MIRA
INFORM REPORT
|
Report Date : |
12.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GENUS
OVERSEAS ELECTRONICS LIMITED |
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Registered Office : |
D-116,
Okhla Industrial Area, Phase – I, Okhla, New Delhi - 110020 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.08.1992 |
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Com. Reg. No.: |
133383 |
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CIN No.: [Company
Identification No.] |
L51909DL1992PLC133383 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHG02830C |
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PAN No.: [Permanent
Account No.] |
AAAFG9466A |
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Legal Form : |
Public Limited Liability company.
Company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Hybrid
Microcircuits (HMC), Resistor Network, SMT/PCB,
Energy Meter and parts and Accessories for Energy Meter |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
1750000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having satisfactory track records.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
D-116,
Okhla Industrial Area, Phase – I, Okhla, New Delhi – 110020 |
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Tel. No.: |
91-11-41015700-01 |
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Fax No.: |
91-11-26819028 |
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E-Mail : |
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Website : |
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Corporate
Office/ Factory : |
SPL –
3, RICO Industrial Area, Sitapura Tonk Road, Jaipur – 302022, Rajasthan,
India |
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Tel.
No.: |
91-141-2770003/4/9,
2770401/2 |
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Fax
No.: |
91-141-2770319
/ 2771355 |
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Factory
: |
Plot
No 12, Sector 4, IIE SIDUCUL, BHEL, Haridwar (Uttaranchal) |
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Tel.
No.: |
91-1334-239232/4 |
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Fax
No.: |
91-1334-239233 |
DIRECTORS
|
Name : |
Mr
Ishwar Chand Agarwal |
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Designation : |
Chairman
and Managing Director |
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Name : |
Mr
Rajendra Kumar Agarwal |
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Designation : |
Executive
Director |
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Name : |
Mr
Jitendra Kumar Agarwal |
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Designation : |
Executive
Director |
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Name : |
Mr
Giriraj Kishore Sharma |
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Designation : |
Executive
Director |
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Name : |
Mr
Vishnu Todi |
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Designation : |
Director
(Executive Director upto 31.03.2006) |
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Name : |
Kailash
Chandra Agarwal |
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Designation : |
Director |
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Name : |
Mr B S
Solanki (Wg. Cdr. (Retired)) |
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Designation : |
Director |
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Name : |
Mr
Rameshwar Pareek |
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Designation : |
Director |
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Name : |
Mr Ram
Dayal Sharma |
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Designation : |
Director |
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Name : |
Mr C K
Jain (Doctor) |
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Designation : |
Director |
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Name : |
Mr
Indraj Mal Bhutoria |
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Designation : |
Director |
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Name : |
Mr
Dharma Chand Agarwal |
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Designation : |
Director |
KEY EXECUTIVES
|
Name
: |
Mr Raj
Kumar Yadav |
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Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Category
of Shareholders |
No. of Shares |
Percentage of Holding |
|
A.
Promoters |
5553291 |
53.229 |
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B.
Non-Promoters |
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1.
Institutional Investors |
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|
|
Mutual Funds and UTI |
47400 |
0.454 |
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Banks/FI/Insurance Company |
755813 |
7.245 |
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FIIs |
472800 |
4.532 |
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2.
Others |
|
|
|
Corporate Bodies |
1149704 |
11.020 |
|
Indian Public |
1725590 |
16.540 |
|
NRIs/OCBs |
700483 |
6.714 |
|
Clearing Members/ Corporation |
27754 |
0.266 |
|
Total |
10432835 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Hybrid
Microcircuits (HMC), Resistor Network, SMT/PCB,
Energy Meter and parts and Accessories for Energy Meter |
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Products : |
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Exports to : |
Subject
Exports its products to Denmark, UK, Jordon, USA,
etc. |
PRODUCTION
STATUS
|
Particulars |
Unit |
|
Installed Capacity |
Actual Production |
|
Energy Meter |
Numbers |
|
31.03.2006 -1350000 31.03.2005 – 1350000 |
31.03.2006 - 766432 31.03.2005 - 1070086 |
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Resistor Network |
Numbers |
|
31.03.2006 - -- 31.03.2005 - -- |
31.03.2006 - 202875 31.03.2005 - 164610 |
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SMT / PCB |
Million Square Inches |
|
31.03.2006 - 7.50 31.03.2005 - 7.50 |
NA |
|
HMC |
Million Square Inches |
|
31.03.2006 - 3.00 31.03.2005 - 3.00 |
NA |
|
Taxi Meters |
Numbers |
|
31.03.2006 – 50000 31.03.2005 – 50000 |
31.03.2006 - 126 31.03.2005 - 434 |
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SMT / PCB |
Numbers |
|
NA |
31.03.2006 – 864897# 31.03.2005 – 886908# |
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HMC |
Numbers |
|
NA |
31.03.2006 – 708330* 31.03.2005 – 1259527* |
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Power Invertors |
Numbers |
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NA |
31.03.2006 -35202@ 31.03.2005 -5144@ |
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Set Top Box |
Numbers |
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NA |
31.03.2006 – 3219@ 31.03.2005 - -- |
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* Includes Nos. 547085 (Previous Year 959640), HMCs used in captive
consumption
# Includes Numbers 832494 (Previous year
841435), PCBs used in captive consumption.
