MIRA
INFORM REPORT
|
Report Date : |
01.06.2011 |
IDENTIFICATION DETAILS
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Name : |
ERA INFRA ENGINEERING LIMITED ERA MACHINE MART DIVISION OF ERA INFRA ENGINEERING LIMITED |
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Registered
Office : |
370-371/2, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
03.09.1990 |
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Com. Reg. No.: |
041350 |
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Paid-up Capital : |
Rs. 358.333 Millions |
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CIN No.: [Company Identification
No.] |
L74899DL1990PLC041350 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELE00986G |
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PAN No.: [Permanent Account No.] |
AAACE1268K |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed in
Stock Exchange. |
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Line of Business
: |
Construction Activity. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
A (61) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 58200000 |
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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 company having fine track. Financial position
of the company 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 good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
370-371/2, |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
153, Ground Floor, Okhla Industrial Estate, Phase III, |
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Tel. No.: |
91-11-40637000 |
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Fax No.: |
91-11-40637070 |
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Corporate Office 2 : |
C-56/41, Sector 62, |
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North Zone Yard Address-Delhi NCR |
Opposite Barhi
Industrial Area, Phase-II, Near |
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E-Mail : |
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East Zone Yard Address-Delhi NCR |
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E-Mail : |
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West Zone Yard Address-Mumbai |
Old |
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E-Mail : |
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South Zone Yard Address-Hyderabad |
Survey No.63-64, Via – |
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E-Mail : |
DIRECTORS
As on 31.03.2010
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Name : |
Mr. H S Bharana |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. J L Khushu |
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Designation : |
Whole-Time Director |
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Name : |
Mr. Arvind Pande |
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Designation : |
Director |
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Name : |
Mr. Anil Razdan |
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Designation : |
Director |
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Name : |
Mr. S D Sharma |
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Designation : |
Director |
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Name : |
Mr. A K Mehta |
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Designation : |
Director |
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Name : |
Mr. S. D. Kapoor |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Rajiv Kumar |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Construction Activity. |
PRODUCTION STATUS As on
31.03.2010
|
Particulars |
Unit |
Licensed Capacity & Installed Capacity |
Actual
Production |
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RMC Plants |
Cum. |
264000 |
183602 |
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Crusher Plant |
MT |
720000 |
246746 |
GENERAL INFORMATION
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No. of Employees
: |
Not Available |
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Bankers : |
·
Union Bank of ·
State Bank of ·
Bank of ·
Canara Bank, ·
Punjab National Bank, ·
Bank of Maharashtra, South Extension, ·
Central Bank of ·
Jammu and Kashmir Bank Limited, Lajpat Nagar, ·
United Bank of ·
Indian Overseas Bank, ·
Oriental Bank of Commerce, ·
·
State Bank of ·
State Bank of ·
Corporation Bank, Greater Kailash, |
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Facilities : |
Notes 1 Term Loan and External Commercial Borrowings (ECB) are secured by way of first pari passu charge on the movable and immovable fixed assets of the company and second charge on the current assets of the company, further ECB is secured by way of DSRA account. Borrowings from banks are secured by way of hypothecation of stock, book-debts and in some cases other current assets both present and future of the company through pari-passu and/or second, subservient charge on current and fixed assets of the company. In some cases these are further secured by way of first pari passu charge on movable and immovable fixed assets of the company and further secured by equitable mortgage of certain personal assets, investment and personal guarantees of Mr. H.S.Bharana, Chairman and Managing Director/his associates / relatives as the case may be. 2 Equipment Finances are secured by way of hypothecation of respective assets. 3 Mobilisation advance from clients are secured against guarantees. 4 Other Loans and advances are secured against pledge of key man insurance policies. 5 Non- convertible debentures are secured against the
first pari passu charge on the fixed assets,non agricultural land situated at
Distt. Mehsana,
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
G. C. Sharda and Co Chartered Accountant |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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30,00,00,000 |
Equity Shares |
Rs. 2/- each |
Rs. 600.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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17,91,66,325 |
Equity Shares |
Rs. 2/- each |
Rs. 358.333 Millions |
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Note : Includes 1,57,36,400 Equity Shares of Rs.2/- each issued as fully paid up bonus shares by capitalization of securities premium account & profit & loss account
As on 06.08.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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30,00,00,000 |
Equity Shares |
Rs. 2/- each |
Rs. 600.000 Millions |
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Issued, Subscribed & Paid-up Capital : 363.655
millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
358.333 |
287.100 |
231.036 |
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2] Share Warrants |
0.000 |
0.000 |
233.750 |
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3] Reserves & Surplus |
14212.336 |
8501.824 |
4431.096 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
14570.669 |
8788.924 |
4895.882 |
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LOAN FUNDS |
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1] Secured Loans |
21069.851 |
12638.781 |
9713.765 |
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2] Unsecured Loans |
3750.352 |
5324.694 |
1807.992 |
