MIRA
INFORM REPORT
|
Report Date : |
21st
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
NEWAGE
ELECTRICAL INDIA LIMITED |
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Registered Office : |
C-33 M.I.D.C. Ahmednagar- 414 111
Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
01-05-1991 |
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Com. Reg. No.: |
11-61456 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNENO3919G |
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PAN No.: [Permanent
Account No.] |
AABCC1533E |
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CIN No.: [Company
Identification No.] |
L31101MH1991PLC061456 |
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Legal Form : |
A closely
held public limited liability company |
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Line of Business : |
Engaged
in the business of manufacturing Brushless A. C. generators |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD
1000000 |
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Status : |
Good |
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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 having fine track. Available
information indicates high financial responsibility of the company. Trade
relations are fair. Financial position is good. Payments are correct and as
per commitments. The
company can be considered good for any normal business dealings. It can
be regarded as a promising business partners in a medium to long – run. |
LOCATIONS
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Registered Office / Factory: |
C-33 M.I.D.C. Ahmednagar, Maharashtra,
India - 414 111 |
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Tel. No.: |
91-241-
560 3464/ 5 / 6 |
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Fax No.: |
91-241-
277 7494 |
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E-Mail : |
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Website : |
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Corporate
Office : |
203,
Mayfair Towers - I, wakdewadi, Shivajinagar, Pune, Maharashtra, India - 411
005 |
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Tel.
No.: |
91-20-5603
464 / 5 / 6 |
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Fax
No.: |
91-20-5602
5331 |
DIRECTORS
|
Name : |
Mr.
Norris Allen Michael |
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Designation : |
Chairman
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Address : |
Acasid
House, South Road, Bourne PE 10 RJD, England |
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Date of Birth/Age : |
02/07/1957 |
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Date of Appointment : |
28/07/2003 |
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Name : |
Mr.
Bhargava Inderoutt Pradeep |
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Designation : |
Managing
Director |
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Address : |
19
Cazy Retreat, Sinon Society, Pune |
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Date of Birth/Age : |
25/08/1949 |
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Qualification : |
Bachelor
of Science Bachelor of Engineering PGDBA |
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Experience : |
2 ½
years |
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Date of Appointment : |
01/05/2003 |
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Last Employment : |
Cummins
India Ltd –Director |
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Name : |
Mr.
Srikanth Padmanabhan |
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Designation : |
Director
|
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Address : |
Holand
House, Marn Street, PE9 3NB, England |
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Date of Birth/Age : |
25/05/1964 |
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Date of Appointment : |
12/04/2004 |
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Name : |
Mr.
Paul Crossley |
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Designation : |
Director
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Address : |
C/o
Newage International Ltd, Slamiord, England |
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Date of Birth/Age : |
07/04/1962 |
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Date of Appointment : |
19/04/2004 |
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Name : |
Mr.
Anant Talaulicar |
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Designation : |
Director
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Address : |
2101,
Gramdevi, Mumbai |
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Date of Birth/Age : |
11/07/1961 |
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Date of Appointment : |
19/04/2004 |
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Name : |
Mr.
Rajiv Batra |
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Designation : |
Director
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Address : |
Flat
No. 5 The IRIS, 3rd Floor, S No 28/29/A, Lane E, Koregaon Park
Road, Pune 411001 |
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Date of Birth/Age : |
3/09/1955 |
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Date of Appointment : |
07/09/2004 |
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Name : |
Mr.
Sarpotdar Govind Shrikant |
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Designation : |
Director
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Address : |
Flat
no. 4 & 5 Plot No 4, 137/4, Salokha Gururaj Housing Society, Near Jai
Bhawani Society, Pune – 411 038 |
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Date of Birth/Age : |
08/11/1950 |
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Date of Appointment : |
13/09/2002 |
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Name : |
Mr.
Mcoowell Vicent Peter |
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Designation : |
Director |
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Address : |
21,
Gateways, Epson, U K |
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Date of Birth/Age : |
28/04/1945 |
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Date of Appointment : |
28/07/2003 |
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Name : |
Mr.
Ibbo Son Iric Paul |
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Designation : |
Director
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Address : |
9 St.
Mary’s Woddnewton, PE8 5ET, England |
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Date of Birth/Age : |
08/02/1958 |
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Date of Appointment : |
28/07/2003 |
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Name : |
Mr.
Venkatesan N. Ravi |
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Designation : |
Director
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Address : |
77
Natinal Co-op Housing Society Ltd, Baner Road, Aundh, Pune – 411007 |
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Date of Birth/Age : |
12/01/1963 |
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Date of Appointment : |
28/07/2003 |
BUSINESS DETAILS
|
Line of Business : |
Engaged
in the business of manufacturing Brushless A. C. generators |
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Products : |
Item
Code No. 85.01 Product
Description Brushless AC
Generator |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Brushless AC Generator |
Kw |
4030893 |
3092880 |
2222793 |
GENERAL
INFORMATION
|
Employees : |
About
800 |
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Bankers : |
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Facilities : |
Unsecured
Loans Sales
Tax Deferral Loan from SICOM
Limited Rs. 68.135 millions |
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Banking Relations : |
Good |
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Auditors : |
Price Warehosue Chartered
Accountants |
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Group Companies : |
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CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity
Shares |
Rs. 10 each |
Rs. 30.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1607001 |
Equity
Shares |
Rs. 10 each |
Rs. 16.070 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
16.070 |
16.070 |
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3] Reserves & Surplus |
270.049 |
230.016 |
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NETWORTH |
286.119 |
246.086 |
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LOAN FUNDS |
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|
|
|
1] Secured Loans |
-- |
-- |
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|
2] Unsecured Loans |
68.135 |
68.722 |
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|
TOTAL BORROWING |
68.135 |
68.722 |
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DEFERRED TAX LIABILITIES |
14.020 |
-- |
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|
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|
|
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TOTAL |
368.274 |
314.858 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
189.771 |
116.762 |
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Capital work-in-progress |
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INVESTMENT |
102.389 |
114.725 |
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DEFERREX TAX ASSETS |
-- |
0.110 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
|
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Inventories |
123.098
|
71.762 |
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Sundry Debtors |
291.430
|
215.420 |
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|
Cash & Bank Balances |
15.176
|
22.955 |
|
|
Other Current Assets |
0.000
|
0.000 |
|
|
Loans & Advances |
20.709
|
22.146 |
|
Total Current Assets |
450.413
|
332.283 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
287.440
|
210.736 |
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Provisions |
86.859
|
38.336 |
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Total Current Liabilities |
374.299
|
249.072 |
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Net Current Assets |
76.114
|
83.211 |
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|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
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|
|
|
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TOTAL |
368.274 |
314.858 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1426.486 |
1035.519 |
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|
|
|
|
Profit/(Loss)
Before Tax |
226.563 |
118.525 |
|
Provision
for Taxation |
84.224 |
40.507 |
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Profit/(Loss)
After Tax |
142.339 |
78.018 |
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|
|
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Export
Value |
87.515 |
40.749 |
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Import
Value |
160.103 |
93.351 |
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Total
Expenditure |
1199.923 |
916.994 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
9.978 |
7.534 |
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Net
Profit Margin (PBT/Sales) |
(%) |
|
14.058 |
10.117 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
30.510 |
21.019 |
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|
|
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Return
on Investment (ROI) (PBT/Networth) |
|
|
0.791 |
0.481 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
|
1.546 |
1.291 |
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|
|
|
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Current
Ratio (Current
Asset/Current Liability) |
|
|
1.203 |
1.334 |
LOCAL AGENCY
FURTHER INFORMATION
Reserves
:
The
reserves at the beginning of the year stood at Rs. 213.900 millions the
directors propose to transfer Rs. 15.300 millions to general reserve, after
which the total reserves as at 31st March, 2005 would be Rs. 229.200
millions.
Opening
balance in profit and loss account was rs .10.200 millions the closing balance
in profit and loss account of Rs. 35 million is proposed to be carried forward
to the next year.
Performance
:
The year
2004-05 was on more cheerful year for the company. Sales in value grew by 38%
whereas the sales volume increased by 42%. Pre tax profit was rs. 226.600
millions as against Rs. 118.500 millions for the year 2003-04.
Exports
grew from Rs. 41.300 millions in the previous yea to Rs. 8.75 millions in the
year 2004-05, an increase of 111%.
Outlook
:
The
company expects that the domestic economy would perform better. Various
measures taken by the central government are anticipated to provide booster to
the industrial and economic growth in the domestic market. This would lead to a
higher demand for electrical power. On the supply side no remarkable
improvements are seen in generation and distribution of electrical power, with
this it is expected that the peak power deficit will widen. This will provide
stimulus to growth of captive power industry.
