MIRA
INFORM REPORT
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Report Date : |
16.03.2012 |
IDENTIFICATION DETAILS
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Name : |
PRATIBHA INDUSTRIES LIMITED |
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Registered
Office : |
Shrikant Chambers, Phase II, 5th Floor, Sion – Trombay Road,
Next To R.K. Studio, Chembur, Mumbai – 400071, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
19.07.1995 |
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Com. Reg. No.: |
11-090760 |
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Capital Investment
/ Paid-up Capital : |
Rs.348.849 Millions |
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CIN No.: [Company Identification
No.] |
L45200MH1995PLC090760 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP08929E |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
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No. of Employees
: |
90 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (58) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 19000000 |
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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 company having fine track. Financial
position of the company appears to be good. 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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Shrikant Chambers, Phase II, 5th Floor, Sion – Trombay Road,
Next To R.K. Studio, Chembur, Mumbai – 400071, Maharashtra, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
14th Floor,
Universal Majestic, P. L Lokhande Marg, Off. Ghatkopar Mankhurd |
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Tel. No.: |
91- 22-3955 9999 |
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Fax No.: |
91- 22-3955 9900 |
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E-Mail : |
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Factory : |
Plot No. 215,
Vljaypur, P.O. Kone, Bhiwandi-Wada Road, Tal Wada, Dist. Thane - 421 303,
Maharashtra, India |
DIRECTORS
As on 31.03.2011
|
Name : |
Mrs. Usha B.
Kulkarni |
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Designation : |
Chairperson |
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Name : |
Mr. Ajit B. Kulkarni |
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Designation : |
Managing Director |
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Name : |
Mr. Vinayak B.
Kulkarnl |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Rahit R.
Katyal |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Awinash M.
Arondekar |
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Designation : |
Independent
Director |
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Name : |
Mr. ShrikantT.
Gadre |
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Designation : |
Independent Director |
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Name : |
Dr. S. L Dhlngra |
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Designation : |
Independent
Director |
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Name : |
Mr. V. Sivakumaran |
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Designation : |
Independent
Director |
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Name : |
Mr. Vilas B.
Parulekar |
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Designation : |
Independent
Director |
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KEY EXECUTIVES
|
Name : |
Mr. Pankaj S.
Chourasia |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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52,132,829 |
52.43 |
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52,132,829 |
52.43 |
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-- |
-- |
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Total shareholding of Promoter and Promoter Group (A) |
52,132,829 |
52.43 |
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(B) Public Shareholding |
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5,344,400 |
5.38 |
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32,260 |
0.03 |
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16,698,647 |
16.80 |
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22,075,307 |
22.20 |
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7,520,030 |
7.56 |
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10,208,281 |
10.27 |
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2,621,639 |
2.64 |
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4,866,871 |
4.90 |
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308,652 |
0.31 |
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17,510 |
0.02 |
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736,361 |
0.74 |
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Foreign Corporate
Bodies |
3,804,348 |
3.83 |
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25,216,821 |
25.36 |
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Total Public shareholding (B) |
47,292,128 |
47.57 |
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Total (A)+(B) |
99,424,957 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
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-- |
-- |
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-- |
-- |
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-- |
-- |
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Total (A)+(B)+(C) |
99,424,957 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family 
Directors/Promoters and their Relatives and
FriendsBUSINESS DETAILS
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Line of Business : |
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PRODUCTION STATUS (As On 31.03.2011)
Licensed Capacity
and Installed Capacity
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
M S Pipe |
M.T. |
90.00 |
17.055 |
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Coating |
M2 |
1800.00 |
262.587 |
Actual Production
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Particulars |
Unit |
Actual
Production |
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M S Pipe |
M.T. |
15.658 |
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M S Cut End |
M.T. |
0.970 |
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HR Coil/Plate |
M.T. |
1.993 |
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Coating of Pipe |
M2 |
262.587 |
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GENERAL INFORMATION
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No. of Employees : |
90 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
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Statutory Auditors : |
Jayesh Sanghrajka
and Company Chartered Accountants |
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Internal Auditors : |
Chokshi and
Chokshi Chartered
Accountants |
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Subsidiaries : |
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Associates : |
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Joint Ventures : |
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CAPITAL STRUCTURE
As on31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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125000000 |
Equity Shares |
Rs.2/- each |
Rs.250.000 Millions |
|
1631000 |
Compulsorily Convertible Participatory Preference Shares |
Rs.92/- each |
Rs.150.052 Millions |
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Total |
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Rs.400.052
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
99424957 |
Equity Shares |
Rs.2/- each |
Rs.198.849
Millions |
|
1630435 |
Compulsorily Convertible Participatory Preference Shares |
Rs.92/- each |
Rs.150.000
Millions |
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Total |
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Rs.348.849 Millions |
Note:
A.
