice President Finance |
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Age: |
50 Years |
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Qualification: |
B.com (LLB) |
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Experience: |
25 Years |
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Date of Appointment: |
21.04.2006 |
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Name: |
Mr. Naval Cohudhary |
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Designation : |
Additional Director
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Name: |
Mr. Parvez Umrigar |
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Designation : |
Additional Director
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Name: |
Mr. Atul Kumar shukla
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Designation : |
Additional Director
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KEY EXECUTIVES
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Name : |
Ms. Gita Bade |
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Designation : |
Company Secretary and compliance |
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Tel No.: |
91-22-6661 4050 |
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E-Mail: |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 07.01.2011
|
Particulars |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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1027885 |
0.75 |
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40072555 |
29.36 |
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3086435 |
2.26 |
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(B) Public Shareholding |
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|
14066393 |
10.31 |
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|
2683478 |
1.97 |
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30978654 |
22.70 |
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Insurance Companies |
5007478 |
3.67 |
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|
20194841 |
14.80 |
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Individual shareholders holding nominal share
capital up to Rs. 0.100 million |
5851836 |
4.29 |
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Individual shareholders holding nominal share capital
in excess of Rs. 0.100 million |
1738032 |
1.27 |
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Any Others (Specify) |
11757395 |
8.62 |
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Foreign Nationals |
168570 |
0.12 |
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Non Resident Indians |
221483 |
0.16 |
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Overseas Corporate Bodies |
4684720 |
5.36 |
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Clearing Members |
909104 |
1.04 |
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Trusts |
3377 |
- |
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Directors & their Relatives & Friends |
600 |
- |
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Total |
87424570 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Construction
engineers, contractors and civil engineers |
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Products : |
v
Bridges v
Tunnels v
Dams |
Production Status : (As on 31.03.2010)
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Particulars |
Units |
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Conductors |
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Licensed Capacity |
-- |
N.A. |
N.A. |
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Installed Capacity |
MT |
110000 p.a. |
36000 p.a. |
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Actual Production including job work |
MT |
83512 p.a. |
3860666 p.a. |
GENERAL INFORMATION
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No. of Employees : |
6000 (Approximately) |
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Bankers : |
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Facilities : |
Secured Loans
Unsecured Loans
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Natvarlal Vepari and Company Chartered
Accountants |
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Associates: |
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Subsidiaries / Fellow Subsidiaries : |
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Joint Ventures: |
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Entities where control exists : |
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CAPITAL STRUCTURE
As on :
31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
355000000 |
Equity Shares |
Rs. 2/- Each |
Rs. 710.000 millions |
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3000000 |
6% Optionally Convertible Preference Shares |
Rs. 350 /- each |
Rs. 1050.000 millions |
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
129019238 |
Equity Shares |
Rs. 2/- Each |
Rs. 258.000 Millions |
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Subscribed and Paid-Up Capital:
|
No. of Shares |
Type |
Value |
Amount |
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|
127438698 |
Equity Shares |
Rs. 2/- Each |
Rs. 254.900 Millions |
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Add : |
Share Forfeiture Account |
|
Rs. 3.400 millions |
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(Money received in respect of 170948 Rights shares of Rs. 10/- each
forfeited ) |
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Grand Total |
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Rs. 176.889 millions |
Note:
Of the above 264,000 Shares are issued for
consideration other than Cash 5,806,700 Shares are issued as fully paid Bonus
Shares by Capitalization of
7.000 millions from Reserves and Rs. 4.500 millions from Securities Premium Account
20,106,106 Shares are issued as consideration on merger of ATSL with the
Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
258.300 |
1267.100 |
176.900 |
|
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2] Share Application Money |
203.500 |
18.100 |
0.000 |
|
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3] Reserves & Surplus |
18987.200 |
14521.200 |
12109.700 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
19449.000 |
15806.400 |
12286.600 |
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LOAN FUNDS |
|
|
|
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1] Secured Loans |
4885.500 |
3252.500 |
2439.900 |
|
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2] Unsecured Loans |
8060.100 |
6470.200 |
1330.700 |
|
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TOTAL BORROWING |
12945.600 |
