MIRA INFORM REPORT
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Report
Date : |
11th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
KIRLOSKAR
PNEUMATIC COMPANY LIMITED |
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Registered
Office : |
Plot No. 1, Hadapsar Industrial Estate, Pune – 411 013,
Maharashtra, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
08.11.1974 |
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Com.
Reg. No.: |
11-110307 |
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CIN
No.: [Company
Identification No.] |
L29120PN1974PLC110307 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
PNEK01506B |
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Legal
Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line
of Business : |
Manufacturer of Pneumatic Systems viz. compressed air, air
conditioning, refrigeration and hydraulic power transmission equipment;
erection, commissioning and servicing of company’s products. |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
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 : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is an old established company having
satisfactory track records. The
company is a part of medium sized, diversified engineering group known as
Kirloskar Group. Directors are reported as experienced and respectable
businessmen. Trade relations are fair. Payments are reported as 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 : |
Plot No. 1, Hadapsar Industrial Estate, Pune – 411 013,
Maharashtra, India |
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Tel.
No.: |
91-20-26870133/26870341 |
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Fax
No.: |
91-20-26870297/26870634/26870514 |
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E-Mail
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Website
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Factory : |
Plot No. 1, Hadapsar Industrial Estate, Pune – 411 013,
Maharashtra, India Saswad Industrial Area, Taluka Purandar, District Pune,
Maharashtra, India 18.8 KMS Delhi Mathura Road, Faridabad – 121 003, Haryana, India
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DIRECTORS
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Name : |
Mr. Sanjay C. Kirloskar |
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Designation
: |
Chairman |
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Name: |
Mr. S. G. Chitnis |
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Designation: |
Executive Vice-Chairman |
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Name: |
Mr. H. R. Mustikar |
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Designation: |
Managing Director |
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Name: |
Mr. Rahul C. Kirloskar |
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Designation: |
Director |
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Age: |
41 Years |
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Experience: |
15 Years |
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Name: |
Mr. Vikram S. Kirloskar |
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Designation: |
Director |
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Age: |
46 Years |
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Qualification: |
Bachelor of Science in Mechanical Engineering |
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Name: |
Mr. J. Y. Tekawade |
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Designation: |
Director |
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Name: |
Mr. A. C. Mukherji |
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Designation: |
Director |
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Name: |
Mr. P. S. Jawadekar |
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Designation: |
Director |
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Name: |
Mr. G. Krishna Rao |
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Designation: |
Director ( Nominee GIC) |
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Name: |
Dr. M K Datar |
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Designation: |
IDBI Nominee |
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KEY EXECUTIVES
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Name : |
Mr. Kedar P Phadke |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters |
7048352 |
54.88 |
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Banks, Financial Institutions, Insurance Companies (Central /
State Government Institutions) |
932037 |
7.25 |
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Other Corporate Bodies |
1081731 |
8.42 |
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General Public |
3678233 |
28.64 |
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NRIs |
103985 |
0.81 |
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Total |
12844338 |
100.00 |
BUSINESS DETAILS
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Line
of Business : |
Manufacturer of Pneumatic Systems viz. compressed air, air
conditioning, refrigeration and hydraulic power transmission equipment;
