MIRA INFORM REPORT
|
Report
Date : |
16.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
ESCORTS
LIMITED |
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|
Registered
Office : |
11,
Scindia House, Connaught Circus - 110 001, New Delhi, India. |
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Country
: |
India |
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|
Financials
(as on) : |
30.09.2005 |
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Date
of Incorporation : |
17.10.1944 |
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Com.
Reg. No.: |
55-1860 |
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CIN
No.: [Company Identification No.] |
L74899DL1944PLC001860 |
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TAN
No.: [Tax Deduction & Collection Account No.] |
DELE00069G |
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PAN
No.: [Permanent Account No.] |
AAACE0074B |
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|
Legal
Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line
of Business : |
Manufacturers
of Agri Machinery, Auto-Components and Railway Equipment. |
RATING & COMMENTS
|
MIRA’s
Rating : |
B |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum
Credit Limit : |
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Status
: |
Moderate |
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Payment
Behaviour : |
Slow |
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Litigation
: |
Clear |
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Comments
: |
Escorts
Group is a well-established and reputed multi-product group company. One of the directors of the company – Dr.
M. G. K. Menon is a distinguished scientist of international repute and a
recipient of various laurels abroad apart from the Padma Bhushan and The
PadmaVibhushan for his outstanding services to the nation. Financial
position of the company is moderate . Payments are reported as slow and
delayed. It can be considered for business dealings at usual trade
terms and conditions, with slight caution. |
LOCATIONS
|
Registered
Office : |
11,
Scindia House, Connaught Circus - 110 001, New Delhi, India. |
|
Tel.
No.: |
91-11-23310145 |
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Fax
No.: |
91-11-23310271 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
15/5 Mathura Road, Faridabad – 121 003, Haryana |
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Plant
: |
·
18/4,
Mathura Road, Faridabad – 121 007, Haryana ·
Plot
No. 2, Sector 13, Faridabad – 121 007, Haryana ·
Plot
No. 3, Sector 13, Faridabad – 121 007, Haryana ·
115,
Sector 24, Faridabad – 121 003, Haryana |
DIRECTORS
|
Name |
Mr. Rajan Nanda |
|
Designation |
Chairman and Managing Director |
|
Age |
59 Years |
|
Qualification |
Senior Cambridge, Training in UK and Germany |
|
Experience |
41 Years |
|
Date
of Joining |
03.04.1970 |
|
Previous
Employment |
Harparshad & Company Limited - Director |
|
|
|
|
Name |
Mr. Anil Nanda |
|
Designation |
Vice Chairman and Managing Director |
|
Age |
50 Years |
|
Qualification |
Senior Cambridge |
|
Experience |
30 Years |
|
Date
of Joining |
01.07.1981 |
|
Previous
Employment |
Intercontinental Travancore (Private) Limited |
|
Other
Directorships |
Goetze (India) Limited, G I Power Corporation
Limitecd, Goetze TP (India) Limited, G I Wind Power Company Limited, AN-GIP
Leather (India) Limited, Escorts Farms Limited, Akme Project Limited, AN
Enterprises Private Limited, Joint Investment Private Limited, GI Insurance
Services Limited |
|
|
|
|
Name |
Mr. Nikhil Nanda |
|
Designation |
Executive Director and COO |
|
Age |
30 years |
|
Qualification
|
BBA |
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|
|
Name |
Mr. Y. H. Malegam |
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Designation |
Director |
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|
Name |
Mr. Nilesh Kampani |
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Designation |
Director |
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|
Name |
Dr. S. A. Dave |
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Designation |
Director |
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Qualification
|
M.A. [Economics] Ph.D. |
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Other
Directorships |
1. HDFC Limited 2. Crisil Limited 3. SBI Gilts Limited 4. Future Software Limited 5. GIIC 6. Phoenix Township Limited 7. Captech Online Private Limited 8. Quantum Information Services Limited 9. Centre for Monitoring Indian Economy Private
Limited 10. Merchant Media Limited 11. Indo National Limited 12. Spice Corporation Limited 13. Spice Net Limited |
|
|
|
|
Name |
Dr. Fredie A. Mehta |
|
Designation |
Director |
|
Qualification
|
Ph.D. in International Economics from London
school of Economics |
|
Other
Directorships |
1. Siemens Limited 2. SKF Bearings India Limited 3. Goodlass Nerolac Paints Limited 4. Tata Investment Corporation Limited 5. Tata McGraw-Hill Publishing Company Limited 6. Rallis India Limited 7. IVP Limited 8. Tata Precision Industries Pte Limited |
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|
Name |
Dr. M. G. K. Menon |
|
Designation |
Director |
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Qualification
|
B.Sc., M.Sc., Ph.D., D.Sc [h.c.], F.R.S. |
|
Other
Directorships |
Indfos Industries Limited |
|
|
|
|
Name |
Dr. P. S. Pritam |
|
Designation |
Director |
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Qualification
|
M. A., LLB, Ph. D. |
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|
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|
Name |
Mr. Jai S. Pathak |
|
Designation |
Director |
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Qualification
|
BA (History), BA (Law: Oxon), MA (International
Relations), LLM (Law: University of Virginia) |
|
Other
Directorships |
IGate Global Systems Limited, Timken India
Limited |
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|
|
|
Name |
Mr. D. K. Mehrotra |
|
Designation |
Director |
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Qualification
|
B. Sc. (Hons) |
|
Other
Directorship |
North Eastern Development Finance Corporation
Limited |
|
|
|
|
Name |
Mr. N. R.
Krishnan |
|
Designation |
Director |
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|
Name |
Mr. S C Bhargava |
|
Designation |
Director |
KEY EXECUTIVES
|
Name |
Mr. G. B.
Mathur |
|
Designation |
Vice President
– Law and Company Secretary |
|
Age |
54 years |
|
Qualification |
B. Sc.
ACS, LLB |
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Experience
|
29 years |
|
|
|
|
Name |
Mr.
Devraj Singh |
|
Designation |
Business
Head |
|
Tel.
No. |
91-129-25284623 |
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E-mail |
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|
|
Name |
Mr. B. R.
Prakash |
|
Designation |
Head
Marketing |
|
Tel.
No. |
91-129-25283299 |
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E-mail |
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|
|
|
|
Name |
Mr. D. K.
Singal |
|
Designation |
Head-Operations |
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Tel.
No. |
91-129-25286482 |
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E-mail |
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|
|
Name |
Mr. C.
Grover |
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Designation |
Head-Technical |
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Tel.
No. |
91-129-25280286 |
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E-mail |
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|
|
Name |
Mr. A. K.
Kalra |
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Designation |
Head-Materials |
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Tel.
No. |
91-129-25286888 |
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E-mail |
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|
|
Name |
Mr. Sunil
Jain |
|
Designation |
General
Manager Exports and Marketing |
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Tel.
No. |
91-129-25281556 |
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E-mail |
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|
|
|
Name |
Mr. A.
Kansal |
|
Designation |
Head -
Plant Engineering |
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Tel. No. |
91-129-25286888 |
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|
Name |
Mr. Anand
Suresh |
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Designation |
Head –
Manufacturing Operations (AMG) |
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Age |
56 years |
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Qualification
|
M. Tech.,
B. Tech., IIT |
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Experience
|
31 years |
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|
|
|
Name |
Mr.
