MIRA
INFORM REPORT
|
Report Date : |
03.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
AFCONS INFRASTRUCTURE LIMITED (w.e.f. August 1996) |
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Formerly Known
As : |
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Registered
Office : |
“Afcons House”, 16, Shah Industrial Estate, Veera Desai Road, Azad Nagar, P. O. No. 11978, Andheri (West), Mumbai – 400 053, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
22.11.1976 |
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Com. Reg. No.: |
11-19335 |
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Capital
Investment / Paid-up Capital : |
Rs.4217.005
Millions |
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CIN No.: [Company Identification
No.] |
U45200MH1976PLC019335 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA09981G / MUMA19369A / MUMA20959B |
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PAN No.: [Permanent Account No.] |
AAACA9067G |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business
: |
Engaged in the business of all kinds of Construction Jobs. It undertakes work of Jetty, Wharves, Dry Dock, Tunnels, Highways, Bridges, Foundations, Pipelines, Dredging and Turnkey Projects. |
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No. of Employees
: |
7000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (54) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 24000000 |
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Status : |
Good |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Directors are reported
to be experienced and respectable businessmen. Trade relations are reported
as fair. Business is active. Payments are reported to be slow but correct. 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 PARTED BY
|
Name : |
Mr. Sachin Sharma |
|
Designation : |
Finance Manager |
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Contact No.: |
91-22-67191296 |
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Date : |
02.06.2011 |
LOCATIONS
|
Registered Office : |
“Afcons House”, 16, Shah Industrial Estate, Veera Desai Road, Azad Nagar, P. O. No. 11978, Andheri (West), Mumbai – 400 053, Maharashtra, India |
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Tel. No.: |
91-22-26731107 / 26367091 / 7093 / 66773100 Ext 138 / 66773214 / 66773241/ 67191000 |
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Fax No.: |
91-22-26730047/ 26730026/ 26369052 / 26315910 / 26731031 / 26730027/ 26367093 |
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E-Mail : |
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Website : |
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Location |
Owned |
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Other Offices : |
Located at : Domestic Offices ·
· Chennai · Kolkata ·
International Offices · U.A.E. ·
·
·
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DIRECTORS
AS ON 30.09.2008
|
Name : |
Mr. Cyrus Pallonji Mistry |
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Designation : |
Chairman cum Managing Director |
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Address : |
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Date of Birth/Age : |
04.07.1968 |
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Date of Appointment : |
26.04.2000 |
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Name : |
Mr. Pallonji Shapoorji Mistry |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
01.06.1929 |
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Date of Appointment : |
26.04.2000 |
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Name : |
Mr. Shapoor Pallonji Mistry |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
06.09.1964 |
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Date of Appointment : |
26.04.2000 |
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Name : |
Mr. Narendra J Jhaveri |
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Designation : |
Director |
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Address : |
C-42, Samprat Residency, Opposite Parivar Society, |
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Date of Birth/Age : |
09.08.1935 |
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Date of Appointment : |
22.03.1996 |
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Name : |
Mr. Jimmy Jehangir Parakh |
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Designation : |
Director |
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Address : |
502, |
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Date of Birth/Age : |
01.10.1949 |
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Date of Appointment : |
27.09.2007 |
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Name : |
Mr. Bhagwan Dass Narang |
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Designation : |
Director |
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Address : |
Flat No. 29, (GF) Pocket – F, DDA. APP. SFC. Scheme, Shaikh Sarai,
