MIRA
INFORM REPORT
|
Report Date : |
02.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
TOYO ENGINEERING INDIA LIMITED |
|
|
|
|
Registered
Office : |
Toyo House, Lal Bahadur Shashtri Marg, Kanjur Marg (West), Mumbai –
400078, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
12.10.1981 |
|
|
|
|
Com. Reg. No.: |
11-025413 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1000.000
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U28900MH1981PLC025413 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT1772H |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in contracts/assignments of Engineering, Procurement, and Construction on Lump-sum Turnkey basis (EPC-LSTK), Engineering, Procurement, Management and Construction Management (EPCM), Project Management Consultancy (PMC) and Engineering Services. |
|
|
|
|
No. of Employees
: |
Information Declined by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 11420000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘Toyo Engineering Corporation, Japan’. It
is a well established company having a satisfactory track record. There appears losses recorded by the company from its operational
activities during the year 2013. However, the company gets good financial support from its parent
company. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. In view of strong parent, the company can be considered for business
dealings at usual trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilties: “A” |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
07.11.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: “A1+” |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
07.11.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-25737000)
LOCATIONS
|
Registered/ Head Office : |
Toyo House, Lal Bahadur Shashtri Marg, Kanjur Marg (West), Mumbai –
400078, Maharashtra, India |
|
Tel. No.: |
91-22-25737000/ 55967000/ 25737085/ 25737044 |
|
Fax No.: |
91-22-25737520/ 1/ 25737521 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Branch Office : |
214, Splendor Forum, Jasola District Centre, Near Apollo
Hospital, New Delhi - 110044, India |
|
Tel. No.: |
91-11-40591240 |
|
Fax No.: |
91-11-40591246 |
|
Email : |
|
|
|
|
|
Overseas Office : |
Post Box:36109, |
|
Tel. No.: |
+971 267 16669 |
|
Fax No.: |
+971 267 16648 |
|
Email : |
|
|
|
|
|
Toyo Technology Centre/ Satellite Project Office : |
71, Kanjur Marg Village Road, Kanjur Marg (East), Mumbai – 400042,
Maharashtra, India |
|
Tel. No.: |
91-22-25735000 |
|
Fax No.: |
91-22-25735842 |
DIRECTORS
As on 10.09.2013
|
Name : |
Mr. Makoto Takao Fusayama |
|
Designation : |
Director |
|
Address : |
4-16-23, Kamiigusa, Suginami-Ku, Tokyo, Japan 1670023 |
|
Date of Birth/Age : |
23.08.1950 |
|
Qualification: |
Bachelor of Law (LLB) |
|
Date of Appointment : |
23.09.2011 |
|
DIN No.: |
03325946 |
|
|
|
|
Name : |
Mr. Hisashi Kenichi Osone |
|
Designation : |
Managing Director |
|
Address : |
Flat No.181, Mont Blanc Co-Operative Housing Society Limited, Dady Seth Hill, Kemps Corner, Mumbai – 400036, Maharashtra, India |
|
Date of Birth/Age : |
04.01.1954 |
|
Qualification: |
Bachelor of Politics, Graduate from Faculty of Law |
|
Date of Appointment : |
27.01.2010 |
|
PAN No.: |
AAKPO6577A |
|
DIN No.: |
01354803 |
|
|
|
|
Name : |
Mr. Rajendra Yeshwant Kulkarni |
|
Designation : |
Whole Time Director |
|
Address : |
A/503/A and B, 5th Floor, Brentwood Co-operative Housing Limited, Main Street Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India |
|
Date of Birth/Age : |
26.01.1954 |
|
Qualification: |
B Com, ACA, LLB |
|
Date of Appointment : |
17.12.2010 |
|
PAN No.: |
AAAPK9619D |
|
DIN No.: |
02532373 |
|
|
|
|
Name : |
Mr. Krishnarao Subramanyam Vupparapalli |
|
Designation : |
Whole Time Director |
|
Address : |
B/1002/A and B, 10th Floor, Birchwood Co-operative Housing Limited, Main Street Hiranandani Gardens, Powai, Mumbai – 400076, Maharashtra, India |
|
Date of Birth/Age : |
01.07.1949 |
|
Qualification: |
BE (Mech) |