- Of the above 40000000 shares have been issued as bonus shares as on 21.06.2005 being issued for consideration other than cash
- Of the above 12000000 shares have been issued to two SEBI registered Qualified Institutional Buyers on 19.12.2007
- Shares of the company has split from Rs.10/- to Rs.2/- w.e.f. 02.08.2010
- Of the above 12,195,609 shares have been issued to ten SEBI registered Qualified Institutional Buyers on 15.10.2010
- Of the above, 3804348 shares have been issued on preferential basis on 25.11.2010
B.
- Of the above, 1,630,435 shares have been issued on preferential basis on 25.11.2010.
- These shares are convertible into equity shares after 18 months of their allotment
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
348.849 |
166.850 |
166.850 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4485.865 |
2586.918 |
2080.354 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4834.714 |
2753.768 |
2247.204 |
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LOAN FUNDS |
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1] Secured Loans |
2731.465 |
2930.037 |
2053.809 |
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2] Unsecured Loans |
1100.000 |
1300.000 |
300.000 |
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TOTAL BORROWING |
3831.465 |
4230.037 |
2353.809 |
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DEFERRED TAX LIABILITIES |
183.959 |
131.105 |
61.701 |
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TOTAL |
8850.138 |
7114.910 |
4662.714 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2983.876 |
2688.571 |
1455.054 |
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Capital work-in-progress |
147.980 |
113.657 |
491.113 |
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INVESTMENT |
104.137 |
136.223 |
148.432 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3438.949
|
2938.638 |
1761.900 |
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Sundry Debtors |
1792.851
|
1858.704 |
1274.425 |
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Cash & Bank Balances |
1024.917
|
617.044 |
692.226 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
4203.463
|
2546.122 |
1312.346 |
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Total
Current Assets |
10460.180
|
7960.508 |
5040.897 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
2123.821
|
1917.577 |
1456.830 |
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Other Current Liabilities |
621.110
|
434.189 |
244.869 |
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Provisions |
2101.104
|
1432.283 |
771.083 |
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Total
Current Liabilities |
4846.035
|
3784.049 |
2472.782 |
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Net Current Assets |
5614.145
|
4176.459 |
2568.115 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
8850.138 |
7114.910 |
4662.714 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income Form Operations |
11687.246 |
9298.305 |
7462.499 |
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Other Income |
76.542 |
50.754 |
115.273 |
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TOTAL (A) |
11763.788 |
9349.059 |
7577.772 |
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Less |
EXPENSES |
|
|
|
|
|
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|
Cost of Work Done |
8411.980 |
6554.237 |
5789.133 |
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Personnel Expenses |
616.793 |
459.319 |
305.241 |
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|
Administrative, Selling and Other Expenses |
1015.754 |
969.338 |
556.275 |
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TOTAL (B) |
10044.527 |
7982.894 |
6650.649 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1719.261 |
1366.165 |
927.123 |
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Less |
FINANCIAL
EXPENSES (D) |
617.723 |
493.102 |
317.700 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1101.538 |
873.063 |
609.423 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
143.388 |
108.592 |
59.010 |
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PROFIT BEFORE
TAX (E-F) (G) |
958.150 |
764.471 |
550.413 |
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|
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Less |
TAX (H) |
243.819 |
199.345 |
103.137 |
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PROFIT AFTER TAX
(G-H) (I) |
714.331 |
565.127 |
447.276 |
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
72.000 |
57.000 |
35.000 |
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|
Interim Dividend |
20.200 |
0.000 |
0.000 |
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|
Tax on Dividend |
10.100 |
8.507 |
5.671 |
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|
Proposed Dividend on Equity Shares |
40.400 |
50.055 |
33.370 |
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|
BALANCE CARRIED
TO THE B/S |
571.600 |
449.565 |
373.235 |
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
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|
Export |
214.492 |
11.015 |
42.328 |
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TOTAL EARNINGS |
214.492 |
11.015 |
42.328 |
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IMPORTS |
|
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Raw Materials |
0.000 |
5.553 |
0.000 |
