MIRA INFORM REPORT

 

 

Report Date :

07.08.2013

 

IDENTIFICATION DETAILS

 

Name :

L AND T – MHI TURBINE GENERATORS PRIVATE LIMITED

(w.e.f. 22.11.2007)

 

 

Formerly Known As :

L AND T TURBO GENERATOR PRIVATE LIMITED

 

 

Registered Office :

L and T House, Ballard Estate, P. O. Box 278, Mumbai – 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

27.12.2006

 

 

Com. Reg. No.:

11-166541

 

 

Capital Investment / Paid-up Capital :

Rs.2501.000 Millions

 

 

CIN No.:

[Company Identification No.]

U31101MH2006PTC166541

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUML06873G

 

 

PAN No.:

[Permanent Account No.]

AABCL2729F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Super Critical Steam Turbine and Generators For Power Plant.

 

 

No. of Employees :

1200 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

USD 5300000

 

 

Status :

Good 

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between “Larsen & Toubro” and Mitsubishi Electric Corporation, Japan. It is a well established company having fine track record.

 

There appear some accumulated losses recorded by the company in FY 2011-12. External borrowings appear to be very huge and increasing over previous years. However, the ratings also take into consideration the recent huge order worth Rs.56800.000 Millions bagged by the company.

 

Trade relations are fair. Business is active. Payment terms are regular.

 

In view of financial, technical and managerial support from the well experienced venture companies, the subject can be considered good 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.

 

 

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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating: A+

Rating Explanation

Adequate Degree of safety and low credit risk.

Date

12.06.2013

 

 

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 DECLINED

 

MANAGEMENT NON-COOPERATIVE.

 

Contact No.: 91-22-67525656

 

 

LOCATIONS

 

Registered Office :

L and T House, Ballard Estate, P. O. Box 278, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-67525656

Fax No.:

91-22-67525893/ 67525858

E-Mail :

ss-sec@lth.itindia.com

imtg.mktg@intpower.com

ccd@lth.ltindia.com

subhodh.shetty@larsentoubro.com  

Website :

http://www.larsentoubro.com

 

 

Factory  :

Hazira Manufacturing Complex, Gate No. 8, West Side, Surat Hazira Road, Post Bhatha, Surat – 394510, Gujarat, India

 

 

Marketing Office :

1st Floor, Pankaj Building, Opposite GEB Substation, N.H. 8 Chhani Road, Vadodara – 391740, Gujarat, India

Tel No.:

91-265-2451600

 

 

DIRECTORS

 

(AS ON 27.08.2012)

 

Name :

Mr. Ravi Uppal

Designation :

Chairman

Address :

No.484, 9th Main, 3rd Cross, Hal II, Stage, Indiranagar, Bangalore-560008, Karnataka, India

Date of Birth/Age :

09.05.1952

Date of Appointment :

17.02.2009

DIN No.:

00025970

 

 

Name :

Yozaburo Mabuchi

Designation :

Director

Address :

2 33 13, Shiroyamadai, Nagasaki Shi, Nagasaki Ken, Nagasaki, Japan

Date of Birth/Age :

04.10.1951

Date of Appointment :

23.12.2008

DIN No.:

01585780

 

 

Name :

Masayuki Kubo

Designation :

Director

Address :

3-4-4-501, Kamioooka-Nishi, Konan-Ku, Yokohama-Shi, Kanagawa-Ken, Japan

Date of Birth/Age :

15.08.1952

Date of Appointment :

01.04.2011

DIN No.:

01585730

 

 

Name :

Sravankumar Venkata Satya Yeleswarapu

Designation :

Director

Address :

Flat No.801, Verona, Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India

Date of Birth/Age :

24.02.1960

Date of Appointment :

26.01.2012

DIN No.:

01080060

 

 

Name :

Hideshi Kawamoto

Designation :

Director

Address :

Koudagou, 1196-135, Nagayocho, Nishisonokigun, Japan

Date of Birth/Age :

07.02.1962

Date of Appointment :

26.04.2012

Din No.:

05256959

 

 

Name :