Phase – I, |
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Date of Birth/Age : |
12.04.1945 |
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Date of Appointment : |
27.09.2007 |
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Name : |
Mr. R M Premkumar |
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Designation : |
Director |
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Address : |
101, Praneet, Dr. Jayant Palkar Marg, Worli, Mumbai – 400 030, |
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Date of Birth/Age : |
16.08.1945 |
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Date of Appointment : |
27.09.2007 |
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Name : |
Mr. Abhimanyu Hemendra Divanji |
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Designation : |
Director |
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Address : |
51, Le Repos, |
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Date of Birth/Age : |
20.11.1928 |
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Date of Appointment : |
27.03.2002 |
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Name : |
Mr. Pradip Narotam Kapadia |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
30.09.1951 |
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Date of Appointment : |
30.09.2008 |
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Name : |
Mr. Naushir Dara Khurody |
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Designation : |
Director |
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Address : |
12 A, |
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Date of Birth/Age : |
26.10.1936 |
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Date of Appointment : |
30.09.2008 |
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Name : |
Mr. Krishnamurthy Subrahmanian |
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Designation : |
Managing Director |
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Address : |
611, Wing C, Evening Star, Raheja Vihar, Andheri (W), Mumbai – 400
072, |
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Date of Birth/Age : |
03.06.1958 |
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Date of Appointment : |
15.11.2002 |
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Name : |
Mr. S Paramasivan |
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Designation : |
Whole Time Director |
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Address : |
Venus Flat No. 85, Versova Venus Housing Society, Plot No. 6, R D P 2,
SVP Nagar, Versova, Mumbai – 400 053, Maharashtra, India |
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Date of Birth/Age : |
20.05.1957 |
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Date of Appointment : |
10.06.2002 |
KEY EXECUTIVES
|
Name : |
Mr. Sachin Sharma |
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Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Equity share
breakup (percentage of total equity)
(AS ON 30.09.2008)
|
Category |
Percentage |
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Bodies corporate |
96.98 |
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Directors or relatives of directors |
0.33 |
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Other top fifty (50) shareholders |
2.69 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in the business of all kinds of Construction Jobs. It undertakes work of Jetty, Wharves, Dry Dock, Tunnels, Highways, Bridges, Foundations, Pipelines, Dredging and Turnkey Projects. |
GENERAL INFORMATION
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Customers : |
MNC and Corporate Office · Mumbai Port Trust ·
·
·
Nuclear Power Corporation of · National Thermal Power Corporation · Andhra Pradesh Power Generation Corporation Limited · Oil and Natural Gas Corporation Limited · Bharat Petroleum Corporation Limited · Indian Oil Corporation Limited · IRCON International Limited · Delhi Metro Rail Corporation Limited ·
· MECON Limited · Essar Limited · Gujarat Heavy Chemicals Limited ·
· Wockharht Hospitals ·
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No. of Employees : |
7000 (Approximately) |
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Bankers : |
·
State Bank of Commercial Branch, NGN Vaidya Marg, Horniman Circle, Fort, Mumbai – 400 023, Maharashtra, India ·
Oriental
Bank of Commerce, Corporate Ground
Finance Branch, Maker Tower “E”, 18th Floor, Cuffe Parade, Mumbai
– 400 005, Maharashtra, India · Central Bank of India, Corporate Finance Branch, MMO Building, 1st Floor, M G Road, Fort, Mumbai – 400 023, Maharashtra, India · HDFC Bank Sandoz House Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India · Indian Overseas Bank Worli Branch, Kakad Chambers, Dr. Annie Besent Road,, Mumbai - 400018,
Maharashtra, India §
UCO
Bank §
Axis
Bank Limited §
Bank
of India §
Dena
Bank §
BNP
Paribas §
ING
Vysya Bank Limited §
ICICI
Bank Limited §
Union
Bank of India §
IDBI
