MIRA
INFORM REPORT
|
Report Date : |
06.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
PARSVNATH DEVELOPERS LIMITED |
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|
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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|
|
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Date of
Incorporation : |
24.07.1990 |
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|
Com. Reg. No.: |
55-040945 |
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Capital
Investment / Paid-up Capital : |
Rs.2175.906
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L45201DL1990PLC040945 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELP03387G |
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PAN No.: [Permanent Account No.] |
AAACP0743J |
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|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on Stock
Exchange |
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Line of Business
: |
Development, Construction and Marketing of Real Estate Projects for Commercial and Residential Use. |
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|
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 100000000 |
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|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. General
financial position of the company is good. Trade relations are reported as fair.
Business is active. Payments are reported to 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Parsvnath Metro Tower, Near Shahdara Metro Station, Shahdara, New
Delhi – 110032, India |
|
Tel. No.: |
91-11-43050100/43010500 |
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Fax No.: |
91-11-43050473 |
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E-Mail : |
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Website : |
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Corporate Office : |
6th Floor, Arunachal Building, 19, Barakhamba Road, New Delhi – 110001, India |
|
Tel. No.: |
91-11-43686600/ 43684800 |
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Fax No.: |
91-11-23315400 |
|
E-Mail : |
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|
Regional Offices : |
Located At: ·
Hyderabad · Ahmedabad · Chandigarh · Jammu · Bangalore · Indore · Mumbai · Jaipur · Chennai ·
Dehradun |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Pradeep Kumar Jain |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sanjeev Kumar Jain |
|
Designation : |
Managing Director |
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|
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|
Name : |
Dr. Rajeev Jain |
|
Designation : |
Director (Marketing) |
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|
|
|
Name : |
Mr. Gobind Ram Gogia |
|
Designation : |
Director (Business Development) |
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|
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|
Name : |
Mr. Ashok Kumar |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Sunil Kumar Jain |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Ramdas Janardhana Kamath |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Ram Niwas Lakhotia |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Dr. Pritam Singh |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Dr. Vinod Juneja |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. V. Mohan |
|
Designation : |
Senior Vice President (Legal) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
263,055,318 |
60.45 |
|
|
47,277,992 |
10.86 |
|
|
83,200 |
0.02 |
|
|
83,200 |
0.02 |
|
|
310,416,510 |
71.33 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
310,416,510 |
71.33 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
529,268 |
0.12 |
|
|
41,979,330 |
9.65 |
|
|
42,508,598 |
9.77 |
|
|
|
|
|
|
42,853,893 |
9.85 |
|
|
|
|
|
|
30,266,480 |
6.95 |
|
|
5,781,691 |
1.33 |
|
|
3,353,998 |
0.77 |
|
|
784 |
- |
|
|
587,971 |
0.14 |
|
|
225,754 |
0.05 |
|
|
2,539,467 |
0.58 |
|
|
22 |
- |
|
|
82,256,062 |
18.90 |
|
Total Public shareholding (B) |
124,764,660 |
28.67 |
|
Total (A)+(B) |
435,181,170 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
435,181,170 |
- |
BUSINESS DETAILS
|
Line of Business : |
Development, Construction and Marketing of Real Estate Projects for Commercial and Residential Use. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
7th Floor, Building No. 10, Tower B, DLF Cyber City Complex, DLF City, Phase-II, Gurgaon-122002, Haryana, India |
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Subsidiaries : |
·
Parsvnath Infra Limited ·
Parsvnath Film City Limited ·
Parsvnath Landmark Developers Private Limited ·
Parsvnath Telecom Private Limited ·
Parsvnath Hotels Limited ·
Parsvnath Retail Limited ·
PDL Assets Limited ·
Parsvnath Developers Pte. Limited (Overseas
subsidiary – Singapore)Primetime Realtors Private Limited ·
Parsvnath Estate Developers Private Limited
(Formerly, Farhat Developers Private Limited) ·
Parsvnath Promoters And Developers Private
Limited (Formerly, Luba Real Estate Private Limited) ·
Parsvnath Developers (GMBT) Private Limited * ·
Parsvnath Developers (SBBT) Private Limited * ·
Jarul Promoters and Developers Private Limited * ·
Baasima Buildcon Private Limited * ·