GENERAL
INFORMATION
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No. of Employees : |
About 450 |
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Bankers : |
Bank
of Baroda State
Bank of India Punjab
National Bank Industrial
Development Bank of India Limited State
Bank of Indore Standard
Chartered Bank |
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Banking Relations : |
Satisfactory |
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Auditors : |
M L
Agarwal and Company Chartered
Accountants |
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Address : |
C-20,
Bhagwan Das Road, Jaipur |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,51,60,000 |
Equity
Shares |
Rs 10/- each |
Rs 151.600 Millions |
|
504,000 |
10%
Redeemable Preference Share |
Rs 100/- each |
Rs 50.400 Millions |
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Total |
|
Rs 202.000
Millions |
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,04,32,835 |
Equity
Shares |
Rs 10/- each |
Rs 104.328 Millions |
|
5,00,000 |
10%
Redeemable Preference Share |
Rs 100/- each |
Rs 50.000 Millions |
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Total |
|
Rs 154.328
Millions |
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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 |
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|
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1] Share Capital |
154.328 |
151.587 |
151.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
303.338 |
132.306 |
75.000 |
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH |
457.666 |
283.893 |
226.600 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
701.553 |
379.610 |
258.100 |
|
2] Unsecured Loans |
244.046 |
63.895 |
83.900 |
|
TOTAL BORROWING |
945.599 |
443.505 |
342.000 |
|
DEFERRED TAX LIABILITIES |
32.626 |
28.644 |
0.000 |
|
|
|
|
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TOTAL |
1435.891 |
756.042 |
568.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
323.106 |
257.639 |
218.000 |
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Capital work-in-progress |
97.595 |
0.000 |
5.500 |
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|
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INVESTMENT |
17.580 |
0.080 |
0.100 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
375.373 |
138.884 |
115.200 |
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Sundry Debtors |
1115.363 |
411.589 |
372.400 |
|
Cash & Bank Balances |
228.342 |
102.931 |
88.700 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
|
Loans & Advances |
233.672 |
70.703 |
41.800 |
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Total Current Assets |
1952.750 |
724.107 |
618.100 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities and Provisions |
|
|
255.400 |
|
Provisions |
19.400 |
||
|
Total Current Liabilities |
955.258 |
226.694 |
274.800 |
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Net Current Assets |
997.492 |
497.413 |
343.300 |
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MISCELLANEOUS EXPENSES |
0.118 |
0.910 |
1.700 |
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TOTAL |
1435.891 |
756.042 |
568.600 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
2406.899 |
1541.425 |
968.400 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
172.863 |
89.872 |
55.800 |
|
Provision
for Taxation |
19.484 |
11.194 |
20.200 |
|
Profit/(Loss)
After Tax |
153.379 |
78.678 |
35.600 |
|
|
|
|
|
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Export
Value |
32.831 |
22.819 |
NA |
|
|
|
|
|
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Import
Value |
268.362 |
313.296 |
NA |
|
|
|
|
|
|
Total
Expenditure |
2234.036 |
1451.553 |
NA |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 1st Qtr |
30.09.2006 2nd Qtr |
31.12.2006 3rd Qtr |
|
Sales Turnover |
509.9 |
779.9 |
841.7 |
|
Other Income |
0.22 |
5.6 |
4.2 |
|
Total Income |
51.21 |
785.5 |
845.9 |
|
Total
Expenditure |
430.8 |
659.3 |
715.4 |
|
Operating
Profit |
81.3 |
126.2 |
130.5 |
|
Interest |
26.4 |
48.2 |
42.5 |
|
Gross Profit |
54.9 |
78.0 |
88.0 |
|
Depreciation |
12.1 |
12.0 |
14.6 |
|
Tax |
4.9 |
8.3 |
8.7 |
|
Reported PAT |
36.8 |
56.3 |
62.7 |
200606
Quarter 1 --------------- Notes Expenditure Includes (Increase) / Decrease in
Stocks Rs (12.695) million Consumption of Raw Materials Rs 332.615 million
Staff Cost Rs 23.211 million Other Expenses Rs 87.577 million Tax Includes
Provision for Current Tax Rs 4.900 million Deferred Tax Rs 1.100 million EPS is