Bank Limited §
Standard
Chartered Bank §
Yes
Bank Limited |
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Facilities : |
NOTES: 1. Secured by a first charge on the immovable properties of the Company
situated in Andheri, Mumbai and 2. Secured by first charge by way of hypothecation of the equipment /
car(s) financed. 3. Secured by charge on receivables older than 6 months.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
· Deloitte Haskins and Sells Chartered Accountants Address : 12,
· J. C. Bhatt Chartered Accountants Address : 3rd Floor,
Surya Mahal, Burjorji Bharucha Marg, Fort, Mumbai – 400 020, |
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Holding Companies : |
Shapoorji Pallonji and Company Limited (Ultimate Holding Company) |
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Subsidiaries : |
·
Afcons Pauling ( ·
Afcons BOT Constructions Private Limited ·
Tensacciai [ ·
Kier Afcons ( ·
Afcons (Overseas) Constructions and Investments
Private Limited ·
Hazarat and Company Private Limited CIN No.:
U74999MH1982PTC028701 ·
SSS Electricals ( CIN No.:
U28920MH1985PTC036876 ·
Afcons Dredging and Marine Services Limited ·
Afcons Construction Mideast LLC ·
Afcons Arethusa Offshore Services Private Limited
(CIN No.: U11101MH1984PTC032807) ·
Afcons Infrastructures International Limited ·
Afcons Offshore and Marine Services Private
Limited |
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Fellow Subsidiary :
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· Sterling Investments Corporation Private Limited · Floreat Investments Limited · Cyrus Investments Limited (Directly) |
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Associates : |
Afcons [ |
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Partners : |
Afcons Pauling Joint Venture |
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Jointly Controlled Entity : |
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CAPITAL STRUCTURE
AS ON 20.09.2010
Authorised Capital : Rs.10000.000 Millions
Issued, Subscribed and Paid-up Capital : Rs.4218.395 Millions
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
350000000 |
Equity Shares |
Rs.10/- each |
Rs.3500.000 Millions |
|
650000000 |
Preference Shares |
Rs.10/- each |
Rs.6500.000 Millions |
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Total |
|
Rs.10000.000
Millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
71700514 |
Equity Shares |
Rs.10/- each |
Rs.717.005
Millions |
|
100000000 |
0.01% Non Cumulative and Non Profit
Participatory Convertible Preference Shares |
Rs.10/- each |
Rs.1000.000
Millions |
|
250000000 |
0.01% full and Compulsorily Convertible
Non-Cumulative Non Participatory Preference Shares |
Rs.10/- each |
Rs.2500.000
Millions |
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Total |
|
Rs.4217.005 Millions |
NOTE
1. Of the above Equity Shares:-
(a) 200,000 Shares of Rs.10 each have been issued as Fully paid up for
Consideration other than Cash.
(b) 3,500,000 Shares of Rs.10 each are issued as Fully Paid up Bonus
Shares by Capitalization of Rs.35,000,000 out of General Reserve.
(c) 24,076,349 (Previous year 24,075,389) Shares are held by Cyrus
Investments Limited (CIL) which is a subsidiary of Shapoorji Pallonji and
Company Limited (SPCL), the holding company.
(d) 24,075,389 shares are held by Sterling Investment Corporation
Private Limited (SICPL), a subsidiary of SPCL.
(e) 13,015,929 shares are held by Floreat Investments Limited (FIL), a
subsidiary of SPCL.
(f) 4,016,250 shares are held by Renaissance Commerce Private Limited
(formerly Afcons BOT Constructions Private Limited), a subsidiary of Shapoorji
Pallonji Infrastructure Capital Company Limited (SPICCL), which is a subsidiary
of SPCL.
(g) 4,016,250 shares are held by Hermes Commerce Limited (formerly
Afcons Dredging and Marine Services Limited), a subsidiary of Shapoorji
Pallonji Infrastructure Capital Company Limited (SPICCL), which is a subsidiary
of SPCL.
(h) 20,000,000 shares allotted to SICPL, a subsidiary of SPCL on
22-12-06 pursuant to conversion of 7.5% Redeemable ‘Non-cumulative convertible
Preference Shares into equity shares at par.
(i) 300,514 (Previous year 4,380) shares have been issued under ESOP
scheme 2006.
2 The 0.01% Non Cumulative and Non Profit Participatory Convertible
Preference Shares of Rs.10 each are held by Floreat Investments Limited, a
subsidiary of SPCL on the following terms:
(a) The Preference Shares shall be non- cumulative and non profit
participating convertible Preference Shares carrying a fixed rate of dividend
of 0.01% per annum to be paid in priority to the holders of any other class of
shares.
(b) The Preference Shares shall be deemed to be converted into common
equity shares of the Company at a price of Rs.68.25 per equity share
(consisting of par of Rs.10 and a premium of Rs.58.25) immediately,
automatically and without any further act of the parties in the event of
conversion of the Preference Shares mentioned in note 3 (b) below.
