MIRA INFORM REPORT
|
Report
Date : |
07.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GREAVES COTTON LIMITED |
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Registered
Office : |
Industry Manor, Appasaheb Marathe Marg, Prabhadevi, P. O.
Box No. 19127, Mumbai – 400 025, Maharashtra |
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Country
: |
India |
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Financials
(as on) : |
30.06.2006 |
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Date
of Incorporation : |
1868 |
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Com.
Reg. No.: |
11-987 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMG07833A |
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Legal
Form : |
Public limited liability company. Companies shares are
listed on stock exchanges. |
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Line
of Business : |
Manufacturer of Diamond Bits, Industrial Diamond Tools,
Oilfield Diamond Bits, High Pressure Pumps and Operating Equipment. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
8500000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established company of the Thapper
Group, a medium size industrial house in India. There has been a dramatic
improvement in the company’s performance during the financial year 2003-2004
(year ended 30/06/2004). The company could wipe out its accumulated losses
and achieve reasonable improvement in its earning per share. Trade relations
are reported as fair. Payments are normally made as per commitments. It can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Industry Manor, Appasaheb Marathe Marg, Prabhadevi,
P.O.Box No. 19127, Mumbai – 400 025, Maharashtra, India |
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Tel.
No.: |
91-22-24223747
/ 24365510 |
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Fax
No.: |
91-22-24379555/24367785 |
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E-Mail
: |
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Website
: |
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Factory
: |
Plot No. 66, MIDC
Estate, Satpur, Nashik – 422 007, Maharashtra, India J-2 MIDC Industrial
Area, Chikalthana, Aurangabad – 431 210, Maharashtra, INDIA 14 Cross Road,
Tondiarpet, Chennai – 600 081, Tamilnadu, INDIA Industrial Development
Area, Patancheru, Medak District, Andhra Pradesh – 502 319, INDIA Park Gear Works,
Chinchwad, Pune – 411 019, Maharashtra, INDIA Industrial Growth
Centre, Sector III, Falta, South-24 Parganas, West Bengal, INDIA E-2, MIDC Industrial
Area, Baramati – 413 133, Maharashtra, INDIA Plot No. 72, SIPCOT
Industrial Complex, Ranipet – 632 403, Tamilnadu, INDIA Plot Nos. 138/143,
Ambaji Industrial Estate, Abu Road, District Sirohi, Rajasthan – 307 026,
India K – 135, MIDC
Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India 148, Oggiam
Thoraipakkam, Chennai – 600096, Tamilnadu, India D – 18, Sipcot
Industrial Complex, Gummidipoondi – 601201, Tamilnadu, India New No. 67,
Thiruvottiyur High Road, Thangal, Chennai – 600019, Tamilnadu, India |
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Branches:
|
·
Thapar
House, 25, Brabourne Road, P. B. No. 702. Kolkata – 700 001, West Bengal Tel. No. 91-33-22421459 / 22423805 / 22423811 Fax No. 91-33-22424325 Email – calmgl@greavesmail.com ·
'Jaldarshan’
Ashram Road, Navrangpura, Ahmedabad – 380 009, Gujarat Tel. No. 91-79-6580428 / 6581861 Fax No. 91-79-6587783 Email – ahmmgl@greavesmail.com ·
Rani
Kunthi, 82 Burdwan Compound, Ranchi – 834 001, Bihar Tel. No. 91-651-2562069 Fax no. 91-651-2561704 Email – glranchi@vitalmail.com ·
'Guman’,
Pandit Jawaharlal Nehru Marg, Sadar, P. B. No. 129, Nagpur – 440 001,
Maharashtra Tel. No. 91-712-2526588 / 2524125 Fax No. 91-712-2541142 Email – nagmgl@greavesmail.com ·
26,
Second Line Beach, Chennai – 600 001, Tamilnadu Tel. No. 91-44-25231120 Fax No. 91-44-25224557 Email – chemgl@greavesmail.com ·
16/3,
Ali Asker Road, Bangalore – 560 052, Karnataka Tel. No. 91-80-2262062-65 Fax No. 91-80-2253472 Email – bngmgl@greavesmail.com ·
39/5567,
M G Road, Ernakulam, Cochin – 682
015, Kerala Tel. No.91-484-2369272 / 2369190 Fax No. 91-484-2382389 Email – cchmgl@greavesmail.com ·
Express
