MIRA INFORM REPORT
|
Report
Date : |
17th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
ABB
LIMITED |
|
|
|
|
Registered
Office : |
Khanija
Bhavan, 2nd Floor, East Wing, 49, Race Course Road, Bangalore –
560 001, Karnataka, India. |
|
|
|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.12.2005 |
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|
|
|
Date
of Incorporation : |
24.12.1949 |
|
|
|
|
Com.
Reg. No.: |
08-32923 |
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|
|
|
CIN
No: |
U32202KA2003PLC032923 |
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|
|
|
TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMA19181B |
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|
|
|
PAN
No.: (Permanent
Account No.) |
AAACA3834B |
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|
Legal
Form : |
Public Limited Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line
of Business : |
Manufacturing
of switchgears, pollution and environment control equipments and
motors/alternators/generators. It is also into manufacture of electrical
items such as motors, transformers, etc. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
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 |
|
Maximum
Credit Limit : |
USD
35000000 |
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|
|
|
Status
: |
Good |
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|
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|
Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established and reputed company of Brown Boveri Group. Available information indicates high
financial responsibility of the company.
Financial position of the company is good. Payments are always correct and as per commitments. The company’s can be considered good for business dealings
against usual trade terms and conditions.
|
LOCATIONS
|
Registered
Office : |
Khanija
Bhavan, 2nd Floor, East Wing, 49, Race Course Road, Bangalore –
560 001, Karnataka, India. |
|
Tel.
No.: |
91-80-22254546
/22250295/22254543 |
|
Fax
No.: |
91-80-22281103 |
|
E-Mail
: |
ashay.khandwala@in.abb.com |
|
Website
: |
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|
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|
Corporate
Office : |
Khanija
Bhavan, 2nd Floor, East Wing, 49, Race Course Road, Bangalore –
560 001, Karnataka, India |
|
Tel.
No.: |
91-80-22254546 /22250295/22254543 |
|
Fax
No.: |
91-80-22281103 |
|
|
|
|
Factory
1 : |
v
Nos.
5 & 6, Peenya Industrial Estate, Phase II, Bangalore - 560 058,
Karnataka, India v
P.
O. & Village Jalkhura, Budge Trunk Road, Maheshtala, District South 24
Paraganas - 743 352, West Bengal, India v
Plot
No. 22A, Shah Industrial Estate, Off Veera Desai Road, Andheri (West), Mumbai
- 400 053, Maharashtra, India v
Plot
No. 79, Street No. 17, MIDC Industrial Estate, Satpur, Nashik - 422 007,
Maharashtra, India v
Maneja,
Vadodara - 390 013, Gujarat, India v
32,
Industrial Area, Faridabad - 121 001, Haryana, India v Village Numbal, 110, Poonamalle
High Road, Chennai - 600 077, Tamil Nadu, India |
|
|
|
|
Marketing
and Service Center : |
Located
at : Chandigarh, Delhi, Jaipur, Udaipur, Vadodara, Mumbai,
Pune, Bangalore, Coimbatore, Kochi, Lucknow, Kanpur, Bhopal, Nagpur,
Hyderabad, Chennai, Vishakhapatnam, Bhubaneshwar, Kolkata and Jamshedpur. |
DIRECTORS
|
Name : |
Mr.
Dinesh Paliwal |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mr. Ravi
Uppal |
|
Designation
: |
Vice Chairman and Managing Director |
|
Age : |
49 years |
|
Qualification
: |
B.Tech (Electrical & Electronics), M.B.A. |
|
Experience
: |
27 years |
|
Date
of Appointment : |
01.10.2001 |
|
Previous Employment : |
Volvo India Private Limited – Managing Director |
|
|
|
|
Name : |
Biplab Majumder |
|
Designation
: |
Executive Director (w.e.f. 24/01/2006) |
|
|
|
|
Name : |
Mr. N. S.
Raghavan |
|
Designation
: |
Director |
|
|
|
|
Name : |
D E Udwadia |
|
Designation
: |
Director (w.e.f. 21/07/2005) |
|
|
|
|
Name : |
K Sridhar |
|
Designation
: |
Director
(w.e.f. 21/07/2005) |
|
|
|
|
Name : |
Mr.
Nasser Munjee |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Umesh
Prasad Singh |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Peter
Smits |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. Tom
E. Sjoekvist |
|
Designation
: |
Director |
|
|
|
|
Name : |
Bernhard Jucker |
|
Designation
: |
Director (w.e.f. 24/01/2006) |
|
|
|
|
Name : |
Mr. Peter
Leupp |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. R. N.
Bharadwaj |
|
Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr. B.
Gururaj |
|
Designation
: |
Company Secretary |
|
|
|
|
MANAGEMENT
COMMITTEE : |
|
|
|
|
|
Mr. I. K.
