MIRA
INFORM REPORT
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Report Date : |
14.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
MCNALLY
BHARAT ENGINEERING COMPANY LIMITED |
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Formerly Name: |
PRABHUDAYAL
RAMKRISHNA PRIVATE LIMITED |
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Registered Office : |
4
Mangoe Lane, 5 & 7th Floor, Kolkata – 700001, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.07.1961 |
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Com. Reg. No.: |
21-25121 |
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CIN No.: [Company
Identification No.] |
U10102WB1961PTC025121 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM08976C/RCHM01882G |
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PAN No.: [Permanent
Account No.] |
AABCM9443R |
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Legal Form : |
A public limited liability company. The company's shares are listed on the
Stock Exchanges |
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Line of Business : |
Manufacturing of Industrial Machinery and
Equipment and also in Consultancy and Industrial Turnkey Projects. |
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 3000000 |
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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 company having satisfactory track. Trade relations
are fair. General financial position is satisfactory. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
4
Mangoe Lane, 5 & 7th Floor, Kolkata – 700001, West Bengal |
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Tel. No.: |
91-33-5550 0725-39, 2213 8905, 2240 0340/5016 |
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Fax No.: |
91-33-22480340 |
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E-Mail : |
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Website : |
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Corporate
Office : |
44, Park Street, Kolkata – 700 016, West
Bengal |
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Tel.
No.: |
91-33-22478611 / 22403479 / 0221 / 3338 /
22800810 / 0811 |
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Fax
No.: |
91-33-240 2086 / 2802707 |
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E-Mail
: |
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Factory
1 : |
Production
Division: P. O. Kumardhubi, Dist. Dhanbad, Jharkhand, Bihar – 828203, India Tel. No. 91-6540-223010
/ 11/ 13 / 15 / 19 / 47 / 48 91-6540-298321
/ 263265 Fax No. 91-6540-223024 Cable MEDOLARK
KUMARDHUBI E Mail mbe@dte.vsnl.net.in Roads Division
44, Park Street, Kolkata – 700 016, West Bengal Tel. No. : 91-33-22478611 / 22403479 / 0221 / 3338
/ 22800810 / 0811 Fax No. : 91-33-22402086 / 22802707 E-Mail : corporate@mcnallybharat.com Website http://www.mbecal.com Cable MEDOLARK,
KOLKATA Southern Division :
Hoodi-Whitefield
Road, P. O. Whitefield, Bangalore – 560 066, Karnataka Tel. No.
91-80-8452596 To 99 Fax No. 91-80-8452764 Cable MINIPRO WHITEFIELD E Mail mbl@mcnallyblr.com |
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Regional offices |
Located at : Mumbai and New Delhi |
DIRECTORS
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Name : |
Mr. D. Khaitan |
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Designation : |
Chairman |
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Name : |
Mr. S. P. Singhi |
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Designation : |
Vice Chairman |
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Name : |
Mr. V. K. Verma |
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Designation : |
Director
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Name : |
Mr. A. Sankara Narayanan |
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Designation : |
Director
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Name : |
Mr. S. K. Pasari |
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Designation : |
Director
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Name : |
Mr. U. Parekh |
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Designation : |
Director
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Name : |
Mr. C. K. Pasari |
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Designation : |
Director
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Name : |
Mr. U. S. Chaturvedi |
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Designation : |
Director
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Name : |
Mr. S. Singh |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name
: |
Mr. D. Chatterjee |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
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Promoter’s Holding |
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Promoters |
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Indian
Promoters |
9026302 |
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Non
Promoter’s Holding |
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Institutional
Investors |
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Mutual
Funds and UTI |
1672128 |
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Banks,
Financial Institutions, Insurance Companies |
2226414 |
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Fils |
1386027 |
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Others
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Private
Corporate Bodies |
2354435 |
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Indian
Public |
4640934 |
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NRIs/
OCBs |
5155558 |
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Total |
26461798 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Industrial Machinery and
Equipment and also in Consultancy and Industrial Turnkey Projects. |
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Products : |
v Material
Handling & Conveying Plant / Machinery v Crushing
& Screening Plant / Machinery / Spares v
Ball Mills - Plant / Machinery / Spares |
GENERAL
INFORMATION
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No. of Employees : |
200 |
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Bankers : |
v
Bank of India v
State Bank of
India v
Canara Bank v
United Bank of
India v
UCO Bank v
Oriental Bank
of Commerce v
Indian Overseas
Bank v
Union Bank of
India v
ICICI Bank
Limited v
ING Vysya Bank
Limited v
UTI Bank
Limited v Karur Vysya Bank |
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Facilities : |
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Banking Relations : |
-- |
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Auditors : |
Khaitan &
Company Chartered Accountant |
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Associates/Subsidiaries : |
Ø Williamson
Magor Group Companies Ø G.