Mr. Subrat Kumar Das

Designation :

Whole Time Director

Address :

No.52, Ashirwad Bunglows, Near Rajhans Cinema, Dumas Road, Surat – 395007, Gujarat, India

Date of Birth/Age :

17.03.1952

Date of Appointment :

22.05.2012

DIN No.:

05283783

 

 

Name :

Hisashi Fukuda

Designation :

Whole Time director

Address :

1-7-250, OONO-CHO, Kanagawa-KU, Yokohama, Japan 22100550

Date of Birth/Age :

24.01.1959

Date of Appointment :

22.05.2012

DIN No.:

05283782

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil Kumar Mehta

Designation :

Company Secretary

Address :

9, Navratan Baug, Indore-452001, Madhya Pradesh, India

Date of Birth/Age :

07.09.1964

Date of Appointment :

01.03.2011

Pan No.:

ABAPM8233E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(AS ON 27.08.2012)

 

Names of Shareholders



No. of Shares

 

 

 

Mitsubishi Heavy Industries Limited, Tokyo

 

97539000

Mitsubishi Electric Corporation, Tokyo

 

25010000

Larsen and Toubro Limited, India

 

127551000

 

 

 

Total

 

 

250100000

 

 

(AS ON 04.05.2013)

 

Names of Allottee



No. of Shares Allotted

 

 

 

Larsen and Toubro Limited, India

 

20400000

Mitsubishi Heavy Industries Limited, Tokyo

 

19600000

 

 

 

Total

 

 

40000000

 

 

(AS ON 22.09.2012)

Equity Shares Break – up

 

Category

 

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

49.00

Bodies corporate

 

51.00

 

 

 

Total

 

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Super Critical Steam Turbine and Generators For Power Plant.

 

 

GENERAL INFORMATION

 

No. of Employees :

1200 (Approximately)

 

 

Bankers :

·         ICICI Bank Limited

Landmark Race Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

 

 

Facilities :

Secured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Short Term Borrowings

 

 

Loans Repayable non Demand from Banks

(Secured by hypothecation of inventories, book debts and receivables)

1635.627

0.000

 

 

 

Total

 

1635.627

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sharp and Tannan

Chartered Accountants

Address :

Ravindra Annexe, 194, Churchgate Reclamation, Dinshaw Vachha Road, Mumbai-400020, Maharashtra, India

PAN No.:

AAAFS2967E

 

 

Joint Ventures :

·         Mitsubishi Heavy Industries Limited, Japan

·         Mitsubishi Electric Corporation, Japan

 

 

Holding Company :

·         Larsen and Toubro Limited, India

[L99999MH1946PLC004768]

 

 

Fellow Subsidiary :

·         L and T-Valdel Engineering Limited, India

[U74210KA2004PLC035094]

 

·         L and T-MHI Boilers Private Limited, India

[U29119MH2006PTC165102]

 

·         Larsen and Toubro Infotech Limited, India

[U72900MH1996PLC104693]

 

·         L and T-Sargent and Lundy Limited, India

[U74210MH1995PLC088099]

 

·         L and T Power Limited, India

[U40100MH2006PLC160413]

 

·         EWAC Alloys Limited, India

[U74999MH1962PLC012315]

 

·         L&T Special Steels and Heavy Forgings Private Limited, India

[U27109MH2009PTC193699]

 

 

CAPITAL STRUCTURE

 

(AS ON 27.08.2012)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

390000000

Equity Shares

Rs.10/- each

Rs.3900.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

380600000

Equity Shares

Rs.10/- each

Rs.3806.000 Millions

 

 

 

 

 

 

 

(AS ON 31.03.2012)

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

390000000

Equity Shares

Rs.10/- each

Rs.3900.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

250100000

Equity Shares

Rs.10/- each

Rs.2501.000 Millions

 

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

2501.000

2501.000

(b) Reserves & Surplus

 

(1172.005)

(955.990)

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1)+(2)

 

1328.995

1545.010

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

8707.284

5268.408

(b) Deferred tax liabilities (Net)

 

246.232

0.000

(c) Other long term liabilities

 