Sadhu |
Power Technologies – Systems |
|
Age |
58 years |
|
Qualification |
B. Sc. (Engineering) |
|
Experience |
38 years |
|
Previous
Employment |
Bharat Heavy Electrical Limited (Commercial
Engineer) |
|
|
|
|
Ravi Uppal |
Corporate Management Committee |
|
Mr.
Amresh Dhawan |
Power Technologies – Products |
|
K
Rajagopal |
Corporate Management Committee |
|
Mr.
Biplab Majumder |
Automation Technologies |
|
Mr. Bazmi
Husain |
Automation – Control Platform Products and
Research and Development |
|
Mr. V.
Swamy |
Building Systems and Group Service Centre |
|
S Karun |
Corporate Management Committee |
|
Mr. P. P.
Gomes |
National Service Organization |
|
Mr. K. S.
S. Rajan |
Marketing |
|
K.
Rajagopalan |
Finance |
|
Mr. P. C.
Rajiv |
Human Resources |
|
Prakash
Kanagalekar |
Corporate Management Committee |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
ABB Asea
Brown Boveri Limited, Zurich & ABB Flakt AB, Sweden |
2,20,84,057 |
52.11 |
|
NRIs /
OCBs |
53885 |
0.13 |
|
Directors
and their relatives |
472 |
0.00 |
|
LIC / UTI
/ Other Insurance Companies |
5949298 |
14.04 |
|
Nationalised
Banks / Other Banks |
99288 |
0.23 |
|
Mutual
Funds |
1842558 |
4.35 |
|
Foreign
Institutional Investors |
6849582 |
16.16 |
|
General
Public |
5502535 |
12.98 |
|
TOTAL |
42381675 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing
of switchgears, pollution and environment control equipments and
motors/alternators/generators. It is also into manufacture of electrical
items such as motors, transformers, etc. |
|
|
|
|
Exports
to : |
Asia
Pacific, Europe, Germany, Middle East, South America, Sweden and UK. |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Motors/Alternators/Generators
