MIRA
INFORM REPORT
|
Report Date : |
06.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
AREVA T AND D
INDIA LIMITED |
|
|
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Formerly Known
As : |
ALSTOM LIMITED |
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|
Registered
Office : |
D-2, Gillander House,
8 Netaji Subhas Road, Kolkata - 700001, West Bengal |
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Country : |
India |
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|
Financials (as
on) : |
31.12.2006 |
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Date of
Incorporation : |
13.03.1957 |
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|
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Com. Reg. No.: |
21-23381 |
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|
CIN No.: [Company
Identification No.] |
L31102WB1957PLC023381 |
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|
TAN No.: (Tax
Deduction & Collection Account No.) |
MRTA01297C |
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|
Legal Form : |
Public Limited
Liability Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing of
all types of Switchgears, Transformers, Reactors and Control Panels. Subject is also
engaged in the business of Designing, building and servicing
technologically advanced products and systems for the world's energy and
transport infrastructure. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Aa |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed
for credit transaction. It has above average (strong) capability for payment
of interest and principal sums |
Large |
|
Maximum Credit
Limit : |
USD 15000000 |
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|
|
|
Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part
of multinational Areva Group. Available information indicates high financial
responsibility of the company. Trade relations are fair. General financial position
is good. Payments are usually correct and as per commitments. The company can
be considered good for any normal business dealings. It can be regarded as a
promising business partners in a medium to long-run. |
LOCATIONS
|
Registered Office
: |
D-2, Gillander
House, 8 Netaji Subhas Road, Kolkata - 700 001, West Bengal, India |
|
Tel. No.: |
91-33-22203991-94/22434705 |
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Fax No.: |
91-33-22203995
/ 40097043 |
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E-Mail : |
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Website : |
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Head Office : |
457, Anna Salai,
Teynampet, Chennai - 600018, Tamilnadu |
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Tel. No.: |
91-44-24364575 /
4146 / 4192 |
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Fax No.: |
91-44-24340511 |
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E-mail : |
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|
|
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Factory 1 : |
AEI WORKS
1, Taratala Road,
Kolkata - 700 024, West Bengal |
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Tel. No.: |
91-33-2469 5370 /
9370 / 71 |
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Fax No.: |
91-33-2469 6988 /
3509 |
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Factory 2 : |
BEHALA WORKS
P5, Taratala
Road, Kolkata - 700 088, West Bengal |
|
Tel. No.: |
91-33-2401 2239 /
7586 |
|
Fax No.: |
91-33-2401 7590 |
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|
Factory 3 : |
PAHARPUR WORKS
58, Taratala
Road, Kolkata - 700 024, West Bengal |
|
Tel. No.: |
91-33-2469 5560 /
61 / 65-67 |
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Fax No.: |
91-33-2469 8530 |
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Factory 4 : |
SALT LAKE WORKS
Block BN, Sector
V, Salt Lake City, Kolkata - 700 091, West Bengal |
|
Tel. No.: |
91-33-2367 5827 /
367 4002 |
|
Fax No.: |
91-33-2367 7958 |
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Factory 5 : |
PALLAVARAM WORKS
19/1, GST Road,
Pallavaram, Chennai - 600 043, Tamilnadu |
|
Tel. No.: |
91-44-2236 8621 /
8723 / 8917 |
|
Fax No.: |
91-44-2236 7276 |
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Factory 6 : |
PERUNGUDI WORKS
119/120,
Electrical & Electronics Industrial Estate, Perungudi, Chennai - 600 096,
Tamilnadu |
|
Tel. No.: |
91-44-2496 0696 |
|
Fax No.: |
91-44-2496 0024 |
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Factory 7 : |
NAINI WORKS
P. O. Naini,
Allahabad - 211 008, Uttar Pradesh |
|
Tel. No.: |
91-532-2697422 /
424 |
|
Fax No.: |
91-532-2697604 |
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Factory 8 : |
TARATALA WORKS
1, Taratala
Road, Kolkata – 700024, West Bengal |
|
Tel. No.: |
91-33-24695370 |
|
Fax No.: |
91-33-24696988 |
|
|
|
|
Branches : |