P. Birla Group Companies Ø Eriez
MBI India Limited, Bangalore, Karnataka SUBSIDIARIES
McNally
Bangalore Industries Limited Hoodi Whitefield Road, P. O. Whitefield,
Bangalore – 560 056, Karnataka, India Tel. No. 91-80-845
2596 / 2597 / 2598 / 2599 Fax No. 91-80-845
2764 E-Mail mbil.blr@smy.sprintrpg.ems.vsnl.net.in,
mbl@mcnallyblr.com Telegram : MINPRO WHITEFIELD Ø Erotev
– Waagner Biro (EWEB) Limited, Budapest Ø
EWB-MBE Waagner Biro Limited |
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MEMBERSHIPS |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3,00,00,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 300.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2,64,61,798 |
Equity
Shares |
Rs. 10/- Each |
Rs. 264.618 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
264.618 |
197.832 |
197.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
523.952 |
163.238 |
165.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
788.570 |
361.070 |
362.900 |
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LOAN FUNDS |
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1] Secured Loans |
795.415 |
604.480 |
366.400 |
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2] Unsecured Loans |
0.000 |
9.900 |
50.800 |
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TOTAL BORROWING |
795.415 |
614.380 |
417.200 |
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DEFERRED TAX LIABILITIES |
11.016 |
11.571 |
0.000 |
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TOTAL |
1595.001 |
987.021 |
780.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
527.405 |
425.695 |
405.300 |
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Capital work-in-progress |
1.717 |
8.137 |
13.200 |
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INVESTMENT |
32.094 |
12.219 |
11.600 |
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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 |
118.023
|
135.037 |
113.500 |
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Sundry Debtors |
1895.741
|
1319.410 |
955.400 |
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Cash & Bank Balances |
153.916
|
178.815 |
89.400 |
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Other Current Assets |
0.000
|
0.019 |
0.000 |
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Loans & Advances |
574.156
|
397.964 |
413.900 |
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Total Current Assets |
2741.836
|
2031.245 |
1572.200 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1683.576
|
1454.206 |
1193.300 |
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Provisions |
24.475
|
36.069 |
28.900 |
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Total Current Liabilities |
1708.051
|
1490.275 |
1222.200 |
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Net Current Assets |
1033.785
|
540.970 |
350.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1595.001 |
987.021 |
780.100 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
3352.122 |
2849.648 |
1916.200 |
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Profit/(Loss)
Before Tax |
65.994 |
34.524 |
15.900 |
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Provision
for Taxation |
13.464 |
8.271 |
0.900 |
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Profit/(Loss)
After Tax |
52.530 |
26.253 |
15.000 |
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Export
Value |
49.969 |
6.190 |
NA |
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Import
Value |
119.206 |
91.295 |
NA |
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Total
Expenditure |
3286.128 |
2815.124 |
1912.700 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 (1ST Quarter) |
30.09.2006 (2nd Quarter) |
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Sales Turnover |
|
1079.800 |
1129.800 |
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Other Income |
|
0.800 |
1.400 |
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Total Income |
|
1080.600 |
1131.200 |
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Total Expenditure |
|
1017.000 |
1063.900 |
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Operating Profit |
|
63.600 |
67.300 |
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Interest |
|
18.300 |
18.900 |
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Gross Profit |
|
45.300 |
48.400 |
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Depreciation |
|
5.200 |
5.700 |
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Tax |
|
5.200 |
5.700 |
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Reported PAT |
|
34.900 |
37.000 |
200606 Quarter 1
