MIRA
INFORM REPORT
|
Report Date : |
01.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
PRATIBHA INDUSTRIES LIMITED |
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Registered Office : |
Shrikant
Chambers, Phase II, 5th Floor, Sion-Trombay Road, Next to R.K.
Studio, Chembur, Mumbai – 400 071, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
19.07.1995 |
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Com. Reg. No.: |
11-090760 |
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Capital Investment / Paid-up Capital : |
Rs.166.850 Millions |
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CIN No.: [Company
Identification No.] |
L45200MH1995PLC090760 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP08929E |
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Legal Form : |
It is a Public Limited Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Building and Construction Manufacturing of SAW Pipes. |
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No. of Employees : |
700 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 11015000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct 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.
INFORMATION DECLINED BY
|
Name : |
Mr. Mahendra |
|
Designation : |
Accountant |
|
Date : |
30.05.2011 |
LOCATIONS
|
Registered Office : |
Shrikant
Chambers, Phase II, 5th Floor, Sion-Trombay Road, Next to R.K.
Studio, Chembur, Mumbai – 400 071, Maharashtra , India |
|
Tel. No.: |
91-22-66414499/
39559999/ 66414499 |
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Fax No.: |
91-22-25201135 |
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E-Mail : |
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Website : |
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Head Office : |
13th
and 14th Floor, P.L. Lokhande Marg, Ghatkopar Mankhurd Link Road, Opp.
RBK International School, Govandi, Mumbai – 400043, Maharashtra, India |
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Tel. No. : |
91-22-39559999 |
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Correspondence Address : |
101, Usha Kamal,
574, Chembur Naka, Chembur, Mumbai – 400 071, |
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Tel. No.: |
91-22-66414499/ 66414455/ 39559999 |
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Fax No.: |
91-22-25201135/ 66414400 |
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E-Mail : |
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Corporate Office : |
1249, Krishna Garh, Vsant Kunj, |
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Factory : |
Plot No. 215, Vijaypur, P.O. Kone, Bhiwandi-Wada Road, Taluka Wada,
District Thane - 421 303, Maharashtra, India |
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Branch Office 1 : |
1249/9, Aruna Asif Ali Marg, Basant Kunj, |
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Branch Office 2 : |
Shop No. 101, 101A, House No. 3-6-521, Himayath Nagar, |
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Branch Office 3 : |
B-85, Bhisma Pitamah Marg, Defence Colony, |
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Tel No.: |
91-11-26521385 |
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Fax No.: |
91-11-26532903 |
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Email : |
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Branch Office 4 : |
Plot No.329, Shiv Complex, Ground Floor, Sector – 16, Gandhinagar –
382 016, |
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Tel No.: |
91-79-23246415 |
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Fax No.: |
9525 26220559 |
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Email : |
DIRECTORS
As on 31.03.2010
|
Name : |
Mrs. Usha B. Kulkarni |
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Designation : |
Chairperson |
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Name : |
Mr. Ajit B. Kulkarni |
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Designation : |
Managing Director |
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Name : |
Mr. Vinayak B. Kulkarni |
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Designation : |
Whole time
Director |
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Name : |
Mr. Rohit Katyal |
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Designation : |
Whole Time Director (w.e.f. 24th September, 2009) |
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|
Name : |
Mr. Ramakant Jha |
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Designation : |
Independent Director (upto 7th May, 2010) |
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Name : |
Dr. S. L. Dhingra |
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Designation : |
Independent Director (w.e.f. 24th September, 2009) |
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Name : |
Mr. V Sivakumaran |
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Designation : |
Independent Director (w.e.f. 24th September, 2009) |
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Name : |
Mr. Vilas Parulekar |
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Designation : |
Independent Director (w.e.f. 24th September, 2009) |
KEY EXECUTIVES
|
Name : |
Mr.
Pankaj S. Chourasia |
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Designation : |
Company
Secretary |
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|
Name : |
Mr. Rohit Katyal |
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Designation : |
Chief
Operating Officer |
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Name : |
Mr. Rahul Katyal |
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Designation : |
Group
Director and Chief Marketing Officer |
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Name : |
Mr. T. R. Radhakrishnan |
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Designation : |
Chief
Financial Officer |
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Name : |
Mr. A. K. Wadhera |
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Designation : |
Chief
Operating Officer |
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Name : |
Mr. A. K. Palit |
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Designation : |
Head
[T and E] |
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Name : |
Mr. S. P. Deshpande |
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Designation : |
Head
[C and M] |
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Name : |
Mr. Sanjay Kulkarni |
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Designation : |
General
Manager |
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Name : |
Mr. Bhandarkar |
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Designation : |
Dy.
General Manager |
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Name : |
Mr. K. V. Panicker |
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Designation : |
Asst.