0.000

0.000

(d) long-term provisions

 

0.000

0.000

Total Non-current Liabilities (3)

 

8953.516

5268.408

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

1635.627

0.000

(b) Trade payables

 

12351.682

9615.340

(c) Other current liabilities

 

4363.230

4938.441

(d) Short-term provisions

 

365.945

532.861

Total Current Liabilities (4)

 

18716.484

15086.642

 

 

 

 

TOTAL

 

28998.995

21900.060

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

6891.293

4969.653

(ii) Intangible Assets

 

147.030

157.309

(iii) Capital work-in-progress

 

1341.910

1620.489

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

0.000

0.000

(c) Deferred tax assets (net)

 

577.999

0.000

(d)  Long-term Loan and Advances

 

1327.875

1472.739

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

10286.107

8220.190

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

312.159

(b) Inventories

 

247.956

51.208

(c) Trade receivables

 

5910.980

1528.362

(d) Cash and cash equivalents

 

(16.825)

129.056

(e) Short-term loans and advances

 

1360.080

3220.256

(f) Other current assets

 

11210.697

8438.829

Total Current Assets

 

18712.888

13679.870

 

 

 

 

TOTAL

 

28998.995

21900.060

 

 

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

1501.000

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

(760.384)

NETWORTH

 

 

740.616

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

1386.626

TOTAL BORROWING

 

 

1386.626

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

2127.242

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

309.111

Capital work-in-progress

 

 

2515.056

 

 

 

 

INVESTMENT

 

 

1120.355

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

12.858

 

Sundry Debtors

 

 

0.000

 

Cash & Bank Balances

 

 

130.921

 

Other Current Assets

 

 

3359.183

 

Loans & Advances

 

 

2102.517

Total Current Assets

 

 

5605.479

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

 

 

3846.109

 

Other Current Liabilities

 

 

3570.192

 

Provisions

 

 

6.458

Total Current Liabilities

 

 

7422.759

Net Current Assets

 

 

(1817.280)

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

2127.242

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income (Revenue)

12323.845

11352.367

4276.023

 

 

Other Income

NA

NA

NA

 

 

TOTAL                                     (A)

NA

NA

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                     (B)

NA

NA

NA

 

 

 

 

 

Less

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

395.673

(151.438)

NA

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

732.666

39.639

NA

 

 

 

 

 

 

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

(336.993)

(191.077)

(637.429)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

412.355

94.119

11.534

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX (E-F)                  (G)

(749.348)

(285.196)

(648.963)

 

 

 

 

 

Less

TAX                                                                  (H)

577.999

0.000

0.048

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX (G-H)                    (I)

(171.349)

(285.196)

(649.011)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(978.837)

(693.641)

(44.630)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(1150.186)

(978.837)

(693.641)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Other Earnings

4.819

0.000

0.836

 

TOTAL EARNINGS

4.819

0.000

0.836

 

 

 

 

 

 

Earnings Per Share (Rs.)

(0.69)

(1.80)

(4.88)

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(2.77)

(1.41)

(10.97)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.56)

(0.18)

(0.88)

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

7.78

3.41

1.87

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.99

0.91

0.76

 


 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITY OF LONG TERM BORROWINGS DETAIL:

 

 

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

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three 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

Yes

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

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

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

Yes

 

 

UNSECURED LOANS

 

Particulars

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Long Term Borrowings

 

 

External Commercial Borrowings (ECB’s)

(Repayable in 6 equal Half yearly installments commencing from 15/03/2017 and ending on 15/09/2019)

8707.284

5268.408

 

 

 

Total

 

8707.284

5268.408

 

 

FINANCIAL AND PERFORMANCE OF THE COMPANY:

 

During the year, the Company has made a good progress in completion of customer projects. The revenue has increased by 8.5% to Rs.12323.845 Millions as against Rs.11352.367 Millions in the previous year. The Company was not able to secure any major orders during the year because of current market scenario, however due to sustained effort from the Management to remain competitive in the market has resulted in improvements in the manufacturing processes, supply chain initiatives and able to achieve a reasonable Operating Margin during the year. However, a mark-to-marketloss (MTM) on term loans has resulted in bringing down the margin significantly.