Price of
steel. Copper and the other prime industrial metals have increased over last
year. This has put pressure on net sales realization. The company is trying
with every possible way of cost containment.
The
expansion of the company’s plant at Ahemednagar is progressing on schedule. The
company has been giving trust on
increasing export wherein good opportunities do exist. The company has now a
wide range of alternators available in
its stable. With the recent introduction of alternators in P 7 series, the
company produces alternators in the range of 7.5 KVA to 2200 KVA. It has
recently renewed it agreement for technical assistance with Newage international limited, UK. The company
believes that it will continue to record good performance in the current year
also.
Finance
:
Capital
expenditure during the year was Rs. 51.700 millions and was financed out of the
internal accruals.
Fixed
Assets :
Leased
Hold, Building, Plant and Machinery, Furniture and Fixtures and Vehicles
AVK SEG
(India) Power Limited (AVK India) was formed as a joint venture between AVK SEG
Holding Beteiligungs Gesellschaft Mbh (AVK Germany) and Control and Switchgear
Company Limited.
Newage
International Limited UK has acquired management control over AVK Germany
through acquisition of majority shares in it.
The
company is in trade terms with :
- Amit Engineering and Metal
Pressing
- Bhavsar Foundries Private
Limited
- Casilon Polymers Private
Limited
- Kalantri Chemical Industries
- Rushas Engineering Company
Limited
- Raja Rubbers & Tubes Private
Limited
- Sarnaik Brothers Private
Limited
- Sturdy Engineers (India)
Private Limited
- Surya Engineering Works
- Ujwal Electrical Stampings.
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FORM NO. 8 Registration No of Company 11-61456 THE COMPANIES ACT, 1956 Nominal Capital Rs. 30.000 millions FORM NO. 8 Particulars of Charges created by a company registered in India (Pursuant to sections 125/127/135) Name of the Company CG NEWAGE ELECTRICALS LIMITED Presented by CG NEWAGE ELECTRICALS LIMITED |
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Deed of Hypothecation dated the 26th May 1992, executed by CG NEWAGE ELECTRICALS LIMITED (there in and hereinafter referred to as the company) in favour of the Industrial Credit And Investment Corporation of India Limited |
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Terms loan of Rs. 22 millions only (therein and hereinafter referred to as the loan) |
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The whole of the movable property of the company situate at C-33, MIDC Industrial Area, Ahmednagar including the company’s movable plant and machinery, machinery spares, tools and accessories and other movables both present and future (save and except book debts) (therein and hereinafter referred to as “the said goods” ) short particulars whereof are giver in the annexure 1 hereto. |
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In consideration of ICICI having lent and advanced to lend and advance to the company the loan, agreement and declaration buy the company inter alias, as follows :
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The Industrial Credit and Investment Corporation of Indian Limited 163 Backbay Reclamation, Bombay 400020 |
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No instrument was executed but on the 31st day of January , 1995 a joint mortgage was created by the company jointly in favour of ICICI and BOB by deposit of title deeds with ICICI, ICICI acting, for itself and as agent of BOB in respect of the company immovable properties situate at Plot No. C-33, MIDC Industrial Area, Ahmednagar in the State of Maharashtra in order to create a security thereon as and by way of a joint mortgage by deposit of title deeds pursuant to the resolution passed by the company on the 31st day of December, 1993 |
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The Loan together with interest, compound interest, further interest additional interest commitment charges liquidated damages, premise on prepayment or on redemption, costs, charges, and other expenses payable by the company to ICICI in respect thereof secured under the abovementioned deed of hypothecation is also now secured by the said join mortgaged by deposit of title deeds in respect of the company’s immovable properties situate at Plot No C-33, MIDC Industrial Area, Ahmednagar in the state of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything to the earth. |
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AS PER
WEBSITE
Business
Overview
The
company is in business of manufacturing Brushless A. C. generators. Its focus
is to harness the power of years of experience and channel in unison the effort
and commitment of thousands of employees towards a clear vision to electrify
the future of all customers. They manufacture Brushless A. C. Generators from 5
kVA to 2200 kVA range by STAMFORD brand & market in SAARC region. Company
product is well accepted in the market as a quality product & achieved a
Major market share. All the expansion in the Company is made with the internal
finance without any loans. The company is ISO 9001 : 2000 certified. The
Company has dedicated vendor base having mutual dependability with the Company.
