MIRA INFORM REPORT

 

 

 

 

Report Date :

18.10.2013

 

IDENTIFICATION DETAILS

 

Name :

ITD-ITD CEM JOINT VENTURE

 

 

Registered Office :

National Plastic Building, A-Subhash Road, Paranjape B Scheme, Vile Parle (East), Mumbai – 400 057, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.12.2012 (Summarized Figures)

 

 

Year of Establishment :

2006

 

 

Capital Investment / Paid-up Capital :

Not Divulged

 

 

Legal Form :

Joint Venture Company

 

 

Line of Business :

Construction Activity

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (53)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an unincorporated joint venture between Thailand based “Italian-Thai Development Public Company Limited” (ITD Thai, Thailand’s largest contractor) and India based “ITD Cementation India Limited” (ITD Cem).

 

ITD Thai holds 69.57% of ITD Cem’s equity; hence in effect ITD Thai owns ~85% of the joint venture. ITD Cem enters into project specific joint ventures with ITD Thai for projects where experience of the latter is required to meet technical qualification criteria.

 

The joint venture company has seen an increase in its revenue during 2012, which are shared by the two venturing companies as per the ownership proportion.

 

The ratings also take into consideration the corporate guarantee provided by its reputed holding company in order to get loans from corporate entities as well as Government Institutions and some huge and reputed infrastructure projects under implementation during the year under review.

 

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

 

In view of technical managerial and financial support provided by its group company, the subject can be considered normal 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

ICRA

Rating

Long Term: BBB+ (Structured Obligation)

Rating Explanation

Moderate degree of safety and moderate credit risk. (Structured obligation)

Date

March, 2012

 

 

Rating Agency Name

ICRA

Rating

Short Term: A2+ (Structured Obligation)

Rating Explanation

Strong degree of safety and low credit risk.

Date

March, 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 PARTED BY (PARTIAL DETAILS)

 

Name :

Mr. Protyush Chakraborty

Designation :

Deputy General Manager

Contact No.:

91-9163363439

Date :

13.08.2013

 

 

LOCATIONS

 

Registered Office :

National Plastic Building, A-Subhash Road, Paranjape B Scheme, Vile Parle (East), Mumbai – 400 057, Maharashtra, India

Tel. No.:

91-22-66931600

Mobile No.:

91-9163363439 (Mr. Protyush Chakraborty)

Fax No.:

91-22-66931627/ 28

E-Mail :

bhagyesh.joshi@itdcem.co.in

protyush.chakraborty@itdcem.co.in

 

 

MANAGEMENT

 

Name :

Mr. Adun Saravan

Designation :

Member (ITD Cem)

 

 

Name :

Mr. Tawatchai Suthiprabha

Designation :

Member (ITD)

 

 

Name :

Mr. Vitavas Kunapongsiri

Designation :

Member (ITD)

 

 

KEY EXECUTIVES

 

Name :

Mr. Protyush Chakraborty

Designation :

Deputy General Manager

 

 

Name :

Mr. Bhagyesh Joshi

Designation :

Senior Manager – Finance

 

 

BUSINESS DETAILS

 

Line of Business :

Construction Activity

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the Management

 

 

Bankers :

·         Export Import Bank of India

·         Vijaya Bank

 

 

Facilities :

a) For approval and confirmation of the Corporate Guarantee upto a limit of Rs.1320.000 millions given by the Board of Directors as security for the loan granted by Export Import Bank of India (“Exim Bank”) to ITD-ITD Cem Joint Venture for Kolkata Metro Rail Corporation Limited Project as aggregate of guarantees so far provided by the Company to all the bodies corporate alongwith the above corporate guarantee may exceed the limits specified in the said Section 372A(1) and

 

b) For and confirmation of the Corporate Guarantee upto a limit of Rs.260.000 millions given by the Board of Directors as security for the loan granted by Vijaya Bank to ITD-ITD Cem Joint Venture for Jaipur Metro Project as aggregate of guarantee so far provided by the Company to all the bodies corporate alongwith the corporate guarantee upto a limit of Rs.1320.000 millions given by the Company to Exim Bank and the aforesaid corporate guarantee to be given to Vijaya Bank may exceed the limits specified in the said Section 372A(1).