Rakesh Chopra |
|
Designation |
Business
Head and Senior Vice President (AMG) |
|
Age |
54 years |
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Qualification
|
FCA(Engineering
and Wales), MBA (Cranfield, UK) |
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Experience
|
31 years |
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|
|
|
Name |
Mr. K S
Hawaldar |
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Designation |
Head
Operation RED- Engineering Division |
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Age |
54 years |
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Qualification
|
BE Tech.,
Diploma in System Management |
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Experience
|
31 years |
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|
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|
Name |
Mr.
Sriram Khattar |
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Designation |
VP-Corporation
Strategic Planning and Corporate Affairs |
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Age |
46 years |
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Qualification
|
B. Com.,
(Hons.), FCA |
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Experience
|
22 years |
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|
|
|
Name |
Mr.
Sarkar M C |
|
Designation |
Head – R
and D (AMG) |
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Age |
57 years |
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Qualification
|
BE Tech.,
M. Tech. |
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Experience
|
34 years |
|
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|
|
Name |
Mr.
Pratha Sarkar |
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Designation |
Vice
President |
|
Age |
53 years |
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Qualification
|
B. Tech,
MBA |
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Experience
|
28 years |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
Promoters' holdings
|
|
|
|
Indian
Promoters |
1649899 |
2.28 |
|
Foreign
Promoters |
-- |
-- |
|
Person
Acting in Concert |
23928928 |
33.13 |
|
|
|
|
Non promoter's holdings
|
|
|
|
Mutual
Funds and UTI |
2501137 |
3.46 |
|
Banks,
Financial Institutions and Insurance
Companies |
16030832 |
22.19 |
|
FIIs |
2525118 |
3.50 |
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Others
|
|
|
|
Private
Corporate Bodies |
5554985 |
7.69 |
|
Indian
Public |
19336245 |
26.77 |
|
NRIs /
OCBs |
705096 |
0.98 |
|
Grand Total |
72232240 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
of agri machinery, auto-components and railway equipment. |
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Products
: |
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Exports
to : |
Australia, Botswana, Ghana, Mozambique, Namibia, Nepal,
Poland, South Africa, Sri Lanka, Tanzania, Turkey and USA. |
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GENERAL INFORMATION
|
No. of
Employees : |
Around 7464 |
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Bankers
: |
Ř
Standard
Chartered Grindlays Bank Limited, New Delhi Ř
ABN
Amro Bank, New Delhi Ř
Bank
of America, NT & SA, New Delhi Ř
Bank
of Baroda, New Delhi Ř
Citibank
N.A., New Delhi Ř
Deutsche
Bank, New Delhi Ř
Hongkong
& Shanghai Banking Corporation, New Delhi Ř
HDFC
Bank Limited, New Delhi Ř
Punjab
National Bank, New Delhi Ř
State
Bank of India, New Delhi Ř State Bank of Travancore, New
Delhi Ř United Western Bank Limited |
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Facilities : |
[Rupees in Millions]
|
|
|
|
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Banking Relations : |
Good |
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Auditors
: |
S. N.
Dhawan & Company Chartered Accountants |
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|
|
Associates
: |
·
Goetze
(India) Limited ·
Hughes
Escorts Communications Limited ·
Escotrac
Finance & Investment Private Limited ·
Escorts
Finance Investment & Leasing Private Limited ·
Escorts
Auto Components Limited ·
Escorts
Finance Limited ·
Yamaha
Motor Private Limited (formerly Yahama Motor Escorts Limited) ·
Long
Agri Business LLC, U.S.A. ·
Pol-Mot
Escorts Spoolka z.o.o. ·
Carraro
India Limited ·
Escorts
Mahle Limited ·
Escorts
JCB Limited ·
Escosoft
Private Limited ·
Escorts
Motors Limited |
|
|
|
|
Subsidiaries |
Ř
Escosoft
Technologies Limited Ř
Escorts
Construction Equipment Limited Ř
Escorts
Automotives Limited Ř
Escorts
Securities Limited Ř
Escorts
Asset Management Limited Ř
Escorts
Claas Limited Ř
Escorts
Hospital and Research Centre Limited3 Ř
Escorts
Heart Institute and Research Centre Limited Ř
Escorts
Heart and Super Speciality Centre Limited, Amritsar, Punjab Ř
Escorts
Heart Care Centre, Kanpur, Uttar Pradesh Ř
Esconet
Services Limited Ř
Cellnext
Solutions Limited Ř
iServ
India Solutions Private Limited Ř
Automatrix
India Private Limited Ř
Escorts
Telecommunications Limited Ř
Escorts
Mobile Communications Limited [ceased to be a subsidiary w.e.f. 10.06.2004] Ř
Escorts
Construction Equipment Limited Ř
Escosoft
Technologies Limited Ř
Escorts
Research and Development Limited Ř
Escosoft
Singapore Pte. Limited Ř
Escorts
Agri Machinery Inc., USA Ř
Esoft
[Mauritius] Holdings Limited Ř
Escosoft
Technologies [UK] Private Limited Ř
Escosoft
Technologies [USA] Limited Ř
Escorts
Healthcare Services Limited Ř
Escorts
Telecom Services Limited Ř
Escotoonz
Entertainment Private Limited |
|
|
|
|
Membership
: |
Ř Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
77000000 |
Equity
Shares |
Rs. 10/- |
Rs. 770.000 millions |
|
77300000 |
Unclassified
Shares |
Rs. 100/- |
Rs. 7730.000 millions |
|
|
Total |
|
Rs. 8500.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
72232240 |
Equity
Shares |
Rs. 10/- |
Rs. 722.300 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.09.2005 (15 months) |
30.06.2004 (15 months) |
31.03.2003 (12 months) |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
1] Share
Capital |
722.300 |
722.300 |
722.300 |
|
2]
Reserves & Surplus |
5459.000 |
5210.500 |
8436.800 |
NETWORTH
|
6181.300 |
5932.800 |
9159.100 |
|
LOAN
FUNDS |
|
|
|
|
1]
Secured Loans |
4279.100 |
6129.000 |
4805.500 |
|
2] Unsecured
Loans |
2405.400 |
2814.700 |
3356.400 |
TOTAL
BORROWING
|
6684.500 |
8943.700 |
8161.900 |
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
766.800 |
|
|
|
|
|
TOTAL
|
12865.800 |
14876.500 |
18087.800 |
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
5134.600 |
5774.100 |
6008.600 |
|
Capital
work-in-progress |
23.800 |
35.200 |
21.300 |
|
|
|
|
|
|
INVESTMENTS |
4970.700 |
6128.800 |
6192.600 |
DEFERREX TAX ASSETS
|
786.300 |
315.200 |
0.000 |
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
1259.400 |
1200.400 |
1194.300 |
|
Sundry