Building Annexe, 9/10, Bahadur Shah Zafar Marg, New Delhi – 110 002, India Tel. No. 91-11-23730554 98 lines) Fax No. 91-11-23359782 Email – delmgl@greavesmail.com ·
Raj
Chambers, 3rd Floor, 29/9, Rana Pratap Marg, Lucknow – 226 001,
Uttar Pradesh Tel. No. 91-522-2207711 / 2207712 Fax No. 91-522-2207863 Email – lucmgl@greavesmail.com ·
6-2-47,
A. C. Guards, First Floor, P.B. No. 9, Hyderabad – 500 004, Andhra Pradesh Tel. No. 91-40-23314025 / 23316446 Fax No. – 91-40-23318557 Email – hydmgl@greavesmail.com |
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Overseas
Offices: |
Ø
James
Greaves & Company GPO Box. 406, Brazennose House, Brazennose Street,
Manchester M60 2JA United Kingdom Tel No. (44-161) 834-0991 Fax No. (44-161) 832-0753 Telex :
669589 JG CO G E Mail : jamesgreavesco@btinternet.com
Ø
Also
at Singapore and Nairobi |
DIRECTORS
|
Name : |
Mr. P. Sachdev |
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Designation
: |
Managing Director & Chief Executive Officer |
|
Age : |
61 years |
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Qualification
: |
B.Sc., Engg. (Mech.) |
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Experience
: |
40 years |
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Date
of Appointment : |
1st February, 1966 |
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|
Name : |
Mr. Karan Taper |
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Designation
: |
Chairman |
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Name : |
Mr. S. Mukhopadhyay |
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Designation
: |
Director |
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Name : |
Mr. Vijay Rai |
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Designation
: |
Director |
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Name : |
Mr. B.R. Gupta |
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Designation
: |
UTI Nominee Director |
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Name : |
Mr. B. M. Thaper |
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Designation
: |
Additional Director |
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|
Name : |
Mr. Gautam Thapar |
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Designation
: |
Additional Director |
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|
Name : |
Dr. S. Kapur |
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Designation
: |
Director |
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Name : |
Mr. S. N. Talwar |
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Designation
: |
Director |
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Name : |
Mr. S. K. Roy |
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Designation
: |
Executive Director |
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Age : |
60 years |
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Qualification
: |
NCE (Mech.) |
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Experience
: |
40 years |
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Date
of Appointment : |
21st December, 1964 |
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Prevoius
Employment: |
Lynx Machinery |
KEY EXECUTIVES
|
Name : |
Mr. K. K. Saraf |
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Designation
: |
Vice President and Company Secretary |
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|
Name : |
Mr. T. K. Chattopadhyay |
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Designation
: |
Senior Vice President |
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Name : |
Mr. S. K. Basu |
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Designation
: |
Senior Vice President |
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Name : |
Mr. R. Varahamoorthy |
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Designation
: |
Vice President |
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Name : |
Mr. P.R. Joshi |
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Designation
: |
Vice President |
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Name : |
Mr. J. G. Sharma |
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Designation
: |
Vice President |
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Name : |
Mr. Suneel Khanna |