 

 

 

Banking Relations :

--

 

 

Auditors :

Not Divulged

 

 

Joint Venture :

·         Italian-Thai Development Public Company Limited

·         ITD Cementation India Limited

 

 

CAPITAL STRUCTURE

 

NOT DIVULGED

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

SUMMARIZED FIGURES

 

Particulars

 

 

31.12.2012

31.12.2011

Total Assets (Approximately)

 

3846.907

3564.775

 

 

 

 

Total Revenues (Approximately)

 

4660.293

3667.210

 

 

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

No

8) No. of employees

No

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last two year

Yes

12) Profitability for last three years

No

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

No

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

No

29) Last accounts filed at ROC

No

30) Major Shareholders, if available

No

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

No

32) PAN of Proprietor/Partner/Director, if available

No

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

Yes

 


WEBSITE DETAILS:

 

PROFILE:

 

Subject has been awarded the contract of “Supply, Erection, Testing and Commissioning of Track Work and Installation of Third Rail System for Bangalore Metro Rail Project. Work is to be completed in 37 months.

 

Subject has been awarded the contract of laying of Tallah-Palta dedicated transmission main by Kolkata Municipal Corporation. Work is to be completed in 30 months.

 

Subject has been awarded Kolkata airport modernization project. The new integrated terminal will be built to handle 20 million passengers a year, which will be four times the current capacity and which is expected to take care of the forecast load till 2015-16. After the modernization, both runways will be long enough to accept the world’s biggest aircraft, the A380. The plan has been designed by RMJM of the UK.

 

Rehabilitation and Upgradation of Km.15.00  to Km.50.00 of NH-25 to 4- lane configuration including Ghat Section and Sindh Bridge in the State of Madhya Pradesh - Package MP2 (Value of the contract is Rs.1573 Million). This is a joint venture between ITD and ITD Cem.

 

Construction of 4 lane Bypass from km.381 to km 406 of NH76 at Kota on East West Corridor in the State of Rajasthan - Package RJ 4 (Value of the contract is Rs.2055 Million). This is a joint venture between ITD and ITD Cem.

 

BC-21 Part Design and Construction of via duct and structural work of five elevated stations on Qutub Minar-Gurgoan corridor of Delhi MRTS Project (Value or contract is Rs. 1886 Million). This is a joint venture between ITD and ITD Cem.

 

BC-24 Design and Construction of over five kilometres of underground metro construction is to be carried out with advanced tunnel boring machines and includes the Khan Market, Jawaharlal Nehru stadium, Jangpura stations and ancillary works on the Central Secretariat – Badarpur Corridor of Delhi MRTS (Value of Contract Rs.8930.000 Millions). This is a joint venture between ITD and ITD Cem.

 

PRESS RELEASES/ NEWS:

 

ITD CEMENTATION GETS RS.5460.000 MILLIONS ORDER FROM DELHI METRO

 

New Delhi, January 2, 2013:  

ITD Cementation India today said it has got a Rs.5460.000 millions order, along with its Thailand-based parent firm, from Delhi Metro Rail Corporation (DMRC) for the construction of a 9,035 metre long elevated metro track.

 

The order would be executed through a joint venture in which Italian-Thai Development Public Company, Thailand, will have 51 per cent stake and the remaining with ITD Cementation India, company’s Chief Financial Officer, S Ramnath said.

 

“The project includes construction of a 9,035 metres long elevated metro track along with eight elevated stations,” he said, adding the scope of the work includes architectural finishing, water supply, sanitary installation and drainage works.

 

“The project is scheduled for completion in 30 months,” Ramnath said.

 

The joint venture has recently completed a Rs.1890.000 millions contract for DMRC for the construction of structural work of five stations on the Qutub Minar — Gurgaon corridor of the Delhi MRTS project.

 

“The JV has also completed a Rs.8930.000 millions contract for DMRC for the construction of a 8,326 metre long twin bored underground metro tunnel,” he said.

 

ITD CEM JV COMPLETES KOLKATA AIRPORT PROJECT

 

January 20, 2013

A joint venture of ITD Cementation India has completed its Rs.18000.000 millions project at the new state-of-the-art integrated passenger terminal at Netaji Subhas Chandra Bose International (NSCBI) Airport here, which is slated to be inaugurated by President Pranab Mukherjee on Sunday.  The project was executed on an EPC (engineering, procurement and construction) basis by a special purpose vehicle formed between ITD Cementation India (ITD Cem) and its parent Italian-Thai Development Public Co. Limited, Thailand (ITD).  The integrated passenger terminal has a capacity now to handle 20 million passengers annually against the existing capacity of 7.46 million passengers.

 

The new airport terminal will have a covered area of 2.33 lakh sq. metres and a capacity to handle Airbus 380, while earlier it could handle aircraft not larger than a Boeing 747. 

 

An additional 11 parking bays have been added to the existing 12.

 

Premchai Karnasuta, Chairman, ITD Cem, said, “We have incorporated high tech specialised airport systems and the integrated passenger terminal now has world-class facilities for the convenience and comfort of passengers using the Kolkata airport.”

