MIRA INFORM REPORT

 

 

Report Date :

11.02.2013

 

IDENTIFICATION DETAILS

 

Name :

FERNAS CONSTRUCTION INDIA PRIVATE LIMITED

 

 

Registered Office :

Space No. S - 19, Second Floor, Malhan Falcon Plaza, Plot No. 4, Pocket 7 Sector 12, Dwarka, New Delhi – 110 075

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

10.08.2010

 

 

Com. Reg. No.:

55-206910

 

 

Capital Investment / Paid-up Capital :

Rs. 0.500 million

 

 

CIN No.:

[Company Identification No.]

U45400DL2010PTC206910

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELF04139C

 

 

PAN No.:

[Permanent Account No.]

AABCF5761H

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Construction Contracts.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 4770

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Fernas Construction Company Inc. Turkey.

 

It is a relatively new company having a satisfactory track record. The latest financials are not made available with the government department.

 

As per previous year’s record they have achieved sizable turnover in its financial year of operation. Subject gets good support from its holding company.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealings at usual trade terms and condition.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BBB- (Long Term Bank Facilities)

Rating Explanation

Having moderate degree of safety regarding timely servicing of financial obligations it carry moderate credit risk.

Date

January 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.

 

 

LOCATIONS

 

Registered Office :

Space No. S - 19, Second Floor, Malhan Falcon Plaza, Plot No. 4, Pocket 7 Sector 12, Dwarka, New Delhi – 110 075, India

E-Mail :

kishore@fernas.co.in

 

 

Corporate Office :

Sco 61, Leisure Valley, Sec 29, Near Bikaner Wala, Gurgaon 122001, India

Tel. No.:

91-124-4338300 / 4338333

Fax No.:

91-124-4338303

E-Mail :

rahul@fernas.co.in

sanjiv@fernas.co.in

kishore@fernas.co.in

Website :

www.fernas.com.tr

           

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Rohit Singhal

Designation :

Director

Address :

C – 355, Yojna Vihar, Delhi – 110 095, India

Date of Appointment :

10.08.2010

DIN No.:

02896012

 

 

Name :

Mr. Engin Nasiroglu

Designation :

Director

Address :

Diyarbakir Mahallesi, Nasiroglu Is Markezi No: 103, Batman – 72050, Turkey

Date of Appointment :

10.08.2010

DIN No.:

03042662

 

 

Name :

Mr. Ferhat Nasiroglu

Designation :

Director

Address :

Diyarbakir Mahallesi, Nasiroglu Is Markezi No: 103, Batman – 72050, Turkey

Date of Appointment :

10.08.2010

DIN No.:

03042593

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

 

 

 

Fernas Construction Company, Turkey

 

49900

Mr. Engin Nasiroglu

 

100

 

 

 

TOTAL

 

50000

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

99.98

Directors or relatives of Directors

0.02

Total

100.00

 

 

BUSINESS DETAILS

 

 

Line of Business :

Construction Contracts.

 

 

GENERAL INFORMATION

 

 

No. of Employees :

Not Available

 

 

Bankers :

Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110 001, India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Vishwanath Singh and Associates

Chartered Accountants

Address :

Flat No. 10, Shankar Market, Connaught Circus, New Delhi – 110 001, India

PAN No.:

AAAFV4795R

 

 

Holding Company:

Fernas Insaat A S, Turkey

 

 

CAPITAL STRUCTURE

 

As on 30.09.2011

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares

Rs. 10/- each

Rs. 0.500 million

 

 

 

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

50000

Equity Shares

Rs. 10/- each

Rs. 0.500 million

 

 

 

 

 

 

 

 

 

 

After 31.03.2011

 

Authorized Capital: Rs. 150.000 millions

 

Issued, Subscribed & Paid-up Capital: Rs. 109.658 millions


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2011

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

0.500

2] Share Application Money

 

 

0.006

3] Reserves & Surplus

 

 

0.688

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

1.193

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

0.000

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

0.000

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

1.194

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

0.000

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.000

DEFERRED TAX ASSETS

 

 

0.069

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

0.000

 

Sundry Debtors

 

 

0.000

 

Cash & Bank Balances

 

 

1.361

 

Other Current Assets

 

 

0.000

 

Loans & Advances

 

 

4.558

Total Current Assets

 

 

5.919

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

 

1.548

 

Other Current Liabilities

 

 

2.798

 

Provisions

 

 

0.448

Total Current Liabilities

 

 

4.794

Net Current Assets

 

 

1.125

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

1.194

 


 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

 

31.03.2011

 

 

Services Rendered

 

 

8.607

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Payroll and Benefits

 

 

7.037

 

 

Operating Expenses

 

 

0.580

 

 

TOTAL                                    

 

 

7.617

 

 

 

 

 

 

PROFIT/(LOSS)  BEFORE TAX 

 

 

0.990

 

 

 

 

 

Less

TAX                                                                 

 

 

0.302

 

 

 

 

 

 

PROFIT/(LOSS)  AFTER TAX

 

 

0.688

 

 

 

 

 

 

Earnings/(Loss)  Per Share (Rs.)

