MIRA INFORM REPORT

 

 

Report No. :

332436

Report Date :

16.07.2015

 

IDENTIFICATION DETAILS

 

Name :

L&T HYDROCARBON ENGINEERING LIMITED (w.e.f. 21.05.2013)

 

 

Formerly Known As :

L&T TECHNOLOGIES LIMITED

 

 

Registered Office :

L&T House, N.M. Marg, Ballard Estate, Mumbai – 400 001, Maharashtra

Tel. No.:

91-22-67525656

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

02.04.2009

 

 

Com. Reg. No.:

11-191426

 

 

Capital Investment / Paid-up Capital :

Rs.15000.500 million

 

 

CIN No.:

[Company Identification No.]

U11200MH2009PLC191426

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUML07478C

 

 

PAN No.:

[Permanent Account No.]

AABCL5967D

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged into providing engineering services for the hydrocarbon sector. 

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (68)

 

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 42304000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “Larsen and Toubro Limited”. It is a well-established company having fine track.

 

The rating reflects L&T Hydrocarbon’s improved operational risk profile marked by adequate capital base and financial as well as managerial support that company receives from its parent company.

 

Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitment.

 

In view of strong holding company support, the company can be considered good for normal business dealing at usual trade term 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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

CRISIL

Rating

Long term rating = AAA

Rating Explanation

Highest degree of safety and carry lowest credit risk.

Date

19.12.2014

 

Rating Agency Name

CRISIL

Rating

Short term rating = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

19.12.2014

 

 

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 31-03-2013.

 

LOCATIONS

 

Registered Office :

L&T House, N.M. Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-67525656

Fax No.:

91-22-67525693

E-Mail :

subhodh.shetty@larsentoubro.com

Website :

www.lntenc.com

 

 

DIRECTORS

 

AS ON 12.08.2014

 

Name :

Mr. Krishnamurthi Venkataramanan

Designation :

Managing Director

Address :

Varsha, Flat No.401, Janki Kutir, Juhu, Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

11.12.1944

Date of Appointment :

06.02.2014

DIN No.:

00001647

 

 

Name :

Mr. Hariharan Narayanaswamy

Designation :

Director

Address :

1505/1506, Sparkle City of Joy, Station Road, Mulund (West), Mumbai – 400 080, Maharashtra, India

Date of Birth/Age :

08.12.1952

Date of Appointment :

22.08.2013

DIN No.:

00001668

 

 

Name :

Mr. Ramamurthi Shankar Raman

Designation :

Director

Address :

Room No.123, 12th Floor, Kalpataru Royale, Plot No.110, Road No.29, Sion (East), Mumbai – 400 022, Maharashtra, India

Date of Birth/Age :

20.12.1958

Date of Appointment :

22.08.2013

DIN No.:

00019798

 

 

Name :

Mr. Vikram Singh Mehta

Designation :

Director

Address :

18, Friends Colony West, New Delhi – 110 065, India

Date of Birth/Age :

30.10.1952

Date of Appointment :

12.08.2014

DIN No.:

00041197

 

 

Name :

Dr. Ashok Kumar Balyan

Designation :

Director

Address :

B-45, Asiad Village, Chhota Singh Block, New Delhi – 110 049, India

Date of Birth/Age :

02.07.1951

Date of Appointment :

12.08.2014

DIN No.:

00793181

 

 

Name :

Mr. Sarthak Behuria

Designation :

Director

Address :

K-99, Hauz Khas, New Delhi – 110 016, India

Date of Birth/Age :

02.03.1952

Date of Appointment :

12.08.2014

DIN No.:

03290288

 

 

Name :

Mr. Udayan Dasgupta

Designation :

Whole-time Director

Address :

Flat No.602, Verona, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra, India

Date of Birth/Age :

07.11.1950

Date of Appointment :

12.08.2014

PAN No.:

AAMPD5190Q

DIN No.:

00129114

 

 

Name :

Mr. Ravindranath Kundurti

Designation :

Whole-time Director

Address :

Flat No.301, 3rd Floor, Solitaire Building, Hiranandani, Hiranandani Gardens, Powai, Mumbai – 400 076, Maharashtra, India

Date of Birth/Age :