Basic & Diluted Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 03 Complaints disposed off during the quarter 03
Complaints unresolved at the end of the quarter Nil 1. The above results were
reviewed by the Audit Committee and were thereafter taken on record by the
Board of Directors in its meeting held on July 28, 2006. 2. Out of 2% Foreign
Currency Convertible Bonds (FCCBs) due 2010 amounting to US $ 2.50 million
issued by the Company in December, 2005, remaining FCCBs aggregating US $ 1.50
million have been converted into 413785 Equity Shares of face value of Rs 10/-
each at a conversion price of Rs 162 per share between April 01, 2006 to June 30,
2006. All these newly allotted Equity Shares, rank pari passu in all respects
with the existing paid up Equity Shares of the Company and have resulted in
increase in the Paid up Equity Share Capital and Share Premium Account of the
Company. 3. The company has further issued Zero Coupon Foreign Currency
Convertible Bonds (FCCB5) due 2011 amounting to US $ 7.50 Million in July 2006
for capital expenditure. 4. The Auditors of the company have carried out the
'Limited Review' of the above financial results for the quarter ended June 30,
2006. 5. Previous Year's figures have been regrouped / rearranged wherever
necessary. 6. The Company is primarily engaged in power segment business of
Electronic Energy Metering Projects, Hybrid Microcircuits, PCB5 and Resistor
Networks, and Other electronic products therefore, the figures shown above
relate to that segment.
200609
Quarter 2 --------------- Notes Expenditure Includes (Increase) / Decrease in
Stocks Rs 23.597 million Consumption of Raw Materials Rs 512.956 million Staff
Cost Rs 32.408 million Other Expenses Rs 90.354 million Tax Includes Provision
for Current Tax Rs 8.30 million Deferred Tax Rs 1.40 million EPS is Basic &
Diluted 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 04 Complaints disposed off during the quarter 04 Complaints
unresolved at the end of the quarter Nil 1. The above results were reviewed by
the Audit Committee and were thereafter taken on record by the Board of
Directors in its meeting held on October 17, 2006. 2. The Auditors of the
Company have carried out the 'Limited Review' of the above financial results
for the quarter ended September 30, 2006. 3. The Company has entered into a
joint venture with Mobix to set up a new unit in Brazil to manufacture AMR
based electronic energy meters. 4. The Board reviewed the total order book
position of worth Rs 4914.00 million including turnkey projects, as on October
01, 2006. 5. Previous Year's figures have been regrouped / rearranged wherever
necessary. 6. The Company is primarily engaged in Power Segment Business of
Electronic Energy Metering projects, Hybrid Microcircuits, PCB's and Resistor
Networks and other electronic products therefore thefigures shown above relate
to that segment. 6. The Company is primarily engaged in power segment business
of Electronic Energy Metering Projects, Hybnd Microcircuits, PCBs and Resistor
Networks, and other electronic products therefore, the figures shown above
relate to that segment.
200612
Quarter 3 --------------- Notes Expenditure Includes (Increase) / Decrease in
Stocks Rs 3.186 million Consumption of Raw Materials Rs 542.592 million Staff
Cost Rs 18.065 million Other Expenses Rs 151.566 million Tax Includes Provision
for Current Tax Rs 8.754 million Deferred Tax Rs 2.000 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 Complaints
unresolved at the end of the quarter Nil 1. The above results were reviewed by
the Audit Committee and were thereafter taken on record by the Board of
Directors in its meeting held on January 18, 2007. 2. The Auditors of the
Company have carried out the 'Limited Review' of the above financial results
for the quarter ended December 31, 2006. 3. The Board reviewed the total order
book position of worth Rs 4700 million including turnkey projects. 4. Land has
been acquired by the joint venture (formed by Genus with Mobix) in Brazil to
set up a new unit to manufacture AMR based electronic energy meters and further
work has been started on the project. 5. Previous Year's figures have been
regrouped / rearranged wherever necessary. 6. The Company is primarily engaged
in power segment business of Electronic Energy Metering Projects, Hybrid
Microcircuits, PCBs and Resistor Networks, and other electronic products
therefore, the figures shown above relate to that segment.
