MIRA
INFORM REPORT
|
Report Date : |
06.01.2011 |
Note:
The Registered office of the company sifted from 6-3-635, Aakash Ganga,
3rd Floor, Khairatabad,
IDENTIFICATION DETAILS
|
Name : |
KNR CONSTRUCTIONS LIMITED |
|
|
|
|
Registered Office : |
8-2-686/B/6/A/302, 12th |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation: |
11.07.1995 |
|
|
|
|
Com. Reg. No.: |
01-21016 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74210AP1995PLC021016 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
HYDK00762G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACK8316L |
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the stock Exchange. |
|
|
|
|
Line of Business : |
Contractor of Roads (Working for Central Government, National
highways) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 |
|
Maximum Credit Limit : |
USD 12000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DENIED BY
|
Name : |
Mr. Murthy |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-40-23323435 |
|
Date : |
04.01.2011 |
LOCATIONS
|
Registered Office/ Corporate Office : |
8-2-686/B/6/A/302, 12th |
|
Tel. No.: |
91-40-23323435/36/37 |
|
Fax No.: |
91-40-23323439 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branches Office : |
A-1/16 Sector B opposite |
|
Tel. No.: |
91-52-24025895 |
|
Location : |
Owned |
|
|
|
|
Branches Office : |
Shreepadham 1034/4, 9th B Main Cross, Judishad Layout, JHVK
Post, Yaelahanka, Bangalore-560065, |
|
Tel. No.: |
91-80-64504587 |
|
Contact person: |
Mr. Venugopal Reddy |
|
Location : |
Owned |
|
|
|
|
International Branch Office : |
Office 1606 INDIGO ICON ~ |
|
Tel. No.: |
971 4 4478122 |
|
Fax No.: |
971 4 4478123 |
|
E-Mail : |
DIRECTORS
As On 29.09.2010
|
Name : |
Mr. K. Narasimha Reddy |
|
Designation : |
Managing Director |
|
Address : |
Plot NO. 84, Road NO. 7, Women’s Co-operative Society, Jubilee Hills, |
|
Date of Birth/Age : |
28.12.1947 |
|
Qualification : |
Graduation |
|
Date of Appointment : |
11.07.1995 |
|
DIN No. : |
00382412 |
|
|
|
|
Name : |
Mr. M. Rajesh Reddy |
|
Designation : |
Director |
|
Address : |
H. NO. 16-2-61/A/12, Akbar Bagh X Roads, Malakpet, |
|
Date of Birth/Age : |
23.08.1972 |
|
Qualification : |
Engineer |
|
Date of Appointment : |
21.03.2005 |
|
DIN No. : |
00425439 |
|
|
|
|
Name : |
Mr. K Jalandhar Reddy |
|
Designation : |
Director |
|
Address : |
Plot NO. 84, Road No. 7, Women’s Co-operative Society, Jubilee Hills, |
|
Date of Birth/Age : |
08.06.1971 |
|
Qualification : |
Engineer |
|
Date of Appointment : |
11.07.1995 |
|
DIN No. : |
00434911 |
|
|
|
|
Name : |
Mr. J V Panindra Reddy |
|
Designation : |
Director |
|
Address : |
1st Floor, P. No. 101, Sai Ashirvad Apartments, A.C Guards,
Hyderabad – 500004, Andhra Pradesh, India |
|
Date of Birth/Age : |
04.09.1966 |
|
Qualification : |
B .Tech |
|
Date of Appointment : |
01.06.1999 |
|
DIN No. : |
00601982 |
|
|
|
|
Name : |
Mr. B.V Ramarao |
|
Designation : |
Chairman |
|
Address : |
Plot No. 16, Flat No. 101, Chap’s Prashanthi Niketan Apartments,
Srinagar Colony, |
|
Date of Birth/Age : |
21.09.1939 |
|
Date of Appointment : |
26.12.2005 |
|
DIN No. : |
00972552 |
|
|
|
|
Name : |
Mr. L.B Reddy |
|
Designation : |
Director |
|
Address : |
310, Emeraid Apartments, Panjagutta, |
|
Date of Birth/Age : |
01.08.1942 |
|
Date of Appointment : |
26.12.2005 |
|
DIN No. : |
00956445 |
|
|
|
|
Name : |
Mr. JSR Chandra Mouli |
|
Designation : |
Director |
|
Address : |
NO. 72, Umanagar, Begumpet – 500016, |
|
Date of Birth/Age : |
20.05.1934 |
|
Date of Appointment : |
26.12.2005 |
|
DIN No. : |
00962507 |
|
|
|
|
Name : |
Mr. D. Ramaiah |
|
Designation : |
Director |
|
Address : |
H.No.8-2-293/82/C/75, Plot No 75, Women’s Co-operative Housing
Society, Krishna Nagar, Hyderabad – 500033, Andhra Pradesh, India |
|
Date of Birth/Age : |