22.08.1950

Date of Appointment :

12.08.2014

PAN No.:

AAFPK1654F

DIN No.:

00262462

 

 

Name :

Bhagyam Ramani

Designation :

Additional Director

Address :

501, Anand Co-Operative Housing Society, Juhu Versova Link Road, Andheri (West), Mumbai – 400 058, Maharashtra, India

Date of Appointment :

28.03.2015

DIN No.:

00107097

 

 

KEY EXECUTIVES

 

Name :

Venkatesh Ramanujam

Designation :

Chief Financial Officer

Address :

Flat No.1-A, AD-60, 4th Street, Anna Nagar, Chennai – 600 040, Tamilnadu, India

Date of Appointment :

01.05.2015

PAN No.:

AAKPV7342Q

 

 

Name :

Aradharaman

Designation :

Vice President, Chemical Plants and Systems

 

 

Name :

Mr. Ajay Jain

Designation :

General Manager Head - Proposals and Estimation

 

 

Name :

Alagappan A N

Designation :

General Manager (HCP) – UAE Operations

 

 

Name :

Ankurnaik

Designation :

Manager - Design and Engineering

 

 

Name :

Mr. Atul Sharma

Designation :

Head Business Development - HMDI, CIS and Africa (Cluster 3)

 

 

Name :

Chidambaram Ramasubramanian

Designation :

Chief F&A Officer Hydrocarbons-GCC

 

 

Name :

Curcino Richard John Gomes

Designation :

Head-Contracts

 

 

Name :

Darayas Kekubhappoo

Designation :

Senior Deputy General Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 12.08.2014

 

Names of Shareholders (Equity Shares)

 

 

No. of Shares

Larsen and Toubro Limited, India

 

1000049994

Subhodh Shetty jointly with Larsen and Toubro Limited, India

 

1

Ramamurthi Shankar Raman jointly with Larsen and Toubro Limited, India

 

1

Narayanaswamy Hariharan jointly with Larsen and Toubro Limited, India

 

1

Ramaswamy Govindan jointly with Larsen and Toubro Limited, India

 

1

Prasad Vishnu Shanbhag jointly with Larsen and Toubro Limited, India

 

1

Y.V.S. Sravankumar jointly with Larsen and Toubro Limited, India

 

1

Total

 

1000050000

 

Names of Shareholders (Preference Shares)

 

 

No. of Shares

Larsen and Toubro Limited, India

 

500000000

Total

 

500000000

 

AS ON 12.08.2014

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

99.99

Other top fifty shareholders

 

0.01

Total

 

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged into providing engineering services for the hydrocarbon sector. 

 

 

Products/ Services :

Item Code No.

 

Product/Service Description

99542909

General construction services of other civil engineering works n.e.c.

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

 

Selling :

Not Available

 

 

Purchasing :

Not Available

 

PRODUCTION STATUS: NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Payment Behaviour

Market Goodwill

Overall

Not Available

Not Available

Not Available

Remark:

Not Available

 

 

Customers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Maximum Limit Dealt :

Not Available

Experience :

Product Quality

Delivery Behaviour

Overall

Not Available

Not Available

Not Available

Remark:

Not Available

 

 

No. of Employees :

Not Available

 

 

Bankers :

Banker Name

The Hongkong and Shanghai Banking Corporation Limited

Branch Address

52/60, Mahatma Gandhi Road, Fort, Mumbai – 400 001, Maharashtra, India

Person Name (With Designation)

Not Available

Contact Number

Not Available

Name of Account Holder

Not Available

Account Number

Not Available

Account Since (Date/Year of Account Opening)

Not Available

Average Balance Maintained (If Possible)

Not Available

Credit Facilities Enjoyed (If any)

Not Available

Account Operation

Not Available

Remarks (If any)

Not Available

 

Kotak Mahindra Bank Limited, 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

SHORT-TERM BORROWINGS

 

 

Loans repayable on demand from banks

(Loans repayable on demand from banks include fund based working capital facilities viz. cash credits and demand loans. Working capital facilities and other non-fund based facilities viz. bank guarantees and letters of credit, are secured by hypothecation of inventories, book debts and receivables.)

