MIRA INFORM REPORT

 

 

Report Date :

07.03.2011

 

 

IDENTIFICATION DETAILS

 

Name :

KEC INTERNATIONAL LIMITED

 

 

Registered Office :

RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai – 400 030, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

18.03.2005

 

 

Com. Reg. No.:

11-152061

 

 

CIN No.:

[Company Identification No.]

L45200MH2005PLC152061

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMK11457F

 

 

PAN No.:

[Permanent Account No.]

AAACK4279J

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturers of Transmission Line Tower.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 31000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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 regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. Rajesh

Designation :

Accounts Department

Date :

15.02.2011

 

 

LOCATIONS

 

Registered Office :

RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai – 400 030, Maharashtra, India

Tel. No.:

91-22-66972777/ 28204045/ 66670200/ 66670297

Fax No.:

91-22-66972799/ 28204052/ 66670299/ 66670287

E-Mail :

kecindia@bom.keerpgmail.com

hm.singh@rpgkec.sprintrpg.ems.vsnl.net.in

hm.singh@rpgkec.sprin

raoj@kecrp.com

Website :

http://www.kecrpg.com

 

 

Factory 1 :

B-190, M.I.D.C. Industrial Estate, Butibori, Nagpur - 441 108, Maharashtra, India

Tel. No.:

91-7104-662209

Fax No.:

91-7104-662251

E-Mail :

kecmanufacturing@kecrpg.com

 

 

Factory 2 :

Jhotwara, Jaipur – 302 012, Rajasthan, India

Tel. No.:

91-141-2340214 / 91-141-6700201

Fax No.:

91-141-2340223

E-Mail :

kecjaipur@kecrpg.com

 

 

Factory 3 :

Deori, P. O. Panagarh, Jabalpur – 483220, Madhya Pradesh, India

Tel. No.:

91-761-2350024

Fax No.:

91-761-2350204

E-Mail :

kecjabalpur@kecrpg.com

 

 

Factory 4 :

2nd Pokhran Road, P. B. No. 11, Thane - 400 601.

Tel. No.:

91-022-21731706

Fax No.:

91-022-21731700

E-Mail :

aarora@rpgcables.com

 

 

Factory 5 :

349, Hebbal Industrial Area, Hootagalli, Belavadi Post, Mysore- 570016.

Tel. No.:

91-821-6559937/6559938/6553181

Fax No.:

91-821-2402499

E-Mail :

dkrao@rpgcables.com

 

 

Factory 6 :

Plot No 273/4, Demni Rd, Dadra, Silvassa-396191.

Tel. No.:

91-260-2668518/2668519

Fax No.:

91-260-2268519

E-Mail :

santoshkadam@rpgcables.com

 

 

Overseas Office :

Located at:

 

·         Abudhabi

·         Algeria

·         Ethiopia : Jimma

·         Kenya

·         Lebanon

·         Libya

·         Muscat – Oman

·         Sharjah

·         Tunisia

 

 

Branch Office:

Flat No.9, 1st Floor, 796/6, Lane No.7, Prabhat Road, 2nd Jim Khana, Pune-411 004, Maharashtra, India

 

 

Branch Office :

Located at:

 

·         Bangalore

·         Kolkata

·         New Delhi

·         Vashi, R and D Centre

 

 

Projects Locations :

International Projects:

1st Floor, CEAT Mahal, 463, Dr. Annie Besant Road, Worli, Mumbai - 400 030, Maharashtra, India

Phone: 91-22-66670200

Fax: 91-22-66670285/99

Email: kecindia@kecrpg.com

 

Domestic Projects:

DLF Infinity Towers, 7th Floor, Tower-'B', DLF City, Phase-II, Gurgaon-122 002

Phone: 91-124-4188777

Fax: 91-124-4188721

Email: kecdomestic@kecrpg.com

 

Domestic Projects:

KEC International Limited Telecom Division, "The Pavilion", 3rd Floor, 339/2, Mehrauli-Gurgaon Road, Opposite State Bank of India, Sector 14, Gurgaon-122001,

Phone:91-124-4607700
Fax:91-124-4607702

 

Domestic Projects:

6th Floor RPG House, 463 Dr.Annie Besant Rd,Worli , Mumbai – 400025, Maharashtra, India

Tel: 91-22-66670300/66670305

Fax: 91-22-24930206/24930206

Power Division Email: sanjay.deosthali@rpgcables.com

Telecom Division Email: nandanan@rpgcables.com

Export Division Email: chatterjeet@rpgcables.com

 

Domestic Projects:

1st Floor, Building no. 9A, DLF Cyberciti Phase- 3, Gurgaon – 122002 Phone:+91-124-4188790

Fax:+91-124-4188798/99

 

 

DIRECTORS

 

As On 31.03.2010

 

Name :

Mr. H. V. Goenka

Designation :

Chairman

Address :

14-16, Patazzo B. G. Khar Marg, Mumbai – 400 008, Maharashtra

Tel No.:

91-22-23630872

Qualification :

Arts Graduate and BA, MBA (Geneva)

Other Directorship :
  • Bayer (India) Limited
  • Zensar Technologies Limited
  • RPG Enterprises Limited
  • Raychem RPG Limited
  • RPG Cables Limited
  • RPG Paging Services Limited
  • PRG Life Sciences Limited
  • Spentex Industries Limited
  • CEAT Limited (Vice Chairman)
  • Bajaj Electricals
  • Zensar Technologies Inc.,
  • Sprint RPG India Limited
  • The State Industrial and Investments Corporation of Maharashtra Limited (SICOM)