|
Date of Appointment : |
17.12.2010 |
|
DIN No.: |
03368039 |
|
|
|
|
Name : |
Yutaka Koukichi Kita |
|
Designation : |
Director |
|
Address : |
1-20-21-901, Chuoko Chuo KU, Chibra-Shi, Chibra Japan 2600024 |
|
Date of Birth/Age : |
06.07.1952 |
|
Qualification: |
Master of Engineering |
|
Date of Appointment : |
29.08.2012 |
|
DIN No.: |
05313469 |
|
|
|
|
Name : |
Shoji Koshikawa |
|
Designation : |
Director |
|
Address : |
2-9-14, Mizuhodai, Oamishirasato – Shi, Chiba, Japan 2993234 |
|
Date of Birth/Age : |
07.04.1957 |
|
Date of Appointment : |
10.09.2013 |
|
DIN No. : |
06575399 |
|
|
|
|
Name : |
Hiroshi Fujita |
|
Designation : |
Director |
|
Address : |
Konan, 4-6-2-2502, Minato-Ku, Tokyo 1080075 |
|
Date of Birth/Age : |
24.04.1959 |
|
Date of Appointment : |
10.09.2013 |
|
DIN No. : |
06585235 |
KEY EXECUTIVES
|
Name : |
Mr. Suhas Dinekar Patwardhan |
|
Designation : |
Secretary |
|
Address : |
Kaustubh, 780/3 Shivaji Nagar, Pune – 411004, |
|
Date of Birth/Age : |
06.01.1961 |
|
Date of Appointment : |
01.04.2011 |
|
PAN No.: |
ADDPP6747P |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 10.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Toyo Engineering Corporation, |
|
98899996 |
|
Hisashi Kenichi Osone |
|
600000 |
|
Rajendra Yeshwant Kulkarni |
|
500000 |
|
Tec Estate Limited (Nominee of Toyo Engineering Corporation, Japan) |
|
1 |
|
Tecno Frontier Company Limited (Nominee of Toyo Engineering
Corporation, Japan) |
|
1 |
|
Tec Air Service Corporation (Nominee of Toyo Engineering Corporation,
Japan) |
|
1 |
|
Tec Accounting and Consulting Limited (Nominee of Toyo Engineering
Corporation, Japan) |
|
1 |
|
Total |
|
100000000 |
As on 10.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident Indian(s) or Overseas Corporate bodies or Others |
|
|
Bodies corporate |
|
|
Directors or relatives of Directors |
|
|
Other top fifty shareholders |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in contracts/assignments of Engineering, Procurement, and Construction on Lump-sum Turnkey basis (EPC-LSTK), Engineering, Procurement, Management and Construction Management (EPCM), Project Management Consultancy (PMC) and Engineering Services. |
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|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information Declined by management |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
· Axis Bank Limited, Trishul, 3rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India · Mizuho Corporate Bank Limited, Maker Chamber III, First Floor, Jamnalal Bajaj Road, Nariman Point, Mumbai – 400021, Maharashtra, India · Standard Chartered Bank, 90, M G Road, Fort, Mumbai – 400 001, Maharashtra, India · Ing Vysya Bank Limited, Narian Manzil,Ground Floor,Shop No. G1 To G5, I Floor,Shop No.1001 To 1007,Barakhamba Road,, New Delhi - 110001, India |
||||||||||||||||||||||||
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|
||||||||||||||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
Address : |
16th Floor, Zone D, The Ruby, Senapati Bapat Marg, Tulsi
Pipe Road, Dadar (West), Mumbai – 400 028, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
ABSFS4151K |
|
|
|
|
Holding Company: |
Toyo Engineering Corporation, Japan |
|
|
|
|
Subsidiaries of
holding company: |
· Toyo Business Engineering Corporation, Japan · TEC Project Services Corporation · TEC Business Services Corporation · TEC Estate Corporation, Japan · TEC Air Service Corporation, Japan · TEC Accounting and Consulting Ltd, Japan · Chiba Data Centre Corporation, Japan · Toyo USA Inc, USA · Toyo Engineering Europe SA, Italy · Toyo Engineering Korea Limited, Korea · Toyo Engineering and Construction Sdn. Bhd, Malaysia · Toyo Engg. Corporation., China · TEC Engineering Corporation China (Procurement) · Toyo UK Ltd, United Kingdom · TEC Netherland B.V.-Netherlands · Toyo Canada Corporation, Canada · Toyo do Brazil, Ltda-Brazil · O.O.O. TECHEM, Russia · Toyo Ingenieria De Venezuela, C.A. · Pt. Inti Karya Persada Tehnik |
