MIRA INFORM REPORT
|
Report Date : |
02.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
CENTRAL U.P. GAS LIMITED |
|
|
|
|
Registered
Office : |
A-1/4 Lakhanpur, UP SID Complex, Kanpur - 208024,
Uttar Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
25.02.2005 |
|
|
|
|
Com. Reg. No.: |
20-029538 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.600.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U40200UP2005PLC029538 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
KNPC01417D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCC5883A |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturing of
Compressed Natural Gas (CNG) and sale of piped Natural gas (PNG) and
Compressed Natural Gas (CNG). |
|
|
|
|
No. of Employees
: |
43 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
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 4300000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a joint venture between GAIL and BPCL and was formed under
the directives of the Ministry of Petroleum and Natural Gas to roll out the
city gas distribution project in Kanpur and Bareilly. It is a well-established
company having fine track. The company possesses a healthy financials profile marked by debt free
capital structure and adequate netwoth base. Management has reported an increase in its volume along with a decent
profit margin during 2013. The ratings also take into consideration the risks related to changes
in government regulations regarding the natural gas industry. However, trade relations are trustworthy. Business is active. Payment
terms are reported as regular and as per commitments. In view of managerial and technical support it receives from its
promoters the subject can be considered good for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the public
to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000
denominations, pushing the deadline to January 1, 2015. A day before dates for
the Lok Sabha polls were announced, the government decided to hike interest
rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The
new rates will be effective April, 1. The Supreme Court will resume hearing on
March, 11 Nokia’s appeal against a ruling over transferring ownership of its
local mobile phones plant which is the subject of a tax dispute to Microsoft
Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A2+ |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
28.03.2014 |
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 DENIED
Management Non-Cooperative (Tel No.: 91-512-2885001)
LOCATIONS
|
Registered Office : |
A-1/4 Lakhanpur, UP SID Complex, Kanpur - 208024, Uttar
Pradesh, India |
|
Tel. No.: |
91-512-2583987 / 3291295 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
7th Floor, A1/4, UP SIDC Complex, Lakhanpur, Kanpur -
208024, Uttar Pradesh, India |
|
Tel. No.: |
91-512-2585001 / 2582468 |
|
Fax No.: |
91-512-2582453 |
|
|
|
|
Bareilly Office : |
CNG Station, Satellite Bus Depot, Pilibhit Road, Bareilly
– 243006, Uttar Pradesh, India |
|
Tel. No.: |
91-581-2524280 / 6499071 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. R. K. Sharma |
|
Designation : |
Chairman (upto
28.01.2013) |
|
|
|
|
Name : |
Mr. S.P. Gathoo |
|
Designation : |
Chairman (w.e.f.
01.02.2013) |
|
|
|
|
Name : |
Mr. P.L. Ahuja |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. A.K. Dutta |
|
Designation : |
Director (Commercial) |
|
|
|
|
Name : |
Dr. V.V. Desai |
|
Designation : |
Director (upto 21.06.2013) |
|
|
|
|
Name : |
Mr. S.G. Shyam Sundar |
|
Designation : |
Director (upto 21.06.2013) |
|
|
|
|
Name : |
Mr. Krishna Kumar G |
|
Designation : |
Director (Upto 21.06.2013) |
|
|
|
|
Name : |
Mr. R.K. Sharma |
|
Designation : |
Director |
|
Qualification : |
profession of Finance & Accounts (ONGC & GAIL) |
|
|
|
|
Name : |
Mr. Rajesh Agarwal |
|
Designation : |
Director (w.e.f. 21.06.2013) |
|
Qualification : |
Chartered Accountant and Company Secretary |
KEY EXECUTIVES
|
Name : |
Ms. Kalpana Dubey |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
As on 31.03.2013
|
Names of Shareholders |
No. of Shares |
% of Holding |
|
Bharat Petroleum Corporation Limited, India |
15000000 |
25.00% |
|
Gail (India) Limited, India |
15000000 |
25.00% |
|
Asian Development Bank |
12000000 |
20.00% |
|
Indian Development Fund, India |
9000000 |
15.00% |
|
Il and FS Trust Company Limited |
5000000 |
8.33% |
|
Pan Asia Infrastructure Assets Management Company Private Limited |
4000000 |
6.67% |
|
Total |
60000000 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Compressed Natural Gas (CNG) and sale of piped Natural gas (PNG) and
Compressed Natural Gas (CNG). |
GENERAL INFORMATION
|
No. of Employees : |
43 (Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sell Chartered Accountants |
|
Address : |
7th floor, Building 10, Tower B, DLF Cyber City Complex,
DLF City, Phase II Gurgaon – 112002, Haryana, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
R.K. Bansal and Company Chartered Accountants |
|
Address : |
|
|
|
|
|
Joint Venture : |
Bharat Petroleum Corporation Limited, India Gail (India) Limited, India |
|
|
|
|
Associated Companies : |
GAIL Gas Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
600.000 |
600.000 |
|
(b) Reserves & Surplus |
|
478.638 |
356.589 |
|
(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) |
|
1,078.638 |
956.589 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
59.753 |
49.714 |
|
(c) Other long term
liabilities |
|
43.880 |