 

 

Name :

Mr. R. D. Chandak

Designation :

Managing Director and Chief Executive Officer

Address :

B/44, Ruia Park, 47, J. R. Mahatro Road, Juhu, Mumbai – 400049, Maharashtra

Qualification :

M. Com., FCA

 

 

Name:

Mrs. Sobha Singh Thakur

Designation:

Director

Address:

1161, Abdul Court, Flat No. 20, Suryavanshi Marg, Dadar, Mumbai – 400 028, Maharashtra

Qualification:

M. Com., CAIIB

 

 

Name:

Mr. Gulu Lalchand Mirchandani

Designation:

Director

Address:

22, Paras, Little Gibs Road, Malabar Hill, Mumbai – 400 006, Maharashtra

Qualification:

B. Mechanical

 

 

Name :

Mr. Dilip G Piramal

Designation :

Director

 

 

Name :

Mr. Sharad Madhav Kulkarni

Designation :

Director

Qualification :

Bechelor of Engineering :

FIE (India) F Institute of Directors (UK) Fellow-Institute of Management (UK)

Other Directorship:
  • Sharvari Investment Private Limited
  • Spentex Industries Limited
  • Raychem RPG Limited
  • Bayer ABS Limited
  • Spencer International Hotels Limited
  • Bayer India Limited
  • Hindustan Construction Company Limited
  • RPG Enterprises Limited
  • Global Procurement Consultants Limited
  • Jubilee Investments and Industries Limited
  • Hilltop Holding India Limited
  • ATR Consulting Private Limited
  • Indiaco Com (Private) Limited
  • Travel Voyages (India) Limited

 

 

Name:

Mr. Ajit Teckchand Vaswani

Designation:

Director

Address:

502, Solitalre Hirandani Gardens, Powai, Mumbai – 400 076, Maharashtra

Qualification:

CA, CS

 

 

Name:

Mr. Jotindra Mansukhlal Kothary

Designation:

Director

Address:

16 A, Thakur Niwas, 3rd Floor, 173, J. N. Tata Road, Churchgate, Mumbai – 400 020, Maharashtra

Tel No.:

91-22-2881537

Qualification:

B. Com LLB, MBA (USA)

 

 

Name :

Mr. P. A. Makwana

Designation :

Director

 

 

Name :

Mr. Vimal Kejriwala

Designation :

Executive Director – International

 

 

Name :

Mr. N.C. Venugopal

Designation :

Executive Director – South Asia

 

 

Name :

Mr. Nikhil Gupta

Designation :

Executive Director – RPG Cables

 

 

KEY EXECUTIVES

 

Name :

Mr. Ch. V. Jagannadha Rao

Designation :

Company Secretary

 

 

Name :

Mr. Vardhan Vasant Dharkar

Designation :

Chief Financial Officer

 

 

Name :

Mr. Yugesh Goutam

Designation :

Vice President – Human Resource

 

 

Name :

Mr. Anubrata Bhattacharya

Designation :

Chief Executive – Distribution

 

 

Name :

Mr. A. K. Sharma

Designation :

Chief Executive – Telecom

 

 

Name :

Mr. Sanjay Chandra

Designation :

Chief Executive – Railways

 

 

Name :

Dr. Deepak Lakhapati

Designation :

Vice President – Engineering Services

 

 

Name :

Mr. K. Ramkumar

Designation :

Vice President – Special Projects

 

 

Name :

Mr. Akhil Saxena

Designation :

Vice President – Supply Chain

 

 

Name :

Mr. V. Balasubramanian

Designation :

Vice President- international Project

 

 

Name :

Mr. Raj Kumar Gupta

Designation :

Vice President – South Asia Projects

 

 

Name :

Mr. Vasant Pandit

Designation :

Vice president – Sales and Marketing (Cable)

 

 

Name :

Mr. Rajesh

Designation :

Accounts Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2010

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Bodies Corporate

107,072,145

41.65

Sub Total

107,072,145

41.65

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

107,072,145

41.65

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

79,598,210

30.96

Financial Institutions / Banks

5,022,810

1.95

Insurance Companies

12,808,900

4.98

Foreign Institutional Investors

12,905,420

5.02

Any Others (Specify)

540,135

0.21

Foreign Bank

540,135

0.21

Sub Total

110,875,475

43.13

(2) Non-Institutions

 

 

Bodies Corporate

8,560,910

3.33

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

24,191,725

9.41

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

3,410,905

1.33

Any Others (Specify)

2,977,210

1.16

NRIs/OCBs

896,880

0.35

Clearing Members

314,100

0.12

Trusts

1,766,230

0.69

Sub Total

39,140,750

15.22

Total Public shareholding (B)

150,016,225

58.35

Total (A)+(B)

257,088,370

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

257,088,370

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Transmission Line Tower.