D-2, Gillander
House, Netaji Subhas Road, Kolkata - 700 001, West Bengal |
|
Tel. No.: |
91-33-22203991-94 |
|
Fax No.: |
91-33-22203995 |
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|
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|
Branches : |
14th Floor,
Devika Towers, 6 Nehru Place, New Delhi – 110019 |
|
Tel. No.: |
91-11-26449902/03/07 |
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Fax No.: |
91-11-26449447 |
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|
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Branches : |
Narottam Morarji
Marg, Ballard Estate, Mumbai – 400038, Maharashtra |
|
Tel. No.: |
91-22-22618141-45 |
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Fax No.: |
91-22-22621170 |
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|
|
|
Branches : |
457, Anna Sali,
Teynampet, Chennai – 600018, Tamilnadu |
|
Tel. No.: |
91-44-24317100 |
|
Fax No.: |
91-44-24323462 |
|
|
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|
Branches : |
T&D PROJECTS
A21-24, Sector
16, Noida – 201301, Uttar Pradesh |
|
Tel. No.: |
91-120-22510248 |
|
Fax No.: |
91-120-22510032 |
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|
|
|
Branches : |
T&D SERVICE
1st
Floor, A/17, Sector – 16, Noida – 201301, Uttar Pradesh |
|
Tel. No.: |
91-120-22516475/478 |
|
Fax No.: |
91-120-22510801 |
|
|
|
|
Branches : |
EDS
457, Anna Salai,
Teynampet, Chennai – 600018, Tamilnadu |
|
Tel. No.: |
91-44-24317201 |
|
Fax No.: |
91-44-24355498 |
DIRECTORS
|
Name : |
Mr. S. K. Poddar |
|
Designation : |
Chairman (Non-executive) |
|
|
|
|
Name : |
Mr. Rathindra
Nath Basu |
|
Designation : |
Managing Director
|
|
|
|
|
Name : |
Mr. Arthur De
Montalembert |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Michel
Augonnet |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. V. Dhekne |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Krishna
Pillai |
|
Designation : |
Deputy Chairman
& Joint Managing Director (w.e.f. 01.07.2002) |
|
|
|
|
Name : |
Mr. A. K. Dhagat |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. C. M. A.
Nayar |
|
Designation : |
Director (w.e.f.
13.05.2004) |
|
|
|
|
Name : |
Mr. Lawrence
Hoskins |
|
Designation : |
Director
(Non-executive) |
|
|
|
|
Name : |
Mr. S. M. Momaya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Michel Augonnet |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nicolas
Swetchine |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Karim
Vissandjee |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K. S. Natarajan |
|
Designation : |
Company Secretary
& Director (Legal) |
MAJOR SHAREHOLDERS
As on 30.09.2007
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Foreign |
|
|
|
Bodies Corporate |
34517180 |
72.18 |
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
2312001 |
4.83 |
|
Financial Institutions / Banks |
8462 |
0.02 |
|
Central Government/ State Government(s) |
121 |
0.00 |
|
Venture Capital
Funds |
2784097 |
5.82 |
|
Insurance Companies |
1095683 |
2.29 |
|
Non-institutions |
|
|
|
Bodies Corporate |
1308477 |
2.74 |
|
Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
5250496 |
10.98 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
382768 |
0.80 |
|
Any Other (specify) |
|
|
|
Trusts |
1953 |
0.00 |
|
Foreign Nationals |
81 |
0.00 |
|
NRI |
138596 |
0.29 |
|
Clearing member |
20892 |
0.04 |
|
Total
|
47820807 |
100.000 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing of
all types of Switchgears, Transformers, Reactors and Control Panels. Subject is also
engaged in the business of Designing, building and servicing technologically
advanced products and systems for the world's energy and transport
infrastructure. |
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Products with
ITC Code : |
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GENERAL
INFORMATION
|
No. of
Employees : |
Above 500 |
|
|
|
|
Bankers : |
-
Standard
Chartered Grindlays Bank Limited, Kolkata – 700 001, West Bengal -
Citi Bank NA -
Canara Bank -
BNP Paribas -
Punjab
National Bank |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
Address: |
672, Temple
Tower, Anna Salai, Nandanam, Chennai-600035, Tamilnadu, India |
|
|
|
|
Holding Company
: |
Areva T & D
SA, France Alstom Holdings
SA, France [Holding Company Until 07.08.2005] |
|
|
|
|
Subsidiaries : |
-
ALSTOM
Establissment DeTarbes -
ALSTOM
Lancashire -
ALSTOM
Moteurs -
ALSTOM Power
Sweden -
ALSTOM
Projects India Limited -
ALSTOM
Transport France -
ALSTOM
Transport South Africa -
AREVA
Australia -
AREVA Canada -
AREVA Chile -
AREVA Dubai -
AREVA
Energietechnic, Gmbh, Germany -
AREVA
Germany -
AREVA
Hungaria -
AREVA
Instrument Transformers India Private Limited -
AREVA
Inturrupter SA -
AREVA Italy -
AREVA Lattes -
AREVA
Polland -
AREVA
Sachsenwerk, Gmbh, Germany -
AREVA
Singapore -
AREVA Spain -