 

 

13.75

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2011

PAT / Total Income

(%)

 

 

7.99

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

 

 

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

 

16.72

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

 

0.83

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

 

 

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

 

1.23

 

 

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

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last One year

Yes

12]

Profitability for last One year

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

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

 

BACKGROUND

 

The company was incorporated on August 10, 2010 under the Companies Act, 1956 at New Delhi. The Company is a subsidiary of FernasInsaat A. S., Turkey. The Company is engaged in the business of Civil Engineering Works relating to construction/laying of pipelines, all types of infrastructure works etc and all other such civil and related construction works and convenience of public utility.

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U45400DL2010PTC206910

Name of the company

FERNAS CONSTRUCTION INDIA PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

Space No. S 19, Second Floor, Malhan Falcon Plaza, Plot No. 4 Pocket 7 Sector 12, Dwarka, New Delhi 110075, India

E-mail: kishore@fernas.co.in

This form is for

Creation of charge

Type of charge

Book Debts

Movable Property

Particular of charge holder

Axis Bank Limited, 2nd Floor, Statesman House, 148, Barakhamba Road, New Delhi – 110 001, India

e-mail: f8.axisbank@gmail.com

Nature of description of the instrument creating or modifying the charge

Composite Hypothecation Deed (Current Assets, Movables, Plant & Machinery)

Date of instrument Creating the charge

13.06.2012

Amount secured by the charge

Rs. 1500.000 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

As per sanction letter no. AXISB/MC-1/SS/12-13/47 dated 07.06.2012 to be amended from time to time.

 

Terms of Repayment

As per sanction letter no. AXISB/MC-1/SS/12-13/47 dated 07.06.2012 to be amended from time to time.

 

Margin

As per sanction letter no. AXISB/MC-1/SS/12-13/47 dated 07.06.2012 to be amended from time to time.

 

Extent and Operation of the charge

Pari passu charge.

 

Others

The above is to secure the following credit facilities :-

 

Overdraft Facility-Project specific for OPAL Project                                      = Rs.  500.000 millions

 

Letter of Credit/SBLC for Buyers Credit-Project specific for OPAL Project   = Rs. 1000.000 millions.

Short particulars of the property charged

Hypothecation by way of first pari passu charge over all present and future current assets of the company and second pari passu charge over all present and future movable fixed assets of the company excluding equipment's exclusively charged to other financial institutions stored or to be stored at the company's godowns or premises or wherever else the same may be.

 

PRESS REPORT

 

Fernas Construction bags Rs 19000.000 millions contract from ONGC Petro

 

New Delhi, April 19:  

 

Fernas Construction India Pvt. Ltd, subsidiary of Fernas Construction Company Inc based in Turkey, has signed an EPC contract with ONGC Petro Addition Ltd (OPaL), valued at Rs 19000.000 millions.

 

The project has been awarded to Fernas by OPaL for integrated utilities and offsite packages for Dahej Petrochemical Complex, at Dahej Gujarat. The project completion schedule is 28 months, according to a statement issued by Fernas.

 

The contract was signed in the presence of Mr S. Jaipal Reddy, Minister of Petroleum and Natural Gas, and Mr Zafar Caglayan, Minister of State for External Trade of Turkey.

 

Recently, Fernas also bagged another EPC project valued at Rs. 3000.000 millions from Indian Oil Corporation and Engineers India Ltd for laying of pipelines and composite works for South Jetty Pipeline Project in Paradip. The scheduled duration for completion of this project is 15 months.

 

According to Fernas, the scope of work for both the projects includes project management, detailed design and engineering, procurement including supply, construction, commissioning, and performance testing.

 

Fernas recently executed the Dahej-Vijaipur gas pipeline for GAIL (India) Ltd, estimated at Rs. 4500.000 millions. The company would be bidding for road projects worth Rs 10000.000 – 20000.000 millions in the coming months and is evaluating options to construct gas-based power plant in Jhabua, Madhya Pradesh.

 

Fernas Contruction inks pact with Gujarat

 

Gandhinagar, Jan 12:  

 

Fernas Construction India Private Limited has signed an MoU with the Gujarat Government pledging an investment of $1 billion (Rs 53000.000 millions) over a period of four years for setting up a new LNG terminal at Okha in Jamnagar district.

 

According to a release, Fernas India, a 100 per cent owned subsidiary of Turkey’s Fernas Inc., will set up a joint venture with the Mumbai-based Swarn Energy for floating the LNG storage and re-gasification unit.

 

Fernas and Swarna have signed the MoU as joint venture partners during the Vibrant Gujarat Global Summit.

 

The MoU was signed by Engin Nasiroglu, Vice - Chairman, Fernas Construction, in the presence of Gujarat Chief Minister Narendra Modi and Pankaj Kumar, Vice - Chairman and CEO, Gujarat Maritime Board.

 


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.53.57

UK Pound

1

Rs.84.25

Euro

1

Rs.71.79

 

 

INFORMATION DETAILS

 

Report Prepared by :

NID

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

43

 

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.