Parsvnath Hessa Developers Private Limited
(Formerly, Hessa Realtors Private Limited)# ·
Parsvnath Royal Orchid Hotels Limited (Subsidiary
of Parsvnath Hotels Limited) ·
Parsvnath Hospitality Holding Limited, Singapore
(Subsidiary of Parsvnath Developers Pte. Limited, Singapore) ·
Parsvnath MIDC Pharma SEZ Private Limited
(Subsidiary of Parsvnath Infra Limited) * ceased to be subsidiaries during the year # Became subsidiary by virtue
of Accounting ·
Dolphin Buildwell Private Limited ·
Elixir Infrastructure Private Limited ·
Enormity Buildcon Private Limited ·
Farhad Realtors Private Limited ·
Gauranga Realtors Private Limited ·
Gauresh Buildwell Private Limited ·
Gazala Promoters and Developers Private Limited ·
Gem Buildwell Private Limited ·
Generous Buildwell Private Limited ·
Himsagar Infrastructure Private Limited ·
Homelife Real Estate Private Limited ·
Honey Builders Private Limited ·
Izna Realcon Private Limited ·
Jaguar Buildwell Private Limited ·
Janak Finance and Leasing Private Limited ·
Jodhpur Infrastructure Private Limited ·
K.B. Realtors Private Limited ·
Kalyani Pulp Private Limited ·
Laban Real Estates Private Limited ·
Label Real Estates Private Limited ·
Lakshya Realtors Private Limited. ·
Landmark Malls and Towers Private Limited ·
Landmark Township Planners Private Limited ·
LSD Realcon Private Limited ·
Madhukanta Real Estate Private Limited ·
Madhulekha Developers Private Limited ·
Magic Promoters Private Limited ·
Mahanidhi Buildcon Private Limited ·
Mirage Buildwell Private Limited ·
Nanocity Haryana Infrastructure Limited ·
Navneet Realtors Private Limited ·
Neha Infracon (India) Private Limited ·
Sadgati Buildcon Private Limited ·
Samiksha Realtors Private Limited ·
Sapphire Buildtech Private Limited ·
Scorpio Realtors Private Limited ·
Sharmistha Realtors Private Limited ·
Silverstreet Infrastructure Private Limited ·
Snigdha Buildwell Private Limited ·
Springdale Realtors Private Limited ·
Stupendous Buildtech Private Limited ·
Suksma Buildtech Private Limited ·
Sumeru Developers Private Limited ·
Sureshwar Properties Private Limited ·
Timebound Contracts Private Limited ·
Vardaan Buildtech Private Limited ·
Vinu Promoters Private Limited |
|
|
|
|
Entities over which Company, Subsidiary Companies or key management personnel or their relatives, exercise significant influence : |
·
Aahna Realtors Private Limited ·
Aaron Real Estates Private Limited ·
Adela Buildcon Private Limited ·
Afra Infrastructure Private Limited ·
Ajit Board Private Limited ·
Amazon India Limited ·
Amiya Properties Private Limited * ·
Anjaney Developers Private Limited ·
Arunachal Infrastructure Private Limited ·
Ashirwad Realtors Private Limited ·
Bae Buildwell Private Limited ·
Baidehi Infrastructure Private Limited ·
Balbina Real Estates Private Limited ·
Balwaan Buildwell Private Limited ·
Banita Buildcon Private Limited ·
Basundhra Properties Private Limited ·
Bliss Infrastructure Private Limited ·
Brinly Properties Private Limited ·
Charushila Buildwell Private Limited ·
Congenial Real Estates Private Limited ·
Coral Buildwell Private Limited ·
Crimson Infrastructure Private Limited ·
Cyanea Real Estate Private Limited ·
Dae Realtors Private Limited ·
Dai Real Estates Private Limited ·
Deborah Real Estate Private Limited ·
Deleena Developers Private Limited ·
Dhiren Real Estates Private Limited ·
Digant Realtors Private Limited ·
New Hind Enterprises Private Limited ·
Nilanchal Realtors Private Limited ·
Noida Marketing Private Limited ·
Oni Projects Private Limited ·
P.S. Realtors Private Limited ·
Paavan Buildcon Private Limited ·
Panchvati Buildwell Private Limited ·
Parasnath And Associates Private Limited ·
Parsvnath Dehradun Info Park Private Limited ·
Parsvnath Indore Info Park Private Limited ·
Parsvnath Gurgaon Info Park Private Limited ·
Parasnath Travels and Tours Private Limited ·
Parsvnath Biotech Private Limited ·
Parsvnath Buildwell Private Limited (formerly,
Aadarshini Buildwell Private Limited ) ** ·
Parsvnath Estate Developers Private Limited
(Formerly, Farhat Developers Private Limited) # ·
Parsvnath Knowledge Park Private Limited ·
Parsvnath Cyber City Private Limited ·
Parsvnath Promoters And Developers Private
Limited (Formerly, Luba Real Estate Private Limited) # ·
Parsvnath Realcon Private Limited (Formerly,
Momentous Developers Private Limited) ** ·
Palakkad Infrastructure Private Limited ·
Parikrama Infrastructure Private Limited ·
Pearl Propmart Private Limited ·
Perpetual Infrastructure Private Limited ·
Pradeep Kumar Jain and Sons (HUF) ·
Prasidhi Developers Private Limited ·
Prastut Real Estate Private Limited ·
Prosperity Infrastructures Private Limited ·
Rangoli Buildcon Private Limited ·
Rangoli Infrastructure Private Limited ·
Parsvnath Developers (GMBT) Private Limited ·
Parsvnath Developers (SBBT) Private Limited ·
Jarul Promoters and Developers Private Limited ·
Baasima Buildcon Private Limited ·
Vital Buildwell Private Limited ·
ceased to be a related
party during the year ·
** Became joint
ventures during the year ·
# Became subsidiaries during the year |
|
|
|
|
Joint Venture : |
·
Parsvnath Hessa Developers Private Limited
(Formerly Hessa Realtors Private Limited) * ·
Ratan Parsvnath Developers AOP ·
Parsvnath Developers AOP ·
Parsvnath Buildwell Private Limited (Formerly