Debtors |
1768.400 |
2539.200 |
2567.600 |
|
Cash
& Bank Balances |
1485.200 |
271.300 |
835.400 |
|
Other
Current Assets |
1.200 |
1.200 |
2.500 |
|
Loans
& Advances |
1791.800 |
2207.300 |
4273.200 |
|
Total Current Assets |
6306.000 |
6219.400 |
8873.000 |
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
Current
Liabilities |
4017.000 |
3439.600 |
2991.900 |
Provisions
|
527.000 |
307.000 |
399.700 |
Total Current Liabilities
|
4544.000 |
3746.600 |
3391.600 |
|
Net Current Assets |
1762.000 |
2472.800 |
5481.400 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
188.400 |
150.400 |
383.900 |
|
|
|
|
|
GRAND TOTAL
|
12865.800 |
14876.500 |
18087.800 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
30.09.2005 (15 months) |
30.06.2004 (15 months) |
31.03.2003 (12 months) |
Sales Turnover [including other income]
|
18136.600 |
11210.200 |
10621.900 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
310.200 |
(4217.400) |
222.600 |
Provision for Taxation
|
(80.700) |
1082.000 |
[17.800] |
Profit/(Loss) After Tax
|
390.900 |
(3135.400) |
240.400 |
|
|
|
|
|
Export Value
|
1404.900 |
1179.900 |
1213.400 |
|
|
|
|
|
Import Value
|
273.600 |
519.500 |
910.300 |
|
|
|
|
|
Total Expenditure
|
14776.700 |
12894.000 |
9758.500 |
QUARTERLY
RESULTS
|
PARTICULARS |
31.12.2005 [1st Qtr.] |
31.03.2006 [2nd Qtr.] |
30.06.2006 [3rd Qtr.] |
|
Sales
Turnover |
3292.900 |
4415.800 |
4785.000 |
|
Other
Income |
0.000 |
67.900 |
0.000 |
|
Total Income |
3292.900 |
4483.700 |
4785.000 |
|
Total
Expenditure |
3195.400 |
4196.000 |
4402.100 |
|
Operating
Profit |
97.500 |
287.700 |
382.900 |
|
Interest |
181.800 |
162.900 |
240.100 |
|
Gross
Profit |
[84.300] |
124.800 |
142.800 |
|
Depreciation |
98.900 |
119.100 |
101.400 |
|
Tax |
[212.400] |
167.500 |
25.700 |
|
Reported
PAT |
29.200 |
[161.800] |
15.700 |
Notes
2005-12 Quarter 1
Expenditure Includes (Increase)/Decrease in
Stock in Trade Rs (142.00) million Consumption of Raw Materials Rs 2433.30
million Manufacturing Expenses Rs 124.10 million Staff Cost Rs 388.70 million
Other Expenditure Rs 372.50 million Amortization Rs 18.80 million EPS is Basic
and Diluted Status of Investor Complaints for the quarter ended December 31,
2005 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 09 Complaints disposed off during the quarter 09 Complaints
unresolved at the end of the quarter Nil 1. The results for the quarter ended
December 31, 2005 are subject to Limited Review by auditors. 2. The Directors
noted that the Profit/(Loss) before Tax (PBT) from business operations
(excluding extra ordinary income/(expenses) has shown an improving trend in the
trailing 4 quarters which is a clear sign of turnaround in the business
performance of the Company as evident from the figures of PBT given below:
October-December 2005 - (183.20) million July-September 2005 - (548.60) million
April-June 2005 - (772.90) million January-March 2005 - (557.50) million 3. In
view of the turnaround in the business performance of the Company and strong
probability of future profitability, the Company has been recognizing the
deferred tax income in its results and the provision for tax stated above is
net of such deferred tax credits computed and created during the quarter. 4.
The above results have been taken on record by the Board of Directors at their
meeting held on January 27, 2006.
2006-03 Quarter 2
Expenditure Includes (Increase)/Decrease in
Stock in Trade Rs (79.40) million Consumption of Raw Materials Rs 3209.50
million Manufacturing Expenses Rs 151.50 million Staff Cost Rs 399.30 million
Other Expenditure Rs 426.40 million Depreciation Includes Depreciation Rs
100.50 million Amortization Rs 18.60 million Provisions & Contingencies
Includes Loss on sale of investments / Provision for diminution in investments,
current assets, loans & advances and write offs Rs 88.70 million Provision
against Loans & Advanced written back Rs (67.90) million EPS is Basic and
Diluted Status of Investor Complaints for the quarter ended March 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 08 Complaints disposed off during the quarter 08 Complaints
unresolved at the end of the quarter Nil 1. The results for the quarter ended
March 31, 2006 are subject to Limited Review by auditors. 2. The Profit/(Loss)
before Tax (PBT) from business operations (excluding extra ordinary
income/(expenses)) has shown an improving trend in the trailing 4 quarters which
is a clear sign of turnaround in the business performance of the Company as
evident from the figures of PBT given below: Jan-Mar 2006 - 26.50 million
Oct-Dec 2005 - (183.20) million Jul-Sept 2005 - (548.60) million Apr-Jun 2005 -
(772.90) million 3. During the quarter the Company, has divested its entire
shareholding in the software subsidiaries i.e. Escosoft Technologies Ltd and
Esconet Services Ltd on divestment, the Company incurred a loss to the tune of
Rs 843.50 million. However provision of Rs 754.80 million created in earlier
period has been adjusted against the loss. 4. The Company in the current
quarter has written off debtors relating to Agri Machinery Products business
amounting to Rs 593.60 million. The impact thereof on the results for the quarter
is not material as the Company was carrying sufficient provision for doubtful
debts in earlier periods that has been adjusted against the write-off. 5.
Provision for tax stated above includes deferred tax and fringe benefit tax
computed and created during the period. 6. The Company has filed with the Delhi
High Court, Scheme of arrangement and the compromise with its shareholders and
Escorts Finance Ltd and its fixed deposit holders and secured creditors. 7.
Previous period figures have been re-grouped / re-arranged wherever necessary.
8. The above results have been taken on record by the Committee of Directors at
their meeting held on April 27, 2006.
2006-06 Quarter 3
Expenditure Includes (Increase)/Decrease in
Stock in Trade Rs (166.90) million Consumption of Raw Materials Rs 3518.30
million Manufacturing Expenses Rs 176.50 million Staff Cost Rs 417.20 million
Other Expenditure Rs 437.00 million Depreciation Includes Depreciation Rs
101.40 million Amortization Rs 20.00 million EPS is Basic & Diluted Status
of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 08
Complaints disposed off during the quarter 08 Complaints unresolved at the end
of the quarter Nil 1. The results for the quarter ended June 30, 2006 have been
reviewed by the Auditors. 2. Provision for tax stated above includes Deferred
tax and fringe benefit tax computed and created during the period. 3. Previous
period figures have been re-grouped / re-arranged wherever necessary. 4. The
above results have been taken on record by the Board of Directors at their
meeting held on July 24, 2006.
