Attachment 1
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Report
Update On |
24th March, 1999 |
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Report on |
ABB DAIMLER-BENZ TRANSPORTATION
INDIA LIMITED |
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Registered Office |
3rd Floor, B-Wing, Somdutt Chambers I, 5 Bhikaji Cama
Place, New Delhi – 110 006, INDIA |
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Tel. No. |
91-11-618 6651 |
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Fax No. |
91-11-615 6651 |
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E-Mail |
-- |
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Telex |
-- |
Attachment 2
S U M M A R Y
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Incorporated |
1995 |
Status |
Satisfactory |
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Registration No. |
74038 |
Chief Executive |
Mr. Virendra Prasad Srivastava |
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Capital (Rs.) |
349.55 millions |
Payments |
Regular |
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Sales (Rs.) |
163.07 millions |
Litigation |
-- |
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Net Worth (Rs.) |
355.46 millions |
Banking Reputation |
Satisfactory |
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No. of Employees |
200 |
Auditors |
Bharat S. Raut & Company |
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Credit Rating |
A (See attachment 3) |
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INDUSTRY
The much-talked about decline in growth sector is the outcome of a combination of factors affecting industry competitiveness and end user industry growth. The inverted duty structure (raw materials such as steel plates are at 30% while finished products are at 20% customs duty) alongwith special custom duty status for project impars in major end use sectors such as oil refining and fertiliser have hit the industry hard. Part of the problems is also due to the inability to offer financing options to the end use sectors.
The investments planned in the ninth plan for oil refining and fertiliser sectors are Rs.50-60 and Rs.10-15 billions respectively. If the domestic industry is not made competitive, there is a good chance that their order book position will wersen and imports would increase. Key end use sectors such as process industry, textiles and cement are witnessing sluggish growth and threat of imports.
Poor investments in power transmission and distribution sectors have resulted in the poor performance of transformer manufacturers. The fortunes of engineering industry other than capital goods has been hit by the recent decline in the growth of the automobile sector, a major end use segments of bearings and machine tools. The machine tool and bearings sectors are also witnessing significant import threats.
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FACTORY
P. O. Box No. 124, Erda Road, Maneja, Baroda – 390 013, Gujarat, INDIA
BRANCH
Delhi, Baroda, Calcutta & Chennai
HISTORY
The company was incorporated on 27th December, 1995 at New Delhi having Company Registration Number 74038. The company was takenover by Transportation Business of Asea Brown Boveri w.e.f. 1st August, 1996 as a going concern.
LEGAL FORM
It is a Closely Held Public Limited Liability company.
DIRECTORS
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Kasargo Narsim Shendy |
Chairman |
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Virender Prasad Srivastava |
Managing Director |
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Heinz F. Cronimund |
Director |
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Rana S. Kishan Kumar |
Director |
MAJOR SHAREHOLDERS
ABB Bahnhbetiligungen GmbH, Germany 34,954,992 shares
Others 7 shares
BUSINESS
The company is engaged in manufacturing of Top Changers, DBTF Breakers & Signaling Systems to Railway and provide consultancy for Rail Systems, Transit Systems, Mass Transit Systems.
The company’s production of Top Changer during the year 1996 was 59 nos. against an installed capacity of 200 nos. Production of DBTF Breakers was 29 nos. against an installed capacity of 200 nos.
The company imports its requirements from Germany against L/C, D/A and D/P terms.
It does not export.
The company’s major customers include Indian Railways.
The company operates from a caption leased commercial office premises of 1,500 sq.ft.
SISTER CONCERNS
Nil
BANKERS
K Hongkong & Shanghai Banking Corporation Limited, New Delhi
K State Bank of India, New Delhi
AUDITORS
K Bharat S. Raut & Company
Chartered Accountants
FINANCIAL INFORMATION
The company's last available financial information for the period ended 31st December, 1996 is enclosed herewith.
CAPITAL STRUCTURE
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Authorised Capital : |
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35,000,000 |
Equity Shares of Rs.10/- each |
Rs.350.000 millions |
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Issued, Subscribed &
Paid-up Capital : |
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34,954,990 |
Equity Shares of Rs.10/- each |
Rs.349.550 millions |
COMMENTS
Subject is a new company, promoted by multi-national industrial house Asea Brown Boveri Group. It has fine track records of performance.
Since, it is a part of ABB Group, it can be regarded as a promising business partner in a long-run.
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IMPORTANT FINANCIAL
INFORMATION
[figures are in Rupees Millions]
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PARTICULARS |
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31.12.1996 |
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Sales Turnover |
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163.075 |
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[including other income] |
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Profit/(Loss) Before Tax |
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(0.107) |
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Provision for Taxation |
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0.000 |
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Profit/(Loss) After Tax |
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(0.107) |
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Imports |
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5.959 |
ABRIDGED BALANCE SHEET AS ON
31ST DECEMBER, 1996
[figures are in Rupees Millions]
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SOURCES OF FUNDS |
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31.12.1996 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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349.550 |
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2] Reserves & Surplus |
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6.024 |
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LOAN FUNDS |
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1] Secured Loans |
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6.666 |
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2] Unsecured Loans |
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120.000 |
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GRAND TOTAL
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482.240 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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447.783 |
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Capital work-in-progress |
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6.704 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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42.548 |
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Sundry Debtors |
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37.049 |
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Cash & Bank Balances |
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24.702 |
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Loans & Advances |
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34.643 |
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Total Current Assets |
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138.942 |
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Less : |
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Current Liabilities |
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104.108 |
Provisions |
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7.186 |
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Net Current Assets |
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27.648 |
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PROFIT & LOSS ACCOUNT |
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0.105 |
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GRAND TOTAL
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482.240 |
Attachment 3
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SCORE SHEET |
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SCORE |
CREDIT RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to
meet normal commitments. Maybe drawn to slightly difficult position as unfavourable
conditions arise. Minimal assurance for timely payment on interest and
principal sums |
Moderate |
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26-40 |
B |
Unfavourable & favourable factors carry similar
weight in credit consideration. Capability to overcome financial difficulties
seems comparatively limited or considered not known. Capability to pay both
interest and principal sums is doubtful |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit
not recommended |
Attachment 4
INDIA
In 1998, the Hindu-nationalist party, the BJP was elected and formed a new Government. Soon after, however, both India and Pakistan conducted nuclear tests and tension in Kashmir grew. 1999 is not likely to be much calmer with regard to neighbouring Pakistan, but it is believed that the tensions will be more loud than physical in nature. India is growing at a healthy 5% pace and is expected to continue its level for the coming year. Inflation has been high however and was 16.3% for the year, as of the end of September, 1998. 1999 inflation is expected to be reduced to 9.3%, still high. Foreign reserves have grown by $2.1 billion to $26.5 billion as of November, in comparison to one year earlier. The trade deficit and current account balance remain in red.
Ranked among the ten most corrupt nations in the world, the parallel economy is conservatively estimated to be Rs.300,000 millions – roughly equal to the Gross Domestic Product.