Aadarshini Buildwell Private Limited) ·
Parsvnath Realcon Private Limited (Subsidiary of Parsvnath
Buildwell Private Limited) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
600000000 |
Equity Shares |
Rs.5/- each |
Rs.3000.000 Millions |
|
50000000 |
Preferences Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
Total |
|
Rs.3500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
435181170 |
Equity Shares |
Rs.5/- each |
Rs.2175.906
Millions |
NOTE:
a. 3,78,000 (Previous
year 1,89,000) Equity Shares are allotted for consideration other than cash
b. 29,39,93,200
(Previous year 14,69,96,600) Equity Shares are allotted as fully paid-up bonus
shares by capitalization of accumulated profits
c. The Company has
sub-divided nominal value of its equity shares from Rs.10/- each to Rs.5/- each
on 19 October, 2010. Consequently the number of authorized, issued, subscribed
and paid-up equity shares have increased accordingly
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 |
2175.906 |
1985.525 |
1846.962 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
23411.593 |
20189.149 |
17349.396 |
|
|
4] (Accumulated Losses) |
0.00 |
0.000 |
0.000 |
|
|
NETWORTH |
25587.499 |
22174.674 |
19196.358 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
14149.594 |
12754.224 |
18109.343 |
|
|
2] Unsecured Loans |
650.817 |
3088.385 |
257.392 |
|
|
TOTAL BORROWING |
14800.411 |
15842.609 |
18366.735 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
40387.910 |
38017.283 |
37563.093 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1490.166 |
1069.403 |
1272.359 |
|
|
Capital work-in-progress |
3169.801 |
2557.260 |
1782.909 |
|
|
|
|
|
|
|
|
INVESTMENT |
4282.165 |
2208.321 |
993.383 |
|
|
DEFERREX TAX ASSETS |
69.246 |
45.192 |
47.953 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
24712.038
|
24061.426
|
22503.768 |
|
|
Sundry Debtors |
11453.559
|
11475.385
|
10432.619 |
|
|
Cash & Bank Balances |
2155.395
|
1967.900
|
2706.226 |
|
|
Other Current Assets |
63.496
|
43.937
|
0.000 |
|
|
Loans & Advances |
7627.610
|
6745.646
|
8123.729 |
|
Total
Current Assets |
46012.098
|
44294.294
|
43766.342 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8486.028
|
9997.027
|
8269.058 |
|
|
Other Current Liabilities |
5848.038
|
1796.657
|
1994.758 |
|
|
Provisions |
301.500
|
363.503
|
36.037 |
|
Total
Current Liabilities |
14635.566
|
12157.187
|
10299.853 |
|
|
Net Current Assets |
31376.532
|
32137.107
|
33466.489 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
40387.910 |
38017.283 |
37563.093 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7139.008 |
7711.442 |
7335.428 |
|
|
|
Other Income |
376.394 |
460.314 |
290.756 |
|
|
|
TOTAL (A) |
7515.402 |
8171.756 |
7626.184 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of construction/development/ sales |
4993.618 |
4838.264 |
4351.763 |
|
|
|
Personal Costs |
301.478 |
311.638 |
420.445 |
|
|
|
Selling, administrative and other expenses |
435.880 |
331.482 |
455.614 |
|
|
|
TOTAL (B) |
5730.976 |
5481.384 |
5227.822 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1784.426 |
2690.372 |
2398.362 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
550.444 |
789.276 |
733.739 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1233.982 |
1901.096 |
1664.623 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
163.265 |
213.293 |
279.348 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1070.717 |
1687.803 |
1385.275 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
315.946 |
349.294 |
254.839 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
754.771 |
1338.509 |
1130.436 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7314.681 |
5951.172 |
3320.736 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to Debenture Redemption
Reserve |
1475.000 |
0.000 |
0.000 |
|
|
|
Transferred from Debenture Redemption
Reserve |
(475.000) |
(25.000) |
(1500.000) |
|
|
BALANCE CARRIED
TO THE B/S |
7069.452 |
7314.681 |
5951.172 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.82 |
3.50 |
6.12 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1824.710 |
1787.100 |
1931.070 |
|
Total Expenditure |
1370.880 |
1343.190 |
1467.010 |
|
PBIDT (Excl OI) |
453.830 |
443.910 |
464.060 |
|
Other Income |
31.610 |
29.690 |
29.710 |
|
Operating Profit |
485.440 |
473.600 |
493.770 |
|
Interest |
135.240 |
141.080 |
153.570 |
|
PBDT |
350.210 |
332.520 |
340.200 |
|
Depreciation |
35.910 |
36.720 |
36.700 |
|
Profit Before Tax |
314.300 |
295.800 |
303.51 |
|
Tax |
109.20 |
145.160 |
128.820 |
|
Profit After Tax |
205.100 |
150.640 |
174.690 |
|
Net Profit |
205.100 |
150.640 |
174.690 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
10.04
|
16.38 |
14.82 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.00
|
21.89 |
18.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.25
|
3.72 |
3.08 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.07 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.15
|
1.26 |
1.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.14
|
3.64 |
4.25 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS
Fiscal 2010- 2011 was
a mixed year for the Indian economy. The economy began the year on a confident
note with high growth, which however tapered off towards the close of the year.