upto 20 MW |
HP |
1464945 |
1322348 |
|
Switchgear
of all types |
Nos. |
4174000 |
4150963 |
|
PLCC
Equipment |
Nos. |
2850 |
1058 |
|
Measurand
Convertors |
Nos. |
-- |
-- |
|
Multiplexures |
Nos. |
100 |
66 |
|
Telemetering
Equipments |
Nos. |
150 |
26 |
|
Turbochargers |
Nos. |
200 |
138 |
|
Power
Transformers |
MVA |
10000 |
5555 |
|
Electronic
Control and Supply Units for Variable Speed Drivers and other applications |
Nos. |
70000 |
55235 |
|
Mini
Computer/Microprocessor based Systems |
Value Rs. in ‘000 |
1000000 |
999564 |
|
Non-Microprocessor
Based Electronics (Analog and Digital) for Weighing, Batching and Force
Measuring Systems and Sub Systems |
Value Rs. in ‘000 |
70000 |
36670 |
|
Power
Capacitors of all types |
MVAR |
3700 |
2810 |
|
Robotics |
Nos. |
15 |
1 |
|
Control
Valves |
Nos. |
-- |
-- |
|
Gas
Analysers and Systems |
Nos. |
300 |
184 |
|
Process
Control Instruments |
Nos. |
24975 |
22391 |
GENERAL INFORMATION
|
No. of
Employees : |
3,200 |
|
|
|
|
Bankers
: |
v ICICI
Bank Limited v Canara
Bank v IDBI Bank
Limited v HDFC Bank
Limited v Hongkong
and Shanghai Banking Corporation Limited v Union
Bank of India v Standard
Chartered Bank |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
S. R.
Batliboi & Company Chartered
Accountants |
|
|
|
|
Associates
: |
v
ABB
(China) Engineering Company Limited, China v
ABB
(HongKong) Limited v
ABB (Pty)
Limited, Southern Africa v
ABB
A/S, Skovlunde, Danmark v
ABB
AG, Austria v
ABB
AS, Automation Technology Products, Norway v
ABB
AS, Tallinn v
ABB
Asia Pacific Services Limited, Hong Kong v
ABB
Assist AB, Sweden v
ABB
Australia Pty Limited v
ABB
Automation Company Limited, Saudi Arabia v
ABB
Automation E. C., Bahrain v
ABB
Automation Inc, U.S.A. v
ABB
Automation Products, Germany v
ABB
Automation Technology Products, AB v
ABB
Beijing Drive Systems Company Limited v
ABB
Business Centre, Switzerland v
ABB
Calor Emag Hochspannung GmbH v
ABB
Capacitors AB, Sweden v
ABB
Capital BV, Amesterdam v
ABB
Control Valves Inc. U.S.A. v
ABB
Control, Siege Social, France v
ABB
Corporate Management Services AG, Switzerland v
ABB
Distribution Limited, Thailand v
ABB
EJF S.R.O. v
ABB
Electrical Company S. A. L., Lebanon v
ABB
Electrik Sanayi A.S., Turkey v
ABB
Energy Automation S. P. A., UAE v
ABB
Energy Engineering AG v
ABB
Engineering Technologies Company, Kuwait v
ABB
Eutech Limited, U.K. v
ABB
Group Process Limited, Zurich v
ABB
Group Services Center S.A.E., Egypt v
ABB
High Voltage Company S.A.E., Egypt v
ABB
Hochspannungstechnik, Zurich v
ABB
Holdings (South Asia) Limited v
ABB
HongKong Limited |
|
|
|
|
Membership
: |
Confederation
of Indian Industry |
|
|
|
|
Parent
Company : |
ABB Asea
Brown Boveri Limited, Zurich |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
42500000 |
Equity
Shares |
Rs. 10 each |
Rs. 425.000 millions |
|
750000 |
11%
Redeemable 10 year, Cumulative Preference Shares |
Rs. 100 Each |
Rs. 75.000 millions |
|
|
TOTAL |
|
Rs. 500.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
42381675 |
Equity
Shares |
Rs. 10 each |
Rs.423.817 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
423.817 |
423.817 |
423.800 |
|
|
3]
Reserves & Surplus |
8617.462 |
6822.800 |
5617.700 |
|
NETWORTH
|
9041.279 |
7246.617 |
6041.500 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
26.957 |
14.312 |
29.600 |
|
|
2]
Unsecured Loans |
0.310 |
0.620 |
71.400 |
|
TOTAL
BORROWING
|
27.267 |
14.932 |
101.000 |
|
|
DEFERRED
TAX LIABILITIES |
84.271 |
132.271 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
9152.817 |
7393.820 |
6142.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
2266.611 |
1900.047 |
1597.400 |
|
Capital work-in-progress
|
384.239 |
49.296 |
102.700 |
|
|
|
|
|
|
|
INVESTMENT
|
871.503 |
1069.669 |
585.900 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
2015.803
|
1682.855 |
1118.000 |
|
|
Sundry Debtors
|
10292.566
|
6263.322 |
4695.800 |
|
|
Cash & Bank Balances
|
4009.654
|
4167.509 |
2806.600 |
|
|
Loans & Advances
|
2278.328
|
887.033 |
990.100 |
|
|
Other current Assets
|
1274.843
|
1063.106 |
0.000 |
Total Current Assets
|
19871.194 |
14063.825 |
12007.700 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
13728.741
|
9279.280 |
5817.100 |
|
|
Provisions
|
511.989
|
409.737 |
303.700 |
Total Current Liabilities
|
14240.730 |
9689.017 |
8151.200 |
|
Net
Current Assets
|
5630.464 |
4374.808 |
3856.500 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
9152.817 |
7393.820 |
6142.500 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
Sales Turnover [including other income]
|
30141.383 |
23055.716 |
15170.300 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
3394.770 |
2403.191 |
1761.900 |
Provision for Taxation
|
763.076 |
860.000 |
520.000 |
Profit/(Loss) After Tax
|
2186.770 |
1543.191 |
1241.900 |
|
|
|
|
|
Export Value
|
2631.694 |
3184.556 |
3657.133 |
|
|
|
|
|
Import Value
|
6862.943 |
6195.666 |
3599.323 |
|
|
|
|
|
Total Expenditure
|
26746.613 |
20690.516 |
13408.400 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
31.03.2006 (1st Qtr.) |
|
Sales Turnover |
|
|
8029.100 |
|
Other Income |
|
|
179.500 |
|
Total
Income |
|
|
8208.600 |
|
Total Expenditure |
|
|
7334.600 |
|
Operating profit |
|
|
874.000 |
|
Interest |
|
|
01.900 |
|
Gross Profit |
|
|
872.100 |
|
Depreciation |
|
|
62.100 |
|
Tax |
|
|
280.000 |
|
Reported Profit After Tax |
|
|
513.000 |
200603 Quarter 1 :
Expenditure Includes
(Increase) / Decrease in Stock in Trade Rs (465.619) million Consumption of
Materials & Rs 6333.467 million Costs of Erection Services Personnel
expenses Rs 555.111 million Other expenditure Rs 911.646 million Tax Includes
Provision for Current Tax Rs 260.00 million Deferred Tax Rs 17.00 million
Fringe Benefit Tax Rs 20.00 million EPS is Basic and Diluted Status of
Investors Complaints for the quarter ended March 31, 2006 Complaints pending at
the beginning of the quarter NIL Complaints received during the quarter 85
Complaints disposed off during the quarter 85 Complaints unresolved at the end
of the quarter NIL 1. This statement has been taken on record at the meeting of
the Board of Directors of the Company held on April 25, 2006. 2. The Board of
Directors of the Company have recommended a dividend of Rs 8.00 per equity
share of Rs 10 each for the year ended on December 31, 2005. 3. In line with
Companys new organization structure, segment disclosure have been revised with
effect from January 01, 2006. 4. The auditors have conducted a Limited Review
of the above financial result for the quarter ended March 31, 2006. 5. The
figures of the previous year/periods have been regrouped/reclassified, wherever
necessary.