1849.900

0.000

Other loans and advances

(Short term loans and advances from banks)

(Loans repayable on demand from banks include fund based working capital facilities viz. cash credits and demand loans. Working capital facilities and other non-fund based facilities viz. bank guarantees and letters of credit, are secured by hypothecation of inventories, book debts and receivables.)

898.700

0.000

Total

2748.600

0.000

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sharp and Tannan

Chartered Accountants

Address :

Ravindra Annexe, Churchgate Reclamation, Dinshaw Vachha Road, Mumbai – 400 020, Maharashtra, India

PAN N Income-tax PAN of auditor or auditor's firm :

AAAFS2967E

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Holding Company :

Larsen and Toubro Limited, India (CIN No.: L99999MH1946PLC004768)

 

 

Fellow Subsidiary Companies :

  • L&T Valves Limited, India (CIN No.: U74999MH1961PLC012188)
  • L&T - Gulf Private Limited, India (CIN No.: U74140MH2008PTC177765)
  • L&T Sapura Shipping Private Limited, India (CIN No.: U61100TN2010PTC077217)
  • L&T-Valdel Engineering Limited, India (CIN No.: U74210KA2004PLC035094) 
  • Ewac Alloys Limited, India (CIN No.: U74999MH1962PLC012315)
  • L&T-Sargent and Lundy Limited, India (CIN No.: U74210MH1995PLC088099)
  • L&T Special Steels and Heavy Forgings Private Limited, India (U27109MH2009PTC193699)
  • L&T Sapura Offshore Private Limited, India (CIN No.: U11200TN2010PTC077214)
  • Larsen and Toubro Electromech LLC, Oman
  • L&T Modular Fabrication Yard LLC, Oman
  • Larsen & Toubro Kuwait Construction General Contracting Company, WLL, Kuwait
  • Larsen & Toubro Heavy Engineering LLC, Oman
  • Larsen & Toubro International FZE, United Arab Emirates
  • Larsen & Toubro Atco Saudi LLC, Saudi Arabia
  • Larsen Toubro Arabia LLC, Saudi Arabia
  • L&T Electrical and Automation FZE, United Arab Emirates
  • L&T Shipbuilding Limited, India (CIN No.: U74900TN2007PLC065356)
  • L&T- MHPS Boilers Private Limited, India (CIN No.: U29119MH2006PTC165102)
  • Larsen & Toubro Saudi Arabia LLC, Saudi Arabia
  • L&T - MHPS Turbine Generators Private Limited, India (CIN No.: U31101MH2006PTC166541)
  • Larsen and Toubro Infotech Limited, India (CIN No.: U72900MH1996PLC104693)
  • L&T Hydrocarbon International LLC, United Arab Emirates
  • L&T Howden Private Limited, India (CIN No.: U31401MH2010PTC204403)
  • Larsen and Toubro (East Asia) SDN. BHD, Malaysia
  • L&T Geostructure LLP, India
  • L&T FinCorp Limited, India (CIN No.: U65910MH1997PLC108179)
  • PT TAMCO Indonesia, Indonesia
  • TAMCO Switchgear (Malaysia) SDN BHD, Malaysia

 

 

Joint Ventures :
  • Toyo Engineering Company Limited, India
  • Pipavav Defence And Offshore Engineering Company Limited, India (CIN No.: L35110GJ1997PLC033193)

 

 

CAPITAL STRUCTURE

 

AS ON 12.08.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000000

Equity Shares

Rs.10/- each

Rs.20000.000 million

1000000000

Preference Shares

Rs.10/- each

Rs.10000.000 million

 

Total

 

Rs.30000.000 million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1000050000

Equity Shares

Rs.10/- each

Rs.10000.500 million

500000000

Preference Shares

Rs.10/- each

Rs.5000.000 million

 

Total

 

Rs.15000.500 million

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

15000.500

0.500

0.500

(b) Reserves & Surplus

(194.100)

(0.100)

(0.058)

(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)

14806.400

0.400

0.442

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

2600.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

359.300

0.000

0.000

(d) Long-term provisions

109.300

0.000

0.000

Total Non-current Liabilities (3)

3068.600

0.000

0.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

7868.100

0.000

0.000

(b) Trade payables

27088.900

0.100

0.058

(c) Other current liabilities

9069.900

0.000

0.000

(d) Short-term provisions

837.100

0.000

0.000

Total Current Liabilities (4)

44864.000

0.100

0.058

 

 

 

 

TOTAL

62739.000

0.500

0.500

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

9176.000

0.000

0.000

(ii) Intangible Assets

19.800

0.000

0.000

(iii) Capital work-in-progress

251.300

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)

169.700

0.000

0.000

(d)  Long-term Loan and Advances

1081.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

10697.800

0.000

0.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

210.300

0.000

0.000

(c) Trade receivables

21746.600

0.000

0.000

(d) Cash and cash equivalents

1871.100

0.500

0.500

(e) Short-term loans and advances

7269.100

0.000

0.000

(f) Other current assets

20944.100

0.000

0.000

Total Current Assets

52041.200

0.500

0.500

 

 

 

 

TOTAL

62739.000

0.500

0.500

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from operations

87159.000

0.000

0.000

 

 

Other Income

8.900

0.000

0.000

 

 

TOTAL                                    

87167.900

0.000

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

31819.900

0.000

0.000

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

267.500

0.000

0.000

 

 

Employee benefit expense

6548.400

0.000

0.000

 

 

Other expenses

45473.700

0.000

0.014

 

 

TOTAL                                    

84109.500

0.000

0.014

 

 

 

 

 

Less

PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

3058.400

0.000

(0.014)

 

 

 

 

 

Less

FINANCIAL EXPENSES                                   

419.600

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

2638.800

0.000

(0.014)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

1000.500

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

1638.300

0.000

(0.014)

 

 

 

 

 

Less

TAX                                                                 

581.000

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

1057.300

0.000

(0.014)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

64311.000

0.000

0.000

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

0.97

0.00

(0.28)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

Net cash flows from (used in) operations

(690.100)

0.000

0.000

Net cash flows from (used in) operating activities

(1211.800)

0.000

0.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

1.21

0.00

0.00

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

3.51

0.00

0.00

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.63

0.00

(2.80)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.11

0.00

(0.03)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.71

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.16

5.00

8.62

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

0.500

0.500

15000.500

Reserves & Surplus

(0.058)

(0.100)

(194.100)

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

0.442

0.400

14806.400

 

 

 

 

Long-term borrowings

0.000

0.000

2600.000

Short term borrowings

0.000

0.000

7868.100

Total borrowings

0.000

0.000

10468.100

Debt/Equity ratio

0.000

0.000

0.707

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from operations

0.000

0.000

87159.000

 

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Revenue from operations

0.000

0.000

87159.000

Profit

(0.014)

0.000

1057.300

 

 

 

1.21%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity-Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

Yes

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

CHANGE IN NAME AND OBJECTS:

 

The Shareholders of the Company at their Extra-Ordinary General Meeting held on May 16, 2013 approved change in name of the Company from “L&T Technologies Limited” to “L&T Hydrocarbon Engineering Limited” and change in Objects of the Company in order to appropriately reflect the new business profile. During the year, the Hydrocarbon Business undertaking (“HC Undertaking”) of Larsen and Toubro Limited (L&T) was transferred to the Company with effect from 1 April 2013 (Appointed Date) pursuant to a Scheme of Arrangement approved by the Honourable Bombay High Court under Sections 391 to 394 of the Companies Act, 1956.

 

FINANCIAL RESULTS:

 

The financial results of the Company for the year include the results of HC undertaking from April 1, 2013 & hence are not comparable with those of previous year.

 

YEAR IN RETROSPECT:

 

The gross sales for the financial year were Rs.87370.300 million. The Profit before tax was Rs.1638.300 million and the Profit after tax was Rs.1057.300 million for the financial year. The profitability of the Company was adversely affected by cost over-runs in certain tightly bid international projects. Most of these projects were first of its kind with respect to size and scale, technical complexity, customer expectations and situated in remote geographic locations.

 

SCHEME OF ARRANGEMENT:

 

The Board of Directors of the Company at its Meeting held on May 22, 2013 approved a Scheme of Arrangement (the Scheme) between L&T and the Company and their respective Shareholders and Creditors.