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Capital Goods |
1.792 |
2.938 |
14.078 |
|
|
|
Consumables Store |
0.000 |
85.324 |
7.281 |
|
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TOTAL IMPORTS |
1.792 |
93.815 |
21.359 |
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Earnings Per
Share (Rs.) |
7.91 |
6.77 |
26.81 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rdQuarter |
|
Net Sales |
3023.110 |
2909.740 |
3963.950 |
|
Total Expenditure |
2549.020 |
2490.090 |
3417.570 |
|
PBIDT (Excl OI) |
474.090 |
419.650 |
546.380 |
|
Other Income |
0.000 |
10.010 |
39.840 |
|
Operating Profit |
474.090 |
429.660 |
586.210 |
|
Interest |
182.420 |
167.070 |
277.720 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
291.670 |
262.590 |
308.500 |
|
Depreciation |
42.400 |
45.200 |
50.570 |
|
Profit Before Tax |
249.270 |
217.390 |
257.920 |
|
Tax |
62.900 |
53.930 |
67.130 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
186.370 |
163.460 |
190.790 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
186.370 |
163.460 |
190.790 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.07
|
6.04 |
5.90 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.20
|
8.22 |
7.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.13
|
7.18 |
8.48 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.28 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.79
|
2.91 |
2.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.16
|
2.10 |
2.03 |
LOCAL AGENCY FURTHER INFORMATION
HIGHLIGHTS OF
FINANCIAL PERFORMANCE
The financial highlights of the Company in 2010-11 on a consolidated basis are as under:
• Balance Order Book at Rs.736220 Millions at the close of 2010-11.
• Revenue from operations increased by 25.71% from Rs.710134.300 Millions in 2009-10 to Rs.712739.900 Millions in 2010-11.
• EBIDTA grew by 24.52% from Rs.71429.100 Millions in 2009-10 to Rs.71779.500 Millions in 2010-11.
• PAT increased by 26.40% from Rs.7565.100 Millions in 2009-10 to Rs.7714.300 Millions in 2010-11.
• Net Profit Margin for the year 2010-11 is 5.61% as against 5.58% last year.
• EPS grew by 16,70% from 7677 per share in 2009 10 to 77.90 per share in 2010-11.
The company's order book stands currently at Rs.736220 Millions diversified across segments like water treatment (60%) and urban infrastructure (40%) with an average execution period of 2-3 years. We expect to close the financial year with an order book of Rs.750000 Millions. There current order book to sales is 3.10 times of FY11 revenue.
To meet the ambitious growth plans of the company, a structured organization with succession planning and strategies for development of the required technical and managerial skills within the organization are being developed. The Company is deputing its personnel for various training programs in established institutions besides in house training so as to improve the managerial and technical skill sets. The company is following the most favorable human resource policy as prevailing In the Industry. We believe In peaceful and harmonious relationship with the personnel of all the levels to achieve our goals. The Company firmly believes the Involvement of personnel into decision making process of the Company. The Company continues to provide growth opportunities to its employees by way of training workshop and by that way to retain efficient and talented employees in the Company.
Occupational Health, Safety and Environment Management are given the utmost Importance in The Company. There is in place a well defined in-house training program for its employees to upgrade their operating skills. The relations between the Company and the employees were cordial and the Company experienced peace and harmony throughout the year. The Company has well defined policy to recruit qualified with proven track record professionals In operations and business development, which would provide able support to management In its endeavor to scale greater heights. The company is following the highest level of safety measures for the Its most precious assets I.e. human beings. The company is also having a well defined policy for environmental safety.
The Company places a high emphasis on the empowerment and well-being of its employee. Training and developmental activities are identified and organized with the progress continually monitored to enrich the people capital. The Company has been aggressively focusing on attracting and retaining the best available talent. Adequate welfare measures are In place and the Company will continue to improve the same on an ongoing basis.
PERFORMANCE REVIEW:
Yet another year of splendid performance exhibited by the Company and cloaked a record turnover and stormed into elite league of companies having turnover more than Rs.10000.000 Millions on standalone basis. The company again displayed its flawless skills of execution of complex, prestigious and extreme engineering projects. The company has achieved a record turnover of Rs12740.000 Millions, which has increased by over 26% compared to Rs.10130.000 Millions in the last financial year. The execution team had undertaken an implausible job and achieved many milestones during the financial year and instrumental in achieving record performance. One of the highlight of the execution team is breakthrough of tunnelling work at Modak Sagar tunnel project initiated by Municipal Corporation of Greater Mumbai.