The biggest threat to the growth of the performance of the Indian economy was
the rising inflation, which spilled over to affect the rest of the economy and
to push up raw material costs in the industrial economy.
The real estate
sector is a key growth driver of the Country’s economy. The contribution of the
residential segment alone to India’s GDP is around 5 to 6 %. The sector
continued to strengthen in the first half of the fiscal year witnessing robust
demand and broad based recovery across diverse product segments and micro
markets.
However, the
Company has progressed well on all its key business parameters that it had set
and will continue to put thrust on faster execution, timely deliveries and
maximizing cash flows.
During the year,
on standalone basis, the Company’s total revenue is Rs.7515.402 Millions in
Fiscal 2010-2011 as against Rs.8171.756 Millions in Fiscal 2009-2010. The
Profit before tax is Rs.1070.717 Millions as against Rs.1687.803 Millions in
Fiscal 2009- 2010. Profit after tax is Rs.754.771 Millions as against
Rs.1338.509 Millions in Fiscal 2009-2010. Earnings per Share (EPS) of the
Company stood at Rs.1.82 per share in Fiscal 2010-2011 as against Rs.3.50 per
share in Fiscal 2009-2010.
During the year,
on consolidated basis, the Company’s total revenue is Rs.9424.015 Millions in
Fiscal 2010- 2011 as against Rs.9881.820 Millions in Fiscal 2009-2010. The
Profit before tax increased by 25.03 % from Rs.1961.907 Millions in Fiscal
2009-2010 to Rs.2452.947 Millions in Fiscal 2010-2011. Net Profit increased by
4.59% from Rs.1348.638 Millions in Fiscal 2009-2010 to Rs.1410.595 Millions in
Fiscal 2010-2011. Earnings per Share (EPS) of the Company stood at Rs.3.40 per
share in Fiscal 2010-2011 as against Rs.3.52 per share in Fiscal 2009-2010.
The key highlights
pertaining to the business of the Company, including its subsidiaries, for the
year 2010-11 and period subsequent thereto, are given hereunder:
a) Approvals/ Certificates
Awarded a Safety
Certificate by Delhi Metro Rail Corporation Limited (DMRC) for completing “one
million man hours worked without reportable incident” with regard to the
construction of Dhaula Kuan Metro Station at the Airport Metro Express Line.
Won the bid for a
38.3 acres prime land in Sarai Rohilla, New Delhi, auctioned by Rail Land
Development Authority (RLDA) for Rs.16515.100 Millions. Letter of Acceptance
(LOA) has been received and the Company has paid Rs.3303.000 Millions towards
the first tranche of lease premium through one of its subsidiary companies.
The development
would mainly consist of luxury Residential Apartments along with required
infrastructure and the total developable area would be over four million sq.
ft.
Completion/
Occupancy Certificate received for the following Projects:-
·
Occupancy Certificate received for Eight Towers of Exotica
Group Housing project, an ultra modern Luxury Project at Gurgaon.
·
Occupancy Certificate received for Parsvnath
Commercial Complex, Seelampur Metro Station from Municipal Corporation of
Delhi.
·
Completion Certificate received for Parsvnath City
(A and B block) at Indore, Madhya Pradesh.
·
Completion certificate received for Akshardham
Metro Station, Delhi from DMRC.
b) New
Licences/Sanctions
·
Received Licence for Rohtak Township, comprising an
area of 118.188 acres from the Town and Country Planning Department of Haryana
Government.
·
Building Plans approval received for construction
of an Ultra modern Group Housing Project at Subhash Nagar, New Delhi from
Municipal Corporation of Delhi.
·
Environment Clearance received for Parsvnath City,
Lucknow and Parsvnath City, Rohtak.
·
No-Objection Certificate received from Airport
Authority of India for construction of Parsvnath Mallcum- Hotel, Kukatpally,
Hyderabad.
c) New Projects/
Forthcoming Launches
·
“Red Fort Parsvnath Towers”, A-Grade Office-cum-
Commercial Complex in the heart of New Delhi’s Connaught Place Zone on Bhai
Veer Singh Marg.
·
“The Parsvnath”, an ultra-modern state-of-the-art
Office-cum-Retail Complex on Kasturba Gandhi Marg, New Delhi
·
Parsvnath Paramount, a Super Luxury Air-conditioned
Group Housing Project, at Subhash Nagar, New Delhi (Re-launch)
·
Parsvnath Exotica Group Housing Project, Ghaziabad
(Re-launch).