AREVAT&D
AG, Switzerland -
AREVA
T&D Australia Limited -
AREVA
T&D Brazil -
AREVA
T&D DRC -
AREVA
T&D ERT France -
AREVAT&D
Lightning Arresters Private Limited -
AREVA
T&D Middle East, Sharjah -
AREVAT&D
Protection & Control, Stafford -
AREVA
T&D SA France -
AREVA
T&D Suzhou HV Switchgears China -
AREVA
T&D Sweden -
AREVA
T&D Systems India Limited -
AREVA Vacuum
Interrupter, France -
AREVA
Villeurbanne -
Lionel India
Limited -
Texmaco
Limited -
Zuari Industries
Limited |
|
|
|
|
Associates : |
-
GA Daniell India Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,000,000 |
Equity Shares |
Rs. 10/-each |
Rs. 500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
47,820,000 |
Equity Shares |
Rs. 10/- each |
Rs. 478.200 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.12.2006 [12 Months] |
31.12.2005 [9 Months] |
31.03.2005 [12 Months] |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
478.200 |
398.875 |
398.875 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
3356.700 |
1794.899 |
1547.452 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
3834.900 |
2193.774 |
1946.327 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
15.796 |
|
|
2] Unsecured
Loans |
33.200 |
100.000 |
0.000 |
|
TOTAL BORROWING
|
33.200 |
100.000 |
15.796 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
3868.100 |
2293.774 |
1962.123 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
1034.300 |
554.544 |
506.626 |
|
Capital work-in-progress
|
99.700 |
181.023 |
67.191 |
|
|
|
|
|
|
|
INVESTMENT
|
96.500 |
97.484 |
96.534 |
|
DEFERREX TAX ASSETS
|
0.000 |
136.972 |
109.254 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
2386.200 |
1857.660 |
1192.781 |
|
|
Sundry Debtors
|
6236.900 |
4019.658 |
2826.894 |
|
|
Cash & Bank Balances
|
524.600 |
413.617 |
271.022 |
|
|
Loans & Advances
|
1331.300 |
658.012 |
515.116 |
Total Current Assets
|
10479.000 |
6948.947 |
4805.813 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
7144.700 |
5223.150 |
3368.981 |
|
|
Provisions
|
696.700 |
402.046 |
262.240 |
Total Current Liabilities
|
7841.400 |
5625.196 |
3631.221 |
|
Net Current Assets
|
2637.600 |
1323.751 |
1174.592 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
7.926 |
|
|
|
|
|
|
|
TOTAL
|
3868.100 |
2293.774 |
1962.123 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 [12 Months] |
31.12.2005 [9 Months] |
31.03.2005 [12 Months] |
|
|
|
|
|
|
|
|
Sales Turnover |
17644.900
|
9576.600
|
8715.200
|
|
|
Other Income |
248.400
|
56.500
|
85.400
|
|
|
Total Income |
17893.300 |
9633.100 |
8800.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2088.900
|
593.900
|
347.800
|
|
|
Provision for Taxation |
718.700
|
231.300
|
135.800
|
|
|
Profit/(Loss) After Tax |
1370.200
|
362.600
|
212.000
|
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
N.A. |
N.A. |
169.425 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
Total Imports |
N.A. |
N.A. |
840.040 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
11446.500
|
6432.500
|
5476.100
|
|
|
Stock Adjustments |
[595.500]
|
[297.700]
|
[265.100]
|
|
|
Excise Duty |
1588.000
|
881.900
|
968.500
|
|
|
Power & Fuel Cost |
120.500
|
81.900
|
97.200
|
|
|
Other Manufacturing Expenses |
188.600
|
124.000
|
147.600
|
|
|
Employee Cost |
1184.500
|
734.100
|
937.600
|
|
|
Selling and Administration Expenses |
1084.900
|
638.500
|
593.400
|
|
|
Miscellaneous Expenses |
500.300
|
316.600
|
336.500
|
|
|
Interest & Financial Charges |
99.800
|
31.800
|
35.200
|
|
|
Depreciation |
186.800
|
95.600
|
125.800
|
|
Total Expenditure |
15804.400 |
9039.200 |
8452.800 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2007 |
30.06.2007 |
30.09.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
3608.300
|
3893.100
|
4326.000
|
|
Other Income |
17.200
|
24.400
|
47.000
|
|
Total Income |
3625.500
|
3917.500
|
4373.000
|
|
Total Expenditure |
3045.600
|
3292.000
|
3545.000
|
|
Operating Profit |
579.900
|
625.500
|
828.000
|
|
Interest |
5.900
|
16.200
|
11.000
|
|
Gross Profit |
574.000
|
609.300
|
817.000
|
|
Depreciation |
33.500
|
33.000
|
63.000
|
|
Tax |
199.200
|
209.800
|
274.000
|
|
Reported PAT |
352.400
|
378.500
|
480.000
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
7.66
|
3.76 |
2.41 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.84
|
6.20 |
3.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.14
|
7.91 |
6.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.54
|
0.27 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.05
|
2.61 |
1.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.34
|
1.24 |
1.32 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was
originally incorporated as General Electric Company of India (GECI) in
1911. GECI was amalgamated with the
English Electric Company of India (EEI) in April, 1993 and the name was changed
to GEC Alstom India Limited.