13.03.1936 |
|
Date of Appointment : |
26.12.2005 |
|
DIN No. : |
00972835 |
KEY EXECUTIVES
|
Name : |
Mr. Veeravenkata Rao Mirthipati |
|
Designation : |
Company Secretary |
|
Address : |
1-3-183/39/D/E, Gandhi Nagar, P and |
|
Date of Birth/Age : |
29.03.1980 |
|
Date of Appointment : |
04.04.2007 |
|
Pan No. : |
ADVPV6497J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
20,741,880 |
73.75 |
|
|
20,741,880 |
73.75 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
20,741,880 |
73.75 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,133,007 |
7.58 |
|
|
1,750 |
0.01 |
|
|
33,325 |
0.12 |
|
|
2,168,082 |
7.71 |
|
|
|
|
|
|
2,261,838 |
8.04 |
|
|
|
|
|
|
1,429,276 |
5.08 |
|
|
1,403,311 |
4.99 |
|
|
119,073 |
0.42 |
|
|
74,411 |
0.26 |
|
|
43,702 |
0.16 |
|
|
270 |
- |
|
|
300 |
- |
|
|
390 |
- |
|
|
5,213,498 |
18.54 |
|
Total Public shareholding (B) |
7,381,580 |
26.25 |
|
Total (A)+(B) |
28,123,460 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
|
|
|
|
|
|
|
|
- |
- |
|
Total (A)+(B)+(C) |
28,123,460 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionAs On 29.09.2010
|
Category |
Percentage |
|
Mutual Funds |
7.56 |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
Indian(s) or Overseas Corporate bodies or Others |
0.05 |
|
Bodies corporate |
8.55 |
|
Directors or relatives of Directors |
73.56 |
|
Other top fifty shareholders |
5.33 |
|
Others |
4.95 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Contractor of Roads (Working for Central Government, National
Highways) |
GENERAL INFORMATION
|
No. of Employees : |
Information not divulged by management |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Installments falling due within 12 months Notes: a) Working
Capital Facilities: Cash Credit facilities from consortium of banks are
secured by: 1 Hypothecation of entire current assets on pari passu basis with
other participating banks, 2 First pari passu charge on equitable mortgage of land and buildings,
the WDV of which is Rs. 14.200 millions as on 31.03.2008. 3 First pari passu charge on equitable mortgage of 5 acres of
agricultural land of approximate value of Rs. 60.000 millions 4 First pari passu charge on equitable mortgage of industrial factory
buildings without machinery of approximate value of Rs. 254.000 millions 5 Hypothecation of certain equipments of written down value as on
31.03.2008 is Rs. 178.500 millions 6 Personal guarantee of four Directors. b) Term Loans: Terms Loans availed from bank and edicts are secured by hypothecation of
specific assets, comprising plant and machinery construction equipment and
vehicles acquired out of the said loans and personal guarantee of a director. c) Advances: Mobilization and Machinery advances are received from clients against
bank guarantees.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sukumar Babu and Company Chartered Accountant |
|
Address : |
Flat No. 513, Aditya Enclave, Annapurna Block, |
|
Pan No. : |
AEAPC4788B |
|
|
|
|
Subsidiaries : |
CIN: U74999AP2008PTC058829
|
|
|
|
|
Associates : |
|
|
|
|
|
Joint Ventures : |
|
|
|
|
|
Enterprises owned or significantly influenced by key management
personnel or their relatives: |
|
CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs. 10/- each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
28123460 |
Equity Shares |
Rs. 10/- each |
Rs. 281.235
Millions |
|
|
|
|
|
Note:
Out of above 13499260 equity shares in earlier
year are issued as fully paid up bonus shares by capitalization of Rs. 134.993
millions from General Reserves.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
281.235 |
281.235 |
281.235 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2789.035 |
2352.034 |
1981.279 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3070.270 |
2633.269 |
