MIRA
INFORM REPORT
|
Report Date : |
09.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
LANCO INFRATECH LIMITED |
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Registered
Office : |
Plot No.4, Software Units Layout, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
26.03.1993 |
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Com. Reg. No.: |
01-015545 |
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Capital
Investment / Paid-up Capital : |
Rs. 2387.193 millions |
|
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|
CIN No.: [Company Identification
No.] |
L45200AP1993PLC015545 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDL00805A |
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PAN No.: [Permanent Account No.] |
AAACL3499H |
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|
Legal Form : |
Public Limited Liability
Company. Company’s Shares are listed on the stock Exchange. |
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Line of Business
: |
Subject is engaged in Construction and Development of
Infrastructure Facilities, Property Development, Generation of Power and
Trading in Power. |
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|
No. of Employees
: |
Around 3200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
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 126425000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having good 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 good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Plot No.4, Software Units Layout, |
|
Tel. No.: |
91-40-40090400 |
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Fax No.: |
91-40-23116109 |
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E-Mail : |
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Website : |
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Corporate Office : |
Lanco House, Plot No 397 Udyog Vihar, Phase III Gurgaon
122 016, Haryana, India |
|
Tel. No.: |
91-124-4741000 - 044 |
|
Fax No : |
91-124-4741764 |
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|
|
|
Factory : |
Plot No. 229, Udyog Vihar, Phase No. I, Gurgaon – 122 016, |
|
Tel. No.: |
91-124-4691000/ 46910001/ 46910002/ 46910003/ 46910004 |
|
Fax No.: |
91-124-46910005 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. L. Madhusudhan Rao |
|
Designation : |
Executive Chairman |
|
Date of Birth/Age : |
42 Years |
|
Qualification ; |
M. Tech, M.S. (Industrial Engg) |
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Experience : |
19 Years |
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Name : |
Mr. G. Bhaskara Rao |
|
Designation : |
Executive Vice Chairman |
|
Date of Birth/Age : |
53 Years |
|
Qualification ; |
M.E. (Mechanical Design) |
|
Experience : |
27 Years |
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|
Name : |
Mr. L. Sridhar |
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Designation : |
Vice- Chairman |
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Name : |
Mr. G. Venkatesh Babu |
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Designation : |
Managing Director |
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Name : |
Dr. P. Kotaiah |
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Designation : |
Director |
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Name : |
Mr. P. Abraham |
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Designation : |
Director |
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Name : |
Dr. Uddesh Kumar Kohli |
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Designation : |
Director |
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Name : |
Mr. P. Narasimharamulu |
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Designation : |
Director |
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Name : |
Dr. B. Vasanthan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. J. Suresh Kumar |
|
Designation : |
Chief Financial Officer |
|
Date of Birth/Age : |
38 Years |
|
Qualification : |
ACA |
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Experience : |
13 Years |
|
Date of Commencement : |
01.04.2006 |
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|
|
|
Name : |
Mr. C. Krishna Kumar |
|
Designation : |
Executive Director and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
219519903 |
9.12 |
|
|
335881915 |
13.95 |
|
|
93204001 |
3.87 |
|
|
92593586 |
3.85 |
|
|
610415 |
0.03 |
|
|
648605819 |
26.94 |
|
|
|
|
|
|
1017830524 |
42.27 |
|
|
1017830524 |
42.27 |
|
Total shareholding of Promoter and Promoter Group (A) |
1666436343 |
69.21 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8632112 |
0.36 |
|
|
44848854 |
1.86 |
|
|
318502507 |
13.23 |
|
|
371983473 |
15.45 |
|
|
|
|
|
|
94192967 |
3.91 |
|
|
|
|
|
|
141101550 |
5.86 |
|
|
26598354 |
1.10 |
|
|
107492233 |
4.46 |
|
|
76806583 |
3.19 |
|
|
13275304 |
0.55 |
|
|
16738756 |
0.70 |
|
|
669910 |
0.03 |
|
|
1680 |
-- |
|
Total Public shareholding (B) |
369385104 |
15.34 |
|
Total (A)+(B) |
2407804920 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
|
|
|
Total (A)+(B)+(C) |
2407804920 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Construction and Development of
Infrastructure Facilities, Property Development, Generation of Power and
Trading in Power. |
PRODUCTION STATUS (As On 31.03.2011)
|
Particulars |
Licensed
Capacity |
|
Licensed Capacity |
Not Applicable |
|
Installed Capacity (MW)# |
18 |
|
Actual Generation (Lakhs Kwh) |
268.98 |
|
Auxiliary Consumption (Lakhs Kwh) |
1.89 |
|
Units Sold (Lakhs Kwh) |
266.31 |
GENERAL INFORMATION
|
No. of Employees : |
Around 3200 (Approximately) |
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|
|
|
Bankers : |
·
Allahabad Bank ·
Andhra Bank ·
Bank of Baroda ·
Bank of Maharashtra ·
Canara Bank ·
Central Bank of India ·
Corporation Bank ·
DBS Bank Limited ·
Dena Bank ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Indian Overseas Bank ·
IndusInd Bank Limited ·
Infrastructure Development Finance Company
Limited ·
ING Vysya Bank Limited ·
Kotak Mahindra Bank Limited ·
Life Insurance Corporation of India ·
Oriental Bank of Commerce ·
Punjab and Sind Bank ·
Punjab National Bank ·
Srei Infrastructure Finance Limited ·
State Bank of India ·
State Bank of Mysore ·
State Bank of Bikaner and Jaipur ·
State Bank of Hyderabad ·
State Bank of Patiala ·
Syndicate Bank ·
Tata Capital Limited ·
The Catholic Syrian Bank Limited ·
The Jammu and Kashmir Bank Limited ·
UCO Bank ·
Union Bank of India ·
United Bank of India ·
Vijaya Bank ·
Yes Bank Limited ·
Axis Bank Limited |
|
Banking
Relations : |
-- |
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|
|
|
Financial Institutions : |
Ř
Tata Capital Limited Ř
Infrastructure Development Finance company
Limited |
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|
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Auditors 1 : |
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|
Name : |
S.R. Batliboi and Associates C Chartered Accountants |
|
Address : |
Golf View Corporate Tower – B, Sector – 42, Sector Road, Gurgaon –
122002, Haryana, India |
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|
|
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Auditors 2 : |
|
|
Name : |
Brahmayya and Company Chartered Accountant |
|
Address : |
No.48, |
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SUBSIDIARIES : |
1.
Lanco Kondapalli Power Limited (Formerly Lanco
Kondapalli Power Private Limited (LKPL)) 2.
Lanco Tanjore Power Company Limited (Formerly Aban
Power Company Limited (APCL)) 3.
National Energy Trading and Services Limited
(Formerly Lanco Power Trading Limited (NETS)) 4.
Lanco Teesta Hydro Power Private Limited
(Formerly Lanco Energy Private Limited (LTHPPL)) 5.
Lanco Budhil Hydro Power Private Limited
(Formerly Lanco Green Power Private Limited (LBHPPL)) 6.