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3] Foreign Currency Monetary Item Translation Diff. A/c |
0.000 |
0.000 |
2997.750 |
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TOTAL BORROWING |
24820.203 |
17963.475 |
14519.507 |
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DEFERRED TAX LIABILITIES |
1584.442 |
910.461 |
585.477 |
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TOTAL |
40975.314 |
27662.860 |
20000.866 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
13800.266 |
10975.627 |
5376.809 |
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Capital work-in-progress |
985.338 |
1034.142 |
1724.651 |
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INVESTMENT |
2852.624 |
1761.371 |
2184.878 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
9082.947
|
6722.194 |
3837.915 |
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Sundry Debtors |
9337.306
|
7241.295 |
4362.525 |
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Cash & Bank Balances |
4661.361
|
1790.875 |
4262.535 |
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Other Current Assets |
48.784
|
27.626 |
21.255 |
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Loans & Advances |
5740.535
|
3497.919 |
1627.559 |
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Total
Current Assets |
28870.933
|
19279.909 |
14111.789 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
4022.000
|
4391.178 |
2791.421 |
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Other Current Liabilities |
1389.016
|
1008.302 |
447.635 |
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Provisions |
128.586
|
98.980 |
158.205 |
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Total
Current Liabilities |
5539.602
|
5498.460 |
3397.261 |
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Net Current Assets |
23331.331
|
13781.449 |
10714.528 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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Foreign Currency Monetary Item Translation Diff. A/c |
5.755 |
110.271 |
0.000 |
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TOTAL |
40975.314 |
27662.860 |
20000.866 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
34154.682 |
23768.991 |
14644.823 |
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Other Income |
250.191 |
622.436 |
347.953 |
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TOTAL (A) |
34404.873 |
24391.427 |
14992.776 |
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Less |
EXPENSES |
|
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|
|
|
|
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Direct Project Expenses |
26222.555 |
18634.000 |
11071.387 |
|
|
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Personnel Expenses |
1004.136 |
666.176 |
394.006 |
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Administrative Expenses |
403.062 |
332.767 |
248.395 |
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|
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TOTAL (B) |
27629.753 |
19632.943 |
11713.788 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6775.120 |
4758.484 |
3278.988 |
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|
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|
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Less |
FINANCIAL
EXPENSES (D) |
2564.182 |
1728.333 |
980.460 |
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|
|
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|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4210.938 |
3030.151 |
2298.528 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
715.127 |
459.421 |
201.223 |
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PROFIT BEFORE
TAX (E-F) (G) |
3495.811 |
2570.730 |
2097.305 |
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|
|
|
|
|
|
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Less |
TAX (I) |
1184.355 |
544.585 |
883.565 |
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PROFIT AFTER TAX
(G-I) (J) |
2311.456 |
2026.145 |
1213.740 |
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|
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Add |
Extraordinary
Items |
482.621 |
-- |
-- |
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|
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|
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|
NET PROFIT FOR
THE YEAR |
2794.077 |
2626.145 |
1213.740 |
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|
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3391.855 |
1676.580 |
839.907 |
|
|
|
|
|
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
72.720 |
57.476 |
46.207 |
|
|
|
Corporate Dividend Tax |
12.359 |
9.768 |
7.853 |
|
|
|
Transfer to General Reserve |
279.000 |
202.600 |
121.500 |
|
|
|
Exchange Difference on FCCBs |
-- |
254.026 |
-- |
|
|
|
Transfer to Debenture Redemption Reserve |
39.000 |
(213.000) |
191.000 |
|
|
|
Dividend and Dividend Tax |
-- |
-- |
10.507 |
|
|
BALANCE CARRIED
TO THE B/S |
5782.853 |
3391.855 |
1676.580 |
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export |
0.000 |
150.216 |
0.000 |
|
|
|
Management Fee |
5.165 |
0.000 |
0.000 |
|
|
|
Other Earnings |
0.000 |
11.755 |
0.000 |
|
|
TOTAL EARNINGS |
5.165 |
161.971 |
0.000 |
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
165.327 |
56.148 |
6.838 |
|
|
|
Stores & Spares |
6.804 |
3.116 |
0.050 |
|
|
|
Capital Goods |
520.352 |
320.817 |
315.556 |
|
|
TOTAL IMPORTS |
692.483 |
380.081 |
322.444 |
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|
Earnings Per
Share (Rs.) |
14.47 |
16.11 |
10.91 |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2010 (Rs. In
Millions) |
30.09.2010 (Rs. In
Millions) |
31.12.2010 (Rs. In
Millions) |
31.03.2011 (Rs. In
Millions) |
|
|
1st
Quarter |
2nd
Quarter |
3rd Quarter |
4th Quarter |
|
Net Sales |
8141.920 |
8101.860 |
10145.840 |
11897.900 |
|
Total Expenditure |
6408.690 |
6305.710 |
8294.680 |
10100.220 |
|
PBIDT (Excl OI) |
1733.230 |
1796.150 |
1851.160 |
1797.680 |
|
Other Income |
47.830 |
49.280 |
131.790 |
201.170 |
|
Operating Profit |
1781.060 |
1845.430 |
1982.950 |
1998.850 |
|
Interest |
691.520 |
735.770 |
872.940 |
886.990 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
1089.540 |
1109.660 |
1110.010 |
1111.860 |
|
Depreciation |
202.910 |
211.090 |
211.580 |
214.530 |
|
Profit Before Tax |
886.620 |
898.570 |
898.430 |
897.340 |
|
Tax |
296.010 |
280.670 |
316.470 |
210.840 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
590.610 |
617.900 |
581.960 |
686.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
00000 |
|
Net Profit |
590.610 |
617.900 |
581.960 |
686.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.72
|
8.31 |
8.09 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.23
|
10.81 |
14.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.19
|
8.50 |
10.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.29 |
0.43 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.08
|
2.67 |
3.66 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.21
|
3.51 |
4.15 |
LOCAL AGENCY FURTHER INFORMATION
Financial Performance
The turnover of the Company for the year ended 31st
March, 2010, reported a sharp increase of 41.05% rising to Rs.34404.873 millions
from Rs. 24391.427 millions in the previous year.
