MIRA INFORM REPORT
|
Report No. : |
303756 |
|
Report Date : |
17.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
AHLUWALIA CONTRACTS (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
A-177, Okhla Industrial Area, Phase-I, New Delhi – 110020 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
02.06.1979 |
|
|
|
|
Com. Reg. No.: |
55-009654 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 125.525 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L45101DL1979PLC009654 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELA01095D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCA4304K |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the business of providing constructions related activities
where risks and returns in all the cases are similar. |
|
|
|
|
No. of Employees
: |
20000 (Approximately) |
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 6400000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. The rating takes into consideration ACIL’s experience in diversified
construction activities supported by improved operational performance which
resulted into profit achieved from its operational activities during 2014 and
sound liquidity profile of the company. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. 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.
ECGC Country Risk Classification List – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = BBB |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
January 22, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A3 |
|
Rating Explanation |
Moderate degree of safety and high credit risk. |
|
Date |
January 22, 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
31-03-2014.
LOCATIONS
|
Registered/ Corporate Office : |
A-177, Okhla Industrial Area, Phase-I, New Delhi – 110020, India |
|
Tel. No.: |
91-11-49410500/ 502/ 517/ 599 |
|
Fax No.: |
91-11-49410553/ 49410575 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Bikramjit Ahluwalia |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Shobhit Uppal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Vinay Pal |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Arun Kumar Gupta |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. S. K. Chawla |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. Sushil Chandra |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Vipin Kumar Tiwari |
|
Designation : |
GM (Corporate) and Company Secretary |
SHAREHOLDING PATTERN
AS ON 31.12.2014
|
Category of
Shareholder |
No. of Shares |
% of Holdings |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
46148918 |
68.89 |
|
|
25000 |
0.04 |
|
|
46173918 |
68.93 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
46173918 |
68.93 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
2212170 |
3.30 |
|
|
13536 |
0.02 |
|
|
9087818 |
13.57 |
|
|
11313524 |
16.89 |
|
|
|
|
|
|
4794193 |
7.16 |
|
|
|
|
|
|
2591023 |
3.87 |
|
|
1178339 |
1.76 |
|
|
936563 |
1.40 |
|
|
10599 |
0.02 |
|
|
388235 |
0.58 |
|
|
203353 |
0.30 |
|
|
278647 |
0.42 |
|
|
55729 |
0.08 |
|
|
9500118 |
14.18 |
|
Total Public
shareholding (B) |
20813642 |
31.07 |
|
Total (A)+(B) |
66987560 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
66987560 |
100.00 |
%20LIMITED%20-%20303756%2017-Jan-2015_files/image016.gif){kind=small}
%20LIMITED%20-%20303756%2017-Jan-2015_files/image017.gif){kind=small}
%20LIMITED%20-%20303756%2017-Jan-2015_files/image018.gif){kind=small}
%20LIMITED%20-%20303756%2017-Jan-2015_files/image020.gif)
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of providing constructions related
activities where risks and returns in all the cases are similar. |
|
|
|
|
Products : |
Not Available |
|
|
|
|
Brand Names : |
Not Available |
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|
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|
Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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|
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Terms : |
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Selling : |
Not Available |
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|
|
|
Purchasing : |
Not Available |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
20000 (Approximately) |
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Bankers : |
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Facilities : |
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Auditors : |
|
|
Name : |
Arun K. Gupta and Associates Chartered Accountants |
|
Address : |
D-58, 1st Floor, East of Kailash, New Delhi – 110065, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
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|
|
|
Related Parties : |
|
|
|
|
|
Wholly owned Subsidiary Companies : |
|
CAPITAL STRUCTURE
AS ON 30.09.2014
Authorised Capital : Rs. 200.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 133.975
Millions
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,00,000 |
Equity Shares |
Rs. 2/- each |
Rs. 200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6,27,62,560 |
Equity Shares |
Rs. 2/- each |
Rs. 125.525
Millions |
|
|
|
|
|
Terms / Rights attached to equity shares
The company has only one class of equity share
having a par value of Rs. 2/- per share. Each equity shareholder is entitled
for one vote per share.
The Company declares and pays dividend in
Indian Rupees. The dividend proposed by the Board of Directors of the company,
subject to the approval of the Members/Shareholders of the Company in the
ensuing Annual General Meeting.
As per of the company, including its register
of Shareholders/Members and other declarations received from shareholders
regarding beneficial interest, the above shareholding represents both legal and
beneficial ownerships of shares.
Reconciliation of the number of Equity shares outstanding at the
beginning and at the end of the reporting year.
|
Particulars |
As at 31.03.2014 |
|
|
No. of shares |
Rs. In Millions |
|
|
At the beginning of the period |
62762560 |
125525120 |
|
Add : Shares issued during the year |
Nil |
Nil |
|
Outstanding at the end of the period |
62762560 |
125525120 |
Details of shareholders holdings more than 5% shares in the company.
|
Particulars |
As at 31.03.2014 |
|
|
No. of shares |
% of holdings |
|
|
Equity Shares of Rs. 2/- each fully paid |
|
|
|
Mr. Bikramjit Ahluwalia |
5181198 |
8.26 |
|
Mrs. Sudershan Walia |
23562380 |
37.54 |
|
Mr. Shobhit Uppal |
4308000 |
6.86 |
|
Mrs. Ram Piari |
4259900 |
6.79 |
|
Mrs. Pushpa Rani |
3956100 |
6.30 |
|
Nalanda India Fund Limited |
3545485 |
5.65 |
|
Nalanda India Equity Fund Limited |
3870102 |
6.17 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
125.525 |
125.525 |
125.525 |
|
(b) Reserves & Surplus |
2136.137 |
1918.823 |
2681.215 |
|
(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) |
2261.662 |
2044.348 |
2806.740 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
329.278 |
360.440 |
188.114 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
659.822 |
330.894 |
220.985 |
|
(d) long-term
provisions |
14.359 |
20.610 |
13.152 |
|
Total Non-current
Liabilities (3) |
1003.459 |
711.944 |
422.251 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
1935.316 |
1961.944 |
1828.621 |
|
(b) Trade
payables |
2905.539 |
2970.464 |
3071.689 |
|
(c) Other
current liabilities |
2372.170 |
2697.449 |
2919.889 |
|
(d) Short-term
provisions |
27.070 |
3.665 |
6.046 |
|
Total Current
Liabilities (4) |
7240.095 |
7633.522 |
7826.245 |
|
|
|
|
|
|
TOTAL |
10505.216 |
10389.814 |
11055.236 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1300.007 |
1376.787 |
1504.333 |
|
(ii)
Intangible Assets |
7.373 |
8.358 |
7.374 |
|
(iii)
Capital work-in-progress |
19.583 |
5.331 |
26.000 |
|
(iv)
Intangible assets under development |
657.532 |
402.148 |
281.719 |
|
(b) Non-current Investments |
14.889 |
14.889 |
114.889 |
|
(c) Deferred tax assets (net) |
162.050 |
162.050 |
162.049 |
|
(d) Long-term Loan and Advances |
772.190 |
928.775 |
611.032 |
|
(e) Other
Non-current assets |
96.202 |
90.345 |
572.838 |
|
(f) Trade
Receviable |
662.315 |
550.289 |
192.559 |
|
Total Non-Current
Assets |
3692.141 |
3538.972 |
3472.793 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
20.000 |
|
(b)
Inventories |
1719.530 |
1671.850 |
2193.944 |
|
(c) Trade
receivables |
4044.991 |
4101.001 |
4260.641 |
|
(d) Cash
and cash equivalents |
545.073 |
854.735 |
838.152 |
|
(e)
Short-term loans and advances |
463.278 |
188.403 |
231.318 |
|
(f) Other
current assets |
40.203 |
34.853 |
38.388 |
|
Total
Current Assets |
6813.075 |
6850.842 |
7582.443 |
|
|
|
|
|
|
TOTAL |
10505.216 |
10389.814 |
11055.236 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9603.442 |
13882.130 |
13636.102 |
|
|
|
Other Income |
144.306 |
153.785 |
109.807 |
|
|
|
TOTAL (A) |
9747.748 |
14035.915 |
13745.909 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4598.986 |
7659.751 |
7792.433 |
|
|
|
Operating Expenses |
2470.495 |
3273.576 |
3239.971 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(167.639) |
143.158 |
(652.294) |
|
|
|
Employees benefits expense |
1938.805 |
2590.907 |
2697.169 |
|
|
|
Purchase of Traded Goods |
113.103 |
176.774 |
78.878 |
|
|
|
Other Expenses |
232.574 |
275.553 |
301.816 |
|
|
|
TOTAL (B) |
9186.324 |
14119.719 |
13457.973 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
561.424 |
(83.804) |
287.936 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
363.004 |
333.922 |
264.369 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
198.420 |
(417.726) |
23.567 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
121.551 |
351.955 |
428.651 |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXCEPTIONAL
ITEMS |
141.112 |