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
|
1.87 |
1.54 |
1.63 |
|
Long
Term Debt-Equity Ratio |
|
0.72 |
0.44 |
0.40 |
|
Current
Ratio |
|
1.28 |
1.23 |
1.18 |
|
TURNOVER
RATIOS |
|
|
|
|
|
Fixed
Assets |
|
5.41 |
4.45 |
3.16 |
|
Inventory |
|
8.93 |
11.96 |
10.72 |
|
Debtors |
|
3.01 |
3.88 |
2.22 |
|
Interest
Cover Ratio |
|
3.30 |
2.83 |
2.15 |
|
Operating
Profit Margin(%) |
|
12.63 |
10.49 |
11.62 |
|
Profit
Before Interest And Tax Margin(%) |
|
10.80 |
9.14 |
11.31 |
|
Cash
Profit Margin(%) |
|
8.51 |
6.52 |
4.17 |
|
Adjusted
Net Profit Margin(%) |
|
6.68 |
5.18 |
3.86 |
|
Return
On Capital Employed(%) |
|
23.30 |
21.49 |
18.20 |
|
Return
On Net Worth(%) |
|
46.27 |
35.91 |
18.13 |
STOCK PRICES
|
Face
Value |
Rs.
10/- each |
|
High |
Rs.
248.00 |
|
Low |
Rs.
246.00 |
LOCAL AGENCY
FURTHER INFORMATION
Genus Overseas Electronics Limited, an ISO 9001: 2000 Public Limited Company is a part of the reputed US $100 million Kailash Group. It was founded by Mr. I. C. Agarwal in 1994.
Driven by the spirit of innovation, the company is committed to making complex technologies simple and more affordable for consumers. Already a leading name in Hybrid Microcircuits and Electronic Energy Meters in India, the company is today gaining increasing global acceptance, as a Contract Manufacturer of choice, for leading International OEMs.
The success of Genus is a fascinating story of innovation and path-breaking product developments. Armed with globally competitive R&D and manufacturing facilities, Genus is a leading company offering turnkey design-to-end-product solutions.
Company’s solutions span the following products/services -
· Energy Management Systems (Intelligent Panel Meters)
· Electronic Auto/ Taxi Meters (Fare Meters)
About
Company
GENUS
OVERSEAS ELECTRONICS LIMITED., an ISO-9001 Company
is a Public Limited Concern with an investment of US$ 7 million. The company
has been promoted by Kailash Group of Industries having interest in diversified
fields, with a group turnover of more than US$ 100 million.
..
GENUS was established in 1995 in the historic Pink City of India, Jaipur. Company is a leading manufacturer of Thick Film Hybrid Microcircuits in India. Company has three SMT lines dedicated to Contract Manufacturing of PCB Assemblies. The annual plant capacities of Hybrid Microcircuits and PCB Assemblies are 4.50 million square inches and 30 million square inches respectively. The plant produces more than 2.4 million Single Phase and Three Phase Electronic Electricity Meters annually.
GENUS has the most modern plant with Class 10,000 and 100,000 clean room work areas. The advanced design software, latest manufacturing equipment and Automatic testing systems ensure highest quality products at competitive prices.
GENUS is now supplying Hybrids to Telecom, Industrial, Defence, Consumer,
Automotive, Informatics, Power sectors and for Metering products.
GENUS is engaged in Electronic Manufacturing Services, which besides Contract
Manufacturing of SMT/ Through-hole PCB assemblies includes supply of
enclosures/ casings and accessories, wherever applicable. The workmanship of
PCB Assemblies has been well received by customers both in India and abroad.
The strength of GENUS lies in its strong
Design and Development team, instrumental in development of Low end ASIC based
Electricity Meters to High end Programmable Multi-functional Intelligent Single
Phase & Three Phase Meters with in-built advanced security and anti-tamper
features. Expertise in Embedded Software ensures that Company’s products are
customized as per the specific requirement.
.
GENUS has a fully equipped modern tool room with the latest CAD/CAM software and CNC machines. A qualified team of product designers having rich experience in die and mould design, has enhanced Company’s capabilities of offering customized products in HMC modules, assembled PCBs, Electronic Energy Meter and other Metering Solutions.