General Manager |
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Name : |
Mr. Dinesh Kumar |
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Designation : |
Asst.
General Manager |
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Name : |
Mr. Pankaj Choursiya |
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Designation : |
Company
Secretary |
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Name : |
Mr. R. C. Chaturvedi |
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Designation : |
In-charge
–Operations |
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Name : |
Mr. Dinesh Gomat |
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Designation : |
Dy.
General Manager |
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Name : |
Mr. Jai Shanker Prasad |
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Designation : |
Asst. General
Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of
Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
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|
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|
51,959,250 |
52.26 |
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|
51,959,250 |
52.26 |
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Total shareholding
of Promoter and Promoter Group (A) |
51,959,250 |
52.26 |
|
(B) Public
Shareholding |
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|
|
|
|
|
|
5,340,362 |
5.37 |
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|
6,680 |
0.01 |
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|
18,018,380 |
18.12 |
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|
- |
- |
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|
23,365,422 |
23.50 |
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|
6,541,167 |
6.58 |
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|
9,295,787 |
9.35 |
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3,395,695 |
3.42 |
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4,867,636 |
4.90 |
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|
299,435 |
0.30 |
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|
17,510 |
0.02 |
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|
746,343 |
0.75 |
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|
3,804,348 |
3.83 |
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|
24,100,285 |
24.24 |
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Total Public
shareholding (B) |
47,465,707 |
47.74 |
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Total (A)+(B) |
99,424,957 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
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|
- |
- |
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- |
- |
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|
- |
- |
|
Total
(A)+(B)+(C) |
99,424,957 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Building and Construction Manufacturing of SAW Pipes. |
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity (Qty.
in ‘000) |
Actual
Production (Qty.
in ‘000) |
|
M S Pipe |
MT |
90.00 |
42.47 |
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GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
700 (Approximately) |
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Bankers : |
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Facilities : |
Note: a. Secured by
mortgage / hypothecation of specific assets / vehicle purchased. b. Secured
against (a) Infrastructure Division - (i) first charge by hypothecation of current
assets (other than those specifically charged to other banks), namely stock
of raw materials, work-in-progress and receivables, (ii) first charge on the
gross block (other than those specifically charged to other banks) and (iii)
personal guarantees of Promoter-Directors of the Company; (b) SAW Pipe
Division - (i) first charge by hypothecation of current assets of SAW Pipe
Division, namely stock of raw materials, work-in-progress and receivables,
(ii) second charge on the gross block of SAW Pipe Division (other than those
specifically charged to other banks) and (iii) personal guarantees of
Promoter-Directors of the Company. c. Project -
Specific Finance represent (i) Cash credit facility availed against project -
specific current assets for executing "Lakshmi Nagar and Dwarka"
Water Pipeline Project of DJB, New Delhi (ii) cash credit facility availed
against project - specific current assets for executing "Mauda Supar
Thermal Power Project" of NTPC (iii) cash credit facility availed
against project-specific current assets for executing "Multi level car
parking at New Friends Colony, Kalkaji and Jangpura," of Municipal
Corporation of Delhi (iv) cash credit facility availed against
project-specific current assets for executing Water Supply Network in NMMC
area under JNNRUM of NMMC. (v) Project Specific finance availed against
Securitization of future receivable of "Tansa Project" (vi) Project
Specific finance availed against Securitization of receivable of "NMMC
Project". Above facilities are further secured by personal guarantee of
Promoters-Directors. d. Term Loan
represents credit availed for purchase of capital equipments for SAW Pipe
Division secured by (i) hypothecation of movable assets (excluding current
assets) and mortgage of immovable assets of SAW Pipe Division and (ii)
personal guarantee of promoters - Directors of the Company.
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Banking
Relations : |
-- |
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Statutory Auditors : |
Jayesh Sanghrajka and Company Chartered Accountants |
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Internal Auditors : |
Chokshi and Chokshi Chartered Accountants |
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Subsidiary Companies : |
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Associate Companies : |
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Joint Ventures :
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16685000 |
Equity Shares |
Rs.10/- each |
Rs.166.850 Millions |
|
|
|
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|
(Of the above 8000000 shares have been issued as bonus
shares as on 21.06.2005 being issued for consideration other than cash)
(2400000 shares have been issued to two SEBI registered Qualified
Institutional Buyers on 19.12.2007)
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 |
166.850 |
166.850 |
166.850 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2586.919 |
2080.354 |
1672.119 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2753.769 |
2247.204 |
1838.969 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2930.037 |
2053.810 |
1274.567 |
|
|
2] Unsecured Loans |
1300.000 |
300.000 |
43.640 |
|
|
TOTAL BORROWING |
4230.037 |
2353.810 |
1318.207 |
|
|
DEFERRED TAX
LIABILITIES |
131.104 |
61.701 |
17.811 |
|
|
|
|
|
|
|
|
TOTAL |
7114.910 |
4662.715 |
3174.987 |
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2688.571 |
1455.054 |
908.494 |
|
|
Capital work-in-progress |
113.657 |
491.113 |
315.244 |
|
|
|
|
|
|
|
|
INVESTMENT |
136.223 |
148.432 |
1035.144 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2938.638 |
1761.900 |
1560.384 |
|
|
Sundry Debtors |
1858.704 |
1274.425 |
711.492 |
|
|
Cash & Bank Balances |
617.044 |
692.226 |
460.366 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans, Advances & Deposits |
2546.122 |
1312.346 |
830.974 |
|
Total Current
Assets |
7960.508 |
5040.897 |
3563.216 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1917.577 |
1456.830 |
|
|
|
Other Liabilities and Provision |
434.189 |
244.869 |
|
|
|
Advance and Deposits |
1432.283 |
771.082 |
980.341 |
|
Total Current
Liabilities |
3784.049 |
2472.781 |
2647.111 |
|
|
Net Current Assets |
4176.459 |
2568.116 |
916.105 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7114.910 |
4662.715 |
3174.987 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales and Other Incomes from Operations |
9298.305 |
7462.499 |
4759.011 |
|
|
|
Other Income |
50.754 |
115.273 |
37.016 |
|
|
|
TOTAL (A) |
9349.059 |
7577.772 |
4796.027 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Work Done |
6554.238 |
5789.133 |
3675.821 |
|
|
|
Personnel Expenses |
459.319 |
305.241 |
159.311 |
|
|
|
Administrative, Selling and Other |
969.338 |
556.275 |
327.060 |
|
|
|
TOTAL (B) |
7982.895 |
6650.649 |
4162.192 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1366.164 |
927.123 |
633.835 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
493.102 |
317.700 |
199.570 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
873.062 |
609.423 |
434.265 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
108.592 |
59.010 |
34.753 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
764.470 |
550.413 |
399.512 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
199.343 |
103.137 |
56.906 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
565.127 |
447.276 |
342.606 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
0.000 |
0.000 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
50.055 |
33.370 |
NA |
|
|
|
Corporate Dividend Tax |
8.507 |
5.671 |
NA |
|
|
|
General Reserve |
57.000 |
35.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
449.565 |
373.235 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
11.015 |
42.328 |
0.000 |
|
|
TOTAL EARNINGS |
11.015 |
42.328 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5.530 |
0.000 |
4.562 |
|
|
|
Consumables Stores |
85.324 |
7.281 |
5.024 |
|
|
|
Capital Goods |
2.938 |
14.078 |
281.925 |
|
|
TOTAL IMPORTS |
93.792 |
21.359 |
291.511 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
33.87 |
26.81 |
22.88 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st Quarter) |
30.09.2010 (2nd Quarter) |
31.12.2010 (3rd Quarter) |
31.03.2011 (4th Quarter) |
|
Net Sales |
3064.850 |
2457.160 |
2752.540 |
3481.840 |
|
Total Expenditure |
2663.530 |
2086.200 |
2330.590 |
2999.980 |
|
PBIDT (Excl OI) |
401.320 |
370.960 |
421.950 |
481.860 |
|
Other Income |
0.980 |
0.000 |
0.000 |
42.180 |
|
Operating Profit |
402.300 |
370.960 |
421.950 |
524.040 |
|
Interest |
150.180 |
144.060 |
194.960 |
128.520 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
252.120 |
226.900 |
226.990 |
395.520 |
|
Depreciation |
33.700 |
35.900 |
36.820 |
36.970 |
|
Profit Before Tax |
218.420 |
191.000 |
190.170 |
358.550 |
|
Tax |
55.950 |
54.910 |
48.500 |
84.450 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
162.470 |
136.090 |
141.670 |
274.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
162.470 |
136.090 |
141.670 |
274.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
6.04 |
5.90 |
7.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.22 |
7.38 |
8.39 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.18 |
8.47 |
8.93 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28 |
0.24 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.91 |
2.15 |
2.16 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.10 |
2.04 |
1.35 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Creditors under Letter of credit |
520.915 |
552.108 |
NA |
|
Creditors under Purchase Bill Discounting |
537.555 |
147.986 |
NA |
|
Other Sundry Creditors |
859.107 |
756.736 |
NA |
HISTORY:
Subject was incorporated as a public limited company on July 19, 1995. The