The company was
promoted by GEC Alstom, The Netherlands, which had interests in GEC Alstom
Triveni. The collaborator, GEC Alstom,
has a 66.35% stake in the company.
The company came
out with a rights issue in July, 1994 to fund the normal capital expenditure
and augment long-term sources of working capital. In 1982-83, it started manufacturing of solid-state generators
and transformers, vacuum switches and electric motors in collaboration with GEC
International Controls, UK and Electroimplex, Bulgaria. In 1984, collaboration agreements were
signed with GEC Power Transformers, UK and Raydne, UK to manufacture medical
electronic equipment. Another collaboration agreement was signed with GEC
Machines, UK to manufacture hydro-electric generators.
The company has
been accredited with ISO 9001 Certification for cubicle gear engineered
products, switchgear stock products, relays and control panels at Pallavaram
Works, Chennai and for fusegear stock products at Hosur Works. Its T & D projects at Chennai plans to
get certified to the latest version of ISO 9001 standard in the fiscal 2002.
During the year
1999-2000, two collaboration agreement were entered during the year with Alstom
T & D SA, France for the manufacture of 72.5 kV SF6 Circuit Breakers and
420 kV SF6 Circuit Breakers both operated by spring mechanism. It has spun off the energy division into a
joint venture with KoCos Messtechnik of Germany. The new company, Alstom Energy Measurements & Systems Limited
was incorporated in February, 2000 in Chennai.
During August,
2001, the 315 MVA 400 kV Transformer was commissioned successfully.
The company has got
the approval of High Court of Mumbai for its scheme of amalgamation of Alstom
Transport Limited, Alstom Systems Limited and Alstom Power Boilers Limited with
itself. During 2002-03 it has successfully tested new generation 145 kV circuit
breaker – types GL312 as per IEC standards. It has also commissioned the 420 kV
circuit breaker for the 4,500 MW Superthermal Power Plant at NTPC, Talcher
During 2004-05 the
company has increased its installed capacity of Switchgear- All types and
Transformers & reactors by 1880 Nos and 2300000 kVA respectively. With this
expansion the total installed capacity of Switchgear- All types and Transformers
& reactors has increased to 90510 Nos and 8500000 kVA respectively.
During April 2005 Alstom Holdings SA and AREVA T&D SA (Jointly with Areva
T&D Holdings SA) has reached an understanding for acquisition of upto
26464400 equity shares (66.35%) held by Alstom Holdings in the company for a
consideration of Rs.806 Million. After the said acquisition the name of the
company was changed from Alstom Limited to Areva T&D India Limited from
October 2005. Further Alstom has sold its T&D business to AREVA.
In January 2006 the company as decided to transfer its non T&D business
(Meters & Motors) as a going concern to the company's subsidiary, Alstom
Industrial Products Limited for a consideration of Rs.413 million. This scheme
of arrangement is subject to approval.
Business:
The company is
engaged in Manufacturing of all types of Switchgears, Transformers, Reactors
and Control Panels.
The company is a
67% subsidiary of Alstom France SA, which is a leading player worldwide in T
& D and industrial equipment. The
company's main business includes manufacture, sales and support of power
transmission and distribution (T & D) and other industrial equipments. The T & D segment manufactures
switchgears, transformers, measurement and control systems and undertakes T
& D projects. The industrial
equipment division manufactures rotating machinery (motors), industrial and
domestic fans, alternators and undertakes industrial projects.
Name change to AREVA T&D India Limited
Pursuant to the Special Resolution passed by the Members at the Annual General
Meeting of the Company held on 6th September, 2005 and approval of
the Central Government under Section 21 of the Companies Act, 1956, the name of
the Company was changed from ALSTOM Limited to AREVA T&D India Limited,
effective 23rd September, 2005.
Amalgamation
As Members are aware, during the year under review, their Parent Company, AREVA
T&D decided to merge all its subsidiaries in India, operating in the same
T&D Segment, into one single entity. Accordingly, a Scheme of Amalgamation
was proposed whereby AREVA T&D Systems India Limited (ATDSL), AREVA T&D
Instrument Transformers India Private Limited (AITPL) and AREVA T&D
Lightning Arresters India Private Limited (ALAPL) were to be merged with the
Company. The Appointed Date' under the Scheme is 1st January, 2006. The Scheme
of Amalgamation was subject to the approvals of the shareholders of the
Transferor and Transferee Companies and the approvals of the Hon'ble High
Courts of Calcutta, Delhi and Madras.
In respect of the three Transferor Companies, the Hon'ble High Courts of Delhi
and Madras had granted dispensation from holding the shareholders meetings
since they were 100% subsidiaries of the AREVA Group.