2262.514 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1103.254 |
1359.605 |
1626.671 |
|
|
2] Unsecured Loans |
2.447 |
0.214 |
8.761 |
|
|
TOTAL BORROWING |
1105.701 |
1359.819 |
1635.432 |
|
|
DEFERRED TAX LIABILITIES |
68.913 |
71.188 |
65.622 |
|
|
|
|
|
|
|
|
TOTAL |
4244.884 |
4064.276 |
3963.568 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2099.518 |
2066.624 |
1786.283 |
|
|
Capital work-in-progress |
105.337 |
25.451 |
9.026 |
|
|
|
|
|
|
|
|
INVESTMENT |
650.679 |
1105.082 |
1136.258 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
136.771
|
185.476 |
159.445 |
|
|
Sundry Debtors |
1900.775
|
1284.405 |
598.354 |
|
|
Cash & Bank Balances |
391.295
|
432.203 |
365.906 |
|
|
Other Current Assets |
794.589
|
529.178 |
517.666 |
|
|
Loans & Advances |
1962.472
|
1079.790 |
1160.241 |
|
Total
Current Assets |
5185.902
|
3511.052 |
2801.612 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1546.898 |
917.256 |
|
|
|
Other Current Liabilities |
1595.560
|
1358.517 |
1590.494 |
|
|
Provisions |
716.461
|
439.436 |
260.084 |
|
Total
Current Liabilities |
3858.919
|
2715.209 |
1850.578 |
|
|
Net Current Assets |
1326.983
|
795.843 |
951.034 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
62.367 |
71.276 |
80.967 |
|
|
|
|
|
|
|
|
TOTAL |
4244.884 |
4064.276 |
3963.568 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7087.023 |
6474.517 |
4763.828 |
|
|
|
Other Income |
74.581 |
67.973 |
66.354 |
|
|
|
TOTAL (A) |
7161.604 |
6542.490 |
4830.182 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Consumed |
1894.339 |
1810.589 |
550.377 |
|
|
|
Work contract expenses |
3845.258 |
3448.084 |
3378.618 |
|
|
|
Administration and other expenses |
255.191 |
249.466 |
177.402 |
|
|
|
Issue expenses written off |
8.909 |
8.822 |
8.996 |
|
|
|
Prior period items |
(8.715) |
2.636 |
3.612 |
|
|
|
Prior year’s taxation |
0.289 |
2.995 |
8.953 |
|
|
|
Prior period taxes of JV’s |
62.650 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
6057.921 |
5522.592 |
4127.958 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1103.683 |
1019.898 |
702.224 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
69.908 |
111.570 |
100.384 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1033.775 |
908.328 |
601.840 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
261.752 |
250.190 |
144.940 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
772.023 |
658.138 |
456.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
269.216 |
221.577 |
161.414 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
502.807 |
436.561 |
295.486 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
957.103 |
631.348 |
383.765 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
50.500 |
45.000 |
15.000 |
|
|
|
Proposed Dividend |
56.247 |
56.247 |
28.123 |
|
|
|
Corporate Dividend Tax |
9.559 |
9.559 |
4.780 |
|
|
BALANCE CARRIED
TO THE B/S |
1343.604 |
957.103 |
631.348 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
17.88 |
15.52 |
13.83 |
|
|
|
- Diluted |
17.88 |
15.52 |
13.83 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
|
Net Sales |
|
1956.300 |
2031.250 |
|
Total Expenditure |
|
1638.230 |
1773.310 |
|
PBIDT (Excl OI) |
|
318.070 |
257.940 |
|
Other Income |
|
33.440 |
30.130 |
|
Operating Profit |
|
351.510 |
288.070 |
|
Interest |
|
20.250 |
17.330 |
|
PBDT |
|
331.260 |
270.740 |
|
Depreciation |
|
102.590 |
83.110 |
|
Profit Before Tax |
|
228.670 |
187.630 |
|
Tax |
|
65.420 |
56.640 |
|
Profit After Tax |
|
163.250 |
130.990 |
|
Net Profit |
|
163.250 |
130.990 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.02
|
6.67 |
6.12 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.89
|
10.16 |
9.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.60
|
11.80 |
9.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.25 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.62