GENUS is continuously updating its product portfolio with new products and solutions. Recent developments are Digital Taximeter, Pre-Payment Meter, AMR enabled Meters and several Turnkey projects in related areas.
GENUS has been accredited with ISO-9001:2000, IECQ, EMC, ISI and C-DOT Certifications. The experience and exposure to international level of excellence has equipped GENUS to face and adapt to the challenges and opportunities emerging in the world today.
Product Assurance
The Quality Policy at GENUS
emphasizes on offering the best quality products and services confirming to
international quality standards, and is accomplished by making every individual
responsible for quality
In-House reliability tests are conducted on THERMAL SHOCK, HUMIDITY & BURN
-IN chambers to ensure satisfactory performance and quality over the entire
product
Recognitions & Certifications
Genus stands committed to exceeding the highest standards of quality stipulated by the leading authorities, both in India and abroad. The following recognitions and certifications (only partial list) bear testimony to the company’s uncompromising quality standards.
First among equals
• ISO 9001:2000 certification
• R&D lab recognized by the Ministry of Science & Technology, Government of India
• CDOT approval for Line Card Hybrid & Resistor Networks & Contract Manufacturing
• IECQ for quality of components
• ISI mark for Energy Meters
• ISI mark for Fare Meters
• CE approval for Meters
• EMI / EMC certifications
• ETDC certified Inverters
Infrastructure
R&D Facilities
At Genus, Design & Development is all about the perfect balance between constant research, the latest globally proven technologies and hand-picked professionals from diverse specialties. This winning combination of man and machine is evident in the company’s rapid rise over the global horizon.
Hardware,
software
The company’s strong R&D team is
armed with cutting-edge facilities, in its in-house R&D lab, which is recognized by the Ministry of Science and Technology, Government of India.
The company’s tool room rivals the world’s best, with advanced CAD / CAM
software, CNC machines and automatic test systems. Advanced design software,
the latest manufacturing equipments, Class
10, 000 and 1, 00, 000 Clean Room work areas, everything adds up to arm
Genus with the unique capability to match global quality, at a competitive
price.
Genus appoints Gauri
Pradhan as brand ambassador
MUMBAI: Genus Overseas, an ISO-9001 Limited company with a group turnover of more than $100 million, has signed on television actor Gauri Pradhan of Kyunki Saas Bhi Kabhi Bahu Thi fame as their brand ambassador. Pradhan will endorse the entire range of Genus Sure Sine Wave Super Inverters.
She will also feature in Genus’s extensive ad campaign, including an ad film directed by veteran film director Aziz Mirza. Genus has earmarked a mega budget Rs 60 million for the promotion, which includes spends on the print and electronic media and below the line activities. The campaign will kick start by mid March across the country.
Genus Sure Sine Wave Inverter is available in 600,800, 1400 VA and higher. The invertors are equipped with the futuristic ASIC technology making them totally safe for running all gadgets including coolers, washing machines, water pumps and refrigerators.
Commenting on Pradhan as their choice of
brand ambassador, Genus Overseas Electronics Limited chairman and managing
director I C Agarwal said, "She is a perfect brand endorser for Genus
Inverters as she embodies the spirit of excellence and stands for honesty and
high performance, much like the qualities of Genus Sure Sine Wave
Inverter."
Genus Overseas Electronics Limited has also changed their corporate identity for a more contemporary and innovative look, reflecting the services it provides and the standards it strives to maintain.
PERFORMANCE REVIEW AND OPERATIONS
During the year
under review, Company has been successful in achieving turnover of Rs.2297.2
Millions with a growth of 51% over the previous year's turnover at Rs. 1520.1
Millions. The net profit after tax for the financial year ended 31st March,
2006 achieved is Rs. 153.4 Millions, which is higher by 95% over Rs. 78.7
Millions reported during the previous financial year 2004-2005.
Genus, a part of the
Kailash Group, is one of the largest producers of multifunction electronic
energy meters. The company also manufactures inverters, taxi meters, hybrid
micro-circuits and resistor network and printed circuit boards at its
state-of-the art manufacturing facilities at Jaipur, Rajasthan and recently
started new unit at Haridwar. It also undertakes turnkey projects in the power
distribution sector scaling up its operations from meter to metering where it
provide complete solutions to customer. Projects encompass supply and erection
of equipments like meter, cable, transformer, pole, panel meter, audit meter,
etc., at site.