d) Projects
completed/Possession Offered
·
Parsvnath Exotica Group Housing, Phase I and II,
Gurgaon
·
Parsvnath Panorama Group Housing, Greater Noida
·
Parsvnath Green Ville, Gurgaon (Tower Block)
·
Parsvnath Narayan City, Jaipur
·
Parsvnath Royale Floors, Jodhpur (Part possession)
·
Parsvnath Panchvati, Agra
·
Parsvnath City, Jodhpur (Part possession)
·
Parsvnath City, Ujjain (Block D)
·
Parsvnath City, Sonepat (Block A)
·
Parsvnath King City, Rajpura (Phase I and II)
·
Parsvnath City, Dharuhera (Part possession)
·
Parsvnath City, Indore (Block A and B)
·
Parsvnath Paradise –II, Ghaziabad
·
Parsvnath Kaushambi Mall, Ghaziabad
·
Parsvnath City Mall, Faridabad
·
Parsvnath Eleganza, Dehradun
·
Parsvnath Metro Mall, Seelampur Metro Station (Part
I), Delhi
MANAGEMENT DISCUSSION AND ANALYSIS
Global Economy
During the year
2010-11, the global economic recovery gained strength though unemployment in
advanced economies remained high. The global expansion remained unbalanced and
growth in many advanced economies continued to be weak, considering the depth
of the recession. In addition, a mild slowdown was observed in the second
quarter of 2010-11 while growth in most emerging and developing economies
continued to be strong. Though, high commodity prices posed new policy
challenges, old challenges such as fiscal and financial repair and reform and
the rebalancing of global demand continue. The world economic growth is
projected at about 4.5% in both 2011 and 2012, according to the International
Monetary Fund (IMF) forecast.
Indian Economy and Industry Overview
India’s economic
growth, as measured by the Gross Domestic Product, improved to 8.5 % in 2010-11
from 8% in 2009-10 due to better farm output, construction activities and
financial services performance. However, inflationary concerns, rising interest
rates to tame inflation, rising commodity prices, ongoing fluid political
situation have created a weak sentiment. The anti-inflationary stance of
Reserve Bank of India during the year crimped growth and demand and growth has
clearly hit a soft patch as visible in the lower GDP growth. The GDP grew only
7.8% in Q1 2010-11, down from 8.4% in Q4 2009-10 and 8.9% in Q3 2009-10. Global
rating agency Fitch has lowered its forecast for the domestic economy growth to
7.7% for 2011-12 from previous 8.3%.
The real estate
sector continued to be a key growth driver of the Country’s economy. The contribution
of the residential segment alone to India’s GDP is around 5 to 6 %.
The sector
continued to strengthen in the first half of the fiscal year witnessing robust
demand and broad based recovery across diverse product segments and micro markets.
Volumes and pricing remained buoyant in the residential sector, pre-sales in
key cities (except a few areas in Mumbai) in October 2010 to March 2011 were
healthy. Volumes were higher than during the most recent crisis (October 2008
to March 2009) and residential inventory was significantly below the crisis
level. The commercial property sector too recovered strongly after a near
lacklustre performance in 2010. Retail sector too showed signs of slow
recovery.
Though the sector
has come out of the days of economic slowdown and has seen positive sentiments
amongst buyers, still the kind of demand that was anticipated at the start of
the year is still to come because of constant interest rate hikes by Central
Bank in the last fiscal. The environment continues to be volatile and
inflationary and the consistent high rate of inflation has impacted the bottom
line of various realty companies. The prevailing negative economic sentiments
have dampened overall consumer’s sentiments and led to a near-term overhang on
the sector’s performance. Liquidity conditions remain tight though the industry
is believed to be in a far better shape than at the time of the recent crisis
level.
Segment Wise Growth Scenario
Residential Sector
The revival in
residential demand witnessed in the previous year gained strength as volumes
increased and prices continued to improve across all product segments in the
initial months of FY 2010-11. Strong confidence in the Indian economic growth
potential, improving job scenario and better corporate performance, saw the
revival of consumer confidence and upsurge in demand for several months during
FY 2010-11. Residential pre-sales in key cities (except a few areas in Mumbai)
in October 2010 to March 2011 were healthy at 214 million sq. ft., 2x higher
than during the most recent crisis (October 2008 to March 2009).
However,
spiralling inflation and higher interest rates led to contraction in demand.
Consumers’ sentiments were impacted while the industry and realty developers
were hit by the high input costs, higher commodity prices, approval delays and
tight monetary conditions. However, this is seen as a short term temporary
phase as India’s property market has a significant development potential,
especially in the residential sector.
The key drivers of
growth in the residential sector are structural and include housing shortage
(approximately 25 million households), demographics (young population, nuclear
families) and rapidly evolving financial systems. India’s high savings rate
(20% of income) has a high probability of being invested in property, as
property is increasingly being viewed as a hedge to inflation, with higher
demand and progress on infrastructure projects driving up asset prices.
Special Economic Zones (SEZs)
The new direct tax
code has brought SEZs under the purview of Minimum Alternate Tax (MAT) and this
has dampened the SEZ plans across the Industry. In view of lack of clarity on
the implementation of new direct tax code regulation on SEZ, many realty
developers have not moved their SEZ projects forward. Infact reflecting lack
of enthusiasm for
the SEZs, as many as 53 developers in May 2011 have sought more time from the
Government
for implementing
their projects. The developers, who have requested for de-notification, have
cited reasons like global economic slowdown, problems related to land
acquisition and imposition of MAT on them and their units.