Profit before depreciation and taxation was Rs.
4210.939 millions and after providing Rs. 715.127 millions towards depreciation
and Rs 1184.355 millions towards tax, the net profit amounts to Rs. 2311.457
millions.
Business Performance
Era Infra Engineering is an integrated infrastructure
development company. The Company is primarily engaged in construction
activities of power projects, roads, railways and other infrastructure
projects. It has a strong presence in the construction sector with an
impressive track record.
The Company has completed various projects since
inception for renowned clients like NTPC, PGC, NHPC, RVNL, BHEL, IRWO, NBCC,
PWD, NALCO, RVNL, Airport Authority of India, Delhi Metro Rail Corporation
Limited, Central Public Works Departments to name a few. The company has
received repeat orders from reputed clients like NTPC, Gujarat Ambuja,
Rajasthan Spinning, Birla Tyres, Indian Glycols, National Dairy Development
Board, Bharat Heavy Electrical Limited etc. The key factor that has contributed
to the company's success is in-house technical expertise and strong project
management capabilities, which ensures timely execution of the projects within
budgeted costs and continued emphasis on maintaining quality standards.
The Company is professionally managed with
well-qualified and experienced personnel in all areas including engineering,
finance and administration combined with a full-fledged Enterprise Resource
Planning (ERP) and MIS system. The Company has on its roll over Two thousand
nine hundred one employees, which includes Seven hundred sixty one experienced
and skilled engineers.
The Order Book of Company has increased from approx Rs 72500.000
millions. in 2009 to over Rs. 83950.000 millions as on 31st
March,
2010 across sectors, to be implemented over a period of next two to three
years. All ongoing projects are monitored on a regular basis by the senior
management based at
In tandem with the growth momentum of the earlier years, your
company has strengthen its position in the market by stepping in diversified
segments, in this financial year they are focusing more on the complex projects
with longer duration which will truly portrays the in-built capability of the
company.
|
Project |
Details |
Duration |
|
Steel Authority of India Limited |
Structural work for setting up Basic Oxygen Furnace (BOF) and Continuous Casting Shop at Bhilai Steel Plant, Bhilai, Chhattisgarh. |
24 Months |
|
Steel Authority of India Limited |
Cast in Situ RCC Bored Piling in SMS III Complex at Bhilai Steel Plant ,Chhattisgarh. |
22 Months |
|
Central Public Works Department (CPWD) |
Development of Construction of 140 Nos. Type V and 104 Nos. Type VI flats at pocket-VI, DDU Marg, |
22 Months |
|
Bharat Heavy Electricals Limited |
Piling and Foundations works including Supply of all Materials except those proposed to be supplied by BHEL for 2 X 500 MW units (UNIT 6 and 7) at Anapara-D Thermal Power Plant at Anapara Sonebhadra, UP. |
16 Months |
|
Bharat Heavy Electricals Limited |
Construction of General Civil Works for Plant and Auxiliary Plant Buildings for Unit No. 1 of 2 X 600 MW North Chennai TPS, Athipattu Triuvallur Dist. Chennai. |
20 Months |
|
NTPC- Rail Bijlee Nigam |
"Main Plant, CW, Make-up, Offsite Civil Works Chimney and Chimney Elevator" Package for Nabinagar Thermal Power Plant Project ( 4 X 250 MW) at Nabinagar. |
31 Months |
|
Prasar Bharti |
Construction of Soochna Bhawan, Phase-V at CGO Complex, |
24 Months |
|
NDMC |
Civil, structural finishing and electrical works for new and existing subway in outer circle of Connaught place, |
14 Months |
|
EPC Contract for Muzaffarnagar-Haridwar |
Construction of four lane in the state of UP and Uttarakhand. 80 Km in length with three green fields bypasses. |
30 Months |
|
EPC Contract for Haridwar- Dehradun |
Four laning of Haridwar Dehradun Section in the state of Uttarakhand. 39 Km in length. Also a bridge on Ganga River-Elephant Bridge. |
24 Months |
Presently the company has three strategic divisions which help the
company in maintaining its growth momentum.