Lanco Hydro Power Ventures Private Limited
(LHPVPL) 7.
Vamshi Industrial Power Limited (VIPL) 8.
Vamshi Hydro Energies Private Limited (VHEPL) 9.
Lanco Mandakini Hydro Energy Private Limited
(Formerly Lanco Hydro Energies Private Limited (LMHEPL)) 10.
Lanco Power Limited ( Formerly Lanco Amarkantak
Power Limited (LPL)) 11.
Mercury Projects Private Limited (MPPL) 12.
Lanco Wind Power Private Limited (LWPPL) 13.
Lanco Solar Private Limited (LSPL) 14.
Lanco Vidarbha Thermal Power Limited (Formerly
Lanco Vidarbha Thermal Power Private Limited (LVTPL)) 15.
Amrutha Power Private Limited (APPL) 16.
Spire Rotor Private Limited (SRPL) 17.
Lanco Solar Energy Private Limited (Formerly
Lanco Solar Projects (India) Private Limited (LSEPL)) 18.
Bhanu Solar Projects Private Limited (BSPPL) 19.
Diwakar Solar Projects Private Limited (DSPPL) 20.
Khaya Solar Projects Private Limited (KSPPL) 21.
Himavat Power Private Limited (HPPL) 22.
Arneb Power Private Limited(ArPPL) 23.
Regulus Power Private Limited (Formerly Nandigama
Power Private Limited (RPPL)) 24.
Lanco Kanpur Highways Limited (LKHL) 25.
JH Patel Power Project Private Limited (JhPL) 26.
Lanco Hills Technology Park Private Limited
(LHTPPL) 27.
Telesto Properties Private Limited (Formerly
Coral Agro Estates Pvt. Limited (TePPL)) 28.
Cordelia Properties Private Limited (Formerly
Garnet Agro Estates Pvt. Limited (CPCL)) 29.
Dione Properties Private Limited (Formerly
Diamond Farms Pvt. Limited (DPPL)) 30.
Deimos Properties Private Limited (Formerly Ruby
Agro Farms Pvt. Limited (DePPL)) 31.
Pearl Farms Private Limited (PFPL) 32.
Uranus Projects Private Limited (UPPL) 33.
Neptune Projects Private Limited (NPPL) 34.
Cressida Properties Private Limited (CrPPL) 35.
Leda Properties Private Limited (LPPL) 36.
Thebe Properties Private Limited (ThPPL) 37.
Uranus Infratech Private Limited (UIPL) 38.
Coral Orchids Private Limited (COPL) 39.
Jupiter Infratech Private Limited (JIPL) 40.
Lanco Solar Services Private Limited 41.
Lanco Infratech (Mauritius) Limited (LIML) 42.
Lanco International Pte Limited (Formerly Lanco
Enterprise PTE Ltd (LInPL)) 43.
P.T Lanco Indonesia Energy (LInE) 44.
Lanco Solar Holding Netherland B.V 45.
Lanco Solar International Pte Limited 46.
Lanco Holding Netherland B.V 47.
Green Solar SRL 48.
Lanco Enterprise Pte Limited (China) 49.
Lanco Solar International Limited – LSIL 50.
Lanco Italy PV 1 Investments B.V 51.
Lanco Italy PV 2 Investments B.V 52.
Lanco Spain PV1 Investments B.V 53.
Lanco Solar International USA Inc. 54.
LE New York – LLC 55.
Lanco Resources International Pte Limited (LRIPL)
56.
Lanco Power International Pte Limited 57.
Lanco Resources Australia Pty. Limited (LRAPL) 58.
The Griffin Coal Mining Company Pty Limited 59.
Carpenter Mine Management Pty Limited 60.
Lanco Energy Africa 61.
Inversion Solar Andalucia 14 SL 62.
Lanco Rocky Face Land Holdings LLC 63.
Lanco Tracy City Land Holding LLC (USA) 64.
Lanco North Park Land Holding One LLC (USA) 65.
Lanco North Park Land Holding Two LLC (USA) 66.
Apricus S.R.L 67.
Lanco Solar Project Development SL |
|
|
|
|
ENTERPRISES
WHERE SIGNIFICANT
INFLUENCE EXISTS |
1.
Udupi Power Corporation Limited (UPCL) 2.
Lanco Hoskote Highway Private Limited (LHHPL) 3.
Lanco Devihalli Highways Private Limited (LDHPL) 4.
Ananke Properties Private Limited (AnPPL) 5.
Bianca Properties Private Limited (BiPPL) 6.
Belinda Properties Private Limited (BePPL) 7.
Tethys Properties Private Limited (TPPL) 8.
Portia Properties Private Limited ( Formerly
Garnet Groves Private Limited (PPPL)) 9.
Lanco Anpara Power Limited (LAnPL) 10.
Lanco Babandh Power Limited (LBPL) 11.
Charon Trading Private Limited (CTPL) 12.
Mimas Trading Private Limited (MTPL) 13.
Phoebe Trading Private Limited (PTPL) 14.
Bay of Bengal Gateway Terminal Private Limited
(BBGTPL) 15.
Avior Power Private Limited (Formerly Chobia
Hydro Power Private Limited (AvPPL)) 16.
Mirach Power Private Limited (Formerly Dharmasala
Hydro Power Private Limited (MiPPL)) 17.
Pragdisa Power Private Limited (PrPPL) 18.
Vainateya Power Private Limited (VPPL) 19.
Basava Power Private Limited (Formerly Jubilee
Hydro Power Private Limited (BPPL)) 20.
Siddheswara Power Private Limited (Formerly
Diyothal Hydro Power Private Limited (SiPPL)) |
|
|
|
|
ENTERPRISES
WHERE KEY MANAGEMENT PERSONNEL HAVE SIGNIFICANT
INFLUENCE |
1.
Lanfin Ventures Private Limited (LVPL) 2.
Lanco Horizon Properties Private Limited (LHPPL)
(Formerly Uranus Properties Private Limited) 3.
Lanco Group Limited (LGL) 4.
S.V. Contractors (SVC) 5.
Lanco Foundation (LF) (Formerly Lanco Institute
of General Humanitarian Trust) 6.
Lanco Bay Technology Park Private Limited (LBTPL) 7.
Lanco Operation and Maintenance Company Private
Limited (Formerly Sigma 8.
Powertech Services Private Limited (LOMPL)) 9.
Lanco Rani Joint Venture (LR) 10.
Nekkar Power Private Ltmited (NePPL)(Formerly
Chamba Hydro Power Private Limited) |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital : NOT AVAILABLE
Issued, Subscribed & Paid-up Capital : Rs. 2387.193 millions
AFTER 31.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000000 |
Equity shares |
Re.1/- each |
Rs.5000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2407804920 |
Equity shares |
Re.1/- each |
Rs.2407.800
millions |
|
|
Less: Amount Receivable from LCL Foundation Employees Stock Option
Plan (ESOP) Trust |
|
Rs.22.330
millions |
|
|
Total |
|
Rs.2385.470
millions |
NOTE: (Out of the above shares 15,81,24,443 Equity shares of
Rs. 10/- each were allotted as fully paid-up by way of Bonus Shares from
capitalization of Securities Premium).
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2387.193 |
2385.470 |
2198.340 |
|
|
2] ESOP Outstanding |
466.271 |
746.010 |
207.460 |
|
|
3] Reserves & Surplus |
31541.011 |
28474.880 |
16209.320 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
34394.475 |
31606.360 |
18615.120 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
31476.102 |
18893.350 |
9734.390 |
|
|
2] Unsecured Loans |
6494.685 |
8444.130 |
3697.040 |
|
|
TOTAL BORROWING |
37970.787 |
27337.480 |
13431.430 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
53.860 |
178.130 |
|
|
|
|
|
|
|
|
TOTAL |
72365.262 |
58997.700 |
32224.680 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5661.785 |
3988.980 |
3652.750 |
|
|
Capital work-in-progress (including capital advances) |
1020.763 |
334.360 |
223.720 |
|
|
|
|
|
|
|
|
INVESTMENT |
54006.275 |
33941.140 |
20746.210 |
|
|
DEFERREX TAX ASSETS |
52.323 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7618.821
|
4472.140
|
4219.750
|
|
|
Sundry Debtors |
27876.473
|
23039.820
|
11709.200
|
|
|
Cash & Bank Balances |
3256.952
|
3674.840
|
876.010
|
|
|
Other Current Assets |
67.752
|
8.000
|
10.780
|
|
|
Loans & Advances |
58211.333
|
23547.010
|
18366.280
|
|
Total
Current Assets |
97031.331
|
54741.810
|
35182.020 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
|
Other Current Liabilities |
|
|
|
|
|
Provisions |
713.186
|
623.090
|
503.560
|
|
Total
Current Liabilities |
85407.215
|
34008.590
|
27580.020
|
|
|
Net Current Assets |
11624.116
|
20733.220
|
7602.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
72365.262 |
58997.700 |
32224.680 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Income |
58723.194 |
58866.990 |
40825.860 |
|
|
|
Other Income |
428.648 |
1115.150 |
150.610 |
|
|
|
TOTAL (A) |
59151.842 |
59982.140 |
40976.470 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Construction and Operating Expenses |
28528.050 |
34564.900 |
25978.930 |
|
|
|
Other operating expenses |
16498.005 |
11868.180 |
6921.990 |
|
|
|
Salaries, Wages and other employee benefits |
3968.777 |
1896.060 |
1199.550 |
|
|
|
Managerial Remuneration |
159.364 |
117.190 |
114.250 |
|
|
|
Auditor’s Remuneration |
12.964 |
10.780 |
6.470 |
|
|
|
Other Expenses |
1651.627 |
1735.250 |
933.560 |
|
|
|
Provision for Debts/ Claim |
31.850 |
11.640 |
0.000 |
|
|
|
TOTAL (B) |
50850.637 |
50204.000 |
35154.750 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8301.205 |
9778.140 |
5821.720 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
3377.416 |
1979.400 |
1386.120 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4923.789 |
7798.740 |
4435.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
720.630 |
597.710 |
405.260 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
4203.159 |
7201.030 |
4030.340 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1420.000 |
2337.210 |
1381.660 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2783.159 |
4863.820 |
2648.680 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
10717.633 |
5853.820 |
3205.140 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
13500.792 |
10717.640 |
5853.820 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
1.20 |
2.17 |
1.25 |
|
|
|
- Diluted |
1.19 |
2.14 |
1.24 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2011 1st
Quarter |
|
Type |
|
|
|
|
|
Net Sales |
|
|
|
17308.700 |
|
Total Expenditure |
|
|
|
14863.900 |
|
PBIDT (Excl OI) |
|
|
|
2444.800 |
|
Other Income |
|
|
|
115.300 |
|
Operating Profit |
|
|
|
2560.100 |
|
Interest |
|
|
|
1115.900 |
|
Exceptional Items |
|
|
|
0.000 |
|
PBDT |
|
|
|
1444.200 |
|
Depreciation |
|
|
|
223.300 |
|
Profit Before Tax |
|
|
|
1220.900 |
|
Tax |
|
|
|
393.900 |
|
Provisions and contingencies |
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
827.000 |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
827.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.10 |
8.11 |
6.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.15 |
12.23 |
9.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.09 |
12.26 |
10.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.23 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.58 |
1.94 |
2.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.13 |
1.61 |
1.28 |
LOCAL AGENCY FURTHER INFORMATION
NATURE OF OPERATIONS
Subject is an integrated
infrastructure developing company. The company provides engineering,
procurement, construction, commissioning and project management services on a
turnkey basis to the power Sector for thermal (coal fired and gas fired) and
hydro power plants as well and also construction of highways, power plants,
water supply and irrigation projects including dam, tunnels etc.
OPERATIONS REVIEW
:
On a Consolidated
basis the Company has reported Gross Revenues of Rs. 80419.376 millions as
against Rs. 82915.001 millions of
Revenues registered in the Previous Year. Total Expenditure for the Year was
Rs. 70024.598 millions as against Rs. 72838.152 millions in the Previous Year.
The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
amounted to Rs. 21486.605 millions while the same was Rs. 17109.750 millions
for the Previous Year i.e. an increase of 26%. The Profit Before Taxation stood
at Rs. 10394.778 millions, an increase of 3% as compared to Rs. 10076.849
millions in the Last Year. The Net Profit after Tax after adjustment of
Minority Interest and Share of Profits of Associates was Rs.4460.688 millions
as against Rs. 4585.489 millions for the Previous Year. Gross Interest and
Finance charges on consolidated basis amounted to Rs. 7554.486 millions in
comparison to Rs. 3554.108 millions due to increase in loans and Working
Capital Requirements for Project Execution.
MANAGEMENT'S
DISCUSSION AND ANALYSIS:
COMPANY REVIEW
Lanco Infratech
Limited is one of the fastest growing integrated infrastructure development
conglomerates, engaged in power, EPC, solar, natural resources and other
infrastructure projects. Lanco is one of India’s largest private independent
power producers in India. Lanco follows a ‘concept to commissioning’ EPC
execution model that addresses time, cost and quality in every project,
creating an unwavering focus on customer satisfaction by delivering quality
projects. Lanco operates across India and 10 countries globally through its
special purpose vehicles for its various infrastructure development projects.
Over the last 25 years, Lanco has evolved with the rapid economic development
of the country. Lanco has constructed various projects (small, medium, large
and mega) across power, road and port infrastructure and carried out Brownfield
as well as Greenfield projects.
ECONOMIC REVIEW
India sustained
its growth momentum and emerged among the best performing economies globally in
FY 2010-11. Amid a sluggish global recovery, India’s GDP growth rate was 8.6%
by virtue of strong fundamentals, surging domestic demand and well formulated
fiscal policies of the Government of India. The six core industries recorded a
growth rate of 5.9% during FY 2010-11 as against 5.5% in the previous year. The
Government has planned large investments to catalyse the development of the
infrastructure sector, which is expected to accelerate the country’s economic
growth.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
EPC
EPC is a
contracting arrangement, where the contractor designs, procures the necessary materials,
constructs and transfers the completed plant to the owner for an agreed amount.
Under this turnkey way of contracting, the responsibility of the project
completion and other risks involved in the project lies with the contractor.
With enhanced thrust on infrastructure creation over the last decade, there is
a significant momentum in the EPC activities. Various sectors such as oil and
gas, chemicals and petrochemicals, power and other infrastructure have been
opting the EPC way of constructing the plants.
POWER
Power is essential
to sustain the projected GDP growth rate of around 8-9% and to accelerate
India’s socio-economic development. With India’s strong economic performance
over the last decade, additional pressure has been created towards the
development of new capacities for power generation.
SOLAR
With rising global
concerns over climate change and energy security, the focus on clean, green and
sustainable energy is increasing considerably. One of the most powerful sources
of renewable energy is the sun. Countries like Germany, Italy, France, US,
India, China etc are increasing their focus on the development of solar power.
As a result, global installed capacity of solar power is expected to reach 210
GW by FY 2020, from the current levels of just 40 GW in FY 2010
In India, the
Government announced the National Action Plan on Climate Change (NAPCC) through
the Ministry of New and Renewable Energy (MNRE) on June 30, 2008 with a vision
to make India’s economic development energy efficient. The plan included
utilization of solar energy as one of its core eight missions. As a result,
Jawaharlal Nehru National Solar Mission (JNNSM) was launched with a mission to
achieve Solar Power Capacity addition of 20 GW by 2022 (to be implemented in
three phases).
At present,
various players across the country have already signed Solar PV PPAs for 1150
MW (to be constructed by March 2012) and Solar Thermal PPAs for 500 MW (to be
constructed by May 2013). Maharashtra State Utility has already awarded EPC contract
for 125 MW, construction for which is already underway
OPERATIONAL REVIEW
EPC Lanco is one of
the largest EPC contractors in India for the power sector, with an order
book of about Rs.30162.200 millions. The Company has also made investments in
non-conventional solar power sector and intends to capture a significant share
in this space. Some of the major EPC orders executed include Amarkantak (I and
II), Kondapalli, Tanjore (Aban), Udupi (I and II) and Anpara I. In the
construction space, the Company has successfully executed
a wide range of
projects, spanning across power plants (thermal and hydro), highways, airports,
industrial structures, transmission and distribution, chimneys, cooling towers,
water infrastructure and heavy civil structures.
Edge
Expertise in
engineering of coal, gas and hydro-based power projects
A team of
4000-plus qualified and experienced professionals, of which 50% are engineers
and procurement experts
Proficiency in plant
designing and its various aspects including system design and integration,
mechanical design, electrical design, control and instrumentation and civil
works design to meet national and international standards and statutory and
regulatory requirements
Highlights FY 2010-11
Marked entry into
the lucrative third party EPC business through:
·
Balance of Plant (BOP) package contract from
Maharashtra State Power Generation Company Limited (Mahagenco) for 1,980 MW (3
x 660 MW) Koradi Thermal Power Plant
·
EPC Contract by a Moser Baer Power (Madhya Pradesh)
Limited, for their 2 x 600 MW Coal Based Thermal Power Project
·
EPC contract for development of 250 MW gas based
power plant in Iraq
POWER
Lanco has
developed a proven expertise in developing power generation capacities through
conventional and non-conventional sources of energy, such as coal, gas,
biomass, hydro, solar and wind. Its current operating capacity is 3,292 MW, and
is further constructing additional capacities of 6,000 MW. Besides, there are a
number of projects, which are under various stages of development.
EDGE
Presence across
the value chain comprising coal mining, project development, EPC (engineering,
procurement and construction), O and M (operation and maintenance), and trading
Optimizing
resources and utilizing strategic locations to set benchmarks in the power
sector
Capability to identify and develop profitable projects
FINANCIAL REVIEW
PRINCIPLES OF
CONSOLIDATION
The financial statements
of the Company and its subsidiaries have been consolidated on a line by line
basis by adding together the book values of items such as assets, liabilities,
income and expenses after eliminating intra-group balances and the unrealized
profits/ losses on intra-group transactions and are drawn up by using uniform
accounting policies for like transactions and other events in similar
circumstances, and are presented to the extent possible in the same manner as
the Company’s individual financial statements. The financial statements of the
subsidiaries are consolidated from the date on which effective control is
transferred to the company till the date such control exists. The difference
between the cost of investments in subsidiaries over the book value of the
subsidiaries’ net assets on the date of acquisition is recognized as goodwill
or capital reserve in the consolidated financial statements. Equity method of
accounting is followed for investments in Associates in accordance with
Accounting Standard (AS) 23 – Accounting for Investments in Associates in
Consolidated Financial Statements, wherein goodwill / capital reserve arising
at the time of acquisition and share of profit or losses after the date of
acquisition are included in carrying amount of investment in associates.
Unrealized profits and losses resulting from transactions between the company
and Associates are eliminated to the extent of the company’s interest in the
associate. Investments in Associates, which are made for temporary purposes, are
not considered for consolidation and accounted for as investments. The
corresponding entry is adjusted by way of reduction in investment of capital
work-in-progress. Putting it simply, while consolidating the subsidiary company
the elimination takes place at the topline itself where the entire amount of revenue and expenditure are eliminated. In
case of associate consolidation, while the entire revenue is recognized, the
profit or loss earned from the associate is eliminated proportionately to the
holding in that associate company. While this adjustment is for the profit and
loss account, for adjustment to the balance sheet in the
OUTLOOK
Lanco is committed
to undertake new responsibilities and challenges nationally and internationally
by virtue of its strengthened business model and motivated personnel. We are
confident of leveraging global opportunities, while adhering to our cherished
mission, vision and values.
CONTINGENT
LIABILITIES
a) Sales Tax/Entry
Tax Demands disputed by the Company, under appeal Rs.43.403 millions (Previous
Year Rs. 294.000 millions).
b) Income Tax Demands
disputed by the Company relating to disallowances made in various assessment
proceedings, under appeal Rs. 612.600 millions (Previous Year : Rs. 42.220
millions)
c) Service Tax demands
disputed by the Company relating to applicability of service tax to various
services, under appeal works out to Rs. 511.609 millions (Previous Year : Rs.
356.050 millions)
d) Corporate
guarantees given to Financial Institutions, Banks on behalf of other group
companies ` 102953.086 millions (Previous Year : Rs. 38757.820 millions).
FIXED ASSETS
- Goodwill
- Buildings
- Plant and
Machinery
- Office
Equipment
- Furniture and
Fittings
- Vehicles
STANDALONE FINANCIAL RESULTS FOR THE QUARTER
ENDED JUNE 30, 2011
(Rs.
In millions)
|
Particulars |
Quarter Ended 30.06.2011 |
|
|
Unaudited |
|
1. (a) Net Sales /Income from Operations |
17152.600 |
|
1. (b) Other Operating Income |
156.100 |
|
Total Income |
17308.700 |
|
2. Expenditure : |
|
|
a) (Increase)/Decrease in stock in trade and work in progress |
(750.700) |
|
b) Consumption of Materials and construction expenses |
13977.600 |
|
c) Employee Cost |
1216.500 |
|
d) Depreciation |
223.300 |
|
e) Other Expenditure |
420.500 |
|
f) Total (2) |
15087.200 |
|
3. Profit/ (Loss) from Operations before Other Income, Interest and Exceptional Items (1-2) |
2221.500 |
|
4. Other Income |
115.300 |
|
5. Profit/ (Loss) before Interest and Exceptional Items (3+4) |
2336.800 |
|
6. Interest (Net) |
1115.900 |
|
7. Profit/ (Loss) after Interest but before Exceptional Items (5-6) |
1220.900 |
|
8. Exceptional Items |
0.000 |
|
9. Profit / (Loss) from Ordinary Activities before tax (7-8) |
1220.900 |
|
10. Tax expense |
393.900 |
|
11. Net Profit / (Loss) from Ordinary Activities after tax (9-10) |
827.000 |
|
12. Extraordinary items (net of tax expense Rs. Nil) |
0.000 |
|
13. Net Profit / (Loss) for the period (11-12) |
827.000 |
|
14. Paid-up equity share capital (Face Value - Re.1/- per share) |
2388.400 |
|
15. Reserves excluding Revaluation Reserve |
|
|
16. Earnings Per Share (EPS) |
|
|
(a) Basic and Diluted |
0.36 |
|
(b) Basic and Diluted – Weighted Average |
0.35 |
|
17. Public shareholding : |
|
|
- Number of shares |
764760622 |
|
- Percentage of Shareholding |
31.76% |
|
18. Promoters and promoter group Shareholding : |
|
|
a) Pledged/Encumbered |
|
|
- Number of shares |
430098250 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
26.18% |
|
- Percentage of shares (as a % of the total share capital of the company) |
17.86% |
|
b) Non-encumbered |
|
|
- Number of Shares |
1212946048 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
73.82% |
|
- Percentage of shares (as a % of the total share capital of the company) |
50.38% |
SEGMENT- WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF
THE LISTING AGREEMENT - STANDALONE
(Rs. In millions)
|
Particulars |
Quarter Ended 30.06.2011 |
|
|
Unaudited |
|
1. Segment Revenue |
|
|
a. EPC and Construction |
17183.300 |
|
b. Power |
54.900 |
|
c. Infrastructure Development |
70.500 |
|
d. Unallocated |
-- |
|
Total |
17308.700 |
|
Less: Inter-segment Revenue |
-- |
|
Net Sales / Income from Operations |
17308.700 |
|
2. Segment Results |
|
|
a. EPC and Construction |
2312.100 |
|
b. Power |
32.300 |
|
c. Infrastructure Development |
10.600 |
|
d. Unallocated |
(133.500) |
|
Total |
2221.500 |
|
Less: (i) Interest (Net) |
1115.900 |
|
(ii) Other Un-allocable Expenditure net of Un-allocable Income |
(115.300) |
|
Total Profit /
(Loss) before Tax |
1220.900 |
|
3. Capital Employed
(Segment Assets-Segment Liabilities) |
|
|
a. EPC and Construction |
(28713.600) |
|
b. Power |
929.900 |
|
c. Infrastructure Development |
88933.600 |
|
d. Unallocated |
(25812.400) |
|
|
|
|
Total |
35337.500 |
WEBSITE DETAILS
BUSINESS
DESCRIPTION
Subject is an integrated infrastructure development company. The Company
has five segments: EPC and Construction, which involves construction of
industrial, residential and commercial buildings and roads, engineering,
procurement and commissioning (EPC); Power, which generation of power and
trading in power; Property Development, which involves development of
integrated properties consisting of commercial and residential buildings;
Infrastructure, which involves development of roads on build, operate and transfer
basis and other infrastructure; Resources, which involves exploration, mining
and marketing of coal, and Others, which is engaged in residual activities.
Lanco has constructed various projects (small, medium, large and mega) across
power, road and port infrastructure and carried out brownfield, as well as
greenfield projects. For the nine months ended 31 December 2010, Lanco
Infratech Limited's revenues increased 3% to RS60.11B. Net income increased 24%
to RS4.29B. Revenues reflect increased income from power, property development
segments and increase in other income. Net income reflects higher gain on stock
in trade & work in progress, decreased consumption of materials,
construction and general expenses and lower purchase of trading power.
Madhusudhan Rao - Executive Chairman of the Board – Chairman
Shri. L. Madhusudhan Rao serves as Executive Chairman of the Board of
Lanco Infratech Limited. He has over 18 years of industrial and entrepreneurial
experience. He has been associated with the Lanco Group of Companies for the
past 13 years during which period he was instrumental in developing projects
from conception to commissioning. He has proven experience in the operation of
power projects, infrastructure projects, pig iron projects and ductile iron
pipes projects. He did M,Tech (Mechanical Design) and an M.S. (Industrial
Engineering) in U.S.A. His previous employment assignments include Meadours
Products, Michigan Wagganer Brighten Corporation and Exotic Rubber and
Plastics, companies incorporated in the U.S.A. He is a Director on the Boards
of Udupi Power Corporation Limited, Aban Power Company Limited, Lanco
Amarkantak Power Private Limited, Lanco Hills Technology Park Private Limited,
Lanco Electric Utility Limited, Lanco Green Power Private Limited, Rithwik
Energy Systems Limited, Clarion Power Corporation Limited, Lanco Energy Private
Limited, Lanco Group Limited,Lanco Industries Limited, Lanco Kondapalli Power
Private Limited, Lanco Property Management Company Private Limited, Lanfin
Ventures Private Limited, Pragdisa Power Private Limited, Occidental Power
Private Limited, Chamba 1-lydro Power Private Limited, Chatari Hydro Power
Private Limited, Dharmashala Hydro Power Private Limited, Parvat Hydro Power
Private Limited, Ravi Hydro Electric Private Limited, Himachal Hydro Power
Private Limited, Jubilee Hydro Power Private Limited, Lanco Anpara Power
Private Limited, and Lanco Net Limited, and Member Audit Committee of Lanco
Amarkantak Power Private Limited.
G. Bhaskara Rao - Executive Vice Chairman of the Board - Vice-Chairman
Shri. G. Bhaskara Rao serves as Executive Vice Chairman of the Board of
Lanco Infratech Limited. He has over 27 years of industrial and entrepreneurial
experience. He has executed various construction projects including dams,
bridges and roads and was instrumental in organizing and implementing the
ductile iron pipes manufacturing project by Lanco Kalahasthi Castings Limited.
He has a B.E (Production) Degree from S.V. University, Tirupati and an M.E
(Machine Design) Degree from the Indian Institute of Science, Bangalore.
Sridhar - Non-Executive Vice
Chairman of the Board - Vice-Chairman
hri. L. Sridhar serves as Non-Executive Vice Chairman of the Board of
Lanco Infratech Limited. He has over 16 years of industrial and entrepreneurial
experience. He has been associated with the Lanco Group of Companies for the
past 15 years during which period he executed various construction and
infrastructure projects. He did his MS (Construction Management in Civil
Engineering) in U.S.A. He is a Director on the Boards of Lanco Electric Utility
Limited, Clarion Power Corporation Limited, Rithwik Energy Systems Limited,
Lanco Group Limited, Lanco Industries Limited, Lanco Projects Limited, Lanco
Net Limited, Neptune Projects Private Limited, Ruby Agro Farms Private Limited,
Garnet Agro Estates Private Limited, Diamond Farms Private Limited, Pearl Farms
Private Limited, Lanco Kondapalli Power Private Limited, Lanco Wind Power
Private Limited, Lanfin Trustee Private Limited, Himavat Power Private Limited,
Vainateya Power Private Limited, Mehad Hydro Power Private Limited, Ravi Hydro
Electric Private Limited, Himachal Hydro Power Private Limited,Garnet Groves
Private Limited, Emerald Orchids Private Limited, Uranus Infratech Private
Limited, Larsco Entertainment Private Limited, Lanco Power Transmission Private
Limited, Lanco Bay Technology Park Private Limited, Garnet Infrastructure and
Power Ventures Private Limited, Lanco Babandh Power Private Limited, Ananke
Properties Private Limited, Bianca Properties Private Limited, Belinda
Properties Private Limited, Cressida Properties Private Limited, Leda
Properties Private Limited, Nix Properties Private Limited, Tethys Properties
Private Limited, Thebe Properties Private Limited, and Chairman —Audit
Committee of Lanco Group Limited.
Prathipati Abraham - Independent Non-Executive Director - Director/Board
Member
Shri. P. Abraham serves as Independent Non-Executive Director of Lanco Infratech
Limited. He is a retired officer from the Indian Administrative Service. He did
his M.A from Andhra University and has also done a Diploma in Systems
Management from the Bajaj Institute, Mumbai, He was awarded the United Nations
Industrial Development Organization fellowship to study the promotion of
industries with a special emphasis on export oriented industries in Europe.
During his 35 years of service in the Indian Administrative Services, he held a
number of executive positions with the Central and State Governments such as
Chairman of Maharashtra State Electricity Board, Commissioner of Industries,
G0AP, Iron and Steel Controller, Ministry of Steel, Gol and Chairman and
Managing Director, Maharashtra State Textile Corporation. He has also authored
a book on the power sector reforms with focus on distribution in 2003.
G. Venkatesh Babu - Managing Director, Executive Director -
Director/Board Member
Shri. G. Venkatesh Babu serves as Managing Director, Executive Director
of Lanco Infratech Limited. He has experience in Commercial Banking, Corporate
Advisory, Merger and Acquisitions, Project Finance, Equity Capital Markets. He
had worked with lndbank & Credit Agricole lndosuez (Calyon) and then had
two years of entrepreneurial stint before joining LANCO. He currently looks
after LANCO Group’s finance, Human Resources and Infrastructure Initiatives
and is a member of LANCO’s Strategy Team. He focuses on LANCO’s strategic
partnership and growth initiatives. He is involved in financing of LANCO
Group’s projects and overseeing the resources function of all the Group
companies. He is a Bachelor of Commerce from Madras Christian College,
Chartered Accountant and CostAccountant.
Uddesh Kumar Kohli - Independent Non-Executive Director - Director/Board
Member
Dr. Uddesh Kumar Kohli serves as Independent Non-Executive Director of
Lanco Infratech Limited. He has over 42 years experience in the areas of
Corporate Planning and Consultancy. He holds an honors degree in Engineering
from Indian Institute of Technology, Roorkee, a post-graduate degree in
Management and a Ph. D in Economics from the Delhi School of Economics. He has
specialized in various fields including strategic planning, corporate
governance, management, development finance, energy and power sectors, project
management, infrastructure construction, restructuring, reforms and
disinvestment of public sector enterprises and human resource development. Dr.
Kohli has been associated in an advisory capacity with institutions such as the
Asian Development Bank and the United Nations Development Programme for
Countries such as Papua New Guinea, Tanzania, China and Maldives. He has also
been associated with the International Federation of Training and Development
Organisation, Asian Regional Training and Development Organization, Indian
Society for Training and Development, Council of Indian Employers, Standing
Conference of Public Enterprises, All India Management Association, Board of
Governors of Indian Institute of Management, Bangalore and Institution of
Engineers (India). He has won awards and has various publications on various
aspects of project planning, appraisal, monitoring, information systems,
management, power and energy systems, training and development. He is a
Director on the Boards of ICRA Limited, Alstom Projects India Limited, WEBCON
Limited, Power Equity Capital Advisors Private Limited, DB Power Limited, and
Member -- Audit Committee of ICRA Limited and Alstom Projects India Limited and
Member -- Shareholders' Grievance Committee of ICRA Limited and Alstom Projects
India Limited.
Pamidi Kotaiah - Independent
Non-Executive Director - Director/Board Member
Dr. Pamidi Kotaiah serves as Independent Non-Executive Director of Lanco
Infratech Limited. He is a gold medalist in M.A from Andhra University in
Mathematical Economics and Agricultural Economics. He is a Member of the
Certified Association of Indian Institute of Bankers. He has varied experience
in the Banking Sector with a specialization in the fields of Agriculture and
Rural Development. In his past as the Chairman of the NABARD, he undertook
various initiatives and innovative measures for rural development. His past
experience includes working with international/multilateral institutions
including the International Fund for Agricultural Development, Rome, Food and
Agriculture Organization of the United Nations and the World Bank. He was
awarded the Doctor of Letters by Andhra University in 1997 in recognition of
his special contribution to the areas of rural finance and development. He was
also awarded the Special Honour Award in 1996 by the World Association of Small
and Medium Enterprises in recognition of his special contribution towards the
promotion of small and medium enterprises. He is a Director on the Boards of
Lanco Kondapalli Power Private Limited, Andhra Sugars Limited, Zen Technologies
Limited, Blossom Industries Limited, Krishna Godavari Power Utilities Limited,
Pridhvi Asset Reconstruction and Securitisation Company Limited, Pragathi Green
Meadows & Resorts Limited and Nujiveedu Seeds Limited and Chairman—Audit
Committee of Lanco Kondapalli Power Private Limited, Zen Technologies Limited
and Pragathi Green Meadows & Resort5 Limited and Member—Audit Committee
of Andhra Sugars Limited and Blossom Industries Limited.
P. Narasimharamulu - Independent Non-Executive Director - Director/Board
Member
Mr. P. Narasimharamulu serves as Independent Non-Executive Director of
Lanco Infratech Limited. He is a Chartered Accountant. He is a Graduate of Law
and has completed his Post-Graduation in Commerce. He is a Member of Indian
Council of Arbitration with over 34 years of experience in the areas of
Financial Management including Resource Mobilization Servicing and Corporate
Governance. He has won various awards in the past including the India CFO 2004
Award for Excellence in Finance, Top Ranker Award 2001 for Excellence in
Finance from the Birla Institute of Management and Technology. In the past he
has been a Director on the Boards of NTPC Electric Supply Company Limited, NTPC
Hydro Limited, NTPC Vidyut Vyapar Limited, NTPC Tamil Nadu Electricity Company
Limited and Utility Powertech Limited. He is a Director on the Boards of Vijai
Electricals Limited, NSL Textiles Limited, NSL Power Limited and Nuziveedu
Seeds (P) Limited and Chairman -- Audit Committee of Vijai Electricals Limited
and NSL Textile Limited and Member -- Audit Committee of Nuziveedu Seeds (P)
Limited.
B. Vasanthan - Independent Non-Executive Director - Director/Board
Member
Dr. B. Vasanthan serves as Independent Non-Executive Director of Lanco
Infratech Limited. He was the Chief Executive Officer of National Bank of Oman,
SAOG, Muscat, Oman from 2004-05. He was with Andhra Bank from 1998-2003.
Joining as an Executive Director and he was appointed as Chairman &
Managing Director in 2000. He has been a career banker throughout and as
Chairman & Managing Director of Andhra Bank was responsible for enhanced
level of operations and quantum jump in business. He is a B.Com., Gold Medalist
from Guruvayurappan College, Calicut, Kerala. He was conferred the Honorary
Doctorate Degree (Honoris Causa) by Sri Venkateswara University, Tirupathi in
2003. He is a Director on the Boards of GVPR Engineers Limited, MFAR Holdings
Private Limited, BRESCON Corporate Advisors Limited, Vardhana Foundations
Private Limited and Chairman -- Audit Committee of GVPR Engineers Limited and
Member -- Audit Committee of BRESCON Corporate Advisors Limited.
G. Venkatesh Babu - Managing Director, Executive Director - Managing
Director
Shri. G. Venkatesh Babu serves as Managing Director, Executive Director
of Lanco Infratech Limited. He has experience in Commercial Banking, Corporate
Advisory, Merger and Acquisitions, Project Finance, Equity Capital Markets. He
had worked with lndbank & Credit Agricole lndosuez (Calyon) and then had
two years of entrepreneurial stint before joining LANCO. He currently looks
after LANCO Group’s finance, Human Resources and Infrastructure Initiatives
and is a member of LANCO’s Strategy Team. He focuses on LANCO’s strategic
partnership and growth initiatives. He is involved in financing of LANCO
Group’s projects and overseeing the resources function of all the Group
companies. He is a Bachelor of Commerce from Madras Christian College,
Chartered Accountant and Cost Accountant.
PRESS RELEASE :
Accord Fintech (India)
03 November 2011
India, Nov. 03 -- Lanco Infratech Limited has informed BSE that on
receipt of disclosure statements dated October 28, 2011 under SEBI (Substantial
Acquisition of Shares and Takeover) Regulations, 2011 and SEBI (Prohibition of
Insider Trading) Regulations, 1992 from Lanco Group Limited, a promoter Company
informing that, consequent upon the Merger of Prince Stone Investments Ltd.,
Mauritius, another promoter Company with the former pursuant to the Order dated
July 08, 2011 of the Honble High Court of Punjab and Haryana, the shareholding
of Prince Stone Investments Ltd. in Lanco Infratech Ltd. had been transferred
to Lanco Group Ltd. Consequently, Lanco Group Ltd. acquired the status of
Holding Company of Lanco Infratech Ltd. with its total holding aggregating to
56.22% of the paid-up capital of the Company with effect from October 25, 2011.
Published by HT Syndication with permission from ACCORD FINTECH BSE.
AUSTRALIAN, THE
31 OCTOBER 2011
BY ANDREW BURRELL
Two-way trade will
benefit both countries, eminent banker says
INVESTMENT
INDIA'S soaring
energy needs and fast-growing population will spark a rush of
multi-billion-dollar investments by Indian companies in Australia's resources
sector, according to one of the subcontinent's top bankers.
Goldman Sachs
India chairman Sonjoy Chatterjee, who visited Perth last week for the
Commonwealth Business Forum, also said Australian companies should be tapping
into opportunities in India, where $500 billion worth of investment projects
were under way or being planned.
Mr Chatterjee said
companies such as Leighton, ANZ and BHP Billiton had already recognised India's
potential but there were openings in many booming sectors, particularly
infrastructure and financial services.
He predicted a
rush of Indian investment in Australian energy assets, particularly coalmines,
despite some nervousness among foreign investors about the rising costs of
doing business in Australia. ``There is no other country which is as attractive
to India right now as Australia is,'' Mr Chatterjee said.
“We have several
top-tier Indian corporates looking actively at Australia. And each one of them
has clear gaps in their resource requirements.''
A report last year
by McKinsey Global Institute forecast India's urban population would rise from
340 million to 590 million in the next 20 years.
India's economy
has the world's largest and youngest pool of labour and a fast-growing middle
class. Economists say India could become the world's third-largest economy
after 2030 behind China and the US.
The Indian
government is planning to double power generation in the next decade. But the
country is facing a critical shortage of 100 million tonnes of coal -- which
accounts for more than half its power generation capacity -- in the next year.
Indian companies
have already invested about $2.5bn in Australian coal assets in the past year.
Power giant Adani
signed a deal with Australian-owned Linc Energy worth $500 million to buy coal
tenements in the Galilee Basin area of central Queensland
Lanco Infratech
bought West Australian coalminer Griffin Coal for about $800 million and fellow
conglomerate GVK paid $1.2bn for Queensland coal assets of Gina Rinehart's Hancock
Coal.
Mr Chatterjee said
economic growth in India was being driven by rising consumption, which was
changing in nature as households became smaller.
This was helping
to drive a boom in infrastructure spending.
``About $500bn
worth of projects are in the planning stage or under way -- much of it in
infrastructure,'' he said.
``We're talking
about power, roads, water, ports, airports. Managing supply-side bottlenecks,
largely around infrastructure, is one of the biggest challenges that India has.
That is also the biggest investment opportunity.''
Mr Chatterjee said
Indians felt comfortable doing business in Australia due to having several
things in common, including the English language and a love of cricket.
He brushed off
suggestions that Australia's refusal to sell uranium to India, or the recent
publicity over attacks on Indian students in Australia, had damaged business
links.
ASIA PULSE
BUSINESSWIRE
28 OCTOBER 2011
NEW DELHI, Oct 28Asia
Pulse - Mukesh Ambani, who heads the oil-to-retail conglomerate Reliance
Industries Group, has retained his position as the world's richest Indian with
a networth of US$22.6 billion, as per the Forbes India annual rich list.
Despite a fall of
US$4.4 billion in his networth over the past one year, Ambani managed to hold
the top slot.
He is followed by
steel tycoon Lakshmi Mittal and technology czar Azim Premji, as per the list
published Thursday by the Indian edition of global business magazine Forbes.
Mittal was ranked
second with a networth of US$19.2 billion, while Premji was at the third
position with US$13 billion of networth, Forbes said.
The 100 richest
persons in the country together saw their networth falling by 20 per cent in
one year, to US$241 billion, as inflation, corruption scandals and falling
stock and currency prices diminished their wealth.
The list comprises
of 57 billionaires, a dozen less than the last year.
Forbes said that
Mukesh's younger brother Anil Ambani saw the biggest erosion in his wealth in
absolute terms, while power producer Lanco Infratech's Madhusudan Raw was the
biggest loser in percentage terms as his networth fell by 78 per cent during
the past one year.
Anil Ambani's net
worth declined by US$7.4 billion to USD 5.9 billion and he "slipped out of
the top 10 for the first time since his 2004 debut". He was ranked 13th in
this year's list.
In the top-five,
Mukesh Ambani, Lakshmi Mittal and Azim Premji were followed by Essar group's
Shashi and Ravi Rua (US$10.2 billion at 4th position) and Savitri Jindal
(US$9.5 billion at 5th).
ASIA PULSE
BUSINESSWIRE
28 OCTOBER 2011
NEW DELHI, Oct
28Asia Pulse - India's richest people are losing wealth due to inflation and
corruption scandals, according to Forbes magazine, which says that the combined
wealth of the country's 100 wealthiest is down 20 per cent from a year ago.
According to
Forbes' annual India Rich List, the total wealth of the country's 100 richest
has fallen to US$241 billion, down by 20 per cent or an estimated US$60 billion.
The number of
billionaires has also fallen by a dozen to 57 currently, Forbes said, while
adding that falling stock and currency prices also led to diminishing of their
wealth.
Mukesh Ambani,
head of Reliance Industries Group, has retained his position as the richest
Indian with a networth of US$22.6 billion, though his wealth declined by US$4.4
billion in past one year.
Forbes said that
Mukesh's younger brother Anil Ambani saw the biggest erosion in his wealth in
absolute terms, making him the biggest dollar loser.
Anil Ambani's net
worth declined by US$7.4 billion to US$5.9 billion and he "slipped out of
the top 10 for the first time since his 2004 debut". He is ranked 13th in
this year's list.
Power producer
Lanco Infratech'sMadhusudan Raw was the biggest loser in percentage terms as
his networth fell by 78 per cent during the past one year.
Mukesh Ambani is
followed by steel tycoon Lakshmi Mittal and technology czar Azim Premji at
second and third slots with net worth of US$19.2 billion and US$13 billion,
respectively.
In the top-five,
Mukesh Ambani, Lakshmi Mittal and Azim Premji are followed by Essar group's
Shashi and Ravi
Ruia (US$10.2
billion at 4th position) and OP Jindal group's Savitri Jindal (US$9.5 billion
at 5th).
TIMES OF INDIA
28 OCTOBER 2011
BY PANDEY, PIYUSH
MUMBAI:
What is common between Anil Ambani, Gautam Adani, Madhusudan Rao and GV K
Reddy? In a race to secure coal assets to fuel their power plants, these
billionaires are fast emerging as global coal barons. The companies that they
run - Reliance Power,Adani Power, Lanco Infratech and GVK - will feature among
the top 10 coal miners in the world, behind Peabody and Shenhua Energy, once
they start coal production in coming years.
Peabody
Energy, which claims to be the world's largest private sector coal producer,
had registered sales of 246 million mt in 2010 and Shenhua Energy's coal
production is pegged at 256 million mt according to its website.
However
, government-owned Coal India is the world's single largest coal producer with
an annual production in excess of 430 million mt. At peak production, some of
these Indian firms will have excess coal production compared to such global
miners as Rio Trinto, Anglo American , Xstrata, Russian Suek and Indonesian
Adaro. Adani, with a resource base in excess of 8 billion mt of coal, plans to
produce 200 million mt per annum at peak production, while others plan to
produce over 100 million mt per annum each in the coming years.
Increasing
Imports:
In
spite of having the world's third biggest coal resources after US and China,
Indian firms are aggressively acquiring coal assets overseas as most of Indian
coal reserves lie in forest areas and cannot be mined for environmental
concerns.
Indian
coal imports are, therefore, seen rising against a stagnant output and rising
demand. Total coal imports in 2010 were 55 million mt, which is likely to climb
to 186 million mt by 2014 because of aggressive ramp-up plans by steel and
power companies. Michael Cooper, associate editor, Platts International Coal
Report, has another reason.
"The
quality of thermal coal in India is of very low calorific value with high ash
content compared to imported coal, which has comparably higher heating values
and, when burned, increases power station boilers' efficiency."
Global
Acquisitions:
Indian
firms have already spent over $10 billion to acquire coal mines overseas and
are likely to invest a similar amount in coming years. Adani acquired Linc
Energy'sQueensland coal tenements in a deal valued at $2.72 billion and agreed
to pay another $2 billion in cash for the Abbot Point terminal near Bowen to
secure coal delivery.
Similarly,
Reliance Power has acquired three coal mines in Indonesia with total reserves
of 2 billion mt.
The
company plans to further invest $500 million to ramp up capacity . "With
reserves in excess of 4 billion mt in India and overseas , no doubt we will be
among the top 10 coal miners in the world with an annual production of 100
million mt in coming years," Jayarama Prasad Chalasani, Reliance Power
CEO, told TOI.
G
V Krishna Reddy of GVK Group has also joined the premier league of coal barons.
His latest $1.26-billion acquisition in Australia will give him access to 8
billion mt of coal reserves to fuel GVK's power projects in India. Another
power company, GMR Energy, had in August agreed to buy a 30% stake in PT Golden
Energy Mines for $550 million. The firm had earlier acquired an Indonesian coal
company PT Barasentosa Lestari for $100 million.
Others
like Lanco with captive coal reserves of 2 billion mt are still scouting
opportunities. "Recently, we acquired Griffin coal in Australia for $750
million. We are building a pipeline for acquisitions in Indonesia, Africaand
Australia," K Naga Prasad, Lanco's CEO (business development) told TOI.
Cooper believes that, going forward, Indian firms will continue to acquire
overseas coal assets aggressively.
"India
has ambitious plans to expand it steel-making and power-generating capacity
and, if its domestic production cannot match this, then it will have to source
this coal from overseas or otherwise reduce its targets for steel production
and electricity generation," Cooper added.
Undervalued
Share Prices :
Indian
infrastructure companies may secure the the top 10 global positions by chasing
the black diamond overseas, but when it comes to valuations , the stocks of
these companies have taken a severe blow.
The
fact that shares of Lanco Infratech, Adani Power and Reliance Power are available
for discounts of 33% to 75% is because the markets have taken a weak view of
their overleveraged acquisitions, litigations and regulatory clearances and
possible impact of carbon tax abroad.
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. 49.38 |
|
|
1 |
Rs. 79.19 |
|
Euro |
1 |
Rs. 67.84 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
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 |
|
65 |
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.