KEY
RATIOS
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
Debt Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Long Term Debt Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Current Ratio |
1.40 |
1.45 |
1.51 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
8.63 |
7.63 |
5.16 |
|
Inventory |
17.30 |
16.76 |
12.48 |
|
Debtors |
3.87 |
4.21 |
2.90 |
|
Interest Cover Ratio |
26.33 |
35.28 |
34.37 |
|
Operating Profit Margin (%) |
11.75 |
10.94 |
13.61 |
|
Profit Before Interest and Tax Margin (%) |
11.03 |
10.11 |
12.36 |
|
Cash Profit Margin (%) |
7.56 |
7.14 |
9.71 |
|
Adjusted Net Profit Margin (%) |
6.83 |
6.31 |
8.46 |
|
Return on Capital Employed (%) |
44.04 |
37.78 |
32.78 |
|
Return on Net Worth (%) |
27.36 |
23.78 |
22.90 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.2590/- |
|
Low |
Rs.2525/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY :
Subject was
engaged in the manufacture of electrical items such as motors, transformers,
etc. It entered into a technical collaboration with Brown Boveri and Company,
Switzerland, in 1962, as a result of which, the company acquired the name
Hindustan Brown Boveri, Asea, incorporated in 1950 as Asea Electric India
Private Limited, had a collaboration with Asea, Sweden. As a result of the
merger of Asea, Sweden, and BBC Brown Boveri, Switzerland, in 1988, the foreign
collaborators of Asea and Hindustan Brown Boveri, the Indian companies were
amalgamated under the name Asea Brown Boveri. During 2003, the name of the
company was changed from Asea Brown Boveri Limited to the present name.
The
collaborator ABB Asia Brown Boveri, Zurich, Switzerland, holds 44.94% stake and
Flakt AB, Sweden a group company holds 6.06% in the company. ABB manufactures a
wide range of electrical, mechanical and electronic equipment and executes
projects for power generation, transmission and electrification.
Subject had
been in the railway transportation business manufacturing components of
electric locomotives for many years.
ABB Group and Daimler-Benz, Germany had merged their transportation
activities world-wide with effect from January, 1996 by forming a joint venture
company. A new company - ABB
Daimler-Benz Transportation (India) Limited had been incorporated for the above
purpose.
The company
is having eight manufacturing facilities, twenty six marketing offices, eight
service centres and developed a national network of 400 channel partners, to
ensure deeper market penetration. All its manufacturing facilities are ISO
14001 certified units.
In 1999,
the company demerged and transferred its power generation business to Asia
Brown Boveri Management Limited and its' name changed to ABB Alstom Power India
Limited.
In 1999-2000,
the company obtained ISO 14001 Certificate for its manufacturing units at
Peenya and Andheri. The company had
merged its four subsidiaries, ABB Instrumentation, ABB Analytical, ABB Lenzohm
Service and Introl (India) with itself with effect from 1st April,
2001 to enable it to serve its
customers in a more focused manner and help it streamline its operations.
The
company’s Group is selling their Air Handling equipment business worldwide to
Global Air Movement (Luxemburg) SARL.
This sale also includes the Fans Business (a part of the Air Handling
equipment portfolio) which is represented in India and accounts for
approximately 3% of the company's turnover. The Automation Technology
Products-Division has commissioned 70 KA rectifier unit for HINDALCO and this
division has launched e-Service and full featured e-Commerce website for its
products.
The company
has divested its business from Air handling equipment and the proceedings were
invested in Bonds of Rural Electrification Corporation Limited to the extent of
Rs. 215 millions. The total amount realised from divestment of Air handling
equipment business were Rs. 295 millions.
BUSINESS :
Subject is
engaged in manufacturing of switchgears, pollution and environment control
equipments and motors / alternators / generators.
Subject
also manufactures a wide range of electrical, mechanical and electronic
equipment and executes projects for power generation, transmission and
electrification.
The subject
is also engaged in the manufacture of electrical items such as motors,
transformers, etc.
Generic
Names of the Principal Products of the company are :
Item Code No. |
Product Description |
|
85.35 |
Switchgears
of all types |
|
85.04 |
Electronic
Control and Supply Units for Variable Speed Drives and other applications |
|
85.01 |
Motors /
Alternators / Generators upto 20 MW |
The company
is in trade terms with :