KEY
RATIOS
|
PARTICULARS |
30.09.2005 (15 months) |
30.06.2004 (15 months) |
31.03.2003 (12 months) |
|
Debt Equity
Ratio |
1.56 |
1.34 |
0.97 |
|
Long Term
Debt Equity Ratio |
1.37 |
1.12 |
0.59 |
|
Current
Ratio |
1.20 |
1.28 |
1.15 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.14 |
1.11 |
1.04 |
|
Inventory
|
8.21 |
8.23 |
7.23 |
|
Debtors |
4.86 |
3.92 |
2.56 |
|
Interest
Cover Ratio |
(1.88) |
(0.48) |
0.11 |
|
Operating
Profit Margin (%) |
(19.93) |
(1.60) |
6.31 |
|
Profit
Before Interest and Tax Margin (%) |
(23.98) |
(6.06) |
1.65 |
|
Cash
Profit Margin (%) |
(29.12) |
(5.62) |
[8.54] |
|
Adjusted
Net Profit Margin (%) |
(33.16) |
(10.08) |
[13.20] |
|
Return on
Capital Employed (%) |
(19.82) |
(4.11) |
0.95 |
|
Return on
Net Worth (%) |
(69.19) |
(15.78) |
[14.60] |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.130.90/- |
|
Low |
Rs.127.05 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated as a private limited company in
October, 1944 at Lahore under the name and style of Escorts (Agents) Private
Limited and later converted into a public limited liability company in
December, 1959. Its' Company Registration Number is 1860.
The name of the company was changed to the present in
January, 1980.
The company was promoted by Mr. H. P. Nanda, as a private
limited liability company in October, 1944 at Lahore under the name Escorts
(Agents) Private Limited and later converted into a public limited company in
December, 1959. The name was changed to Escorts in January, 1960. The company
is presently into production of farm equipment automobile components, railway
ancillaries, etc.
As a part of restructuring its business, in
1994-95, the company hived off certain divisions into separate entities --
Escorts Communications and Escorts Construction Equipment whereby, manufacture
of EPABX systems is being carried on by Escorts Communications and the
manufacture of construction equipment by Escorts Construction Equipment. They
are wholly owned subsidiaries of the company. Other subsidiaries are Escorts
Claas, Escorts Automotive, Escotel Mobile Communications, Escorts Hospital
& Research Centre, Escorts Agri Machinery Inc, Escorts Motors, Escosoft
Technologies Limited, IFS Solutions India Private Limited, Cellnext Solutions Limited,
Escorts Asset Management Limited and Escorts Securities Limited. Escotel Mobile
Communications Limited ceased to be a subsidiary with effect from 10th June,
2004.
The company decided to sell its entire equity
holdings in the Mobile Telecom Subsidiaries, viz. Escotel Mobile Communications
Limited and Escorts Telecommunications Limited to Idea Cellular Limited. With
this divestment the company will totally exited from Cellular Mobile
business.
During the year 2004-05, Escorts Telecommunication Limited (ETL) was awarded
licenses to operate in the telecom circles of Punjab, UP (East), Rajasthan and
Himachal Pradesh. Further EL had entered into an agreement with Idea Cellular
Limited to divest its shares in ETL in January 2004.
Escorts Construction Equipment Limited (ECEL), launched a 12T Vibratory Soil
Compactor in technical collaboration with Hamm AG, Germany to strengthen its
road compaction range during the year 2004-05.
EL signed a MoU with Long Manufacturing (NC) Inc, North Carolina, USA for a joint
venture company, Long Agribusiness LLC, for manufacture, assembly and sale of
tractors. It expects to expand its exports and establish a long term presence
in the international markets through a part equity ownership and management
participation. The company has entered into exclusive distributorship agreement
with Traksan for sale of the company's Farmtrac-60 tractors in Turkey.
As a part of new exports strategy, the company has decided
to buy distribution companies abroad for marketing tractors. It has proposed to establish one or more
companies abroad. The company's
overseas investment plan is in view to explore the possibility of establishing,
manufacturing, trading, joint ventures and other business operations
overseas. It has signed a MOU with Long
Manufacturing (NC) Inc., North Carolina, USA for a joint venture company, Long
Agribusiness LLC, for manufacture, assembly and sale of tractors. It expects to expand its exports and
establish a long term presence in the international markets through a part
equity ownership and management participation.
The company has entered into exclusive distributorship agreement with
Traksan for sale of the company's Farmtrac-60 tractors in Turkey.
The Escorts Group is investing Rs. 3000 millions in the
agri-machinery business. Of this, Rs. 2000 millions would be invested in the
tractor plant at Pune. It is also
setting up a joint venture with the Carraro Group of Italy, a world leader in
axles and transmissions. Carraro holds
a majority stake of 51% in the joint venture, Carraro India, while balance is
held by the company.
Subject had plans to raise $ 400 millions through a 30-year
bond issue in the overseas market to fund its ambitious plans of new foreign
acquisitions and to finance its domestic expansion programme. Besides, additional funds were required to
meet its investment needs to set-up a new manufacturing facility in Poland that
would cater to the needs of the European tractor market.
The company has embarked upon Business Process Reengineering
(BPR) in all its plants, to match global standards which resulted in a quantum
jump in quality and productivity parameters.
Escorts Heart Institute, the company's subsidiary is setting
up another 200-bed heart centre in Jaipur.
It is planning to leverage this brand equity without
comprising on the quality of medical services.
The Jaipur Hospital will be set up at a cost of Rs. 800 millions and is
expected to be completed soon. The
heart institute in Delhi and Jaipur will be in addition to the existing general
hospital at Faridabad.
Escorts Heart Institute (EHI), Escort's
subsidiary is setting up another 200-bed heart centre in Jaipur, it hopes to
set up a chain of cardiac care units in the country. It is planning to leverage
this brand equity without compromising on the quality of medical services. The
current facility in New Delhi is being expanded from 225 beds to 321 beds. The
heart institutes in Delhi and Jaipur will be in addition to the existing
general hospital at Faridabad. The Faridabad hospital capacity was also
expanded from 151 beds to 186 beds.
Escorts Heart Institute and Research Centre Limited (EHIRC), during the year
2004-05, acquired 100% paid up equity capital of Escorts Hospital and Research
Center Limited (EHRCL) running a multi-speciality hospital in Faridabad
(Haryana) and consequently, EHRCL became a subsidiary company of EHIRC.
During March 2005, Escorts Agri Machinery Inc, the wholly owned subsidiary of
the company has bought out its joint venture partner Farmtrac Tractors Europe
Spolka Zoo which is a Poland based company. The acquisition would enable the
company to expand its international base by increasing the reach of its
Farmtrac range of tractors into the extremely competitive Western European
markets and fast growing African, Asian and Latin American markets. The company
is also poised for aggressive growth in tractor exports as the announcement
comes close on the heels of the major order worth 8.56 million USD from the
Ghana government for tractors and other farm equipment.
Milestones
1947
After
partition the Registered office of the Company was shifted from Lahore to New
Delhi. The name of the Company was changed from Escorts (Agents) Private
Limited to Escorts Limited upon its conversion into a public limited liability
company.
1959
The company
was incorporated on 21st December, at Lahore. The Company manufactures motor
cycles, tractors, automotive parts, railway shock absorbers, agricultural
implements, X-rays equipment, heating elements, etc.
The company has been functioning as a representative of
well-known foreign manufacturers like M.A.N. Company of the USA, Massey
Ferguson of the United Kingdom and Canada and several others.
The company had an all-round sales and service organization
and has put up in conjunction with Garden Reach Workshops, Kolkata, a marine
service base for servicing ocean going vessels equipped with M.A.N. promulsion
and auxiliary engines. The company had a network of all-India dealers for sale
of products manufactured by itself and by its subsidiaries.
Capital structure reorganized. Equity and `A' Equity shares
converted into one class of Rs. 10/- each. 200 Preference shares were
subscribed for. 2,000 Preference and 17,500 No. of Equity shares allotted to
Mahle Komm-Ges, West Germany, against supply of machinery and technical
know-how. The remaining shares issued as rights. The new preference shares
redeemable after 5 years from the date of issue at the company's option.
1960
The Company commenced the manufacture of pistons and established
at Bahadurgarh, near Patiala, in collaboration with Mahle Komm-Ges Bad
Constant, West Germany.
The company undertook a phased expansion of the installed
capacity of pistons from 7,21,000 to 10,80,000 numbers per annum and the
installed capacity of piston pins from 6,60,000 to 9,90,000 numbers per annum.
1962
The company commenced commercial production of X-ray
equipment, railway shock absorbers and heating equipments in technical
collaboration with the Westinghouse Trading Company (Asia) Limited, New York,
Eheimmetall GmbH, West Germany and Eltra K. G., West Germany respectively.
1965
The Company
entered into a technical collaboration agreement for the manufacture of
transmission and gears for Escort tractors with Motoimport Warszawal, Poland, by
outright purchase of drawings.
The company
acquired near its existing plant at Faridabad, an area of 23 acres together
with 55,000 sq. fts. of built-up space at a cost of Rs 4.300 millions for
scientific research activities.
1968
1,229 Preference shares in 1968 and 336 Preference shares in 1969
subscribed for. In December, 1969, 580, 608 Bonus Equity shares issued in
proportion 1:4. 25,000 9.5% `A' Preference shares offered to public in August,
1969 (redeemable on 15-8-1981).
1970
580,608 Right
Equity shares issued at a premium of Rs. 4/- per share in the proportion 1:5.
1973
The company undertook to set up a 100% export oriented unit for the
production of X-ray equipment in the Santacruz project area, in collaboration
with Compagnie General de Radiologie who brought over Westinghouse
Manufacturing Company, under the name CGR India Limited, was incorporated.
1974
1741824 Bonus
Equity shares issued in the proportion 1:2.
1977
3135283 Bonus
Equity shares issued on 31-12-1977 in proportion 3:5.
1978
The following contracts were secured for execution (i) Farm implements
manufacturing plant, (ii) Bicycle assembly plant and (iii) Raw material sold to
support PVC plant.
1979
The company concluded an agreement with Andhra Pradesh Scooters Limited,
to produce Rajdoot motorcycles in their plants at Hyderabad for distribution in
Southern States. The company was to undertake, in due course, production of
scooters for Andhra Pradesh Scooters Limited, for distribution in Northern
States.
50,16,453 bonus equity shares issued in prop. 3:5. 1980
A new tractor
model Escort-345 was introduced in the first quarter of the year.
1981
Towards the
end of the year, Escort-355 tractor with three cylinder and 47 HP engine was
introduced.
1985
The Company commissioned a project for the manufacture of
1,50,000 - 100 cc motor cycles per annum in technical collaboration with Yamaha
of Japan.
Other products proposed to be manufactured were paddy
transplanters, a small size tractor in collaboration with Japan, boilers and
other equipment for collection of bio-mass from straw and other agricultural
wastes.
Government approval was obtained for a new range of road
construction machinery i.e. paver finishers butimen distributors, aggregate
spreaders, pavement profilers, etc. Approval was sought for the manufacture of
vibratory compactors in collaboration with Dynapac of Sweden.
During July the Company issued 20,00,000 - 15%
non-convertible debentures of Rs. 100/- each for Rs 200 millions and offered
them as rights to its resident Indian equity shareholders. The Company allotted
a further 10,00,000 - 15% debentures to retain the excess subscription. Rs
279.000 millions out of this issue of Rs. 300.000 millions was utilized for
working capital and the balance Rs 21.000 millions for normal capital
expenditure.
1986
The company undertook expansion of the installed capacity of
shock absorbers to 15 lakh numbers, in technical collaboration with Bilstein AG
of West Germany. The Company also introduced disk brakes for Indian Railways.
It was proposed to introduce tractors with engine capacity
below 1,800 cc for which excise duty exemption was announced.
The company entered into a technical collaboration agreement
with Mercury Marine (Brunswick Group), U.S.A. for the manufacture of 24,000
outboard motors per annum.
The company established facilities for the manufacture of
nearly 5,000 line sets of electronic telephone exchanges (EPABX) in
collaboration with Jeumant Schneider of France.
The company proposed to manufacture the fuel-efficient
Citroen 2 CV (6) car in collaboration with Citroen of France.
During February 15% secured redeemable debentures of the
aggregate value of Rs. 50 millions were privately placed with Army Group
Insurance Fund.
1987
During June the Company issued 10,00,000-12,5% fully
convertible debentures of Rs. 350/- each. Out of this, 3,00,000 debentures were
offered to the existing equity shareholders of the Company as rights in
proportion 1 Debentures : 71 No. of Equity shares (all were taken up).
Out of the remaining 7,00,000 debentures, the following
debentures were reserved for preferential allotment; (i) 50,000 debentures to
employees and working directors of the Company and (ii) 1,40,00 debentures to
non-resident Indians on repatriation basis. The remaining 5,10,000 debentures,
along with the unsubscribed portion of 1,03,085 debentures were offered for
public subscription during June.
Additional, 2,50,000 debentures were allotted to retain over
subscription. (75,000 debentures to equity shareholders of the Company and
1,75,000 debentures to the public).
As per the terms of the issue, on 31st December, Rs 175 was
converted into 5 fully paid-up equity shares of Rs 10 each at a premium of Rs.
25/- per share and on 30th June, 1988, the remaining Rs. 175/- was converted
into 5 fully paid-up equity shares of Rs 10 each at a premium of Rs 25 per
share.
80,26,325 bonus equity shares issued in proportion 3:5 and
were allotted on 30.3.1987. All Preference shares redeemed on 30.11.1987.
62,50,000 No. of equity shares allotted (premium Rs. 25/- per share) on
31.12.1987 in conversion of debentures.
1988
62,50,000 No.
of Equity shares issued (prem. Rs 25/- per share) in conversion of 12.5%
debentures.
1990
The company privately placed with financial institutions 35,00,000-14%
secured redeemable non-convertible debentures of Rs. 100/- each. The debentures
were redeemable in three equal instalments on the expiry of the 6th,
7th and 8th years from the date of allotment of the
debentures.
1994
The new products
i.e., 3 cylinder engine tractor and a 50cc Moped were launched.
1995
Escorts 40 H.P. and two models of Farmtrac, VIZ 50 and 60
H.P. tractors were introduced. The Company combined all synergistic product
activities in Escorts group of companies into independent and autonomous
entities.
Escorts Tractors Limited was merged with the company
effective 1st April. The shareholders issued 3 equity shares of the company for
every two equity shares of erstwhile Escorts Tractors Limited. Accordingly
227,75,452 No. of equity shares of the company was allotted.
Escorts JCB Limited, Escorts Class Limited, Escorts
Automotive Limited, Escorts Herion Limited, Escorts Communications Limited,
Escorts Construction Equipment Limited, Escorts Finance Investments and Leasing
Limited are all subsidiaries of the Company.
27,04,226 No. of Equity shares (prem. Rs 130.17) allotted to
promoters on conversion of warrants. 22,775,452 shares allotted to shareholders
of erstwhile Escorts Tractors Limited.
1996
The company
proposed to set up a joint venture company with equity participation from Mahle
GmbH (Germany). Piston manufacturing activity of the company was proposed to be
transferred to the said joint venture company.
The company
has decided to form a joint venture to manufacture shock absorbers. Company is
at advanced stage of negotiations with COFAP of Brazil.
Company has
decided to Spun off Escorts Hospital & Research Centre into a separate
corporate entity.
The Escorts
Employees Ancillaries Limited manufactures carburettors presently catering to
the needs of Rajdoot motorcycles. More components like nipples, spokes, etc.,
were being added with technical know-how from Japanese manufacturers.
56,56,381
No. of equity shares allotted on conversion of warrants at a price of Rs. 35/-
per share.
1,24,059
No. of equity shares allotted on conversion of warrants issued to the
shareholders of erstwhile, Escorts Tractors Limited at a price of Rs. 33.33/-
per share.
1997
The Company
undertook to set up a tractor plant with a capacity of 18,000 tractors p.a.
with a total cost of Rs. 2000 millions at Ranjangaon in Maharashtra.
The Company
has entered into a joint venture with Carraro SPA of Italy and promoted a joint
venture company under the brand name Carraro India Limited to manufacture
transmission to be used in its higher HP range of tractors at a cost of Rs.
1100 millions.
83,956
shares issued against warrants of erstwhile Escorts Tractors Limited. 28,17,456
No. of equity shares issued on conversion of warrants.
The company
has recently entered into a joint venture agreement with Yamaha Motor Company
Limited of Japan for setting up a new venture Escorts Yamaha Motor Limited
(EYML) on the basis of equal participation in capital.
The company has also signed a 50:50 joint venture agreement
with Mahle GmbH of Germany to manufacture automotive and railway pistons,
gudgeon pins. This venture would take over Escorts existing plant in Bangalore
and Patiala.
The Rs. 29000 millions Escorts group of companies is setting
up a Rs. 2500 millions industrial complex at Ranjangaon in Pune.
Hughes Escorts Communications (HECL) a joint venture between
Hughes Network Systems Inc (HNS) and Escorts, announced a tie-up with Datacraft
RPG to market satellite based wide area communications solutions. Under the
agreement, Datacraft RPG will be a marketing associate, offering HECL's V-sat
based communications network as part of the integrated solutions designed for
its customers.
The company’s transport and agri-equipment company, is
exploring the possibility of tying up with Yanmar of Japan for manufacturing
high-speed paddy transplanters in India. Escorts Yamaha Motor Limited (EYML),
launched a brand new motorcycle, the RXZ.
Escorts Yamaha Motor Limited (EYML), has been awarded the
ISO-9001 certificate by TUV Bayern for its manufacturing facility at Faridabad,
Haryana.
Carraro India Limited, a 51:49 joint venture between the
$200-million Carraro SpA of Italy and the Rs. 16500 millions. The company has
tied up its entire debt with IFC Washington and Exim bank.
1998
The company has signed an MoU with Long Manufacturing Inc.
Close on the heels of the introduction of sporty look Yamaha
RXZ late last year, SMM Escorts and Escorts Yamaha Motor Limited (EYML), the
joint venture between Escorts Limited and the Yamaha Company Limited of Japan
had launched yet another new model - Yamaha RX-135 - in Maharashtra.
The company, the flagship company of the Rs. 35000 millions
Escorts Group, which is engaged in the manufacture of tractors, has signed an
MoU (Memorandum of Understanding) with an American company at North Carolina to
acquire 49 per cent equity worth $9 millions.
Escorts Yamaha has launched Yamalube, a two-stroke motor
oil, developed by Yamaha Motor Corporation, Japan.
The company's turnover declined to Rs. 13197.000 millions
due to depressed market conditions.
The Company launched a new `Powertrac' range of tractors
with vastly improved engine performance, fuel consumption and meeting the
emission norms not only in the domestic markets but also complying with very
stringent EPA norms prescribed in the USA and other overseas markets.
10,96,672 No. of equity shares of Rs. 10/- each (premium Rs.
25/- per share) allotted against detachable warrants. 30,00,000 No. of equity
shares allotted against warrants which were issued to the employees under ESOS
on preferential basis. Another 70,505 No. of equity shares of Rs. 10/- each
(premium Rs. 25/- per share) allotted against detachable warrants.
1999
The company, the second largest tractor manufacturer in the
country, was set to launch its new tractor, Farmtrack 45, in the US next month
after a silent entry in the domestic markets in August last.
The fall in profits was mainly due to the labour strike
which lasted for 70 days and resulted in production loss.
2000
The company had approved the proposal to divest 24% equity
in Escorts Yahmaha Motor Limited (EYML), a joint venture between company and
Yamaha Motor Company (YMC), Japan, manufacturing a wide range of motorcycles in
India for the domestic market and exports.
The company has launched Esconet Services Limited. This
company is a 100% subsidiary of company.
The Company has launched its wheel type crop harvestor.
Yamaha Motor Escorts Limited the joint venture between Yamaha
Motor Company Limited of Japan and the Delhi-based Escorts group, has launched
a new 100cc four stroke motorcycle (Crux).
The company would be launching tractors with higher horse
power in the range of 60hp - Farmtrac 70 - by end of December, in a bid to push
its market share to over 22% in 2001.
On June 13th Escort withdraws from Yamaha Joint Venture.
Yamaha set to buy out Escorts share in their Indian joint venture, by June 30,
Yamaha India becomes the first 100% subsidiary in Asia for the Japanese
motorcycle company.
The Rs. 32000 millions, Delhi-based Escorts Group has
launched issuer India Solutions Private Limited, a wholly-owned subsidiary with
services to address the demand for information technology (IT) infrastructure
related corporate solutions.
2002
The company, on July 12, 2002 announced the divestment of
its equity in Escorts JCB Limited and Escorts Class Limited in favour of its
joint venture partners, J C Bamford UK and Class (Germany), respectively.
The company has entered into an agreement to sell its entire
60% equity holding in Escorts Class Limited for a consideration of 13.200
millions Euros (approx. Rs. 630 millions as per the current exchange rates).
SHARE
CAPITAL
The company proposes to issue 3611610 Convertible Share Warrants to the
promoters and/or person acting in concert, to part finance its Working Capital
needs, at a price to be determined in accordance with the Preferential Issue
Guidelines issued by Securities and Exchange Board of India (SEBI). The said Share
Warrants shall be converted into equal number of Equity Shares on or before 18
months from the date of allotment. Consequent upon the conversion, the paid up
capital of the Company shall stand increased to Rs. 758.4 millions.
Agri
Machinery Business
Industry Structure and Developments
After three years of decline, Tractor Industry grew by 11.5% in 2003-04 and
30.9% in 2004-05 to a level of 0.252 millions tractors. The Indian Tractor
industry had been growing at an average compounded annual growth rate of 8%
over the last 3 decades and it attained a peak of 0.270 millions tractors in
1999-2000. Since then, however, the industry showed a decline to a level of
0.172 millions tractors in the year 2002-03. The key factors that adversely
influenced tractor demand was below-normal monsoons for three years, i.e. from
2000-01 to 2002-03 and the high food grain stocks that led to market rates for
crops being depressed, thus adversely affecting farmers' incomes.
The growth of the industry over the last three decades resulted in entry of
several new entrants including all the major tractor multinationals. Today, the
industry consists of 14 manufacturers with an aggregate installed capacity of
approx. 0.450 millions tractors. The additional capacity created and the
decline in industry volumes from 0.270 millions tractors to 0.172 millions
tractors from 2000-01 to 2002-03 resulted in below 50% utilization of
capacities leading to severe cutthroat competition.
Industry is segmented by Horse Power of which the 30-40 HP segment is the
dominant one due to small and fragmented holdings. Geographically, Northern
India (Punjab, Haryana, Uttar Pradesh and Rajasthan) accounts for about 50% of
total tractor sales. The Company enjoys a relatively better market share in this
geographical territory.
FINANCIAL PERFORMANCE
The Company has suffered an operational cash loss of Rs. 1697.400 millions as
the Company could not participate in the growth of tractor industry mainly on
account of liquidity problems faced by the Company resulting in lower
production levels. Tractor industry registered growth of 32% in the financial
year 2004-05 over the financial year 2003-04. This operational loss has been
more than compensated by income from sale of investments of Rs. 5057.300 millions
as against loss on sale of investments of Rs. 1850.200 millions recorded in the
previous period. In view of extra ordinary income from Healthcare divestment,
the Company took this as an opportunity to provide for diminution in value of
investments and its impaired assets to an extent of Rs. 2430.200
millions.
Consequentially, the Company has recorded Profit before tax of Rs. 310.200
millions and Profit after tax of Rs. 390.900 millions in the current period as
compared to Loss before tax of Rs. 4217.400 millions and Loss after tax of Rs.
3135.400 millions during the previous period.
Subsidiaries
Escorts Telecommunications Limited
The Company had entered into an agreement with Idea Cellular Limited to divest
its share in ETL in January 2004. Requisite DOT approvals for the sale are yet
to be received, after obtaining which the transfer of shares will happen.
Escorts Construction Equipment Limited
Escorts Construction Equipment Limited (ECEL) has reported significantly
improved performance in the FY 2004-05, by achieving a growth of 37% in the
turnover in FY 2004-05 over last fiscal year. During FY 2004-05, ECEL has
reported a Profit After Tax (PAT) of Rs.178.000 millions including Deferred Tax
Savings of Rs.131.000 millions. ECEL has been able to effectively consolidate
on the turnaround reported in the last fiscal year.
ECEL had introduced a number, of 'application specials' cranes during the year
to take advantage of an increasing material handling and construction market.
The Company also enhanced its manufacturing capacity to more than double,
through associates' actions.
Material handling equipment market has shown steady growth in the last fiscal
as well. Road construction equipment segment has started signs of growth in the
current fiscal year 2005-06 after remaining subdued for some period in the
past. ECEL introduced a 12T Vibratory Soil Compactor into the market,
manufactured in collaboration with Hamm AG, Germany. This addition to its
existing range of compactors will ensure a growth for the company in the road
segment also.
ECEL is expected to report sizably improved performance both in terms of
top-line and bottom-line in the current FY 2005-06.
Escosoft Technologies Limited
The Accounts of 31st March 2005 represent Operating Income without Animation
and IFS business, since the same had been hived off into separate
Companies.
The Company has been able to consolidate its Facilities Management Business by
adding new orders from CBSE for result processing and Eli lily for payroll
processing. This has opened up opportunities to the Company to qualify for
getting orders from other Government/Non-Government educational
Institutes.
The Company has MTEs which are Type Approved by the Telecom Authority. These
are likely to be implemented in leading Telecom Projects for which Tenders have
been bid along with reputed system integrators.
The wholly-owned subsidiary of Company 'Escotoonz Entertainment Pvt. Limited.'
which was earlier a division of Escosoft Technologies Limited, has successfully
completed the Project 'King-II' which was applauded in MIPCOM in France. The
Company is currently engaged in another project named 'Cyberdodo'. The Company
has been able to get Venture Capital Fund of Rs.20.000 millions from Rajasthan
Asset Management Company Private Limited during the Financial year under
review. The Company is in advanced stage of negotiations with some
International Clients for Animation serials/films.
IFS Solutions India Private Limited
The wholly-owned subsidiary of Escosoft Technologies Limited, 'IFS Solutions
India Private Limited' had bagged a large deal with HAL for implementing its
ERP package. This Company has been able to penetrate the domestic market
successfully, despite stiff competition.
The Sales and income for the financial year under review were Rs.76.539
millions as against Rs.46.933 millions for the previous financial year
registering an increase of 63%. The profit before tax (after interest and
depreciation charges) of Rs.15.594 millions and the profit after tax of
Rs.7.874 millions for the financial year under review as against Rs.0.760
millions and Rs.4.394 millions respectively for the previous financial year,
improved by 1950% and 79% respectively.
Cellnext Solutions Limited
The Total Sales income for the financial year under review were Rs. 62.037
millions as against Rs. 38.754 millions for the previous financial year
registering an increase of 6000. The profit after tax in the current year is
reported at Rs.3.580 millions for the financial year under review as against
loss of Rs. 38.299 millions in the previous financial year.
The Company is an established market leader in providing complete wireless IT
and internet solutions and services to all leading telecom operators and enterprises.
Company's core competence revolves around GSM & CDMA over data technologies
like SIMS, MMS, GPRS, IVR and development of wireless applications over the
same.
CA Escosoft
During the financial year under review there were no operations in the Company.
Directors have decided to wind up the Company in the coming year.
Escorts Asset Management Limited
Escorts Asset Management Limited is the investment manager to Escorts Mutual
Fund and is successfully managing eight schemes covering a broad spectrum of
equity and debt segment as well as money market instruments. The schemes have
provided excellent returns to the unit holders during the year.
Escorts Securities Limited
Escorts Securities Limited is a SEBI registered intermediary in the capital and
debt markets as a member of National Stock Exchange of India Limited in the
capital market as well as Futures and Options segments. Besides being Category
I Merchant Banker it is also a Depository Participant with National Securities
Depository Limited. The Company has also been granted license by SEE for acting
as Portfolio Manager. In order to extend its network, Escorts Securities
Limited has opened many new branches during this period.
The company
entered into a long-term technical collaboration with Kayaba, of Japan - a
world leader in shock absorber business.
The company
has joint ventures with:-
·
Goetze
(India) Limited
·
Hughes
Escorts Communications Limited
·
Escotrac
Finance & Investment Private Limited
·
Escorts
Finance Investment & Leasing Private Limited
·
Escorts
Auto Components Limited
·
Escorts
Finance Limited
·
Yamaha
Motor Private Limited (formerly Yahama Motor Escorts Limited)
·
Long
Agri Business LLC, U.S.A.
·
Pol-Mot
Escorts Spoolka z.o.o.
·
Carraro
India Limited
·
Escorts
Mahle Limited
·
Escorts
JCB Limited
·
Escosoft
Private Limited
·
Escorts
Motors Limited
The company
is in trade terms with :
Agro
Engineering Works
Asiad
Engineering Works
Allena Auto
Industries Limited
Amar Udyog
Amar
Engineering Works
Auto Trac
Engineers
A. R.
Industries Private Limited
Alhind
Metal Industries
Auto &
General Castings
B. S.
Industrial Company
BVA Auto
Private Limited
Brytax Auto
Industries Limited
Centrifugal
Casting Company
Coolwels
Automobile Engineers
A. R.
Industries Private Limited
Super Alloy
Cast
Tightwell
Fastners
D. P. Auto
Industries
Duro
Engineers Works
Delite Auto
Products
Delhi Forge
Limited
Delight
Pressings
Lakhani
Rubber Works
Lumax
Filters Private Limited
Modern
Machine Tools
Hi-Lux
Automotive Private Limited
Jayem Auto
Industries Private Limited
Bhatia
Electricals Private Limited
Bajwa
Appliances Private Limited
Metal
Pressing & Engineering Works
A.J. Tech
Equipment
A.P.
Engineering
Akme
Engineering Works, Kolkata
Akai Metal
(India)
Jaico Steel
Fasterners Limited
Jayem Auto
Industries Private Limited
Kamal
Enterprises
Kunaal
Automotive Components
Royal Tools
(India)
S K Tools
S K
Engineering
Saroj Iron
Industries
Sawan
Industries
Sethi
Industries Corporation
Spire India
Pee Cee
Engineering
Rahul
Induction Private Limited
Vallabh
Industries
New Pragati
Udyog
Nobel
Engineering Works
Amritsar
Machine Tools
Shivon
International
Steerwels
Motoren
Industries
Luxmi
Automats
Padam
Engineers
Delight
Pressings
J. K.
Engineers
Jai
Industries
Roop
Polymers Limited
Yogesh
Engineering Works
The company’s
fixed assets of important value include land, buildings, plant & machinery,
furniture & fixtures and vehicles.
WEBSITE DETAILS
The First Season
The timing was perfect.
The 60s ushered in the era of the Green Revolution in India. The call of the times asked for pioneering
technology. The stage was set and they
cast the first die. The year was 1960
and their parent company, Escorts, set up the strategic Agri Machinery Group to
venture into tractors. By 1965, they
rolled out on to the field their first batch of tractors under the brand name
of Escort. The sons of the soil
welcomed us with open arms. And the
relationship has grown manifold in the decades that followed.
Their place under the sun…
Today they are setting the standards in tractor manufacturing. Their national share stands at 20%. They have a whole stable of tractors in
various HP categories, to meet the ever increasing demands of farming. The seeds planted in India in the 60s are
today being reaped across the world.
Their presence is both national and international. In India alone, they have over 600000
tractors toiling under the sun. their
nationwide network is the largest with more than 600 dealers, 100 parts
stockists and 30 area offices.
Internationally they are exporting to a number of countries. They have tie-up with the Italian company
Carraro S.p.A for axles and transmissions suiting Indian conditions.
Investing for future
harvests…
They are an ISO-9001 accredited company. Their drive towards their vision has seen us
investing a large amount of resources towards the modernization of their
manufacturing facilities and enhancement of R & D capabilities, as also
enabling their dealers to serve their customers better.
NEWS
December 13, 2000
Escorts Limited - Analyst Meet
Given the current state of affairs in the automotive
industry, it was a surprise to see Escorts inviting analysts for an analyst
meet cum plant visit in Faridabad. It was a day-long program, which began with
a visit to the company's tractor plant. Later there was a presentation on the
company's future strategy in its core business of agricultural machinery.
Escorts believes that given the low tractor density of 0.4
unit per 1000 hectares in India (as compared to a figure of 0.9 in developing
countries and 1.4 worldwide), the future growth prospects for the tractor
industry is good. The company expects action in the medium and heavy powered
segments after the exercise to rationalize excise duty rates during the last
Union Budget. As part of its expansion drive, the company will focus its energy
at increasing its present dealer network of 400. The thrust will be in the
southern regions where it has a minor share of about 5%. This is also the
region, which has been witnessing a high growth in tractor sales in the past
few years.
Escorts products encompass a wide range of tractors starting
from the 25-30 HP segment to the 70-75 HP segment. It sells tractors under the
brand names of Escort (25-35 HP economy range), Powertrac (30-45 HP value
range) and Farmtrac (30-75 HP premium range). For wetland operations, the
company has introduced a new straight axle tractor in August 2000. In addition,
Escorts also manufactures combine harvesters in collaboration with Class AG of
Germany and paddy transplanters in collaboration with Yanmar of Japan. It has a
subsidiary with Carraro SpA of Italy to manufacture transmissions for higher HP
tractors.
Export of tractors is another thrust area. The company has
two JVs, one in the USA and another one in Poland to market its tractors. It
has also finalized distribution arrangements in Turkey, South Africa and
Australia. Escorts exported a total of 1,685 tractors in FY2000. The company
targets exports of 2,350 tractors in FY01 and 3,600 units in FY02.
Escorts will be focusing on research and development
activities with an objective to develop products ahead of competition for
domestic and international markets. The company intends to spend Rs625mn
towards this over a period of three years. The company has already launched a
BPR initiative. This has already helped reduce inventory and non-value added
activities by 70%. Productivity also improved by 50%.
The company's long term vision includes becoming a market
leader in the tractor industry by 2004 by offering a full range of mechanized
solutions for Indian agriculture. Its forecasts for industry volumes and market
share is as shown in the table below –
|
Year |
FY2000 |
FY01E |
FY02E |
FY03E |
|
TIV* |
258,990 |
235,000 |
250,000 |
270,000 |
|
Sales |
52,010 |
50,000 |
55,000 |
62,000 |
|
Mkt share |
20.1% |
21.1% |
22.0% |
23.0% |
* - Total industry volumes
Networking
Escorts has also joined hands with a number of external
agencies and NGOs working in the field of community development. A complete
programme on "quality reproductive health care services", covering 25
villages in the Faridabad District is being run with the able support and help
of "The Population Foundation of India". Escorts also works in
collaboration with the National Association for the Blind in the field of
prevention of blindness. This programme includes activities i.e. administering
vitamin A, free screening of the school going children, distribution of glasses
and the like. Besides this Escorts also works in close collaboration with other
NGOs, as and when required, Escorts also allocates funds for other agencies,
working in the field of improving rural environment, to run income generation
programme, and upliftment of the rural poor.
Future Vision
The focus of each activity has been charging from time to
time depending upon the local needs. The focus at present is to stregthen the
existing programme as well ass to extend the services to a larger mass.
Faridabad is an industrial town. In the last few decades there has been a
massive influx of people to the town from various parts of the country especially
from rural Haryana. As a result of which large number of Jhuggi clusters,
colonies have come up. Escorts is engaged in ceaseless attempts to reach out to
each and every beneficiary and hopes to receive the support and assistance from
other developmental agencies as well.
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.44.86 |
|
UK Pound |
1 |
Rs.84.97 |
|
Euro |
1 |
Rs.57.59 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
63 |
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 |