Sector Outlook
The near-term overhang on sector performance
includes:
1) Consensus
expectations of further interest rate hikes of
50-75bp over the
next two quarters to tame inflation
2) Tightening
liquidity
3) Developers
likely missing launch/pre-sale targets, impacting FY12 earnings and
4) Ongoing fluid
political situation.
Rising interest rates,
low macro visibility amidst high oil prices, developers missing pre-sales
targets, muted nearterm earnings and ongoing political issues may have a
negative impact on property demand in the near term.
Despite the short
term negative sentiments, the core fundamental strength of large un-met demand
for quality homes from end user, favourable demographics, rapid urbanisation,
sustained GDP growth visibility, ongoing strong growth in the services sector
will be favourable for asset/land prices and a key driver of change in
sentiment. India’s property market is expected to experience longterm secular
growth, despite short-term cyclical difficulties. Easing liquidity situation
along with a relatively stable interest rate scenario will improve sentiments.
Company Overview
With more than two
decades of experience in real estate industry in all verticals, having
completed 44 projects with an area of 15.70 million sq. ft. the Company is
currently working on 55 projects with a total area of 80.41 million sq. ft. out
of which approx. 35.8 million sq. ft. is already are booked. The Company’s
business portfolio includes residential, commercial (office and retail), DMRC
Projects, Hotels, SEZs, IT Parks, third party construction. The Company
recorded consolidated revenues of Rs.9424.000 Millions for the year ended March
31, 2011. EBIDTA was at Rs.3244.800 Millions reflecting an increase of 8.9%
from Rs.2979.300 Millions in FY10. Net profit was at Rs.1410.600 Millions
versus Rs.1348.600 Millions in FY10, registering a growth of 4.6%. The EPS for
the year stood at Rs.3.40. The PAT margin increased from 13.65% to 14.97%
during the year.
Business Highlights
Some of the Major Highlights of the FY 2010-11
·
Sold 2117 units, comprising an area of 4.07 million
sq. ft.
·
Handed over possession of 1501 units, comprising an
area of 3.78 million sq. ft.
·
Raised Rs.6810.000 Millions through 5 project level
SPVs from PE Funds viz. SUN-Apollo, Red Fort Capital and JP Morgan.
·
Won the auction granting lease for developing 38.3
acres prime land in Sarai Rohilla, New Delhi auctioned by Rail Land Development
Authority (RLDA) for Rs.16515.100 Millions and paid Rs.3303.000 Millions
towards first tranche of lease premium through its subsidiary company.
·
Parsvnath Hotels Limited (PHL), a subsidiary
company and Choice International have entered into master Development Agreement
to develop and manage 100 budget hotels across India, under Sleep-In-PHL brand.
·
Received Completion Certificate received for
Parsvnath City (A and B block) at Indore, Madhya Pradesh.
·
Received Occupancy Certificate for Commercial
Complex at Seelampur Metro Station, Delhi
·
Carrefour, world’s second largest retailer has
opened Carrefour’s first Cash and Carry store in India at Company’s Metro Mall
in Seelampur, New Delhi.
·
Received Occupancy Certificate for its Group
Housing project ‘Parsvnath Exotica’, Gurgaon for 8 residential towers and
commercial units having an area of 1.17 million sq. ft.
·
Received completion certificate for Akshardham
Metro Station, Delhi from Delhi Metro Rail Corporation (DMRC).
·
Received safety certificate from DMRC. The
certificate was given to the Company in recognition for completing one million
man hours worked without any reportable incident from July 1, 2009 to May 31,
2010.
·
Bagged a Third-Party Construction Contract for the
construction of Hostel Building in Footwear Design and Development Institute
(FDDI) at Fursatganj, Rai Bareilly, U.P., having contract value of Rs.104.200
Millions The area to be constructed is approx. 50,000 sq. ft.
New Licences/Sanctions received in FY 2010-11 for
its existing land bank
·
Received licence for its Rohtak Township,
comprising an area of 118.188 acres, from the Town and Country Planning
Department of Haryana Government.
·
Building plans approval received for constructing a
Group Housing at Subhash Nagar, Delhi. The area of plot is 1.59 acres and the
saleable area would be 1,81,020 sq. ft.
·
Environment Clearance received for Parsvnath City,
Lucknow and Parsvnath City, Rohtak.
·
No-Objection Certificate received from Airport
Authority of India for Parsvnath Mall-cum-Hotel, Kukatpally,
·
Hyderabad.
Further, during
the year, the Company has drawn up a clear roadmap of priorities and focused on
its implementation.
Future Outlook
The Company has progressed
well on all its key business parameters that it had set and will continue to
put thrust on faster execution, timely deliveries and maximizing cash flows.
The Company has strategically gone for bidding for new land and is committed to
develop the same within stipulated time.
The Company has
also identified a clear execution roadmap and drawn up a clear possession
schedule for the near term, for the short term and over the period of two years
and the Company is systematically taking this forward utilising its core
strengths and execution prowess.
The Company
reiterates its major focus on mid income and affordable housing and it has a
strong Portfolio of mid income and affordable houses. Innovation plus average
sale price of apartment in range that appeal customers and make its product
offering an attractive value proposition for consumers.