Engineering, Procurement and Construction (EPC) Division: This division is
in a growth phase, the order book position has improved considerably over the
years and it has bagged orders from prestigious clients like NTPC, Airport
Authority of India,
BOT and EPC Division: This division predominantly looks after the
procurement and engineering designing part and has bagged orders for expansion
of Haridwar-Dehradun and Haridwar-Muzaffarnagar highway to the stretch of 120
kms. In future they are planning to bag orders for underground Automated Car
Parking, Bus Terminals, Highways, Railways, Airports etc.
Equipment Management and Concrete (EMC) Division: This division has
two verticals: Ready Mix Concrete (RMC) Division and Equipment Management
Division (EMD).
RMC is the concrete delivered at site or into a purchaser's vehicle, in
a plastic condition and requiring no further treatment before being placed in
the position in which it is to set and harden. Major infrastructure and power
projects are most likely to have dedicated batching plants at their site and
will have substantial volume. RMC generally denotes commercial ready mix
concrete and of course real estate will be a major consumer of commercial RMC.
The company in its RMC Division has started six RMC units and expects to
establish 60 units across pan
Equipment
Management Division (EMD): In today's infrastructure development sector the demand
for construction equipments are huge. To tap this huge opportunity and making
efficient use of large equipment base the company has started this division.
The aim of starting this division is to make revenue by using the equipments in
most efficient manner and further to provide the strength to internal
execution.
Today the company is a known name in the field of Infrastructure
projects contributing to the Infrastructure development of modern
Directors
Mr. A.K. Mehta and Mr. Arvind Pande retire by rotation at the
forthcoming Annual General Meeting and being eligible offer themselves for
reappointment.
Mr. Anil Razdan was appointed as an Additional Director of the Company
at the meeting of the Board of Directors held on 31st May, 2010. Mr.
Anil Razdan an Indian Administrative Service Officer of 1973 Batch, he was
Secretary to the Government of
Mr. J.L. Khushu has been re-appointed as the Whole Time Director by the
Board of Directors at its meeting held on 28th June, 2010, for a period of two years w.e.f.
1st October, 2010.
Subsidiary Company
As per Section 212 of the Companies Act, 1956, they are required to
attach the Directors Report, Balance Sheet and Profit and Loss Account of their
thirteen subsidiary companies.
They believe that the Consolidated Financial Statements present a more
comprehensive picture rather than the standalone financial statements. They
therefore applied to the Ministry of Corporate Affairs, Government of India and
sought exemption from the requirement to present detailed financial statements
of each subsidiary. The Ministry of Corporate Affairs, Government of India has
granted exemption vide its letter dated ref N047/522/2010/C-III dated
09/06/2010.
In compliance with the terms of the exemption they have presented
summary financial information for each subsidiary which includes Capital,
Reserves, Total Assets, Total Liabilities, Investment (except in case of
Subsidiaries), Turnover, Profit before taxation, Provision for taxation, Profit
after taxation and Proposed dividend.
As permitted by SEBI guidelines and The Companies Act, 1956, they have
included consolidate financial
statements of the company in this Annual Report. The detailed financial
statements and audit reports of the subsidiaries are available for inspection
at the registered office of the Company and upon written request from a
shareholder, they will arrange to send the full balance sheet, profit and loss
account and auditor's report to the said shareholder.
Overseas Joint Venture
The Company holds minority stake in M/s SPA Group Era
MANAGEMENT
DISCUSSION and ANALYSIS
Infrastructure development is the most crucial factor for
Last twenty years of their journey has been quite enriching for the
company and for all of us. It has been a continuous process of learning and
today they are comfortably placed among their peers with a diversified and
substantial order book. They have grown multifold and have been able to sustain
this growth because of the dedicated and committed efforts of the entire team.
From a small construction company they have matured their selves in a large and
diversified infrastructure organization. They have shown stellar business and
financial performance year-on-year and have forayed into different business
segments of the infrastructure sector.
Economic and Industry Overview
Supported by strong fundamentals and the Central Government's proactive
measures
Central and State Governments are also realizing the need of good
infrastructure. In the next 10-year period, if they take the estimates of the
Union Government,
The construction industry has entered a phase of quantum growth in last
5-10 years. This has been necessitated by the urgency to address the
inadequacies in infrastructure, which has been universally recognized as a
major constraint in the path of economic growth and development. To make the
growth process more inclusive, the 11th Five year Plan indicates a strong focus
on infrastructural investment, social development, agriculture and rural
development. Construction of houses and roads involves about 75% and 60% of
civil construction respectively. Building of airports and ports has
construction activity in the range of 40-50%. For industrial projects,
construction component ranges between 15-20%.