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Designation
: |
Group General Manager |
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Name : |
Mr. Sunil Kumar |
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Designation
: |
Group General Manager |
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Name : |
Mr. A. G. Giridharan |
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Designation
: |
Group General Manager |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
24442841 |
50.06 |
|
Mutual
Funds and UTI |
6437507 |
13.18 |
|
Banks,
Financial Institutions Insurance Companies [Central / State Government
Institutions / Non Government Institutions] |
9487706 |
19.43 |
|
Private
Corporate Bodies |
1062693 |
2.17 |
|
NRIs/
OCBs/ FIIs |
2107483 |
4.32 |
|
Resident
Individuals |
5292992 |
10.84 |
|
TOTAL |
48831222 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of Diamond Bits, Industrial Diamond Tools,
Oilfield Diamond Bits, High Pressure Pumps and Operating Equipment. |
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Product
: |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Diamond Bits |
Nos. |
19500 |
-- |
-- |
|
Industrial Diamond Tools |
Nos. |
18000 |
-- |
-- |
|
Oilfield Diamond Bits |
Nos. |
300 |
-- |
-- |
|
High Pressure Pump for Mud Slush Water |
Nos. |
110 |
110 |
173 |
|
Diamond Core Drilling Machine |
Units |
60 |
-- |
-- |
|
Operating Equipment for Drilling |
Mrs. |
60000 |
60000 |
-- |
|
Paper Tubes |
Pcs. |
6600000 |
-- |
-- |
|
Paper Cones |
Pcs. |
27231000 |
-- |
-- |
|
Parallel Tubes |
Kgs. |
9174 |
-- |
-- |
|
Spiral Tubes |
Pcs. |
2870000 |
-- |
-- |
|
Spare Parts for Earthmoving Equipments |
Units |
1200 |
1200 |
-- |
|
Special Types of Valves for drilling & other
Industrial Products |
Nos. |
6000 |
6000 |
-- |
|
Mechanical Seals |
Nos. |
3600 |
3600 |
-- |
|
Solderless Terminals |
Nos. |
60000 |
60000 |
-- |
|
Electro Magnetic Multi-disc Clutches & Brakes |
Pcs. |
4000 |
500 |
-- |
|
Diesel Engines |
Nos. |
210000 |
102500 |
54836 |
|
Electricity Operated Cran Diesel & Petrol
driven Engine Winches |
MT |
1200 |
3000 |
-- |
|
Light/Medium Heavy Structural Steel Gates and
Hoisting Machines |
MT |
1000 |
2400 |
-- |
|
Vibratory Compactors |
Units |
200 |
200 |
113 |
|
Tandom Roller |
Nos. |
-- |
-- |
65 |
|
Man Riding System |
Nos. |
7 |
7 |
-- |
|
Sky Climber |
Nos. |
50 |
50 |
-- |
|
Concrete Mixer |
Nos. |
-- |
-- |
531 |
|
Batching Plant |
Nos. |
-- |
-- |
3 |
|
Road Roller |
Nos. |
1050 |
200 |
-- |
|
Diesel Oil Engines |
Nos. |
15000 |
12500 |
3082 |
|
Generating Sets |
Nos. |
55000 |
22600 |
879 |
|
Deepwell Turbine Pumps |
Nos. |
1000 |
650 |
-- |
|
Internal Combustion Engines |
Nos. |
270000 |
220000 |
210912 |
GENERAL INFORMATION
|
Customers
: |
v
Adroit
Industries, Satara, Maharashtra v
Aress
High Duty Forging Private Limited v
Atai
Filters Private Limited v
Devgiri
Forgings Private Limited v
Domore
Tools & Accessories Private Limited v
Ellai
Lakshmi Monose’s (Private) Limited v
Gravity
Die Casters Private Limited v
Mahee
Engineering (Private) Limited v
Sai
Forge Private Limited v
Sargam
Metals Private Limited v
Siddhant
Pressing Private Limited v
Sri
Balaji Castings Private Limited v Upasana Engineering |
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No. of
Employees : |
6000 |
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Bankers
: |
v
Bank
of India v
Oriental
Bank of Commerce v
State
Bank of India v Syndicate Bank v ICICI Bank Limited |
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
Sharp
& Tannan Chartered
Accountants |
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Associates: |
v
Crompton
Greaves Limited v
Greaves
Morganite Crucible Limited v
Pacific
Greaves Pte. Limited, Singapore v
The
company was set up essentially for trading in Vietnam. |
|
|
v
|
|
Subsidiaries: |
v
Dee
Greaves Limited v
Greaves
Leasing Finance Limited v
Greaves
Midwest Engineering Company Limited v
Rajpath
Investment Limited v
Carnation
Investment Limited v
SIDVIM
AG (Overseas Subsidiary) |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 millions |
|
2500000 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 250.000 millions |
|
|
TOTAL |
|
Rs.750.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
48831222 |
Equity Shares |
Rs.