EPS is Basic & DIluted. 1. The above un audited results were taken on record at the Board of Directors of the Company at its meeting held on 27.07.2006. 2. The quarterly results for the quarter ended 30.06.2006 are subject to limited review by Statutory Auditors of the Company. 3. Previous year figures have been regrouped/ rearranged wherever necessary. 4. Adjustments for Deferred Tax, if any shall be made at the year end. 5. The company did not have any investor complaints pending as on 30.06.2006. There were four investors complaints received and disposed off during the quarter ended 30.06.2006. 6. The company has orders in hand exceeding Rs.8000.000 Millions as on 30.06.2006 which it plans to execute in the next 18 months time (approx)
200609 Quarter 2
The above Un audited results were taken on record by the Board of Mod= of the Wmpxy at its meeting held on 31.10. 2006. 2. The quarterly results for the quarter ended 30.09.2006 are subject to limited review by the Statutory Auditors of the Company. 3. The company has orders in hand exceeding Rs. 7000.000 Millions as on 30.09.2006 which it plans to execute in the next 18 months time (approx.) 4. Previous year's figures have been regrouped I rearranged wherever necessary. 5. Adjustments for Deferred tax, if and shall be made at the year end. 6. As regards investments in Jayamkondam Lignite Power Corporation (JLPC), JLPC has converted apart of the loan into its share capital. As per the latest information, Neyvelt Lignite Corporation has stepped into the projects as new partner. The Company is reasonably confident of recovering value of its advances and investment in JLPC. 7. The ACCOUNTING STANDARD (AS) - 15 (Revised) on 'Employee Benefits' Issued by the Institute of Chartered Accountants of India has become applicable , during the current financial year and the company is In the process of ascertaining impact, if any on certain accrued employee costs up to period ended 30.09.2006 in terms of the said AS. This will be accounted for on completion of aforesaid process. The company during the quarter has provided Rs.3.300 Millions towards accrued gratuity liability as assessed by Life Insurance Corporation of India. 8. Company's FCCB Issue of US$ 10 million has been fully subscribed and allotment have been completed. Bonds are listed in Luxembourg Stock Exchange. 9. The shares of the Company have been listed on National Stock Exchange w.e.f.0611012006 under the symbol 'MBECL'. 10. The Company did not have any investor complaints pending as on 30.09.2006. There were seven investors' complaints received and disposed off during the quarter ended 30.09.2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.36 |
1.51 |
1.19 |
|
Long Term Debt Equity Ratio |
0.55 |
0.42 |
0.14 |
|
Current Ratio |
1.18 |
1.04 |
0.99 |
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TURNOVER RATIOS |
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|
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Fixed Assets |
4.77 |
4.60 |
3.52 |
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Inventory |
26.77 |
23.65 |
13.42 |
|
Debtors |
2.11 |
2.58 |
2.58 |
|
Interest Cover Ratio |
1.46 |
1.30 |
1.15 |
|
Operating Profit Margin (%) |
6.97 |
5.92 |
5.81 |
|
Profit Before Interest and Tax Margin (%) |
6.16 |
5.14 |
5.19 |
|
Cash Profit Margin (%) |
2.36 |
1.67 |
1.25 |
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Adjusted Net Profit Margin (%) |
1.55 |
0.89 |
0.64 |
|
Return on Capital Employed (%) |
17.04 |
17.63 |
14.37 |
|
Return on Net Worth (%) |
10.10 |
7.69 |
3.87 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.158.50/- |
|
Low |
Rs.145.05/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORy
Subject was incorporated in 1961 as a joint venture
between Bird and Company Limited and McNally Pittsburgh Inc., USA. Today, the company is stewarded by two of
India's leading business houses – Williamson Magor Group and G. P. Birla.
It was established with the objective of playing a
leading role in the areas of bulk material handling, coal preparation and
mineral beneficiation.
In the year 1968, the company designed, engineered,
built and commissioned the country's first coal handling plant at Talcher,
Orissa. In the year 1970, it
constructed first mineral beneficiation plant in India at Kadipani, Gujarat and
first carbon paste plant built indigenously for Indal.
The name of the company was changed to present in
the year 1972. In the year 1975, it
commenced southern division operations at Bangalore. In the year 1989, G. P. Birla acquired 24% stake in the
company. In the year 2000, it acquired
90% control over Eroterv-Waagner Biro, Hungary, a world leader in Ash Handling
Technology.
The company's another technical collaboration
agreement followed in 1966 with Kennedy Van Saun Corporation, U.S.A., which
gave access to their wealth of experience in the field of minerals processing.
Today, the company has the unique distinction of being stewarded by two of
India's biggest business houses: the blue-chip Williamson Magor Group and the
industry major, G. P. Birla Group.