 

 

Products :

Item Code No. (ITC Code)

730820.01

Product Description

Towers and Structural

 

Item Code No. (ITC Code)

-

Product Description

Engineering, Procurement and Construction (EPC)

 

 

Exports :

 

Products :
  • Transmission Line Tower

Countries :
  •  Australia
  • South Africa

 

 

Imports :

 

Products :
  • Machines

Countries :
  • Germany
  • UK
  • Italy

 

 

Terms :

 

Selling :

L/C, Cash, Credit

 

 

Purchasing :

L/C, Cash, Credit

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Unit

Installed Capacity

 

Actual Production

 

 

 

 

Towers and Structural

Tonnes

151000

141009

 

 

 

 

 

 

GENERAL INFORMATION

 

Customers :
  • End Users
  • Corporates

 

Africa

 

·         Ministry of Energy, Kenya

·         Mumias Sugar Company, Kenya

·         EEPCO, Ethiopia

·         Sonelgaz, Algeria

·         Nampower, Namibia

·         EDM, Mali

·         General Electricity Company of Libya

·         EDM, Mozambique

·         Eskom Holdings, South Africa

·         VRA, Ghana

·         EETC, Egypt

·         Zesco, Zambia (Completed in 2006)

·         STEG, Tunisia

·         KPLC, Kenya

 

Middle East

 

  • SEWA, Sharjah
  • Électricité Du Liban, Lebanon
  • OETC, Oman
  • Abu Dhabi Water and electricity Authority
  • Al Ain Distribution Company, Adu Dhabi
  • Abu Dhabi Transco
  • Abu Dhabi Distribution Company
  • SEC, Saudi Arabia
  • Saudi Arabia Mining Company Ma'aden
  • MEW, Saudi Arabia
  • Ministry of Electricity and Water, Kuwait
  • Kurdistan Regional Government, Iraq (Project with UNDP - End Client was KRG)
  • Kuwait Oil Company
  • Public Establishment for Electrical Generation and Transfer - PEEGT, Syria

 

North America

 

·         SRP Arizona, USA

·         SNC Lavalin, Canada

 

 

No. of Employees :

2600 (approximately)

 

 

Bankers :

·         Bank of India, Gutibori Branch, Nagpur, Maharashtra, India

·         ICICI Bank Limited

·         Canara Bank

·         Central Bank of India

·         State Bank of Bikaner and Jaipur

·         Dena Bank

·         Allahabad Bank

·         State Bank of Hyderabad

·         Development Credit Bank Limited

·         Punjab National Bank

·         Bank of Baroda

·         Abu Dhabi Commercial Bank Limited

·         The Hongkong and Shanghai Banking Corporation Limited

·         SBI Commercial and International Bank Limited

·         Standard Chartered Bank

·         Deutsche Bank AG

·         Industrial Development Bank of India Limited

·         Export-Import Bank of India

·         Syndicate Bank

·         UCO Bank

·         Andhra Bank

·         BNP Paribas

·         Barclays Bank PLC

·         Corporation Bank

·         Yes Bank Limited

·         ING Vysya Bank Limited

·         State Bank of India

·         Axis Bank Limited

·         Metropolitan Bank, Philippines

·         Commercial Bank of Ethiopia, Adis Ababa (Ethiopia)

·         Commercial Bank of Ethiopia, Dessie (Ethiopia)

·         Commercial Bank of Ethiopia, Bedele (Ethiopia)

·         Commercial Bank of Syria, Syria

·         First Gulf Bank, Abudhabi

·         Al- Ahli Bank of Kuwait

·         Commercial Bank of Qatar

·         UBA Bank, Nigeria

·         Bank Tejarat (Irano-British Bank), Iran

·         Bank Tejarat (Bank of Iran and The Middle East), Ira

·         STB Bank, Tunisia

·         Banque Nationale D’ Algerie

·         Al- Ahli Bank of Kuwait

·         First Gulf Bank, Abu Dhabi

·         Union National Bank, Abu Dhabi

·         Abudhabi Commercial Bank, Abudhabi

·         National Bank of Abu Dhabi, U.A.E.

·         Habib Bank Zurich, U.A.E.

·         Bank Muskat

·         Intercontinental Bank of Lebanon

·         Bank TuranAlem, Tenge (Kazakhstan)

·         Indo Zambia Bank, Zambi

·         Taib Bank, Kazakhstan

·         Standard Bank, Namibia

·         Eco Bank, Mali

·         National Bank of Egypt

·         Bank of PHB, Nigeria

·         Saudi Hollandi, Saudi Arabia

·         Bank Saudi Fransi, Saudi Arabia

·         Kazcommerce Bank , Tajikistan

·         Bank Muscat , Saudi Arabia

·         National Bank of Oman

·         First Gulf Bank , Mozambique

·         Standard Bank , Mozambique

·         National Bank of Kuwait

·         Municipal Co Op Bank, Mumbai

·         Arab National Bank, Saudi Arabia

·         Gumhoria Bank, Tripoli (Libya)

·         Bank Tejarat (Irano–British Bank), Iran

·         Bank Habitat, Lebanon

·         STB Bank, Tunisia

·         Union National Bank, Abu Dhabi

·         Bank Tejarat (Irano-British Bank),Iran

·         Bank Mellat (Bank of Tehran), Tehran

·         Union National Bank, Abu Dhabi

 

 

Facilities :

Secured Loans

31.03.2010 (Rs. In Millions)

31.03.2009

(Rs. In

Millions) 

Loans and advances from Banks

7199.019

5839.384

Loans and advances from Others

556.070

0.000

Total

7755.089

5839.384

 

 

Unsecured Loans

 

31.03.2010 (Rs. In Millions)

31.03.2009

(Rs. In

Millions) 

Short term loans and advances

 

 

From Banks

--

101.138

Other loans and advances :