The order book position of the company has also improved and the balance order position stood at more than Rs.36000.000 Millions. The marketing division of the company has been reorganised and expected to deliver a robust performance in the current financial year. The management is bullish on getting few more big sized orders, which will have substantial positive impact on the working, profitability and standing of the company in the industry. Company’s strategy to diversify has started yielding encouraging results and the company is getting awarded regularly speciality projects in the building construction segment. The continued growth and swelling order book crystallise company’s strength and understanding of the market and its core area of operations.
The water segment continued to play an important and crucial role in the performance of the company and contributes substantially towards the turnover and profitability of the company. It constitutes approximately 60% of total turnover of the Company and the order book is also consists major projects from the water segment. Though the company is venturing into new and different segments, water segment is expected to continue as lead contributor in the performance of the company. The company is also exploring and venturing into the BOT/BOOT/Annuity and such other projects.
Apart from emphasising on execution and getting new orders, the management has emphasised on improved financial management during the period and accordingly, taken some defining steps keeping in mind the long term objectives of the company. These include substantial improvement in crucial financial ratios such as debt equity ratio, debtor turnover ratio etc.
The company has increased its capital base by issuing shares by way of QIP and preferential allotment routes and raised Rs.1500.000 Millions. The enhanced capital base and improved net worth will enable company to leverage its resources more judiciously and ensure improved ratings for availing credit facilities at better rates for future projects and expansion. The recent fund raising activity has also improved Debt Equity Ratio to a great extent now The Company is having the one of the best Debt Equity ratio compared to its peers and other players in the industry.
CONTINGENT LIABILITIES:
Rs. In Millions
|
Particular |
31.03.2011 |
31.03.2010 |
|
Unutilized Letters of Credit with Bankers |
|
|
|
Domestic |
725.621 |
509.903 |
|
Foreign |
101.991 |
121.189 |
|
Bank Guarantee |
8825.524 |
6956.520 |
|
Corporate Guarantee |
3230.900 |
672.100 |
|
Estimated amounts of contract remaining to be executed on Capital Account and not provided for |
65.511 |
245.827 |
|
Cases in the court, which in the opinion of the management, require no provision of liability than what is recorded in accounts. |
52.229 |
43.989 |
|
Income Tax liability (excluding Penalties) that may arise. The Commissioner of Income Tax (Appeal) has allowed the claim of Section 80IA and has passed all the appeal orders in favour of the Company. The Department has filled appeal with ITAT against the orders. |
357.583 |
274.225 |
|
Central Excise Liability (excluding Penalties) that may arise. The matter is with CESTAT. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made. |
13.525 |
0.000 |
|
Service Tax liability (excluding Penalties) that may arise. The matter is with CESTAT. Based on the decisions of the Appellate authorities and t he interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made. |
9.966 |
0.000 |
FIXED ASSETS
- Office Premises
- Plant and Machinery
- Furniture and Fixture
- Electrical Installation
- Office Equipment
- Vehicles
- Computer Software
- Land
WEBSITE DETAILS:
BUSINESS DESCRIPTION
Subjects is engaged in the design, engineering and execution/construction of complex and integrated water transmission and distribution projects, water treatment plants, elevated and underground reservoirs, mass housing projects, commercial complexes, pre-cast design and construction, road construction and real estate. The Company operates in two segments: Infrastructure and Construction, and Manufacturing and Coating. The Company’s subsidiaries include Pratibha Infrastructure Private Limited, Prime Infrapark Private Limited, Bhopal Sanchi Highways Private Limited and Pratibha Developers Private Limited. The Company is a main company of the Pratibha Group. During the fiscal year ended March 31, 2010, the Company had incorporated one overseas subsidiary Pratibha Holding (Singapore) Pte Limited and one step down overseas subsidiary, Pratibha Infra Lanka (Private) Limited. For the six months ended 30 September 2010, Pratibha Industries Limited's revenues increased 24% to RS5.88B. Net income increased 21% to Rs.298.600 Millions. Revenues reflect an increase in income from Infrastructure and construction and higher other income. Net income was partially offset by an increase in consumption of raw materials, an increase in employees cost, an increase in depreciation, an in crease in other expenditures and an increase in interest expenses.