Over the years, the company has played a pioneering
role in the emerging areas of bulk material handling coal and mineral
beneficiation, pyro processing and related auxiliaries. It has executed more
plant projects than any other company in India - nearly 150 - in various core
industries on a turnkey basis from concept to commissioning, including the
design, manufacture and supply of major equipments, in- house.
The company presently comprises of two independent
operations divisions - Projects Division, Kolkata and Products Division,
Kurmardhubi - and a wholly owned subsidiary - McNally Bangalore Industries
Limited (the company's commitment to quality is best reflected in the ISO 9001
accreditation that both the Divisions and the subsidiary have received.
In 1999-2000, the company has acquired 90% of the
equity in Eroterv Waagner Biro, the company's present collaborators, which
enables the company to bid internationally. Also during the year, the company
was successful in getting first Coal Handling Plant order and Ash Handling
using the technology of Eroterv Waagner Biro of Hungary at its plant at
Neyveli. The company finalised the collaboration agreement with Konecranes of
Finland for manufacturers of Port Cranes. It also adopted technology for design
and manufacture of Viabrating Screen in line with Siebtechnik, Germany.
Fixed Assets:
The company’s fixed assets important value include
land (freehold and leasehold), buildings, plant & machinery, vehicles,
furniture & fixtures, refrigerators & air conditioners, office
equipment, telephone plant and cooking appliances.
FINANCIAL RESULTS:
Year 2005-06 witnessed an average annual sales growth of 15%, with the
Company's turnover closing at Rs.3300.000 Millions. There was a significant
growth in the Profit after Tax of 100%. The Company has during the year
gathered the momentum on the growth track set in the previous years. The
forward profit projections of the company reflect this improved status and the
Board expects further increase in the turnover and operating profits of the
Company for the year 2006-2007.
In view of the improved performance, the Board has declared a Dividend of 5% on
the equity shares of the company, subject to the approval of the Members.
OPERATIONAL REVIEW & PROSPECTS:
The Company is involved in EPC/LSTK (Lumpsum Turnkey Contract) business in the
infrastructure and other core industries like Steel, Minerals and Mining. The infrastructure
sector consisting of Power, Ports, Highways, Water Management and Steel and
Mineral Segment of the business are poised for exponential growth which is
expected to continue for at least next 7 to 10 years. Government of India has
already announced construction of Mega Power Plants ranging up to 4000 MW both
in Public Sector and Private Sectors, expansion of Steel Plants by Ministry of
Steel for all the existing Steel Plants, setting up of integrated Steel Plants
by private entrepreneurs like POSCO, Mittal, Jindal and ESSAR. Besides these
industries, non-ferrous metal segments like Aluminium, Zinc & Copper are
already under plan for expansion by Public as well as Private Enterprises.
Major Ports, Highways and Water Management Plants are in process.
The Company has got experience & expertise in most of the above industries
and therefore the future business of the Company is expected to be highly
encouraging.
TURNKEY INFRASTRUCTURE:
All Strategic Business Units under Projects Division are in the growth path and
completing the projects ahead of schedule and have bright future as detailed
underneath.
Material Handling:
The Material Handling SBU has bagged orders for a Coal Handling Plant for DVC
at Chandrapura and a Green Anode Plant for Vedanta Alumina at Jharsuguda and
NLC, Barsingsar totaling Rs. 1910 million. Work on all the projects are in
progress as per schedule.
Mineral Processing:
The Mineral Processing SBU has bagged three orders - one for Alumina
Evaporation Package from NALCO at Damonjodi, a Coal Washery from CESC at
Sarsathali and an upgradation & modification of Copper Ore Beneficiation
plant in Oman totaling Rs. 1211 Million. The works on all these three projects
are progressing as per schedule.
Port Handling:
During the year a 300 ton Goliath Crane for Cochin Shipyard Limited, 2 nos.
RMQC for Haldia Port and 2 nos. Grab Unloaders for MPT-Goa have been
commissioned successfully. The work on the balance 2 nos. Grab Unloaders for
MPT-Goa are running as per schedule. This SBU has bagged order for Stacker
Reclaimer from Paradip Port Trust.
Ash Handling:
The Ash Handling SBU has bagged orders for ash handling plants from MSEB at New
Parli, from NLC for their (TPS-II) and from JINDAL for their Power Plant totaling
Rs. 821 Million.
