MIRA
INFORM REPORT
|
Report Date : |
29.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
SIMPLEX
INFRASTRUCTURES LIMITED (w.e.f. 23.12.2005) |
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|
Formerly Known As : |
SIMLPEX CONCRETE
PILES ( |
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Registered Office : |
‘Simplex House’,
27, Shakespeare Sarani, Kolkata – 700 017, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
19.12.1924 |
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Com. Reg. No.: |
21-004969 |
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Capital
Investment / Paid-up Capital : |
Rs. 99.331
Millions |
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CIN No.: [Company
Identification No.] |
L45209WB1924PLC004969 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS00978F |
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PAN No.: [Permanent
Account No.] |
AAECS0765R |
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Legal Form : |
A public limited liability company. The company’s shares are listed on
the stock exchange. |
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Line of Business : |
Total solution
provider in construction and infrastructure ambit. |
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No. of Employees
: |
7700 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 43000000 |
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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 fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
‘Simplex House’,
27, Shakespeare Sarani, Kolkata – 700 017, West |
|
Tel. No.: |
91-33-23011600 /
22839953/5967 |
|
Fax No.: |
91-33-2283 5966 /
65 /64 / 22835964/65/66 |
|
E-Mail : |
simplexkolkata@simplexinfrastructures.com banwari.bajoria@simplexinfrastructures.com
simplexcal@simplexindia.com calpersonnel@simplexindia.com calpurchase@simplexindia.com calaccts@simplexindia.com |
|
Website : |
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|
Area : |
10,000
sq. ft. - Owned |
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|
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Administrative Office : |
12/1,
Nellie Sengupta, Sarani, Kolkata, West Bengal, India |
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Branches : |
‘Vaikunth’, 2nd floor, 82-83, Nehru Place, New Delhi – 110 019, India Fax: 91-11-2646 5869 / 91-22-24912735 Email: scpl.del@smj.sril.in delpersonnel@simplexindia.com delpurchase@simplexindia.com delaccts@simplexindia.com Mumbai Office 502-A, Poonam
Chambers, Shiv Sagar Estate A wing, Dr. A.B. Road, Worli, Mumbai – 400 018, Maharashtra, India Tel: 91-22-24913481 / 8397, 2492 9034 / 2756/ 2064 / 24922064 /
24929034 / 24913481 / 8397 / 1849 / 3537 bompersonnel@simplexindia.com bompurchase@simplexindia.com bomaccts@simplexindia.com Chennai Office: Home centre building, HBK Tower, Room no 1, 1st floor, Post Box No 22472, Doha, Qatar. Tel: 974-4435408 / 4421545 / 4328843 2nd Floor,
Building No. 1915, Way No. 2137, Nizwa House, M. Q. , P. O. Box 1797, P. C.
114, Muscat, Sultanate of Oman. Office No. 312, P. O. Box : 124748,Tel: +971 4 3996724, Fax: +971 4 3996785, Email: simplexdubai@simplexinfra.net Simplex Infrastructures Limited C/o Almoyyed Contracting, P O Box – 32571 and 32471, Manama, Kingdom of Bahrain Email: SimplexBahrain@simplexinfra.net 3rd Floor, ' Tel.: 91-265-2354566, 2330639. Fax: 91-265-2342416 E-mail:
simplexbaroda@simplexinfra.net
|
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. B. D. Mundhra |
|
Designation : |
Chairman and
Managing Director bdm@simplexindia.com |
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Name : |
Mr. A. D. Mundhra |
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Designation : |
Director adm@simplexindia.com |
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Name : |
Mr. A. Mukherjee |
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Designation : |
Director amukherjee@simplexindia.com |
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Name : |
Mr. B. Sengupta |
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Designation : |
Director |
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Name : |
Dr. R. Natarajan |
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Designation : |
Director |
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Name : |
Mr. S. Dutta |
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Designation : |
Director |
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Name : |
Mr. Rajiv Mundhra |
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Designation : |
Director |
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Name : |
Mr. N. N.
Bhattacharyya |
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Designation : |
Director |
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Name : |
Mr. Sheokishan
Damani |
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Designation : |
Director |
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Date of Appointment : |
06.10.2005 |
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Name : |
Mr. Kunal Shroff |
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Designation : |
Director |
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Date of Appointment : |
19.05.2006 |
KEY EXECUTIVES
|
Name : |
Mr. B.L. Bajoria |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No.
