MIRA
INFORM REPORT
|
Report Date : |
16.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
KEC INTERNATIONAL
LIMITED |
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Registered
Office : |
3rd
Floor, Transasia House, Chandivali Studio Road, Chandivali, Mumbai – 400 072,
Maharashtra, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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CIN No.: [Company
Identification No.] |
L45200MH2005PLC152061 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMK11457F |
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PAN No.: [Permanent Account No.] |
AAACK4279J |
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Date of
Incorporation : |
07/05/1945 |
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Com. Reg. No.: |
11-4421 |
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Legal Form : |
Subject 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
Towers & Structurals. |
RATING &
COMMENTS
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MIRA’s Rating
: |
A |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit
Limit : |
USD 7000000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old
and well established company engaged in design, manufacture and erection of
Power Transmission Line towers for electric power. Its performance has not been
satisfactory for quite some time and it has incurred substantial losses.
However, during the financial year 2004-2005, the company performed well and
achieved better results. Trade relations are reported as fair. Payments are
currently slow but correct. It can be
considered normal for business dealings of medium size at usual trade terms
and conditions. |
LOCATIONS
|
Registered
Office : |
3rd
Floor, Transasia House, Chandivali Studio Road, Chandivali, Mumbai – 400 072,
Maharashtra, India |
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Tel. No.: |
91-22-56972777
/28204045 |
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Fax No.: |
91-22-56972799/28204052 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Ceat Mahal, 463,
Dr. Annie Besant Road, Worli, Mumbai – 400 030, Maharashtra, India |
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Head Office : |
32, Kamani
Chambers, R. K. Kamani Marg, Ballard Estate, Mumbai – 400 038, Maharashtra,
India |
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Factory 1 : |
Located At : v
B-190, Industrial Area, Butibori – 441 108, Maharashtra v
Jhotwara, Jaipur – 302 012, Rajasthan v
Nagpur, Maharashtra v
Chennai, Tamilnadu |
DIRECTORS
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
|
Address : |
14-16, Patazzo B.
G. Khar Marg, Mumbai – 400 008, Maharashtra |
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Tel No.: |
91-22-23630872 |
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Date of
Birth/Age : |
45 Years |
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Qualification
: |
Arts Graduate and
BA, MBA (Geneva) |
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Other
Directorship : |
Corporation of Maharashtra Limited (SICOM) |
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Name : |
Mr. R. D. Chandak |
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Designation : |
Managing Director |
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Address : |
B/44, Ruia Park,
47, J. R. Mahatro Road, Juhu, Mumbai – 400 049, Maharashtra |
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Date of
Birth/Age : |
58 Years |
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Qualification
: |
M. Com., FCA |
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Name : |
Mr. Anant Swarup Gupta |
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Designation : |
Director |
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Address : |
B. Gulmohar,
Kalpatary CHS Vile Parle (West), Mumbai – 400 046, Maharashtra |
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Tel No. : |
91-22-26106183/28108224 |
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Qualification
: |
M.B.F.I.A.
(London) |
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Age : |
76 Years |
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Name : |
Mr. Sharad.
Madhav Kulkarni |
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Designation : |
Director |
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Date of
Birth/Age : |
64 Years |
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Qualification
: |
Bechelor of
Engineering : FIE (India) F
Institute of Directors (UK) Fellow-Institute of Management (UK) |
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Other
Directorship: |
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Name: |
Mr. Gulu Lalchand
Mirchandani |
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Designation: |
Director |
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Address: |
22, Paras, Little
Gibs Road, Malabar Hill, Mumbai – 400 006, Maharashtra |
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Age: |
60 Years |
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Qualification: |
B. Mechanical |
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Name: |
Mr. Ajit
Teckchand Vaswani |
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Designation: |
Director |
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Address: |
502, Solitalre Hirandani
Gardens, Powai, Mumbai – 400 076, Maharashtra |
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Age: |
65 Years |
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Qualification: |
CA, CS |
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Name: |
Mr. Jotindra
Mansukhlal Kothary |
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Designation: |
Director |
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Address: |
16 A, Thakur Niwas,
3rd Floor, 173, J. N. Tata Road, Churchgate, Mumbai – 400 020, Maharashtra |
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Age: |
69 Years |
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Tel No.: |
91-22-2881537 |
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Qualification: |
B. Com LLB, MBA
(USA) |
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Name: |
Mr. Murli
Ramchandran |
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Designation: |
Director |
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Address: |
CEAT Mahal, 463,
Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra |
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Age: |
42 Years |
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Qualification: |
B. E. (Hons.), M. M. S., M.S. |
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Name: |
Mrs. Sobha Singh
Thakur |
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Designation: |
Director |
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Address: |
1161, Abdul Court,
Flat No. 20, Suryavanshi Marg, Dadar, Mumbai – 400 028, Maharashtra |
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Age: |
74 Years |
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Qualification: |
M. Com., CAIIB |
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Name: |
Mrs. Neeta
Mukherjee |
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Designation: |
Director
(Nominee- ICICI Bank Limited) |
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Address: |
801, Radhika Apartment,
Off Gayani Road, Prabhadevi, Worli, Mumbai – 400 025, Maharashtra |
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Age: |
38 Years |
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Qualification: |
B. A. (Hons) –
Economics PGDM (IIM Kolkata) |
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|
Name : |
Mr. Dilip G
Piramal |
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Designation : |
Additional
Director |
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Name : |
Mr. Vinayshil
Gautam |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Vimal Kejriwal |
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Designation : |
Chief Financial Officer |
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Date of
Birth/Age : |
43 Years |
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Qualification
: |
B. Com., F.C.A., F.C.S., D.T.M. |
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Experience : |
22 Years |
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Date of
Appointment : |
18.09.2002 |
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Previous
Employment: |
Lazard India Limited – Director |
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Name : |
Mr. Ch. V.
