|
Report Date : |
02.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
UANMAX – SARAL (JV) |
|
|
|
|
Registered
Office : |
Flat No.401, Plot No. 319 and 320, Ayyappa Society, Madhapur Hyderabad
- 500081 Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
15.07.2011 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 49.952 Millions |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAAAU3998G |
|
|
|
|
Legal Form : |
Association of Persons (AOP) |
|
|
|
|
Line of Business
: |
Undertaking an irrigation project in the state of Andhra Pradesh named
as “Pranachita – Chevella lift irrigation scheme – Link – 11 – package VIIs |
|
|
|
|
No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an Association of person formed as a joint venture between
Max Infra (India) Limited and Sarala Project Works Private Limited on July
15, 2011 in order to undertake an irrigation project in the state of Andhra
Pradesh named as “Pranashita – Chevella lift irrigation scheme – Link – 11 –
package VII” The ratings take into consideration the high working capital in
tensily of operations inherent to the construction industry. The company has
also recorded a low profit margin during 2012. The project is important in order to facilitate and provide water to
the residents of the state. The project deadline as mentioned in the
agreement is October 2019 with approximate of 800 workers working on the project.
The requirement of funds may reach at 2000 crores. If the project meets the
deadline. Trade relations are fair. Project is active. Payments terms are slow
but correct. As two reputed companies are involved in the completion of project,
the subject can be considered for business dealings with some caution. |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years respectively.
By 2020, emerging Asia will become the world’s largest consuming block,
overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. K. Srinivas |
|
Designation : |
Accountant |
|
Contact No.: |
91-9908487222 |
|
Date : |
29.07.2013 |
LOCATIONS
|
Registered Office : |
Flat No.401, Plot No. 319 and 320, Ayyappa Society, Madhapur Hyderabad
- 500081 Andhra Pradesh, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
Email : |
MANAGEMENTS
As on: 31.03.2012
|
Name : |
Mr. B.V.V.S.N Raju |
|
Designation : |
Whole Time Director (Uanmax
Infra Limited) |
|
|
|
|
Name : |
Mr. G. Venkateshwara Varma |
|
Designation : |
Chairman (Sarala Project Works
Private Limited) |
BUSINESS DETAILS
|
Line of Business : |
Undertaking an irrigation project in the state of Andhra Pradesh named
as “Pranachita – Chevella lift irrigation scheme – Link – 11 – package VIIs |
GENERAL INFORMATION
|
No. of Employees : |
800 (Approximately) |
|
|
|
|
Bankers : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Ramana Reddy and Associates Chartered Accountant |
|
|
|
|
Joint Venture Companies : |
|
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
CAPITAL STRUCTURE
As on: 31.03.2012
|
PARTNERS CAPITAL
ACCOUNTS: |
(Rs. In Millions) |
|
|
i) Sarala Project Works Private Limited |
45.880 |
|
|
Add: Share of surplus from Profit and Loss Account |
0.757 |
|
|
|
|
46.637 |
|
|
|
|
|
ii) Uanmax Infra Limited |
1.859 |
|
|
Add: Share of Surplus from Profit and Loss |
1.457 |
|
|
|
|
3.316 |
|
|
|
|
|
TOTAL
|
|
49.953 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
|
|
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES: |
|
|
|
|
(1)Capital Accounts |
|
|
|
|
(a) Partners Capital Accounts s |
|
|
49.953 |
|
Total |
|
|
49.953 |
|
|
|
|
|
|
II.