of Shares |
Percentage Holding
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9645855 |
19.49 |
|
|
17436968 |
35.25 |
|
|
27080823 |
54.74 |
|
|
-- |
-- |
|
Total shareholding of Promoter and Promoter Group (A) |
27080823 |
54.74 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
9084568 |
18.36 |
|
|
1159965 |
2.34 |
|
|
42144 |
0.09 |
|
|
5932272 |
11.99 |
|
|
16218949 |
32.78 |
|
|
|
|
|
|
3202601 |
6.47 |
|
|
|
|
|
|
1668439 |
3.37 |
|
|
815000 |
1.65 |
|
|
486518 |
0.98 |
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|
1945 |
0.00 |
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|
400824 |
0.81 |
|
|
83749 |
0.17 |
|
|
6172558 |
12.48 |
|
Total Public shareholding (B) |
22391507 |
45.26 |
|
Total (A)+(B) |
49,472,330 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
Total (A)+(B)+(C) |
49,472,330 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Total solution provider
in construction and infrastructure ambit. |
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|
|
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Products : |
·
Piling ·
Concrete Works ·
Structural Steel ·
Road Work ·
Miscellaneous Works |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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|
|
|
|
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Electricity |
KW |
-- |
820000 |
51000 |
GENERAL INFORMATION
|
No. of Employees : |
7700 [Approximately] |
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Bankers : |
·
Allahabad Bank ·
Axis Bank Limited ·
Bank of Baroda ·
Canara Bank ·
Development Credit Bank Limited ·
Exim Bank ·
HDFC Bank Limited ·
HSBC Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Indian Bank ·
IndusInd Bank Limited ·
ING Vysya Bank Limited ·
Karur Vysya Bank Limited ·
Oriental Bank of Commerce ·
Punjab National Bank ·
Standard Chartered bank ·
State Bank of India ·
State Bank of Travancore ·
The Federal Bank Limited ·
The Royal Bank of Scotland ·
UCO Bank ·
United Bank of India ·
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Address : |
Plot No. Y – 14, Block - EP Sector - V Salt Lake Electronic, Complex
Bidhan Nagar Kolkata 700 091, West Bengal, India |
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|
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Joint Ventures : |
v Simplex –
Gayatri Consortium v HO-HUP Simplex
Joint Venture v Simplex - Subhash
Joint Venture v Somdatt Builders
- Simplex Joint Venture v Simplex
Almoayyed W.L.L. v Simplex -
Somdatt Builders Joint Venture v Laing - Simplex
Joint Venture v Simplex
Meinhardt Joint Venture v Jaybee Simplex
Consortium v Simplex
Infrastructures (Thailand) Limited |
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Associates : |
v Shree Jagannath
Expressways Private Limited v Raichur Sholapur
Transmission Company Limited |
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Subsidiaries : |
v Simplex
Infrastructures L.L.C. v Simplex
(Middle-East) Limited v Simplex Infrastructures
Libya Joint Venture Company v Simplex Infra
Development Limited |
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|
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|
Raichur Sholapur
Transmission Company Limited : |
v Giriraj
Apartments Private Limited v Mundhra Estates v Safe Builders v RBS Credit and
Financial Development Private Limited v Anupriya
Consultants Private Limited v Baba Basuki
Distributors Private Limited v Asnew Finance
and Investment Private Limited v Parop Finance
and Investment Private Limited v Anjali Trade
Links Private Limited v Universal Earth
Engineering Consultancy Private Limited v Varuna Multifin
Private Limited v East End Trading
and Engineering Company Private Limited v Ajay Merchants
Private Limited v Sandeepan
Exports Private Limited v Simplex
Technologies Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
374900000 |
Equity Shares |
Rs. 2/- each |
Rs. 749.800 Millions |
|
20000 |
15% Cumulative Preference Shares |
Rs. 10/- each |
Rs. 0.200 Million |
|
|
Total |
|
Rs. 750.000 Millions
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
49472330 |
Equity Shares |
Rs. 2/- each |
Rs. 98.945
Millions |
|
|
Equity Shares Forfeited in earlier years |
|
Rs. 0.386
Millions |
|
|
Total |
|
Rs. 99.331 Millions |
Note :
Of the year-end
paid-up shares
a)
69,625 shares of Rs. 2/- each allotted as fully
paid up pursuant to a contract without payments being received in cash.
b)
9,221,605 shares of Rs. 2/- each allotted as fully paid
Bonus Shares by capitalisation of Reserves, Undistributed Profit and Securities
Premium Account.
c)
9,982,650 shares of Rs. 2/- each allotted at par on
conversion of Partly Optionally Convertible Debentures on 1st January,1998 and
on 1st January,1999.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
99.331 |
99.331 |
99.331 |
|
|
2] Share Application Money |
0.000 |
0.000 |
212.530 |
|
|
3] Reserves & Surplus |
10677.540 |
9597.270 |
8710.896 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10776.871 |
9696.601 |
9022.757 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10932.210 |
9943.891 |
7692.650 |
|
|
2] Unsecured Loans |
5674.492 |
3080.046 |
4512.034 |
|
|
TOTAL BORROWING |
16606.702 |
13023.937 |
12204.684 |
|
|
DEFERRED TAX LIABILITIES |
1380.505 |
883.274 |
578.772 |
|
|
|
|
|
|
|
|
TOTAL |
28764.078 |
23603.812 |
21806.213 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11049.096 |
9676.598 |
10014.163 |
|
|
Capital work-in-progress |
274.635 |
186.941 |
138.583 |
|
|
|
|
|
|
|
|
INVESTMENT |
491.938 |
277.082 |
200.732 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7977.887
|
6592.548
|
6760.729 |
|
|
Sundry Debtors |
22833.780
|
17928.086
|
16675.518 |
|
|
Cash & Bank Balances |
794.659
|
872.737
|
1002.093 |
|
|
Other Current Assets |
1408.224
|
1336.695
|
1250.047 |
|
|
Loans & Advances |
3832.930
|
3868.425
|
3311.926 |
|
Total
Current Assets |
36847.480
|
30598.491 |
29000.313 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11559.528
|
10336.511
|
8780.050 |
|
|
Other Current Liabilities |
8210.824
|
6683.411
|
8651.767 |
|
|
Provisions |
128.719
|
115.378
|
115.761 |
|
Total
Current Liabilities |
19899.071
|
17135.300 |
17547.578 |
|
|
Net Current Assets |
16948.409
|
13463.191
|
11452.735 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
28764.078 |
23603.812 |
21806.213 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Profit on Contract Work done |
6381.836 |
6210.529 |
5715.507 |
|
|
|
Company’s Share in Profit / (Loss) of Joint Ventures |
13.174 |
(7.346) |
89.687 |
|
|
|
Other Income |
276.769 |
226.154 |
447.102 |
|
|
|
TOTAL (A) |
6671.779 |
6429.337 |
6252.296 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Amortization of Tools |
696.423 |
643.489 |
527.438 |
|
|
|
Other Administrative Expenses |
1801.078 |
1873.210 |
1849.735 |
|
|
|
TOTAL
(B) |
2497.501 |
2516.699 |
2377.173 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4174.278 |
3912.638 |
2679.660 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1307.744 |
1112.088 |
1037.199 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2866.534 |
2800.550 |
1642.461 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
911.963 |
890.075 |
371.960 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1954.571 |
1910.475 |
1270.501 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
722.209 |
684.502 |
369.712 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1232.362 |
1225.973 |
900.789 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3429.961 |
2469.366 |
1192.069 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.000 |
150.000 |
150.000 |
|
|
|
Transfer to Contingency reserve |
0.000 |
0.000 |
350.000 |
|
|
|
Proposed Dividend |
98.945 |
98.945 |
98.945 |
|
|
|
Tax on Dividend |
16.051 |
16.433 |
16.816 |
|
|
BALANCE CARRIED
TO THE B/S |
4397.327 |
3429.961 |
2469.366 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
On Contract Work
(Gross billing) |
6093.289 |
10773.232 |
13598.060 |
|
|
|
Proceeds from
sale of Fixed Assets, Tools etc. |
15.879 |
133.126 |
271.029 |
|
|
|
Interest
Received |
1.159 |
0.120 |
7.157 |
|
|
|
Sale of Scrap |
5.694 |
13.563 |
12.347 |
|
|
|
Hire Charges |
45.841 |
42.225 |
0.000 |
|
|
|
Dividend |
3.560 |
7.989 |
0.000 |
|
|
|
Miscellaneous
Receipts |
0.867 |
0.924 |
22.305 |
|
|
TOTAL EARNINGS |
6166.289 |
10971.179 |
13910.898 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
888.176 |
169.582 |
2159.653 |
|
|
|
Tools and
Equipments |
26.311 |
12.210 |
165.196 |
|
|
|
Components and
Spare Parts |
149.016 |
282.206 |
615.291 |
|
|
TOTAL IMPORTS |
1063.503 |
463.998 |
2940.140 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.91 |
24.78 |
24.42 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
12608.600 |
13219.900 |
|
Total Expenditure |
11478.900 |
12110.600 |
|
PBIDT (Excl OI) |
1129.700 |
1109.300 |
|
Other Income |
76.800 |
21.600 |
|
Operating Profit |
1206.500 |
1130.900 |
|
Interest |
429.600 |
430.700 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
776.900 |
700.200 |
|
Depreciation |
426.400 |
441.500 |
|
Profit Before Tax |
350.500 |
258.700 |
|
Tax |
110.000 |
80.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
240.500 |
178.700 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
240.500 |
178.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
18.47
|
19.07 |
19.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.63
|
30.76 |
29.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.08
|
4.74 |
4.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.20 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.52
|
3.20 |
3.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.85
|
1.79 |
1.65 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS
The turnover for
the financial year increased to Rs.47497 millions from Rs. 44435 millions in the
previous financial year. The Profit before Tax (PBT) increased to Rs 1955
millions and Profit after Tax (PAT) increased to Rs.1232 millions for the
financial year as against Rs. 1911 millions and Rs.1226 millions in the
previous year. The Company also recorded a higher EBITDA, from Rs.4556 millions
in the previous financial year to Rs.4871 millions in the year. EBTDA also rose
from Rs. 3444 millions in the previous financial year to Rs.3563 millions in
the current year. However, the financial result for the year were subdued which
was largely attributed to a considerable rise in the Interest and Finance
Charges of the Company.
On consolidated
basis, the turnover for the financial year stood enhanced to Rs.48753 millions
from Rs. 45525 millions of the previous financial year. However the Profit
before Tax declined to Rs.2003 millions from Rs 2006 millions in the previous
year and Profit after Tax and Minority Interest also reduced to Rs.1246
millions from Rs.1271 millions in the previous year, mainly due to higher
interest burden.
Despite a
generally sluggish market for construction industry, the order book on
consolidated basis for the financial year surged by 28% to Rs.147070 millions
from Rs.114910 millions last year. The Company continued its presence in the
diverse verticals of the construction sector and is confident of securing a
good quantum of order in the current financial year too, on the back of large
bid pipeline.
During the year,
the Company through joint venture/ associate companies has bagged some of the
landmark contracts, to mention a few, civil construction of one of the world's
tallest residential building “World One (King Tower)” at Mumbai, construction
of 6 Laning of Chandikhole-Jagatpur-Bhubaneshwar Section of NH-5 at
Bhubaneshwar on DBFOT(Design, Built, Finance, Operate and Transfer) basis. The
Company has also secured several contracts in India and overseas, viz.,
construction of Jatrabari- Gulsitan Flyover at Dhaka, Bangladesh and
construction of viaduct between Joka to Mominpur in BBD Bag corridor of Kolkata
Metro, among others. The Company has a pan India presence and internationally,
it has presence in Qatar, Oman, Ethiopia, Saudi Arabia, Sri Lanka and
Bangladesh.
The political turmoil in Middle East resulted in stoppage of
business activities during the year 2010-11 of Simplex Infrastructures Libya
Joint Venture Co. Only after the improvement of the political situation in
Libya, the Company will be in a position to make a detailed review of the
situation and will review the long term business interest in the above
subsidiary.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
The Indian economy
shook off the lingering effects of the recession to return firmly on the 8%
plus growth track in 2010-11. Even though many other large global economies
continued to struggle, the domestic mood remained optimistic as stability
returned with the broad economy recording a steady upturn of most annual
economic indicators. A recovery of farm output ensured annual GDP growth of
8.6%, the highest in three years. Traditional economic concerns such as fiscal
and trade deficits also remained under control with tax collections and exports
showing healthy growth.
However some signs
of a slowdown became evident as the financial year drew to a close. Part of
this was policy driven, as the government and RBI fought to tame inflation,
which remained uncomfortably high through the year at an average of 9.4%. While
part of this was due to the base effect, some elements, particularly the
double-digit food inflation, gave serious cause for concern. Globally, rising
oil and commodity prices added to cost pressures, particularly in the latter
half of the year. Interest rates rose steadily, curbing growth.
Figures released
by the Central Statistical Organization (CSO) also reveal a growing weakness in
industrial production. The Index of Industrial Production (IIP) fell to below
4% with the mining, capital goods and manufacturing sectors slowing down
markedly. FICCI’s regular Business Confidence Surveys and Manufacturing Sector
Surveys showed that rising interest rates were impacting investment projects
with greater effect on units in the SME sector. While these may only be
temporary, it is evident that the battle between inflation and growth will
continue to be waged within the Indian economy in the foreseeable future.
While recent
history has reiterated that the Indian economy is a resilient one, it is not
completely insulated from global winds. The sluggish pace of recovery in USA,
European stagnation and the setbacks suffered by Japan due to the recent
Tsunami, all affect key sectors. Rising crude prices puts pressure on the
balance of payments and domestic subsidies. Global food and metal prices have
direct impact on people and industry, raising wages and slowing growth.
INDUSTRY OVERVIEW
Simplex
Infrastructures is essentially in the business of infrastructure construction
along with industrial and building construction. The infrastructure sector
accounts for over a quarter of India’s industrial output and generates more
than half of the country’s construction activity. The construction sector
itself is one of the largest industrial sectors and the second-largest employer
in India after agriculture, employing 18 million people directly and 14 million
indirectly. The construction industry is therefore closely linked with India’s
economic growth and hence prosperity of the nation.
India is seeing a
boom in the construction sector mainly due to the government initiative in
expansion of the developmental facilities. Economic upsurge has also caused
enhanced generation of demand in the housing sector (residential, commercial
and institutional) as well as in industrial sector in line with the
infrastructure growth. Construction Industry in India is rising at a rate of 7%
to 8% p.a. in real terms.
India’s
policymakers recognize that the infrastructure industry is a key driver of
growth. The Eleventh 5-year Plan (2007-2012) states - “Poor quality of
infrastructure seriously limits India’s growth potential in the medium term and
the Eleventh Plan outlines a comprehensive strategy for development of both
rural and urban infrastructure, defined to include electric power, roads,
railways, ports, airports, telecommunications, irrigation, drinking water,
sanitation, storage and warehousing. The total investment in these areas was
around 5% of GDP in 2006–07 and the Plan aims at increasing this to about 9% of
GDP by the terminal annum 2011–12.”
However while
large allocations have been made for infrastructure building, actual
implementation has been short of targets. Land acquisition, complex legal
framework and weak business environment are among the thorny issues that are
difficult to solve in many parts of the country. In some sectors, technical,
administrative and policy issues have also delayed projects substantially.
Despite such bottlenecks, the infrastructure industry remains in strong focus
with policy and funding support, which are likely to continue.
While the growing
economy assures stable and enduring demand in the construction sector, it is
vulnerable to rising interest rates. Rising steel, cement and transportation
costs also adversely affect the demand for construction. Industry expects a
modest growth in the coming year, while longer term prospects are brighter.
KEY INDUSTRY FACTS
v Construction
industry contributes a large chunk to the world GDP amounting to about 10%.
v This industry has
immense potential in generating employment. It has been found that the
construction industry accounts for around 7% of the total employed work force
around the globe.
v The Construction
Industry is the largest sector in respect of consumption of energy. It consumes
around 2/5th of the total consumed energy through out the world.
v Resource
utilization in case of construction industry amounts to half of the total
resource used all over the world.
BUSINESS OVERVIEW
A history of over
85 years and experience of nearly 2400 completed projects across diverse
verticals and geographies ranks Simplex among India’s top construction
companies. Their proven track record and technical skills has made them one of
the pioneers and a total solution provider in construction and infrastructure
sector. The Company is present in all construction verticals-Ground
Engineering, Industrial Structures, Buildings and Housing (Residential,
Commercial, Institutional), Power (Thermal, Nuclear and Hydro), Marine, Roads,
Railways, Bridges and Urban Infrastructure (Airports, Metro Railways, Stadia,
Capital City Complexes, Sewerage, Water Resource Management and Utilities).
Construction of roads on BOOT basis and EPC of transmission line are some
recent additions in its fold.
While India
accounts for 87% of business, Simplex also has presence in a number of international
markets namely in Qatar, Oman, Saudi Arabia, Bangladesh, Srilanka and Ethiopia
through subsidiaries and own branch offices.
However
expectations were subdued on international front on the ground of external
factors such as political crises in the Arab countries and unrest in Libya.
However they continue to have strong faith that the Company must tap all
feasible international opportunities in order to diversify and rationalize the
risks for ensuring a healthy long term growth. They have therefore recently
expanded to Bangladesh, Ethiopia and Saudi Arabia in order to reverse the
declining trend of the overseas business in the days to come.
With an employee
base of over 8800 (81% Technical, 18% Commercial and 1% Management) and around
175 independent project execution teams equipped with Rs.15362 millions of
owned construction equipment, currently operating in India and abroad, Simplex
has superior execution capabilities for project engineering and management.
Being a well-established and reputed company, it also enjoys a stable business
and outlook. For the last several years they have consistently enjoyed a
steadily growing order book, which presently stands at about Rs.147070
millions. Their diversified order book features nearly 220 contracts, out of
which domestic orders account for 87% while the rest is from overseas. Thermal
power, Industrial structures, Urban infrastructure and High-rise buildings
dominate the order book, which includes several of India’s most prestigious and
challenging projects. Their judicious choice of projects and its timely
execution, cost control and proper project management across various sites,
have been some key factors behind the company’s consistently healthy
performance.
HIGHLIGHTS OF THE YEAR
·
The Company in Joint Venture with Middle East based
Construction giant Arabian Construction Company (ACC) was assigned for civil
construction of one of the world's tallest residential building- “World One
(King Tower)” by Shreeniwas Cotton Mills Limited (a Lodha group company) at
Lower Parel, Mumbai.
·
The Company in consortium with Patel Engineering
and BS Transcomm has also entered power transmission business by bagging the
contract for setting up a 765 KV transmission system associated with the
Krishnapattanam UMPP Synchronous interconnection between Southern Region and
Western Region (Part B) Raichur-Sholapur.
·
The Company has also been awarded a contract for 6
Laning of Chandikhole-Jagatpur-Bhubaneshwar Section of NH-5 by Shree Jagannath
Expressways Private Limited, a consortium of SREI Infrastructure Finance
Limited, Galfar Engineering S.A.O.G and the Company.
·
The Company has also bagged construction of
Jatrabari-Gulsitan flyover in Dhaka, Bangladesh
·
The Company has also been chosen for construction
of viaduct between Joka to Mominpur in BBD Bag Corridor of Kolkata Metro
Railway.
·
The Company has also been awarded the designing and
building contract of Durgapur Airport to be built by Bengal Aerotropolis
Projects Limited.
Being on the
fore-front of Indian construction sector, the Company’s prospects and
performance are closely linked with that of the industry. However their
technical expertise and proven track record gives them the edge in winning
prestigious or challenging projects. Forays into new promising areas, such as
Power Transmission, Development and Construction in Real Estate in recent years
have lent even more diversity to the well diversified product mix.
OPPORTUNITIES
OPPORTUNITIES IN INDIA
Simplex Infrastructures
business opportunities in India arise from the growth of various infrastructure
sectors which emanate from Power, Marine, Railways, Roadways, Bridges and
Elevated roads, Urban Development, Building and Housing sectors and Industrial
sectors.
The Power industry is the largest
infrastructure segment and has been a major thrust area for the Government of
India for the last several years. The average per capita consumption of
electricity in India is estimated to be a little
over 700 kWh,
which compares poorly to the world average of 2300 kWh. Power cuts are rampant
in many parts of the country with peak shortfall at 16%. Nearly 175000 MW
capacity is sought to be added during the 11th and 12th Five-Year
Plans at an estimated cost of USD 450 bn to ensure power for all.
Transmission is
another key area of the power sector where large investments are planned. The
current installed transmission capacity is only 13% of the total installed
generation capacity which needs to be augmented sharply.
An estimated
investment of USD 15 bn is projected for transmission capacity addition of
37000 MW by 2012.
As Government
enterprises currently account for more than 85% of the power generation
capacity, private enterprise is being strongly encouraged through a variety of
incentives such as income tax holiday and waiver of capital goods' import
duties on mega power projects. A number of power projects, including Ultra Mega
Power Projects are underway at various parts of the country. Simplex, being one
of large private construction companies, has a strong presence in the power
sector and has been associated with about 150 or about 80% of thermal power
plants in India constructed since 1960. The major orders have come from
Maithon, Doosan, BHEL, Vedanta, NHPC, Gujarat UMPP and Jindals. Given the
criticality of the power sector, the potential is enormous.
After power, Roads are the next largest
infrastructure sector on which India’s economic growth is dependant. India
boasts the third-largest road system in the world with over 3.3 million
kilometers. However in qualitative terms the situation is far from
satisfactory. Only about half the road length is paved and more than 90% roads
are structurally inadequate to bear fully loaded trucks. Less than 15% of
National Highways are four-laned, slowing inter-state transport to a crawl.
This coupled with the fact that road infrastructure handles almost 80% of
passenger traffic and about 65% of freight movement – with annual growth of
more than 10% over the past decade -makes it imperative to raise road width and
quality.
The Indian
Government has set ambitious plans for upgrading of the National Highways in a
phased manner in the years to come targeting to build 20 km per day. Notable
initiatives for the near term include 4-laning of 10000 km (NHDP Phase- III)
and Special Accelerated Road Development Programme in the North-Eastern Region
(SARDP-NE) for two/four-laning of about 5184 km of National Highways and
two-laning and improvement of about 4756 km of State Roads. State governments
too have woken up to the fact that good roads are an essential pre-requisite to
attracting industry, trade and talent. An expert committee formed by the
government estimates Rs. 173.000 millions will be required over the next thirty
years for urban roads alone. Simplex increased focus on road sector with its
share in the expanded order book, which rose from 2% to 10% (Rs.1802 millions
to Rs.14902 millions) - evidence of the huge opportunities in this sector.
Given the
shortcomings of the road system, the Railways
are required to play a large role in the transport of passengers and
goods. To expand the rail network, 1000 km of new lines has been planned for
2011-12 at a cost of over Rs. 95000.000 millions. Apart from this, Rs.
54060.000 millions and Rs. 24700.000 millions has been allocated for doubling
and gauge conversion projects to complete 867 km and 1017 km respectively.
Challenging projects include the Jammu- Kashmir Rail Link project and extension
of rail services to Imphal, the capital of Manipur. Of longer term significance
is the proposal to complete 25000 km of rail lines by 2020, including dedicated
freight and high speed corridors.
Apart from new
track projects the Railways is also investing substantially in allied
infrastructure ranging from manufacturing units to railway stations and
multifunctional complexes. Metro rail projects and other mass rapid transport
systems are being planned across major cities to ease traffic congestion, allow
rapid connectivity and control pollution levels. These initiatives have created
multiple opportunities for construction companies. Simplex
is one of the few
construction companies capable of automatic track-laying of high-speed rails
and is proud to be present in almost all metro projects across major cities-
Mumbai, Delhi, Kolkata, Bangalore and Dubai.
The Ports sector is another aspect
of India’s growing transportation needs. Maritime transport accounts for over
90% of the country’s international trade by volume and about 70% by value.
However Port infrastructure across India remains far short of ideal with the
major ports facing high congestion and slow turnaround. Some 60% of India’s
container traffic comes in through Mumbai/Navi Mumbai and it takes an average
of 21 days to clear import cargo in India compared to just 3 days in Singapore.
According to a Mckinsey report India’s current port capacity of 600 million
mega tonnes is already stretched with a projected demand of 1000 million mega
tonnes in 2012.
New port capacity
is therefore imperative. Cargo handling projected to grow at 7.7% in the coming
years and the
National Maritime
Development Programme expects the country to deal with nearly 18 million TEU
(twenty foot equivalent unit) of container traffic at all its ports by 2013-14.
The Government has drawn up ambitious plans for upgrading major ports and
adding new ones in the coming years at a total investment of over
Rs.1000000.000 millions, 24 port projects in FY12 worth about Rs. 170000.000
millions is scheduled to be awarded in 2011-12 alone. Simplex as the strongest
marine construction experts in the Country has been associated with major ports
in India. Its area of expertise includes under-sea piling including steel
piling under adverse sea conditions apart from design and construction of on-shore
and off-shore structures. Major orders have come from Mumbai JNPT Port, Cochin
Port, Adani, Karaikal, Paradeep and Mundra Ports.
Urban Infrastructure is yet another area where India is making rapid
strides. Growing urbanization is leading to serious infrastructure pressure in
the cities. Over the last decade the number of metropolitan cities with
population
of 1 million and
above has increased from 35 in 2001 to 50 in 2011 and this is expected to
increase further to 87 by 2031. Jawaharlal Nehru National Urban Renewal Mission
(JNNURM), covering 63 cities, has earmarked investments of more than
Rs.170000.000 millions every year towards the development of basic
infrastructure services including roads, water supply, sewerage, etc. Over 500
projects have been sanctioned under the Urban Infrastructure and Governance
(UIG) component of JNNURM at a cost of Rs.580000.000 millions since its
inception in 2005. These comprise 85 roads/flyover projects, 34 urban transport
projects, 147 water supply projects, 108 sewerage projects, 41 solid waste
management projects and 70 drainage/storm water drainage projects. The Indian
Railways too is spending large sums in setting up or expanding metro rail
projects in all major cities. Airports are being revamped and modernized, with
satellite airports coming up in smaller towns.
Simplex has a
considerable presence in development of urban infrastructure - metro rail
projects are planned across urban locations to ease traffic congestion, allow rapid
connectivity and control pollution levels. Simplex is
currently
constructing viaduct on Versova-Andheri- Ghatkopar Corridor, Mumbai, Viaduct
between Joka to Mominpur in BBD Bag Corridor, Kolkata and elevated structures
(viaduct )between Chainage 500 to 6350 MMysore Road terminal to Magadi Road,
Bangalore. Simplex is also engaged in sewerage pipelines at Bilaspur, Indore,
Jabalpur, development of Airport at Durgapur, construction of New Assam
Legislative Assembly Building
at New Assam , to name a few.
The High Powered
Expert Committee (HPEC) for estimating the investment requirements for Urban
Infrastructure Services has made projections for the period from the Twelfth
Five Year Plan to the Fifteenth Five Year Plan, i.e. 2012-31. Excluding land
acquisition costs it estimates that Rs 392.000 millions will be required at
2009- 10 prices to fund necessary infrastructure in this period. It also
estimates that 600 million people will live in Indian cities. There is little
doubt that building urban infrastructure will continue to be a priority for
many years to come.
Industrial Structures are an allied segment of production activity. The
growing economy stimulates the construction of steel plants, refineries,
fertilizer and cement plants as well as a host of smaller units to feed booming
markets. Six core infrastructure sectors — crude oil, petroleum refinery,
cement, electricity, finished steel and coal, account for over a quarter
(26.7%) in the Index of Industrial Production (IIP). Following the better show in
the last month of the fiscal year, the core sector ended 2010-11 with a
slightly better performance, having posted a marginally higher growth of 5.9%
as compared to 5.5% achieved in the previous fiscal, mainly driven by crude oil
and finished steel. Simplex is associated with many industrial majors and their
repeat orders reflect the faith reposed in us by them. They are currently
building 3 Cement plants, 8 Metal plants and 3 Oil refineries. Robust consumer
goods demand also augurs well for overall industrial activity.
The growing urban
population also creates a demand for Building
and Housing and the consensus estimate is that over 20 million
families are looking for homes. According to McKinsey, the demand for built up
space, including commercial space, is 700 to 900 million sqm annually in urban
India. This kind of demand has led to the concept of high-rise residential and
commercial blocks, which have technical and economic advantages in areas with
high population density like the cities of India. Residential towers have
become a preferred form of housing accommodation in virtually all densely
populated urban areas around the world. In contrast with low-rise and
single-family houses, apartment blocks accommodate more inhabitants per unit of
area of land they occupy and also decrease the cost of municipal
infrastructure. 5% of the India's GDP is contributed to by the housing sector,
which is expected to rise to 6% in the next five years.
Apart from
residential and commercial housing, Simplex is engaged to a large extent in
institutional housing construction as well. It is building hotels, educational
and medical institutions, assembly and administrative complexes, dwelling units
in army cantonments in various cities. This sub-segment accounts for nearly
half of the Housing Sector for Simplex.
By and large, real
estate development is in the hands of private sector players with the
government providing policy support to buyers through incentives such as
priority sector lending benefits (to sub Rs.2.000 millions housing loans) and
tax breaks. Most housing is developed by small players, often resulting in poor
quality. National builders remain few in number and this provides opportunities
for large professional companies like Simplex. For this purpose Simplex has
taken up housing construction on a considerable large scale and is currently
building for Sheth, Lodha, Brigade, HDIL, Keppel, Unitech, Mantri, Salarpuria,
etc, in metro cities.
OPPORTUNITIES OVERSEAS
Infrastructure
Construction is an activity in which engineering expertise counts for more than
geographical location. The growing realization that infrastructure building is
the fastest way to economic prosperity has made many countries open its doors
to Indian construction firms which can often offer an unbeatable combination of
expertise and economy.
Subject has a well
established presence in many parts of the Middle East, apart from Africa and
neighbouring countries in the Indian subcontinent. Each country presents its
own opportunities and projects range from highways, urban infrastructure,
marine structures, power plants, cement plants, refineries, ground engineering,
hotels and high-rise buildings, etc.
FINANCIAL PERFORMANCE
The turnover for
the financial year stood increased at Rs.47497 millions as against Rs. 44435
millions in the previous year. The Profit before Tax (PBT) of Rs 1955 millions
and Profit after Tax (PAT) of Rs.1232 millions for the financial year showed
slender improvement as against Rs.1911 millions and Rs.1226 millions respectively
for the previous financial year, despite cost pressures and subdued volume
growth. The Company recorded a higher EBITDA, which increased from Rs.4556
millions to Rs.4871 millions in the year. EBTDA was also higher during the
year, rising from Rs. 3444 millions to Rs.3563 millions.
They have been
steady throughout in terms of their operations despite the oscillating effects
in this industry, rising interest costs and elongated working capital cycle.
Their construction
business on consolidated basis has recorded the highest ever order inflow of
Rs.83823 millions during the year, growing the order book by 28 % to Rs.147070
millions from Rs.114910 millions last year. While the overall turnover rose by
a modest 7%, the domestic turnover accounting for 87% share grew by 23%, the
Middle East turnover shrank by 44%. The declining trend in the overseas sales
has now been arrested by addition of projects in Bangladesh, Saudi Arabia and
Ethiopia.
The Company has endeavored
to maintain its growth even in an inflationary environment through a prudent
choice of its projects and also effective monitoring of operational costs
across projects. However, the interest burden has been high on the Company
owing to increased working capital requirements. However, the Company continues
to have a positive outlook owing to emerging demand for infrastructure
development in the country.
FUTURE OUTLOOK
It is rightly said
if the economy has to grow, infrastructure has to grow. Inspite of global
economic slowdown in previous fiscal, India is the second fastest growing major
economy in the world. New/modernization airport projects, highways, flyovers,
metro rail, new hotel/service apartments/resorts projects, IT parks, SEZs,
integrated
townships, etc.
are buzzwords today in the booming construction and infrastructure industry.
Simplex's continuous efforts have made it capable of executing such challenging
projects and attain a significant presence in almost all verticals of
construction industry.
In the years
ahead, the construction industry in India has to overcome various challenges-be
it with respect to housing, environment, transportation, power or natural
hazards. All organizations associated with construction industry need to employ
innovative technologies and skilled project-handling strategies to overcome
these challenges. The outstanding performance under demanding situations in the
past will stand in good stead and give confidence to the Indian construction
industry to bring about an overall development in the infrastructure of the
nation. The large investments in the mega-projects will eventually yield
returns to the construction industry itself in the form of better economy.
The investment in
infrastructure in India has increased from 4.9% of the Gross Domestic Product
(GDP) in 2002-03 to 6% last fiscal. It is expected to touch 10% of GDP in the
12th Five Year Plan (2012-2017). With the emphasis on creating physical
infrastructure, massive investment is planned in this sector and consequently
the industry will be experiencing a great upsurge in the work load. It has
grown at the rate of over 10% annually during the last five years and is
expected to grow substantially in future also. It is well established that the
influence of construction industry spans across several sub-sectors of the
economy as well as infrastructure development. On the basis of an analysis of
the forward and backward linkages of construction, the multiplier effect for
construction on the economy is estimated to be significant.
FIXED
ASSETS
Ř
Ř
Ř Buildings
Ř Plant and Machinery
Ř Furniture and Fittings
Ř Motor Vehicles
Ř Computers
Ř Electrical Equipment
Ř Motor Vehicles
Ř Plant and Machinery
WEB SITE DETAILS
PROFILE
- One
of the pioneers and a total solution provider in construction and
infrastructure ambit
- Been
in business since 1924 and present in almost all Indian States as well as
Middle East.
- Employs
8110 people and has Capital Equipments of Rs.12960.000 millions as of FY,
10
- Simplex
combines financial robustness with technological competence. The Company
enjoys an uninterrupted profit track record since inception.
- Repeat
orders from reputed and large clientele
- Recognized
by World Confederation of Businesses as “Inspirational Company with all its Rights and Privileges” in
2010
- Ranked
7th among “India’s Top 10
Infrastructures Companies” by Construction Week
- Awarded
by International BID Quality Summit, New York the “International Quality Summit Award in Gold Category” for
achievement in Quality and Excellence in 2009
- Thrice
nominated as “Most Admired
Infrastructure Company” by NDTV Profit in 2006, 2008 and 2009
- Ranked
among “Top 5 India’s Fastest
Growing Large Companies” by Business Today in 2008
- Titled
as “Overall Best Managed Company”
by Asia Money in 2005
- Present
Order Book of Rs.114910.000 millions with over 150 Projects location in
India and Overseas
- The
Company reported a turnover of Rs.45550.000 millions and profit after tax
of Rs.1270.000 millions for FY, 10
- Its
shares are listed on the NSE, BSE and CSE enjoying Market Capitalization
of Rs.25000.000 millions
HISTORY
Since 1924 when Simplex became the first company to introduce
cast-in-situ-driven piles in India and South East Asia, it has been on the
forefront of technical break thoughts in the Indian construction industry.
|
1935 |
Starts construction of steel plants, subsequently building India's steel
backbone with plants for SAIL, Tata, Jindal, Essar, etc. |
|
1940s |
Constructs the prestigious King George Docks (Jawaharlal Nehru Port)
in Mumbai to be recognised as one of the top construction engineers of India |
|
1958 |
(1) Builds the tallest RCC framed structure in Asia -- the 17 storey
National Tower in Kolkata |
|
(2) Begins construction of basement using top down construction
technique for the first time in India |
|
|
1960s |
Makes maiden foray into the urban utilities segment, setting up sewage
treatment plant in Howrah |
|
1968 |
Successfully embarks into marine construction, leading to an eduring
association with all major ports in India. |
|
1970 |
Begins civil and structural construction of Thermal Power Plants. |
|
1972-73 |
Install India's first 50m deep cast-in-situ driven piles at Cochin. |
|
1977-78 |
Develops indigenous technique for soil densification through stone
columns by driven piling technique. |
|
1982-83 |
Develops breakthrough technique for jointed pre-cast concrete piles. |
|
1990 |
Constructs 2000mm dia pile foundation for the first time in India. |
|
1993-94 |
Becomes first to install fully computerised geo-technical laboratory
in India. |
|
1997 |
(1) Enters the transport sector with road, bridge and railway construction. |
|
(2) Constructs the first housing complex using Aarding 'Tunnel Forum'
technology in the country. |
|
|
1999 |
Constructs Rail over-bridge with 50m span P. S. C. Girder over running
electrified section of rail-track for the first time in India. |
|
2002 |
Begins civil and structural construction of Nuclear Power Plants to
establish comprehensive capabilities in the power sector. |
|
2004 |
Begins civil and structural construction of hydro-power plants. |
|
2008 |
Over 70 Mtr. deep Pile in Kochi. |
|
2010 |
Begins installation of steel using vibro technology at Dahej Port in
one of the world's most challenging marine conditions. |
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. 53.21 |
|
|
1 |
Rs. 83.31 |
|
Euro |
1 |
Rs. 69.51 |
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 |
|
|
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 |
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.