 

The Company has fully completed the phase I of the manufacturing facility establishment and made good progress in the phase II program during the year at Hazira, Surat. The Company has received ISO 14001:2004 certification for Environmental Management Systems and OHSAS 18001:2007 certification for Occupational Health and Safety Management Systems. Further, the Company has increased the talent pool and trained the employees to absorb the manufacturing technology at a faster pace. The Company is exploring the possibilities of Export and Renovation and Modernization business and is confident of improving the performance in the coming years.

 

 

 

INDEX OF CHARGES

 

S.

No.

Charge ID

Date of Charge Creation/

Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10240270

23/09/2011 *

12,500,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B22575625

 

* Date of charge modification

 

 

FIXED ASSETS:

 

·         Land

·         Building

·         Plant and Equipment

·         Furniture and Fixtures

·         Vehicles

·         Office Equipments

·         Electric Equipments

·         Air Conditioners

·         Tools, Jigs and Fixtures

·         Computer

 

 

NEWS:

 

L & T’S POWER EQUIPMENT BIZ AWAITS MORE ORDERS

 

Mumbai – April 2, 2013

 

 

Larsen and Toubro's super-critical power equipment business, whose break-even was delayed by a year-and-a-half, got a breather today. After a gap of nearly two years, the capital goods company has bagged an order worth Rs.56800.000 Millions, its biggest order yet, from Rajasthan Vidyut Utpadan Nigam.

 

The order involves supply of equipment as well as the civil construction work for a 1,320 megawatt power plant to be set up at Chhabra in the Baran District in Rajasthan. Even this order, however, does not ensure that the power equipment business would achieve a breakeven.

 

The company had forged a joint venture with Japanese major Mitsubishi to produce environment friendly super-critical equipment, under the name L&T-MHI Turbine Generators (LMTG) in 2007. The JV hoped to bag orders as private power producers who were expanding then, but many orders were lost to Chinese companies.

 

“We are on the threshold of a break-even. This order alone is not enough. We have to bag another order of similar value for break-even," said Shailendra N Roy, whole-time director of the company. The company, which has a capacity of 5,000 megawatts, is capable of executing 50% more orders, than it currently has. Its facility in Surat, Gujarat also has an option to increase its capacity by another 1,000 megawatts, which has not been utilised due to low ordering. After the Rajasthan order, the facility has L&T now has orders for supply and installation of 26 super-critical steam generators and steam turbine generators.

 

The last large order that was won by L&T MHI was from JP Power for its 1,320 megawatts power plant Madhya Pradesh around two years back. After that they bagged a small balance of plant job from the Dainik Bhaskar group. While orders from private power generators have dried up due to worries over coal supply, L&T is banking on orders from state-owned utilities.

 

It expects as many as eight state utilities are expected to announce their orders in the current financial year. It has already bid for three of these tenders which have already been announced, and is known to be the lowest bidder of yet another 1,320 megawatts order for boilers from NTPC. This news, however, was not confirmed by the company.

 

Last month, rating agency CRISIL revised outlook on the business of L&T Mitsubishi joint venture to 'negative', while re-affirming its rating at 'A+', indicating low-credit risk for its long-term loans of Rs.15000.000 Millions.

 

The agency had revised its rating due to its shrinking order book. “The slowdown in investments in new power plants is leading to fewer orders for the company; competition from both domestic and international peers has also intensified," the rating agency said, in its report.

 

CRISIL had said that LMTG is likely to receive a new order in its report released before the announcement. Yet, it believed that the order book is expected to remain significantly lower than earlier expected. This low ordering, would adversely impacting the company’s revenues as well as profitability.

 

“LMTG is likely to take longer to achieve breakeven; its capital structure and debt protection metrics will remain constrained over the medium term, given the continued pressure on its profitability and the increased debt levels," the report said.

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No 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.61.54

UK Pound

1

Rs.94.37

Euro

1

Rs.81.58

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

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

 

54

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

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

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