3. The 0.01% Fully and Compulsorily Convertible Non-Cumulative, Non
Participatory Preference shares of Rs.10 each are held by India Infrastructure AIL
(Mauritius) Limited on the following terms:
(a) Non-cumulative preferential dividend at a fixed rate of 0.01 per
cent per annum to be paid in priority to the holders of any other class of
shares;
(b) The Preference Shares will be mandatorily converted in to equity
shares at a price to be ascertained at the relevant point of time if Initial
Public Offering (IPO) happens between 18-36 months from the date of issue viz.
14th Jan 2008 or any time thereafter but before 14th Jan 2013.
(c) The Preference Shares shall rank senior to all types of shares
issued or to be issued by the Company.
4. Particulars of Option on Unissued Share Capital
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 |
4217.005 |
4214.044 |
4215.250 |
|
|
2] Share Application Money |
0.018 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1866.300 |
1509.577 |
1025.182 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6083.323 |
5723.621 |
5240.432 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2364.436 |
3192.368 |
2431.331 |
|
|
2] Unsecured Loans |
3023.207 |
3712.772 |
2733.071 |
|
|
TOTAL BORROWING |
5387.643 |
6905.140 |
5164.402 |
|
|
DEFERRED TAX LIABILITIES |
443.664 |
434.561 |
367.287 |
|
|
|
|
|
|
|
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TOTAL |
11914.630 |
13063.322 |
10772.121 |
|
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|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3712.188 |
3813.541 |
3006.707 |
|
|
Capital work-in-progress |
168.145 |
197.762 |
153.236 |
|
|
|
|
|
|
|
|
INVESTMENT |
29.516 |
32.445 |
82.818 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1283.534
|
1765.607 |
1111.674 |
|
|
Sundry Debtors |
3508.890
|
3290.631 |
2039.694 |
|
|
Cash & Bank Balances |
173.491
|
121.254 |
513.363 |
|
|
Other Current Assets |
5458.098
|
7030.355 |
6617.693 |
|
|
Loans & Advances |
9305.583
|
1173.952 |
905.765 |
|
Total
Current Assets |
11354.596
|
13381.799 |
11188.189 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1873.302
|
3505.129 |
2864.867 |
|
|
Other Current Liabilities |
1360.599
|
739.741 |
773.724 |
|
|
Provisions |
115.914
|
135.423 |
56.374 |
|
Total
Current Liabilities |
3349.815
|
4380.293 |
3694.965 |
|
|
Net Current Assets |
8004.781
|
9001.506 |
7493.224 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
18.068 |
36.136 |
|
|
|
|
|
|
|
|
TOTAL |
11914.630 |
13063.322 |
10772.121 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14666.009 |
20106.529 |
16978.436 |
|
|
|
Other Income |
436.788 |
396.125 |
515.993 |
|
|
|
TOTAL (A) |
15102.797 |
20502.654 |
17494.429 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Production |
9575.794 |
15062.025 |
12793.271 |
|
|
|
Payment to and provision for employees |
1739.777 |
1960.736 |
1520.741 |
|
|
|
Operational and other expenses |
2115.736 |
1484.753 |
1411.608 |
|
|
|
TOTAL (B) |
13431.307 |
18507.514 |
15725.62 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1671.490 |
1995.140 |
1768.809 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
789.523 |
948.143 |
864.132 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
881.967 |
1046.997 |
904.677 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
322.136 |
296.166 |
240.019 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
559.831 |
750.831 |
664.658 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
196.233 |
257.305 |
224.442 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
363.598 |
493.526 |
440.216 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
739.910 |
248.043 |
[192.081] |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
1.250 |
0.000 |
|
|
|
Proposed Dividend on Preference Shares |
0.350 |
0.350 |
0.079 |
|
|
|
Tax on Dividend |
0.059 |
0.059 |
0.013 |
|
|
BALANCE CARRIED
TO THE B/S |
1103.099 |
739.910 |
248.043 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3735.690 |
1930.537 |
NA |
|
|
TOTAL EARNINGS |
3735.690 |
1930.537 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
110.650 |
406.557 |
NA |
|
|
|
Consumables |
124.106 |
202.151 |
NA |
|
|
TOTAL IMPORTS |
234.756 |
608.708 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
5.08 |
6.91 |
6.16 |
|
|
|
Diluted |
1.08 |
1.47 |
3.43 |
|
|
Particulars |
|
|
31.03.2011 |
|
Sales Turnover |
|
|
28000.000 (Group T/O) |
The above information has been parted by Mr. Sachin Sharma.
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.41
|
2.41 |
2.52 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.82
|
3.73 |
3.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.72
|
4.37 |
4.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.92
|
0.13 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.44
|
1.97 |
1.69 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.39
|
3.06 |
3.03 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
(Rs. in millions) |
||
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
Total outstanding dues to micro, medium and small
enterprises |
7.226 |
11.709 |
1.152 |
|
Total outstanding dues to creditors other than micro and
small enterprises |
1866.076 |
3493.420 |
2863.715 |
|
|
|
|
|
|
Total |
1873.302
|
3505.129 |
2864.867 |
OPERATIONS
The Company has performed well as can be reflected from the
financial results above. The Total Income, PBT, EBIDTA and PAT has grown by 7%,
45%, 16% & 62% respectively. The Order book as on 31 March 2010 was
Rs.57537.800 Millions as compared to the previous year order book of
Rs.42623.100 Millions. Presently the share of the overseas contract is over 24%
of the order book.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC
OVERVIEW
The fiscal year 2009-10 began as a difficult one. There had
been a significant slowdown in the growth rate in the second half of 2008-09
following the global financial crisis that began in 2007 and spread to the real
economy across the world. The Indian economy, however, was hit in the latter
part of the global recession and the real economic growth witnessed a sharp
fall, followed by lower exports, lower capital outflow and corporate
restructuring. Yet, over the span of the year, the Indian economy posted a
remarkable recovery, not only in terms of overall growth figures but, more
importantly, in terms of certain fundamentals, which justify optimism for the
Indian economy in the medium to long term. The real turnaround came in the second
quarter of 2009-10 when the economy grew by 7.9%. As per the advance estimates
of GDP for 2009-10, released by the Central Statistical Organisation (CSO), the
economy is expected to grow at 7.2% in 2009-10, with the industrial and service
sectors growing at 8.2% and 8.7% respectively.
In tandem with the turnaround in overall industrial growth,
core industries and infrastructure services have also evinced signs of recovery
with easing of supply bottlenecks in certain sectors and demand recovery in others.
India’s gross domestic product (GDP) grew by 6% during October to December
2009, over the corresponding quarter of the previous year, as per data released
by the CSO.
Six core infrastructure industries grew at 4.5 % in February
2010 against 1.9 % during the corresponding month last year, primarily due to
increased output in electricity. The six infrastructure sectors-crude,
petroleum refinery products, coal, electricity, cement and finished steel-that
constitute 26.68 % in lIP, recorded a growth of 5.3 % in the period
April-February 2009-10, as against 2.9% in the same period last year. In order
to sustain economic growth during the time of the worst recession, the
government authorities in India have announced the stimulus packages to prop up
economic growth. It is expected that the global economies will continue to
sustain in the short-term, as the effect of stimulus programs is yet to bear
fruit.
INDUSTRY STRUCTURE
AND DEVELOPMENT
The Construction industry is an integral part of the Indian economy and accounts for significant share of the GDP. It is also one of the largest employers of skilled and unskilled labour force in the country and is characterized by mix of both organized and unorganized entities.
Provision of quality infrastructure is a crucial pre requisite for sustainable growth of the economy. The fast growth of the Indian economy has placed increasing stress on physical infrastructure which suffers from substantial deficits in terms of capacities and efficiencies in their delivery. The pattern of inclusive growth of the economy projected for the Eleventh Plan, with GDP growth averaging 9% per year can be achieved only if this infrastructure deficit can be overcome and adequate investment takes place to support higher growth and an improved quality of life for both urban and rural communities. While there has been some improvement in infrastructure development in the recent years there are still significant gaps that need to be bridged.
To revive economic growth, the government has put strong impetus on infrastructure development in the current budget. It has made provision of Rs.1735520.000 Millions for Infrastructure development. The Government has raised the allocation for road transport by over 13% to Rs.198940.000 Millions and Railway by over 6% to Rs.167520.000 Millions.
The Government has also introduced various policies and schemes like Viability Gap Funding (VGF), setting up of an Infrastructure SPV i.e. India Infrastructure Finance Company, Bharat Nirman Programme, National Urban Renewal Mission. Committee on Infrastructure to strengthen the Indian infrastructure sector It has also increased its budgetary allocation to the aforesaid scheme and policies to further boost the Infrastructure development of the Country.
The Government has been actively encouraging private investment in Infrastructure through Public Private Partnership to meet the massive Infrastructure funding requirement.
With the huge investment proposed in Infrastructure sector in the Eleventh plan period (2007-2012) coupled with the government initiative, the growth of infrastructure development in India in the near terms looks very promising. The Company is well poised to participate in this opportunity.
BUSINESS OVERVIEW
The Company has bagged a prestigious order worth Rs.14580.000 Millions
from the Border Roads Organization for constructing 8.8 KM long 81-Directional
traffic dual lane single bore Highway Tunnel at Rohtang Pass, for providing all
weather connectivity between Manali and Leh and Ladakh for defence forces. This
longest tunnel, is being built in Joint Venture with Strabag AG, Austria.the
Company’s share of work is equivalent to Rs.5830.000 Millions.
The Company in Joint Venture with Transtonnelstroy Limited, Russia has
bagged order worth Rs.9379.500 Millions from Kolkata Metro Rail Corporation
Limited for the work of constructing 2 crucial transportation tunnel 20 meters
below the Hooghly riverbed along with construction of 3 underground stations.
The project is part of the Rs.48745.800 Millions East West Metro Corridor
Project.
The Company has made a significant entry in the Kingdom of Jordan by
bagging the project Construction of New Phosphate Rock Terminal in South Port
of Aquaba, Jordan for Jordan Phosphate Mines Co. PLC. for (JD142.230 million)
equivalent to Rs.9115.500 Millions.
In September 2009, the Company has received mandate from Konkan Railway
Corporation Limited to resume work on some locations of the prestigious project
of constructing special bridge across river Chenab on the Katra-Laole Section
of Jammu and Kashmir .The project was awarded to the Company in 2004 and the
works were subsequently suspended in 2008 by Indian Railway Board as the plans
for the bridge could not be finalized in view of the treacherous geological
conditions and alignment issues.
They Company has also bagged several other orders in various segments of
construction business i.e. Marine works, Bridges, Civil works both in India and
abroad.
The present order book position of the Company as on 31st March, 2010 is
Rs.57537.800 Millions. Presently the share of the overseas contract is over 24%
of the order book.
The growth has been well diversified across different segments and
geographies on the desired line and focus. All the segments are well balanced
and there is no over dependence on any one sector or geography and we remain
present in all segments with a reasonable significant participation.
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In millions) |
|
|
|
|
|
|
Claims against the Company not acknowledged as debts a) Liquidated damages against the company b) Differences with sub-contractors in regard to rates and quantity of
materials. c) Proposed Recovery by the Government of Andhra Pradesh towards Sales
Tax on B.T. escalation. d) Labour and other matters. The above claims are pending before various authorities. The Company
is confident that the cases will be successfully contested |
-- 68.666 -- 0.100 |
33.132 71.392 21.819 0.100 |
|
|
|
|
|
a) Bank Guarantees given on behalf of Subsidiaries and Joint Ventures.
b) Corporate Guarantees given on behalf of Subsidiaries and Joint
Ventures. |
7079.139 7112.714 |
2048.060 8240.640 |
|
|
|
|
|
Sales tax and Extra tax Represents demands raised by Sales Tax Authorities in matters of
disallowance of labour and service charges, consumables etc. for which appeal
is pending before various appellate authorities. The Company is confident that
the cases will be successfully contested. |
192.982 |
165.103 |
|
|
|
|
|
Excise Duty Represents demands raised by Central Excise Department for
Excitability of girders. The Company is confident that the cases will be
successfully contested. |
132.287 |
22.738 |
|
|
|
|
|
Service Tax Represents demand confirmed by the Asst. Commissioner of Service Tax
for disallowance of Cenvat Credit, since abatement claimed. The Company has
appealed against the said order with Commissioner of Service Tax Mumbai and is
confident that Cenvat Credit will be allowed as it is project specific and
abatement has not been availed on the same. |
0.284 |
-- |
FORM 8:
|
Corporate
identity number of the company |
U45200MH1976PLC019335 |
|||||||||
|
Name of the
company |
AFCONS INFRASTRUCTURE LIMITED |
|||||||||
|
Address of the
registered office or of the principal place of business in |
“Afcons House”, 16, Shah Industrial Estate, Veera Desai Road, Azad Nagar, P. O. No. 11978, Andheri (West), Mumbai – 400 053, Maharashtra |
|||||||||
|
This form is for |
Creation of
charge |
|||||||||
|
Type of charge |
Movable Property Others (Capital
Equipment, Spares, Accessories etc.) |
|||||||||
|
Particular of
charge holder |
Oriental Bank of
Commerce Limited, Large Corporate Branch, 181 A Maker Tower ‘E’, 18th
Floor, Cuffe Parade, Mumbai – 400 005, Maharashtra, India E-Mail: emailroc@rediffmail.com |
|||||||||
|
Nature of
description of the instrument creating or modifying the charge |
Agreement of Term
Loan |
|||||||||
|
Date of
instrument Creating the charge |
17.09.2009 |
|||||||||
|
Amount secured by
the charge |
Rs.500.000
millions |
|||||||||
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
Interest @ PLR – 2.75% (presently 9.25% p.a.) or such other rate as agreed
between the borrower and bank from time to time. Penal interest @ 2% p.a.
over and above the normal interest rate in case of default. Terms of
Repayment:
Margin: Margin @
15% Extent and Operation
of the charge: At the request of the borrower company, the bank has
sanctioned term loan of Rs.500.000 millions against hypothecation of capital
equipment, spares, accessories etc. purchased out of proceeds of term loan. |
|||||||||
|
Short particulars
of the property charged |
Hypothecation of
capital equipment, spares, accessories etc. purchased out of proceeds of term
loan. |
|
Name of the company |
AFCONS INFRASTRUCTURE LIMITED |
|
Presented By |
AFCONS INFRASTRUCTURE LIMITED |
|
1) Date and description of instrument creating the change |
Term Loan
Agreement dated 29th November, 2005. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.250.000
millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
That the Borrower
hereby hypothecate and charge by way of first charge in favour of the Bnak
the machinery / vehicle / goods / items / furniture and fixtures movable
property of any kind as well as all other movable assets, whether existing or
future, belonging to the Borrower and in case of any earlier charge on the
existing movable assets, as second charge over the same. In favour of the
Bank, hereinafter called “the hypothecated assets” which expression shall
where required or necessary include all fittings, fixtures, tools accessories
and parts whatsoever pertaining to the said hypothecated assets and all replacements
of or escalation or accretion thereof of any type and nature thereof, for
repayment by the Borrower to the Bank of the amount due under or arising out
of this agreement and costs, expenses and any kind of charges incurred by the
Bank from time to time for purpose of such security / hypothecated assets and
for all necessary steps till actual realization. The Borrower specifically
agrees that in case of any such addition, escalation or accretion, etc to the
hypothecated assets / securities, as the case may be accruing in respect of
said hypothecated assets / securities or any way of production and profits
thereto or any part hereof shall also be deemed to be hypothecated assets /
securities or by way of production and profits thereto shall also be deemed
to be hypothecated / charged with the Bank and parties agree that there is no
need for signing any additional supplementary agreement in this respect. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest
7.25% p.a. |
|
5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of
Commerce Corporate Ground
Finance Branch, Maker Tower “E”, 18th Floor, Cuffe Parade, Mumbai
– 400 005, Maharashtra, India |
|
6) Date and brief description of instrument modifying the charge |
As per Term Loan
Agreement dated 29th November 2005 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
FIXED ASSETS
·
Land – Freehold
·
Land – Leasehold
·
Buildings
·
Plant and Machinery
·
Leasehold Improvements
·
Floating Equipments etc.
·
Laboratory Equipments
·
Office Equipments
·
Furniture and Fixtures
·
Motor Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.94 |
|
|
1 |
Rs.73.46 |
|
Euro |
1 |
Rs.64.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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.