From others

101.048

266.385

From Banks

(Repayable within one year Rs.101.48 millions, previous year Rs.165.337 millions)

11.300

11.300

Total

112.348

378.823

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskin and Sells

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Wholly Owned Subsidiaries :

·         RPG Transmission Nigeria Limited

·         KEC Global FZ - LLC, Ras UL Khaimah

 

 

Joint Ventures:

 

·         Al-Sharif Group and KEC Company Limited, Saudi Arabia (formerly known as Faiz Abdul Hakim Al-Sharif Group and KEC Company Limited, Saudi Arabia)

·         Hilltop Infrastructure Inc. USA

·         KEC Power India Private Limited

 

 

 

CAPITAL STRUCTURE

                     

(As on 31.03.2010)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

60000000

Equity Shares

Rs.10/- each

Rs.600.000 millions

1500000

Redeemable Preference Shares

Rs.100/- each

Rs.150.000 millions

 

 

 

 

 

Total

 

Rs.750.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

49344606

Equity Shares

Rs.10/- each

Rs.493.446 millions

 

 

 

 

 

 

 

 

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

493.446

493.446

597.467

2] Equity Share Suspense

20.731

0.000

0.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

7161.569

5092.207

4354.255

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

7675.746

5585.653

4951.722

LOAN FUNDS

 

 

 

1] Secured Loans

7755.089

5839.384

5906.238

2] Unsecured Loans

112.348

378.823

11.452

TOTAL BORROWING

7867.437

6218.207

5917.690

DEFERRED TAX LIABILITIES

461.105

298.212

200.394

 

 

 

 

TOTAL

16004.288

12102.072

11069.806

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

6750.240

5032.415

4314.447

Capital work-in-progress

378.644

503.824

168.772

Advances for capital expenditure

4.383

9.996

20.182

 

 

 

 

INVESTMENT

18.694

17.567

4.647

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2497.529

2257.814

2053.328

 

Sundry Debtors
19449.195

18509.686

14300.060

 

Cash & Bank Balances
678.011

1365.353

680.195

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
3972.552

3265.583

2701.415

Total Current Assets
26597.287

25398.436

 19734.998

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

Sundry Creditors
9581.183

9635.571

12633.023

 

Other Current Liabilities
7607.667

8780.261

 

 

Provisions
556.110

444.334

540.217

Total Current Liabilities
17744.960

18860.166

13173.240

Net Current Assets
8852.327

6538.270

6561.758

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

16004.288

12102.072

11069.806

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

38772.439

34273.926

28144.745

 

 

Other Income

9.893

5.914

2.502

 

 

TOTAL                                     (A)

38782.332

34279.840

28147.247

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials

20108.935

19758.321

14154.686

 

 

Erection and Subcontracting Expenses

9504.382

5746.226

6180.052

 

 

Personal Expenses

1681.434

1416.099

1208.926

 

 

Other Expenses

3620.401

4353.475

3057.859

 

 

TOTAL                                     (B)

34915.152

31274.121

24601.523

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

3867.180

3005.719

3545.724

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

865.263

999.821

676.542

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

3001.917

2005.898

2869.182

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

262.435

227.481

250.650

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2739.482

1778.417

2618.532

 

 

 

 

 

Less

TAX                                                                  (H)

1029.570

615.490

896.923

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1709.912

1162.927

1721.609

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

3048.461

2394.509

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Capital Redemption Reserve

0.000

104.028

 

 

 

Transfer to General Reserve

170.991

116.293

NA

 

 

Dividend on Equity Shares

308.506

246.723

 

 

 

Tax on distributed Profits

52.431

41.931

 

 

BALANCE CARRIED TO THE B/S

4226.445

3048.461

 

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

4677.128

7213.900

 

 

TOTAL EARNINGS

4677.128

7213.900

 

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

893.506

371.158

 

 

Stores & Spares

1.255

2.872

NA

 

 

Purchase of Fixed Assets

40.155

131.334

 

 

TOTAL IMPORTS

934.916

505.364

 

 

 

 

 

 

 

Earnings Per Share (Rs.)

34.53

23.57

39.56

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

 

(1ST Quarter)

(2nd Quarter)

(3rd Quarter)

Net Sales

8243.500

9502.700

8693.600

Total Expenditure

7464.700

8632.400

7845.700

PBIDT (Excl OI)

778.800

870.300

847.900

Other Income

0.000

0.000

0.000

Operating Profit

778.800

870.300

847.900

Interest

264.200

198.600

246.400

Exceptional Items

0.000

(84.900)

0.000

PBDT

514.600

586.800

601.500

Depreciation

83.200

85.400

86.000

Profit Before Tax

431.400

501.400

515.500

Tax

224.400

188.300

164.400

Profit After Tax

207.000

313.100

351.100

Net Profit

207.000

313.100

351.100

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.41

3.72

6.12

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
7.07

5.19

9.30

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
11.18

5.84

10.89

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.36

0.32

0.53

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.34

4.49

3.86

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.50

1.35

1.50

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SCHEME OF AMALGAMATION                                    

 

The Scheme of Amalgamation for merger of the erstwhile RPG Cables Limited with the company has become effective on 31st March 2010 after obtaining all necessary statutory approvals. The consolidation has resulted in an integrated operation which qualifies the company to participate in the market for cable laying projects and in house cabling, besides providing synergy benefits to the existing operations. Consequently the consolidated operations of the company comprise of the Engineering, Procurement and Construction (EPC) business in power transmission, distribution, substations, railways, telecom and cables.