The country's core sector, comprising six key infrastructure industries,
accelerated by 5.5 per cent year on year in April 2010, compared with 3.7 per
cent in April 2009, according to the data released by the Union Ministry of
Commerce and Industry.
Further, investment in the infrastructure sector is expected to be
around US$ 425.2 billion during the Eleventh Five Year Plan (2007-12), as
against US$ 191.3 billion during the Tenth Plan. Meanwhile, private investment
into the sector is also projected to increase to US$ 157.3 billion in the
Eleventh Plan, as compared to US$ 47.84 billion in the Tenth Plan. This
investment is likely to be fulfilled through public-private-partnership (PPP)
projects that are based on long-term concessions.
Clearance has been given to nine new investment proposals of around US$
1.05 billion by the State Level Single Window Clearance Authority (SLSWCA). A
committee on infrastructure under Prime Minister will conduct quarterly review
of development of power, road, ports, civil aviation and railways sectors:
announced the Planning Commission of India recently. Further, the Cabinet
Committee on Infrastructure (CCI) will handle specific infrastructure cases
that may require necessary policy correction or solving issues affecting
projects.
Roads
An in-principal approval for converting 10,000 km of state roads to
national highways has been given by the Empowered Group of Ministers (EGoM). It
is estimated that around US$ 3.3 billion would be required over the next five
years to undertake this project.
Further, the Cabinet Committee on Infrastructure (CCI) has approved four
highway projects of about US$ 543.8 million on June 10, 2010. These projects
would cover states such as Gujarat, West Bengal,
Railways
Railways play an important role in the overall development of country's
economy and various proposals are made in this regard in the budget for
2010-11. The Railways has taken following initiative to do the overall
development of various businesses:
• Extension of Kolkata
Metro.
• Railway line to be
extended from Bilaspur in Himachal Pradesh to Leh in
• Andaman and
• Gangtok to be connected
by rail from Rangpo.
• Thrust on expansion in
2010-11 with allocation of Rs.4,4110.000 millions.
• 10 automobile ancillary
hubs to be created.
• North-south, east-west
dedicated freight corridors to be created.
• Construction of
high-speed passenger rail corridors envisaged.
• Construction of more
underpasses, besides road over bridges.
• Upgrade of 94 stations.
• Besides various proposals
had been made in the 2009 railway budget for creating better rail
infrastructure.
• Freight business: Blue
print prepared for High Density Network: phased execution of capacity augmentation
including dedicated freight corridors, doubling third and fourth lines
bypasses, flyovers, automatic signaling works etc. over 7 years at least of
about Rs. 750000.000 millions.
• Dedicated freight
corridor: A 2,700 Km - long railway line project at an investment of more than
Rs. 280000.000 millions which consists of 1,232 Km long Eastern Corridor (from
Ludhiana to Sonnagar) in Phase-I and 1,469-Km- long Western Corridor from
Jawahar Lal Port area (Mumbai to Dadri/Tuglakabad) in Phase II.
Allocation for railways increased from Rs.158000.000 millions in B.E.
2009-10 to Rs.167520.000 millions in B.E. 2010-11. Foreign investors are also
increasingly getting attracted in the railway sector and are making substantial
investments. According to the Department of Industrial Policy and Promotion
(DIPP), the Foreign Direct Investment (FDI) inflow into railways related components has been US$
109.56 million from April 2000 to March 2010.
Airports
The domestic airlines flew about 4.78 million passengers in May 2010, an
increase of almost 22 per cent over the number carried in the same period in
the previous year. The Union Minister of State for Civil Aviation stated that
the country will become the top five civil aviation markets in the world in the
next five years.
The Airports Authority of India (AAI), the agency responsible for civil
aviation infrastructure, is likely to spend over US$ 1.01 billion on the
modernization of non-metro airports in the current year. Aircraft manufacturing
companies, Boeing and Airbus, remain upbeat over
A new terminal (terminal three) will be inaugurated in July at
about US$ 2.7 billion. The terminal, spread over 5.4 million square
feet, has 78 gates, 97 automated walkways, 95 immigration counters, 20,000
square meters (215,000 square feet) of retail space and parking for 4,300 cars.
The facility begins handling international flights and will boost the airport's
capacity to 60 million passengers a year.
Power
The Eleventh Plan target for additional power generation capacity of
78,577 MW which is more than the total capacity added in the previous three
plans.
Ultra Mega Power Project (UMPP) at Chattisgarh, Karnataka,
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) to be continued during
the Eleventh Plan with a capital subsidy of Rs. 280000.000 millions. Plan
allocation for power sector excluding RGGVY doubled from Rs.22300.000 millions
in 2009-10 to Rs.51300.000 millions In
2010-11.
As per CII A T Kearney Study, Investments of about US$ 250 billion will
need to be made in the power sector in the next 8-9 years to fuel planned
growth. The demand for power is expected to grow at a steady rate of 7.5-8% annually
till 2017, leading to the addition 80,000-85,000 MW of new capacity.