 

ITD-ITD CEMENTATION MAY PULL OUT OF KOLKATA METRO PROJECT

 

Kolkata, June 11:  

The ITD-ITD Cementation joint venture may pull out of the East-West Metro Corridor project for want of a final route plan.

 

The 15-km metro project here, connecting the IT hub at Salt Lake with Howrah, is running nearly two years behind schedule. ITD is the second contractor to be affected by the slow project implementation.

 

The infrastructure company received a contract for tunnelling work on a 5-km stretch at a cost of nearly Rs.9100.000 millions. According to sources, it could not begin work on a large stretch for more than a year. The company will reportedly exit from the project after completing a 2-km stretch by next month.

 

According to authorities, the route map of the Rs.48750.000 millions project is not finalised as the West Bengal Government is not accepting a proposal to relocate 250 shops and a few apartments on a half-a-km stretch in central Kolkata.

 

The State Government has stuck to its decision even after the Calcutta High Court’s judgment in favour of handing over the land to East-West Metro authorities. The State, instead, asked for realignment of the route, which was struck down by the principal lender, Japan International Cooperation Agency.

 

“How will ITD work if it does not get the site cleared” Besides, there is no final route plan. So, the company has not been able to work on the stretch between Sealdah Crossover and the proposed Central Station for a long time,” H.K. Sharma, Managing Director, Kolkata Metro Rail Corporation (KMRC), told Business Line. KMRC is the executing authority of the project.

 

Chundee Mookhan, Project Manager (Tunnel), ITD-ITD Cementation, was not available for a comment.

 

Earlier, Shapoorji Pallonji-promoted Afcons could not start tunnelling work on the Howrah side of the project for over three years. According to sources, the company demanded compensation of nearly Rs.2500.000 millions from the authorities.

 

Similar problems are also affecting other projects in the city. L&T withdrew equipment and workers from the Dum Dum-Barasat metro project as the State did not cooperate with the Railways to remove encroachments.

 

ITD CEMENTATION BAGS ORDER FOR RS.5460.000 MILLIONS FROM DMRC IN ITS JOINT VENTURE

 

Mumbai, 2nd January, 2013: ITD Cementation India Limited announced that the Joint Venture (JV) with its parent, Italian-Thai Development Public Company Limited, Thailand (ITD, Thailand) has received an order of Rs.5460.000 millions from the Delhi Metro Rail Corporation (DMRC).

 

This project includes construction of a 9,035 m long elevated metro track along with 8 elevated stations and the scope of work includes Architectural Finishing, Water Supply, Sanitary Installation and Drainage Works. The project is scheduled for completion in 30 months.

 

The Joint Venture has recently completed a Rs.1890.000 millions contract for DMRC for the construction of Viaduct and Structural work of five stations on the Qutub Minar - Gurgaon Corridor of the Delhi MRTS project. The JV has also completed a Rs.8930.000 millions contract for DMRC for the construction of a 8,326 m long twin bored underground metro tunnel with advanced tunnel boring machine including three underground stations at Khan Market, Jawaharlal Nehru Stadium and Jangpura station on Central Secretariat - Badarpur Corridor for the Delhi MRTS. This project was completed two months ahead of schedule.

 

The Joint Venture benefits from the experience of the parent, Italian - Thai Development Public Company Limited, in the implementation of MRTS projects.

 

About ITD Cementation India Limited

ITD Cem's presence dates back to 1931 when The Cementation Company Limited, UK started its operations in India and was engaged in providing seepage control and stability related solutions to a few distressed dams in the country. The Company was mainly active in the field of specialised civil, mining and foundation engineering till the eighties and thereafter was a part of various Multinational, Transnational organisations like Trafalgar House - UK, Kvaerner - Norway and Skanska - Sweden. Today, it is a part of Italian- Thai Development Public Company Limited, Thailand.

 

Over a period of time, it has developed expertise in design and construction of large infrastructure projects. The strong international parentage which ITD Cem has continuously enjoyed over eight decades provides a distinct advantage in delivering key technical knowhow that are in line with international companies in this field.

 

In India, it has contributed significantly in the growth of Infrastructure in the country over the last eight decades and continues to provide expertise in the field of Civil Engineering. It has been closely involved in a number of major national-level projects of diverse nature including jetties at Dahej, Shiplift facility at Karwar, 2nd Container Terminal at Chennai, Elevated viaduct , road projects for NHAI and underground tunnels and stations at Delhi Metro. The Company's past experience has been strengthened by the rich and diverse expertise of the parent company, ITD, Thailand one of the leading contracting organisations in South East Asia.

 

 


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 records 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.61.58

UK Pound

1

Rs.98.51

Euro

1

Rs.83.49

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SMN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--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

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

53

 

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.