9722.700 |
3770.600 |
|
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DEFERRED TAX LIABILITIES |
717.300 |
543.600 |
0.000 |
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|
|
|
|
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TOTAL |
33111.900 |
26072.700 |
16057.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
10843.500 |
9480.300 |
7732.600 |
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Capital work-in-progress |
846.400 |
353.800 |
181.900 |
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INVESTMENT |
1978.400 |
2206.100 |
1607.800 |
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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 |
13091.500
|
10111.000 |
7082.600
|
|
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Sundry Debtors |
17636.800
|
13437.000 |
5171.500
|
|
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Cash & Bank Balances |
724.800
|
513.600 |
380.900
|
|
|
Other Current Assets |
434.200
|
275.100 |
0.000
|
|
|
Loans & Advances |
10655.500
|
8700.900 |
5159.400
|
|
Total
Current Assets |
42542.800
|
33037.600 |
17794.400
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
22797.400
|
18743.800
|
9501.400
|
|
|
Provisions |
301.800
|
261.300
|
1758.100
|
|
Total
Current Liabilities |
23099.200
|
19005.100 |
11259.500
|
|
|
Net Current Assets |
19443.600
|
14032.500 |
6534.900
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
33111.900 |
26072.700 |
16057.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
|
|
|
|
|
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Income |
44681.100 |
36359.600 |
23408.400 |
|
|
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Other Income |
580.900 |
634.400 |
86.700 |
|
|
|
TOTAL (A) |
45262.000 |
36994.000 |
23495.100 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Expenditure on Contracts |
39602.800 |
32455.900 |
20533.900 |
|
|
|
Establishment Expenses |
1291.100 |
718.200 |
728.800 |
|
|
|
Depreciation withdrawn from Revaluation Reserves |
(31.300) |
(31.300) |
0.000 |
|
|
|
Share in Loss of Joint Ventures |
149.600 |
40.900 |
112.800 |
|
|
|
TOTAL (B) |
41012.200 |
33183.700 |
21375.500 |
|
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4249.800 |
3810.300 |
2119.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1396.600 |
1052.600 |
264.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2853.200 |
2757.700 |
1855.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
740.600 |
670.800 |
462.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
2112.600 |
2086.900 |
1393.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
1447.900 |
696.900 |
510.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
664.700 |
1390.000 |
883.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2314.300 |
1599.200 |
1115.800 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
2733.600 |
2314.300 |
1599.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3010.300 |
1806.200 |
126.700 |
|
|
TOTAL EARNINGS |
3010.300 |
1806.200 |
126.700 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
113.500 |
40.300 |
39.300 |
|
|
|
Stores & Spares |
96.200 |
49.300 |
53.200 |
|
|
|
Capital Goods |
570.000 |
422.200 |
307.900 |
|
|
TOTAL IMPORTS |
779.700 |
511.800 |
400.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.26 |
12.35 |
-- |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
13089.900 |
11806.600 |
13736.900 |
|
Total Expenditure |
12032.500 |
10802.700 |
12798.400 |
|
PBIDT (Excl
OI) |
1057.400 |
1003.900 |
938.500 |
|
Other Income |
4.600 |
25.300 |
1.500 |
|
Operating
Profit |
1062.000 |
1029.200 |
940.000 |
|
Interest |
368.600 |
449.700 |
508.800 |
|
Exceptional
Items |
693.400 |
579.500 |
431.400 |
|
PBDT |
202.100 |
223.500 |
243.800 |
|
Depreciation |
491.300 |
356.000 |
187.600 |
|
Profit
Before Tax |
189.300 |
115.900 |
86.000 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
302.000 |
240.100 |
101.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
302.000 |
240.100 |
101.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.46 |
3.75 |
3.60
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.72 |
5.73 |
5.91
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.95 |
4.90 |
7.18
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.13 |
0.11
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.85 |
1.81 |
0.92
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.84 |
1.73 |
1.58
|
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated as J C Gammon (
The company, in association with Hanon Sabelco (UK),set up a joint venture to
manufacture cooling tower infill products with Hanon, subscribed 39.5% of the
capital while the company and others hold 49.5% and 11% respectively in the
joint venture.
In Sep.'91, Abijit Rajan took over as the managing director of Subject from
Subbha Rao. Subject has tied up with US-based General Electric and
In October 1995, M R Chhabria sold his entire stake in the company, thus ending
the seven-year-old takeover saga. Chhabria's 30% stake was taken up by Peter
Gammon (12%) and Abijit Rajan (18%).
During 1998-99, the company has secured projects for construction of flyovers
in Mumbai,
In 2000-01, Subject has put it's house
in order by it's policy of increasing it's stake in it's subsidiary thus making
it as a wholly owned subsidiary and forming 100% subsidiary for a special
purpose job. As per this policy the company has increased it's holding in it's
subsidiaries Gammon Nirman Limited, Gammon Turnkeys Limited , Cochin Bridge
Infrastructure Company Limited to 100%,
thus making these three companies become wholly owned subsidiary of Subject .
Due to this Subject has also become the holding company for the subsidiary of
GNL M/s Nouveaw Exports Private Limited. Subject has also formed two new 100%
subsidiary(Public Limited ) companies viz. M/s Gammon Infrastructure Projects
and Investment Limited , for carrying on the business of executing and
financing infra projects involving private participation either directly or
indirectly through promotion of subsidiary/ group companies for each specific
project and M/s Vizag Seaport Limited
for execution of the job of construction, equipping, operation,
management of multipurpose berths at Vizag Port for handling bulk/general
cargoes or containers or liquid bulk cargos on BOT basis.
In September 2000, Subject got the certification of ISO 9001-1994 and thus
became the first multifunctional Civil Engineering company to get certified for
ISO 9001 for its entire spectrum of EPC activities. A rights issue of 6320572
Equity shares of Rs.10/- each at a premium of Rs.20/- per share in the ratio of
1:1 to the extent of Rs.189.617 millions.