The wind energy segment would continue to grow at 15-20% per annum with
new opportunities in offshore capacities and large capacity turbines. The Power
Ministry has set a target to add 78,700 MW of electricity generation capacity
during the current five year plan. Currently,
Recent Government Policy initiatives:
• Emphasis on Biomass.
• Wind power potential -
success story for rapid development. More than 3800 MW added in the last four
years.
• At over 5500 MW, Wind
capacity 4th largest in the world.
• Development of Mini and
Micro hydro electric projects.
• Solar power needs
intensive R and D for cost reduction. Extensive development of solar dependent
on CDM benefits to offset present high cost.
* Nuclear power presently 3,900 MW. Share of
nuclear power to be enhanced. No CO2 emissions.
• Mastery in fuel cycle and
technology.
• Fuel Constraint.
• Rapid increase in share
of nuclear power, depending on International Cooperation
Urban Infrastructure
With almost 300 million Indians living in urban areas, the country has
the second largest urban population in the world. It comprises about 30% of the
total population and contributes to over 60% of the country's GDP. Essential
Infrastructure facilities need to be provided to this growing urban population.
• The country has over 3,700 towns and cities. The urban population of the
country has been growing at a rapid pace of over 31% over the last decade. This
is significantly higher than the growth of the rural population (approximately
18 %).
• Employment in urban areas registered a growth of around 38% (over the
last decade), substantially exceeding the rural employment growth rate of
around 16%.
• A large number of Indian cities and towns need adequate infrastructure
facilities, specifically in the areas of water management, roads,
transportation, housing, sanitation, sewage etc.
• The government has initiated a number of steps to improve the physical
and economic infrastructure and improve facilities in urban areas. In addition
to the basic infrastructure projects, a number of urban transportation projects
have also been taken forward, e.g. metro rails. In Union Budget 2010-11,
allocation for urban development increased by more than 75 per cent from
Rs.30600.000 millions to Rs.54000.000 millions Rs.12700.000 millions has been
allocated for Rajiv Awas Yojana as compared to Rs.1500.000 millions last year.
Government Initiatives
The Infrastructure Finance Companies (IFC) are being included in the
category of Non-Banking Finance Company (NBFC) by the Reserve Bank of India
(RBI). The IFCs would require a capital adequacy ratio of 15 per cent and the
similar criteria of NBFCs would be applied to IFCs as well. Further, RBI stated
that at least 75 per cent of the assets of these institutions should be used in
infrastructure and their net owned funds should be US$ 64.6 million or more.
While presenting the Union Budget this year, the Finance Minister has announced
the allocation of US$ 37.7 billion, around 46 per cent of the total plan outlay
of US$ 81 billion for 2010-11 to infrastructure sectors. In the last fiscal,
this proportion was about 30 per cent.
The Government of India has envisaged capacity addition of 100,000 MW by
2012 to meet its mission of power to all. Recently, a ministerial group
discussing large power plants with a capacity to generate 4,000 MW of power has
approved, in principle, a proviso requiring such plants that will be awarded in
the future to use local power generation equipment. The move is expected to
provide a fillip to domestic manufacturing. The decision on so-called ultra
mega power plants, or UMPPs, will also benefit domestic power generation
equipment manufacturers such as state-owned Bharat Heavy Electricals Limited
(BHEL) and Larsen and Toubro Limited (LandT), which has a joint venture with
Mitsubishi Heavy Industries Limited (MHI) of
Further, the government is also implementing the National Solar Mission,
aimed at setting up 20,000 MW of solar power capacity by 2020.
The Asian Development Bank (ADB) has approved a financial assistance for
US$ 200 million under the Assam Power Sector Enhancement Investment Programme.
The project has some innovative features like franchisee-based distribution,
off-grid electrification with renewable energy, reduction in CHG emissions
through efficiency gains.
The Road Transport and Highways Ministry has proposed priority sector
status for road development, allowing private highway developers more funds
from banks.
Era Infra Engineering Limited - Engineering, Procurement and
Construction (EPC) Division
The surge in construction activity has led to exponential growth in
infrastructure development across the country. This has naturally resulted in
an increase in demand in construction activities, raising the potential bar
manifold, which in turn has enabled the EPC Division of the company to foray
into some of the most lucrative and growing segments of the infrastructure
space. This division executes infrastructure development contracts across the
spectrum for both external customers as well as for captive consumption.
EPC - Future Strategy
This Division is now looking at diversifying further by addressing
projects across newer infrastructure segments such as refineries,
hydroelectricity, irrigation and ports, multilevel car parking, which are
considered to be among the fastest growing segments of the Indian
Infrastructure Industry. The EPC Division shall continue to consolidate its
presence in the existing sectors through execution of more large-sized projects
and by entering into more strategic alliances to further enhance its
pre-qualification strengths.