10/- each |
Rs. 488.300 millions |
|
Add : |
Shares forfeited |
|
Rs. 0.100 million |
|
|
TOTAL |
|
Rs. 488.400 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.06.2006 |
30.06.2005
|
30.06.2004
|
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
488.400 |
456.400 |
446.400 |
|
|
2] Share Application
Money |
0.000 |
24.300 |
0.000 |
|
|
3]
Reserves & Surplus |
1672.700 |
995.500 |
678.200 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
2161.100 |
1476.200 |
1124.600 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
480.200 |
595.200 |
1040.600 |
|
|
2]
Unsecured Loans |
69.700 |
191.400 |
231.400 |
|
TOTAL
BORROWING
|
549.900 |
786.600 |
1272.000 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
2711.000 |
2262.800 |
2396.600 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
1146.200 |
898.900 |
720.700 |
|
Capital work-in-progress
|
163.600 |
151.300 |
94.700 |
|
|
|
|
|
|
|
INVESTMENT
|
894.300 |
390.100 |
390.300 |
|
DEFERREX TAX ASSETS
|
42.900 |
392.500 |
700.300 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
879.600 |
664.500 |
645.700 |
|
|
Sundry Debtors
|
919.600 |
625.400 |
564.300 |
|
|
Cash & Bank Balances
|
335.200 |
661.500 |
442.800 |
|
|
Other Current Assets
|
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances
|
575.600 |
542.400 |
441.300 |
Total Current Assets
|
2710.000 |
2493.800 |
2094.100 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1948.500 |
1689.100 |
1455.200 |
|
|
Provisions
|
297.500 |
374.700 |
148.300 |
Total Current Liabilities
|
2246.000 |
2063.800 |
1603.500 |
|
Net Current
Assets
|
464.000 |
430.000 |
490.600 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
2711.000 |
2262.800 |
2396.600 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005
|
30.06.2004
|
Sales Turnover [including other income]
|
8414.600 |
6604.200 |
6418.700 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1321.100 |
1016.100 |
333.900 |
Provision for Taxation
|
470.200 |
395.200 |
116.600 |
Profit/(Loss) After Tax
|
850.900 |
620.900 |
217.300 |
|
|
|
|
|
Export Value
|
N.A. |
215.600 |
216.100 |
|
|
|
|
|
Import Value
|
N.A. |
297.200 |
268.800 |
|
|
|
|
|
Total Expenditure
|
7009.100 |
5582.200 |
5544.000 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.09.2006 [1st Qtr.] |
31.12.2006 [2nd Qtr.] |
Sales Turnover
|
|
2837.600 |
3233.300 |
Other income
|
|
21.300 |
27.900 |
Total Income
|
|
2858.900 |
3261.200 |
Total Expenditure
|
|
2442.400 |
2759.100 |
Operating profit
|
|
416.500 |
502.100 |
Interest
|
|
31.600 |
51.400 |
Gross Profit
|
|
384.900 |
450.700 |
Depreciation
|
|
37.300 |
38.900 |
Tax
|
|
67.100 |
72.600 |
Reported PAT
|
|
245.500 |
298.200 |
Notes
200609 Quarter 1
Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (167.00)million Consumption of Raw Materials Rs 2166.20
million Staff Cost Rs 139.60 million Other Expenditure Rs 303.60 million Tax
Includes Provision for MAT (net after adjustment of excess provision of
taxation in prior years) Rs 65.00 million Deferred Tax Liability Rs 35.00
million Fringe Benefit Tax Rs 2.10 million EPS is Basic Status of Investor
Complaints for the quarter ended September 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 02
Complaints disposed off during the quarter 02 Complaints unresolved at the end
of the quarter Nil 1. Figures for the corresponding previous period include the
operations of crucible distribution business whose rights have been
transferred. 2. The Board has declared a first Interim Dividend at the rate of
Rs 2.00 per share (Cash out go Rs 11l.40 million). 3. Provision for current tax
is net of write back of MAT of Rs 20 million of previous year, as per Income
tax Act, 1961. Figures for the previous periods represent provision on MAT
basis only. 4. Figures for the previous period have been regrouped /
reclassified to make the same comparable with the current period figures. 5.