|
|
|
|
Other related
parties Where common control exits: |
· Toyo Engineering India Limited (Employees’ Benefit Trust) · Toyo Engineering India Limited (Provident Fund) |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 1000.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
1000.000 |
100.000 |
100.000 |
|
(b) Reserves & Surplus |
1856.246 |
995.639 |
1231.000 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1)+(2) |
2856.246 |
1095.639 |
1331.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
196.602 |
292.817 |
96.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
196.602 |
292.817 |
96.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1667.135 |
1860.230 |
945.000 |
|
(b) Trade payables |
2048.085 |
2531.863 |
1969.000 |
|
(c) Other current
liabilities |
2197.591 |
2278.862 |
2256.000 |
|
(d) Short-term provisions |
406.865 |
331.383 |
357.000 |
|
Total Current Liabilities (4) |
6319.676 |
7002.338 |
5527.000 |
|
|
|
|
|
|
TOTAL |
9372.524 |
8390.794 |
6954.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
647.387 |
737.425 |
379.000 |
|
(ii) Intangible Assets |
42.353 |
40.726 |
32.000 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
142.228 |
126.153 |
68.000 |
|
(d) Long-term Loan and Advances |
108.553 |
96.314 |
164.000 |
|
(e) Other Non-current assets |
5.787 |
0.735 |
5.000 |
|
Total Non-Current Assets |
946.308 |
1001.353 |
648.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
3422.119 |
2874.375 |
2354.000 |
|
(d) Cash and cash
equivalents |
76.477 |
70.394 |
110.000 |
|
(e) Short-term loans and
advances |
2107.413 |
1601.496 |
1252.000 |
|
(f) Other current assets |
2820.207 |
2843.176 |
2590.000 |
|
Total Current Assets |
8426.216 |
7389.441 |
6306.000 |
|
|
|
|
|
|
TOTAL |
9372.524 |
8390.794 |
6954.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Sale |
10034.601 |
9899.239 |
7709.000 |
|
|
|
Other Income |
95.416 |
92.709 |
108.000 |
|
|
|
TOTAL |
10130.017 |
9991.948 |
7817.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4179.949 |
|
|
|
|
|
Purchases of stock-in-trade |
2242.571 |
2034.484 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(0.917) |
(7.140) |
|
|
|
|
Employee benefit expense |
2383.768 |
2155.131 |
|
|
|
|
Other expenses |
1030.247 |
1028.405 |
|
|
|
|
TOTAL |
9835.618 |
9731.763 |
7439.000 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
294.399 |
260.185 |
378.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
347.163 |
361.435 |
158.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(52.764) |
(101.250) |
220.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
180.724 |
181.455 |
82.000 |
|
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD
ITEMS BEFORE TAX |
0.000 |
1.277 |
(3.000) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(233.488) |
(281.428) |
135.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(16.075) |
(46.331) |
81.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(217.413) |
(235.097) |
54.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
103.561 |
338.658 |
351.271 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
0.000 |
0.000 |
40.000 |
|
|
|
Tax on Proposed Dividend |
0.000 |
0.000 |
6.489 |
|
|
|
General Reserve |
0.000 |
0.000 |
20.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(113.852) |
103.561 |
338.658 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Consultancy Fees/ Turnkey project Income |
1294.500 |
252.100 |
80.357 |
|
|
|
Other Income |
0.010 |
0.000 |
0.014 |
|
|
TOTAL EARNINGS |
1294.51 |
252.100 |
80.371 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
902.610 |
308.950 |
95.934 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
(2.17) |
(23.51) |
5.39 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(2.15)
|
(2.35)
|
0.69 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.33)
|
(2.84)
|
1.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.53)
|
(3.41)
|
1.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
(0.26)
|
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.65
|
1.97
|
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.33
|
1.06
|
1.14 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT
MATURITIES OF LONG TERM DEBTS
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
|
|
|
|
|
Current maturities of long-term debt |
94.118 |
94.118 |
24.000 |
|
|
|
|
|
|
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
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 |
Yes |
|
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 |
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 |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No: ITXAL/1696/2012 Filing Date: 29/10/2012 Reg. No.: ITXA/513/2013 Reg. Date: 13/03/2013 |
|
Petitioner: THE COMMISSIONER OF INCOME TAX - 10
Respondent: M/S. TOYO ENGINEERING INDIA Petn. Adv : TEJVEER SINGH (0) LIMITED District: MUMBAI |
|
Bench: DIVISION Status: Admitted (Unready)
Category: TAX APPEAL Last Date: 08/02/2013
Stage: FOR DIRECTION Last Coram: HON’BLE SHRI JUSTICE J.P. DEVADHAR HON’BLE SHRI
JUSTICE M.S. SANKLECHA |
|
Act: Income Tax Act, 1961 UNDER SECTION: 260A |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10276209 |
08/03/2011 |
400,000,000.00 |
ING VYSYA BANK LIMITED |
MITTAL TOWERS,A-WING,GROUND FLOOR, 210 NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B09192436 |
|
2 |
10211223 |
20/06/2012 * |
2,000,000,000.00 |
AXIS BANK LIMITED |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA |
B42843862 |
|
3 |
10199202 |
25/01/2012 * |
500,000,000.00 |
THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED |
HOECHST HOUSE, 15TH FLOOR, 193, VINAY K. SHAH MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B32640237 |
|
4 |
10033144 |
07/09/2011 * |
1,000,000,000.00 |
MIZUHO CORPORATE BANK LIMITED |
MAKER CHAMBER III, FIRST FLOOR, JAMNALAL BAJAJ ROAD, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B20991782 |
|
5 |
10021549 |
11/04/2011 * |
3,870,000,000.00 |
STANDARD CHARTERED BANK |
90, M G ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA |
B10680825 |
|
6 |
90241219 |
07/02/2013 * |
1,500,000,000.00 |
ING VYSYA BANK LIMITED |
NARIAN MANZIL,GROUND FLOOR,SHOP NO. G1 TO G5, I FLOOR, SHOP NO.1001 TO 1007, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA |
B69678829 |
* Date of charge modification
CORPORATE INFORMATION
Toyo India is a subsidiary of Toyo Engineering Corporation., Japan engaged in contracts/assignments of Engineering, Procurement, and Construction on Lump-sum Turnkey basis (EPC-LSTK), Engineering, Procurement, Management and Construction Management (EPCM), Project Management Consultancy (PMC) and Engineering Services.
OPERATIONS
The Company's operations during the year resulted in a turnover of Rs.10035.000 millions (Previous year Rs. 9899.000 millions) and the Company incurred loss of Rs.233.000 millions (Previous year Loss Rs.283.000 millions).
The Company, during the year, incurred the loss primarily due to cost overrun in two major projects apart from unabsorbed corporate interest cost and deferment of project income due to unapproved change orders.
BUSINESS PROSPECTS
INDIAN BUSINESS
The sluggish Indian economy in previous couple of years is predicted to improve in FY 2013-14, in light of several reforms recently announced by the Government. One of the important reforms, very relevant to their industry, is setting up Cabinet Committee to expedite decisions on investments for implementation of mega-projects. Business prospects for the Company, in relevant sectors, anticipated through such reforms and other reasons are narrated below:
OIL AND GAS
PROCESSING, REFINERY SECTOR:
The country imports large quantity of Crude oil and LNG for natural gas to meet it’s energy requirements. To curtail imports, several project initiatives are planned by corporates in this sector to augment crude oil and gas production. These include 7 mega-projects for setting up onshore facilities in western region and couple of projects in southern region. The Company intends to participate in these projects.
Few project opportunities are foreseen in Refinery sector. One of the projects is grassroots-mega project for refinery integrated with petrochemicals. Other two prospects are projects for capacity augmentation of existing facilities. The Company plans to participate aggressively in these prospects by leveraging it’s core experience and capability in this sector.
PETROCHEMICAL SECTOR:
Most of the mega-project prospects in Petrochemical sector are at nascent stage. The Company is active in this sector hence intends to participate in these prospects right from pre-project activities like Feasibility study, Cost estimation, etc. This will benefit the Company for participation at implementation stage.
CRYOGENIC SECTOR:
The Company has vast experience in implementing projects with Cryogenic process or applications i.e. sub-zero temperatures. Such projects include LNG import terminals, LPG terminals, Ammonia storage terminals and C2/C3 recovery plants. The Company is aiming to consolidate it’s experience through participation in forthcoming prospects in this sector.
Unexpected shortage in Natural Gas production in the country is leading to several LNG import terminal project initiatives by PSU and private sector companies. Three projects have already reached the implementation stage in the beginning of this financial year.
The Company would leverage the capability and past experience to bag contracts for implementing such projects to augment the sales.
FERTILISER SECTOR:
The country is importing large quantities of Urea. To reduce this import dependency, the Government of India has already announced the Fertiliser policy to attract investments for setting up new Fertiliser manufacturing units in India. Many mega-projects to manufacture Ammonia and Urea are at planning or implementation stage.
The Company undertakes mega-size contracts for implementation of Ammonia and Urea plant projects. In association with parent company, the Company offers Total solution to the client comprising technology supply integrated with implementation through EPC-LSTK contract scope.
One mega-project is awarded at the beginning of the year 2013-14. The Company would be participating in couple of other opportunities of similar nature in this sector.
OTHER SECTORS:
The Company is also striving to secure business in non-core sectors like Water, Power and Industrial. It has successfully secured and completed Water Treatment project in previous year. Leveraging this experience and support of the group, the Company looks forward in tapping prospects in Water sector business.
OVERSEAS BUSINESS
Currently, the Company is executing several assignments, along with Toyo Japan, in countries like Nigeria, Egypt, Malaysia, Venezuela, Indonesia and Singapore. Many more business prospects are foreseen in this financial year from countries like USA, Canada and Brazil.
MIDDLE-EAST BUSINESS
The Company is continuously pursuing prospects from Middle East countries. In previous year, the Company participated in 3 project prospects with EPC-LSTK scope in Kuwait and UAE. However they were lost on price by narrow margins. The Company plans to have selective approach for participation in forthcoming opportunities in Middle East countries. The Company also plans to explore prospects other than EPC-LSTK scope and also looks forward to associate with other synergistic companies.
Presently the Company has the contracts under execution of aggregate value of Rs. 7474.000 millions.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Claims made by the Authorities in respect of Company's and Employees contribution under the Employees State Insurance Act, the Company has challenged the applicability of the said Act and consequently has rebutted the demands raised with effect from April 1st, 1980 |
Indeterminate |
Indeterminate |
|
Claims not acknowledged as debts |
4.231 |
4.231 |
|
VAT (under KVAT Act 2003) |
255.565 |
255.565 |
|
VAT(under GVAT Act 2003) |
9.352 |
39.196 |
|
Service Tax demand (under show cause notice) |
234.607 |
0.000 |
|
Total |
503.755 |
298.992 |
FIXED ASSETS
v
Tangible
Assets
· Land
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Leasehold Improvements
v
Intangible
Assets
· Goodwill
· 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,
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.61.93 |
|
|
1 |
Rs.102.39 |
|
Euro |
1 |
Rs.85.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
45 |
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.