The Company will
continue to evaluate opportunities to strengthen its balance sheet and it is in
the process of negotiating for Private Equity funding in some other projects
also.
The Company
remains bullish even in a challenging business environment and its focus will
continue to be on the execution of projects. The Company is confident that the
next few quarters will be more robust and will improve its margins.
SUBSIDIARY AND ASSOCIATE COMPANIES
Parsvnath Infra Ltd (PIL):
Company’s SEZ
development is being done through its subsidiary, Parsvnath Infra Limited in
which Company holds 94.87%. The projects encompass some notified and formally
approved ones, besides few which are approved in principle and the rest are
awaiting approvals. In case where SEZs have been notified, Master Plan and
building plans have been submitted and building construction is to be commenced
post requisite approvals. However, due to lack of clarity on the implementation
of new direct tax code regulation on SEZ, the Company has put these SEZ project
son the wait and watch mode. The new direct tax code has brought SEZs under the
purview of Minimum Alternate Tax (MAT) and this has dampened the SEZ plans
across the industry. The only respite in case of their SEZ projects is the land
cost which is very low and has been fully paid. This may make us opt for
de-notification of certain SEZs and instead propose some other suitable
projects such as a township, premium group housing or commercial projects.
Recently, the Government allowed the Company to withdraw its six SEZ projects
in different states, as the Company was of the view that it may not be viable
to pursue the projects as a fall out of imposition of MAT and uncertainty over
continuation of tax sops to SEZ.
Parsvnath Landmark Developers Private Limited
(PLDPL):
PLDPL has received
funding in the form of loan aggregating to Rs.1400.000 Millions from J.P Morgan
Advisors India Private Limited for execution of its premium luxury residential
project ‘La Tropicana’, in Civil Lines, Delhi. The construction of the project
is in full swing after receiving all requisite approvals and sanctions.
Parsvnath Hotels Limited (PHL):
The hotel
properties are proposed to be developed through its wholly-owned subsidiary PHL
except the Mohali one and steps are under way to transfer the hotel properties
to PHL. To expand hotel business, the Company plans to follow management
outsourcing model and has already entered into a management contract with
Fortune Park (an ITC Welcome group company) to develop and own twenty 5-star,
twenty 4-star and ten mid-market budget hotels. PHL, pursuant to a JV agreement
entered into with Royal Orchid Hotels Limited, has a subsidiary company viz.
Parsvnath Royal Orchid Hotels Limited, for the purpose of development of some
hotels at suitable locations. In addition to this, during the year, PHL and
Choice International have entered into a Master Development Agreement to
develop and manage 100 budget hotels across India, under the Sleep-In-PHL
brand.
Primetime Realtors Private Limited (PRPL):
Pursuant to
acquisition of a plot at Kasturba Gandhi Marg, Connaught Place, New Delhi, a
new office-cum-commercial project of 0.14 million sq. ft. is slated to be
launched in the future on the said plot. The Company is in the process of
seeking various approvals and on receipt of the same, construction will
commence.
Parsvnath Estate Developers Private Limited
(PEDPL):
The Company has entered
into an agreement with Red Fort Capital (RFC), a leading international Private
Equity Real Estate firm, whereby RFC has invested Rs.1380.000 Millions in
PEDPL, project SPV/subsidiary company to jointly develop “Red Fort Parsvnath
Towers”, the landmark A-Grade modern state-of-the-art office-cum-commercial
Complex of International Standards, located in the heart of New Delhi i.e.
Connaught Place on Bhai Veer Singh Marg. The construction of the project has
been commenced after receiving all requisite approvals and sanctions. The
Company has already awarded the contract to Larsen and Toubro (L and T),
India’s leading construction and engineering firm, for construction of the
project on a turnkey basis.
Parsvnath Promoters and Developers Private Limited
(PPDPL):
The Company has
entered into an agreement with RFC to develop a prime land parcel of 38.3 acres
in Sarai Rohilla, New Delhi, auctioned by Rail Land Development Authority
(RLDA) for Rs.16515.100 Millions. The Company sold 49% stake of its project
SPV/subsidiary company viz. PPDPL to RFC for Rs.1100.000 Millions. In addition
to this, RFC will invest another Rs.1600.000 Millions. The development would
mainly consist of luxury Residential Apartments along with required
infrastructure and the total developable area would be over four million sq.
ft.
Parsvnath Hessa Developers Private Limited (PHDPL):
The Company had
inked an agreement with Anuradha SA Investments LLC and Anuradha Ventures
Limited, funds managed by SUN-Apollo, an international real estate private
equity fund, for an investment in its premium luxury residential project viz.
“Parsvnath Exotica”, Phase- II, Gurgaon, at an agreed investment of Rs.750.000
Millions for a 50% stake in the project SPV viz. PHDPL for developing Parsvnath
Exotica, Phase-II, Gurgaon.