Era Infra Engineering Limited - BOT and EPC Division
Encouraged by the success of private participation in the infrastructure
development space, the government expects a substantial increase in the share of
private sector investments in infrastructure - from 19% of total in the 10th
plan to around 30% of the total in the 11th plan. The government, on its part,
has made an effort to facilitate the entry of private enterprise in
infrastructure development through changes in the legal framework and through
unbundling of different segments of infrastructure, so that the public and the
private sectors can take up the components most suited to their capacities.
Overview
The company's BOT and EPC Division chose to focus on the fast-growing
highways, railways, power, bus terminals, underground parking, airports and
other infrastructure development projects. This Division is focused on
Engineering (basic and detailed), Procurement (of man, material and machinery)
and Construction (execution of works contracts).
BOT and EPC - Future Strategy
To become a large and diversified infrastructure company it was felt
necessary to add in their portfolio long term assets which will not only give a
constant cash flow to the company but will also stabilize and balance their
business dynamics. Today they have many large BOT road projects which will be
completed over the next couple of years. Apart from road BOT projects, they are
now looking at other new arenas like automated parking lots, large-scale
housing projects, railway freight corridor projects, hydropower, regional
airports, ports, bus terminals, among others. To take their plans forward, they
have formal strategic alliances with foreign players from
Era Infra Engineering Limited - Equipment Management and Concrete (EMC)
Division
Equipment Management
Gauging the critical role of contemporary equipment in facilitating
excellent project execution, Era Equipment Management seeks to address the ever
growing demand for procurement, operations and maintenance and rentals of
construction equipment. The Division caters to the demand for high-end
machinery for both captive consumption and external clients through regional
equipment hubs under the style and name of Era Machine Mart.
Overview
Prudently leveraging the expertise and experience of its parent company,
this Division has successfully forayed into the southern, eastern and western
regions of
Future Strategy
Strong upturn in Industrial and Infrastructure capital expenditure will
continue to create demand-supply gap for modern equipment and maintenance
services, which will benefit the Division. To exploit this opportunity they
would make further investments in this division. They plan to invest more than
Rs.5000.000 millions in this division over the next two financial years to
strengthen their equipment bank.
Ready Mix Concrete (RMC) Division
To keep pace with the growth in construction activities across the
country, there is a growing need for timely delivery of quality Ready Mix
Concrete within easy reach of the construction sites. Era Infra has set up its
RMC Division to meet this increasing demand and is focused on commercial sale
of RMC.
Overview
Era RMCs development plan has kick-started on a strong note and the division
is currently operating with six commercial plants as on the date of this
report:
Future Strategy
This division is looking for more and more complex projects and with its
six plants in operation they are all set for an excellent growth. In future
they are planning to open 60 more units on pan
Unaudited Financial Results for the Quarter Ended 31.12.2010
Rs.in millions
|
Particulars |
Quarter Ended 31.12.2010 |
Nine months Ended 31.12.2010 |
|
Net Sales / Income From
Operations |
10145.844 |
26389.620 |
|
Total Expenditure |
|
|
|
a) Direct Expenses |
7830.937 |
19608.076 |
|
b) Employees Cost |
317.685 |
938.695 |
|
c) Depreciation |
211.585 |
625.592 |
|
d) Other Expenditure |
146.050 |
462.296 |
|
Total |
8506.257 |
21634.659 |
|
Profit from Operations
before Other Income, Interest (1-2) |
1639.587 |
4754.961 |
|
Other Income |
131.785 |
228.892 |
|
Profit before Interest
&Tax (3+4) |
1771.373 |
4983.852 |
|
Financial Expenses |
872.936 |
2300.224 |
|
Profit after interest
before tax (5-6) |
898.437 |
2683.628 |
|
Tax Expenses |
316.475 |
893.156 |
|
Net Profit from Ordinary
Activities after tax (7-B) |
581.962 |
1790.472 |
|
Extraordinary Item (Net) |
0.000 |
0.000 |
|
Net Profit After
Extraordinary Item {9-10) |
581.962 |
1790.472 |
|
Earning Per Share (Not
Annualised) (?) a) Before
Extraordinary items |
|
|
|
Basic |
3.22 |
9.90 |
|
Diluted |
3.17 |
9.76 |
|
b) After Extraordinary items |
|
|
|
Basic |
3.22 |
9.90 |
|
Diluted |
3.17 |
9.76 |
|
Aggregate of Public
Shareholding |
|
|
|
- No. of Equity Shares of
X2I- Each |
74696347 |
74696347 |
|