JIT System
is effectively implemented in the Company. The Company has a young &
dynamic technical & professional workforce. The average age of the employee
is 28 years. Continuous development and improvement as the main thrust. -
Product Up gradation to IP23, Differential protection for HC6Z frame, new frame
developments like UC27V, BC,P7 frame. The complete office building was
automated by Desk to desk computer system interconnected LAN system for
networking. Use of MAPICS as the ERP solution for Computerization of all the
departmental system for the flow of the information & records.
Vision
and Future
·
Customer’s Delight
·
Preferred Product
Supplier
·
Improved Growth, Profitability
·
Stake holder’s Pride
·
Maintain Market Leadership
·
Thrust on Technology
·
Enriched Environment & Society
·
Dedicated Workforce
Leadership
Individually
and collectively we commit to realizing its shared goals through the
innovation, courage, energy and tenacity of the team. they continuously
seek to improve industry standards.
Team
The Core
Values of Newage AVK SEG provide employees with the foundation for a healthy
culture and strong relationships with our customers and suppliers:
Customers
Its
commitment is to listen to and understand the needs of its customers and strive
to exceed their expectations. We build relationships based on reliability,
quality and innovation.
Growth
They seek
opportunities for financial improvement in all areas of its business. They
challenge the status quo to identify and pursue ways of delivering sustainable
growth.
Talent
They
recognize and nurture talent to secure our future. They commit to a culture
which rewards achievement and constantly expands our knowledge, experience and
opportunities.
Its team
also likes to have fun – the team that plays together, stays together!
History
Newage Electrical India Ltd. is a public limited company.
Its Plant was inaugurated on 15th May, 1992. The operations commenced in the
year 1993-94. Right from the inception, the Company has implemented many
industrial engineering principles in the TQM way. The Company has achieved the
phenomenal growth. Starting from humble sales of Rs. 0.5 millions in the first
year 1993/94, progressed rapidly to the turnover of Rs. 6.400 millions in
1999-2000.& turnover of Rs 13 millions in the financial year 2004-2005.
This has established Newage Electrical India Ltd. as a market leader in the
Indian alternator market. The companies Manufacturing plant and registered
office is located at Ahmednagar in India. The corporate office started at
Pune in year 2002-2003. Newage has achieved a largest capacity of manufacturing
30,000 alternators per annum in year 2004.
Major Highlights:-
·
•April 1993 – Commercial Production Started.
·
•May 1996 –
Accredited With ISO 9000.
·
•Year 1996 – Received Rajiv Gandhi National Quality Award
– (Also In Year 2000)
·
•April 2003 – NEIL Product IP 23 Compliant (First Newage
Unit World-Wide)
·
•Year 2003 – Sales Volume 13000 Alternators And Value
US $ 19.3 Mn.
·
•Jan 2004 – Formal
Inauguration Of Facilities After Expansion (CAPEX US$ 1 Mn)
·
•Feb 2004 – Started
Exports To Newage Entities.
·
•Aug 2004 – 800
Alternators Valued at US$ 0.8 Mn Exported Up To August 04.
·
•Mid 2004 – Women Employed At All Levels In The Company.
·
•End 2004 – Capacity
In Place For Manufacturing 30000 Alternators Per Year.
·
•April 2005 – Phase –III expansion capacity ramp up
·
•Profit Making Enterprise Since Inception …..
Product
Range
Newage Electrical India
Limited Manufactures Brush-less Alternators with the most advanced design,
production and testing facilities sets an international standard for ruggedness
and reliability.
Presently available from 5
kVA to 2200 KVA, STAMFORD generators are suitable for all generator set
configurations to meet the most demanding range of industrial, commercial,
construction, telecommunications, mining and other standby or prime power
applications.
NEWAGE INTERNATIONAL LTD.
leads the way in Automatic Voltage Regulator (AVR) technology, for both
self-excited and PMG excited generators. Ongoing quality control programmes,
based on rigorous component selection, testing, design refinement and
encapsulation developments, and have made Newage's AVR technology a byword of
reliability.
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 records 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. 46.04 |
|
UK
Pound |
1 |
Rs. 84.73 |
|
Euro |
1 |
Rs. 57.92 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
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 |