The company is
expanding its product range by introducing a series of new products such as AMR
based Meter, Transformer, Transmission Pole, Solar Inverter, Digital Signature
Receiver, UPS and Inverter accessories in near future.
EXPORTS
The export for the
year under review was at Rs.32.8 Millions as compared to Rs. 22.8 Millions in
the previous year. The Company is exporting its products to U.K. U.S.A. as well
as developing counties like Russia, Korea, Singapore, Bangladesh, etc. The
demand for Indian electronic products in the international market
is constantly
increasing due to extensive and satisfactory performance of products. Genus is
effectively surviving in the world-class competition and is also ready to face
emerging challenges in future. The company made heartening inroads into new
market like Iran, France, Jordan, Turkey, Brazil, etc.
CAPTIVE WiND POWER
PROJECTS
In pursuit of
raising dependence on renewable energy resources, Company has increased its
wind power generation capacity from 0.35 MW to 1.60 MW at Jaisalmer. As per the
arrangement with State Electricity Board, the Company gets power credit at
Jaipur plant to the extent of 90% of the power generated at wind farms at
Jaisalmer.
EXPANSION
In order to keep up
the growth story of the Company, the Company has set up a new manufacturing
unit at Haridwar, Uttranchal (a tax free zone) with state-of-the-art
manufacturing facility with an investment of Rs.250 million for manufacturing
of Inverter, Set Top Box, UPS, Electronic Energy Meters, etc. The
commercial
production of inverters and allied items has commenced from April, 2006. Capex
of Rs.97.6 Millions has been incurred upto 31 st March, 2006.
INDUSTRY STRUCTURE & DEVELOPMENT
The Company is
primarily engaged in design and production of Electronic Energy Meters (EEMs),
Inverters, Hybrid Microcircuits (HMCs), Taxi Meters, Trivector Meters, Resistor
Networks, etc. The Company also undertakes turnkey projects in the power
distribution sector, which include the detailed design of the system using
equipments such as meter, cable, transformer, panel meter, audit meter, pole,
etc. These projects involve complete installation, including shop testing,
providing engineering drawings, data, operation manual, packing and
transportation, receipt, storage, preservation and conservation of equipment at
the site, erection, testing and commissioning of all the equipment, reliability
tests and performance and guarantee, tests on completion of commissioning; and
furnishing of spares, etc.
The growth in demand
for power in developing economies is generally higher than that of their GDR In
India, the ratio of demand growth to GDP growth was 3.06 in the first Plan and
peaked at 5.11 during third plan and came down to 1.65 in the eighties. At
present, a ratio of around 1.5 is projected. Therefore, in order to support the
GDP growth of around 8% per annum, the rate of growth for power supply needs to
be over 10% annually. This is evident from the ever increasing demand for the
power in the country's vibrant economy leading to a widening gap between the
supply and demand. Government has announced many plans for power sector to meet
this challenge.
The Bharat Nirman
Yojana was announced by the UPA government, under which electricity is among
the top four priorities. The Prime Minister announced electrification of 125000
villages targeting 23 Millions new rural connections. The Prime Minister
restricted free power supplies, hence 25 Millions new rural connection over the
next 3 years represents a big market opportunity for Genus.
In February 2005,
National Electricity Policy (NEP), in compliance with section 3 of the
Electricity Act was passed. The policy is in line with the overall direction of
reforms. The policy, which is well crafted, covers:
o Power to all by 2012
o rural electrification
o Reducing T & D losses
o Better cost recovery and Targeting of subsidies
o Greater power sector participation
o Need for technology in all spheres of the sector.
o Protection of Consumer Interest
Honorable Prime Minister Dr. Manmohan Singh recently
launched a new scheme for creating rural electricity infrastructure and
completing household electrification named as "Rajiv Gandhi Grameen
Vidyutikaran Yojana Scheme of Rural Electricity Infrastructure and Household
Electrification". Since independence so far only about 44% rural
households could be given access to electricity and more than one lakh villages
are still to be electrified. The new programme involves providing access to
electricity for 78 Millions rural households in five years.
As per Central
Electricity Authority Regulations, 2004 on Installation and Operation of
Meters, all existing Electro- Mechanical meters, which fail to meet the
requirement of these regulations, shall be replaced in a time framed to be
decided by the Appropriate Regulatory Commission.