The above financial results were subjected to limited review by the statutory
auditors. 6. The above financial results were reviewed by the Audit Committee
and then approved by the Board at its meeting held on October 19, 2006.
200612 Quarter 2
EPS is Basic 1.Figures for the corresponding
previous periods include the operations of crucible distribution business whose
rights have been transferred. 2.The Board has declared a second Interim,
Dividend at the rate of Rs 2.00 per share (Cash out go Rs. 111.400
millions).Thus, including the first interim dividend of Rs. 2.00 per share, the
total interim dividend would be Rs. 4.00 per share, for the financial year
2006-07.The Company has fixed Friday, 9th February, 2007 as the 'Record Date'
for the purpose of payment of the second Interim Dividend. 3.Investor
complaints outstanding at the beginning of the quarter were nil, 4 complaints
were received and resolved during the quarter ended 31st December, 2006. 4.
Provision for current tax is net of write back of MAT of Rs. 20 millions and adjustment
of carried forward loss/depreciation of previous years, as per Income Tax Act ,
1961. Figures for the previous periods represent provision on MAT basis only.
5. Figures for the previous periods have been regrouped/reclassified to make
the same comparable with the current period figures. 6. The above financial
results were subjected to limited review by the statutory' auditors. 7. The
above financial results were reviewed by the Audit Committee and then approved
by the Board at its meeting held on 31st January, 2007.
KEY
RATIOS
|
PARTICULARS |
30.06.2006 |
30.06.2005
|
30.06.2004 |
|
Debt Equity Ratio |
0.38 |
0.84 |
1.97 |
|
Long Term Debt Equity Ratio |
0.38 |
0.84 |
0.52 |
|
Current Ratio |
1.28 |
1.50 |
1.09 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.75 |
4.30 |
3.84 |
|
Inventory |
12.17 |
11.15 |
10.06 |
|
Debtors |
12.16 |
12.27 |
9.90 |
|
Interest Cover Ratio |
12.54 |
6.78 |
2.18 |
|
Operating Profit Margin (%) |
15.12 |
14.17 |
12.33 |
|
Profit Before Interest and Tax Margin (%) |
13.71 |
12.62 |
10.05 |
|
Cash Profit Margin (%) |
9.53 |
8.12 |
5.82 |
|
Adjusted Net Profit Margin (%) |
8.13 |
6.57 |
3.54 |
|
Return on Capital Employed (%) |
53.11 |
40.74 |
26.28 |
|
Return on Net Worth (%) |
43.43 |
38.91 |
27.46 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.378.90/- |
|
Low |
Rs.363.00/- |
LOCAL AGENCY FURTHER INFORMATION
BACKGROUND
The company was originally formed in 1868 as a partnership
firm between James Greaves and George Cotton to undertake import/export trading. The firm took up
manufacturing of cotton yarn, but discontinued it in 1920. It forayed into
engineering related activities by taking up import of machinery/equipments in 1922. In 1937, the
company promoted 2 companies manufacturing ceiling fans and other electrical
products. These two companies were merged in 1966 to form Crompton Greaves, in
which the company still has a significant equity stake. Over the years, the
company entered into technical and financial collaboration with several
international players and formed a number of subsidiaries/joint ventures (most of these have been merged with the company
over last few years). After independence in 1947, ownership transferred to
Indian hands, when Mr. L. K. Thapar bought the controlling interest from
Greaves family. Mr. L. K. Thapar passed away in 1962, since then Mr. L. M.
Thapar is heading the operations, In FY93, the company disposed off its Marol
facilities and the sales proceeds were used to meet outflow on account of VRS
(Voluntary Retirement Scheme).