v
A. K.
Engineering
v
Abhay
Engineering Industries
v
Accutech
Auto Private Limited
v
Adept
Fluidyne Private Limited
v
Advance
Electronics Systems
v
Advance
Engineering – Fab. Industries
v
Aero
Pack Corporation
v
Agate
Electrofab Engineering Private Limited
v
Excel
Engineering Private Limited
v
Monal
Equipment Engineers Private Limited
v
Empkee
Engineers (Private) Limited
v
Diamond
Engineering (Chennai) Private Limited
v
Dhananjay
Metal Industries Private Limited
v
Electronic
Relays India Private Limited
v
Sri
Ganesh Switchgears Private Limited
v
Specialised
Components Private Limited
v
Sealvel
Rubber Products Private Limited
v
R. C.
Das Engineering Private Limited
v
Vim
Sun Gears Private Limited
v
Elcot
v
F. S.
Engineers
v
Garda
Tools
The company
has collaboration with the following:
v
ABB
Automation AB, Sweden
v
ABB
Capacitors AB, Sweden
v
ABB
Distribution AB, Sweden
v
ABB
Drives AB, Sweden
v
ABB
High Voltage Cables AB, Sweden
v
ABB HV
Switchgear AB, Sweden
v
ABB
Relays AB, Sweden
v
ASEA
AB, Sweden
The
company’s fixed assets of important value include freehold land, leasehold
land, leasehold improvements, factory buildings, residential quarters, plant
& machinery, furniture & fixtures, vehicles and capitalised software.
Dividend
Your Directors recommend
payment of a dividend at the rate of Rs.8 (previous year Rs 7.00) per equity
share for the year ended December 31, 2005 on 42,381,675 equity shares of Rs.10
each.
Performance
Review
Orders
received during the year at Rs 37,645 million were 45% higher compared to Rs
25,878 million in the previous year. Orders backlog at the end of 2005 was
healthy at Rs 21,032 million compared to Rs 13,356 at the end of previous year.
Sales and other income for the year were higher by 31% at Rs30,141 million
compared to Rs 23,056 million in the previous year. Profit before tax and
exceptional item was significantly higher at Rs 3,395 million compared to Rs
2,365 million in the previous year. Growth in profit was mainly attributable to
volume growth, operational efficiencies and higher interest income from short
and long term investments.
Profit
after tax at Rs 2,187 million for the year has improved by 42% compared to Rs
1,543 million in the previous year. Earning per equity share of face value of
Rs 10 correspondingly improved to Rs 51.60 compared to Rs 36.41 in the previous
year.
Operating
performance of both the core segments, power technologies and automation
technologies was significantly better than previous year. For detailed analysis
of the performance, please refer to management's discussion and analysis
section of the annual report.
Divestment
of Business
As approved by the shareholders earlier, the Company has divested its Control
Valves business to Kent Introl Private Limited on 12 July, 2004. The gain on
divestment was Rs 38 million reported as profit on sale of undertaking in
profit and loss account as an exceptional item. The Company has invested the
gain in specified assets as per the provisions of Section 54EC of the Income
Tax Act, 1961. Accordingly no tax liability arises on this gain.
CHANGE OF NAME AND REGISTERED OFFICE OF THE COMPANY :
The name of the Company was changed from Asea Brown Boveri
Limited to ABB Limited with effect from 16 April, 2003 and the Registered
Office of the Company was shifted from Mumbai to Bangalore with effect from 27
November, 2003
Future plan of action :
Continuous efforts are being made for integration of R&D activities with
business needs so as to offer better value added products and services to our
customers. The areas of efforts include:
Universal speech interface and multiplexer for carrier communication equipment,
development of new foil and film for power capacitors, design improvements for
SSX and VHXm relays, time lag relays for diesel locomotives, 12kV auto
reclosure, 36kV air switch, forced cooling arrangement for VSD motors, oil
immersed type fuse and internal breaker for transformers, higher ratings of
STATCONs, LTB 245 E1 breaker certification for introduction in local markets,
flame proof motors in frames JHX90, JHX80 & JHX180, 2 pole ratings of frame
M2BA400L, enhanced ratings of M3BP280 frame of M3000 series motors, improved
12kV switchgear cubicle, numeric relay platforms, 66kV and 132kV CTs with casted
terminal blocks and 145kV and 72.5 kV GOB type transformer bushing with 500
BCT.
Operating Results of the Company
During
the year 2005, the Company secured orders worth Rs 37,645 million, 45 per cent
higher than the previous year's orders of Rs 25,878 million. The core business
segments of the Company i.e. Power Technologies and Automation Technologies,
both posted significant growth during the year, supported by continued power
sector reforms and increased momentum in the industrial sector. The product
business grew substantially and the company added capacity
across
locations. While maximising domestic market presence, the company's export
performance was also encouraging. As a result of healthy order intake, the
company's order backlog was further augmented by 57 per cent to Rs 21,032
million as compared to Rs 13,356 million at the beginning of the year. The
Company posted a strong top-line performance with revenues of Rs 30,141 million
for the year, registering a growth of 31 per cent over the previous year. The
Company's strategic initiatives aimed at market penetration and range expansion
continued to yield results, both in terms of existing businesses as well as
enhanced contribution of new revenue streams. Profit before tax and exceptional
items was Rs 3,395 million as compared to Rs 2,365 million the previous year.
Volume growth, operational efficiencies and higher financial income resulted in
this healthy profit improvement.
