MIRA INFORM REPORT

 

 

Report Date :

23.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ROYAL PALMS (INDIA) PRIVATE LIMITED

 

 

Registered Office :

Survey No.169, Aarey Milk Colony, Near Unit No.26 Goregaon (East), Mumbai – 400 065, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

06.08.1984

 

 

Com. Reg. No.:

11-033676

 

 

Capital Investment / Paid-up Capital :

Rs.280.000 millions

 

 

CIN No.:

[Company Identification No.]

U92190MH1984PTC033676

 

 

PAN No.:

[Permanent Account No.]

AABCR9424R

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Hotel and Building Industry

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 2539000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record. The management has failed to file its latest financial with the Government Department. From the previous year financials it seems that there appears some dip in the profitability of the company. The company has also recorded huge external borrowings.

 

However, trade relations are reported as fair. Business is active. Payment terms are unknown.

 

The company can be considered for business dealings with great 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 – 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

CRISIL

Rating

Long Term Rating: D

Rating Explanation

This rating are in default or are expected to be in default soon.

Date

February 24, 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.

 

LOCATIONS

 

Registered Office :

Survey No.169, Aarey Milk Colony, Near Unit No.26 Goregaon (East), Mumbai – 400 065, Maharashtra, India

Tel. No.:

91-22-61462000/ 28794000

Fax No.:

91-22-28794251/ 52

E-Mail :

realestate@royalpalmsindia.com

corporateaccounts@royalpalmsindia.com

Website :

http://www.royalpalmsindia.com

 

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Muhamed Amir Nensey

Designation :

Director

Address :

Survey No.169, Aarey Milk Colony, Near Unit No.26, Goregaon (East), Mumbai – 400 065, Maharashtra, India

Date of Birth/Age :

17.04.1973

Date of Appointment :

06.01.1994

DIN No.:

01152280

 

 

Name :

Mr. Amir Ahmedally Nensey

Designation :

Director

Address :

Bunglow No.25, Survey No.169, Unit 26, Aarey Colony, Goregaon (East), Mumbai – 400 065, Maharashtra, India

Date of Birth/Age :

11.05.1950

Date of Appointment :

06.08.1984

DIN No.:

01852783

 

 

Name :

Mr. Dilawar Amir Nensey

Designation :

Director

Address :

Survey No.169, Aarey Milk Colony, Near Unit No.26, Goregaon (East), Mumbai – 400 065, Maharashtra, India

Date of Birth/Age :

13.07.1975

Date of Appointment :

06.01.1994

DIN No.:

01871899

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2011

 

Names of Shareholders

 

No. of Shares

 

Amir Ahmedally Nensey

 

840000

Rahat Amir Nensey

 

840000

Dilawar Amir Nensey

 

559400

Muhamed Amir Nensey

 

560000

Royal Palms Construction Private Limited, India

 

600

Total

 

2800000

 

As on 30.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

0.02

Directors or relatives of directors

 

99.98

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Hotel and Building Industry

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :
  • State Bank of India, Industrial Finance Branch, 'The Arcade', 2nd Floor, World Trade Centre, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
  • Bank of India
  • HDFC Bank Limited

 

 

Facilities :

Secured Loans

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Rupee term loans banks secured

(A) 982.011

1578.617

Rupee term loans financial institutions secured

(B) 184.000

200.000

Total

1166.011

1778.617

 

(A) Term Loans From Banks State Bank of India - I 222.310 millions (Secured against Registered Mortgage of land and Building and Hypothecation of receivables of Palms Hotel Towers and Villas formerly known as Hotel Park Plaza.) State Bank of India - II - (Secured against Registered Mortgage of land, Hotel Building and other Fixed Assets of Palms Hotel Towers and Villas formerly known as Hotel Palms Hotel.) State Bank of India - III 87.240 millions (Secured against Registered Mortgage of land and Building, Plant and Machinery and Other Fixed Assets of Imperial Palace Hotel) State Bank of India - IV 486,801,808 (Secured against 1st charge on the Car Parks and Plant and Machinery etc of Imperial Palace Hotel) Bank of India 185.659 millions (Secured against charge on pari passu basis on Land, Plant/Machineries and other Fixed Assets of Imperial Palace Hotel.)

(B) (Secured against 1st charge on pari passu basis with participating Banks (SBI and BOI) on all Fixed assets of Imperial Palace Hotel.)

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Devendra Goyal and Associates

Chartered Accountants

Address :

3, National House, 1st Floor, 27, Raghunath Dadaji Street, Mumbai, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AACFD0281E

 

 

Related Parties :

  • Alfa Properties and Investment Private Limited
  • Palms Golfing Private Limited
  • Royal Palms Constructions Private Limited
  • Royal Palms Property Private Limited
  • Samdarshi Agrotech Private Limited
  • Cega Properties Private limited
  • Samaysar Investment and Developers private Limited
  • Nensey Securities Private Limited
  • Himgiri Estate and Developers Private Limited
  • Royal palms Lifecare private Limited
  • Culaba Estate and Investments Private Limited
  • Eminent Estates Private Limited
  • Top Most Agrotech Private Limited
  • Yugal Estate and Developers Private Limited
  • Parampra Agrotech Private Limited
  • Hevan Agrotech Private Limited
  • Richman Realities Private Limited
  • Blue Sky Agrotech Private limited
  • Western Homemaker City Limited
  • Royal Palms Resorts Private Limited
  • Palms Hotels and Resorts Private Limited

 

 

CAPITAL STRUCTURE

 

As on 30.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

3000000

Equity Shares

Rs.100/- each

Rs.300.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2800000

Equity Shares

Rs.100/- each

Rs.280.000 millions

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

280.000

280.000

280.000

2] Share Application Money

0.000

0.000

0.313

3] Reserves & Surplus

354.867

313.386

182.472

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

634.867

593.386

462.785

LOAN FUNDS

 

 

 

1] Secured Loans

1166.011

1778.617

1999.486

2] Unsecured Loans

42.755

30.708

393.468

TOTAL BORROWING

1208.766

1809.325

2392.954

DEFERRED TAX LIABILITIES

49.359

58.655

22.182

 

 

 

 

TOTAL

1892.992

2461.366

2877.921

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3996.959

3873.331

3811.257

Capital work-in-progress

416.397

1019.399

1137.398

 

 

 

 

INVESTMENT

11.429

11.429

11.128

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
156.539

113.982

32.409

 

Sundry Debtors
806.052

578.017

296.034

 

Cash & Bank Balances
60.951

47.487

99.225

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
638.365

466.986

247.756

Total Current Assets
1661.907

1206.472

675.424

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
81.550

92.339

32.062

 

Other Current Liabilities
4090.745

3507.276

2705.808

 

Provisions
21.405

49.650

27.966

Total Current Liabilities
4193.700

3649.265

2765.836

Net Current Assets
(2531.793)

(2442.793)

(2090.412)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

8.550

 

 

 

 

TOTAL

1892.992

2461.366

2877.921

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income From Projects/ Hotel

1183.968

1226.120

729.056

 

 

Membership Income

 

22.366

22.366

 

 

Other Income

 

11.485

3.789

 

 

TOTAL                                     (A)

1183.968

1259.971

755.211

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption of provisions, stores, wine and smokes

759.575

48.548

32.379

 

 

Operating & Other Expenses

 

304.131

254.050

 

 

Administrative Expenses

 

127.744

115.967

 

 

Marketing Expenses

 

164.464

76.139

 

 

Deferred Revenue Expenses

 

8.550

8.550

 

 

TOTAL                                     (B)

759.575

653.437

487.085

 

 

 

 

 

Less

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

424.393

606.534

268.126

 

 

 

 

 

Less

INTEREST & FINANCIAL CHARGES                 (D)

206.100

225.124

123.012

 

 

 

 

 

 

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

218.293

381.410

145.114

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

125.156

119.484

84.142

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

93.137

261.926

60.972

 

 

 

 

 

Less

TAX                                                                  (H)

19.006

98.361

28.220

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

74.131

163.565

32.752

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

288.386

157.471

124.719

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

NA

28.000

0.000

 

 

Tax on Proposed Dividend

NA

4.650

0.000

 

BALANCE CARRIED TO THE B/S

NA

288.386

157.471

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Flat Booking Money

0.000

18.408

4.877

 

 

Hotel Revenue Receipts

18.932

19.940

35.549

 

TOTAL EARNINGS

18.932

38.348

40.426

 

 

 

 

 

 

Earnings Per Share (Rs.)

26.48

58.42

11.70

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
6.26

12.98

4.34

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
NA

21.36

8.36

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.65

5.16

1.36

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15

0.44

0.13

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
1.90

3.05

5.17

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.40

0.33

0.24

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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 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

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

 

 


Unsecured Loans

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Loans directors unsecured

36.285

23.423

Other debt unsecured

6.470

7.285

Total

42.755

30.708

 

OPERATIONAL PERFORMANCE

 

During the year company’s gross revenue decreased to Rs.1183.968 millions as compared to Rs.1259.971 millions in previous financial year, this was due to recession in Hotel and Building Industry, the net profit after tax of the company also decreased to Rs.74.131 millions as against net profit of Rs.163.565 millions in previous financial year.

 

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.54.34

UK Pound

1

Rs.82.55

Euro

1

Rs.70.10

 

 

INFORMATION DETAILS

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

2

--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

 

26

 

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.