The company was originally incorporated under the name and
style of “Greaves Cotton and Company Private Limited” on 29th March,
1922 at Mumbai in Maharashtra. Over the years the name “Greaves Cotton” became
synonymous with the Engineering business in India and abroad. In order to have
its own identity the name of the company was changed to “Greaves Limited” in
the year 1993. However the company is still being perceived by the customers,
associates, industry and institutions as “Greaves Cotton and Company Limited”
because of very strong Brand Equity of “Greaves Cotton” and also often gets
mixed wit the name of Crompton Greaves. Hence, the very purpose for which the
name was changed has been defeated and in addition, valuable Brand Equity of
“Greaves Cotton” is getting eroded.
The company changed the name to present w. e. f 28/11/2003
to avoid confusion and to realize the benefits of the strong Brand Equity that
“Greaves Cotton” enjoys in the market place
The company, part of the Thapar Group, was founded in 1859.
Subsequently in 1950, Greaves was converted into a Public Limited Company.
It’s Company Registration Number is 987.
BUSINESS
The company is engaged in manufacturing of Diamond Bits,
Industrial Diamond Tools, Oilfield Diamond Bits, High Pressure Pumps for Mud
Slush & Water, Diamond Care Drilling Machine, Operating Equipment for
Drilling, Paper Tubes, Paper Cones, Parallel Tubes, Spiral Tubes, Spare Parts
for Earth Moving Equipments, Special types of Valves for drilling and other
Industrial Products, Mechanical Seals, Solderless Terminals, Rock Roller Bits,
Electro-magnetic Multi-disc Clutches & Brakes, Electricity Operated Crane,
Diesel & Petrol driven Winches, Light/Medium/Heavy Structural Steel Works, Gates
& Hoisting Machines, Vibratory Compactors, Tandom Roller, Man Riding System, Sky Climber, Concrete
Mixer, Batching Plant, Road Roller, Discrete Devices & Intergated Circuits,
Diesel Oil Engines, Generating Sets, Deepwell Turbine Pumps, Marine &
Industrial Gear Boxes, Internal Combustion Engines, Tractors, Acrylonitrite
Butadiene Styrene, High Impact Polystyrene, Styrene Acrylonitrite and Diesel
Three Wheeler Auto Rickshaw.
The company is the largest manufacturer of internal
combustion engines. Company is one of India’s leading engineering companies. It
manufactures a wide range of industrial products including diesel engines,
generating sets, engine-driven pumps, portable engines and gensets, power
transmission equipment, thermal equipment, semi conductor devices and gearboxes
to meet the requirement of core sectors. The business operations of the company
are divided into business groups strategically structured to ensure maximum
focus on each business area and yet retain a unique synergy in the operations.
The
business operations of the company are divided into following business groups :
|
Business Groups |
Product Lines |
|
Power
generation |
Diesel
Engines – 15-1000 HP Generating
sets – 15-520 KVA |
|
Power
transmission |
Industrial
gearboxes and fluid couplings |
|
Portable
engines |
Internal
combustion engines 1.5 to 11 HP |
|
General
engineering |
Cranes,
Concrete pumps, vibratory compactors, rock roller bits, crucibles |
|
Industrial
products |
ABS /
HIPS resins, pumps, stem traps, semiconductor devices |
|
Farm
equipment |
Power
tillers – 12 to 14.3 HP @2000 TM |
Company has
an independent division marketing high technology systems for marine, aviation
and electronic applications.
In the recent years,
company has made rapid strides towards globalisation. Company exports several products and systems to virtually every
continent. Company also undertakes international
trading activities including third country trading covering both export and
import relating to engineering goods and consumables for industry,
infrastructure and projects.