Steel Plants:
The Company is putting all out efforts to make inroads in the Steel Plant EPC
projects in the packages like Sintering Plants, Coke Oven, Continuous Casting
Machines etc. The Company is in the process of tying up with world renowned
technology suppliers in these fields. The Company is gearing up itself for
forthcoming tenders for expansion of Steel Plants of SAIL, RINL & other
private sector steel plants and is hopeful of bagging sizable orders in near
future.
MANUFACTURING:
The performance of their Kumardhubi Unit as well as Bangalore is satisfactory
and they have achieved the targeted results. The Company has undertaken
expansions programme of both the manufacturing units.
EWB -
KORNYEZETVEDELMI KFT EWB - MBE INTERNATIONALKORNYEZETYEDELMI
The performance of the subsidiaries during the year is
satisfactory. The Unit has a healthy order book position. The Company continues
to receive valuable technical smart in Dry Ash Handling Technology Which is
used in power projects.
PROJECT FUNDING:
The Company has finalized various growth opportunities in line with its
objective of becoming globally competitive. The Company intends to finance its
modernization, development and capital expenditure.
During the year under review the company successfully issued Foreign Currency
Convertible Bonds (FCCBs). The total amount issued was for US$7 million The
Bonds were listed in the Luxembourg Stock Exchange. The Bonds so issued were
subsequently converted into 6678602 equity shares of Rs.10 each fully paid up
at a premium of Rs.36.05. The Company has also received listing approval for
the new shares from BSE, Mumbai. Proceeds on this account were utilized mainly
to pay debts and other development activities.
In order to meet the growing working capital requirements and expansion
programmes, the Shareholders of the Company at their extraordinary general
meeting geld on 03.06.2006 have approved the issuance of fresh FCCB’s to the
tune of US$10 million and full convertible warrants to the Promoters, Key
Management Persons and other associates of the Company. The Company has since
allotted 1453000 fully convertible warrants to the said promoters, Key
Management Persons and other associates of the Company. Effective steps are
being taken to issue the FCCBs.
INDUSTRIAL RELATION:
Industrial relations during the period under review have been cordial and the
Directors record their appreciation to the workers, staff and officers at all
levels for their sincerity and hard work throughout the year.
MANAGEMENT DISCUSSION & ANALYSIS
REPORT
INDUSTRY STRUCTURE AND DEVELOPMENT:
The Indian economy is projected to grow by 8.1% during 2005-06 as compared to
7.5% during the previous year. The Industrial sector remained buoyant with
output expected to grow at 9% mainly due to encouraging performance from
manufacturing and construction sectors as compared to 8.6% in the previous
year. The area of concern is the continued rise in the international price of
crude oil.
Standard & Poor's (S & P) and Moodys have raised India's credit outlook
from stable to positive on witnessing accelerated economic growth and other
factors.
During the year the liberalized external commercial borrowing norms in India
have enabled Indian companies to attract International capital for funding
future growth projects.
OPPORTUNITIES & THREATS:
Obviously this growth in infrastructure provides the Company with several
opportunities not only for business but for business at more profitable levels
even though competition remains substantial. The principal threat remains from
the public sector companies, which continue to enjoy purchase preference
despite all protestations to the contrary. The other major threat is the
inordinate rise in import costs, which adversely affect contract with fixed
price.
SEGMENTWISE OR PRODUCT WISE PERFORMANCE:
The Company is engaged in turnkey projects in infrastructure and related
manufacturing activities and therefore the question of segment-wise performance
does not arise.
OUTLOOK:
The outlook for the year 2006-07 is certainly stronger than that of the last
three years The Company has taken some steps in mobilising fund and non-fund
facilities to finance the growth in business that it is confident of achieving.
As per Website Details
Overview
Subject
is one of the leading Engineering Companies in India engaged in providing
Turnkey solutions in the areas of Power, Steel, Alumina, Material Handling,
Mineral Beneficiation, Coal washing, Ash handling and disposal, Port Cranes,
Civic and Industrial water supply etc. Over 250 plants have been constructed on
turnkey basis by MBE till date.
The
company, headquartered at Kolkota, is owned jointly by the Williamson Magor
group and the G. P. Birla group and was a pioneer in India in the field of coal
washing, Mineral Beneficiation and Material Handling with several first to its
name.
The
turnkey construction activity of the company is managed by its projects
division also based at Kolkata through separate SBU’s that assume
responsibility for each activity from concept to commissioning.