''Power management
is a significant component of economic growth. Power distribution losses and
in-efficient management at the State Electricity Boards (SEB's) have resulted
in huge economic losses for these utilities. Accelerated Power Development
& Reforms Programme (APDRP) was set up during 2002-03 for restoring the
commercial viability of the distribution Sector. The key dimensions of the
scheme relevant for demand of EEM's are:
- Emphasison
I00%meteringineverystepofdistribution
- Tamper proof
metering
- Availability of
funds
Schemes undertaken
under APDRP are for renovation and modernization of sub-stations, transmission
lines & distribution transformers, augmentation of feeders &
transformers, feeder and consumer meters, high voltage distribution system
(HVDS), consumer indexing, SCADA, Computerized billing etc.
Hence, being tamper
proof, accurate and efficient EEM's will be the future choice of energy meters
and not the outdated electromechanical meters, which has many limitations.
Domestic metering is expected to rise with the growth in housing sector, rural
electrification program and replacement of existing electromechanical meters
with EEM's will drive the demand for EEM's and Energy Management solution for
years to come. Traditional meters will be replaced with new tamper proof
electronic energy meters by most of the private utilities.
ELECTRONIC ENERGY METER AND TURNKEY PROJECTS IN THE
POWER DISTRIBUTION SECTOR
Power is an
important infrastructure area for economic growth. The economic development
would greatly depend upon a commercially viable power sector that is able to
attract fresh investments. However, the financial health of State Electricity
Boards (SEB's) becomes a matter of serious concern considering that their
losses have reached an alarming level.
The commercial
losses are mainly due to low metering efficiency, theft and pilferages.
Improving metering efficiency, proper energy accounting & auditing and
improved billing & collection efficiency may eliminate these losses.
Traditionally, Indian Utilities i.e. State Electricity Boards (SEB's)
have been using Electromechanical Meters to measure the electricity provided to
the consumers both domestic as well as Industrial. Further, in India, vast
users have been billed on periodic basis without metering the actual usage of
the electricity. The results are obvious; the SEB's are sick and struggling to
survive.
The distribution loss is one of the major issue Indian Utilities have
been facing. The conventional Electromechanical Meters (Ferraris) are not the
obvious choice due to its inherent limitations. The simple electromagnetic
meter suffers from several problems and that is why EEMs are now replacing
them.
Requirement of new meters
During 1994 to 2005 the production of electricity meters have gone up
from 4.2mn to around 7mn pieces p.a. giving a CAGR of 6% p.a. The demand will
continue to grow at this rate due to:
• Growth in Housing: The Tenth Five Year
Plan estimated a shortage of 22.4 million dwelling units. Thus, in coming 15 -
20 years, 80 - 90 million housing units will have to be constructed. This will
generate a demand for new meters to the tune of 5-6 million pieces.
• Rural Electrification: Rural Electricity
Supply Technology Mission was set up in September 2002 with an objective of
taking electricity to every household in India by 2012. Government is targeting
10 Millions household to be provided with electricity in this time span. This
will drive the demand over and above the growth in urban areas.
• 100% metering: Through APDRR the
Government is providing every support to SEB's to undertake 100% metering
exercise so that no unit of electricity is utilized without being accounted.
Considering the T&D losses of around 40% of SEB's, there is huge potential
of new
meters being installed.
INVERTER
As power supply situation in most part of the country is unsatisfactory,
leading often to blackouts. Market for inverters is thus very strong in both
urban as well as rural areas.
Genus inverters are manufactured with state-of-the-art technology with
many advanced features. Genus inverters are based on DSP Sine Wave Technology,
which supplies clean power same as Company gets from the mains supply. They
have advanced features like Auto Sense Intelligent Control, which increases
life and efficiency of all kinds of batteries as it regulates the current flow
as per the condition and requirement of the battery. These inverters safely run
all kinds of appliances including air conditioners, water pumps,
refrigerators, coolers, washing machines etc. apart from normal fans,
lights and television, safely and without any humming noise. They consume less
power in comparison to any other inverter and also enhances the battery life.
Genus' Inverter currently comes in the range of 600 VA, 800 VA, 1400 VA, 2.5
KVA, 5 KVA & 10 KVA. The introduction of the Genus Sure Sine Wave Super
Inverter has received tremendous response from the market place resulting in a
strong Distribution/Dealer network for Inverter sales. The "Genus
Inverter" brand is now available in all parts of the country. The current
size of the market for Inverters is 1.5 Million units a year and the market is
growing at a CAGR of 12-14%.