 

As per the Scheme, the HC undertaking of L&T along with related assets, liabilities, specific identified reserves, employees, and other items specifically listed in the Scheme were vested and transferred to the Company on a going concern basis with effect from 1st April 2013 (Appointed Date).

 

The aforementioned Scheme was sanctioned by the Honourable Bombay High Court vide its order dated 20th December 2013 and it came into effect on 16th January 2014 (Effective Date).

 

The Scheme will enable the Company to achieve the following objectives:

 

1. Attracting and retaining domain intense talent.

2. Focused leadership and Management attention

3. Developing and strengthening competencies already built in the HC Undertaking

4. Creating a niche in the Hydrocarbon sector towards building a strong brand image.

5. Capitalizing on the global growth opportunities in Hydrocarbon sector.

6. Providing greater levels of empowerment to enhance competitiveness, increase accountability and strengthen performance culture.

7. Facilitating benchmarking with established global peers in the Hydrocarbon sector, thereby bringing in improved efficiency in its operations, enhanced competitiveness and accountability and strengthen performance culture.

 

 

UNSECURED LOAN

 

Particulars

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

LONG-TERM BORROWINGS

 

 

Loans and advances from related parties

(Inter Corporate borrowing from Holding Company, repayment due on 30th April 2015)

2600.000

0.000

SHORT-TERM BORROWINGS

 

 

Loans and advances from related parties

(Inter Corporate borrowing from Holding Company)

3397.000

0.000

Other loans and advances

(Short term loans and advances from banks)

1722.500

0.000

Total

7719.500

0.000

 

 

INDEX OF CHARGES:

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10570909

08/05/2015

12,000,000,000.00

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

52/60, MAHATMA GANDHI ROAD, FORT, MUMBAI – 400 001, MAHARASHTRA, INDIA

C54369772

2

10536140

10/12/2014

1,150,000,000.00

KOTAK MAHINDRA BANK LIMITED

27 BKC, C 27, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI – 400 051, MAHARASHTRA, INDIA

C36697381

 

 

CONTINGENT LIABILITIES:

 

PARTICULARS

31.03.2014

(Rs. in Million)

(a) Sales-tax liability that may arise in respect of matters in appeal

206.700

(b) Income-tax liability (including penalty) that may arise in respect of which the Company is in appeal

24.000

Total

230.700

 

 

FIXED ASSETS:

 

Tangible Assets

·         Land

·         Buildings

·         Plant and Equipments

·         Furniture and Fixtures         

·         Vehicles

·         Computer Equipments

·         Office Equipments

Intangible Assets

·         Computer Software

 

 

WEBSITE DETAILS:

 

PRESS RELEASES:

 

L&T HYDROCARBON ENGINEERING WINS ORDER VALUED RS.8940.000 MILLION

 

Mumbai, December 29, 2014:

 

L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of Larsen and Toubro, has bagged an offshore contract valued at Rs.8940.000 million from the Oil and Natural Gas Corporation (ONGC) for additional development of the Vasai East project.

 

The contract, won against international competitive bidding, includes total ‘EPCI’ solutions – Engineering, Procurement, Construction and Installation of two wellhead platforms, subsea pipelines and modification of existing facilities in Heera-Panna Bassein Block of Mumbai Offshore. The project, part of ONGC’s strategy to improve recovery factor of Vasai East field where production started in 2008, is scheduled to be completed by April 2016.

 

L&T has been serving the upstream hydrocarbon sector since the early ’90s. This contract reiterates the long term association of ONGC with L&T in the development of offshore fields in India. The Company’s offshore track record includes successful completion of several challenging projects for domestic and international clients.

 

LTHE provides complete ‘EPCI’ solutions for the offshore Oil and Gas industry. It combines customized engineering, procurement, fast-track project management and world-class fabrication, and sea installation capabilities meeting stringent timelines and conforming to global safety standards.

 

Background:

 

Larsen and Toubro is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services, with global operations. Its products and systems are marketed in over 30 countries worldwide. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over seven decades

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

FOREIGN EXCHANGE RATES

 

Currency

 
Unit

Indian Rupees

US Dollar

1

Rs.63.38

UK Pound

1

Rs.99.13

Euro

1

Rs.69.69    

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILITY

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

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

68

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.