BOARD OF DIRECTORS
Usha B. Kulkarni
Executive Chairperson
of the Board
Mr. Usha B. Kulkarni is Executive Chairperson of the Board
of Pratibha Industries Limited. She is Bachelor in Arts from
Awinash M. Arondekar
Independent
Non-Executive Director
Mr. Awinash M. Arondekar is an Independent Non-Executive
Director of Subject. He has worked for 38 years in Bank of India at various
places including posting in
S. L. Dhingra
Non-Executive
Independent Director
Dr. S. L. Dhingra is Non-Executive Independent Director of
Subject Dr. S. L. Dhingra is a Professor (Retd.) and Emeritus Fellow,
Transportation Systems Engineering, Civil Engineering Department, Indian
Institute of Technology
Shrikant Trimbak
Gadre
Independent
Non-Executive Director
Mr. Shrikant Trimbak Gadre is a Independent Non-Executive
Director of Subject. He has 32 years of banking experience as a techno and
development banker. He was General Manager in Bank of India. He had joined the
United Western Bank Limited as Executive Director and later became the Managing
Director of the Bank. He was also a member of various committees related to
banking and has written several articles on banking in various dailies and
journals. He was also visiting faculty member in Bankers Training College of
Reserve Bank of
Rohit R. Katyal
Whole Time Director
Mr. Rohit R. Katyal is Whole Time Director of Subject since 24
September 2009. He is a Commerce Graduate from
Vinayak B. Kulkarni
Whole Time Director
Mr. Vinayak B. Kulkarni is a Whole Time Director of Subject He has been Director since inception. Mr. Kulkarni holds Diploma in Mechanical Engineering. He has experience in the Pre-cast products building units, sites monitoring, project execution etc. He is working as Whole Time Director of the Company and part of crucial capital approval committee which is responsible for all capital purchases of the Company.
Ajit B. Kulkarni
Managing Director,
Executive Director
Mr. Ajit B. Kulkarni is Managing Director; Executive Director of Subject He is founder of the Pratibha group. He is responsible for execution of all projects undertaken by the Company. He has experience in the construction management of various civil engineering projects. He personally overlooks the project to ensure that highest quality service is given to the client. His conviction coupled with marketing abilities and zeal to lead the team professionally in overall interest of the Company has ensured continual growth of the Company and the group as a whole.
COMPANY PROFILE:
Subject, the flagship company of the Pratibha Group is dedicated and committed to providing the society at large with quality infrastructure in its field of expertise which currently include design, engineering and execution/construction of complex and integrated water transmission and distribution projects, water treatment plants, elevated and underground reservoirs, mass housing projects, commercial complexes, pre-cast design and construction, road construction and real estate.
The company which started with pre-cast products in just over two decades has created a technical niche for itself graduating into a multifunctional construction and infrastructure development company of repute with annual turn over of INR 8060 million. There rapid and consistent growth over the years bear testimony to There focus on dedication, quality of production and services through continuously evolving technologies along with timely execution of projects which has won then accolades and repeated business from There clientele.
Origin and Growth
Subject was established in 1982, by a dynamic young entrepreneur Mr. Ajit B. Kulkarni. The firm started its foray with manufacturing of SFRC manhole covers and frames, which were designed and introduced as a replacement to the conventional cast iron manholes cover and frames. Substantial saving on costs and elimination of theft vis-ŕ-vis the conventional cast iron product ensured huge acceptability with practically all government clients throughout the country. Success in launch of the initial product saw the then partnership firm graduate from strength to strength, by developing and marketing various other pre-cast products.
Till the early ninety’s the firm was focusing only on pre-cast products. In 1992, the firm decided to extend its presence in the civil construction industry and started participating in bids invited for such projects by Government / Semi- government Departments. In-depth technical knowledge and sound management ethics ensured that the company received its first major mass-housing project [INR125.00 million] from CIDCO of Maharashtra Limited in the same year. Being the first project and an opening towards various similar projects, the firm completed the work successfully in seven months against the scheduled completion period of nine months. Timely implementation of this project provided the company opportunities and subsequent orders from IRWO (Indian Railway Welfare Organization), AWHO (Army Welfare Housing Organization) and reputed clients.