erection, commissioning and servicing of company’s products. |
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Products
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Exports
to : |
Canada, Kenya, Saudi Arabia, South Africa,
South East Asia, Sultanate of Oman, UAE, UK and USA |
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Imports
from : |
U.K. and USA |
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PRODUCTION STATUS
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Particulars |
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Licensed Capacity |
Installed Capacity |
Actual Production |
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Air & Gas Compressors of all types and
ranges including Reciprocating, Centrifugal & Rotary etc. excluding compressors for Air – conditioning &
Refrigeration |
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5646 |
4072 |
2584 |
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Rock
Drills |
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1800 |
-- |
-- |
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Sump
Pumps |
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240 |
-- |
-- |
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Pneumatic
Tools |
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2832 |
-- |
-- |
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Rock
Drill Roads |
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50000 |
-- |
-- |
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High
pressure compressors |
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100 |
25 |
-- |
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Refrigeration
compressors |
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1500 |
-- |
-- |
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Hydraulic
press |
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600 |
600 |
-- |
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Car
washers |
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2400 |
2400 |
-- |
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Rock Drills and air Legs |
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3600 |
3600 |
-- |
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Vaccum
pumps |
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2400 |
2400 |
-- |
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Car lifts |
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600 |
600 |
-- |
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Refrigeration Compressors, Condensors etc |
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1200 |
1146 |
1164 |
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Refrigeration & Air conditioning Units/Plant including
Compressors & Components |
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2400 |
49 |
33 |
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Air Conditioning and Refrigeration Equipment for Transport |
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600 |
-- |
10 |
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Power Transmission Equipment (Torque Converters) |
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2400 |
9 |
19 |
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Reverse Reduction Gears for Marine Gear Engines |
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900 |
32 |
33 |
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Reverse Reduction Gear Units for Industrial & Mobile
Application |
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1000 |
283 |
213 |
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Controllable Pitch Propellers & Standard Propellers |
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200 |
-- |
-- |
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Fluid Coupling |
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750 |
-- |
-- |
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Tractors |
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10000 |
-- |
-- |
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Engines |
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10000 |
-- |
-- |
GENERAL INFORMATION
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Suppliers
: |
v
Apt Associates & Engineers v
Acme Forging Pvt Ltd v
Acoustic Engineering Company v
Aditya Engineering Company v
Aditya Engineers v
Adroit Enterprises v
Adroit Industries v
Advait Engineering v
Advanced. Design & Prototype Centre P Ltd v
Aep Company v
Afcil Industries Limited v
Ajay Engravers v
Ajay Syscon Pvt Ltd v
Akolkar Industries v
Akshay El-Tech Engineers v
Akshay Plastic Industry v
Anant Fabricators v
Aquiline Controls & Systems v
Arkay Frp Products v
Arun Engg Works v
Aruna Agencies v
Ashirwad Enterprises v
Ashish Enterprises v
Asian Engineering Sales Corporation v
Aspolite v
Associated Engineers v
A-Vee Engineers v
B B Garda & Sons v
B G Shirke Construction Technology P Ltd v
Baga Industries v
Balapa Mech & Engineering Works (India) v
Bestall Engineering Works v
Bhairavnath Engg Works v
Bhairavnath Industries v
Bharat Udyog Kendra v
Britex Engineering Works v
C. S. Engineering Works v
Cenevision Technocrat v