Company’s
product range includes –
|
Business Group |
Products |
|
Power
Generation |
Diesel
Engines Gensets Dual Fuel
Engines / Gensets Gas
Genset |
|
Power
Transmission |
Worm
Gears Helical
Gears & Bevel Helical Gears Worm/Heliworm/ Helical / planetary. Bevel helical geared
motors Custom
built. Helical, bevel helical gearboxes Vertical
coal mill gearbox Lift
machine Traction
type variable speed tyre |
|
Portable
Engines |
Engines Gensets Pump sets |
|
General
Engineering |
Concrete
Pumps Transit
mixers Concrete
batching plants\truck moulded pumps Concrete
pavers Single
drum compactors Tandem
compactors Light
compaction equipment Rock
Rollers Bits Silicon
Carbide & clay graphite crucibles Cast
& forged rolls Nickel
alloys, titanium, electrodes Filler
metals , miscellaneous materials Shearers
Road headers, manriding systems, mine electrical |
|
Industrial
Products |
ABS,
Hips, San & Gpps, Resins Steam
Taps, special strainers Horizontal
& Vertical Slurry Pumps Diaphragm
Valves Butterfly
Valves Power
Tillers |
Business and Outlook
The Company recorded excellent performance on
all major financial parameters with gross sales moving upto Rs. 9396 millions
from Rs. 7301.700 millions in the previous year, i.e. growth of 29%. The
Company continued to accelerate its leadership in all its products. Despite a
steep hike in some of the major input costs, the EBIDTA margin improved to 15%
as against 14% last year.
The year gone by has been one of consolidation and strong growth in the core
products of the Company through higher productivity and enhanced market
penetration. During the year under report, the Indian economy, particularly the
manufacturing sector has shown rapid growth with an equally promising outlook
for the near future.
With the Central Government continuing its thrust on certain priority areas
like agriculture and infrastructure sectors, your Directors are reasonably
confident of continuing the growth momentum of the Company.
Dividend
Three Interim Dividends, each of Rs. 2/- per share declared by the Directors on
November 7, 2005, January 30, 2006 and April 18, 2006, have been already paid
to the Members.
In view of excellent performance, the Directors have recommended a Final
Dividend of Re. 1/- per share, taking the total dividend for the financial year
2005-06 to Rs. 7/- per share. Thus, the total cash outgo (inclusive of
Corporate Dividend Tax) on account of dividends would work out to Rs. 381.800
millions, representing 41 % of net operational cash earnings of the
Company.
Issue of Capital
During the year under report, a total of 32,00,000 new Equity Shares of Rs.
10/- each at a price of Rs. 76/- per share were allotted to the Promoter Group
Companies consequent upon their exercise of options in the Equity Warrants
Series 'A' and Series 'B' allotted to them in November 2004.
Promoter Group
The Company is a part of B M Thapar Group. The Promoter Group holding in the
Company currently is 50.06%. The Members may note that B M Thapar Group, inter
alia, comprises of the following Companies :
Crompton Greaves Limited
English Indian Clays Limited
Premium Energy Transmission Limited
Pembril Industrial & Engineering Company
Private Limited
DBH International Private Limited
Karun Carpets Limited
Solaris Holdings Limited
Greaves Leasing Finance Limited
Bharat Projects Limited
Dee Greaves Limited
KCT Chemicals & Electricals Limited
Divestment
During the year under report, the Company divested its 25.5% stake in the
Equity of Greaves Morganite Crucible Limited (GMCL) for a consideration of Rs.
107.100 millions. Consequently, the Company also exited from the distribution
business relating to GMCL products, for a consideration of Rs. 52 millions. The
above transactions resulted in a combined profit of Rs. 142.5 millions.
Fixed Assets
The
company’s fixed assets of important value includes Goodwill (Cost of
infrastructure), Freehold Property (A), Leasehold Property (B), Plant &
Equipment, Technical Know-how, Furniture and Vehicles.
Group
The company belongs to Thapar Group, currently headed by Mr.
L. M. Thapar. Prominent group companies are : Greaves Limited, Crompton Greaves
(Electrical/ Engineering products),
A. P. Rayon (rayon grade wood pulp), Ballarpur Industries (paper and related
products). Mr. L. M. Thapar companies’ control will be passed on to his eldest
nephew Mr. Vikram Thapar.
The company promoted the first ever Indo-Russian joint
venture in the private sector-- Rajasthan Polymers and Resins, to manufacture
20000 TPA of ABS/HIPS resins during 1991. In 1992-93, Greaves Semi-conductor, a
subsidiary, was amalgamated with the company. Two units of Enfield India were
also acquired to enhance the company's core strengths in engine manufacture and
marketing.
The company expanded the engine manufacturing capacity to
65000 engines p.a. to manufacture the latest diesel engines in collaboration
with Klockner-Humboldt-Duetz, Germany. The company has tied up with SAME,
Italy, to manufacture agricultural tractors. The tractor project was set up at
Ranipet, Tamilnadu. A port and marine infrastructure development company is
being set up as a joint venture with the Black Seas port authorities. Greaves
has also signed a MoU with the Maharashtra Government for a Rs. 35000 millions
industrial park. The petrol engine unit and the Greaves Heavy Engineering unit
received the ISO 9000 certification in 1995-96.
During the year 1997-98, the company completed the
divestment of its Greaves Garuda 3-wheeler Auto plant at Baramati in favour of
a Joint Venture Company - Piaggio Greaves Vehicles Limited formed in
collaboration with Piaggio Veicoli Europe SpA of Italy. The company holds 49%
equity in the joint venture and the balance is with Piaggio.
It has made a foray into the manufacture of tractors, with
the launch of 50 HP tractor in technical collaboration with SAME of Italy. The
SAME Greaves 503 is to be produced by Greaves at its new Rs. 400 millions facility
at Ranipet in Tamilnadu. The plant will have a capacity to produce 9000
tractors. Besides tractors, it has also entered into an agreement with the
Italian tractor major for the manufacture of tractor engines. The engine plant,
also in Ranipet, has been set up a separate joint venture company, SAME Greaves
Limited, in which SAME and Greaves will hold equity in the ratio of 51:49. A
joint venture company between Greaves Limited and Piaggio SPA has been formed
to produce three wheelers in India.
In 1999-2000, Rajasthan Polymers & Resins was merged
with the company. The tractor business was transferred in the joint venture
company SAME Greaves Tractors, formed in collaboration with SAME Deutz FAHR SpA
of Italy and SAME Deutz Fahr Holding and Finance BV, The Netherlands in March,
2000.
The company had made a reference to BIFR due to erosion of
its networth. It has also decided to give major thrust to its own manufacturing
Diesel Engines, Gear Boxes, and Construction Equipments and trading. It also
planning to add new product ranges for trading business.
In 2000-01 the company has exited from the business venture
with Piaggio Greaves Limited and SAME Greaves Limited. As there was a heavy
debt owed by erstwhile RPRL the operations of the unit is under suspension and
the company is also proposing for a OTS of RPRL debts with the secured lenders.
WEBSITE DETAILS
Greaves
- A multi-faceted Engineering Enterprise
Greaves Cotton Limited, established in 1859, is one of India’s leading and
well-diversified engineering companies. It manufactures a wide range of
industrial products to meet the requirement of core sectors in India and
abroad. The Company’s core competencies are in Diesel/Petrol engines, Gensets,
Agro Equipment and Construction Equipment. The business operations of the
Company are divided into various Business Groups strategically structured to
ensure maximum focus on each business area and yet retain a unique synergy in
the operations:
The Business Groups are:
|
Business
Groups |
Product
Lines |
|
Power
Generation Group |
Large
Diesel Engines, Generating Sets up to 1000 kva |
|
Agro Equipment Group |
Petrol /
Kerosene Engines: 1 to 4 HP, Gensets, Pump sets and Power Tillers |
|
Light
Engines Group |
Diesel
Engines : 4.4 to 11 HP |
|
Infrastructure
Equipment |
Concreting
Pumps, Transit Mixers, Vibratory Compactors and Crucibles |
Besides the Business Groups, Greaves has an independent Division marketing high
technology systems for marine, aviation and electronic applications.
In the recent years, Greaves has made rapid strides towards globalization. The
Company exports several of its products to various countries.
Greaves has 6 Manufacturing Units located all over India.
An extensive sales and service network manned by highly skilled and dedicated
workforce keeps Greaves in touch with its customers anytime, anywhere.
MISSION STATEMENT
To manufacture and market a wide range of high
quality products, services and systems of world class technology to the total
satisfaction of customers in domestic and overseas markets
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.06 |
|
UK Pound |
1 |
Rs.86.34 |
|
Euro |
1 |
Rs.57.46 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
50 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |