MIRA INFORM REPORT

 

 

Report Date :

26.06.2013

 

IDENTIFICATION DETAILS

 

Name :

PIEM HOTELS LIMITED 

 

 

Registered Office :

Vivanta by Taj - President, 90, Cuffe Parade, Mumbai-400005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

13.03.1968

 

 

Com. Reg. No.:

11-013960

 

 

Capital Investment / Paid-up Capital :

Rs. 38.100 millions

 

 

CIN No.:

[Company Identification No.]

U55101MH1968PLC013960

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Hospitality Services.

 

 

No. of Employees :

Information declined by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (69)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 17000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of the “PIEM GROUP”.

 

It is promoted by the “TATA GROUP” and the Nagpal family of Mumbai.

 

The company’s financial position reflect very low debt balance sheet and a strong networth.

 

The rating also take into consideration the benefit that the group deserves from its association with the Taj brand of Hotels.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good 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.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Short term rating : A1+

Rating Explanation

Having very strong degree of safety regarding timely payment of financial obligation. It carry lowest credit risk.

Date

December, 2012

 

 

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 (Tel. No.: 91-22-66650931)

 

 

LOCATIONS

 

Registered Office :

Vivanta by Taj - President, 90, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Tel. No.:

91-22-66650931

Fax No.:

91-22-66650368

E-Mail :

roxzana.mistry@tajhotels.com

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. R. K. Krishna Kumar

Designation :

Chairman

 

 

Name :

Mr. Raymond N. Bickson

Designation :

Managing Director (With effect from 01.10.2011)

 

 

Name :

Mr. Rajesh R. Nagpal

Designation :

Joint Managing Director (Designated With effect from 01.10.2011)

 

 

Name :

Mr. Sudhir L. Nagpal

Designation :

Joint Managing Director (Designated  With effect from 01.10.2011)

 

 

Name :

Mr. L. M. Nagpal

Designation :

Executive Director (With effect from 01.10.2011)

 

 

Name :

Mr. R. M. Nagpal

Designation :

Executive Director (With effect from 01.10.2011)

 

 

Name :

Mr. Anil P. Goel

Designation :

Director

 

 

Name :

Mr. Arun Gandhi

Designation :

Director

 

 

Name :

Mr. Sanjay Ubale

Designation :

Director

 

 

Name :

Ms. N. M. Nagpal

Designation :

Director

 

 

Name :

Ms. Deepa Misra Harris

Designation :

Appointed Director (With effect from 30.03.2012)

 

 

Name :

Mr. Sunil L. Nagpal

Designation :

Director (Resigned With effect from 25.05.2011)

 

 

Name :

Mr. Ajoy K. Misra

Designation :

Director (Resigned With effect from 09.01.2012)

 

 

KEY EXECUTIVES

 

Name :

Ms. Farzana Sam Billimoria

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Not Available

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Hospitality Services.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management

 

 

Bankers :

·         HDFC Bank

Standard Chartered Bank

Bank of Baroda

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Price Waterhouse

Chartered Accountants

 

 

Holding Company :

The Indian Hotels Company Limited (IHCL) *

 

 

Subsidiay Companies :

·         Northern India Hotels Limited

Piem International (H.K.) Limited (PIHK)

BAHC 5 Pte Ltd (Subsidiary of PIHK)

Premium Aircraft Leasing Corporation Limited (Subsidiary of PIHK)

 

 

Associates Companies :

·         Taj Enterprises Limited **

Taj Trade and Transport Company Limited **

Inditravel Limited **

Taida Trading and Industries Limited

St. James Court Hotels Limited (Associate of PIHK) **

 

 

Fellow Subsidiaries :

Domestic:

·         TIFCO Holdings Limited *

KTC Hotels Limited

Taj SATS Air Catering Limited

Roots Corporation Limited

Residency Food and Beverages Limited

United Hotels Limited

Ideal Ice and Cold Storage Company Limited

Taj Rhein Shoes Company Limited

Benares Hotels Limited

 

International:

·         Taj International Hotels (H.K) Limited

Cheiftain Corporation NV

IHOCO BV

Taj International Hotels Limited

IHMS Inc.

IHMS LLC – Boston

IHMS LLC - San Francisco

IHMS LLC – USA

Samsara Properties Limited

IHMS (Australia) Pty Limited

Apex Hotel Management Services Pte Limited

 

 

Firms/Companies in which Key Management personnel are Interested :

·         Pokhardas Menghraj

Pokhardas Menghraj and Sons

MPOWER Information Systems Private Limited

 

Note:

 

* During the year the Equity Shareholding of IHCL and its subsidiary TIFCO increased from 46.20% to 51.57%. Consequently, the Company has with effect from May 25, 2011 became a subsidiary of IHCL.

 

** These Companies are also fellow subsidiaries.

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4750000

Equity Shares

Rs.10/- each

Rs. 47.500 Millions

18000

9.5% First Redeemable Cumulative Preference Shares

Rs.100/- each

Rs. 1.800 Millions

7000

3% Second Redeemable Cumulative Preference Shares

Rs.100/- each

Rs. 0.700 Million

 

 

 

 

 

Total

 

Rs. 500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3810000

Equity Shares

Rs.10/- each

Rs. 38.100 Millions

 

 

 

 

 

Note:

 

(a)     Reconciliation of Number of Equity shares :

 

Particulars

31.03.2012

No. of

shares

Rs. In millions

Shares outstanding at the beginning of the year

3,810,000

38.100

Add : Shares Issued during the year

--

--

Shares outstanding at the end of the year

3,810,000

38.100

 

(b)     Equity Shares: The Company has one class of Equity Shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive any of the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

 

(c)     Shares held by Holding Company and Subsidiary of Holding Company

 

Particulars

31.03.2012

No. of

shares

% of Holding

Holding Company

 

 

The Indian Hotels Company Limited (IHCL)

986,760

25.90

Subsidiary of Holding Company (Wholly owned)

 

 

TIFCO Holdings Limited (TIFCO)

978,010

25.67

Total

1,964,770

51.57

 

During the year the equity shareholding of IHCL and its wholly owned subsidiary TIFCO increased from 46.20% to 51.57%. Consequently, the Company has with effect from May 25, 2011 became a subsidiary of IHCL.

 

(d)     Details of shares held by other shareholders holding more than 5% of the aggregate shares in the Company

 

Name of Shareholder

31.03.2012

No. of

shares

% of Holding

Mr. Rajesh R. Nagpal

499,429

13.11

Mr. Sunil Nagpal

-

-

Mr. Sudhir L. Nagpal

337,566

8.86

New Vernon Private Limited

259,000

6.80

Mr. Rajkumar M. Nagpal

246,088

6.46

Mrs. Subhadra R. Nagpal

199,418

5.23


 

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

 

38.100

38.100

(b) Reserves & Surplus

 

4225.947

3814.341

(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)

 

4264.047

3852.441

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

0.000

0.000

(b) Deferred tax liabilities (Net)

 

135.290

123.090

(c) Other long term liabilities

 

3.926

5.774

(d) long-term provisions

 

36.889

32.323

Total Non-current Liabilities (3)

 

176.105

161.187

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

0.000

0.000

(b) Trade payables

 

165.409

155.048

(c) Other current liabilities

 

335.314

184.399

(d) Short-term provisions

 

226.238

204.296

Total Current Liabilities (4)

 

726.961

543.743

 

 

 

 

TOTAL

 

5167.113

4557.371

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

2512.818

2522.864

(ii) Intangible Assets

 

6.410

8.454

(iii) Capital work-in-progress

 

217.547

110.078

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

972.622

980.559

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

41.020

50.226

(e) Other Non-current assets

 

0.922

27.954

Total Non-Current Assets

 

3751.339

3700.135

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

557.090

39.512

(b) Inventories

 

59.615

55.608

(c) Trade receivables

 

99.699

100.761

(d) Cash and cash equivalents

 

109.852

357.256

(e) Short-term loans and advances

 

586.315

299.853

(f) Other current assets

 

3.203

4.246

Total Current Assets

 

1415.774

857.236

 

 

 

 

TOTAL

 

5167.113

4557.371

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

 

2841.322

2728.896

 

 

Other Income

 

125.147

73.229

 

 

TOTAL                                     (A)

 

2966.469

2802.125

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Food and Beverages Consumed

 

311.134

269.323

 

 

Employee Benefits Expense

 

615.803

553.372

 

 

Other Operating and General Expenditure

 

1163.073

1095.403

 

 

Exceptional Items

 

(172.790)

0.000

 

 

TOTAL                                     (B)

 

1917.220

1918.098

 

 

 

 

 

 

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

 

1049.249

884.027

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

0.000

1.013

 

 

 

 

 

 

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

 

1049.249

883.014

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

220.777

215.134

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)           

 

828.472

667.880

 

 

 

 

 

Less

TAX                                                                  (H)

 

217.603

210.403

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                 (I)

 

610.869

457.477

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

 

2472.576

2238.022

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

 

0.000

152.400

 

 

Tax on Interim Dividend

 

0.000

24.723

 

 

Proposed Dividend

 

171.450

0.000

 

 

Tax on Proposed Dividend

 

27.813

0.000

 

 

General Reserve

 

62.500

45.800

 

BALANCE CARRIED TO THE B/S

 

2821.682

2472.576

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Earnings from Rooms, Restaurants, Banquets and Other Operating Income excluding pure encashment

 

881.413

809.875

 

TOTAL EARNINGS

 

881.413

809.875

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Food and Beverages

 

36.724

28.022

 

 

Components and Spare parts

 

4.457

3.000

 

 

Capital Goods (including professional fees)

 

27.197

48.774

 

TOTAL IMPORTS

 

68.378

79.796

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

160.33

120.07

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2012

31.03.2011

PAT / Total Income

(%)

 

20.59

16.33

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

29.16

24.47

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

 

20.83

19.27

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

 

0.19

0.17

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

 

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

 

1.95

1.58

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

 

Particulars

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

 

 

 

Trade Payables

165.409

155.048

 

 

 

 

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

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last two years

Yes

12]

Profitability for last two 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

Yes

30]

Major Shareholders, if available

Yes

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

Yes

 

 

OPERATING RESULTS AND PERFORMANCE

 

The Company earned a Total Income of Rs. 2966.469 millions, which is 5.86% more than the previous year’s Total Income of Rs. 2802.125 millions. Profit for the year before exceptional items decreased by 1.83% to Rs. 655.682 millions, as compared to Rs. 667.880 millions in the previous year. The Indian hotel industry is still in the early stages of recovery and is yet to make the transition from an occupancy-led cycle to one supported by rising Average Room Realization (ARRs). Sustained demand assisted the return of some pricing power during the current year. However, supply pressures in many cities have negated the impact of the same and also prevented any significant increases in room tariffs. The longer-term prospects of the industry however remain robust, given that it can absorb significant capacity additions in a scenario of robust economic growth. However, the industry’s room inventory remains low, as compared to global standards.

 

The Company continued its efforts to upgrade and modernize facilities in its hotels. Renovations of Vivanta by Taj - President, Mumbai, Vivanta by Taj - Blue Diamond, Pune, were carried out during the year. During the financial year 2012-13, it is proposed to carry out further renovations at Vivanta by Taj - President, Mumbai, Vivanta by Taj - M. G. Road, Bengaluru, Vivanta by Taj – Blue Diamond, Pune and The Gateway Hotel - Fatehabad Road, Agra.

 

 

CONTINGENT LIABILITIES:

 

(Rs. in millions)

PARTICULARS

31.03.2012

31.03.2011

(a) Claims against the Company not acknowledged as debts

5.137

4.336

(b) Disputed Tax Matters:

 

 

- Income-Tax

5.740

16.080

- Luxury tax

1.397

0.000

- Service tax

85.625

55.609

- Value added tax (VAT)

0.082

0.082

- Sales tax

77.330

81.337

- Property Tax

11.601

21.937

- Water Tax

13.130

23.301

- Others

5.319

4.373

 

 

FIXED ASSETS

 

v                  Tangible Assets

Freehold Land

Leasehold Land

Buildings

Plant, Machinery and Data Processing Equipments

Furniture and Fixtures

Office Equipment

Vehicles

v                 Intangible Assets

·                    Goodwill

·         Customer Reservation System

·         Website Development Cost

·                     Computer Software


 

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.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Report Prepared by :

MRI

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--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

 

69

 

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

 

 

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.