- Percentage of
Shareholding |
41.08 |
41.08 |
|
Aggregate of Promoters
and Promoter Group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
-No. of Equity Shares of X2I- Each |
83423717 |
83423717 |
|
- % of Shares the total
Shareholding of promoter/ promoter group |
77.87 |
77.87 |
|
- % of Shareholding on total
share capital of the company |
45.88 |
45.88 |
|
b) Non-encumbered |
|
|
|
-No. of Equity Shares of XII- Each |
23707576 |
23707576 |
|
- % of Shareholding of
promoter and promoter group |
22.13 |
22.13 |
|
- % of Shareholding on total
share capital of the company |
13.04 |
13.04 |
Unaudited Segment wise Results for the Quarter Ended 31.12.2010
Rs.in millions
|
Particulars |
Quarter Ended 31.12.2010 |
Nine months Ended 31.12.2010 |
|
Segment Revenue |
|
|
|
-
Contracts |
9328.898 |
24667.460 |
|
- Energy |
7.679 |
42.368 |
|
-
Equipment Hiring |
538.513 |
1534.036 |
|
-Ready
Mix Concrete |
70.722 |
303.067 |
|
-Trading |
369.651 |
369.651 |
|
Gross
Sales |
10315.464 |
26916.583 |
|
Less:
Inter Segment |
169.620 |
526.963 |
|
Net
Sales |
10145.844 |
26389.620 |
|
Segment
Results Profit Before Tax and Interest |
|
|
|
-Contracts |
1158.269 |
3456.050 |
|
- Energy |
(4.067) |
12.042 |
|
-
Equipment Hiring |
377.662 |
1043.609 |
|
-Ready
Mix Concrete |
0.851 |
10.319 |
|
-Trading |
10.571 |
10.571 |
|
Total |
1543.286 |
4532.591 |
|
Less: i)
Interest |
776.634 |
2072.100 |
|
ii)
Other Un-allocable Expenditure net off |
0.000 |
5.755 |
|
iii)
Un-allocable income |
(131.785) |
(228.892) |
|
Profit
Before Tax |
898.437 |
2683.628 |
|
Capital
Employed |
|
|
|
-Contracts |
30305.046 |
30205.046 |
|
- Energy |
409.641 |
409.641 |
|
-
Equipment Hiring |
10044.112 |
10044.112 |
|
- Ready
Mix Concrete |
133.609 |
133.609 |
|
-Others |
5361.125 |
5361.125 |
|
Total |
46153.531 |
46153.531 |
Notes:
1. The above unaudited results were
reviewed by Audit Committee and approved by the Board of Directors at its
meeting held on 14.02.2011, same has been subjected to "Limited Review" by the Statutory
Auditors of the Company.
2. Investor complaints outstanding at
the beginning of the quarter were nil, four complaints were and resolved during
the quarter ended 31.12.2010. Outstanding number of com plaints at the end of the
quarter was nil,
3 a. The segment reporting is in accordance with
the Accounting Standard 17,
b. The Primary Business segments of the company
mainly comprise of Contracts, Energy, Equipment Hiring, Ready Mix Concrete and
Trading.
4. As per clause 41 of the listing
agreement with the Stock Exchange, the company has opted to publish standalone
financial results.
5. The figures for the previous period
have been regrouped/rearranged wherever necessary to make them comparable.
CONTINGENT LIABILITIES
not provided for :
i) In respect of guarantees and letter of credits issued by Banks, outstanding as at 31st March, 2010 Rs.3025.621
Millions net of margin (P.Y. Rs. 36 23.043 Millions net of margin).
ii) In respect of Sales Tax and Entry Tax Rs. 7.142 Millions (P.Y. Rs. 7.220 Millions). The demand is being contested before appellate authorities.
iii) The Company has received show cause notices in respect of Royalty amounting to Rs. 27.184 Millions (P.Y. Rs. 25.729 Millions). Appropriate representation is being submitted to respective offices.
iv) The Company has received show cause notices in respect of Service Tax amounting to Rs. 374.525 Millions (P.Y. Rs. 361.666 Millions). Appropriate representations have been submitted to respective offices.
v) The Company has received show cause notices in respect of Custom Duty amounting to Rs. 22.104 Millions (P.Y. Rs. 7.799 Millions). Appropriate representations have been submitted to respective offices.
vi) In respect of other legal cases Rs. 27.250 Millions (P.Y. Rs. 21.344 Millions). Appropriate representations have been filed in respect of these matters with the authorities concerned.
vii) In respect of Labor Welfare Cess Rs. 8.561 Millions (P.Y. Rs. 8.561 Millions). Writ petition has been filed before Hon'ble Supreme Court.
viii) The Company has given Corporate Guarantees amounting to Rs. 9434.600 Millions (P.Y. Rs. 9389.600 Millions) in favor of banks for loans taken by Subsidiary / Associate Companies including Corporate Guarantees amounting to Rs 4840.000 Millions (P.Y. 48,40.000 Millions) for meeting the shortfall in repayment of the loan amount in the event of termination of the Concession Agreement.
FIXED ASSETS :
- Land
- Plant and
Machinery
- Tractor /
Trucks
- Furniture and
Fixtures
- Computer
- Office
Equipments
- Electrical
Installations
- Vehicles
- Data Processing Machine
- Wing Turbine Generator
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.45.03 |
|
|
1 |
Rs.74.43 |
|
Euro |
1 |
Rs.64.75 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
61 |
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.