Jagannadha Rao |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Indian Promoters |
12916600 |
34.27 |
|
Bodies Corporate |
1453717 |
3.86 |
|
FIIs |
4987650 |
13.23 |
|
Financial
Institutions/ Banks |
177238 |
0.47 |
|
Insurance
Companies |
3635122 |
9.65 |
|
Individual
shareholders holding nominal share capital up to Rs.0.100 million |
4360075 |
11.57 |
|
Individual
shareholders holding nominal share capital in excess of Rs.0.100 million |
345807 |
0.92 |
|
Other (Foreign
Banks) |
374 |
0.00 |
|
Mutual Funds
& UTI |
9631767 |
25.56 |
|
NRIs/ OCBs |
24585 |
0.30 |
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Clearing Members |
24585 |
0.07 |
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Directors and Relatives |
40826 |
0.11 |
|
Total |
37685854 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturers of
Towers & Structurals. |
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Exports to : |
UAE, Saudi,
Lebanon, Lirya, Iraq, Iran, Kenya, Ethoria, Tunisia and Algeria. |
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Terms : |
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Selling : |
L/C terms |
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Purchasing : |
L/C terms |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Towers &
Structurals |
Tonnes |
74000.00 |
58000.00 |
102415 |
|
Scrap |
-- |
-- |
-- |
-- |
GENERAL
INFORMATION
|
No. of
Employees : |
1900 |
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Bankers : |
v Bank of India v ICICI Bank Limited v Canara Bank v Central Bank of India v State Bank of Bikaner and Jaipur v Dena Bank v Allahabad Bank v State Bank of Hyderabad v Development Credit Bank Limited v Punjab National Bank v Bank of Baroda v Abu Dhabi Commercial Bank Limited v The Hongkong and Shanghai Banking
Corporation Limited v SBI Commercial and International Bank
Limited v Standard Chartered Bank v Deutsche Bank AG v Industrial Development Bank of India
Limited v Export-Import Bank of India v Syndicate Bank v UCO Bank v Andhra Bank v Barclays Bank PLC v Corporation Bank v Yes Bank Limited |
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Facilities : |
Secured Loans (Rs. In millions):
Unsecured Loans :
Secured Loans: Loans and
advances from Banks a) Rs. 764.240 Millions
secured by first charge by hypothecation of tangible movable assets
(including book debts) and is further secured by mortgage of the Company's
immovable properties at Butibori and Jaipur. b) Rs. 316.315
Millions secured by first mortgage of the Company's immovable properties at
Jaipur including all movable both present and future subject to prior charge
referred to in (a) above on movable assets. c) Rs. 1072.410
Millions guaranteed by a bank, which in turn is secured by security, stated
against (a) above. d) Rs. 402.000
Millions being commercial paper issued against stand-by facility from certain
banks which in turn is secured by security stated against (a) above. Maximum
balance outstanding any time during the period is Rs. 613.000 Millions. e) Rs. 27.370
Millions secured by a first charge by way of hypothecation of specific
movable plant and machinery, equipment and other assets acquired/ to be
acquired by the Company under the Asset Credit Scheme of IDBI together with
machinery spares, tools and accessories and other movables. f) Rs. 514.007 Millions secured by hypothecation of whole of movables (save and except book debts) and equitable mortgage of the Company's immovable properties at Butibori, Nagpur and subject to prior charge referred to in (a) above on movable assets. |
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Banking Relations : |
Satisfactory |
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Auditors : |
A. F. Ferguson
& Company Chartered
Accountants Mumbai-400001,
Maharashtra |
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Associates: |
v EMI Transmission Limited v CESC Limited --Power Generation and Distribution v Ceat Limited --Tyres v RPG Cables Limited --Power and Tele Cables v RPG Life Sciences --Pharmaceuticals v RPG Transmission Limited --EPC Contract for Power Transmission Line v Zensar Technologies --Information Technology v Sa Re Ga Ma --Entertainment v Food World --Retail Chain v Music World --Retail Chain for Music v Phillips Carbon Black Limited --Industry Carbon Black v RPG Cellular --Industry Cellular & Services |
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Subsidiaries: |
v Bespoke Finvest Limited v KEC Campha Limited, Vietnam v KEC International Servicos do Brasil
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Redeemable
Preference Shares |
Rs.100/- each |
Rs.
150.000 millions |
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.
600.000 millions |
|
|
TOTAL |
|
Rs.750.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1299966 |
Zero Coupon Non Convertible Redeemable Preference Shares |
Rs.100/-
each |
Rs.129.997
millions |
|
37685854 |
Equity Shares |
Rs.10/- each |
Rs.376.859
millions |
|
|
Total |
|
Rs.506.856 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
506.856 |
506.356 |
552.606 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
1365.088 |
2742.070 |
2162.297 |
|
|
4] Profit and
Loss Account |
0.000 |
0.000 |
(339.690) |
|
NETWORTH
|
1871.944 |
3248.426 |
2375.213 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3325.288 |
4749.213 |
5576.038 |
|
|
2] Unsecured
Loans |
1.043 |
34.921 |
299.008 |
|
TOTAL
BORROWING
|
3326.331 |
4784.134 |
5875.046 |
|
|
DEFERRED TAX
LIABILITIES |
208.883 |
64.011 |
77.033 |
|
|
|
|
|
|
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TOTAL
|
5407.158 |
8096.571 |
8327.292 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
4230.293 |
1409.901 |
1456.933 |
|
Capital work-in-progress
|
59.643 |
152.172 |
39.790 |
|
|
|
|
|
|
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INVESTMENT
|
204.761 |
874.111 |
865.666 |
|
DEFERREX TAX ASSETS
|
7.738 |
192.025 |
424.031 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1249.000 |
1064.437 |
507.757 |
|
|
Sundry Debtors
|
7260.390 |
8440.154 |
5993.108 |
|
|
Cash & Bank Balances
|
636.116 |
1660.691 |
403.349 |
|
|
Loans & Advances
|
1618.721 |
4960.629 |
4340.401 |
Total Current Assets
|
10764.227 |
16125.911 |
11244.615 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
9723.157 |
10518.461 |
5616.758 |
|
|
Provisions
|
136.347 |
142.364 |
86.985 |
Total Current Liabilities
|
9859.504 |
10660.825 |
5703.743 |
|
Net Current Assets
|
904.723 |
5465.086 |
5540.872 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
3.276 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
5407.158 |
8096.571 |
8327.292 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
17272.490 |
|
8269.385 |
|
|
Other Income |
4.167 |
|
|
|
|
Total Income |
17276.657 |
12370.768 |
8269.385 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
764.695 |
676.395 |
115.841 |
|
|
Provision for Taxation |
271.686 |
253.769 |
136.916 |
|
|
Profit/(Loss) After Tax |
493.009 |
422.626 |
252.757 |
|
|
|
|
|
|
|
|
Total Earnings |
9259.874 |
N.A. |
6787.998 |
|
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|
|
|
|
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|
Imports : |
|
|
|
|
|
|
Raw Materials |
613.156 |
NA |
|
|
|
Stores & Spares |
5.324 |
NA |
151.824 |
|
|
Capital Goods |
35.810 |
NA |
|
|
Total Imports |
654.290 |
N.A. |
151.824 |
|
|
|
|
|
|
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|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
8893.991 |
|
|
|
|
Salaries, Wages, Bonus, etc. |
837.709 |
|
|
|
|
Interest |
592.788 |
11694.373 |
8239.807 |
|
|
Depreciation & Amortization |
269.447 |
|
|
|
|
Other Expenditure |
5918.027 |
|
|
|
Total
Expenditure |
16511.962 |
11694.373 |
8239.807 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1st Qtr.) |
30.09.2006 (2nd Qtr.) |
31.12.2006 (3rd Qtr.) |
|
Sales
Turnover |
4123.600 |
4676.600 |
5722.700 |
|
Other
Income |
0.300 |
1.800 |
1.600 |
|
Total
Income |
4123.900 |
4678.400 |
5724.300 |
|
Total
Expenditure |
3693.300 |
4105.400 |
4918.200 |
|
Operating
Profit |
430.600 |
573.000 |
806.100 |
|
Interest |
118.400 |
156.900 |
149.200 |
|
Gross
Profit |
312.200 |
416.100 |
656.900 |
|
Depreciation |
87.800 |
83.600 |
82.500 |
|
Tax |
37.600 |
78.400 |
158.400 |
|
Reported
PAT |
145.600 |
216.800 |
382.100 |
200606 Quarter 1
Notes:
1 The above results
were reviewed by the Audit Committee in its meeting held on July 28, 2006 and
approved by the Board of Directors at its meeting held on July 31, 2006. 2 The
statutory auditors of the Company have conducted a 'Limited Review' of the
above unaudited financial results for the quarter ended June 30, 2006. 3 The
Company has adopted Accounting Standard (AS) 15 (revised 2005) - 'Employee
Benefits' issued by the Institute of Chartered Accountants of India which is
applicable w.e.f. April 1, 2006. The impact of this on the results for the
quarter is not material. The adjustment against the opening balance of the
General Reserve, under the transitional provisions of the above referred
Standard, would be made at the year end. 4 The Company is primarily engaged in
the Transmission Lines Business. As such there is no separate reportable
segment as defined by Accounting Standard 17 issued by the Institute of
Chartered Accountants of India. 5 There were no complaints pending at the
beginning of the quarter. Two complaints received during the quarter have been
resolved as on June 30, 2006.
200609 Quarter 2
Notes: 1
The above results
were reviewed by the Audit Committee and approved by the Board of Directors at their
meeting held on October 31, 2006. 2 The statutory auditors of the Company have
conducted a 'Limited Review' of the above unaudited financial results for the
quarter and half year ended September 30, 2006. 3 The Company is primarily
engaged in the Transmission Lines Business. As such there is no separate
reportable segment as defined by Accounting Standard 17 issued by the Institute
of Chartered Accountants of India. There were no complaints pending at the
beginning of the quarter. No complaints were received during the quarter ended
September 30, 2006.
200612 Quarter 3
Notes
Expenditure
Includes (Increase)/Decrease in Stock in Trade Rs 85.90 million Consumption of
Raw Materials Rs 2833.60 million Erection & Subcontracting Expenses Rs
1168.90 million Staff Cost Rs 244.20 million Other Expenditure Rs 585.60
million Tax Includes Provision for Current Tax Rs 155.50 million Deferred Tax
Rs 33.90 million Fringe Benefit Tax Rs 2.90 million EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 05 Complaints disposed off during the quarter 05 Cmplaints
unresolved at the end of the quarter Nil 1. The above results were reviewed by
the Audit Committee and approved by the Board of Directors at their meeting
held on January 12, 2007. 2. The results of the quarter and nine months ended
December 31, 2006 are subject to 'Limited Review' by the Statutory Auditors of
the company. 3. The Company is primarily engaged in the Transmission Lines
Business. As such there is no separate reportable segment as defined by
Accounting Standard 17 issued by the Institute of Chartered Accountants of
India. 4. Previous period's figures have been regrouped / rearranged wherever
necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.78 |
2.55 |
3.40 |
|
Long Term Debt Equity Ratio |
0.58 |
2.50 |
3.11 |
|
Current Ratio |
0.88 |
1.67 |
1.91 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.63 |
6.79 |
3.56 |
|
Inventory |
13.07 |
15.77 |
17.15 |
|
Debtors |
2.25 |
1.73 |
1.38 |
|
Interest Cover Ratio |
1.79 |
1.74 |
1.38 |
|
Operating Profit Margin (%) |
11.30 |
13.63 |
17.38 |
|
Profit Before Interest and Tax Margin (%) |
9.77 |
12.82 |
16.14 |
|
Cash Profit Margin (%) |
4.31 |
4.22 |
7.33 |
|
Adjusted Net Profit Margin (%) |
2.79 |
3.41 |
6.09 |
|
Return on Capital Employed (%) |
30.69 |
21.14 |
16.02 |
|
Return on Net Worth (%) |
26.12 |
18.95 |
27.90 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs.594.50 |
|
Low |
Rs.575.00 |
LOCAL AGENCY
FURTHER INFORMATION
The company’s
fixed assets of important value include Freehold & Leasehold Land,
Buildings, Plant & Machinery, Computers, Furniture & Fixtures,
Electrical Installations and Vehicles.
The company is in
trade terms with :-
v Hind Enamel Works
v Nike Industries
v R. S. Industries (Rolling Mills) Limited
v Bharat Wire Ropes
v Shree Krishna Rolling Mills
v Modern Engineering Works
v A. K. Engineering
v Vibha Star Products
v Jaideep Engineering
v Shree Vyanteshwara Form (India) Private
Limited
v Z. M. Engineering Works
v Anil Industries
v Ajay Engineering Works
v Gadodia Traders
v Giriraj Industries
v Johns Electric Company Private Limited
v Shree Amica Industries
v Shree Timber Industries
v Soni Dies and Engineering Works
v Shree Jai Durga Saw Mills
v Sanvijay Re-rolling
v Accme (Urvashi Pump) Engineers Private
Limited
v Badjayta Lime Suppliers
v Jyoti Industries
v Auto Tech
v Star Chemical Industries
v Adheswara Chemicals (Private) Limited
v Ravi Engineers
v Nexo Industries
v Naveen Metal Industries
Performance
During the period
the company has recorded an impressive performance with a turnover of Rs. 17686.100
millions and net profit of Rs. 493.000 millions. This commendable performance
has set the company on a path of rapid growth and many new initiatives have
been taken to improve the operating efficiencies as well. During the period,
the company was able to scale up its operations in the international as well as
domestic business segment.
The company
launched a series of measures designed to augment capabilities in project
management, improve inter-unit co-ordination, optimize finance cost and widen
procurement base. These initiatives have contributed significantly to the
stabilization of key business parameters and an overall enhancement of
efficiencies in project execution, the main driver of the company's
performance.
As part of its long
term strategy, the company is also expanding the range of its products and
services to include distribution network and is executing large Rural
Electrification Projects in India & International markets and providing
services like Satellite and GPRS Surveys.
Order Book
The current order
book of the company stands at about Rs. 25000 millions which is executable over
a period of two years. It is noteworthy that the company has been able to
maintain a healthy order book position even though the execution rate of recent
projects has been high.
Industry Overview and Future Outlook
Faced with a
substantial deficit in availability of power in most regions of the country,
the Government of India has stepped up efforts towards a fast-track development
for the power sector. This target will require increasing the installed
generating capacity and will also necessitate greater focus on efficient inter
state and intra state distribution of power.
The recent
announcement with regard to setting up of five ultra mega power projects is a
step in this direction.
The 10th and 11th
Five Year Plans focus on the creation of a national grid for adequately
augmenting transmission capacity through creation of "Transmission Super
Highways". The Rajiv Gandhi Grameen Vidyutikaran Yojana is a comprehensive
step undertaken by the Government of India to provide electricity
to all villages in
the country. These initiatives offer greater opportunities for the company and
it will be its endeavour to adequately participate in the domestic market.
A growing demand
emanates from Africa, Middle East Afghanistan and the CIS countries for power
transmission/ distribution infrastructure. The company is also exploring the
possibilities of tapping business opportunities in developed countries like United
States of America and parts of Europe.
These opportunities
would also help the company to achieve sustained growth.
Composite Scheme of Arrangement
KEC Infrastructures
Limited (formerly KEC International Limited) which was primarily engaged in
power transmission business, had proposed a scheme for restructuring of its
business segments. The scheme envisaged the delinking of its power transmission
business from its investments and other non-business assets and in the process
enabled the creation of a company with focus on Power transmission business
aide- by * robust balance sheet that could lead to further enhancement in value
for all stakeholders.
Accordingly a
Scheme of Arrangement ("the Scheme") between KEC International Limited,
KEC Infrastructures Limited, KEC Holdings Limited, Bespoke Finvest Limited and
their respective shareholders was proposed.
After obtaining all
the necessary statutory approvals and compliances the Scheme became effective
on 26th December 2005. Accordingly, with effect from the close of hours on 31st March 2005 (the Appointed date
as per the Scheme), the power transmission business of KEC Infrastructures
Limited (formerly KEC International Limited) stood transferred to the company
as a going concern. As per the Scheme, the employees of KEC Infrastructures
Limited (formerly KEC International Limited) have been transferred to KEC
International Limited without any break in their service as per the terms and
conditions of their employment. The total consideration of Rs 1430 millions for
acquisition of the power transmission business was discharged by the company by
issuing and allotting equity and preference shares to KEC Infrastructures
Limited.
Share capital
Authorised capital:
The company was incorporated
with an authorized capital of Rs. 5,00,000 divided into 50,000 equity shares of
Rs. 10/- each. The authorized capital of the company was increased to Rs. 750
millions consisting of 15,00,000 Redeemable Preference Shares of Rs. 100/- each
and 6,00,00,000 equity shares of Rs. 10/- each.
Paid up capital:
Pursuant to the
above Scheme the company allotted to KEC Infrastructures Limited, 3,76,35,854
fully paid-up Equity Shares of Rs. 10/- each at an premium of Rs.
92,36,44,860/- aggregating to Rs 13000.034 millions and 12,99,966 Preference
Shares of Rs 100/- each aggregating to Rs 129.997 millions and these shares
have been distributed by KEC Infrastructures Limited to its respective equity
and preference shareholders in the ratio of 1: 1.
Accordingly, as on
31" March 2006, the aggregate paid up capital of the company is Rs.
506.800 millions consisting of equity share capital of Rs. 376.900 millions and
preference share capital of Rs.129.900 millions.
TECHNOLOGY ABSORPTION. ADOPTION AND
INNOVATION
At Butibori plant:
Developed chain
conveyor and magnetic handler for VP-164 machine, indigenous fume extraction
casing and ducting for galvanizing fume extraction blower, in-house dryer cover
and stamping machine of 100 tons, indigenous spares for Vernet CMC and FICEP
Plate Punching/Drilling machine.
At Jaipur plant:
Developed container
stuffing system, used " Kliengram Method" in pickling process in
galvanising shop to reduce acid consumption, installed new thermocouple and
indicator unit on small galvanising bath, modified fuel and air control
systems, usage of alternate fuel on main galvanizing bath, conducted trial with
a proprietary chemical for eliminating use of chromium salt during passivation
process of the galvanising shop.
INTRODUCTION
The company,
pursuant to a Composite Scheme of Arrangement entered between the company and
KEC
Infrastructures
Limited (formerly KEC International Limited) and KEC Holdings Limited and
Bespoke Finvest Limited and their respective shareholders, has taken over the
power transmission business on a going concern basis from KEC Infrastructures
Limited along with all the staff, workmen and employees of KEC Infrastructures
Limited.
The company is
primarily engaged in the power transmission sector and has further broadened
its horizons by diversifying into the distribution sector and also embarked
into rural electrification projects, value chain expansion viz., optical fibre
cable installations, hotline stringing and providing services like Satellite/
GPRS surveys. The company is also involved in railway electrification and
setting up of electrical
sub-stations.
The company is one
of the largest power transmission EPC companies in the world. The current
execution portfolio spans more than eleven countries, with a strong presence in
Middle East, Africa, Afghanistan and India.
The company is
recognized for its capabilities in design, manufacture, supply and construction
of turnkey transmission line projects up to a voltage of Sookv. Quality is an
integral part of the manufacturing process of the company. The company observes
stringent quality standards and monitoring of quality is done at every stage
ensuring strict adherence.
The tower testing
stations of the company are capable of testing towers up to 1000kv transmission
lines and the company has several total stations comprising of electronic
distance meters, theodolite, GPS Equipment.
INDUSTRY OVERVIEW
Industry Structure
Power is the single
largest industry spread over national geographical areas and serving every
sector of the modern economy. The power sector comprises of generation,
transmission and distribution. It is a highly capital intensive industry that
is driven by a complex mix of regulatory, technological, economic,
environmental and social forces. A reliable transmission and distribution
system is important for transfer of power from the generating station to the
load center.
For transmission of
power, India follows a three-tier structure comprising of distribution
networks, state grids (both owned and operated by respective states) and
regional grids (owned and operated by Power Grid Corporation of India Limited).
Industry Overview
Domestic:
The Indian power
sector has grown manifold since independence making India the third largest
producer of electricity in Asia with an installed capacity of around 1,24,000
MW against 1,362 MW in 1947. Despite this, the country is power deficient with
demand supply gap of around 48,000 MW leading to energy shortage of 12.5%
during peak hours. To offset the huge energy deficit, the Government of India
has set up an ambitious mission of "Power for all" which includes
electrifying all the villages and households by 2012 and initiated various
programmes to give an impetus to the growth of power sector. To accomplish this
mission, the installed generating capacity will have to be increased by nearly
1,00,000 MW by 2012 and efficient distribution of power from surplus to
deficient states need to be in place.
Necessary steps
have been taken by the Government to bring reforms in power generation,
transmission and distribution sector.
The 10th and 11th
five-year plans of the country focuses on creation of a National Grid in a
phased manner for adequately augmenting transmission capacity by adding over
60,000 ckm of transmission network by 2012. This integrated grid would enable
distribution of an additional 1,00,000 MW of power by 2012 and would carry 60%
of the power generated in the Country. An investment of Rs. 705000 millions for
interregional transmission link that synchronously connects all five regions of
India and allow power flow throughout the country is expected to increase the
transmission capacity of the grid to 37,150 MW. Creation of "Transmission
Super Highways" will enhance existing inter-regional power transfer
capacity.
Under the Rajiv
Gandhi Gramin Vidyuktikaran Yojana, a Rural Electrification Programme, all
states have signed a Memoranda of Understanding under which, close to 10,000
villages have been provided with electricity during the current year. As per
the latest Union budget, this coverage would be expanded to 40,000 villages
during the financial year 2007.
The Electricity
Act, 2003 has been amended to create a liberal and transparent framework for
power development by recognizing transmission as a distinct activity and
creating competitive environment through private sector participation in
transmission sector and reforming distribution segment of power industry.
International :
Southern African
Power Pool (SAPP), consisting of 1 2 regional utilities from Southern African
region has a twenty-year transmission expansion plan, which includes several
inter connectors that would improve system reliability and facilitate
inter-regional energy exchange.
Afghanistan is
implementing a grid schedule, which involves creation of a national
transmission grid of 220 kv and 110 kv transmission lines to help it restore
its power system destroyed in the war.
Power transmission
business in Middle East and the African Regions looks promising with new
opportunities arising there, as the pace of development picks up in those
regions.
CAPABILITIES
The company's
capabilities include design, fabrication, galvanizing and testing of
transmission line towers; all types of masts; erection of complete transmission
lines up to voltage of 800 kv; supply and erection of tower materials,
sub-station structures and overhead equipment for railway electrification in
India and several other countries.
The company has two
manufacturing plants at Jaipur and Butibori in India that have manufacturing
capacity of 58,000 MTs of towers annually. The plants are certified as per ISO
9001 and 14001 for Quality and Environmental. The company is equipped with the
latest technology and is constantly upgrading its facilities and factory units.
The design division
of the company is fully equipped to perform a plethora of computerized design
and engineering activities that design transmission towers of various kinds.
Designing of the
towers is done after embedding domestic and international perspectives as well
as keeping in mind the differences in the terrain, environment and
geographical, location of the places where towers are to be erected to meet
specific clients' requirements.
The company's
battery of sophisticated lightweight tension stringing machines and hydraulic
mobile cranes to handle the conductors at erection sites and at stores give the
company a distinct edge when it comes to installation of transmission lines and
the company is geared for optical fibre cable installations and hotline
stringing.
The two
sophisticated tower testing stations located at Jaipur and New Mumbai are
capable of testing towers up to 1000kv transmission line and the company also
possesses several total stations comprising of electronic distance meters,
theodolite and GPS equipment. The company's in-house R&D Unit is recognized
by the Ministry of Science and Technology,
Government of India.
PERFORMANCE
Financial Performance:
During the period
the company has achieved the highest turnover amongst companies in the power
transmission sector. The strategy of focusing on quicker execution, improving
margins, reducing costs, release of additional banking limits and prudent
management of finances resulted in a turnover of Rs. 17680 Millions and profits
after tax of Rs.493.000 Millions. The company has been able to maintain its
order book at a healthy level of Rs. 25000 millions.
Operational Performance:
With the engineering
excellence and time commitment, the company is executing various projects of
33kv/400 voltage distribution lines for rural electrification throughout
Ethiopia.
Spread over hilly
and forest terrain, the total length of the 33kv lines are more than 2,000
route kms. while low voltage lines are
approximately over 450 route kms. These lines would electrify over 40,000 rural
households, which would provide a vital link in development of economy of
Ethiopia. During the year, the company has completed projects in Abudhabi,
Algeria, Oman. In the domestic market the company successfully completed
execution of 400 kv transmission line spanning 237 kms. for Powerlinks
Transmission Ltd.
Major highlights of the performance of the company:
v
Completed
tower supplies for several projects in countries like UAE, Oman and Libya;
v
Entered
successfully into new markets like Zambia, Nigeria and Afghanistan;
v
Received rural
electrification orders of Rs. 400 millions from domestic as well as
international markets;
v
Bagged large
value orders from domestic and international markets
v
The ability of
the company to perform and deliver ahead of schedule has created reliability
and confidence in the markets about the company and opened up newer vistas of
growth.
v
The
diversification of territories offers the much-required stability of revenues
in the single customer dominated domestic business and with the global appetite
for energy growing strongly, the company intends to make huge inroads across
the globe through competitive advantage, quality and diverse product portfolio
in power sector.
In line with its
vision of having a wider product basket, the company continued to widen its
business prospects by venturing into distribution sectors and has bagged
distribution orders worth Rs. 4000 millions. Out of the total distribution
orders received by the company, Rs. 2140 millions are from India under the
Rajiv Gandhi Gramin Vidyuktikaran Yojana of the Government of India.
Clients
The major domestic
clients of the company include Power Grid Corporation of India Limited and
State Electricity Boards and international clients are infrastructure concerns
spread across over eleven countries. The company had identified Middle East,
Central Asia and African countries as a major growth area and focused on
successful execution of its projects there.
OUTLOOK AND OPPORTUNITIES
Transmission sector
particularly in India is witnessing a strong growth consequent to the necessity
to transmit power, both intra as well as inter regional. This in turrvhas
lead to initiation of massive capital spending by Power Grid Corporation of
India Limited . The existing inter-regional power transfer capacity is 9,500
MW, which will now be enhanced to 37,150 MW by 2012 through creation of
"Transmission Super Highways". Rajiv Gandhi Gramin Vidyuktikaran
Yojana, a Rural Electrification Programme targets to provide electricity to
40,000 villages by FY" 07 as per the latest budget.
Transmission -
Growth Plan 10th & 11 Plan Additional Power Generation Capacity of 1,07,000
MW Inter Regional Transmission Capacity by 2012 - 37150 MW Transmission
Capacity Addition (MW) In order to bring about reforms in the power sector,
electricity laws have been amended to recognize transmission as a distinct
activity and private sector investment has been permitted in transmission as a
"Transmission Licensee." To mobilize investment through private
investments. Power Grid Corporation of India Limited has formed joint ventures
with private sector companies for setting up transmission projects and invited
bids through Independent Power Transmission company with investments estimated
at Rs. 15000 Millions.
With a buoyant
economy and a rapidly increasing demand for power, the Middle Eastern region
boasts one of the world's fastest growing power markets and there is an
increasing demand for power in the GCC (Gulf Co-operation Council) countries.
The Governments of various African nations have a focus on providing power and
a number of countries have committed themselves to electrification goals which
will provide huge opportunities to companies in power sector to grow.
Website details
are attached herewith:
Biodata
Incorporated as
a public limited company on 7 May '45 as Kamani Engineering Corporation, KEC
International (KECIL) was renamed in Jun.'84. It is engaged in the design and
manufacture of power transmission line towers and petrochemicals.
KECIL's major products are transmission line towers and methyl ethyl ketone
(MEK). Its major clients include government agencies like SEB's, the NTPC,
NHPC, etc.
The company diversified into cement in 1988 and promoted a cement project
through a new company, Indo Nihon Special Cements, in collaboration with Nihon
Cement Company, Japan. In 1994-95, Bespoke Finvest became a wholly-owned
subsidiary of the company. KECIL has tied up with the Vietnamese government for
a joint venture. It took over the management of SAE India in Mar.'95. Cetex
Petrochemicals, the petrochemicals division of KECIL has been awarded the ISO
9002 certification.
During 1998-99,
the proposed merger of RPG Transmission Ltd with the company was approved by
the shareholders in ratio of 85 shares of the company for every 100 shares held
in RPG Transmission Ltd and has been cleared by the Delhi High Courts but not
approved by the Bombay High Court, accordingly in 1999-2000, the company has
gone in appeal against the said order.
With a long term perspective and in order to mitigate losses and improve
competitivenes, the company has embarked upon various measures like
rationalisation of assets, sale of surplus properties, closure of unproductive
offices and voluntary separation schemes where appropriate.
The company has commenced execution of projects in Libya, Phillipines, and
Lebanon.
The company has received new orders worth Rs.2950 millions during the year 2004
both in the International and Domestic market. The company has an healthy order
book position of over Rs.26000 millions and is currently engaged in executing orders
in countries like UAE, Libya, Tunisia,
Algeria, Iraq, Kuwait, Saudi Arabia.
To
maintain its leadership in the market, KEC is equipped with the latest in
technology. KEC is constantly upgrading its facilities and factory units.
The
company has very modern design facilities at Mumbai where over 50 highly
qualified and experienced Design Engineers have been deployed. This Design
Division is fully equipped to perform a plethora of computerized design and
engineering activities that design Transmission Towers of any kind to meet
specific client requirements. It has successfully designed heavy River Crossing
towers as well as towers up to 800 KV. The division boasts of ultra modern
facilities that include:
Ř
3D analysis & design software
for optimizing use of Mild Steel and High tensile Steel.
Ř
3D drafting software for
automatic generation of shop drawings for fabrication and code generation for
CNC operation for manufacturing.
Ř
Software for foundation designing
and construction drawings.
Ř Software for development of sag templates and generation of
sag tension charts for line stringing.
Software for development of 3D
profile drawing which facilitated automatic checking of clearances, optimizing of
tower quantities and verifying the adequacy of the tower strength.
CAPABILITIES
Ř
single circuit and double circuit towers.
Ř
double circuit towers with quadruple bundled conductors.
Ř
single circuit rectangular based towers.
Ř
single
circuit rectangular based towers
State-of-the-art
Infrastructure
The heart of any manufacturing facility is its
infrastructure. KEC has two manufacturing plants at Jaipur and Nagpur in India.
In these two plants, KEC can manufacture 50,000 tons of towers annually.
KEC meets the world's most stringent quality standards. Its
plants are certified as per and for Quality and Environmental
Standards
Well-engineered layouts, mechanized production equipments and
large storage facilities for steel and finished products give KEC an edge to
deliver quality products as per the stringent requirements of its customers.
KEC is constantly upgrading the capabilities of its factories to meet the
changing expectations of its customers.
The factory at Jaipur was built on a plot measuring 230,680
sq. mt. and started in 1967. It combines highly skilled manpower with modern
manufacturing infrastructure to ensure products of the highest quality.
Built on 120,000 sq. mt. of land, the factory at Butibori,
Nagpur was started in 1996. It incorporates the latest technology for
fabrication and hot dip galvanizing of a variety of structures.
FABRICATION Technology
All tower parts go through multi-purpose CNC machines that
are programmed to carry out various operations such as punching, stamping,
drilling and cutting.
Hydraulic presses along with matching tools, jigs and
fixtures ensure that bent items are handled without distortion. Strategically
positioned cranes simplify material handling without any strain on employees.
All machines are equipped to process steel conforming to various specifications e.g.
GALVANIZING Technology
The pretreatment of steel is effectively handled with special
chemicals to minimize effluents. The controlled treatment includes degreasing,
pickling and fluxing for an ideal reaction between steel and Zinc.
The pre-heating chamber ensures uniform drying &
preheating of steel to give an excellent surface finish and uniform coating of
zinc. The temperature of Galvanizing Furnace is accurately controlled by
microprocessors.
The waste acids and chemicals are treated as per all
applicable environment Standards.
AT KEC, Quality is a Journey not a Destination
Quality is an integral part of manufacturing process wherein
each operator ensures the quality of work he performs. Specially trained
inspectors, computerized testing equipments and well-planned quality assurance
infrastructure back all quality efforts. Monitoring of quality is done at every
stage ensuring the highest quality standards.
Maintenance and back up systems ensure that process
capability of machines is maintained at the planned performance standards.
KEC has more than
50 years of experience in construction of Transmission Lines.
The company has
constructed some of the heaviest and tallest transmission towers in India and
abroad. It has successfully battled against & constructed towers in
difficult terrains like deserts, mountains, land mines and rivers.
Today, the
specialized transmission lines built by KEC span huge raging rivers are like
Nile in Egypt, Kosi in Nepal and Brahmaputra in India.
Besides having 20
teams of highly skilled surveyors, KEC has 13 Total Stations (comprising
Electronic Distance Meters, theodolite and software for recording survey data
like levels, angles and distance. In addition KEC has the capability and
experience of conducting surveys via Geo-positioned satellite.
KEC has teams of
expert engineers & technicians who erect transmission towers by
conventional methods like cranes for towers that are up to 45 meters high and
advanced methods like use of helicopters, whenever required.
KEC's battery of 32
sophisticated lightweight tension stringing machines & 40 hydraulic mobile
cranes (to handle the conductors at erection sites and at stores) give KEC a
distinct edge when it comes to installation of transmission lines.
Quality assurance
is an integral part of the manufacturing processes wherein each operator
ensures the quality of the work he performs. All quality efforts are backed by
specially trained inspectors, computerized testing equipment, well planned
quality, assurance infrastructure. Monitoring of quality is done at every stage
ensuring the highest quality standards.
The maintenance
and back up systems ensure that process capability of machines is maintained at
the planned performance standards.
KEC International, A TOWERING Corporate
KEC International
is one of the largest Power Transmission EPC companies in the world. Since its
incorporation in 1945, KEC has made an indelible mark on the world map by constantly
and consistently re-engineering itself to retain it's position of leadership in
the areas of quality, technology, capacity and capability.
KEC's strengths lie
in the areas of Design, Manufacture, supply and Construction of Turnkey
Projects of Power Transmission lines of voltages upto 800 KV and in the
execution of Railway Electrification projects, setting up Sub-stations and
power Distribution Networks, Optical Fibre Cable (OPGW) installations, Turnkey
Telecom Infrastructure Services and maintenance of Power Transmission Lines.
To ensure reliable
service KEC is supported by multi-locational manufacturing facilities and a
workforce spread out over 20 countries.
At KEC manpower is one of the most important resources. KEC employees
participate in regular training programmes and seminars in various areas of
self-development. Every employee is instilled with a sense of pride of his work
and workplace & strives to make KEC the International market leader in the
power transmission sector.
Transmitting Power, The WORLD OVER
Till date KEC has supplied over 1.2 million metric tons of towers and
has constructed over 35000 kms of transmission lines worldwide long enough to circle
the globe.
Over the years KEC
has gone from strength to strength successfully exporting towers to over 20
countries and widening its client base across the world. The company has an
increasingly strong presence in the Middle East, the Pacific Rim countries and
Africa.
Over a span of 50
years KEC has helped transmit power to various countries that include
Argentina, Brazil, Canada, Egypt, Ethiopia, Ghana, India, Indonesia, Iran,
Iraq, Kenya, Kuwait, Lebanon, Malaysia, New Zealand, Nepal, Nigeria, Philippines,
South Africa, Sri Lanka, Saudi Arabia, Sudan, Syria, Thailand, Tunisia, USA,
UAE and Vietnam.
The KEC credo is that no project is complete till the customer is
totally satisfied. KEC has successfully executed contracts from 33 KV to 800 KV
in India and abroad.
Credentials
KEC
test beds have been accepted and approved by Power utilities in India and
abroad. Some of the key consultants who have witnessed the tests at KEC testing
stations are:
q
Acres
Consulting Engineers - Canada
q
Energo
Project - Yugoslavia
q
Electricite
de France - France
q
ESB
International - Ireland
q
Ewbank
Preece Ltd. - U.K.
q Kennedy & Donkin Ltd. - U.K.
q
Lahmeyer
International - Germany
q
Merz
& McLELLAN - U.K.
q
Newjec
– Japan
Mr.
Vimal Kejriwal (Chief Finance Officer) of KEC International Ltd. receiving the
Highest Exporter Trophy for the year 2000-2001 in Capital goods from Dr.
Shivajirao Patil -Nilangekar, Minister of Revenue, Govt of Maharashtra. The
award function was held in Hotel Taj President, Mumbai on 7th
January 2004.
Worldwide success and acclaim has largely stemmed from a
wide base of satisfied clients. Awards and accolades reinforce KEC's commitment
to deliver better and faster. KEC's corporate capabilities can be best
described by what its clients have to say.
"Timely
completion of the project has been result of sincere and dedicated efforts of
highly motivated team of KEC"
"During
the peak construction period, M/s. KEC had deployed 25 foundation gangs, 25
erection gangs, 16 stringing gangs and 4 TSE sets. The entire 562 KM stringing
of 800 KV line has been completed in only 16 months by massive deployment of
over 5000 work force by KEC."
Power Grid Corporation of India [800 KV Single Circuit Kishanpur-Moga Line]
"They
hereby confirm that KEC International Ltd., Cairo has completed 500 KV turnkey
project awarded to them by the Ministry of Electricity & Energy, Egyptian
Electricity Authority. They are glad to confirm that all the lines have been in
trouble free service."
Ali Al-Mussawi Egyptian
Electrical Authority [500 KV Single Circuit Tebbien Kureimat-Cairo Line]
"I am glad to learn that
the Lake Crossing Tower at location No. 126 of Singrauli-Rihand Transmission
Line has been completed. I want to convey my appreciation for the effort put in
by KEC for completing the job. Had KEC not come forward with full mobilization
and taken up the work on a war footing, this target would not have been
achieved."
M. L. Malik, National Thermal
Power Corporation of India [400 KV Single Circuit Singrauli-Rihand Line]
"KDP offer their
compliments for completion of Dubai Electricity and Water Authority's 400 KV
& 132 KV Transmission Lines 7 sections, ahead of schedule to a satisfactory
standard of workmanship."
D. C. Adams, Manager, Middle
East, Kennedy & Donkin Middle East Limited. [400 KV Double Circuit Shahama
East - MIRFA Line]
"They hereby confirm that
KEC has completed supply of 3300 MT of galvanized steel towers with bolts &
nuts as per agreed supply schedule. The qualities of towers were to
International Standards and the assembly of the towers at the project was
completed smoothly indicating a high standard of fabrication."
Cesar Luccas, Pirelli, Brazil
[132 KV Double Circuit Santarem - Ruropolis - Itaituba Line]
"They would like to commend
KEC International Ltd. on their successful completion of the National
Electrification Project. KEC has carried out the work in a professional manner
and has developed an excellent working relationship with the VRA."
Volta River Authority, Ghana
[Atebubu-Kwame Danso, Berekum - New drobo, Goasa - Tepa, Bawku - Davango,
Nagpanduri - Gambaga Line 34.5 KV Sub Transmission]
Press Releases
KEC Net Profit doubles to Rs. 380 millions,
Sales up by_25% to Rs. 5720 millions Mumbai - 1/12/2007
Mumbai, 12th Jan 2007
KEC International Limited (KEC) has recorded a sharp growth of more than 116% in its net profit (PAT) at
Rs. 382.100 millions for the quarter ended 31st December 2006 as against Rs 176.700
millions in the same period last year. The Company reported gross sales of Rs.
5720 millions as against Rs 4580 millions in the same quarter last year, an
increase of 25%
Announcing the results, Mr. Ramesh Chandak, Managing
Director, KEC said, “KEC continues to perform well on profitability front.
Company’s policy of aggressive project execution measures and efficient
utilisation of resources has resulted in impressive growth in the
profitability. On revenues front, company continues to perform well in the
International market with significant growth in revenues. Domestic market is
now reviving with lot of new business expected in the ensuing quarters”.
KEC is one of the largest Power Transmission EPC
companies in the world with presence in more than fifteen countries.
KEC is currently engaged in executing orders in
various countries such as Algeria, Afghanistan, Ethiopia, Iraq, Kuwait, Libya,
Nigeria, and UAE, Zambia.
In the domestic market too, KEC is a leading player
and is executing no of orders for PGCIL, WBSEB and UPPCL etc.
KEC International is a part of the Rs. 9500 million.
RPG Group.
KEC
International Limited bags four new orders Rs 151millions from International
Market
Mumbai, December 20th 2006
KEC International Limited: -(KEC) has bagged four
new orders aggregating to Rs 1510 millions. Of these three orders worth Rs.
1060 millions are from UAE whereas one order worth Rs. 450 millions is from
Ghana. Details of the orders are as follows : -
UAE
Sharjah Electricity and Water Authority, Government of
Sharjah, United Arab Emirates have awarded a contract for supply and
construction of 220 KV D/C over head lines of 39.5 KM from Hamriya to Al-Tay.
Abu Dhabi Water and Electricity Authority, Government of Abu Dhabi,
United Arab Emirates have awarded a contract for supply and construction of 400
KV D/C over head lines of 7 KM near Abu Dhabi.
Further
M/s Abu Dhabi Water and Electricity Authority has also awarded a variation
order for replacement of OPGW for 278 kms.
GHANA
KEC has
also bagged an order from Volta River Authority, Ghana for constructing a 330
KV S/C Transmission line spanning over 215 Kms. from Aboadze Thermal power
plant to Volta switching station. With this
order KEC will re-enter the Ghana market after a gap of many years.
KEC is one of the
largest Power Transmission, Engineering, and Procurement and Construction
companies in the world with presence in more than fifteen countries.
KEC is currently
executing orders in various countries such as Afghanistan, Abu Dhabi, Algeria,
Ethiopia, Iraq, Kazakhstan, Libya, Tunisia , Nigeria, Oman and Zambia.
In the domestic
market, too, KEC is a leading player and is executing various orders for PGCIL,
WBSEB and UPPCL etc.
KEC International
is a part of the Rs. 95000 millions RPG Enterprises.
DIRECTOR REPORTS:
Bonus equity shares
Pursuant to 35,00,000 partly paid-up equity shares becoming fully paid-up and
by virtue of resolution passed by the members in the Extra Ordinary General
Meeting held on 7th March 1995 approving allotment of bonus shares to all the
shareholders, the holders of 35,00,000 equity shares were allotted 17,50,000
equity shares of Rs.10 each by way of bonus shares in the ratio of one bonus
share for every two equity shares held by them.
WEBSITE DETAILS:
KEC
International Limited (KEC) has secured new orders worth
Rs. 3390 millions from Afghanistan and Ethiopia.
In Afghanistan, KEC has bagged two orders worth Rs. 2040 millions
for supply and construction of 220 KV double circuit transmission lines from
- Kabul to Salang Tunnel over a distance of 95 km and
- Salang Tunnel to Phul –e-Khumri over a distance of 107 km
These transmission lines are being constructed
to provide electricity to Kabul city. This
project would be executed over the next 36 months. These orders have been
awarded by the Power Grid Corporation of India Ltd (PGCIL).
Ethiopian Electric Power Corporation
(EEPCO) has placed an order with
KEC worth Rs. 135 millions for supply and construction of 400 KV single circuit
and 230 KV double circuit transmission line totalling over 234 kms under the
Gilgel Gibe II Power Transmission Project. This transmission line would enable
the transfer of hydropower from the Gilgel Gibe II Hydro Power Plant.
The project
aims at satisfying the growing demand for electricity in Ethiopia. This project
is partly funded by the European Investment Bank.
Announcing this, Mr. Ramesh Chandak, Managing Director, KEC International said:
“KEC’s long standing experience and skills have helped it to bag these large
orders. This helps us in maintaining KEC`s leadership position in the Global
Transmission market”
KEC
presently has a healthy order book position of Rs. 27000 millions and is
engaged in executing orders in countries countries like Afghanistan, Abu Dhabi,
Libya, Tunisia, Algeria, Iraq, Oman, Zambia and Ethiopia.
In the
domestic market, too, KEC is a leading player and is already executing various
orders for PGCIL, WBSEB, J&K SPDC, UPPCL and Powerlinks etc.
KEC is
one of the largest Power Transmission, Engineering, Procurement and
Construction companies in the world with presence in more than fifteen
countries.
KEC
International is a member of the Rs. 8450 millions RPG Enterprises.
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.42.15 |
|
UK Pound |
1 |
Rs.84.38 |
|
Euro |
1 |
Rs.57.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
59 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|