Subject
also manufactures a range of equipment largely employed in the above
activities, which are undertaken at two factories under the products division
of the company. One factory is based at Kumardhubi, 200 kms north of Kolkota
where large equipments are manufactured and the other factory is located at
Bangalore where process equipments are manufactured.
Subject
has technical collaborations with some of the worlds leading firms for each of
their activities. Some of their associates include Outokumpu Technologies-
Finland, Soleus- France, Poltegor- Poland, TPE- Russia, Aubema- Germany, Sieb
Technik- Germany, Eriez- USA, Krebs Engineers- USA etc.
Subject
also has two subsidiary companies – EWB Kornyezetvedelmi Kft., Hungary, a fully
owned subsidiary which is a world leader in ash handling systems and Eriez-MBE India Limited. (EMIL) in Bangalore, a joint
venture with Eriez Magnetics, USA the world Authority in Magnetic, Vibratory
and Metal Detection applications.
The
Projects divisions at Kolkata as well as the Products division are both ISO
9000 certified.
Historical
Background
Subject
commenced business as McNally Bird Engineering Company Limited. in a serene
township at Kumardhubi (Near Dhanbad) as the Indian arm of McNally Pittsburg,
USA one of the then leading companies in the world engaged in the construction
of coal washeries and Mineral Beneficiation plants with the erstwhile Bird
& Company, a British Managing Agency acting as secretary and managers. The
company started with expatriate Americans taking care of major Engineering,
Design and Manufacturing functions.
Subject
was a pioneer in the country in its initial areas of business, viz Coal
preparation, Mineral Benficiation and Bulk Material Handling and there are
several firsts attributed to MBE. Some of the major milestones in the history
of subject are given below:
Some benchmarks
1961- Company was established as a joint venture
between McNally Pittsburg, USA and Bird & Company
1968 – Designed and built the longest Cross
Country Conveying System in India for 800 TPH Coal Handling Plant of Thermal
Power station at Talcher, Orissa.
1970 - First indigenously designed Mineral
Beneficiation Plant in India for beneficiation of fluorspar was built for Gujarat Mineral Development
Corporation Limited. at Kadipani, Gujarat.
1970 - First Carbon Paste Plant built
indigenously, for Indian Aluminium.
1972 – Name changed to McNally Bharat
Engineering Company Limited.
1979 – Built the first indigenously designed 700
TPH Coal Washery for Bharat Coking Coal Limited. at Sudamdih, Jharkhand.
1980 - Company taken over by the Williamson
Magor Group.
1981 - Designed and built the first indigenous
5500 tph High Speed Rapid Loading System with Silo at Jayant Coal Handling
Plant, U.P.
1989 - G. P. Birla Group acquires 24% stake in
the Company.
1995 to 1998 – Projects and Products Divisions awarded
ISO 9001 certification by RWTUV, Germany.
1998 – Entered into Open cast mining sector and
secured an order for 20,000 tph shiftable conveying system followed by orders
for conveyors and Bucket wheel excavator, Spreader etc from Neyveli Lignite
Corporation, Tamil Nadu.
1999 - Joint Venture formed with Eriez
Magnetics, USA, world’s leading manufacturers of magnetic, vibratory and metal
detection equipment for manufacture of their products in India.
2000 – Received order for first Dense phase
pneumatic conveying system for ash handling in India from Neyveli Lignite
Corporation, Tamil Nadu.
2001 - Obtained their first major order for
Water Management in a joint venture project for combined water supply to 674
habitations in Tiruchirapally District, Tamil Nadu.
2002 - The first Indian Company to manufacture
and commission a 700L capacity Bucket Wheel Excavator.
2002 – Designed, manufactured and successfully
commissioned the world’s largest Apron Conveyors for aluminium industry at
Angul for Nalco.
2002 – Entered into a licensing agreement with
Kone Cranes VLC Corporation for technology transfer for design, engineering,
manufacture, erection & commissioning of a range of Port Handling
Equipment.
2002 – Acquired 100% control over
Eroterv-Waagner-Biro, Hungary, now known as EWB Kornyezetvedelmi Kft., world
leader in Pneumatic conveying Technology.
2004 – Designed, built and commissioned India’s
largest capacity Level luffing cranes at Kandla Port.
2005 - Built and commissioned in global record
time of 14 months a complete lead-zinc beneficiation plant for M/s Hindustan
Zinc– Agucha mines.