25.940 |
|
(d) long-term
provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
103.633 |
75.654 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
0.000 |
0.000 |
|
(b) Trade
payables |
|
122.464 |
85.645 |
|
(c) Other
current liabilities |
|
15.452 |
15.150 |
|
(d) Short-term
provisions |
|
88.325 |
87.736 |
|
Total Current
Liabilities (4) |
|
226.241 |
188.531 |
|
|
|
|
|
|
TOTAL |
|
1,408.512 |
1,220.774 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
846.298 |
793.095 |
|
(ii)
Intangible Assets |
|
1.344 |
1.343 |
|
(iii)
Capital work-in-progress |
|
304.296 |
104.320 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
19.442 |
11.216 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current
Assets |
|
1,171.380 |
909.974 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
27.076 |
19.247 |
|
(c) Trade
receivables |
|
57.730 |
41.534 |
|
(d) Cash
and cash equivalents |
|
135.405 |
233.927 |
|
(e) Short-term
loans and advances |
|
12.624 |
7.874 |
|
(f) Other
current assets |
|
4.297 |
8.218 |
|
Total
Current Assets |
|
237.132 |
310.800 |
|
|
|
|
|
|
TOTAL |
|
1,408.512 |
1,220.774 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
|
1,467.425 |
1,134.028 |
|
|
|
|
Other Income |
|
12.754 |
16.123 |
|
|
|
|
TOTAL (A) |
|
1,480.179 |
1,150.151 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Purchase |
|
926.326 |
643.397 |
|
|
|
|
Changes in Inventories of finished goods, work-in-progress and
stock-in-trade |
|
(0.043) |
(0.556) |
|
|
|
|
Employee Benefits Expenses |
|
43.235 |
37.048 |
|
|
|
|
Other Expenses |
|
119.280 |
95.716 |
|
|
|
|
TOTAL (B) |
|
1,088.798 |
775.605 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
391.381 |
374.546 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
|
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
|
391.381 |
374.546 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
|
76.246 |
61.683 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
|
315.135 |
312.863 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
|
105.339 |
101.697 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
|
209.796 |
211.166 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
351.288 |
232.589 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Interim Dividend |
|
54.000 |
0.000 |
|
|
|
|
Proposed Dividend |
|
21.000 |
75.000 |
|
|
|
|
Tax on Dividend |
|
12.746 |
12.167 |
|
|
|
|
Transfer to General Reserve |
|
5.300 |
5.300 |
|
|
|
BALANCE CARRIED
TO THE B/S |
|
468.038 |
351.288 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
|
3.50 |
3.52 |
||
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
|
14.17 |
18.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
21.48 |
27.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
28.54 |
28.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.29 |
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.05 |
1.65 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
|
31.03.2012 |
31.03.2013 |
|
|
|
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
|
600.000 |
600.000 |
|
Reserves & Surplus |
|
356.589 |
478.638 |
|
Net
worth |
|
956.589 |
1078.638 |
|
|
|
|
|
|
long-term borrowings |
|
0.000 |
0.000 |
|
Short term borrowings |
|
0.000 |
0.000 |
|
Total
borrowings |
|
0.000 |
0.000 |
|
Debt/Equity
ratio |
|
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
|
31.03.2012 |
31.03.2013 |
|
|
|
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
|
1,134.028 |
1,467.425 |
|
|
|
|
29.399 |
NET PROFIT MARGIN
|
Net
Profit Margin |
|
31.03.2012 |
31.03.2013 |
|
|
|
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
|
1,134.028 |
1,467.425 |
|
Profit |
|
211.166 |
209.796 |
|
|
|
18.62% |
14.30% |
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 |
Yes |
|
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 |
|
|
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 |
No |
|
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 |
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 February 25, 2005 under the companies Act, 1956. The company is
a joint venture between GAIL India Limited and Bharat petroleum Corporation
Limited. The Company’s business comprises manufacturing of Compressed Natural
Gas (CNG) and sale of piped Natural gas (PNG) and Compressed Natural Gas (CNG).
COMPANY PERFORMANCE:
The company registered a turnover of Rs.1467.400 Millions in a financial
year 2012-13 as against a turnover of Rs.1134.000 Millions in financial year
2011-12 showing an increase of 29.40%.
The PAT for financial year 2012-13 was Rs.209.800 Millions as against
Rs.211.200 Millions for financial year 2011-12 showing a decline of 0.66%.
In spite of PBT being marginally higher by about Rs.2.300 Millions
against previous year but due to education cess increasing from 5% to 10% there
has been a reduction in profits. Further due to steep in jump in input/output
ratio from 57% to 63% the overall profit margin was lower in spite of 13.27%
additional volume growth.
OPERATIONS AND
MARKET PERFORMANCE:
With constant efforts of the dedicated team companies operational
performance reflected significant improvement in spite of spiraling rise in
inflation and the increase in volumes, the operating expenditure per unit of
gas have dropped drastically. Gas losses were controlled and have been brought
to a level below the industry bench mark. To improve market performance loader
vehicle segment was targeted mainly for conversion as well emphasis was put on
private Vehicle conversion to CNG.
FUTURE OUTLOOK:
The CGD sector in India is passing through its toughest stage. The
sector faces adversities like storage of gas (Both Domestic and Long Term
RLNG), availability of only high priced SPOT PLNG, lack of support from Govt. etc.
The situation gets more complicated when CGD industry has to compare with
subsidized and low cost fuels. In Case of CUGL, with heavy taxation from Up
Government and high Rou charges, it is extremely challenging to sustain the
business specially in cities like Kanpur and Bareilly where the demand are
getting sutured gradually.
Though the present situation looks pretty grim, the can always expect an
array of light once the period is over. With so many LNG terminals expected to
come up in 2016, the availability of NG will not be a problem. After the much
hyped price revision of APM Gas tales place in 2014, RIL is expected to revamp
the production levels in KG-D6. With the advent of henry hub linked prices of
LGN (Chenier Energy), the can expect price relaxation for CGD sector. GAIL is
also looking forward to diversify its LNG Portfolio aimed to have 50% sources
linked to Henry hub linked prices and other 50% to JCC. With so many options
coming up with s little help from government of India, CGD sector can look
forward to a brighter prospects post 2016.
After the legal battle of its power to authorize entities to lay CGD
networks in citied was over, PNGRB has decided to award the cities of 2nd
round of CGGD bidding. CUGL bided and won Jhansi in 2nd round and
after board’s concurrence, CUGL will start its operation in Jhansi. PNGRB is
also planning to restart the bidding process for cities in near future, in
which many cities are from UP. CUGL is always prepared to expand its networks
in OU and will bid for the cities coming up in PNGRB bidding.
INDEX OF CHARGE: NO CHARGES EXIST FOR THE COMPANY
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
NEWS:
INDRAPRASTHA GAS BUYS 50% STAKE IN CENTRAL UP GAS
IGL to
get access to Kanpur and Bareilly markets of Uttar Pradesh with purchase of
stake
Mumbai: Indraprastha Gas Limited, which supplies fuel in Delhi
and its neighborhood, has bought a 50% stake in Kanpur-based Central UP Gas Limited (CUGL), a venture of GAIL (India) Limited and Bharat
Petroleum Corp. Limited (BPCL), for about Rs.700.000
Millions.
With this transaction, IGL will get access to the Kanpur and
Bareilly markets of Uttar Pradesh. The transaction offers exits to CUGL’s three
investors—IDFC Private Equity, IL and FS Investment
Managers Limited and the Asian Development Bank (ADB)—at about a 17%
rate of return, multiplying their investment 2.6 times.
In 2006, these three firms had invested Rs.300.000 Millions in CUGL. IDFC Private Equity and IL&FS
Investment Managers each held a 15% stake, while ADB had a 20% stake.
“It was an early stage investment for us. We have been
invested for over six years now. We invested in it from our first fund, which
is fully exited with this transaction now,” said S.G. Shyam
Sundar, partner at IDFC Private Equity. “CUGL is a logical fit for
Indraprastha Gas, which dominates in the National Capital Region. CUGL opens a
new market for them.”
GAIL and BPCL are promoters of Indraprastha Gas and IDFC
Private Equity and IL&FS Investment Managers were investors in it.
Sundar said IDFC Private Equity continued to be bullish on
gas distribution firms due to natural market demand and scalability. IDFC PE is
an investor in Maharashtra Natural Gas Limited,
which is also promoted by GAIL and BPCL.
“A fifty percent stake in CUGL will be held by IGL, while
BPCL and GAIL will hold 25% stake each now,” said an official at GAIL,
confirming the transaction. He, however, requested anonymity, as he is not
authorized to speak to the media. “CUGL is highly profitable and has strong
networks in Bareilly and Kanpur. It makes sense to put money in this company.”
Exits are the single most important issue confronting PE
investors that have seen one full investment cycle of eight to 10 years in
India. Archana Hingorani, chief executive officer and
executive director, IL&FS Investment Managers, said while there have been
“headwinds” from a macroeconomic perspective, in aggregate, the operating
performance of its portfolio remains strong.
“We do intend to monetize this performance and have planned
a series of exits in this fiscal. With public markets subdued, many of these
exits would be strategic in nature,” she said.
There was a significant increase in the number of exits in
2012 compared with 2011―115 exits last year versus 88 the preceding year.
This accounted for a total value of $6.8 billion, up from $4.1 billion in 2011.
Experts said exits by PE investors will further add to
M&A activity. Sunil Goyal, managing director and
chief executive, Ladderup Corporate Advisory Private.
Limited, a Mumbai-based investment bank, sees a sharp increase in the
number of PE firms looking for a strategic investor for portfolio companies in
their search for an exit route.
“In the last two months, eight out of 10 mandates have been
for getting a strategic investor. If the valuation is right, getting a buyer is
not a problem,” he said. According to him, there is a strong M&A appetite
among Indian companies besides global firms looking at getting a foothold in
the country.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.60.10 |
|
|
1 |
Rs.99.85 |
|
Euro |
1 |
Rs.82.58 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
67 |
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 |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.