Parsvnath Buildwell Private Limited (PBPL):
The Company has
inked an agreement with Anuradha SA Investments LLC and Anuradha Ventures
Limited, funds managed by SUN-Apollo, an international real estate private
equity fund, for an investment in its premium residential project at Ghaziabad,
Uttar Pradesh (“Project”) spread over an area of approx. 31 acres known as
“Parsvnath Exotica - Ghaziabad”. SUN-Apollo will invest upto Rs.1000 million
for a 49% stake in the project SPV, PBPL, which will develop the Project,
pursuant to assignment of development rights by the Company. The construction
of the Project has already commenced and all requisite approvals including
sanction of building plans, besides various other approvals such as environmental
clearance, etc., have already been obtained.
Parsvnath Realcon Private Limited (PRPL):
PRPL is operating
as a project SPV for developing a luxury residential project at Subhash Nagar
in West Delhi where CTC Geotechnical Private Limited is working as third party
contractor for construction of towers and the construction is in full swing.
Nanocity Haryana Infrastructure Limited (NHIL):
NHIL was set up as
a joint venture Company between Nano Works Developers Private Limited (Nano
Works) and Haryana State Industrial and Infrastructure Development Corporation
Limited (HSIIDC), proposes to develop “Nanocity” project in the district of
Panchkula, Haryana and has sought the approval of HSIIDC for reduction in area
to 500 acres, upon receipt of which the Company will proceed to acquire land
required for the project.
FIXED ASSETS:
·
Freehold Land
·
Land and Building
·
Building on Leasehold Land
·
Plant and Machinery
·
Construction Machinery
·
Shuttering and Scaffolding
·
Office Equipments
·
Computers
·
Furniture and Fixtures
·
Motor Vehicles
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER/ NINE MONTHS ENDED DECEMBER 31, 2011
Rs. in Millions
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
|
30.09.2011 |
31.12.2011 |
31.12.2011 |
|
|
|
|
|
|
(a)
Net Sales / Income from operations |
1707.781 |
1859.291 |
5123.287 |
|
(b)
Other Operating Income |
79.322 |
71.782 |
419.601 |
|
Total
Income |
1787.103 |
1931.073 |
5542.888 |
|
Expenditure |
|
|
|
|
Cost
of construction / development |
1101.115 |
1255.121 |
3502.432 |
|
Employees
cost |
83.792 |
88.709 |
254.526 |
|
Depreciation |
36.722 |
36.700 |
109.330 |
|
f)
Other expenditure |
158.286 |
123.178 |
424.123 |
|
Total |
1379.915 |
1503.708 |
4290.411 |
|
Profit
from operations before other income, interest and exceptional Items |
407.188 |
427.365 |
1252.477 |
|
Other
income |
29.689 |
29.710 |
91.010 |
|
Profit
before interest and exceptional Items |
436.877 |
457.075 |
1343.487 |
|
Interest |
141.075 |
153.566 |
429.877 |
|
Profit after Interest but
before Exceptional Items |
295.802 |
303.509 |
913.610 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
Profit (+)/Loss(-) from Oridinary
Activities before tax |
295.802 |
303.509 |
913.610 |
|
Tax
expense |
145.165 |
128.822 |
383.185 |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
150.637 |
174.687 |
530.425 |
|
Extraordinary items |
0.000 |
0.000 |
0.000 |
|
Net Profit
(+) / Loss (-) for the year period |
150.637 |
174.687 |
530.425 |
|
Paid
up equity share capital (Face value of Rs.5/- per share) |
2175.906 |
2175.906 |
2175.906 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
-- |
-- |
-- |
|
Earning
per share (EPS) |
|
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
0.35 |
0.40 |
1.22 |
|
(a) Basic and diluted EPS before
Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
0.35 |
0.40 |
1.22 |
|
Public
shareholding |
|
|
|
|
Number of shares |
129844939 |
124764660 |
124764660 |
|
Percentage of shareholding |
29.84 |
28.67 |
28.67 |
|
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
|
a)
Pledged /Encumbered |
|
|
|
|
Number
of shares |
217508483 |
284261528 |
284261528 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
71.24 |
91.57 |
91.57 |
|
Percentage
of shares (as a % of total share capital of the company) |
49.98 |
65.32 |
65.32 |
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
Number
of shares |
87827748 |
26154982 |
26154982 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
28.76 |
8.43 |
8.43 |
|
Percentage
of shares (as a % of total share capital of the company) |
20.18 |
6.01 |
6.01 |
NOTE:
1.
The above financial results have been reviewed by
the audit committee and approved by the board of directors at their respective
meetings held on February 13, 2012. The statutory auditors have also carried out
a limited review of their financial results.
2.
There are no separate reportable segments pursuant
to Accounting Standard As-17 segment reporting prescribed by the companies
(Accounting Standard) Rules 2006. Hence no disclosure is required under AS-17
3.
The consolidated financial results have been prepared in accordance with Accounting
Standard AS-21 Consolidated Financial Statements, AS-27. Financial Reporting of
interest in joint ventures and AS-23 Accounting for Investments in Associates.
4.
Investor’s complaints pending as on September 30,
2011 were 2. The company received 16 investors companies during the quarter
ended December 31, 2011. All 18 complaints were resolved leaving balance of nil
complaints unresolved.
5.
Figures for the previous period / year have been
regrouped, wherever necessary, for the purpose of comparison.
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.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.