|
1.55 |
1.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.34
|
1.29 |
1.51 |
LOCAL AGENCY FURTHER INFORMATION
The Details of
Sundry Creditors:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
1546.898 |
917.256 |
NA |
History:
The Company was incorporated on July 11, 1995 as Subject and received
certificate of commencement of business on August 9, 1995
The company has enhanced in the business of infrastructure project development
providing engineering, procurement an construction services across various fast
growing sector namely roads and highways, irrigation and urban water
infrastructure management. The company project execution strength primarily is
in road transportation engineering projects namely construction and maintenance
of roads, highways, flyovers and bridges wherever integral to the projects
undertaken.
In 1997, the company has acquired at their book values the assets and
liabilities of partnership business of Mr. N K
Narasimha Reddy and company for a total consideration of Rs. 31.900
millions with effect from April 1, 1997. At the time of acquisition, the firm
was engaged in the business of undertaking civil and mechanical contracts work.
Over a period of time the company has gained expertise in construction of roads
on EPC basis and further diversified into other infrastructure segments like
irrigation, water supply and urban water infrastructure management.
In the past the company has executed infrastructure projects
independently as well as through joint venture. Currently most of the road
projects were executed with joint venture partner, Patel engineering limited.
As on June 30, 2007, the company has having 24 projects on hand across
The estimated unexecuted order book position, as at June 30, 2007 was
Rs. 12729.800 millions which is approximately 4 times the operational income of
fiscal 2007 on consolidated basis.
REVIEW OF
PERFORMANCE:
The company
continues to be in the business of work contracts specializing in Roads and
Bridges and other infrastructure projects like irrigation projects. During the
year under consideration, the company has achieved a turnover of Rs. 8991.727
Millions as against Rs. 7686.536 Millions in the previous year, thus
registering an increase of 16.98 %. The company has earned a gross profit of
Rs. 1157.907 millions before interest and depreciation as against Rs. 1025.529
Millions in the previous year, thus registering a growth of 12.91%. After
deducting an interest of Rs. 69.908 Millions, providing for Rs.261.752 Millions
towards depreciation, Rs. 269.216 Millions towards provision for income tax,
wealth tax, and deferred tax, Rs. 54.224 Millions towards prior period items
and taxes, the operations resulted in a net profit of Rs. 502.807 Millions as
against Rs. 436.561 Millions last year, registering a growth of 15.17 %.
MANAGEMENT DISCUSSION AND ANALYSIS:
Macro economic perspective
Yet irrespective of ups and downs in economic
growth, which are sometimes driven by the fortunes of countries overseas, there
is a constant emphasis on building a strong and sustainable infrastructure base
with in the country. At a conference on ‘Building Infrastructure: Challenges
and Opportunities,’ there Prime Minister Dr. Manmohan Singh stressed that
investments in infrastructure had to expand to as much as USD I trillion
(around Rs 45.6 trillion) in the 12th Plan period (2012-2017). This estimate is
nearly twice the amount projected to be spent on infrastructure in the current
Plan period. And, while the 11th Plan estimates that the private sector would
contribute nearly one-third of the total planned investments, Planning
Commission officials have stated that private investment should begin to
outpace public investments in infrastructure towards the end of the 12th Plan
period.
This gives an idea of the scope of opportunity
that lies open before the Company.
Infrastructure creation through Public Private Partnerships (PPP)
The recent economic downturn reinforced the
need for enhancing infrastructure investment for greater productivity and
growth. This in turn underscored the importance of PPPs in effectively
harnessing the required resources. PPPs offer a number of advantages in terms
of leveraging public capital to attract private capital and undertake a larget
number of infrastructure projects, introducing private sector expertise and
cost-reducing technologies as well as bringing in efficiencies in operation and
maintenance. Hence, PPPs have become tools to fulfill the basic obligations of
the Government to provide better infrastructure services, by increasing the
accountability of the private sector as a service provider.
Realising this, the Government of India has
been developing several enabling tools to promote PPPs. These tools are vital
to catalyze investments for building new infrastructure and improve the
efficient operation and management of assets over their lifetime and ensure
teal focus on service delivery. With a view to supporting and guiding Urban
Local Bodies (ULBs) in the development of PPP projects, a Water Supply toolkit
and Urban Transport toolkit were launched in January 2010.
The toolkits detail the key processes such as
steps involved include:
- Identification of suitable PPP structure and processes involved in
implementation,
- Preparatory work to be done for the identification of a PPP
structure,
- Viability assessment of projects identified on PPP basis,
- Procesi a public entity should follow to decide whether it should
opt for public funding or PPP,
- Idenrification and allocation of risks amongst the public entity and
private operator/developer
- Selection of a suitable contract structure and
- Procurement process to be followed if the ULB decides to implement
the project on a PPP basis.
Roads
The country’s road network consists of
National Highways (NI Is), state highways, major district roads, other district
roads and village roads. About 27% of the total length of National Highways is
single-lane/intermediate lane, about 54% is two-lane standard and the balance
19% is four-lane standard or more. According to the latest Economic Survey,
against a stipulated target of developing about a 3,165 km of National Highways
under various phases of the National Highway Development Project (NHDP), the
achievement (end November 2009) was only about 1,490 km. Similarly, as against
the 2009-10 target of about 9,800 kms for awarding projects under various
phases of the NHDP, projects totaling a length of merely about 1,285 kms were
awarded op to end November 2009.
The main reasons cited for the delay in
awarding of projects under the NHDP included - new procedure for approval of
PPP projects, modifications in the model concession agreements (MCA), new
request for qualification (RFQ) process and new MCA conditions, cap on maximum
number of pre-qualified bidders, and time involved in evaluation of voluminous
information.
However, with a view to expediting the progress
of the NHDP, the Ministry of Road Transport and Highways has set a target of
completion of 20 km of NHs per day, which translates to 35,000 km at the rate
of 7,001) km per year during the next five years 2009-14). The NHAI formulated
Work Plans (Work Plan I and II) for awarding 12,000 km each during the years
2009-10 and 2010-11, These Plans lay down a specific timeframe for various
activities and are being monitored very closely at various levels.
Company overview
The Company, which is a multi-domain
infrastructure project development Company, provides Engineering, Procurement
and Construction services (EPC) across various fast growing infrastructure
sectors in the economy, especially segments such as roads and highways,
irrigation and urban water infrastructure management. There project execution
strength is primarily in read transportation engineering projects, wherein they
undertake construction and maintenance of roads, highways, flyovers and
bridges.
Since there incorporation in 1995, they have
been garnering experience in the field of infrastructure development. With a
unique combination of expertise drawn from wealth of experience and a
consistent track record of performance, the Company has emerged to be the most
trusted name In the Industry.
They have, in the past, executed
infrastructure projects independently as well as through joint ventures.
Currently, most of the road projects under execution are with there joint
venture partners. As on date they have 14 projects on hand across various
states in
Looking forward, they are planning forays into
new business areas while strengthening existing business activities and
investing in infrastructure.
Major projects received during the year
During the past year, they have been awarded a
number of projects and commissioned some that were undertaken in the past. They
have recently commissioned the Rs. 5500.000 millions annuity project on the
Hyderabad Nagpur highway, which is a 48-km stretch between Islam Nagar and
Kadrlial NH-7. This was undertaken in partnership with Patel engineering. They
will soon be drawing there first annuity installment on this project, which is
in the BOT format. They have also finally completed the road, which runs from
Devanahalli in Karnataka to the Andhra Pradesh border.
Adding to its order book, the Company has
bagged a Rs. 8230.000 millions road project in Karnataka to be executed within
910 days. This EPC order entails four-laning of the road stretch on the
National Highway 13 (between 102-202 kin) under the National Highway
Development Project Phase HI.
They have also been awarded a Rs. 2310.000
millions order from the National Highway Authority of India NHAI) in the state
of Orissa for completion of work on NH-5. The order includes widening the road
from four lane to six lane /and strengthening the existing two lane carriageway
of NH-5 in Orissa. The project is to be completed within 24 months.
Discussion on financial performance and operational performance
1. Turnover: The Gross Sales of the Company
increased from Rs. 7686.500 millions in FY 09 to Rs. 8991.700 millions,
clocking a growth of 16.98%.
2. Share Capital: The Company has not allotted
any shares during the year under review and the paid up share capital as on
31.03.2010 is Rs. 28.123 millions divided in to 28123460 Equity Shares of Rs.
10/- each.
3. Reserves and Surplus: The Reserves and
Surplus of the Company has gone up from Rs. 2352.000 millions to Rs. 2789.000
millions in 2009-10 on account of profit made during the year.
4. Net worth: The Company’s Net Worth
increased from Rs. 2562.000 millions to Rs. 3007.900 millions mainly on account
of internal generation of profit.
5. Secured / unsecured loans: There was a
decrease of loans from Rs. 1359.800 millions to Rs. 1105.700 millions. The
decrease was partly due to repayment of term loans to banks and others and
recovery of mobilization advances by the clients from the running account
bills.
6. Fixed Assets: The Company’s Fixed Assets
(Gross Block) increased by Rs.293.600 millions in 2009-10 from Rs. 2599.100
millions to Rs. 2892.700 millions which have been acquired for execution of new
contracts awarded to the Company during the year.
7. Provision for Tax: The Company has provided
for a sum of Rs. 269.200 millions as current year tax including wealth tax.
8. Net Profit The Company’s Net Profit after
Tax and extraordinary expenses during the year was Rs. 502.800 millions as
compared to Rs. 436.500 millions in 2008-09.
9. Dividend: The Board of Directors have
recommended a divided of Rs. 2.00 per share (being 20%) and total payout works
out to Rs. 65.800 millions (including dividend tax).
10. Earning Per Share (EPS): The Company’s EPS
has increased to Rs. 17.88 in the current year from Rs. 15.52 in the previous
year.
Contingent Liabilities not provided for:
Rs. In Millions
|
Sl No. |
Particulars |
2009-10 |
|
a. |
Bank Guarantees |
|
|
|
- for Company |
1933.834 |
|
|
- for Joint Ventures |
408.620 |
|
|
- for SPV’s |
62.232 |
|
|
Total |
2404.686 |
|
b. |
Corporate guarantee |
5264.225 |
|
c. |
Letter of credit |
Nil |
|
d. |
Demands against the Company not acknowledged as debts and not provided
for in respect of which the Company has filed appeal |
|
|
|
- Income tax |
0.468 |
|
|
- Sales tax |
15.650 |
|
e. |
Claims against the Company not acknowledged as debts |
Nil |
|
f. |
Joint and several liabilities in respect of joint venture projects and
liquidated damages in respect of delays in completion of projects - amounts
are not ascertainable. |
|
Form 8:
|
Corporate
identity number of the company |
L74210AP1995PLC021016 |
||||||
|
Name of the
company |
KNR CONSTRUCTIONS
LIMITED |
||||||
|
Address of the
registered office or of the principal place of business in |
8-2-686/B/6/A/302,
12TH SQUARE BUILDING, 3rd
FLOOR, ROAD NO.12, Banjara Hills, |
||||||
|
This form is for |
Creation of charge
|
||||||
|
Type of charge |
Movable Property Plant and
Machinery |
||||||
|
Particular of
charge holder |
|
||||||
|
Nature of
instrument creating charge |
Hypothecation
Deed for Plant and Machinery dated 16.11.2010 for USD 1.130 million ( |
||||||
|
Date of
instrument Creating the charge |
16.11.2010 |
||||||
|
Amount secured by
the charge |
Rs. 113.200
Millions |
||||||
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest
– Interest shall be
payable by the company on the banking facilities as per bank's tariff,
subject however that the bank shall have
right to change the rate of interest after giving notice to company Terms of
Repayment – In consideration
of banking facilities sanctioned/to be sanctioned by the bank to the company,
the company has hypothecated and charged to the bank by way of exclusive
first charge as a continuing security, on the plant and machineries acquired
out of the facilities granted by the bank, present and future, mentioned in
the hypothecation deed for plant and machinery, to secure the repayments of
the advances together with interest, cost and all other charges. Margin - The
company shall maintain such margin as may be specified by the bank from time
to time. Extent and
Operation of the charge - In case the company fails to fulfill obligation
under the agreement, The bank shall be entitled to take possession of the
Hypothecated properties and sell them by public auction or private contract
and utilise the proceeds in full or part settlement of its claims. |
||||||
|
Particulars of
the property charged |
Exclusive First
charge on the plant and machineries and other moveable fixed Assets of the
company, present and future, acquired out of the facilities granted by the
bank 1 No. D and G
Asphalt Batch Mix Plant (Model DG 3000BC) 240 TPH Capacity along with the
automatic control and bag house type filter along with other accessories at
No. 69, Phase-II, Vajra Hanuman Nagar, Bagalkot Ring Road, Bijapur - 586101,
Karnataka State 1 No. Commander
III 4T Concrete Slip Form Paver at No. 69, Phase-II, Vajra Hanuman Nagar,
Bagalkot Ring Road, Bijapur - 586101, Karnataka State 2 Nos Tadano
Brand New Rough Terrain cranes and parts. Model GR 700 EX, Specific No.
GR-700E-1-00212 at No. 69, Phase-II, Vajra Hanuman Nagar, Bagalkot Ring Road,
Bijapur - 586101, Karnataka State |
Fixed Assets:
- Land
- Buildings
- Plant and machinery
- Office equipment
- Furniture and fittings
- Computers and accessories
- Office vehicles.
Website Details Attached:
The Vision
To develop KNRCL as a centre of excellence in the field of
Infrastructure Services by striving continuously to provide ecofriendly
solutions, adopting state-of the- art practices and commitment to quality
through motivated human resources.
Subject (from know written as "KNRCL”) is an ISO 9001:2000 Certified
company and listed in Bombay Stock Exchange Limited (BSE) and National Stock
Exchange of India Limited (NSE). KNRCL is a multidomain infrastructure project
development company providing (EPC) engineering, procurement and construction
services across various fast growing sectors namely roads and highways,
irrigation and urban water infrastructure management. The project execution
strength primarily is in road transportation engineering projects namely
construction and maintenance of roads, highways, flyovers and bridges wherever
integral to the projects undertaken.
KNRCL incorporated in 1995 by professionals having experience in the field of
infrastructure development. In 1997, KNRCL acquired at their book values the
assets and liabilities of M/s K. Narasimha Reddy and Co. ("partnership
firm") started by Shri K. Narasimha Reddy who is a promoter of KNRCL, this
partnership firm was engaged in the business of undertaking civil and
mechanical contract works since 1979.