For the Transferee Company, which is the Company, the Members overwhelmingly
approved the said Scheme with 99.99% majority, at a meeting held under the
directions of the Hon'ble Calcutta High Court on February 28, 2007.
Thereafter, petitions were made to all the three High Courts by the respective
Companies for sanction of the Scheme. The Scheme was duly sanctioned by the
Hon'ble Calcutta High Court on July 5, 2007, the Hon'ble Delhi High Court on
August 14, 2007 and the Hon'ble Madras High Court on August 31, 2007. Certified
copies were thereafter applied for and filed with the respective Registrars of
Companies on September 18, 2007 ('Effective Date').
Since the Appointed Date' under the Scheme is 1st January, 2006, it became
necessary to present the consolidated accounts after the merger. Hence, the
delay in presenting the accounts for the year ended December 31, 2006. This was
inevitable and the Directors wish to offer their sincere apologies for the
inconvenience caused, particularly, the delay in disbursement of
dividend.
In this regard, the Company had also obtained extension of time under Sec.
166 of
the Companies Act, 1956, from the Registrar of Companies, West Bengal, Kolkata
for holding the Annual General Meeting.
With
regard to payment of fee under Schedule X of the Companies Act, 1956, for
increase in the Authorised Share Capital on amalgamation, as stipulated in the
sanctioned Order of the Hon'ble Calcutta High Court, this has been suitably
dealt with in the notes given in the Schedule on Share Capital.
Change
in shareholding of AREVA Group
Consequent
to the amalgamation, the shareholding of AREVA Group has undergone a change and
is now as under :-
Pre-
Post Amalgamation Amalgamation
AREVA
T&D SA 66.65% 55.59%
AREVA
T&D Holding SA - 11.67%
Long
& Crawford Limited - 4.92%
Total
66.65% 72.18%
Allotment
of 5,578,790 equity shares to AREVA T&D Holding SA and 2,354,545 equity
shares to Long & Crawford Limited, pursuant to the Scheme of Amalgamation,
was made on September 24, 2007.
Review
of Operations
The
Directors are pleased to report that for the year under review, the Company's
growth was quite satisfactory as will be evident from the accompanying results
and in respect of some products, the growth was even above the industry
average.
The
Company operates only in one segment viz. Transmission and Distribution
(T&D).
Performance of the individual Business
Units are as under:
Automation
Automation Business recorded 27% growth in sales.
As
reported last year, production of HA (Hinged Armature) Relays was transferred
from Stafford, U.K. to this Unit during the current year. The sales volume of
these Relays is expected to grow during the current year alongwith growth in
export volume.
Incidentally,
AREVA has recognized this Unit as the Global Centre of Excellence for Disc and
HA Relays, Global Competence Centre for design, testing and training of
Numerical Busbar Scheme and Competence Centre for application check, design and
engineering of 765kV Protection Cubicles.
Order
book position for the current year is satisfactory.
MV Switchgear
Medium
Voltage Switchgear business recorded 23% growth in sales. 33kV Circuit Breakers
were successfully type tested in Italy and these are being quoted in the
market. Maiden order for Rukmani Power Limited was successfully executed in
August, 2006. Unit has also commenced export of sub-assemblies and components
of HVX Breakers to AGS, Germany.
Power Transformer
Power
Transformers recorded a very strong growth of 81% in sales supported by price
and volume effect as well as improvement in production flow and processes. To
improve capacity, capital investment to the tune of Rs.79 million were made in
the year under review. Under the capacity expansion programme, first phase of
expansion upto 7000 MVA was accomplished and further expansion upto 10,000 MVA
is in progress.
In the
current year, the Company has won an order totalling Rs.1150 million from
Madhya Pradesh Power Transmission Company Limited (MPPTCL) for the supply,
erection and commissioning of 22 x 160MVA 220/132/33kV Auto Transformers and 4
x 100MVA 220/33/33kV two Winding Transformers. This is the largest ever product
package order in India.
Distribution Transformer
Distribution
Transformer business also recorded a strong growth of 66% in sales. Unit has
launched capacity expansion programme which shall be completed in 2007. An
optimized production line GSP' has been launched to increase the productivity
as well as capacity.
Company's
Naini Unit (Allahabad), where both Power and Distribution Transformers are
presently manufactured, was awarded the IMS Certification (ISO 9001, ISO 14001
and OHSAS 18001).
New Transformer Unit at Vadodara,
Gujarat
Further,
to augment their manufacturing capacity, for both Power and Distribution Transformers,
a new 'Greenfield Unit' is being put up at Kotambi, Vadodara-Halol Highway,
Gujarat. The ground breaking ceremony for this project was held on April 1,
2007 in the august presence of the Hon'ble Chief Minister of Gujarat, Shri
Narendra Modi and Mr. Philippe Guillemot, Chairman and CEO of AREVA T&D.
The proposed capital investment will be around Rs.2100 million and the Unit is
likely to commence commercial production during the forth quarter of
2008.
HV Switchgear
HV
Switchgear Unit reported a strong growth of 76% in sales. This Unit, which is
rated as one of the most modern Units by AREVA T&D Worldwide, continued to
maintain its leading position in the market. During the year, the Unit
successfully completed and installed 3 nos. of 800 kV Circuit Breakers Type
GL318 for NTPC's project at Sipat. This is the first ever delivery of 800 kV
Circuit Breaker by any Indian manufacturer. The Sipat project site was
inaugurated by the Minister for Power Mr. Sushil Kumar Shinde in January,
2007.
Cost effective
Spring operating Mechanism (FK3-1CK) has been commercialized with the support
of GIS product line. Apart from internal use, these Drives are exported to
AREVA T&D Group Companies in China (SHV), USA (USC) and Mexico (AMH).
245kV
Tri Pole Circuit Breaker (GL 314T) was commercialized during the year with the
first delivery to MSPTCL.
New HV Switchgear Unit at Padappai,
Chennai
As in
the case of Transformers, a new greenfield Unit is being put up at Padappai
(Sriperumbudur), near Chennai, due to space constraints at the existing site at
Perungudi. Land has already been acquired. Commercial production at the new
site is likely to commence during first quarter of 2009.
In due
course of time all the manufacturing activities at the existing site at Perungudi
will be shifted to the new site at Padappai.
Systems Business
2006
has been a year of turnaround for Systems business, returning to profitability
whilst also largely exceeding order intake target.
The
year under review saw the smooth execution of the first EHV 765 kV Substations
in India. This project is a land mark event in India's electrical grid as it
takes India to the extra high voltage club (EHV) for Transmission system. The
project was commissioned two months ahead of contract schedule.
Several
other projects of Industry and infrastructure were successfully completed
(Maruti Suzuki two wheeler plant, Saint Gobain Chennai floating glass furnace,
TISCO BLA in Jamshedpur, Essar Power in Hazira, GVK combined cycles, PGCIL
Siliguri, Purnea 1400 kV, SVC of JSPL Raigarh).
The
main orders of the year are:
·
NALCO group 9 and potline 4 special power supplies and
related electrical systems.
·
Gangavaram sea port material handling electrical
distribution system.
·
Export order for Saint Gobain Mexico substation and
electrical distribution.
·
Three orders from WBSEB for 132 kV and 220 kV
substations.
·
Three orders from KPTCL 220, 132 and 66 kV
substations.
·
Two orders from PGCIL for rural electrification.
·
Three orders from PGCIL for 400 and 220 kV substations.
·
Two orders from JSEB for 132 kV substations.
Efforts
have been put in export tenders which should result in orders in 2007 in
Eastern Africa. These efforts will be pursued in the current year in the
Middle-East area.
Automation Systems
During
the year under review, Automation Systems recorded a growth of 34% in
Sales.
Prospects
for the current year are good. Orders under execution are:
-
PGCIL - NLDC India project under execution. Commissioning by April 2008.-
Bhutan DMS (commissioned in July 2007).- First DMS order from PGCIL a/c
Meghalaya Electricity Board.- PGCIL SAS for Cochin a/c Jyoti Structures.- SAS
for KPTCL.
New Instrument Transformer Unit at
Hosur
Presently,
the Instrument Transformer Unit (of erstwhile AITPL) is located at 27th KM, Bellary
Road, Doddajala Post, Bangalore with significant constraint in expansion. This
Unit is almost three decades old. Therefore, it has been decided to set up a
new manufacturing Unit with modern technology at the Company's Site at Plot No.
46, SIPCOT Industrial Complex (Phase-I), Hosur.
The
new site will be a World Class Competency Centre for High Voltage Instrument
Transformers ranging from 145 kV upto 800 kV. It will also manufacture Line
Traps upto 800 kV and Condenser Bushings for Power Transformers upto 400
kV.
The
groundbreaking ceremony for this project was held on 12th June, 2007 in the
presence of Mr.Karim Vissandjee, Chief Financial Officer, Mr. Marius Vassoille,
Executive Vice President-Products-BU of AREVA T&D, France and Mr. Rathin Basu,
Country President-India.
The
event was graced by Thiru Arcot N. Veerasamy, Hon'ble Minister for Electricity,
Govt. of Tamilnadu who laid the foundation stone. The Unit is expected to go on
stream by the fourth quarter of 2008.
Surge Arresters Business
This
business was part of ALAPL, which has since been merged with the Company.
Currently this business faces severe price war from the competitors.
During
the year the Unit had introduced new design of Zinc Oxide Varrister Blocks
leading to reduction of costs and change in design of Surge Monitor catering to
export business.
The
Unit has also successfully completed Type tests for manufacture of Surge
Arresters upto 400 KV rating and the cost of these have impacted its current
year's earnings.
Customers
The Company faced some difficulties in realising cash from some of the
SEBs. It has, therefore, been decided to be careful in selecting projects with
such SEBs till their financial positions improve.
Non T&D business activities (Motors
and Energy Meters)
Pursuant
to the Scheme of Arrangement for Reconstruction, under Sections 391 and 394 of
the Companies Act, 1956, which was duly approved by the Members and also
sanctioned by the Hon'ble Calcutta High Court vide its Order dated June 28,
2006, the non T&D business of the Company, comprising Motors and Energy
Meters, was duly transferred to the Company's then wholly owned subsidiary,
ALSTOM Industrial Products Limited (AIPL), effective January 1, 2006
('Appointed Date'). The Scheme became effective on August 14, 2006.
Subsequently, the Company's entire shareholding in AIPL, comprising 3,994,970
equity shares of Rs.10/- each, was transferred to ALSTOM Energy Limited, an
ALSTOM Group Company, for a total consideration of Rs.414,349,700/-.
With this, the Company has exited from the non T&D business
activities and ALSTOM Industrial Products Limited ceased to be a subsidiary of
the Company, effective October 18, 2006.
-
Lean manufacturing deployed in Pallavaram Unit in HA Relays
line resulted in cycle time reduction from 8 days to 0.5 days, WIP reduction by
10 times and initial productivity improvement by 10%.
- Lean manufacturing deployed in SLW in HWX and VMX lines resulted in
cycle time reduction by 60% and WIP reduction by 70%.
Overview
Indian economy grew at a rate of 9.2% as compared to GDP growth rate of 8%
during the previous year. Indian Planning Commission is targeting a growth rate
of around 9% until 2032.
The growth rate of Agriculture was 2.7% and the Industry growth rate was 10% (8.8%
in the previous year),
Manufacturing grew at a healthy rate of 11.4% (9% in the same period earlier)
aided by a growth in the capital goods sector (Capital goods sector grew at
15.9%).
Growth of Electrical Equipment Industry was up by nearly 21% as published by
IEEMA.
At present, 57% of the rural households and 12% of urban households do not have
access to electricity. Government's vision of 'Power For All by 2012', is
driving large investments in this area. Increase in quality of life is also adding
momentum to the consumption of industrial goods and eventually
electricity.
The current electricity generation capacity of 138 GW is expected to reach 216
GW by 2012 and eventually 764 GW by 2032 as per the Energy Plan released by the
Planning Commission of India in August, 2006. 11th Five Year Plan (2007-12)
proposes to add 78 GW of capacity and a further 88GW in the 12th (2012-17).
There is a peak demand shortage of around 12% and an energy shortage of 8%.
There is also a push for private sector participation to share this huge
investment in generation. This also brings in a huge challenge in view of the
success rate in planned versus actual in the past 10 years to be around 50 to
60%.
As per this plan, it is expected that at least four Ultra Mega Power Projects
(UMPP) would be ordered in 2007-12 and five more during 2012-17.
Understandably, this brings in a need to upgrade the T&D infrastructure to
transmit this increase in power generation.
There are also plans to setup a National Grid by 2012 to handle 37GW of power
flow from surplus regions to deficit regions.
The growth in Industry Segment and the investments, both domestic and foreign,
provides tremendous opportunities for their T&D products, Systems,
Automation and Services businesses,
There is a continued focus on the reduction of T&D losses.
Outlook
With the increase in investments proposed in the Power Sector, as
detailed above, future of the Company looks promising. Further, with the
amalgamation of all the T&D entities in India into a single entity, the
Company's competitive edge has improved. This should further help growth and
profitability of the Company.
It has joint
venture with GEC Installation Equipment Limited, UK and The General Electric
Company Plc.
It imports its
requirements from France and UK.
The company is in
trade terms with :
Aar Kay Enterprises
Adco Rubber
Industries
Ajanta Electronics
Alfa Industries
Allied Electricals
& Switchfuses
And Independent
Power Producers
Brite Glass Works
Private Limited
Calcutta Stripwire
Industries
Capital Enterprises
Chowdhury
Engineering Company
Deco Paints &
Chemicals
Delta Trans
Conductors Private Limited
Electro Chemicals
Esko Die Casting
Private Limited
Grandco Iron &
Allied Industries
Gururaj Radiators
Private Limited
Gyro Laboratories
Limited
Hatim Die Electric
Private Limited
Hrheem Electronics
Private Limited
Iika Metal India
Private Limited
Indian Railways
Indo-British Spring
Manufacturing Company
Jay Tara
Engineering Company
Kapson India
Private Limited
Lads Tools &
Services
Latika Engineering
Company
National Hydro
Power Corporation
National Thermal
Power Corporation
Pearl Indulation
Private Limited
Power Grid
Corporation of India Limited
Pushpanjali
Srimurugan Industries
Sinha Insulated Cables
Private Limited
State Electricity
Boards
Super Jewel
Bearings Private Limited
Super Tech
Sur Electrical
Enterprise
Tee Dee Castings
Tesla-Mag Products
Universal
Industries
V. L. Cables
Limited
Venus Engineering
Services
Vikas Enterprises
Watterman
Industries Limited
Yash International
The company’s fixed
assets of important value include land, buildings, plant and machinery,
furniture, fittings and equipment, motor vehicles and railway siding.
Parent Company
ALSTOM SA, France
It is a Public Limited
Company incorporated in France. Its
substitutes GEC ALSTHOM NV as the top tier holding company and consequently,
the entire shareholding of GEC ALSTHOM NV in the company. Constituting 66.49%
of the paid up share capital, transferred to ALSTOM SA France after obtaining
all the requisites statutory approvals.
The company then became a subsidiary of ALSTOM SA France.
Memberships
Confederation of
Indian Industry
About them:
ALSTOM in India
ALSTOM, the global leader
in power and rail transport, is in the business of designing, building and
servicing technologically advanced products and systems for the world's energy
and transport infrastructure.
In India, ALSTOM is
active in two major areas of businesses i.e. Power and Transport
Commencing its
operations in Kolkata in the 1910s and later in Chennai in the 1950s, ALSTOM in
India traces its lineage to English Electric, CEGELEC, AEI, GEC ALSTHOM, ASEA,
HBB, FLAKT and ABB, drawing its strengths from technologies developed over the
years by these companies. ALSTOM has been a long-term player in India in the
energy and transport infrastructure business, supplying critical electrical and
industrial equipment including boilers and turbines and pollution control equipment
for power plants, and transmission & distribution equipment. With its
significant presence in the transport sector in India, ALSTOM provides railway
equipment and technology solutions.
The Industrial
equipment division with annual sales of 15 Million Euro manufactures rotating
machinery, motors, industrial and domestic fans.
ALSTOM in India
helps generate nearly 40% of the total power produced in the country.
In India, ALSTOM
companies have together a turnover of about 150 Million Euro with about 2,700
employees. ALSTOM is the majority shareholder in ALSTOM Projects India Limited
In India, ALSTOM is
active in two major areas of businesses:
Power
Transport
ALSTOM's Mission:
Improve conditions
for millions of people and work towards a cleaner and better environment.
ALSTOM's Commitment:
Constantly innovate
and develop new products, which provide better performance and cost-effective
solutions.
Reduce polluting
emissions and strive towards environmental protection.
ALSTOM's hallmark
for quality in India is its commitment to providing value to customers,
shareholders, employees, vendors, and to society. They continually innovate and
develop new products, and strive to exceed their customer's expectations.
ALSTOM is a global leader
in power generation and rail transport infrastructure. The Company serves the
energy market through its activities in the field of power generation and the
transport market through its activities in rail and marine. ALSTOM's annual
sales are around €14 billion. It employs 69,000 people in over 70 countries
worldwide.
ALSTOM is listed on
the Paris Stock Exchange.
ALSTOM is the
majority shareholder in ALSTOM Projects India Limited
on 7'' April 2005,
which contained the detailed terms of the understanding reached between ALSTOM
Holdings SA and AREVA T&D SA (jointly with AREVA T&D Holdings SA) for
the acquisition of upto 26,464,400 equity shares (66.350l0) held by ALSTOM
Holdings in the Company for a consideration of Euros 14.50 million i.e Rs. 806
million which translates to Rs. 30.45 per share and an Offer to purchase upto
20% i.e. upto 7,977,495 equity shares from the public at a price of Rs. 75.03
per share.
FRENCH energy major
Areva SA plans to spend as much as Rs 806 millions to acquire a 66.35-per cent
stake in Alstom Limited, Alstom Holdings SA's Indian unit.
Areva will also
make an offer worth Rs 598 millions to the shareholders of Alstom Limited to
buy an additional 20 per cent at Rs 75.3 a share, HSBC Securities and Capital
Markets (India) Private said on behalf of Paris-based Areva in an
advertisement.
Areva's final
shareholding in Alstom Limited will depend on the response to the open offer.
The company intends to stay listed on Indian stock exchanges, HSBC said.
Areva has already
acquired the transmission and distribution assets of Alstom Holdings SA outside
India.
The offer for the
20-per cent stake opens on May 30 and closes on June 18, the advertisement
said.
The acquisition in
Alstom is being made to strengthen Areva's position in the transmission and
distribution business in India, added an announcement issued by HSBC to BSE.
Areva said in a
statement from Paris that the agreement with Alstom enables Areva to transfer
the non-transmission and distribution business to a subsidiary of Alstom.
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. 39.47 |
|
UK Pound |
1 |
Rs. 80.09 |
|
Euro |
1 |
Rs. 57.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|