Chemtrols Samil India Pvt Ltd v
Clean O Diesel Services India Pvt Ltd v
Compair Accessories v
Compu Tax Forms Pvt Ltd v
Control Devices v
Cooper Foundry Pvt Ltd v
Cooper Metals Pvt Ltd v
Dag Process Instruments v
Dattatraya Engineering Works v
Day-Ch Engineering v
Delta Enterprises v
Dewas Hydroquip Pvt Ltd v
Doright Engineering v
Dynamic Enterprises v
Electro Flash v
Electro-Flash Industries v
Electronics Systems & Devices v
Emarve Pvt Ltd v
Equip-Maints v
Excel Hydro Pneumatics P Ltd v
Fair Tech Engineers v
Ferrotherm Heat Treater v
Fleetguard Filters Private Limited v
Flexican Bellows & Hoses P Ltd v
Fortuna Industries v
Fourtech Engineering Enterprises v
Fourtech Engineers v
Gadsing Engineering Works v
Gagangiri Alloys P Ltd v
Gole Precision Tools Pvt Ltd v Grihalaxmi
Mttal Industries v
Sheetal Engineers v
Shimoga Pistonrings Pvt. Ltd v
Shimpukade Engineering Pvt.Ltd. v
Shirke Engineering Services Pvt Ltd v
Shital Engineers & Fabricators v
Shivam Engineering Works v
Shivshakti Industries v
Shree Enterprises v
Shree Enterprises(Hadapsar) v
Shree Samarth Engg Works v
Shree Samarth Enterprises v
Shreeram Engineers v Shri
Balaji Technologies Pvt. Ltd. |
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No. of
Employees : |
820 |
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Bankers
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v Bank of India v Bank of Maharashtra v Bank of Baroda v The United Western
Bank Limited v State Bank of India v Union Bank of India v Punjab National Bank v
ICICI Bank Limited |
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Facilities : |
Note : (Secured Loan) (A) Loan under Asset Credit Scheme from IDBI, is secured
by way of a First Charge on immovable properties of the Company situate at
Hadapsar Industrial Estate, Pune and Saswad both present and future and by
way of hypothecation of all the movables save & except book-debts,
including movable machinery, machinery spares, tools and accessories, present
and future, subject to prior charges created and/or to be created (i) in
favour of Bankers, of the Company's stock of raw materials, semi-finished
goods, consumables, stores and such other movables as may be agreed to by
IDBI for securing borrowings for working capital requirements in the ordinary
course of business and (ii) on specific items hypothecated to IDBI under its
Equipment Finance Scheme and Asset Credit Scheme. Mortgage of Land and Building
to cover immovable properties of the company situated at Hadapsar Industrial
Estate, Pune and Saswad both present and future. (B) Corporate Loan from IDBI, is secured by way of a First
Charge on immovable properties of the Company situate at Hadapsar Industrial
Estate, Pune and Saswad both present and future and by way of hypothecation
of all the movables save except bookdebts, including movable machinery,
machinery spares, tools and accessories, present and future, subject to prior
charges created and/or to be created in favour of Bankers, of the Company's
stock of raw materials, semi-finished goods, consumables, stores and, such
other movables as may be agreed to by IDBI for securing borrowings for
working capital requirements in the ordinary' course of business. (C) Rupee Term Loan from ICICI Bank Ltd., is secured by a)
Second charge by way of executing legal Mortgage of immovable properties
situate at i) Hadapsar Industrial Estate, Pune both present and future ii)
Saswad within the limits of Saswad Municipal Corporation both present &
future iii) All movable assets of the Company present and future b) Second
Charge by way of Mortgage by Deposit of Title Deeds by way of constructive
delivery in respect of immovable properties situate at Faridabad c) Corporate
Guarantee by M/s. Kirloskar Oil Engines Ltd. (D) Cash Credit facilities
including fund and nonfund based facilities are secured by (i) First Charge
by way of Hypothecation of Current Assets of the Company namely stock of Raw
Materials, Stock in Process, Semi-Finished and Finished Goods, Stores and
Spares not relating to Plant and Machinery (Consumable Stores and Spares),
Bills Receivables and Book Debts and all other movables both present and
future in the factories premises and Godowns situated at Hadapsar, Saswad and
Faridabad. (ii) Second Charge by way of Mortgage of Immovable Properties
situate at Hadapsar Industrial Estate, Pune and Saswad. within the limits of
Saswad Municipal Corporation in favour of Consortium Banks.
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Banking Relations : |
Satisfactory |
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Auditors
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Dalal and Shah Chartered Accountants Mumbai, Maharashtra, India |
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Associates/Subsidiaries
: |
Associates: v Kirloskar Proprietory
Limited v Poona Industrial Hotel
Limited v Kirloskar Systems
Limited v The Mysore Kirloskar
Limited v Kirloskar Ghatge Patil
Auto Limited v Kirloskar Brothers
Limited v Kirloskar Electric
Company Limited v Kirloskar Investment
& Finance Limited v Demag Kirloskar
Compressors Limited v Kirloskar Kenya
Limited v Kirsons Trading Pte.
Limited Subsidiaries: v Kirloskar Indair
Limited v Kirloskar McQuay Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10 each |
150.000 million |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
12844338 |
Equity Shares |
Rs.10 each |
128.443 |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
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 |
128.443 |
128.443 |
128.443 |
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2]
Reserves & Surplus |
335.196 |
230.239 |
216.184 |
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NETWORTH
|
463.639 |
358.682 |
344.627 |
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LOAN
FUNDS |
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1]
Secured Loans |
380.016 |
514.381 |
581.577 |
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2]
Unsecured Loans |
20.377 |
27.727 |
78.335 |
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TOTAL
BORROWING
|
400.393 |
542.108 |
659.912 |
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TOTAL
|
864.032 |
900.790 |
1004.539 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
243.756 |
193.835 |
180.869 |
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Capital work-in-progress
|
6.385 |
4.723 |
2.764 |
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INVESTMENT
|
23.968 |
42.968 |
55.600 |
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Technical Know-how
|
36.107 |
27.037 |
30.106 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
366.814
|
418.963
|
429.724 |
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Sundry Debtors
|
904.487
|
897.712
|
884.100 |
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Cash & Bank Balances
|
74.504
|
5.590
|
8.159 |
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Loans & Advances
|
120.658
|
139.006
|
195.816 |
Total Current Assets
|
1466.463
|
1461.271
|
1517.799 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
918.023
|
860.237
|
842.944 |
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Provisions
|
15.620
|
0.303
|
0.175 |
Total Current Liabilities
|
933.643
|
860.54
|
843.119 |
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Net
Current Assets
|
532.820
|
600.732
|
674.681 |
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MISCELLANEOUS EXPENSES
|
20.996 |
31.494 |
60.517 |
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TOTAL
|
864.032 |
900.790 |
1004.539 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
3110.174 |
2703.568 |
2245.971 |
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Profit/(Loss) Before Tax
|
122.241 |
15.581 |
9.690 |
Provision for Taxation
|
15.621 |
0.000 |
0.000 |
Profit/(Loss) After Tax
|
106.620 |
15.278 |
9.515 |
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Export Value
|
126.735 |
83.246 |
81.486 |
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Import Value
|
373.814 |
313.186 |
210.134 |
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Total Expenditure
|
2987.933 |
2687.986 |
2236.280 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
30.09.2006 (2nd Qtr) |
30.03.2006 (1st Qtr) |
|
Sales Turnover |
|
551.100 |
508.600 |
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Other Income |
|
198.200 |
25.900 |
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Total Income |
|
749.300 |
534.500 |
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Total Expenditure |
|
527.900 |
488.400 |
|
Operating Profit |
|
221.400 |
46.100 |
|
Interest |
|
10.100 |
10.400 |
|
Gross Profit |
|
211.300 |
35.700 |
|
Depreciation |
|
7.500 |
7.600 |
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Tax |
|
25.100 |
5.100 |
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Reported PAT |
|
178.700 |
23.000 |
200606 Quarter 1 :-- Other Income
includes Other Income Rs 7.90 million Surplus on sale of Assets Rs 18.00
million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (34.80)
million Consumption of Raw Materials Rs 303.60 million Staff Cost Rs 89.50
million Other Expenditure Rs 130.10 million Tax Includes Provision for Current
Tax Rs 2.90 million Fringe Benefit Tax Rs 2.20 million.
200609 Quarter 2 :-- Other Income
includes Other Income Rs 14.00 million Surplus on sale of Assets Rs 184.20
million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 61.50
million Consumption of Raw Materials Rs 252.50 million Staff Cost Rs 75.20
million Other Expenditure Rs 138.70 million Tax Includes Provision for Current
Tax Rs 23.10 million Fringe Benefit Tax Rs 2.00 million.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.23 |
1.86 |
2.24 |
|
Long Term Debt Equity Ratio |
0.75 |
1.28 |
1.36 |
|
Current Ratio |
1.36 |
1.43 |
1.38 |
|
TURNOVER RATIOS |
|
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|
Fixed Assets |
4.54 |
4.12 |
3.43 |
|
Inventory |
8.62 |
6.98 |
6.85 |
|
Debtors |
3.76 |
3.32 |
2.82 |
|
Interest Cover Ratio |
2.38 |
1.07 |
1.04 |
|
Operating Profit Margin (%) |
6.24 |
3.65 |
4.55 |
|
Profit Before Interest and Tax Margin (%) |
5.50 |
2.89 |
3.69 |
|
Cash Profit Margin (%) |
3.50 |
0.96 |
1.01 |
|
Adjusted Net Profit Margin (%) |
2.77 |
0.20 |
0.15 |
|
Return on Capital Employed (%) |
55.50 |
9.73 |
9.76 |
|
Return on Net Worth (%) |
24.43 |
1.79 |
1.15 |
STOCK PRICES
|
Face
Value |
Rs. 10.00 |
|
High |
Rs.
393.00 |
|
Low |
Rs.
393.00 |
LOCAL AGENCY FURTHER INFORMATION
History:
K G Khosla Compressors Ltd. a Kirloskar group of
company was incorporated in Nov.'74 as Khosla Compressors. The name of the
company was changed to K G Khosla Compressors in 1976. Originally the company
was promoted by K G Khosla. Kirloskar Pneumatic Company Ltd Acquired additional
20,51,000 equity shares of the company pursuant to SEBI in 1998-99. During the
year 2002, Kirloskar Pneumatic Company merged with the company and the name was
changed to Kirloskar Pneumatic Company.
It manufactures high pressure compressors, air and gas compressors,
refrigeration compressors, hydraulic press vacuum pumps and grey iron castings.
The main product of the company -- air and gas compressors -- are used by steel
plants, fertiliser plants, and by general engineering industry.
The company suffered industrial unrest for a few years and the plant was locked
out between Sep.'91 and Jun.'92. A revival plan was prepared in consultation
with financial institutions, including raising of fresh capital. In Feb.'94,
the company came out with a rights issue at a premium to raise funds for a
voluntary retirement scheme, for the reduction of a part of the high-interest
borrowings and for long-term working capital. The revival plan has been
sucessfully implemented.
In 1997 the Company has improved the technology for gas compressors with the
help of IHI Limited, Japan. The company has also tied up with KOBELCO for Dry
Screw Compressors. Both of this would fetch additional business for the
company.
In the second half of 1999-2000 the company has taken over the air compressors
business of the Kirloskar Pneumatic Co Ltd., on licence. The company has also
entered into a License Agreement with Kirloskar Proprietory Ltd to use the
brand name `Kirloskar' on its products, letter heads, etc. which will help to
promote its products in the market.
Other Information:
Pursuant to the Scheme of Amalgamation., the members of erstwhile
Kirloskar Pneumatic Co. Ltd. Were allotted 1 (one) equity share of Rs. 10/-
each, fully paid up of KG Khosla Compressors Ltd. for every 4(four) equity
shares of Rs.10/- each, fully paid up held by them on the record date fixed by
the company i.e. 20/8/2002. Company has already forwarded the new share
certificates in the month of October, 2002 to the shareholders of erstwhile
Kirloskar Pneumatic Co. Ltd. without surrendering the old share certificates
held by them. You are therefore requested to please submit the new share
certificates for transfer demat purpose and do not submit the old share
certificates issued by erstwhile Kirloskar Pneumatic Co.Ltd. prior to
25-9-2002, as they are already been treated as cancelled.
Company has not issued any new share certificates to the
shareholders of K G Khosla Compressors Ltd and forwarded only self adhesive
stickers regarding change in the name of the company i.e. from K G Khosla
Compressors Ltd to Kirloskar Pneumatic Co.Ltd. The above certificates are not cancelled,
so please do not send the above certificates to the company for exchange
purpose.
Profile
of Directors retiring by rotation :
Mr. Rahul C. Kirloskar, aged 41 years, is a top notch
technocrat, associated with Kirloskar Group of Companies for more than 15 years
at senior levels in different capacities. The Directorship / Committee
Membership in other companies of Mr. Rahul C. Kirloskar is as follows :
|
Name of the Company Kirloskar Brothers Limited Kirloskar Oil Engines Limited Ansal Properties &
Infrastructure Limited Quadrant Communications Limited. Alpak Investment Pvt. Limited. Kirloskar Services Pvt. Limited. Pratibha Communications Pvt.
Limited. Foresight Limited |
Board position held Director Director - Export Director Director Director Director Director Director |
Mr.
Vikram S. Kirloskar, aged
46 years, graduate from Massachusetts Institute of Technology, USA with a
Bachelor of Science in Mechanical Engineering and has been trained in various
companies in India and abroad in different capacities. The Directorship /
Committee Membership in other companies of Mr. Vikram S. Kirloskar is as
follows :
|
Name of the Company Kirloskar Brothers Limited, Kirloskar Oil Engines Limited, Kirloskar Systems Limited Kirloskar Theratronics Private
Limited Kirloskar Toyoda Textile Machinery
Private Limited Toyota Kirloskar Motor Private
Limited. Toyota Kirloskar Auto Parts
Private Limited |
Board Position Executive Director Director Chairman Director Director Director Director |
Operations:
The Company achieved a turnover of Rs. 3037 million
(previous year Rs. 2641million), registering the growth of 15% over the last
year.
The Air Conditioning and Refrigeration Division’s turnover was Rs. 1130
millions as compared to Rs. 1031 millions during the last year and have
registered a growth of 11% over the previous year inspite of fierce
competition. The Company has established itself as a leader in design,
manufacture and supply of Air Conditioning and Refrigeration Compressors.
Growth in the Process Gas Division has been very encouraging and systems
designed and supplied by us have been working to the entire satisfaction of our
customers. The business grew upto Rs. 410 millions as against Rs. 260 millions
in the previous year.
The Transmission Division’s turnover was Rs. 434
millions as compared to Rs. 259 millions during last year and have registered a
growth of about 67% over the previous year and we expect to keep up this
momentum in 2006-2007.
During the year shifting of
manufacturing facilities of Faridabad plant to Pune was completed. This
resulted into improved productivity and order booking and sale of reciprocating
compressors increased compared to previous year. Company is now in the process
of introducing new range of rotary compressors.
Rigorous
efforts initiated in the previous year continue in this year also to recover
the past dues and / or to ascertain the reasons for non-recovery. To reflect
the fair position of receivables and to strengthen the discipline in financial
reporting, after making assessment and careful review of these past dues,
irrecoverable debts have been written off during the year under appropriate
heads. Rigorous efforts also resulted in realizing Rs. 7.32 millions from the
bad debts written off in earlier years. Despite this the Company's operations
during the year resulted in profit of Rs.108.42 millions against a profit of
Rs. 15.27 millions during previous year.
Dividend
Company is on a growth path and has embarked upon modernization of its plant by
acquiring new multi-utility machines. To finance this activity, Directors feel
it necessary to conserve funds earned during the year and hence do not
recommend any dividend for the year.
Joint Venture Company:
The performance of
Joint Venture Company Kirloskar McQuay Pvt. Ltd. continues to be
satisfactory.
Fixed Assets:
v Land
v Building
v Water Tanks
and Pipelines
v Plant and
Machinery
v Electrical
Installations
v Furniture
and Fixture
v Vehicles
v Leased
Assets
In terms of consideration of prudence as set out in
paragraphs 15 to 18 of AS - 22 , considering the history of past losses of
erstwhile Kirloskar Pneumatic Co. Ltd.,
which has been amalgamated with the Company, sufficient future taxable income
cannot be estimated with virtual or reasonable certainty. The Company therefore
has not recognised Net Deferred Tax Asset in the Financial Statement for the
Year ended 31st March, 2005. Further in accordance with paragraph 19 of AS - 22
the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance
Sheet date hereafter and accordingly due recognition shall be given in the
Financial Statements.
As Per Website
K G Khosla Compressors Limited a Kirloskar group of
company was incorporated in Nov.'74 as Khosla Compressors. The name of the
company was changed to K G Khosla Compressors in 1976. Originally the company
was promoted by K G Khosla. Kirloskar Pneumatic Company Limited Acquired
additional 20,51,000 equity shares of the company pursuant to SEBI in 1998-99.
During the year 2002, Kirloskar Pneumatic Company merged with the company and
the name was changed to Kirloskar Pneumatic Company.
It manufactures high pressure compressors, air and gas compressors,
refrigeration compressors, hydraulic press vacuum pumps and grey iron castings.
The main product of the company air and gas compressors are used by steel
plants, fertiliser plants, and by general engineering industry.
The company suffered industrial unrest for a few years and the plant was locked
out between Sep.'91 and Jun.'92. A revival plan was prepared in consultation
with financial institutions, including raising of fresh capital. In Feb.'94,
the company came out with a rights issue at a premium to raise funds for a
voluntary retirement scheme, for the reduction of a part of the high-interest
borrowings and for long-term working capital. The revival plan has been
sucessfully implemented.
In 1997 the Company has improved the technology for gas compressors with the
help of IHI Limited, Japan. The company has also tied up with KOBELCO for Dry
Screw Compressors. Both of this would fetch additional business for the
company.
In the second half of 1999-2000 the company has taken over the air compressors
business of the Kirloskar Pneumatic Co Ltd., on licence. The company has also
entered into a License Agreement with Kirloskar Proprietory Ltd to use the
brand name `Kirloskar' on its products, letter heads, etc. which will help to
promote its products in the market.
The Kirloskar Story:
It has now been more than a century since the
Kirloskar story started. They started
with an aim of becoming the pioneers in fields in which our country needed
innovation. In the 100 years and more that they have been in existence as a
family and as an organisation, we've been seminal to Indian agricultural and
industrial development. They gave India
its first iron plough, pump and engine; inventions that were deviced from the
need of the hour and went on to become signs of the time. Which is why our
group history can in many ways can be considered a history of the economic and
industrial revolution in India.
The founder and the first factory village
The Kirloskar story starts with Laxmanrao Kirloskar,
the founder. A man who believed that an understanding of one's environment and
reality was essential to the manufacture of path-breaking industrial
implements. From this steadfast belief was born the iron plough, the first
Kirloskar product. Originally intended as an essential aid to agriculture, the
plough soon became an icon of reform and revolution.
A highlight of the early history of the group is
Kirloskarvadi, India's first industrial township. A model factory-village
created by Laxmanrao and his band of dedicated workers.
In January 1910, when the Kirloskar were being ousted
from Belgaum to make room for a new suburb, they found themselves in dire need
of a place to live and work. Sensing this need, the Raja of the princely state
of Aundh, who admired and respected Laxmanrao Kirloskar, offered the latter all
the land he needed in Aundh state.
Two months later, Laxmanrao Kirloskar set foot on 320
million of barren land strewn with cacti and infested with cobras. Driven by
his faith in human ability, Laxmanrao banded together 25 workers and their
families and succeeded in transforming the barren expanse into his dream
village. Ramuanna, Laxmanrao's brother, planned and administered the township,
Shamburao Jambhekar doubled as engineer and all-round healing man,
K.K.Kulkarni, an unsuccessful student, became a manager, treasurer and odd jobs
man, Mangeshrao Rege was the clerk and chief accountant, Anantrao Phalnikar, a
school drop-out flowered into an imaginative engineer. Such was our founder's
faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted
dacoits, became the trusted guards of Kirloskarvadi!
The first Kirloskar Group Company
Kirloskar Brothers Limited (KBL) - the first
Kirloskar venture at Kirloskarvadi was to become the base for all of the
Kirloskar Group's subsequent enterprises. It began as the only Indian company
with its own standard products - the fodder cutter and the iron plough, which
competed with the British products.
KBL also manufactured groundnut shellers, sugarcane
crushers and pumps, which were to usher in a new economic order in the Indian
industry. To power these machines, diesel engines, coal gas generators and
electric motors were developed at Kirloskarvadi.
In a display of great versatility, KBL then shifted
its focus to fluid handling and control. As India's largest manufacturer of
pumps and valves, and also the group's flagship company, KBL lends its strength
and expertise to every new venture of the Kirloskar Group.
Playing a part in the War
The intensified boycott of the British goods and the
approaching World War threatened to stop imports of machine tools into India.
The Kirloskar, with characteristic foresight began making machine tools. This
paradigm shift of sorts, from farm implements to machine tools, created a new
company - The Mysore Kirloskar Limited. This company, situated in Harihar,
benefited greatly from the patronage of yet another Raja - the Maharaja of
Mysore. In the first month of production, Mysore Kirloskar sold all of
manufactured seven lathes.
The new generation -Innovation, creation, tradition
From colonialism to independence
An important change, for the country, and for one of
its premier industrial houses, the Kirloskar Group. The altered political
climate of the 1940s heralded the end of the princely patronage for
enterprise.The policy shifts and changes in authority were the order of the
day. This marked a turning point for the group.
Shantanurao Kirloskar, the eldest son of the founder
travelled to Pune to initiate a new aspect of the group's activities - diesel
engines. His experience of trying to secure the land for his factory in Pune
was quite different from his father's in Kirloskarvadi. There was no benevolent
ruler here to bestow acres gratis. Shantanurao had to face the tangle of red
tape and public resistance to acquisition of land for industrial purposes.
Finally, after arguing that factories have a longer
life than human beings Shantanurao Kirloskar won a place for Kirloskar Oil
Engines Ltd. (KOEL), twelve months after signing an agreement of collaboration
with Associated British Oil Engines Export Ltd. of UK.
This collaboration, incidentally, was the first of
its kind between an Indian and a foreign company, and signified a bridging of
the technological gap between east and west.
The KOEL factory was incorporated in 1946, and soon
after that gave India her first vertical high-speed engine. Brijlal Sarda, who
reported its satisfactory running for over 4 decades, bought this first engine!
To electric motors and pneumatics
The making of the electrical motor. This was the
second of Laxmanrao Kirloskar's long cherished dreams, the first being the
making of an engine. This task was brought to completion by Ravi Kirloskar, his
youngest son, in 1946. Way back then, the authorities whom Ravi Kirloskar had
approached for land were astonished by the request for 25 acres. Today,
Kirloskar Electric Company Limited (KECL) has four plants occupying several
times that acreage.
KECL's logo in the 40's
The setting up of KECL and other Kirloskar companies
saw a major role being played by Nanasaheb Gurjar, a lawyer who made industry
his sole area of operation. Though the development of air compressors was an
established activity at Kirloskarvadi, a full-fledged plant to manufacture the
same was set up at Pune in 1958, under the eventual management of Shreekant
Kirloskar, Shantanurao's youngest son. In collaboration with Broom and Wade of
England, Kirloskar Pneumatic Company Limited began the manufacture of air
compressors and pneumatic tools.
Today, its turnkey expertise is sought in almost
every major industrial project in India. Collaboration with Twin Disc Inc. of
the USA has taken the company into torque invertors, marine gearboxes and rail
traction transmissions.
A new direction - services
The phenomenal success of the Kirloskar name prompted
entrepreneurs and businessmen of the time to approach the group for guidance
and expertise. This gave birth to the concept of formalised engineering
consultancy and a new company - Kirloskar Consultants Limited (KCL) in 1963.
Marking an extension of the group's repertoire from manufacturing to services,
KCL, in its 25 years of operation, has contributed to critical areas such as
defence, irrigation, roads and environment.
This paradigm shift saw the setting up of yet another
service company - Pune Industrial Hotels Limited in 1964, the Kirloskar Group's
first foray into hospitality. This company set up Hotel Blue Diamond in Pune
and began to manage Hotel Pearl in Kolhapur. The Baker's Basket confectionery
chain and the Hotel and Catering Consultancy Services (HOCON) were also set up.
The dawn of a new millennium
To meet the changing demands of a global business
environment and emerging economic trends, the Kirloskar Group has refocused and
restructured its direction by concentrating on its core segment of agriculture,
water supply, power, and air conditioning. By consciously opting out of
hospitality, advertising and unreal services, the Group has channeled its
potential in these core sectors.
The Group aims at unlocking the strength and value in
the Kirloskar brand and distribution to enhance returns for its stakeholders.
It has identified and is implementing processes that would bring greater
customer focus and competitiveness.
Today, the Kirloskar Group is a
conglomerate with interests across a diverse range of industries. It is still
spurred by the simple yet profound ethic born with Laxmanrao Kirloskar that
where there is will there are many ways.
Product Range:
Air Compressors
- Centrifugal
- Reciprocating(Lubricated & Oil Free)
- Rotary Screw(Mobile/ Stationary)
- Small (Garage) Compressors
- Railway Brake Compressors/ Expressors
Refrigeration &
Air-Conditioning
- Refrigeration Compressors
- Air-Conditioning Compressors
- Flake & Block Ice Plants
- Transport Air-Conditioning
- Specialised, Custom Built - Screw Compressor Packages
- Turnkey Solutions - Refrigeration & Air-Conditioning systems
Gas Compressor
Packages
- Specialised Reciprocating Gas Compressor Packages for a
wide range of Gases, Hydrocarbons
Transmission
- Locomotive Transmission Units
- Hydraulic Marine Gear Boxes
- Industrial & Windmill Gear Boxes
- Torque Converters
- Traction Gears and Pinions
Chairman
Mr. Sanjay C. Kirloskar
Managing Director
Mr.H.R.Mustikar
Manufacturing
units
Pune, Saswad and
Kondhapuri in the state of Maharashtra.
Faridabad in the state of Haryana.
Contact
Plot
No. 1, Hadapsar Industrial Estate, Pune – 411 013, Maharashtra, India
Tel.
No.: 91-20-26870133/26870341
Fax
No.: 91-20-26870297/26870634/26870514
Email
: kpcl@giaspn01.vsnl.net.in
Website
: http://www.kirloskar.com
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.44.31 |
|
UK Pound |
1 |
Rs.86.82 |
|
Euro |
1 |
Rs.57.29 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
|
44 |
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 |