SOLAR INVERTER
Genus has already developed grid interactive solar inverters. Solar
inverters being renewable sources of energy is of great importance to company’s
future growth, as the World in future will increasingly depend on solar energy.
Genus has taken lead in this direction.
UPS
Company’s development of UPS of various KVA capacities is now complete.
Company has plans to launch these products in near future. UPS will add higher
value to their product range. As more and more mission critical applications
(viz. banks, call ' centres, large offices, companies, complexes, aviation,
etc.),
where power off condition of even one millisecond is intolerable, use of
UPS is almost mandatory. This provides tremendous growth possibilities for us.
SEGMENT WISE AND PRODUCT WISE PERFORMANCE
The Company is primarily engaged in power segment business of Electronic
Energy Metering Projects, Taxi Meters, Hybrid Microcircuits, Resistor Networks
and other electronic products. During the year under review, Company has
achieved an excellent performance, making another landmark as turnover of the
Company touches Rs.2290 Millions. The turnover of the Company has increased by
51% over previous year. Net profit hit an all time high at Rs. 153.4 Millions,
up by 95%.
During the year, the Company put emphasis on it's turnkey project
business, which contributed almost 34% to the performance. About 38% of total
turnover of the Company was from Electronic Energy Meters, whereas Taxi Meters,
Hybrid Micro Circuits, Printed Circuit Boards, Resistor Networks, Inverters,
accessories and Job works (PCB assembly) contributed 28%, collectively.
During the year under review, the Company has also done well on export
front as compared to previous year and achieved a turnover of Rs.32.8 Millions
as compared to Rs. 22.8 Millions in the previous year.
|
SECURED LOANS |
31.03.2006 |
31.03.2005 |
|
Term Loan |
|
|
|
From Bank and Financial Institutions |
134.424 |
84.158 |
|
Working Capital Loans |
|
|
|
From banks |
517.706 |
263.266 |
|
Loans against Pledge of fixed deposits |
33.910 |
17.640 |
|
Loans against hypothecation of vehicles |
15.513 |
14.546 |
|
|
701.553 |
379.61 |
Notes
I. Term loan
referred above, to the extent of Rs. 0.858 Millions (Previous year Rs. 2.469
Millions) from Bank of Baroda is secured by equitable mortgage on all the
immovable properties of the Jaipur unit of
i the company
(excluding the assets financed by industrial Development Bank of India and Bank
of Baroda itself on exclusive charge basis ) by way of deposit of title deeds
and hypothecation
of moveable plant
and machinery and other fixed assets; Rs. 19.753 Millions (Previous year Rs.
30.214 Millions) from Industrial Development Bank of India Limited is secured
by hypothecation of equipments exclusively financed by IDBI, mortgage of the
property of K.C. Electrometers and negative lien on the FD of Rs. 1 Millions
and Rs. 48.210 Millions ( Previous year Rs. 51.475 Millions) from Bank
of Baroda is secured by hypothecation of equipments exclusively financed by
BOB. The Term loans are further secured by personal guarantees of some of the
directors and others.
2 Term loan of Rs.
65.602 Millions (Previous year Rs. Nil) from State Bank of Indore and IDBI Bank
Limited is secured by equitable mortgage on all the immovable properties of the
Haridwar unit of the company; hypothecation of moveable plant and machinery and
other fixed assets of the unit and personal guarantees of some of the directors
of the company.
3 Working capital
loans under consortium arrangement from Bank of Baroda, State Bank of India and
Punjab National Bank are secured by way of hypothecation of stocks and book
debts of the company both present and future, charge on the entire unencumbered
fixed assets of the company, collateral security by way of equitable mortgage
of 4 immovable properties of
|
UNSECURED LOANS |
31.03.2006 |
31.03.2005 |
|
Inter
corporate Deposits |
18.500 |
52.310 |
|
From
Others |
225.546 |
11.586 |
|
|
244.046 |
63.896 |
Fixed Assets
- Lease Hold Land (Including
Site Development)
- Land at Gandhi Dham
- Building
- Plant and Machinery
- Wind power Project
- Furniture and Fixtures
- Vehicle (Auto, Bus)
- Vehicle (Car, Scooter)
- Office Equipment
- Computer
- Tube Well
- Dies and Modules
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.16 |
|
UK
Pound |
1 |
Rs.86.00 |
|
Euro |
1 |
Rs.57.56 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
|