 

PERFORMANCE

 

The company has achieved a net turnover of Rs.38772.400 millions and a net profit of Rs.1709.900 millions in the current financial year as against net turnover of Rs.34273.900 millions and net profit of Rs.1162.900 millions in 2008-09. Earnings before interest, depreciation and tax (EBITDA) is Rs.3867.200 millions in 2008-09.

 

The year was eventful with successful completion of several projects in south Asian and international markets including the first 400 kV transmission line in Ethiopia and a 765 kV line in South Africa. Various projects awarded to the company for transmission, distribution, substation and railways in international and south Asian markets were executed on schedule. The company has recently commenced manufacturing instrumentation and fire survival cables and has begun to undertake turnkey projects as well. A Build Own Operate project for the Universal Services Obligation Fund under the Department of Telecommunications was also successfully completed during the year.

 

ORDER BOOK AND BUSINESS OUTLOOK

 

The order book of the company at over Rs.55000 millions is a healthy mix of business across different geographies and segments. The company obtained orders from new markets like Cameroon and Peru, thereby widening its global presence and made a successful re-entry in Kuwait. Large orders secured from Algeria, Mali, Abu Dhabi, Kuwait and Oman including an Emergency Line Restoration System project obtained from a private sector client in Abu Dhabi has led to further penetration into existing markets. Major projects were bagged in India from the high potential North East and Western region for transmission business. The distribution and subtstation business of the company was able to secure new projects under the Rajiv Gandhi Grameen Vidyutikaran Yojana scheme. The order book from Railways business was further diversified by projects won in various areas of railway infrastructure.

 

The Government of India has provided significant impetus to the power sector development by encouraging entry of private sector in power generation and enabling private sector participation in transmission and distribution of power. These initiatives are aimed at improving capacity addition in power and reaching power to rural households spread across the length and breadth of the country. These would generate attractive business opportunities to the transmission, distribution, substations and cables business of the company.

 

The Central Asian region holds enormous opportunities for EPC projects. There has been steady revival in the Middle East markets due to stabilization of crude prices and with the improvement in commodity prices, fairly robust recovery is also expected in the African region.

 

Many projects in the Railways business are being floated for construction of new lines, earth works, bridge work, gauge conversion, doubling of lines and electrification. With extensive tower sharing being carried out by telecom service providers, the demand for telecom towers is restricted, though opportunities may open up due to implementation of 3G services.

 

SHARE CAPITAL

 

In terms of the Scheme of Amalgamation of RPG Cables Limited with KEC International Limited and their respective shareholders, the company has on 26th April 2010 issued and allotted 20,73,068 fully paid-up equity shares of Rs.10/- each of the company to the equity shareholders of the erstwhile RPG Cables Limited. As a result, the aggregate paid-up equity share capital of the company stands at Rs.514.200 millions consisting of 5, 14, 17, 674 fully paid-up equity shares of Rs.10/- each.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

ABOUT THE COMPANY

 

The company is a global leader in the engineering, procurement and construction (EPC) business executing power transmission, distribution, substations, railways and telecom projects and offering designing and engineering, tower testing, satellite and GPRS surveys and hotline stringing services. The merger of the erstwhile RPG Cables Limited with the company has added the business of power and telecom cables as a new business avenue and the company would utilize its scale and resources to pursue growth opportunities in the cables EPC business.

 

The company’s global operations span across 24 countries. The company is present in India, Afghanistan, Algeria, Egypt, Ethiopia, Kazakhstan, Kenya, Mali, Nigeria, Oman, Saudi Arabia, South Africa, Tajikistan and United Arab Emirates among several other countries and during the year has further expanded its market by entering Cameroon and Peru and through its subsidiary and joint venture companies, in Chad and Mozambique.

 

A new sophisticated Tower Testing station, the largest of its kind in the world and also the most advanced, using cutting edge technology, SCADA system and PROFIBUS controls, with capacity for testing towers up to 35 X 35 m base dimensions, 100 meters high and with voltage rating up to 1200 kV has been inaugurated at Butibori, Nagpur in April 2010 to facilitate validation of the largest towers ever designed for the country’s Extra High Voltage energy network.

 

OVERVIEW OF THE ECONOMIC CONDITIONS

 

Although the fiscal year 2009-10 began as a difficult one with significant economic slowdown in countries across the world, the global economy and specifically Asian economies like China and India posted a recovery by the end of the year. While world trade is gradually picking up, the other indicators of economic activity such as capital flows, assets and commodity prices are more optimistic.

 

India was among the first few countries in the world to implement a broad-based stimulus package to respond to the negative fallout of the global slowdown and one of the first to emerge out of the global slowdown. An analysis of growth figures, fundamentals and various other statistical trends in the economy suggest that the nation’s mediumand long-term prospects are encouraging and that the Gross Domestic Product in India is expected to grow around 7 to 8 per cent.

 

Electricity generation in India emerged from the lackluster growth witnessed in the previous year and equaled its performance in 2007-08 despite several constraints. The growth rate in the manufacturing sector, notable turnaround since the second quarter of 2009-10 in core industries and infrastructure services including power, railway transport and telecommunications also justifies optimism for the Indian economy.

 

 

EPC INDUSTRY STRUCTURE, DEVELOPMENTS AND OUTLOOK

 

TRANSMISSION

 

INDIA

 

The need for electrical energy grew unabated which has called for growth in generation capacity and optimal utilization of generating resources through effective transmission and distribution systems. During April-December 2009, the peak and total energy deficits were 12.6 per cent and 9.8 per cent respectively.

 

While a capacity addition target of 78,700 MW had been set for the 11th Plan, according to the latest assessment of Central Electricity Authority, a capacity addition of 62,374 MW is likely to be achieved with a high level of certainty during 11th Plan period. The Central Government in the Union Budget 2010-11 has provided Rs.17.300 millions for infrastructure development, which accounts for over 46% of total plan allocation and Rs.51300 millions (Rs.22300 millions in 2009-10) for power sector excluding the Rajiv Gandhi Grameen Vidyutikaran Yojana scheme.

 

Out of nine sites identified by the Central Electricity Authority in consultation with the States for development of Ultra Mega Power Projects (UMPPs) comprising of 765kV and 400kV Lines and Substations having capacity of approximately 4,000 MW each, on a Build, Own, and Operate (BOO) basis, four projects have been awarded to project developers on the basis of tariff based competitive bidding and few more projects are likely to be brought to the bidding stage. The strengthening of the National Power Grid through high capacity AC EHV lines and 765 kV UHV AC lines/ HVDC lines has been envisaged by the Government of India to facilitate transfer of power within and across the regions  upto 37,700 MW by 2012. The UMPP and the inter-state and inter-regional transmission system offer good prospects for evacuating and transmitting power from one region to the other.

 

SOUTH ASIA

 

South Asian markets have been floating mainly small and mid size projects in power transmission during the year. A number of larger projects are expected to be offered in South Asian markets in near future.

 

INTERNATIONAL

 

Many large power generating projects are being planned in the Middle East region to address power shortage problems as a result of which there is likely to be considerable demand for new transmission lines associated with these power plants. In addition to this, inter-country/regional interconnection lines are being planned which, going forward, will offer immense opportunities to EPC contractors like the company.

 

With the global economy coming back on track, the donor countries and multilateral agencies have again started allocating funds for new projects in the African region. In addition to that, the number of inter-government funded projects are also expected to increase. The company has a strong presence in the African continent with projects in Namibia, Egypt and South Africa besides having secured some large orders in Algeria and Tunisia recently. Central Asian region continues to be a high potential market with many large projects in the pipeline.

 

DISTRIBUTION AND SUBSTATIONS

 

The Government of India has in the recent budget announced substantial allocation for Rural Electrification under the Rajiv Gandhi Grameen Vidyutikaran Yojana. It has also allocated funds for the Restructured Accelerated Power Development and Reform Programme. Both these schemes are under the banner “Power for All – 2012” which is expected to be extended further by the Government of India.

 

In the overseas market, similar rural electrification, semi urban and urban electrification schemes, funded by multi national agencies are also envisaged, particularly in the developing countries in the African region.

 

CABLES

 

Demand for power cables is dependent on the growth in sectors like Power, Real Estate, Steel, Refineries, Railways, etc. Increase in generating capacity in the 11th Plan, private investment in power generation and privatization of distribution together with the large demand-supply gap in power requirements of the country, are expected to play a significant role in the requirement of power cables in the country.

 

Railways, Department of Telecommunications and private operators continue to require Jelly Filled and Optic Fiber Cables for their growing networks. There exists a good demand for Jelly Filled and Optic Fiber Cables from various developing countries as well. The expected defence tenders for laying optical fiber network would also provide business opportunities for cables. The requirement for Telecom and Signaling cables is also anticipated to go up due to increase in the capital expenditure planned in infrastructure business.

 

RAILWAYS

 

During the 11th Five Year Plan period, electrification of 3,500 route km is planned with an outlay of about Rs.30000 millions, taking the percentage of electrified railway network to 33.4 per cent. The Central Government in the Union Budget 2010- 11 has allocated Rs.167520 millions for Railways. 25,000 route km are proposed to be added to Indian railways by 2020 and Rs.44110.000 millions have been allocated in the railway budget for the year 2010-11 for construction of new lines.

 

Metro rail projects are being implemented in Delhi, Kolkata, Mumbai, Bangalore and Hyderabad and are also expected to be in several other cities. The Dedicated Freight Corridor (DFC) projects viz., Western DFC (1,483 km) and Eastern DFC (1,806 km) are being implemented by the Dedicated Freight Corridor Corporation of India Limited and are expected to be operational before 2020. Along the Western DFC alignment, the Delhi-Mumbai Industrial Corridor is also being set up and feasibility studies have been completed.

 

TELECOM

 

Sharing of telecom services by telecom operators instead of rolling out new sites has reduced the demand for towers.   However, allocation of spectrum for 3G and broadband wireless access (BWA) services may increase the requirements for tower supplies. Tower management business is going through a consolidation phase and the excess capacity and reduction in capital expenditure by the operators may have a bearing on revenue generation in this market.

 

OPPORTUNITIES

 

The revival of core sectors of the economy and increase in infrastructure spending would have positive impact on the growth of the EPC business. The business opportunities for the industry look promising with numerous power and infrastructure projects anticipated in India and abroad. The strong global presence, timely completion of projects and established good reputation of the company would support growth of the business.

 

THREATS

Possible changes in Business Scenario

 

Uncertainty in the global economy leading to potential reduction in investments in infrastructure may result in reduced order book. The political and environmental issues in India and across various countries determine the actual investments made in this sector.

 

Competition

 

Entry of new players, changes to technology and pricing lead to continued challenges for the business.

 

PERFORMANCE

 

Large manufacturing and execution capacities, proven in-house design and testing capability, domain knowledge, ability and experience of working in difficult and diverse terrains and global presence have enabled bagging of orders above Rs.55000 millions from different locations. During the year, fifteen projects were successfully completed in the international markets including the first 400 kV transmission line in Ethiopia, a 765 kV line in South Africa and a tower supply order in Australia. The project for setting up Egypt’s first 500 kV double circuit line is progressing very well. The company continued to expand its global footprint by entering new countries.

 

During the year, the company has entered Cameroon and Peru and re-entered Kuwait. The company secured major orders in Algeria, Abu Dhabi, Kuwait, Oman and Mali during the year. In Abu Dhabi, the company has diversified its client base and is executing its first ever international Emergency Line Restoration System project for a private sector client and has also won a large 400 kV Quad circuit line order.

 

The company entered the high-potential North-East India region with four projects in that region and also won major orders from Maharashtra State Electricity Transmission Company Limited. The company completed twelve projects in the South Asia region during the year.

 

The company was successful in bagging orders under the Rajiv Gandhi Grameen Vidyutikaran Yojana scheme for rural electrification in Madhya Pradesh and Maharashtra thereby maintaining its position as a well established player and a high performer in the distribution space in the country. The company was also successful in bagging orders for large number of 220 kV and 132 kV bays in the state of Maharashtra. The order in Ghana for a 161 kV substation marked a breakthrough for the company in the West Africa region in the substation business. In addition, the company bagged further substation orders in Kenya after having successfully completed the earlier project in the country.

 

The renewed focus on EHV cables market and penetration in both the domestic and exports market has resulted in the growth of the cables business of the company. The company has recently commenced manufacturing Instrumentation Cables, Fire Survival Cables and also undertaking Turnkey Projects.

 

The company is a major player in the railway Overhead Electrification works and has also entered new railway segments during the year. A Build-Own-Operate (BOO) Project for Universal Services Obligation Fund under Department of Telecommunication was successfully completed during the year under which 375 towers were set up in Chhattisgarh, Mizoram and Meghalaya.

 

FINANCIAL PERFORMANCE

 

The company has earned a net profit of Rs.1709.900 millions on Net Sales of Rs.38772.400 millions in the current financial year as against Rs.1162.900 millions on Net Sales of Rs.34273.900 millions respectively in 2008-09. The Earnings Before Interest, Depreciation and Tax (EBITDA) is 9.97% as against 8.77% in last year. The Earnings per share in the current financial year is Rs.34.53 as against Rs.23.57 in 2008-09.

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12. 2010

 (Rs. In Millions)

Particulars

Quarter Ended

Nine Months Ended

 

31.12.2010

Unaudited

31.12.2010

Unaudited

Gross sales/Income from operations

8908.100

27043.300

Less: Excise duty

217.200

612.600

Net sales/ Income from operations

8690.900

26430.700

Other operating income

2.700

9.100

Expenditure

 

 

a) (Increase) / Decrease in stock in trade and work in progress

(286.600)

(457.300)

b) Consumption of raw materials

4667.700

13971.200

c) Purchase of traded goods

--

--

d) Erection and Subcontracting Expenses

1948.800

5775.400

e) Employees cost

526.200

1531.400

f) Depreciation

86.000

254.600

g) Other expenditure

989.600

3122.100

h) Total

7931.700

24197.400

Profit from operations before other income, interest and exceptional Items

761.900

2242.400

Other income

--

--

Profit before interest and exceptional Items

761.900

2242.400

Interest

246.400

709.200

Profit after Interest but before Exceptional Items

515.500

1533.200

Exceptional Items

--

84.900

Profit (+)/Loss(-) from Ordinary Activities before tax

515.500

1448.300

Tax expense

164.400

577.100

Net Profit (+)/Loss(-) from Ordinary Activities after

tax

351.100

871.200

Extraordinary Items

--

--

Net Profit (+) / Loss (-) for the year period

351.100

871.200

Paid up equity share capital (Face value of Rs.2/- per share)

514.200

514.200

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

--

--

Basic and diluted EPS before and after Extraordinary items

1.37

3.39

Public shareholding

 

 

          Number of shares

150016225

150016225

          Percentage of shareholding

58.35%

58.35%

Promoters and Promoters group Shareholding-

 

 

a) Pledged /Encumbered

 

 

Number of shares

Nil

Nil

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

Nil

Nil

Percentage of shares (as a % of total share capital of the company)

Nil

Nil

b) Non  Encumbered

 

 

Number of shares

107072145

107072145

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

100.00%

100.00%

Percentage of shares (as a % of total share capital of the company)

41.65%

41.65%

 

Note:

 

1. The above results of the Company were reviewed by the Audit Committee and approved by the Board of Directors.

2. The statutory auditors of the Company have conducted a “Limited Review” of the result for the quarter and nine months ended 31.12.2010.

3. Consequent to the amalgamation of the erstwhile RPG Cables Limited with the Company with effect from 01.03.20l0 the figures for the quarter and nine months ended 31.12.2010 are not directly comparable with those of the corresponding previous period.

4. The Company is primarily engaged in the business of Engineering Procurement and Construction (EPC). As such there is no separate reportable segment as defined by the Accounting Standard (AS) 11 - “Segment Reporting” notified under the Companies (Accounting Standards) Rules, 2006.

5. Pursuant to the approval accorded by the members of the company through postal ballot on 20.12.2010 and upon completion of other regulatory formalities, each fully paid up equity share of face value of Rs. 10/-  of the company, on the record date i.e 31.12.2010 is split/sub-dividend into five equity share of face value of Rs. 2/- each fully paid up. Accordingly, the basic and diluted earning per share (EPS) for the corresponding periods has been adjusted in accordance with the accounting standard 20 “earning per share”. 

6. There was no investor complaint pending at the beginning of the quarter. Five complaints were received during the quarter ended 31.12.2010 and which were resolved and no complaint was pending as at the quarter end.

7. Previous period’s figures have been regrouped wherever necessary.

 

Contingent Liabilities in respect of:

 

31.03.2010

(Rs. in millions)

(i) Income tax of Summit Securities Limited (formerly known as KEC Infrastructures Limited)

 

(ii) Taxation Matters

 

(iii) Demands of employees/subcontractors

 

(b) Bills discounted

1669.561

(c) Guarantee given to a bank for credit facilities extended to the wholly owned subsidiary company Rs. 513.564 millions (Previous year Rs. Nil.) Credit facilities outstanding as at the year end

 

(d) Performance guarantee given to a customer of the wholly owned subsidiary company.

1981.746

(e) Bank guarantees provided by the company to a customer of the wholly owned subsidiary company in connection with the contract awarded.

182.211

 

 

 FIXED ASSETS:

 

  • Freehold and Leasehold Land
  • Buildings
  • Plant and Machinery
  • Computers
  • Furniture and Fixtures
  • Electrical Installations
  • Vehicles
  • Computer Softwares
  • Brand
  • Goodwill

 

WEBSITE DETAILS:

 

COMPANY

 

Subject is one of the largest Power Transmission Engineering, Procurement and Construction (EPC) companies in the world. KEC, a Rs.40000 millions turnover company of the RPG Group, has made an indelible mark on the world map by constantly and consistently re-engineering itself to retain its position of leadership in the areas of quality, technology, capacity and capability. KEC has gone from strength to strength successfully exporting its EPC services to over 43 countries and widening its client base across the world.

 

KEC's strengths lie in Design, Manufacture, Supply and Construction of Turnkey Projects in the areas of Power Transmission lines up to 1200 kV, Power Distribution networks, Substations , Telecom , Railways, Cabling and Engineering Services. It has also developed in-house expertise to execute hot line stringing and Optical Ground Wire (OPGW) jointing.

 

KEC today has excellent Project Management capabilities in five major business areas:

 

·         Power Transmission

·         Power Distribution and Design Services

·         Telecommunications Infrastructure

·         Railway Infrastructure

·         Cables Manufacturing

 

PRESS RELEASE:

 

PAT up by 25%;Order book jumps to Rs.80000.000 Millions.

 

  • PAT at Rs. 580.000 millions, up by 25% Y-o-Y.
  • EBITDA margin increases by 130 basis points to 11.6%.
  • Revenue at Rs. 10710.000 millions, up by 13% Y-o-Y.
  • Current order book is robust and highest ever at Rs. 80000.000 Millions.

 

 

Mumbai, 31.01.2011: , KEC International Limited (KEC), one of the leading players in the Infrastructure EPC space and a global leader in the power transmission EPC business, today announced its unaudited consolidated results for the quarter ended 31.12.2010.

 

The Company's consolidated net revenue stood at Rs. 10710.000 millions as against Rs. 9490.000 millions in the corresponding quarter of the previous year, registering a growth of 13%.

 

Consolidated EBITDA was Rs. 1250.000 millions at 11.6% of revenue as against Rs. 970.000 millions at 10.3% of revenue in the corresponding quarter of the previous year, registering an increase of 130 basis points.

 

Consolidated Profit after Tax (PAT) for the quarter was Rs. 580.000 millions, up by 25% as compare to the corresponding quarter of the previous year. PAT Margin has increased by 110 basis points to 5.4% of revenue.

 

The Company’s wholly owned subsidiary SAE Towers’ Revenue for the quarter stood at Rs. 1490.000 millions at EBITDA margins of 19.8%. SAE has secured orders worth Rs. 2800.000 millions during the quarter.

 

The Company’s current order book is at an all time high at Rs. 80000.000 millions. Of this 47% comes from the South Asia market and the balance 53% from the International market.

 

“We are happy to see good performance of SAE Towers during the quarter. We have healthy order book and a sizeable amount of tenders in the pipeline,” said Ramesh Chandak, MD and CEO of KEC International Limited.”

 

About KEC International Limited

KEC International, a RPG Group Company, is one of the leading players in the Infrastructure Engineering, Procurement and Construction (EPC) space. The Company has a significant presence in the segments of Power Transmission, Power Distribution, Railways, Telecom and Manufacturing of Cables and Towers. The company has made an indelible mark on the world map by powering infrastructure development in over 45 countries across the globe.

 

About RPG Enterprise.

RPG Enterprises, established in 1979, is one of India’s fastest growing business groups with a turnover touching Rs. 170000.000 millions. The group has more than sixteen companies managing diverse business interests in the areas of Infrastructure, Tyre, IT, Power, Retail, Entertainment, Carbon Black and Specialty.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.44.99

UK Pound

1

Rs.73.23

Euro

1

Rs.62.80

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

64

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.