The company has invested Rs.258.30 millions for Rajahmundry-Dharmavaram Road
Project on BOT basis. The
Gammon Nirman Limited and Gammon Turnkeys Limited have ceased to be
subsidiaries of the company with effect from April 2004.
The company along with its subsidiary Gammon Infrastructure Projects Limited
has acquired certain holding in Punj Lloyd Limited. Consequently Andhra
Expressway Limited and Rajahmundry Expressway Limited have become subsidiaries
of the company with effect from 07.02.2005.
Vizag Seaport Private Limited has ceased to be the subsidiary of Subject with
effect from March 2005.
AS PER WEBSITE
Profile
Subject the only Indian Construction Company to have been
accredited with ISO 9001 certification for all fields of Civil Engineering
Works including design, stands out as gateway for Technological and Engineering
excellence in Civil Engineering fields. The companies dedicated and experienced
team of planners, designers and construction engineers are ever ready to
contribute their expertise together and turn vision into reality. This has led
them to the position of one of the leading engineering and construction
companies in
Striving for excellence and perfection, the company has many firsts to its
credit. They introduced prestressed concrete in
They have to the credit the longest river bridge in the world across the mighty
Ganges at
"Necessity is usually the Mother of Invention." They believe that today's solution will not be adequate tomorrow. This quest has led them to pioneer various civil engineering techniques and many more. Subject today can be rightly referred to as "Builders to the Nation.
Subject is not only the largest civil engineering
construction company in
As builders to the nation, Subject has made concrete contributions by designing and constructing bridges, ports, harbours, thermal and nuclear power stations, dams, high-rise structures, chemical and fertilizer complexes environmental structures, cross country water, oil and gas pipelines. Subject has accomplished this by fusing tremendous engineering knowledge with innovative skills, harnessing men and materials to build structures.
Structures that stand out as living testimonies to the victory of man over nature. Structures conceived and built by minds in constant search of new methods, ideas, applications and solutions. Because Subject believes that today's solutions will not be adequate tomorrow.
This insatiable quest has led Subject to pioneer Reinforced and Prestressed Concrete, Long span bridges, Under water concreting using the Colcrete process, Thin shell structures, Non-Shrinking concrete, Aluminium trusses for launching precast, prestressed beams and many more.
These resounding achievements have won Subject the status of R and D Institution - an unequalled honour for an unmatched Performance.
The planners, designers and construction specialists at Subject have proved their competence and innovative skills here and abroad. And driving them to seek, to build and not to yield, is a team of professionals at the Head Office led by the Chairman and Managing Director, Mr. Abhijit Rajan.
Financial Performance :
The turnover of the company on a standalone
basis stood at ` 4,534
Crores for the year ended 31st March, 2010. The annualised percentage
increase in turnover over previous year amounted to 23.14%. The order book
position of your company as on 31st
March, 2010 was approx Rs. 145000.000
millions. On a consolidated basis the turnover of the Gammon group stood at Rs.
71140.000 millions for the year ended 31st
March, 2010. The annualized percentage
increase in turnover over previous year amounted to 36.49%.
FINANCE:
During the year the Company did not raise any
funds from the capital markets either by way of issue of equity/ADRs/GDRs.
However to meet its working capital requirements and for future expansion plans
and CAPEX requirements, the Company has raised money through the allotment of
1,28,09,400 Equity Shares of Rs.2/- each at a price of Rs.237.45/- per Equity
share to Qualified institutional Buyers.
The Company has also obtained financial
assistance from its consortium bankers to meet its short term working capital
requirements as well as long term debt by way of issue of Non-Convertible
Debentures on private placement basis aggregating to Rs.500.000 millions. As on
date, total amount outstanding towards issue of Non-Convertible Debentures on
private placement basis to banks and financial institutions stood at
Rs.4000.000 millions. CARE has assigned ‘AA’ rating for the same. The proceeds
of debentures were utilized for the purposes for which they were raised.
The following credit ratings from CARE
continue:
(i) ‘PR1+’ for short-term commercial paper of
Rs.6000.000 millions
(ii) ‘AA’ for Non-Convertible Debentures of
Rs.4000.000 millions
(iii) ‘AA’ for Long Term Bank Facilities and
‘PR1+’ for Short Term Bank Facilities aggregating to Rs.71000.000 millions.
SUBSIDIARY COMPANIES:
At the commencement of the year the Company
had 39 (Thirty Nine) subsidiaries. It has further incorporated/ acquired the
following subsidiaries during the year:
(i) Patna Highway Projects Limited
(ii) Gammon Seaport Infrastructure Limited
(iii) Gammon Renewable Energy Infrastructure
Limited
(iv) Gammon Road Infrastructure Limited
(v) Vizag Seaport Private Limited
Bedi Seaport Limited, which was a step down
subsidiary as on 31.03.2009, has ceased to be a subsidiary of Gammon
Infrastructure Projects Limited (GIPL), your subsidiary. Therefore vide Section
4 (1) (c) of the Companies Act, 1956, it has ceased to be the step down
subsidiary.