2005 – Built and commissioned again in global
record time of 19 months a Green Anode plant for Bharat Aluminium Company at
Korba.
2005 – Built and commissioned India’s largest
capacity Goliath Crane (300 MT) for Cochin Shipyard Limited.
2005 – First indigenously designed, built and
commissioned Container Handling Crane in India at Haldia Dock Complex.
Subsidiary
Companies
MBE has two subsidiary companies:
EWB Kornyezetvedelmi Kft. Hungary: a 100% subsidiary of MBE. EWB
Kft. is one of the leading ash handling solution providers in the world.
Eriez-MBE India Limited. - Bangalore : a 60:40 joint venture company
between Eriez Magnetics, USA and MBE. Eriez Magnetics based in Erie,
Pennsylvania is the World Authority in Magnetic, Vibratory and Metal Detection
applications.
EWB Kornyezetvedelmi Kft. – Hungary
EWB Kft.
is one of the leading Pneumatic conveying and ash handling solution providers
in the world and has over 45 years of experience in Bottom ash, coarse ash and
Fly ash handling technologies.
EWB Kft.
originated from Eroterv Power Plant Engineers, a company formed by the
Hungarian government to set up power plants on turnkey basis in Hungary and
elsewhere in Europe. The Ash Handling Division of Eroterv was formed in 1955.
In 1990, Wagner Biro, Austria one of the leading companies in Europe acquired
50% stake in the ash handling division and a new entity Eroterv Wagner-Biro
Limited. was created. By 2000, Wagner-Biro increased its stake to 90%. Subsequently,
following a corporate decision to hive off the power plant manufacturing
business, Wagner -Biro sought to divest its stake in EWB.
Subject
had a collaboration agreement with EWB since 1997 for setting up ash handling
systems in India. When the sale of EWB came up, MBE acquired the shares of EWB
from Wagner Biro and thereafter the balance 10% from the government and today
EWB Kornyezetvedelmi Kft. is a 100% subsidiary of MBE.
Over 75
plants of various types have been executed by EWB Kft. till date employing
either the hydraulic wet system or pneumatic dry system. EWB has built plants
in Germany, Hungary, Austria, Czech Republic, Yugoslavia, Romania, Turkey,
Greece, Indonesia etc.
EWB is a
pioneer in the field of Dense Phase Pneumatic conveying systems and has built
40 such plants all over the world.
EWB
works closely with the Budapest Technical University on technology development
and testing. A 30 tph pilot plant is also installed at the University by EWB
Kft. to undertake tests on difficult material prior to designing the handling
systems.
Eriez - MBE India Limited.
Eriez-MBE
India Limited. (EMIL) is a 60:40 joint venture company between Eriez Magnetics,
USA and subject.
Eriez
Magnetics based in Erie, Pennsylvania is the World Authority in Magnetic,
Vibratory and Metal Detection applications. Eriez was started in 1941 by Orange
Fowler Merwin, a salesperson for grain milling equipment, as a solution to his
customers who often complained about damage to their Milling equipment from
Tramp iron. Today Eriez is a USD 100 million company with plants in USA,
Mexico, Australia, Brazil, China, Europe, Japan, Mexico and India and
manufactures a range of products that may be largely categorized as :
v
Separation
Products
v
Vibration
and Screening
v
Magnamation
v
Metal
Detection
v
Minerals
and Materials Processing
Applications
for Eriez products can be found in power, cement, material handling, Mineral
Processing, aggregate, coal as well as other sectors as food, ceramics, sugar,
flour milling, plastics, glass, pharmaceuticals, etc.
Subject
were selling agents for Eriez for close to 15 years. As the economy opened and
opportunities grew, it was felt a plant that could provide Eriez' products at
Indian prices would help immensely in penetrating the market to a greater
extent. The agency blossomed into a joint venture and EMIL was formed in 1999.
It is engaged in the manufacture of almost the entire range of Eriez products
in India while the Bangalore office of MBE takes care of the marketing of EMIL
manufactured products.
Products
Subject’s
products division manufactures a variety of products catering to a range of
applications at two plants. One plant is located at Kumardhubi, a quiet
township 200 kms north of Kolkota where large and heavy equipment are
manufactured and the other at Bangalore from where process equipment are
handled.
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.44.09 |
|
UK
Pound |
1 |
Rs.86.59 |
|
Euro |
1 |
Rs.57.92 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
55 |
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 |
|