In the year 2008 KNRCL had opened up for Initial Public Issue and raised
Rs.1338.670 millions and got itself listed on Bombay Stock Exchange Limited
(BSE) and National Stock Exchange of India Limited (NSE).
They have in the past executed infrastructure projects independently as well as
through joint ventures. Currently, most of the road projects under execution
are with the joint venture partners. As on date they have 20 projects on hand
across various states in
The estimated unexecuted order book position as at 01.04.2009 was Rs. 11418.000
millions.
KNR is planning forays into new business areas while strengthening existing
business activities and investing in infrastructure.
Transformation - Shaping the
future now.
Over the years, KNR has developed a significant and diversified presence across
the construction and infrastructure domains in
Transformation being the key to gaining the cutting edge of leadership in an
increasingly complex infrastructure landscape, the company is poised to bring a
transformation and impart an increasingly effective role to all related
business activities, thereby reinforcing its position of leadership in the
future.
Client satisfaction would continue to be the guiding principle of the company's
strategy for growth.
BOARD
OF DIRECTORS:
Mr.
B. V. Rama Rao
Non Executive and independent Chairman
Mr. B.V.Rama Rao is the Non Executive and Independent Chairman of Subject. He
holds a Master's Degree in Economics from
Mr.
K. Narasimha Reddy
Managing Director
Mr .K. Narasimha Reddy is the Managing Director of Subject. He is the Founder,
Promoter and Managing Director of Subject. With over 40 years of experience in
the Highway sector he has been the driving force in taking the company towards
greater heights. He started his career in 1968 as a contractor. In 1979 he
formed a partnership business in the name and style of M/s. K. Narasimha Reddy
and Company, which was engaged in the business of undertaking civil and
mechanical contracts. Mr Reddy has extensive knowledge and experience in multi
project planning Scheduling, cost controls in addition to overall construction
and multi project management.
Mr.
K. Jalandhar Reddy
Executive Director
Mr. K. Jalandhar Reddy is the Promoter and Executive Director of Subject. He
has over 18 years of experience in the Highway and infrastructure sector. He
started his career with the organisation as a project Manager and was elevated
to Executive Director on April 1, 1997. He heads the tendering and bidding
activities and is in charge of most of the projects in
Mr.
J. V. Panindra Reddy
Executive Director
Mr. J.V. Panindra Reddy, is the Promoter and Executive Director of Subject.
With over 18 years of experience in the Highway and infrastructure sector, he
has been closely associated with the organisation ever since its inception. As
Executive Director, he is in charge of Projects in North and North Eastern states
of
Mr.
M. Rajesh Reddy
Executive Director
Mr. M. Rajesh Reddy Is the promoter and Executive Director of Subject. He has
over 12 years of experience, of which he has five years experience in the High ways
and infrastructure sector. Key responsibilities are monitoring, Project finance
and co-ordination with various projects all over
Mr.
D. Ramaiah
Independent Director
Mr. D. Ramaiah is an Independent Director of Subject. Mr. Ramaiah has over 45
years of experience in planning, administration and revenue related matters.
Mr. Ramaiah started his career in 1965 as an Assistant Lecturer in
Mr.
L. B. Reddy
Independent Director
Mr. L. B. Reddy is an Independent Director of Subject. Mr. Reddy is a Fellow
Member of The Institute of Chartered Accountants of India and is a senior
partner in M/s. L. B. Reddy and Co., a Chartered Accountants firm Mr. Reddy
started his career with Syndicate Bank and has worked in various capacities before
retiring as General Manager. He has over 30 years of experience in areas such
as planning, audit, monitoring accounting system, and development. He was also
on deputation from Syndicate Bank with Rayalaseema Grameena Bank as Chairman
for six years.
Mr. J. S. R. Chandra Mouli
Independent Director
Mr. J. S. R. Chandra Mouli is an Independent Director of Subject. He hold s
Bachelor's Degree in Civil Engineering from
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.45.20 |
|
|
1 |
Rs.70.27 |
|
Euro |
1 |
Rs.59.99 |
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.