In 1994, the Company realized that water supply projects
hold great potential. However, it did not possess any established expertise in
execution of such projects. Inorganic route through formation of Joint Venture
with a competent fellow contractor was the only way out and therefore, the
first strategic alliance with Coromandal Prescrete (Private). Limited, a
While the company was bidding for the various small schemes
in the water supply segment, a fact dawned that without established source of
the major input [steel pipes], it was not possible to hold a competitive edge
over its competitors. This insight saw the birth of the mechanical division of
the Group. The Company took over Teknoworks (
Since, the firm Teknoworks (
Till 2001, the operations of PIL were restricted to the
State of
By 2005, the company had established an inherent expertise in design, construction, operation and maintenance of reasonably sized complex water supply projects, water treatment plants and distribution systems, as also in the other segments in which it was operating. It was realized that there was shift in the government mindset and certain other project implementing agencies and there was determined focus to promote projects on PPP [Public Private Partnership] basis. Though the company was executing mid sized projects on annuity and deferred payment models, the then net-worth and accessibility to debt funds was limited and could prove to be detrimental to the Company’s future growth. There were two paths available – either to maintain the then existing status and subsequently to act as a sub-contractor to bigger contractors or to strengthen its financial position in quest for a place amongst the top construction companies. The Management of the company opted for the latter. It was decided to approach the capital market to raise requisite funds through dilution of 30% of the company’s existing equity base. The Company’s maiden issue hit the market in the first quarter of 2006 and received overwhelming response and was subscribed by over 24 times. The funds raised from the IPO were to be deployed for long term working capital requirements, equity funding for BOOT / PPP projects and setting up of an API accredited spiral pipe manufacturing plant. The Company’s initial and established success in the water segment, due to the availability of proper back up, strengthened the belief that back up of an API accredited pipe manufacturing unit would add as a fillip to its future plans of foray into the lucrative oil and gas pipe transmission EPC projects.
In 2007 and 2008 Subject strengthened their Buildings
Division and bagged many unique and the best Buildings in
In 2009 the company has set up its PPP Division (Public Private Partnership). “The Public-Private Partnership (PPP) Project would be a project based on contract or concession agreement between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges.”
The company over the next few years [2010-2011] on standalone basis or through Joint Ventures, strategic alliances and acquisitions [if a suitable opportunity arises] proposes to have strong presence in road, retail, urban, oil and gas transmission and power segments of the infrastructure sector, apart from water supply segment. It also proposes to be global player in pipe segment and market spill over capacities after accounting for in-house consumption. The said projects will be executed on both, EPC and PPP basis.
PRESS RELEASE:
Pratibha bags
prestigious orders totaling to Rs.5710.000 Millions in the building and water
segment
Subject Flagship Company of the Pratibha Group today announced bagging of two prestigious orders in the building and one in the water segment. The combined value from both the sectors amounts to Rs.5710.00 Millions.
The Company has bagged a project valued at Rs.3620.000 Millions from Runwal Homes Private Limited for the civil and structural work of a residential building ‘Runwal Greens’ located at Mulund - Goregaon Link Road, Mulund (West). The project is scheduled to be completed within a period of 27 months and will have a total built up area of 4.000 lakh sq. ft. This well landscaped residential complex, having several facilities and amenities, will be a landmark in Mulund.
The other project bagged is from Lodha Group valued at Rs.1790.000 Millions for its prestigious project ‘Casa Rio’. This involves the construction of 58 buildings for the integrated township to be set up at Dombivali. The project is scheduled for completion within a period of 16 months in two phases. In the first phase, 30 buildings and in the second phase, 28 buildings will be constructed.
In the water segment the company bagged an EPC contract
worth Rs.300.000 Millions
alongwith its JV partner Gharpure Engineering and Construction Private Limited
from the Urban Improvement Trust, Ajmer Rajasthan. The contract is to generate power from gases
produced from sludge digestion of 60 million liters per day (MLD) from the
Sewage Treatment Plant at Khanpura,
Speaking on winning of these projects, Mr. Ajit B.Kulkarni, Managing Director of Subject said, “It is indeed a matter of great pride for us that we are partnering with Mumbai’s best developers for the construction of their prestigious projects. The award of these contracts is a further demonstration of There leadership position in the building segment. There goal is always to create high-quality infrastructure that embodies aesthetics while preserving the environment. With There long standing experience and qualified workforce, we are well equipped to undertake complex projects”.
He further added, “In an age of unpredictable energy prices
and environmental problems caused by over reliance on fossil fuels, the
generation and use of biogas is one of the most efficient and untapped sources
of alternative energy. We are glad that
we won the contract from the Urban Improvement Trust,
About Pratibha
Industries Limited
Pratibha Group was founded in 1982. Subject, being the listed flagship company of
the Group, is now a leading player in the areas of urban infrastructure which
includes water supply and distribution projects, waste and sewerage management,
including environmental engineering. It is also a leading player in the
construction arena having expertise in speciality building high rise structures
covering residential and commercial complexes, airports, railway stations and
car parks. With its domain expertise in
design, engineering and strict adherence to Quality Control and Assurance, the
Group has expanded operation to the
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.50.22 |
|
|
1 |
Rs.78.64 |
|
Euro |
1 |
Rs.65.54 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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.