Pursuant to the approval granted by the
Government of India vide its letter No. 47/601/2010-CL-III dated 23rd June,
2010 the Company has been granted exemption under Section 212(8) of the
Companies Act, 1956 from attaching the Balance Sheet and Profit and Loss
Account and other documents of its Subsidiaries and hence the same have not
been attached to the company’s accounts for the year ended 31st March, 2010.
Financial information of the subsidiary companies as required by the said order
is disclosed in the Annual Report.
Statement pursuant to Section 212 (3) of the
Companies Act, 1956 relating to subsidiary companies is attached. Information
such as capital, reserves, assets etc. about each subsidiary as on 31st March,
2010 has been separately disclosed.
The Annual Accounts of subsidiary companies
and the detailed related information are available for inspection by the
shareholders at the registered office of the Company and at the offices of the
respective subsidiary company.
MANAGEMENT DISCUSSION AND ANALYSIS
ABOUT US
Throughout its long history Gammon has
strived to achieve its motto of being ‘Builders to the Nation’ with an array
of landmark structures to its credit,
including bridges, ports, harbours, thermal and nuclear power stations, dams,
high-rise structures, industrial structures, chemical and fertilizer complexes
environmental structures, cross country water, oil and gas pipelines. Gammon
has pioneered Reinforced and Prestressed Concrete, Long span bridges, Under
Water concreting using the Colcrete process, thin shell structures,
Non-Shrinking concrete, Aluminium trusses for launching precast, prestressed
beams and many more. Over the years the planners, designers and construction
specialists at Gammon have proved their competence and innovative skills. As
part of its diversification strategy, Gammon made a foray into the power
sector-equipment business through merger and acquisition of power transmission
company and overseas companies engaged in the power sector including
manufacturing power equipments.
The Company’s operations are divided
into engineering, procurement and construction (“EPC”) and construction
business, infrastructure development business and international business.
The EPC and construction business
comprises the following areas:
• Transport engineering, viz. the design
and construction of roads, bridges, metros, flyovers, ports and airports;
• Power transmission and distribution,
viz. design, engineering, erection, testing and commissioning of transmission
and distribution lines, substation and overhead lines, project electrification,
rural electrification and system improvement projects;
• Energy, viz. engineering and
construction of nuclear power, thermal power, hydro electric power and
nonconventional power plants;
• Environment and pipelines, viz.
construction and design of water treatment plants, cross-country oil and gas
pipelines and water supply projects;
• Hydroelectric power structures, viz.
construction of structures for hydroelectric power plants, such as dams,
powerhouses, surge chambers, intake structures, and head race tunnels;
• Hydraulic and irrigation, viz.
engineering, design and construction works for dams, tunnels, irrigation pipes
and hydraulic structures; and
• Industrial structures and buildings,
viz. construction of multi-storey buildings, residential, commercial and
hospitality and other industrial structures.
The Company is also involved in the
development of Build-Operate-Transfer (“BOT”) projects in infrastructure and
other infrastructure development
projects through its subsidiary Gammon Infrastructure Projects Limited
(“GIPL”), which undertakes projects on a public private partnership (“PPP”)
basis.
Through its international subsidiaries
the Company focuses on power equipment manufacturing and oil and gas
exploration around the world.
ECONOMIC OVERVIEW, INDUSTRY STRUCTURE AND DEVELOPMENT:
The fiscal year 2009-10 began as a difficult
one. There was a significant slowdown in the growth rate in the second half of
2008-09, following the financial crisis that began in the industrialized
nations in 2007 and spread to the real economy across the world. The continued
recession in the developed world, for the better part of 2009-10, meant a
sluggish export recovery and a slowdown in financial flows into the economy.
Despite the global slowdown, the Indian economy expanded by 7.4% during 2009-10
as compared to the gross domestic product (GDP) of 6.7% in 2008-09. Core
industries and infrastructure services, led by the robust growth momentum of
telecom services and spread across power, coal and other infrastructure like
ports, civil aviation and roads, have also shown signs of recovery in 2009-10.
The core infrastructure industry grew by 5.5% in 2009-10. The stimulus measures
announced by the national authorities worldwide to combat the economic slowdown
contained infrastructure buildup plans.
The Central and State Governments of India are
focusing on establishing an appropriate policy framework for the infrastructure
sector which provides the private sector with incentives to make large-scale
investments, at the same time preserving adequate checks and balances through
transparency, competition and regulation. There has been a shift towards
financing of infrastructure development to the private sector, primarily
through Public Private Partnerships (PPPs), which are based on a partnership
between the public and the private sectors for the purpose of delivering a
project or service traditionally provided by the public sector. PPPs are
designed to mobilize financial resources and realize benefits from private sector
efficiencies to meet the growing demand for infrastructure services. The
initiatives undertaken in the Union Budget for fiscal 2010 as regards
infrastructure sector is a positive step in that direction. In line with the
rest of the world, the Union Budget for 2009-10 substantially stepped up
allocation for many infrastructure sectors over the Budget estimates for the
previous year, especially for the National Highways Development Program (NHDP),
Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Accelerated Power
Development and Reform Program (APDRP). Recently in order to give a push to
economic activity, the government constituted the Cabinet Committee on
Infrastructure (CCI) to fast-track the implementation of the infrastructure
sector projects and monitor their performance. The Government has undertaken a
series of legislative, administrative and executive initiatives to minimize
infrastructure deficit, ameliorate bottlenecks in completion of projects and
nurture core industrial and infrastructure services.
SPECTRUM OF ACTIVITY AND REVIEW OF PERFORMANCE:
In the civil engineering and construction
industry, the order book is considered as a potential future performance
indicator since it represents a portion of anticipated revenues. The Company
aims to focus not only on order book additions, but also on capturing a quality
order book with potentially high margins. The Company’s order book position as
on 31/3/2010 stood at approx. Rs.145000.000 millions.
Transportation Engineering:
The Company is engaged in the design and
construction of roads, bridges, metros, flyovers, ports and airports.
Roads:
(i) Contract worth Rs. 7500.000 millions
for improvement of 63 Kms long Patna-Muzzafarpur bypass Project viz
(ii) Improvement, Operation and
Maintenance, Rehabilitation and Strengthening of Existing 2-Lane road and
Widening it to 4-Lane divided highway of Vadape to Gonde section of NH-3 in the
state of
NHAI has a target to improve about 11854
Kms. road to international standard and the Company endeavors to secure a
sizeable segment of the above. The Company is also bidding for additional
business from non-NHAI players in
Bridges, Metro Viaducts and Flyovers:
In spite of its prominent role in Indian
economy, urban
Bongaigaon TT Foundation valued at
Rs.630.000 millions for Construction of Pile and Well Foundation Package for River Crossing Location for 440
KV D/C Byrnihat-Bongaigaon Section of Palatana-Bongaigaon Transmission Line
Associated with 726.6 MW Gas Based Power Plant at Palatana, Tripura.
Some of the projects under execution are:
a. Bogibheel Bridge valued at
Rs.3630.000 millions across River Brahmaputra Near Dibrugarh.
b. Elevated Road Project at Amritsar
valued at Rs.2160.000 millions for Design and Construction of 2-Lane Elevated
Road from G.T. Road to Golden Temple and 4-Lane Elevated Road on G.T. Road from
Maqbulpura Chowk to Bhandari Pul.
c. Kosi Bridge valued at approx
Rs.3680.000 millions for design, construction, finance, operation and
maintenance of four lane Bridge across river Kosi including its approaches on
NH-57 on Annuity Basis.
d. Godavari Bridge at Rajahmundry valued
at Rs.7000.000 millions Design, Construction, Finance, Operation and
Maintenance of major Bridge across river Godavari on Rajahmundry side.
e. Contract No. BC 25, 27, 28, 29 and
30R of Delhi Metro Rail Corporation valued at Rs.3150.000 millions.
f. Contract from Kolkata Metro Rail
Corporation (valued at Rs.2120.000 millions) for Design and construction of
4.725 Km viaduct and portals for junction arrangement for future link to
airport (elevated section) of East West Corridor of Kolkata Metro Excluding
viaduct at stations namely salt lake stadium, Bengal Chemical, City centre,
Central park, Karunamoyee and Salt lake sector-V each of length 140 m, on
Subhash Sarobar to Salt lake Sector-V.
g. Wazirabad Bridge project at Delhi
valued at Rs.3600.000 millions for Construction of major bridge and its
approaches cross River Yamuna downstream of existing bridge at Wazirabad-Delhi.
Hydro Electric Projects:
Under the new Hydro Policy the
dispensation for project development allowed for PSU’s would also be available
to the Private Sector for a period of Five years. However due to lack of
environmental clearances no major Hydro Projects have been taken up by either
the PSU’s or the Private Sector developers for bidding. As a result, during the
year under review your company could not secure any new projects. During this
period the Company completed Sewa Hydroelectric project and substantial portion
of Koldam Hydroelectric project. During this period the Company completed the
challenging task of Sutlej River Crossing at
Some of the Hydro Power Projects under
execution are:
Parbati Stage II:
Parbati Stage II is valued at Rs. 7740.000
millions. The work is in advance stage of construction and approximately 90% of
the work has been completed. A unique feature of this project is the
Construction of Inclined Pressure Shaft of diameter 4.8 m bored by Double
Shield Tunnel Boring Machine (TBM) with precast segmental lining. This remains
a world record created by your company.
Parbati Stage III:
The work at Parbati Stage III for
installed capacity of 540 mw is progressing well. The major components of this
project are a Head Race tunnel having 7.25 m finished diameter and length of 2
km having underground powerhouse, underground transformer carven, tail race
tunnel of 8.1 m diameter and 2.7 km length, two vertical pressure shafts of 300
m depth each having finished diameter of 4.5 m and a surge shaft of 134 deep and
diameter of 13 m. The boring for this was to be done by raised borer. Special
equipment was brought from
This project is being executed for
Sutluj Jal Vidyut Nigam Limited by a Joint Venture formed by Patel
Engineering Limited and Gammon India Limited. The project is funded by the
World Bank and has river
diversion 224 m long and 10 m diameter
horse shoe shaped diversion tunnel, a surge tunnel 400 m long
and 1 number Bulkhead Gate.
Kol Dam:
The Company has virtually completed the
work at this First Hydro Electric Project of NTPC Limited, comprising surface
powerhouse, penstock tunnels, fixing of steel liners and other upper tunnel works.
The value of the work executed is Rs.
2000.000 millions.
Punatsangchhu HEPP:
Punatsangchhu Hydro Power Project
authority has awarded the Company the work of Construction of Head Race Tunnel
of dia 10 m and length approximately 12 km at Punatsangchhu in
Nuclear Power Plants:
Government of
Jetapur near Ratnagiri for complete
civil works, BOP and CW Systems. Kodamkulum Nuclear Projects in Tamil Nadu for
complete civil works, BOP and CW Systems. Unlike other Infrastructure Projects,
Nuclear Power Projects have a lower gestation period.
Chimneys and Cooling Towers:
Cooling Tower Industry is a technology
sensitive-highly specialized industry. Cooling Towers form an integral part of
Power Plants, Petroleum Refineries and other process Industries – wherever heat
needs to be dissipated. Major Investments are envisaged in the Infrastructure
sector which also constitutes Power, Petroleum amongst others. The Power sector
is expected to grow continuously @25% year on year for next few years. The 12th Five
year plan (2012-2017) envisages a capacity addition to the tune of
approximately 0.138 millions MW. A large amount of investment is committed in
the Power, Petrochemical sector as well as in the process Industries. Power
sector constitutes about 60% of the business of cooling tower; Petrochemical
sector constitutes 30% and balance from HVAC and other process industries.
Hence the outlook of the Cooling tower Industry seems to be very good. The
Company through its subsidiary Gactel Turnkey Projects Limited (GTPL) has made
its presence in these markets as well and are expecting the business to grow in
next financial years in these markets also. Due to this huge growth in market,
many foreign cooling tower companies are looking to have their presence in
Water and Environment:
The Government of India has accorded
high priority to this sector. Under the Jawaharlal Nehru Urban Renewal Mission
(JNURM) an outlay of Rs.195650.000 millions has been allocated for this sector
alone with a view to provide water supply to the people of this country. The
Company being an active participant in this effort has targeted projects valued
at Rs.13000.000 millions in this sector. This is part of our overall target to
secure jobs worth Rs.2050.000 millions in the FY 2010-11. In
the FY 2009-10 the Company has been able to complete Rs.2095.800
millions of projects.
Cross Country Pipeline for Petroleum
Products:
This Division has been performing as a
single point service provider in this sector and continues to undertake both
item rate and Lump Sum Contracts like previous years. In
the FY 2009-10 this Division has completed jobs worth Rs.770.000
millions. The Division also secured two new jobs in the FY 2009-10 worth Rs.1560.000
millions. With an upswing in the market in
Thermal Power Project:
During the year the Company has further consolidated
its position in this sector. The time
bound implementation of various projects
has helped the company in realizing better output for the resources
deployed. With the steady acquisition of overseas companies having
manufacturing capabilities
in Power Sector, this sector continues
to be one of the most important sectors for the Company’s growth. The
huge gap between demand and availability of power in the Country and the
impetus provided by the Government for Power Projects has
also ensured availability of funds for the implementation of the projects. During
the year the Company has completed jobs worth Rs.40200.000 millions and the
balance projects
worth Rs.44100.000 millions are under completion. the
Company secured the following projects during the year under review:
- Vallur STTP Civil
Works 3x500 MW valued at Rs.6400.000 millions
from National Thermal Power Corporation
- Tiroda
STPP civil works, 3x600 MW & Kawai Chimney valued at Rs.4650.000
millions.
- Tuticorin TPP
Civil works and Chimney 2X660 MW from Coastal Energen valued at
Rs.3970.000 millions
- Krishnapatanam
Power Project 2x800 MW from Tata Power Limited valued at Rs.
2170.000
millions
- Tuticorin TPP
NDCT and Chimney from NLC valued at Rs.1890.000 millions
- Chimneys at Sasan
UMPP, Raghunathpur TPS, Rosa TPS valued at Rs.
910.000
millions
With
the availability of good Project Managers and the considerable goodwill enjoyed
by the Company with most of the clients the outlook for this sector looks
positive.
Multistoried
Buildings:
The
Company has secured the building projects valued at Rs.6620.000 millions in the
year. The Major clients include ISKCON, Runwal Group of Companies, RNA and
Sattva Group. Some of the major projects under execution include :
- The prestigious
ISODYAN Mandir at Mayapur, Kolkata costing Rs.
1380.000
millions
- RNA –
- RNA
– Exotica, a high rise bldg. at Goregaon, Mumbai having cost Rs.1140.000
millions
- Rs. 390.000
millions.
- Runwal Greens,
the high rise 8 towers in the centre of suburb at Mulund, Mumbai for
RUNWAL GROUP
- having cost Rs.
3130.000
millions
Gammon
is increasing its capabilities to undertake turnkey projects in the building
sector on Design-Build basis.
Review
of International Businesses:
In
order to be responsive to the increasing trend to seek one stop services and
for civil contractors to take responsibility for the engineering, supplying,
erecting and commissioning of projects, the Company has adopted a long term
plan of creating a complete power vertical through its subsidiaries which include
EPC, Civil, BTG engineering, manufacturing and power utility projects. To this
end the Company’s international acquisitions and a review of their performance
is listed below;
Sofinter Group:
The Group activities comprise the design
and manufacture of Industrial Boilers, Heat Recovery Steam Generators, Power
utility steam boilers up to supercritical sizes, EPC related to power utilities
and R and D in flameless technology using waste and low grade coal with zero
carbon emissions. The Groups Clients are spread across 35 countries with a
captive market with excess of 1000 units for an installed base of approx.
80,000 Mwt. The global economic downturn post the 3rd quarter
of 2008 continued to have its impact for the better part of 2009. Lending by
the banks in
In line with Gammon’s strategy, of
leveraging on the technological capabilities of Ansaldo Caldaie S.p.A in the supercritical
boiler segment for the Indian market starting with the bulk tender announced by
NTPC, the facilities of Ansaldo Caldaie Boilers India Pvt. Ltd. near Chennai
are being scaled up at a foreseen investment of approx ` 200
Crores. The enhanced facilities are expected to become operational and
integration processes between
Franco Tosi Mecanicca S.p.A:
The activities of the Company relate to
the design and manufacture of steam and hydro turbines from its manufacturing
facilities located in
SAE Power Lines S.R.L:
The activities of the Company relating
to the design fabrication and erection of transmission towers and lines
continue to be stable in spite of the down turn, especially due to the newer
markets in North East and
Oil and Gas:
The execution of the Minimum Works
Program on the Puma Marginal Field in
Transmission and Distribution Business:
The Transmission and Distribution
(T&D) business of the Company operates on Engineering Procurement
Construction (EPC) basis in power transmission and distribution sector. With
its execution capacities, large manufacturing capabilities for Transmission
Tower & Conductor and Customer focus the Company is recognised as a leading
player in
The Company has also been expanding its
footing into overseas countries and executing EPC contracts in
During the year, the Company was
successful in securing transmission line orders for more than 1500 Kms in
various voltage class from domestic and overseas market . The Company has also
during the year forayed into manufacturing of high mast poles with the setting
up of its subsidiary, Transrail Lighting Ltd. (TLL) which will be commissioned
by September 2010. The Company has in-house design, pole manufacturing capacity
of 30,000 MT per annum which are required for Street Lights, Telecom, Stadiums,
power transmission and distribution etc. The T and D business of the Company
mainly comes from Central utilities, State utilities and Industry clients. The
power sector in
Distribution:
APDRP and RGGVY schemes are expected to
accelerate investment in the power distribution sector. The Government has set
aside Rs. 20800.000
millions in the current budget under the APDRP Scheme as compared to Rs. 8000.000
millions for last year for bringing about improvement in the urban power
distribution sector. The RGGVY scheme aims to bring about access to electricity
to all rural households by the year 2012.
International:
The Company sees immense opportunities in
the emerging markets such as Africa and
Public Private Partnership Projects:
The Company undertakes Public Private
Partnership projects through its subsidiary Gammon Infrastructure Projects
Limited. Detailed below is the review of projects in the operations phase and
projects under development;
Operational projects:
Rajahmundry Expressway Limited (REL):
REL is an SPV created for the project
for widening and strengthening of a 53 km stretch between
Andhra Expressway Limited (AEL):
AEL is an SPV created for the project
for widening and strengthening of the 47 km stretch between Dharmavaram and
Tuni in Andhra Pradesh on
Cochin Bridge Infrastructure Company
Limited (CBICL):
CBICL is a subsidiary of the Company
which had developed the New Mattancherry Bridge Project, in
Mumbai Nasik Expressway Limited (MNEL):
MNEL is the SPV created for widening,
strengthening and operating the 99.5 km Vadape–Gonde (Mumbai-Nasik) section of
NH–3 on BOT basis. The project is part of the NHDP Phase III. The concession
period for the project is Twenty (20) years, including a construction period of
three years. The total project cost is estimated to be Rs.7530.000 millions.
Financial closure for the project has been achieved and presently the project
is under its implementation phase with a total capitalization of Rs.7311.800
millions as of 31st March, 2010. Engineering, Procurement and Construction
(EPC) Contract for the project has been awarded to GIL. The project achieved
partial completion for a stretch of 64 kms in May, 2010 and has commenced
Tolling Services.
Vizag Seaport Private Limited (VSPL):
VSPL is the SPV formed to develop,
construct, operate and manage two multi-purpose berths in the northern arm of
the inner harbor at
Punjab Biomass Power Limited (PBPL):
PBPL is the SPV formed to develop upto
nine biomass based power projects, each having power generation potential in
the range of 10 MW to 15 MW, in the State of Punjab, on BOO basis. Rice Straw, which
is available in abundance in
B. Projects under development:
Rajahmundry Godavari Bridge Limited
(RGBL):
RGBL is a subsidiary incorporated for
design, construction, operation and maintenance of a 4.15 km long four-lane
bridge, which will connect Kovvur and
Kosi Bridge Infrastructure Company
Limited (KBICL):
KBICL is a subsidiary of the Company
incorporated for design, construction, development, finance, operation and
maintenance of a 1.8 km long four-lane bridge across river Kosi with 8.2 km of
access roads and bunds for flood protection on NH 57 in the Supaul district of
Bihar, on BOT(Annuity) basis. The concession period is twenty (20) years,
ending in April 2027, of which seventeen (17) years is for operations and three
years is for construction. The total project cost is estimated to be
Rs.4484.200 millions Engineering, Procurement and Construction (EPC) Contract
for the project has been awarded to GIL.
Gorakhpur Infrastructure Company Limited
(GICL):
GICL is a subsidiary of the Company
incorporated for design, construction, finance and maintenance of a 32.27 km
long four-lane bypass to
Patna Highway Projects Limited (PHPL):
PHPL is a step down subsidiary of the
Company incorporated for design, construction, finance and maintenance of a
63.17 km long four-lane dual carriageway on NH-77, which includes new bypass of
16.87 km connecting NH-28 in the State of Bihar on BOT (Annuity) basis. The
concession period is fifteen (15) years, ending in February, 2023, of which
12.5 years is for operations and 2.5 years is for construction. PHPL will
receive an annuity payment of Rs.946.000 millions from NHAI,
semi-annually, in the entire operations period. The total project cost is
estimated to be Rs. 9400.500 millions. Engineering,
Procurement and Construction (EPC) Contract for the project has been awarded to
GIL.
Indira Container Terminal Private Limited
(ICTPL):
Indira Container Terminal Private
Limited (ICTPL or Company), was incorporated in September 2007 to undertake the
implementation, development, operation and maintenance of the Offshore
Container Terminal (OCT) (Project), operation and maintenance of existing
container operation of Mumbai Port Trust (MPT) at its Ballard Pier Station
(BPS), off the coast of Mumbai on Build, Operate and Transfer (BOT) basis. The
total project cost for the first phase is estimated to be ` 1,01,566
Lakhs.The total capitalization of the project is Rs.
1445.516 millions as of March 31, 2010.
Pravara Renewable Energy Limited (PREL):
PREL is a subsidiary incorporated for design,
construction, finance and operation of a 30 MW co-generation power project on
BOOT basis with Padmashri Dr. Vitthalrao Vikhe Patil Sahakari Sakhar Karkhana
Limited (“Karkhana”) in Pravara Nagar,
Sikkim Hydro Power Ventures Limited
(SHPVL):
SHPVL is a wholly owned subsidiary of
the Company, floated to develop 66 MW Rangit II Hydroelectric Power Project in
Youngthang Power Ventures Limited (YPVL):
The project involves the development of
a 261 MW run-of-the-river hydroelectric power project in Himachal Pradesh on a
BOOT basis at an estimated cost to complete of `
250,000 Lakhs. The concession period of
the project is 40 years post commencement of commercial operations.
SEZ Adityapur Limited (SEZAL):
SEZAL is incorporated to implement the
project of development of an SEZ for automobile and auto components at
Adityapur, in the state of Jharkhand in eastern
Haryana Biomass Power Limited (HBPL) :
Haryana Renewable Energy Development
Agency (HAREDA) had issued letters of intent for setting up eight biomass based
power projects (out of which Company intends to develop six) in Haryana to the
Company, in consortium with another private sector developer. The capacity of
each project is likely to be in the range of 10 to 12 MW. These projects will
primarily use rice straw as the feedstock for generation of power.
TADA SEZ PROJECT :
FINANCIAL AND OPERATIONAL PERFORMANCE:
The turnover of the company stood at
Rs.45340.000 millions for the year ended 31st March, 2010. Operating profit
(PBDIT) amounted to Rs.4220.000 millions (Rs.3780.000 millions previous year).
After providing Rs.710.000 millions (Rs.640.000 millions previous year) towards
depreciation and Rs.690.000 millions (Rs.680.000 millions previous year)
towards tax for current and deferred taxation, the net profit amounted to
Rs.1430.000 millions (Rs.1400.000 millions previous year). The annualized
percentage increase in Turnover over previous year amounted to 23.14%. The
order book position of the company as on 31st March, 2010 was approx
Rs.145000.000 millions.
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. 44.30 |
|
|
1 |
Rs. 72.92 |
|
Euro |
1 |
Rs. 64.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
yes |
|
--LITIGATION |
YES/NO |
no |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
no |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
no |
|
--EXPORT ACTIVITIES |
YES/NO |
yes |
|
--AFFILIATION |
YES/NO |
yes |
|
--LISTED |
YES/NO |
yes |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
TOTAL |
|
|
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.