APPLICATION
OF FUNDS: |
|
|
|
|
(1)
Current Assets, Loan and Advances |
|
|
|
|
(a)
Inventories |
|
|
248.980 |
|
(b) Trade
receivables |
|
|
92.338 |
|
(c) Cash
and cash equivalents |
|
|
9.648 |
|
(d)
Short-term loans and advances |
|
|
7.791 |
|
(e) Other
current assets |
|
|
173.469 |
|
|
|
|
532.226 |
|
|
|
|
|
|
Less: Current
Liabilities and Provisions |
|
|
482.274 |
|
Net Current Assets |
|
|
49.952 |
|
|
|
|
|
|
TOTAL
|
|
|
49.952 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
|
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from Operations |
|
|
165.818 |
|
|
|
Increase/Decrease in Work in progress |
|
|
248.979 |
|
|
|
TOTAL |
|
|
414.797 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Construction Expenses |
|
|
411.481 |
|
|
|
Audit Fees |
|
|
0.112 |
|
|
|
TOTAL |
|
|
411.593 |
|
|
|
|
|
|
|
|
|
PROFIT FOR THE
YEAR BEFORE TAXATION |
|
|
3.203 |
|
|
Less |
Provision for
Tax |
|
|
|
|
|
|
: Current Income Tax |
|
|
0.990 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT FOR
THE YEAR TRANSFERRED |
|
|
2.213 |
|
|
|
|
|
|
|
|
|
|
TO PARTNERS
CAPITAL ACCOUNT |
|
|
|
|
|
|
Uanmax Infra Limited (65.80%) |
|
|
1.456 |
|
|
|
Sarala Project Works Private Limited |
|
|
0.757 |
|
|
|
TOTAL |
|
|
2.213 |
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check
List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year
of Establishment |
Yes |
|
2] |
Locality
of the firm |
Yes |
|
3] |
Constitutions
of the firm |
Yes |
|
4] |
Premises
details |
No |
|
5] |
Type
of Business |
Yes |
|
6] |
Line
of Business |
Yes |
|
7] |
Promoter's
background |
No |
|
8] |
No.
of employees |
Yes |
|
9] |
Name
of person contacted |
Yes |
|
10] |
Designation
of contact person |
Yes |
|
11] |
Turnover
of firm for last one years |
Yes |
|
12] |
Profitability
for last one years |
Yes |
|
13] |
Reasons
for variation <> 20% |
---------------------- |
|
14] |
Estimation
for coming financial year |
No |
|
15] |
Capital
in the business |
Yes |
|
16] |
Details
of sister concerns |
Yes |
|
17] |
Major
suppliers |
No |
|
18] |
Major
customers |
No |
|
19] |
Payments
terms |
No |
|
20] |
Export
/ Import details (if applicable) |
No |
|
21] |
Market
information |
---------------------- |
|
22] |
Litigations
that the firm / promoter involved in |
---------------------- |
|
23] |
Banking
Details |
Yes |
|
24] |
Banking
facility details |
No |
|
25] |
Conduct
of the banking account |
---------------------- |
|
26] |
Buyer
visit details |
---------------------- |
|
27] |
Financials,
if provided |
Yes |
|
28] |
Incorporation
details, if applicable |
Yes |
|
29] |
Last
accounts filed at ROC |
No |
|
30] |
Major
Shareholders, if available |
No |
|
31] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN
of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
No |
PROJECT NAME:
Pranahita – Chevella Lift Irrigation Scheme –
Link – II – Package VII
PROJECT WORK DETAIL:
Detailed investigations, designs and execution
of lift irrigation scheme for drawl of 146.24 TMC of water from medaram
reservoir near Nandi Medaram (V), Dharmaram (M), Karimnagar District to
Kakatiya Canal near Ragampet (V), Choppadandi (M), Karimnagar district and to
lift 32 TMC of water to drop in to Kakatiya canal and to facilitate to carry
114.24 TMC water further the components such as approach channel, CM and CD
works, lifts, pressure mains and lined tunnels, with all associated civil,
Hydro – Mechanical and Electro – Mechanical works, improvements to Kakatiya
canal near Ragampet (V).
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 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 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.60.74 |
|
|
1 |
Rs.92.05 |
|
Euro |
1 |
Rs.80.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
JML |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.