Company obtained Certificate of Commencement of Business on July 19, 1995. The
Company was promoted by Mr. Ajit B. Kulkarni who has very vast experience in
the construction industry. The Company has taken over the existing running
business of M/s Pratibha Industries, a registered partnership firm in the year
1999-2000 Pratibha is a medium sized ISO 9001:2000 certified company engaged in
the business of infrastructure development with focus on water supply,
sewerage, road construction, mass housing including commercial public utilities
like railway station complexes, EPC contracts for oil and gas transmission and
pre-cast design cum construction. The Company has been awarded more than 50
projects in last 7 years. The Company has executed various projects for clients
like Brihanmumbai Municipal Corporation (BMC), Maharashtra Jeevan Pradhikaran,
Maharashtra Industrial Development Corporation (MIDC), City and Industrial
Development Corporation (CIDCO), Delhi Jal Board, Akola Municipal Corporation,
Pune Municipal Corporation (PMC), Army Housing Welfare Organisation, Indian
Railway Welfare Organisation, National Thermal Power Corporation Limited
(NTPC), Public Work Department - Government of Maharashtra, Karnataka Urban
Water Supply and drainage Board, Gujarat Water Supply and Sewerage Board,
Maharashtra State Road Development Corporation (MSRDC), Maharashtra
Metropolitan Region Development Authority (MMRDA), to name a few. Their Company
is professionally managed by well qualified and experienced personnel in all
areas including engineering, tendering and estimation, execution and
monitoring, finance, administration and human resource. During 2005-06, many
major projects such as R R Water Supply Scheme for 84 Villages in Akot and
Telhara Tahsil of Akola District, Construction of Railway Offices, finishes to
Concourses, subways, forecourt development, electrical work services,
landscaping etc at Ghansoli Railway Station complex, Navi mumbai, providing and
laying 3000 mm internal diameter M S Rising Main from Amne Bridge to amnepada
and from Wakipada to proposed pumping station at Panjrapur and 2400 mm internal
diameter M S injection main from existing dome on Additional Arum and
connecting the same to M-II and M-III outlet of M B R Yewal including cement
mortar lining from inside and allied works and Design and Build clear water
transmission main for filling strorage reservoirs in South Delhi for Delhi Jal
Board were successfully completed. During the same period the company came out
with an Initial Public Offer of Rs.42,85,000 equity shares through 100% Book
Building on February 16, 2006 and the offer closed on February 22, 2006 During
2006-07,To enlarge and to diversify the activity of the company, the company
has ventured into a completely new segment viz building and modernisation of
Airports. In this segment, the company has already secured two prestigous
Airports viz
PERFORMANCE REVIEW:
The company has
continued its spree of achieving and exhibiting robust and excellent
performance. Being the fastest growing company in"-
As briefed, the
order book position of the company has also seen a phenomenal growth. The order
book has surged to a record level and crossed the land mark of Rs.40000.000 millions.
The company is very confident and bullish on getting few more big size orders,
which will have substantial positive impact on the working, profitability and
standing of the company in the industry. The execution period of these orders
ranges from one to four years. The decision of the company to diversify into
different sub-segments has yielded positive results and the company is getting
awarded regularly- various projects in the construction division. The continued
growth and swelling order book crystallise company's strength and understanding
of the market and its core area of operations.
Traditionally, the
water segment plays an important and crucial role in the performance of the
company and contributes substantially towards the turnover and profitability of
the company. It constitutes approximately 60-70 % of total turnover of the
company; the order book is also consists major projects from the water segment.
The company is eyeing rigorously in different fields to spread its wing in
other area of infrastructure development to enhance its presence. Accordingly,
the dependability of the company on water segment as percentage to total order
book and sales revenue is 'decreasing. Though the company is continuously
maintaining its edge in this niche area. In addition to water projects, various
roads, tunnelling, airports, urban infrastructure etc. are also contributing
towards the encouraging performance of the company.
In a conscious
deviation move, the company is exploring various options to enlarge the base of
activities. Accordingly in recent past, the company has aggressively and
consciously ventured into relatively new segments viz. building and
modernisation of airports, tunnelling, construction of high rises, shopping
malls, urban infrastructure etc. In pursuit of this, the Company has recently
executed and completed two major airport projects viz.,
SAP IMPLEMENTATION
During the year,
the Company has partially implemented SAP system w.e.f. 16th April, 201 0 which
results in the better transparency, accountability and reliability of
information and accounting system of the Company.
AWARD/CERTIFICATION
The company, during
the financial year, has received an award from Construction World for -.being
No.1 Fastest Growing Infrastructure Company in Medium
category. This crystallizes company's commitment to growth.
Further recently,
the Company has received prestigious award from CNBC - Infrastructure Excellence Awards -2010 under Urban
Infrastructure category for 24 x 7 NMMC Water Supply scheme project .competed
by the Company. The Company has also been short listed under Airport category
for.
MANAGEMENT DISCUSSION AND ANALYSES
Industry Structure
- General
How strong is the
infrastructure sector in
The government
also has been focusing on .infrastructure spending heavily and the last five
years has been worthwhile in this regard. In this context, the infrastructure
companies in
The total
investment in infrastructure in 2006—07 was estimated to be around 5%'of GDR
From a macro-economic perspective and taking account of investment in
infrastructure in other relatively fast growing countries, it can be argued
that the .gross capital formation (GCF) in infrastructure should rise as a
share of GDP from 5% in 2006-07 to 9% by the end of the Plan period.
As per the
estimates of-the Planning Commission, the aggregate capital formation in
infrastructure required to achieve India's targeted annual average growth in
GDP of 9% over the Eleventh Plan period, would have to rise from Rs.2598390.000
millions in 2007- 08 to Rs.5740960.000 millions in 2011-12 at constant 2006-07
price. Over the Eleventh Plan period, as a whole, this estimate aggregates to
Rs.20115210.000 millions or US$ 502188 billion (at an exchange rate of Rs
40/$).
The Union Budget
2010-11, has also continued to lay stress on physical infrastructure
development, citing it as "one of the key catalysts in maintaining and
pump priming the economic growth rate.
The Planning
Commission of India has planned extensive expansion in the roads and highways,
ports, civil aviation and airports,, and power infrastructure segments - all of
which provide substantial opportunities for construction companies.
Water Supply and
Sewerage
Water supply and
sanitation in
Most Indians
depend on on-site sanitation facilities. Recently, access to on-site sanitation
have increased in both rural and urban areas. In rural areas, total sanitation
has been successful.
In urban areas, a
good practice is the Slum Sanitation Program in Mumbai that has provided access
to sanitation for a quarter million slum dwellers.
Airports
The Indian Civil
Aviation Sector is in for a major overhaul over the next few years. In the wake
of major policy changes taking place (due to a shift in the mindset of the
government from considering air travel as elitist to making it available for
the common man) and liberalization of air travel services, a sharp increase
(5-1 0% yoy) in air traffic is expected. Major opportunities lie in
Modernisation / upgradation of metro airports and subsequently Greenfield
.airport projects which are planned in resort destinations and emerging metres
such as Goa, Pune, Navi Mumbai, Greater Noida and Kanpur etc.
The Government is
taking steps to increase participation by private industry. Estimated
investment of about Rs.400000.000 millions (US $ 9.billion) is planned for
airport development over the next 5 years.
Roads and highways
The Indian
Government, via the National Highway Development Program (NHDP), is planning
more than 200 projects in NHDP Phase III and V to be bid out, representing
around 13,000km of roads. The average project size is expected to be in the
range of US$150 million-US$200 million.' About 53 projects with aggregate
length of 3000km and an estimated cost of around US$8 billion are already at
the pre-qualification -stage. Many states are also actively planning the
development of their highways. While the average size of these projects is smaller
than the NHDP projects, most will still be substantial.
Urban
infrastructure
Urban
infrastructure consists of drinking water, sanitation, sewage systems,
electricity and gas distribution, urban transport, primary health services and
environmental regulation. Rapid economic growth will inevitably lead to an
increase in urbanization as cities provide large economies of agglomeration for
individual activity.
The key to
sustaining
The Government has
initiated various initiatives such as allowing 100 per cent FDI in urban
infrastructure projects, investment with repatriation benefit in many housing
and real estate projects, 100 per cent FDI is permitted for the development of
integrated townships, including housing, commercial buildings, hotels, resorts,
etc., tax holiday for urban infrastructure projects. This is available to
developers, and those carrying out operations and maintenance of water supply,
sewerage, sanitation, etc.
Tunneling
With the increase
in development work of hydroelectric projects in
Power
Increased
manufacturing activities and a growing population are also causing a surge in
power usage.
Carbon Credits
Carbon dioxide,
the most important greenhouse gas produced by combustion of fuels, has become a
cause of global panic as its concentration in the Earth's atmosphere has been
rising alarmingly. This was an unimaginable trading opportunity not more than'
a decade ago. Carbon credits are a part of international emission trading
norms. They incentivize companies or countries that emit less carbon. The total
annual emissions are capped and the market allocates a monetary value to any
shortfall through trading. Businesses can exchange, buy or sell carbon credits
in international markets at the prevailing market' price.
Oil and Gas
The oil and gas
industry has been instrumental in fuelling the rapid growth of the Indian
economy. The petroleum and natural gas sector which includes transportation,
refining and marketing of petroleum products and gas constitutes over 15 per
cent of the GDR With Progressive industrialization of the country and growth in
GDP, the consumption of petroleum products in the country has also been
steadily increasing at more than 7% during the VIIIth plan and the projected
growth in POL products in IX Plan is around 7% assuming a GDP growth of 6-7%.
From a level of 31 MMT during 1 980-81, the consumption of petroleum
products is expected to be around 81 MMT in 1996-97. The same is expected to go
up to 113 MMT in 2001-02 and will further rise to 155 MMT by 2006-07.
In November 2008,
the Cabinet Committee on Economic Affairs awarded 44 oil and gas exploration
blocks under the seventh round of auction of the New Exploration Licensing
Policy (Nelp- VII). The overall number of blocks brought under exploration now
exceeds 200.
The allocation is
likely to bring in investments worth US$ 1.5 billion, which will open large
opportunities for the pipe industries as transport of oil and gas through pipe
lines is much cheaper than the surface transport mode.
Opportunities -
Specific to subject Infrastructure and Construction
The government is
committed to improve infrastructure of the country and has earmarked
substantial funds for growth of the sector. With the committed efforts and
investment,
Saw Pipes division
The SAW pipes
manufacturing unit and recently commissioned state-of-the-art coating plant of
the company will ensure the company to tap the tremendous opportunities lies in
pipes segment. There is huge requirement for supply of quality pipes for
transportation of oil, gas, water and sewerages. Many companies including
public sector companies are opting for, transportation of the Hydro Carbon
through pipe lines as this is most cost effective. These create huge demand of
pipes of various diameter and specifications. Considering the current and
future prospectus of this business, the company has commissioned its
state-of-the-art pipe manufacturing plant. The Company has obtained various
certification including prestigious American Petroleum Institute (API)
certifications for its manufacturing facilities, these will enable company to
meet the qualification criteria of various prospective tenders.
STANDALONE UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER/YEAR ENDED ON 31ST MARCH, 2011
(Rs. in millions)
|
Particulars |
Quarter Ended 31.03.2011 (Unaudited) |
Year Ended 31.03.2011 (Unaudited) |
|
1. (a) Net Sales / Income from Operations |
3453.308 |
11687.246 |
|
(b) Other Operating Income |
28.535 |
64.100 |
|
Total Income (a+b) |
3481.843 |
11751.346 |
|
2. Expenditure |
|
|
|
(a) Increase/decrease in stock in trade and work in progress |
(190.540) |
(500.311) |
|
(b) Consumption of raw materials |
2677.072 |
8912.291 |
|
(c) Purchase of traded goods |
-- |
-- |
|
(d) Employees cost |
195.622 |
616.793 |
|
(e) Depreciation |
36.974 |
143.388 |
|
(f) Other Expenditures |
317.825 |
1015.754 |
|
(g) Total |
3036.952 |
10187.915 |
|
3. Profit from
Operations before Other Income, Interest & Exceptional Items (1-2) |
444.891 |
1563.431 |
|
4. Other Income |
42.181 |
12.442 |
|
5. Profit before Interest
& Exceptional Items (3+4) |
487.072 |
1575.873 |
|
6. Interest |
128.523 |
617.723 |
|
7. Profit after
Interest but before Exceptional Items (5-6) |
358.549 |
958.150 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit (+)/ Loss
(-) from Ordinary Activities before fax (7+8) |
358.549 |
958.150 |
|
10. Tax expenses |
84.450 |
243.819 |
|
11. Net Profit (+)/
Loss (-) from Ordinary Activities after tax (9-10) |
274.099 |
714.332 |
|
12. Extraordinary items (net of tax expense) |
-- |
-- |
|
13. Net Profit (+)/
Loss (-) for the period (11-12) |
274.099 |
714.332 |
|
14. Paid-up Equity Share Capital (Face Value of Rs. 10/- each) |
348.850 |
348.850 |
|
15. Reserves excluding revaluation reserves as per balance sheet of previous accounting year |
-- |
4485.865 |
|
16. Earning Per Share (EPS) |
|
|
|
(a) Basic and diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not to be annualized) |
3.03 |
7.91 |
|
(b) Basic and diluted EPS after extraordinary items for the period, for the year to date and for the previous year (not to be annualized) |
3.03 |
7.91 |
|
17. Public shareholding |
|
|
|
— Number of shares |
47465707 |
47465707 |
|
— Percentage of shareholding |
47.74% |
47.74% |
|
18. Promoters and Promoter Group Shareholding |
|
|
|
a) Pledged I Encumbered |
|
|
|
— Number of shares |
-- |
-- |
|
— Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
|
— Percentage of shares (as a % of the total share capital of the company) |
-- |
-- |
|
b) Non - encumbered |
|
|
|
— Number of shares |
51959250 |
51959250 |
|
— Percentage of shares (as a % of the total shareholding of the Promoter and Promoter group) |
100.00% |
100.00% |
|
— Percentage of shares (as a % of the total share capital of the company) |
52.26% |
52.26% |
SEGMENTWISE REVENUE, RESULTS & CAPITAL EMPLOYED (STANDALONE)
FOR THE QUARTER / YEAR
ENDED ON 31st MARCH, 2011
(Rs. in millions)
|
Particulars |
Quarter Ended 31.03.2011 (Unaudited) |
Half Year Ended 31.03.2011 (Unaudited) |
|
1. Segment Revenue |
|
|
|
a. Infrastructure and Construction |
2980.219 |
10599.941 |
|
b. Manufacturing |
540.551 |
1339.341 |
|
c. Unallocated |
42.181 |
12.442 |
|
Total |
3562.952 |
11951.725 |
|
Less Inter Segment Revenue |
38.928 |
187.937 |
|
Net Sales/ Income
from Operations |
3524.025 |
11763.788 |
|
2. Segment Results |
|
|
|
a. Infrastructure and Construction |
431.673 |
1509.611 |
|
b. Manufacturing |
19.335 |
95.808 |
|
c. Unallocated |
42.181 |
12.442 |
|
Total |
493.189 |
1617.862 |
|
Less:(1) Interest |
128.523 |
617.723 |
|
(2) Other Un allocable Expenditure |
6.117 |
41.989 |
|
(3) Un allocable Income |
-- |
-- |
|
Total Profit Before
Tax |
358.549 |
958.150 |
|
3. Capital Employed
(Segment Assets - Segment Liabilities) |
|
|
|
a. Infrastructure and Construction |
3119.803 |
3119.803 |
|
b. Manufacturing |
1337.930 |
1337.930 |
|
c. Unallocated |
376.981 |
376.981 |
|
Total |
4834.715 |
4834.715 |
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2010 (Rs. in millions) |
|
a) Unutilized Letters of Credit with Bankers |
|
|
- Domestic |
509.903 |
|
- Foreign |
121.189 |
|
b) Bank Guarantee |
6956.520 |
|
c) Corporate Guarantee |
672.100 |
|
d) Securitization of receivable and not realized (Secured by
hypothecation of receivable from NMMC) |
-- |
|
e) Estimated amounts of contract remaining to be executed on Capital
Account and not provided for |
245.827 |
|
f) Cases in the court, which in the opinion of the management, require
no provision of liability than what is recorded in accounts |
43.989 |
|
g) Income Tax
liability (excluding Penalties) that may arise. The Commissioner of Income
Tax (Appeal) has allowed the claim of Section 80IA and has passed all the
appeal orders in favour of the Company. The Department has, filled appeal
with ITAT against the orders. |
274.225 |
The Company is of the
opinion that claims for performance guarantee related to the projects executed
previously will not arise.
FIXED ASSETS:
· Office Premises
· Plant and Machinery
· Furniture and Fixtures
· Electrical Installation
· Office Equipment
· Vehicles
· Computer Software
·
· Land
WEBSITE DETAILS:
The Company
Subject, the flagship company of the Pratibha Group is dedicated and committed
to providing the society at large with quality infrastructure in its field of
expertise which currently include design, engineering and
execution/construction of complex and integrated water transmission and
distribution projects, water treatment plants, elevated and underground
reservoirs, mass housing projects, commercial complexes, pre-cast design and
construction, road construction and real estate.
The company which started with pre-cast products in just over two decades, has
created a technical niche for itself graduating into a multifunctional
construction and infrastructure development company of repute with annual turn
over of INR 8060 million. Their rapid and consistent growth over the years bear
testimony to their focus on dedication, quality of production and services
through continuously evolving technologies along with timely execution of
projects which has won them accolades and repeated business from their
clientele.
Origin and Growth
Pratibha Industries was established in 1982, by a dynamic young entrepreneur Mr. Ajit B. Kulkarni. The firm started its foray with manufacturing of SFRC manhole covers and frames, which were designed and introduced as a replacement to the conventional cast iron manholes cover and frames. Substantial saving on costs and elimination of theft vis-ŕ-vis the conventional cast iron product ensured huge acceptability with practically all government clients throughout the country. Success in launch of the initial product saw the then partnership firm graduate from strength to strength, by developing and marketing various other pre-cast products.
Till the early ninety’s the firm was focusing only on pre-cast products. In 1992, the firm decided to extend its presence in the civil construction industry and started participating in bids invited for such projects by Government / Semi- government Departments. In-depth technical knowledge and sound management ethics ensured that the company received its first major mass-housing project [INR125.00 million] from CIDCO of Maharashtra Limited in the same year. Being the first project and an opening towards various similar projects, the firm completed the work successfully in seven months against the scheduled completion period of nine months. Timely implementation of this project provided the company opportunities and subsequent orders from IRWO (Indian Railway Welfare Organization), AWHO (Army Welfare Housing Organization) and reputed clients.
In 1994, the Company realized that water supply projects
hold great potential. However, it did not possess any established expertise in
execution of such projects. Inorganic route through formation of Joint Venture
with a competent fellow contractor was the only way out and therefore, the
first strategic alliance with Coromandal Prescrete (Private) Limited, a
While the company was bidding for the various small schemes
in the water supply segment, a fact dawned that without established source of
the major input [steel pipes], it was not possible to hold a competitive edge
over its competitors. This insight saw the birth of the mechanical division of
the Group. The Company took over Teknoworks (
Since, the firm Teknoworks (
Till 2001, the operations of subject were restricted to the
State of
By 2005, the company had established an inherent expertise in design, construction, operation and maintenance of reasonably sized complex water supply projects, water treatment plants and distribution systems, as also in the other segments in which it was operating. It was realized that there was shift in the government mindset and certain other project implementing agencies and there was determined focus to promote projects on PPP [Public Private Partnership] basis. Though the company was executing mid sized projects on annuity and deferred payment models, the then net-worth and accessibility to debt funds was limited and could prove to be detrimental to the Company’s future growth. There were two paths available – either to maintain the then existing status and subsequently to act as a sub-contractor to bigger contractors or to strengthen its financial position in quest for a place amongst the top construction companies. The Management of the company opted for the latter. It was decided to approach the capital market to raise requisite funds through dilution of 30% of the company’s existing equity base. The Company’s maiden issue hit the market in the first quarter of 2006 and received overwhelming response and was subscribed by over 24 times. The funds raised from the IPO were to be deployed for long term working capital requirements, equity funding for BOOT / PPP projects and setting up of an API accredited spiral pipe manufacturing plant. The Company’s initial and established success in the water segment, due to the availability of proper back up, strengthened the belief that back up of an API accredited pipe manufacturing unit would add as a fillip to its future plans of foray into the lucrative oil and gas pipe transmission EPC projects.
In 2007 and 2008 Pratibha Industries strengthened their
Buildings Division and bagged many unique and the best Buildings in
In 2009 the company has set up its PPP Division (Public Private Partnership). “The Public-Private Partnership (PPP) Project would be a project based on contract or concession agreement between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges.”
The company over the next few years [2010-2011] on standalone basis or through Joint Ventures, strategic alliances and acquisitions [if a suitable opportunity arises] proposes to have strong presence in road, retail, urban, oil and gas transmission and power segments of the infrastructure sector, apart from water supply segment. It also proposes to be global player in pipe segment and market spill over capacities after accounting for in-house consumption. The said projects will be executed on both, EPC and PPP basis.
Management
Directors:
Mrs. Usha B.
Kulkarni, Executive Chairperson
Mrs. Usha B. Kulkarni is the Executive Chairperson of the
Group, since its inception. Focused approach, strong communication and
administrative skills along with the all important ability to lead the team members
in unison and in the overall interest of the Company and the Group, is the
whole mark of Mrs. Kulkarni who is primarily responsible for the administrative
matters. She also takes keen interest in employee management relationship,
which makes this dynamic lady who also can be termed as the architect of
Pratibha, the most respected and loved one, by all in the Company. 70 year old,
Mrs. Kulkarni is a graduate in Arts from
Mr. Ajit B. Kulkarni,
Managing Director
Mr. Ajit B. Kulkarni established the Pratibha Group in 1982. His conviction coupled with strong marketing abilities and zeal to lead the team professionally in overall interest of the Company has ensured continual growth of the Company and the Group as a whole. A perfectionist and achiever, he is the Managing Director of the Company and other Group Companies. He established Pratibha at a very young age of 24 and has been a Partner / Director of the Firm / Company since inception and is responsible for the overall day-to-day management of the company. Rich experience coupled hands on experience in overseas markets, has given him an apt ability to foresee sector requirements, well in advance. He has extensive experience in the construction management of various civil engineering projects. He personally ensures that quality product and service is provided to the clients. He was instrumental in giving the Indian construction industry its first SFRC manhole covers, which practically eliminated the use of cast iron counterparts. It is therefore only befitting that the Pratibha Group is being lead under his able guidance and leadership skills.
Mr. Vinayak B.
Kulkarni, Wholetime Executive Director
Mr. Vinayak Kulkarni is the Executive Whole Time Director (Technical) of the Company. A qualified mechanical engineer, this soft 58 years professional, has been Director since inception. He has extensive experience in the Pre-cast Products Building Units. His areas of work include planning, scheduling, site and materials management and ensuring timely execution. He also heads the real estate division of the Company. His very presence acts as a catalyst with clients and associates alike and this quality has obviously fueled continual growth of the Company and the Group.
Mr. Rohit Katyal,
Group Executive Director and COO
Mr. Rohit Katyal has extensive experience of almost 20 years
in key areas such as regulatory framework in
Mr. Rahul Katyal,
Group Director and CMO
Mr. Rahul Katyal has been serving almost all the group companies. His niche is marketing and has a proven track record with each of the group companies achieving more than 40% growth in turnover year after year. He is responsible for the local and overseas marketing of all the products manufactured by the company.
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.64.70 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
50 |
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.