8.057 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
217.981 |
(761.624) |
(405.084) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.500 |
0.600 |
1.231 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
217.481 |
(762.224) |
(406.315) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
3.47 |
(12.14) |
(6.47) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin PAT / Sales |
(%) |
2.26
|
(5.49) |
(2.98) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
5.85
|
(0.60) |
2.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.43 |
(8.23) |
(3.94) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
(0.37) |
(0.14) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.00 |
1.14 |
0.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.94 |
0.90 |
0.97 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
125.525 |
125.525 |
125.525 |
|
Reserves & Surplus |
2681.215 |
1918.823 |
2136.137 |
|
Net
worth |
2806.740 |
2044.348 |
2261.662 |
|
|
|
|
|
|
long-term borrowings |
188.114 |
360.440 |
329.278 |
|
Short term borrowings |
1828.621 |
1961.944 |
1935.316 |
|
Total
borrowings |
2016.735 |
2322.384 |
2264.594 |
|
Debt/Equity
ratio |
0.719 |
1.136 |
1.001 |
%20LIMITED%20-%20303756%2017-Jan-2015_files/image022.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
13636.102 |
13882.130 |
9603.442 |
|
|
|
1.804 |
(30.822) |
%20LIMITED%20-%20303756%2017-Jan-2015_files/image024.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
13636.102 |
13882.130 |
9603.442 |
|
Profit |
(406.315) |
(762.224) |
217.481 |
|
|
(2.98%) |
(5.49%) |
2.26% |
%20LIMITED%20-%20303756%2017-Jan-2015_files/image026.gif)
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 |
No |
|
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 |
No |
|
33] |
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10542536 |
01/12/2014 |
5,020,580.00 |
SREI EQUIPMENT FINANCE LIMITED |
'VISHWAKARMA', 86C, TOPSIA ROAD,, KOLKATA, West Bengal - 700046, INDIA |
C40176547 |
|
2 |
10531494 |
22/10/2014 |
200,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
7th Floor, Ambadeep Building,, 14, K. G. Marg, Connaught Place, New Delhi, Delhi - 110001, INDIA |
C33736125 |
|
3 |
10503778 |
07/06/2014 |
70,000,000.00 |
SREI EQUIPMENT FINANCE LIMITED |
'VISHWAKARMA',
86C,, TOPSIA ROAD (SOUTH),, KOLKAT |
C07062169 |
|
4 |
10470753 |
03/01/2014 |
4,000,000.00 |
L & T FINANCE LIMITED |
L&T HOUSE,, BALLARD ESTATE, MUMBAI, Maharashtra - 400001, INDIA |
B93724763 |
|
5 |
10470752 |
28/11/2013 |
15,934,000.00 |
L & T FINANCE LIMITED |
L&T HOUSE, BALLARD ESTATE, MUMBAI, Maharashtra - 400001, INDIA |
B93724532 |
|
6 |
10382976 |
01/09/2012 |
4,580,000.00 |
SIEMENS FINANCIAL SERVICES PRIVATE LIMITED |
130, PANDURANG BUDHKAR MARG,, WORLI, MUMBAI, Maharashtra - 400018, INDIA |
B60687241 |
|
7 |
10372095 |
05/07/2012 |
2,770,000.00 |
SIEMENS FINANCIAL SERVICES PRIVATE LIMITED |
130, PANDURANG BUDHKAR MARG,, WORLI, MUMBAI, Maharashtra - 400018, INDIA |
B56223381 |
|
8 |
10369212 |
22/06/2012 |
3,529,000.00 |
SIEMENS FINANCIAL SERVICES PRIVATE LIMITED |
130, PANDURANG BUDHKAR MARG,, WORLI, MUMBAI, Maharashtra - 400018, INDIA |
B45147709 |
|
9 |
10364615 |
22/06/2012 |
10,700,000.00 |
SIEMENS FINANCIAL SERVICES PRIVATE LIMITED |
130, PANDURANG BUDHKAR MARG,, WORLI, MUMBAI, Maharashtra - 400018, INDIA |
B43240886 |
|
10 |
10364613 |
15/06/2012 |
1,400,000.00 |
SIEMENS FINANCIAL SERVICES PRIVATE LIMITED |
130, PANDURANG BUDHKAR MARG,, WORLI, MUMBAI, Maharashtra - 400018, INDIA |
B43240340 |
* Date of charge modification
LITIGATION DETAILS
|
IN THE HIGH COURT OF DELHI AT NEW DELHI ARB.P. 282/2014 M/S GUPTA ASSOCIATES…..Petitioner Through: Mr. S.K. Upadhyay, Advocate. Verus AHLUWALIA CONTRACTS(INDIA) LTD AND OTHERS …….Respondent Through: Mr. Parijat Kishore, Advocate. |
MANAGEMENT DISCUSSION AND ANALYSIS
INDIAN ECONOMIC SCENARIO
Financial year 2013-14 was, admittedly, a year of considerable slowdown in the economy, recording a sub-5% GDP growth for the second consecutive year.
The overall global economic depression adversely impacted the first half of the year, along with domestic factors such as high inflationary regime, high interest rate environment, increased currency volatility, slow-industrial outputs, etc.
The trend reversed somewhat in the second half of the year, following considerable improvement in Current Account Deficit (CAD), which declined to manageable levels, reduction in fiscal deficit, currency stability, lower Consumer Price Index (CPI) (especially in the last quarter), upsurge in capital markets, among other factors. Focused reform measures adopted by the Government and RBI gave a definitive push to the economy, which showed signs of improvement.
Going forward, the outlook for FY 2014-15 looks bright, with the new, stable government at the Centre expected to give the reforms agenda a boost, thereby leaving behind the policy paralysis of the last couple of years. Business sentiment in the country is upbeat amid expectations of concerted measures to address supply-side concerns, boost infrastructure investments, revive the investment climate and thereby inject growth, positivity and confidence in the economy.
These factors, coupled with expectations of moderate recovery in some advanced economies, are likely to provide the much needed fillip to the country’s growth prospects.
INDIAN CONSTRUCTION
INDUSTRY
OVERVIEW
Construction activity is an integral part of the country’s infrastructure and industrial development, and the construction industry has a significant impact on the Indian economy. The industry covers such vital sectors such as hospitals, schools, townships, offices, houses and other buildings; urban infrastructure (including water supply sewerage, drainage); highways, roads, ports, railways, airports; power systems; irrigation and agriculture systems; telecommunications etc. With such a wide spectrum covered, the sector becomes the basic input for socio-economic development.
The importance of the Construction sector can be gauged from the following statistics.
- It contributes to about 65% of the total investment towards infrastructure
- It provides employment to about 33 million people, making it the second largest employer after agriculture
According to the latest report published by ‘The Market, Financial Intelligence’, the country’s construction capacity for asset building was estimated at ` 4150000.000 Millions p.a. in 2012. During the 12th Five Year Plan Period (2012-17), it is expected to build assets worth ` 52309000.000 Millions. It’s a tall target, which would require the sector to double its capacity during this period.
This means that the human as well as the material inputs need considerable stepping up, and therefore, the Government’s plans and policies too, will need upgradation and modifications accordingly.
GROWTH DRIVERS
INCREASING
URBANISATION TREND
Today, about 31% of India’s population lives in the urban areas (The level rises to 35%, if the rural clusters having a population of more than 10,000 people, are classified as urban). It is much lower than its emerging market peers – 49% in China, 54% in Indonesia, 78% in Mexico and 87% in Brazil. However, Indian economy is in quest of a rapid change in the pace of urbanisation that will dwarf what it has witnessed in the past decades. Indian economy is slated to grow to 43%, housing a population of about 540 Million
BUSINESS ACTIVITIES
ACIL is an integrated construction company, offering turnkey solutions in engineering and designing to public and private sectors. The Company executes projects across high rise residential, commercial complexes, luxury hotels, institutional buildings, hospitals & medical colleges, corporate office complexes, IT parks & industrial complexes, metro rail stations & depots, power plants, motorized car parking, among others
The ACIL presence extends across the value chain and the Company develops assets right from planning and conceptualization to execution. The Company retains the ownership rights on the assets so created, and the returns generated from utilization of the assets lead to value expansion.
ACIL has a robust Order Book, built on the strengths of its strategically focused direction, expertise & experience, and strong execution capabilities. The Company’s Order Book pipeline, as on 31st March, 2014, was approximately Rs. 52210.000 Millions, with about [48%] of it coming from Government projects and the remaining from Private Projects.
The Company has a portfolio of marquee clients across the public and private sectors, with repeat orders coming in for several of them.
Armed with robust cost control and optimization measures, the Company has built in robust efficiencies which have enabled it to keep its growth agenda on track despite the downturn witnessed by the industry over the last couple of years.
OPERATIONAL AND FINANCIAL
PERFORMANCE
The industry has battled a multitude of problems in the past two years. The year gone by witnessed an increase in raw material prices, higher interest rate environment, slowdown in general economy and project execution, reduced sanctions from banks to real estate and construction industry, etc.
However, despite the constraints resulting from these developments, ACIL was able to stage a turnaround in its operations and bring in profits after two years of significant losses. The Company achieved profitability margins of 6.81% at the EBITDA level and 2.26% at the PAT level. A series of focused measures enabled the Company to reverse the trend, including cost control, completion of loss contracts, sale of non-core assets, manpower planning, etc. These, coupled with strong and streamlined project monitoring system and contracting policy, aided funding of the working capital gaps etc.
The Company’s order book is stable at Rs. 52210.000 Millions as on 31st March, 2014.
AWARDS AND RECOGNITION
ACIL was bestowed with the prestigious Commendation Certificate of Indian Buildings Congress Award for Excellence in Built Environment, 2013, for ‘Indian Institute of Corporate Affairs’ Project, built at Manesar, Haryana.
The award was received by Shri Harpal Singh – Asst. Vice President from Dr. Girija Vyas, Union Minister of Housing and Urban Poverty Alleviation and Dr. Sudhir Krishna, Secretary, Ministry of Urban Development.
ACIL bagged the prestigious ‘Prashansa Patra’ for the second consecutive year, in NSCI Awards 2012 for Mumbai Metro One Project, from Shri Arun Kumar Sinha, Additional Secretary, Ministry of Labour and Employment, Government of India. The award was conferred in recognition of exemplary monitoring and implementation of effective safety systems and procedures.
OUTLOOK
With a backlog of years of underinvestment and incremental demands from the rising urban population, Rs. 40 Trillion is estimated towards capital expenditure and about Rs. 10.7 Trillion towards operations & maintenance (aggregating to Rs. 50.7 Trillion), across Indian cities between the years 2013 and 2025 (based on the norms prepared by the Ministry of Urban Development, Govt. of India).
The amount is equivalent to an average per capita annual spending of Rs. 7,543 over the abovementioned period. As per the estimates, 80% of this opportunity lies in fresh capital expenditure, a major portion of which would address the gaps in the existing infrastructure requirement across Indian cities.
OPERATIONS
During the year ended March 31, 2014, the Company has achieved Total turnover of Rs. 974770.000 Millions as against Rs. 1403590.00 Millions for the previous year ended March 31, 2013 decreased by 30.55% as compared with previous year. The Company has Profit of Rs. 21750.000 Millions as against net loss Rs. 76220.000 Millions. EPS for the financial year 2013-14 stood at Rs. 3.470. On consolidated basis, the total income of your company and its subsidiaries stands at Rs. 960590.000 Millions.
The inflationary trend in the economy increased the input cost, thereby putting pressure on margins.
FUTURE OUTLOOK
Financial year 2014 is expected to be another difficult year for the Company .However, one expect good order is supposed to perform reasonably well with a slow economy. Overall, the focus will be cost reduction, cost optimization and timely delivery of the projects. The macro economic situation in the industry and business environment continues to remain uncertain. Therefore, our priority will be for execution of orders in hand.
UNSECURED LOANS
|
PARTICULAR |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Term loan from others |
43.588 |
21.642 |
|
SHORT TERM
BORROWINGS |
|
|
|
Working capital loans form related party |
140.819 |
75.214 |
|
Total |
184.407 |
96.676 |
|
SHORT
TERM BORROWINGS Loan from Director is interest free and
repayable on demand. |
||
FIXED ASSETS
- Land
Leasehold
- Buildings
- Temporary
Structures
- Plant and Machinery
- Vehicles
- Furniture and
Fixtures
- Office
Equipments
- Air
Conditioners
- Computers
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. 61.89 |
|
|
1 |
Rs. 93.92 |
|
Euro |
1 |
Rs. 72.01 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
JYO |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
5 |
|
--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 |
YES |
|
--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.