. MIRA INFORM REPORT
|
Report Date : |
24.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
L AND T HYDROCARBON MID AND DOWNSTREAM PROJECTS |
|
|
|
|
Registered
Office : |
L and T House, N. M. Marg, Ballard Estate, Mumbai – 400 001,
Maharashtra |
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Country : |
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RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
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|
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Litigation : |
Clear |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 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.
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 / Head Office : |
L and T House, N. M. Marg, Ballard Estate, Mumbai – 400 001,
Maharashtra, India |
|
Tel. No.: |
91-22-61774200 |
|
Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Regional Office 1 : |
Saki Vihar Road, Powai, G3 Building, 1st Floor, Gate 1,
Mumbai – 400 072, Maharashtra, India |
|
Tel. No.: |
91-22-67050505 |
|
|
|
|
Regional Office 2 : |
‘Knowledge City’, N. H. No.8, Vadodara – 390 019, Gujarat, India |
|
Tel. No.: |
91-265-2451000 / 4000 / 6000 |
GENERAL OBSERVATIONS
Larsen and toubro Limited (L and T) is a technology,
engineering, construction and manufacturing company. It is one of the largest
and most respected companies in India’s private sector.
It is a well-established, diversified and
highly reputed company having an excellent track record.
As claimed by Mr. Sadashiv Patil (Assistant
General Manager) that the Hydrocarbon Engineers is a unit of Larsen and Toubro
Limited.
L and T offers Hydrocarbon Mid and Downstream
SGB provides a wide range of EPC solutions for Turnkey projects.
Trade relations are reported as trustworthy.
Business is active. Payments are reported to be regular and as per commitments.
The company can be considered excellent for
any business dealings at usual trade terms and conditions.
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
No |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
Yes |
|
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 three years |
No |
|
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 |
No |
|
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 |
No |
|
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 |
No |
PRESS
RELEASE:
L AND T
HYDROCARBON BAGS ORDERS WORTH RS.10000.000 MILLIONS
Mumbai, Jan. 16: L&T Hydrocarbon has
recently secured new orders of Rs.10000.000 Millions from the domestic market
in its offshore and onshore business sectors.
The major order is an offshore contract from
the BG Exploration and Production India (BGEPIL) valued around Rs.7000.000
Millions. The contract, won against international competitive bidding,
encompasses total Engineering Procurement Construction and Installation of
one wellhead platform and subsea pipe
laying (30 Kms), spread over the Panna-Mukta fields of joint venture -
ONGC-RIL-BGEPIL.
The project, part of the joint venture’s
strategy to boost production to meet India’s rising energy demands, is
scheduled to be completed by March, 2015. In addition to conventional wellhead
facilities, the scope also includes installation of piggy back pipeline on the
infield pipeline from an existing PPA Host Complex.
In the onshore sector, L&T Hydrocarbon has
also won an additional order of Rs.3000.000 Millions for construction, from a
leading refinery in India.
L and
T Hydrocarbon provides complete design-to-build engineering and
construction solutions for the oil and gas sector. In-house expertise,
extensive experience and collaborations with strategic business partners enable
it to deliver end-to-end solutions for every phase of a project – from
front-end design engineering through fabrication, project management,
procurement, construction and installation to commissioning.
L AND T
HYDROCARBON BAGS RS.7000.000 MILLIONS ORDER IN OMAN
L&T Hydrocarbon has achieved a major
breakthrough in the GCC region by bagging a project order valued around
Rs.7000.000 Millions (around US$ 150 Million) from the Petroleum Development
Oman LLC (PDO). The order is for setting up a green-field project planned to
treat an average of 3 MMSCMD of gas.
The concept for the Lekhwair Gas Field
development project is a single train gas plant in the Lekhwair gas plant for
exporting treated gas (CO2 removed and dehydrated gas) to the Government Gas
Plant in Yibal and unsterilized condensate and water to the existing Lekhwair
Production Station. Lekhwair is located approximately 110 km from the Yibal
Government Gas Plant and its associated network.
The Project includes Main Gas Treatment
plant consisting of Gas Desulfurisation and Gas Dehydration Units with required
utilities and supporting facilities as well as Flow Lines Well pad piping,
Remote Manifold Station, Liquid and Gas export pipelines.
The order was bagged by L&T
Hydrocarbon’s Mid & Downstream Business segment against stiff competition
from reputed international EPC bidders. The scope of the contract includes
Project Management, Residual Basic Design, Planning & Monitoring, Residual
Process Engineering, Detailed Engineering, Procurement, Supply, Fabrication,
Manufacturing, Inspection, Transportation, Storage, Construction, Installation,
Testing, Mechanical Completion, Pre-commissioning, Commissioning, Performance
Guarantee run test.
In the past, L&T has worked for
establishing Onshore Gas Processing complexes for Reliance Industries Limited
at Kakinada, Cairn Energy at Barmer and is presently executing two Gas
Treatment Projects for ONGC at Uran and Hazira. With significant growth
potential in the Natural Gas market in the GCC region, this order is strategic
from the point of view of L&T’s capability to execute such projects in the
GCC region in an extremely competitive environment.
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.61.99 |
|
|
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.83.98 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
72 |
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.