Net profit
after tax at Rs 2,187 million for the year was 42 per cent higher than last
year. Earnings per equity share (face value Rs 10) was also significantly
higher at Rs 51.60 compared to Rs 36.41 in the previous year. The Company
carried out significant expansion of manufacturing capacities and continued to
expand its range of offering, introducing several new products during the year.
In addition to capacity and range expansion, the Company also upgraded and
modernised many of its manufacturing and office facilities in
order to
enhance efficiency and productivity.
Outlook for
the Company
With
India's economic growth gathering pace, increased focus on power sector
investments for generation, transmission and distribution and resurgence of
several core industrial sectors, the domestic market presents several
opportunities. The Company is well positioned to further strengthen its
leadership position in most of the power and automation businesses.it
represents. Moreover, the Group remains committed to increasingly leverage the
Indian operations for projects, products and services within the region and
globally. In line with this strategy, the Company will continue to grow its
core businesses, expand its portfolio and augment manufacturing and engineering
capacities as required. The Company remains steadfast in its objective to
pursue the path of profitable and sustainable growth, maximising operational
efficiencies and striving to attain the highest standards of quality and
productivity. The overall outlook for the Company continues to be positive and
the Management remains optimistic with regards to continued growth.
Business
Segment Analysis:
ABB is a global leader in power and automation technologies that enable
utility and industry, customers to improve performance while lowering
environmental impact. The Company's portfolio includes products, systems and
service solutions offered through its two core segments i.e Power Technologies
Segment (PT) and Automation Technologies Segment (AT). The distribution of
revenues is as under.
2005 2004
Power Technologies 62% 60%Automatic, Technologies 38% 40%
Power Technologies Segment (PT)
The summarized performance of the segment is as under. (Rs. in Millions)
2005 2004
Orders Received 23,916 17,119Order Backlog 15,503 10,523Revenues 18,762
14,008Result 1,943 1,377
The year 2005 saw continued buoyancy in the market for Power systems and
products. Government locus on power capacity addition, improved grid
reliability and efficiency, reduction of transmission and distribution losses,
augmentation of national grid and rural electrification continues to support
the Company's grown in the power technologies segment during the year.
Investments in the power distribution sector continued boosting the demand for
medium voltage and distribution automation products, distribution transformers
etc HV products and power transformers also saw increased demand as substation
activity picked up, across states.
Orders received by this segment grew by 40 per cent and revenues were
higher by 34 per cent. The National Electricity Policy focuses on reliable,
affordable and quality power for all by the year 2012. In 2005, the central
Government also launched the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
for building the rural power infrastructure.
Some significant orders received during the year included an APDRP
project from JVVNL for a feeder renovation program; from PVVNL/MVVNL for RGGVY
projects and from BESCOM for Rural Load Management Systems. The segment also
received orders for transmission and distribution substations from PGCIL to
deliver turnkey solutions for 400 kV substations. NTPC placed orders on the
Company for up gradation of control and instrumentation at their Farakka,
Singrauli and Vindhyachal thermal power stations and Enercon placed orders for
wind farm distribution substations. Several significant power product orders
were also received during the year including an order for revamping of 12 Nos
33 kV substations from UPPCL and from NTPC for the Bahr Super Thermal Power
Station far 11 kV and 3.3 kV indoor switchgear.
Major projects executed during the year, included 400 kV substations at
Vapi, Boisar, Narendra and Rihand for PGCIL as well as APDRP Projects of Bescom
and Hescom. The Company also supplied a state-of-the-art substation automation
system based on REX 670 platform with IEC 61850 protocol for two 400 kV
substations of PGCIL -a global first for ABB. During the year, the 500 MW back
to back HVDC vizag project for PGGIL was successfully commissioned.
Electrification and control systems, including a SCADA solution was provided
for the recently inaugurated Delhi Metro's prestigious extension project
covering 23 KM section between Berekhemba to Dwarka. The first 400 KV/220 kV,
315 MVA auto-transformer was also commissioned in Andhra Pradesh.
A new power transformers insulation kit manufacturing facility was
commissioned in Helol, Gujarat, during the year. A new manufacturing facility
was also established for Ring Main Units to help meet growing market needs.
Several new products like auto-reclosers; air break switches and pole mounted
capacitor switches were also launched during the year. Manufacturing capacities
were enhanced for several power technology products, to meet rising
demand.
During the year, the Power Technologies R&D centre participated in
several global product development projects. This centre has been given lead
responsibility for development of a specified range of distribution automation
relays.
Despite favourable market conditions and drive level, profitability, remained
under pressure due to continuous increase in prices of input materials and
active competition. Some domestic competitors are extending their reach and
entering new areas as well as augmenting their manufacturing and engineering
capabilities.
To strengthen its domestic position and strengthen its international
presence, several strategic initiatives are underway. This includes
strengthening of project execution and management processes, power plant
solutions offering, augmentation of manufacturing capacities and range
expansion as well as a continued focus on operational excellence and cost base
optimization.
Automation Technologies Segment (AT)
The summarized performance of the segment is as under.
(Rs. in Millions) 2005 2004
Orders Received 14,297 8,932Order Backlog 5,508 2,903Revenues 11,655
9,205Result 1,387 957
During the year, industrial climate in India remained buoyant with strong
growth across many core sectors coupled with investments in infrastructure
projects. Active sectors included ferrous & non-ferrous metals, pulp and
paper, oil, gas & petrochemicals pharmaceuticals etc. A positive market
environment coupled with a strategic thrust on range expansion and market
penetration helped the Company achieve significant growth of 60 percent in
orders and 27 per cent in revenues, as compared with the previous year.
Major orders received during the year included an order for the newly
launched 800 XA system from Reliance Industries; for refining applications from
Essar; a blast furnace automation solution in Nigeria for Ispat group; supply
of electric and automation solutions for a compact cold mill from the Jindal
group; 2 X 90 KA rectifier order from Hindalco and MV drives for Kirloskar
Brothers for a large water project.
Execution and commissioning of large projects during the year included a
TISCO rebar mill, 17 km long belt conveyer for Lafarge Cement, Bangladesh
automation system on foundation field bus technology for Reliance Industries'
Patelganga plant.
In line with the Company's strategic thrust on market penetration and
range expansion, during the year revenues from standard products grew by over
50 per cent and significantly contributed to profitability of the segment.
Major capacity expansion projects under execution include motors, low voltage
products as well as distribution electricals and electrical wiring accessories.
Product range expansion during the year included ACS 550 drives,'A' range
Contactors and to AG 50 PLC among others.
The channel partner network was further expanded to over 530 during the
year and 'e'-initiatives continued to yield good results. A Channel Business
team has bean put in place to provide dedicated focus to the Company's fast
growing channel business.
A global automation operations and engineering centre was also
established during the year in Bangalore to provide engineering and systems
support to ABB Group operations across the world.
Increasing per capita consumption of steel, non-ferrous metals , paper
and several other basic commodities, building activity and infrastructure
development global aspirations, increased focus on quality, productivity,
efficiency and aesthetics are some of the factors that call for increased
leveraging of automation technologies and auger well for the Company's process
automation as well as products business i.e, HV machines, LV motors, drives, LV
Switchgear & control-gear instrumentation and analytic etc.
In addition to its continued focus on turnkey automation solutions for
the growing domestic industrial sector, the segment plans to continue with its
product and service thrust with ongoing initiatives for market penetration,
capacity and range expansion, product indigenisation, focus on operational
excellence. Domestic growth will also be supported by increased focus on
regional and global contribution. The Company continues to remain customer
focused to sustain its competitive advantage through constant innovation and
technology development.
The overall outlook for the segment is positive and the Company a
optimistic on continued growth.
Building System
Building System business providing integrated building management
solutions covering lighting, networking, heating, ventilation, air
conditioning, electrical installations, energy management fire alarm,
protection system and other building facilities and solutions to various
customers across the sectors, included in under PT and AT segments, performed
extremely well during the year. Significant activities were seen in the areas
of shopping malls, multiplexes, IT & biotech parks, pharma health care,
corporate buildings. etc, Major orders received during the year includes from
Wipro Technologies, Maruti Udyog, DMRC and South City. Several naw customers
were added during the year. Significant technology developments included
installation of thermal energy storage and heat recovery system resulting in
energy savings for customers. Expected foreign direct investment in real
estate, growth in air traffic and retail sectors will see further investments
taking in the building sector.
Finance
The Company continued to focus on endorsing its working capital, which
resulted in a further improvement in the cash position. Net cash position (cash
and bank balances less loan fund) at the end of the year had significantly
increased to Rs 4,036 million compared to Rs 2,144 million at the end of the
previous year, after adjusting for effect of factorization arrangement in the
previous year. Surplus funds, not committed to operations, were deployed in
Government securities, tax free bonds and short term fixed deposits with
reputed banks, ensuring security and liquidity. The expenditure of Rs 903
million, on fixed assets, during the year was fully financed from internal
accruals. Net financial income during the year was Rs 166 million (previous
year Rs 143 million) including income from certain interest arbitrage actions.
Foreign exchange management, obtaining of guarantees from banks and certain
payment disbursements processes were optimized and automated in collaboration
with Company's bankers.
PRESS RELEASES :
ABB to set up engg centre in B’lore
BANGALORE, DHNS:
ABB,
the leading power and automation technology group, announced its decision to
establish a dedicated engineering and operations centre in Bangalore.
The new facility will be managed by the Group's Indian subsidiary and will
serve as a vital resource base for ABB units across the world, according to a
press release issued here on Wednesday.
The Centre’s main scope of operations will include the development and
execution of system and engineering solutions to support automation activities
across the ABB group.
This centre will enable ABB to further leverage the intellectual capital,
technical skills and competitive cost structure offered by India, for the
combined benefit of the group, said the press release.
The new engineering and operations centre, expected to be established in early
2005, will initially target a phased build up to around 500 man-years of
engineering and systems support to other ABB operations, over the next few
years. The centre will focus on activities including project-based engineering
services, material cost migration to high-productivity countries, enabling
systems for supply chain management and information technology, as well as
development projects.
A multinational team from ABB's automation business will facilitate exchange of
technology between the new centre and other ABB units as well as help foster
best practices.
ABB India maintains strong growth momentum with
record orders
2006 Q1 Orders up 57 % ; Revenues
up 32 % ; Net Profit up 87 %
Bangalore, 25h April, 2006
The statutory results are enclosed – comparison of
business is as follows:
|
|
Q1, 2006 |
Q1, 2005 |
% chg |
|
Orders |
14019 |
8940 |
57 |
|
Revenues |
8209 |
6196 |
32 |
|
Profit before tax |
810 |
433 |
87 |
|
Profit after tax |
513 |
275 |
87 |
|
Earnings per equity share - Rs. |
12.11 |
6.49 |
87 |
Figs. in Rs. million unless stated otherwise
Orders
The company booked a record order intake of 14019 MINR during the quarter
ending 31st March 2006, a growth of 57 per cent over 2005Q1. Significant orders
were received from power utilities, especially for rural electrification and
substation projects as well as distribution products and solutions. The company
also won several turnkey orders for automation solutions from leading industry
customers. Continued growth in standard products also contributed to the strong
order intake during the quarter.
“Ongoing power sector reforms, emphasis on rural electrification and focus on
distribution system improvements continue to drive the growth of our power
business. At the same time, our state-of-the-art automation solutions are
helping industrial customers to enhance their global competitiveness, as Indian
industry continues to invest in capacity, productivity, efficiency and quality”
said Mr. Ravi Uppal, Vice Chairman and Managing Director, ABB India presenting
the company’s first quarter results. “We have succeeded in sustaining our
growth momentum on a rising base, helped by a strong order momentum and our
focus on operational efficiencies”, he added.
The company continued with its capacity and range expansion programme,
inaugurating a low voltage motors and control-gear plant in Bangalore and
announcing a new low voltage distribution electricals unit, to be set up in
Haridwar.
Order Backlog
The Company further strengthened its order backlog to 26743 MINR as compared to
21032 MINR at the beginning of the year and 15846 MINR as at 2005 Q1. This
should be reflected in higher revenues during the coming quarters.
Revenues
Revenues for the quarter at 8209 MINR were up by 32 per cent compared with 2005
Q1, facilitated by conversion of a strong order backlog as well as higher order
intake and increased standard products and service business.
Net Profit
Net profit after tax at 513 MINR was 87 per cent higher than the first quarter
of 2005, mainly resulting from the increase in revenues, keeping material costs
in check and operational efficiencies.
ABB (www.abb.com) is a leader in power
and automation technologies that enable utility and industry customers to
improve performance while lowering environmental impact. The ABB Group of
companies operates in around 100 countries and employs about 103,000 people.
ABB receives Star MNC award in India
2006-04-20
ABB has
been rated as the STAR MNC 2005 by Business Standard, one of India’s leading
financial dailies and an associate of Financial Times, London. ABB won this
award amidst stiff competition among hundreds of well known MNCs across the
industry spectrum, including many household names from the FMCG & consumer
space. Ravi Uppal, VC, MD & Country Manager ABB India, received the
prestigious award from India’s Union Finance Minister PC Chidambaram at a
glittering function held in Mumbai.
"As a
pioneer of the ‘think global – act local’ philosophy, ABB is a global leader
operating in more than 100 countries and is very much ‘at home everywhere’.
Diversity and multiculturalism are embedded in the company’s basic culture and
business approach, regardless of where we operate. In fact,
to drive home this point, ABB is
moving away from the Made in India, Made in USA ideology to a ‘Made in ABB’
philosophy – a true indicator of globalization in an increasingly borderless
and networked world. ABB has a long and rich history in this country spanning
several decades. We have grown with India and are extremely proud of our
heritage and track record. ABB has been a pioneer when it comes to introducing
innovative, cutting edge technologies that are bringing power to the people and
automation solutions that are helping Indian industry to be globally
competitive. This is our ongoing commitment and we shall continue to honour it
with pride”, said Ravi Uppal in his acceptance speech.
In his
eloquent and address, Finance Minister P.Chidambaram, lauded the spirit of
entrepreneurship and commended the achievement of the winners. “As we honour
India’s ‘Best of the Best’ it is time for corporate India to benchmark global
leaders, in an increasingly competitive world. The Indian government is
committed to continue on the path of reforms
and
the building of the Indian economy must continue uninterrupted” he said. “The
world beckons India and you must face globalisation head on. We are destined to
play a leading role in the emerging global economy, going forward and corporate
India must show the way”, he added.
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. 45.92 |
|
UK Pound |
1 |
Rs. 84.76 |
|
Euro |
1 |
Rs. 57.95 |
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 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
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 |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |