MIRA
INFORM REPORT
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Report Date : |
18.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
ELGI EQUIPMENTS LIMITED |
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Registered Office : |
Elgi Industrial Complex III,
Trichy Road, Singanallur, Coimbatore - 641 005, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
14.03.1960 |
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Com. Reg. No.: |
18-351 |
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CIN No.: [Company
Identification No.] |
L29120TZ1960PLC000351 |
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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 : |
Manufacturer of reciprocating and screw compressors in the lower
horsepower range. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD
4750000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having fine track. Trade relations are fair.
Financial position is good. Payments are usually correct and as per
commitments. The
company is doing steady business. It can be considered good for any normal
business dealings at usual trade terms. The company can be regarded a
promising business partner in a medium to long run. |
LOCATIONS
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Registered Office : |
Elgi Industrial Complex III,
Trichy Road, Singanallur, Coimbatore - 641 005, Tamil Nadu, INDIA |
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Tel. No.: |
91-422-2589555 / 2574691 to
2574695 |
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Fax No.: |
91-422-2573697 / 2576849 |
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E-Mail : |
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Website : |
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Factory
1 : |
Located
at Singanallur and Kurichi, both in Coimbatore,
Tamil Nadu |
DIRECTORS
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Name : |
Mr. L. G. Varadarajulu |
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Designation : |
Non-Executive Chairman |
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Name : |
Mr. L. G. Ramamurthi |
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Designation : |
Director
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Name : |
Mr. C. Soundaran |
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Designation : |
Director
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Qualification : |
B. E.M.S., (USA) |
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Experience : |
39 years as Industrialist |
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Directorship held : |
Coimbatore Private Industrial Estate Limited |
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Committee Memberships : |
Audit Committee Shareholder and Investor Grievance Committee. |
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Name : |
Mr. N. Mohan Nambiar |
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Designation : |
Director
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Name : |
Dr. T. Balaji Naidu |
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Designation : |
Director
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Name : |
Mr. B. Vijayakumar |
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Designation : |
Director
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Name : |
Mr. Sudarsan Varadaraj |
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Designation : |
Director
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Qualification : |
B.E.(Hons), M.S (Mechanical Engg.) |
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Experience : |
20 years as Industrialist |
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Directorship held : |
1. EIgitread (India) Limited 2. Elgi Rubber Products Limited 3. Kovilpatti Laxmi Roller Flour Mills Limited 4. Super Spinning Mills Limited 5. Vijayeswari Textiles Limited 6. EIgitread Limited 7. EIgi Electric & Industries Limited 8. Geo Renewable Power Limited 9. Rayalaseema Technologies Limited |
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Name : |
Dr. Ganesh Devaraj |
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Designation : |
Director
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Qualification : |
B.E. (Electronic and Comm.), M.S (Electrical Engg.), Ph.D (USA) |
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Experience : |
10 years as Industrialist |
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Directorship held : |
Soliton Technologies Private Limited, |
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Name : |
Mr. M. Ramprasad |
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Designation : |
Director
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Name : |
Mr. Harjeet Singh Wahan |
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Designation : |
Whole Time Director |
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Qualification : |
B.E. (Elec.), DBM |
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Date Of Appointment : |
20.12.1995 |
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Previous
Employment : |
KSB Pumps Limited |
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Name : |
Dr. Jairam Varadaraj |
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Designation : |
Managing Director |
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Qualification : |
B. Com., M.B.A., Ph.D.(USA) |
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Date Of Appointment : |
29.05.1992 |
KEY EXECUTIVES
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Name
: |
Mr. P.Venkatesan |
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Designation
: |
General Manager - Finance & Accounts |
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Name
: |
Mrs. N.Hema |
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Designation
: |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of reciprocating and screw compressors in the lower
horsepower range. |
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Products : |
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Exports to : |
Australia, Germany, Indonesia, Malaysia, Middle East, Nepal,
Singapore, South Africa, Sri Lanka, Thailand and USA |
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Imports from : |
Germany, Italy, Japan, Korea, USA and UK |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Air Compressors |
Numbers |
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32500 |
42670 |
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Automotive Equipments |
Numbers |
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12000 |
16020 |
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Others |
Numbers |
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100125 |
5209 |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
1210 |
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Bankers : |
Ø
Central Bank of India, Coimbatore, Tamilnadu. Ø
State Bank of India, Coimbatore, Tamilnadu. Ø
Bank of Baroda, Coimbatore, Tamilnadu. Ø
The Lakshmi Vilas Bank Limited, Coimbatore, Tamilnadu |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
STATUTORY AUDITORS RJC Associates Chartered Accountant Srivatsan & Gita Chartered Accountant COST AUDITOR Dr. G L. Sankaran Cost Accountant |
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Subsidiaries : |
Adisons Precision Instruments Manufacturing Company Limited |
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Associates : |
Elgi Finance Limited Elgi Electric & Industries Limited Elgi Ultra Industries Limited Elgitread (India) Limited L. G. Balakrishnan & Bros Limited Ellargi & Company |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.1 each |
Rs. 100.000 millions |
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Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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60000000 |
Equity Shares |
Rs. 1 each |
Rs. 60.000 millions |
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2,00,00,000 |
Equity Shares of Re.1/- each issued out of which 1,81,74,240 Equity
Shares were subscribed and Paid up @0.15 paise for 18174240 shares. |
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Rs. 2.730 Millions |
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Total |
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Rs. 62.730
Millions |
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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 |
62.730 |
62.730 |
61.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1150.860 |
1046.050 |
892.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1213.590 |
1108.780 |
954.100 |
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LOAN FUNDS |
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1] Secured Loans |
44.450 |
65.940 |
44.200 |
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2] Unsecured Loans |
1.860 |
22.910 |
1.300 |
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TOTAL BORROWING |
46.310 |
88.850 |
45.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
22.360 |
0.000 |
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TOTAL |
1259.900 |
1219.990 |
999.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
352.570 |
377.880 |
399.800 |
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Capital work-in-progress |
2.760 |
16.500 |
10.100 |
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INVESTMENT |
160.040 |
222.070 |
148.700 |
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DEFERREX TAX ASSETS |
1.630 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
410.420
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455.050 |
471.200 |
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Sundry Debtors |
658.080
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495.080 |
347.100 |
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Cash & Bank Balances |
33.510
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43.210 |
55.200 |
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Other Current Assets |
1.840
|
0.340 |
0.000 |
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Loans & Advances |
559.080
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427.590 |
344.200 |
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Total Current Assets |
1662.930
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1421.270 |
1217.700 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
519.420
|
514.330 |
492.500 |
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Provisions |
412.140
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313.690 |
293.900 |
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Total Current Liabilities |
931.560
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828.020 |
786.400 |
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Net Current Assets |
731.370
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593.250 |
431.300 |
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MISCELLANEOUS EXPENSES |
11.530 |
10.290 |
9.700 |
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TOTAL |
1259.900 |
1219.990 |
999.600 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
3185.000 |
2918.310 |
3415.500 |
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Profit/(Loss)
Before Tax |
268.720 |
308.890 |
290.700 |
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Provision
for Taxation |
92.380 |
94.990 |
100.200 |
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Profit/(Loss)
After Tax |
176.340 |
213.900 |
190.500 |
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Export
Value |
613.950 |
557.120 |
NA |
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Import
Value |
394.940 |
280.030 |
NA |
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Total
Expenditure |
2864.640 |
2605.300 |
3124.800 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
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Sales
Turnover |
|
795.200 |
959.500 |
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Other
Income |
|
07.700 |
09.100 |
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Total
Income |
|
802.900 |
968.600 |
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Total
Expenditure |
|
715.700 |
863.300 |
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Operating
Profit |
|
87.200 |
105.300 |
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Interest |
|
[01.200] |
[01.500] |
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Gross
Profit |
|
88.400 |
106.800 |
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Depreciation |
|
16.000 |
16.800 |
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Tax |
|
24.600 |
29.100 |
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Reported
PAT |
|
47.800 |
61.000 |
Notes:
200606 Quarter 1 –
EPS is Basic 1. The above results were considered by the audit
committee on 22.07.06 and approved by the Board of Directors at their meeting
held on 22.07.2006. 2. VRS compensation paid during this quarter has been fully
written off. 3. Details of number of investor complaints for he quarter ended
June 30, 2006, Beginning -Nil, Received- 05,Disposed off -05,Pending -Nil. 4.
Performance pay for officers and above has not been provided under salaries
during this quarter. 5. Previous period figure have been regrouped wherever
necessary.
200609 Quarter 2 –
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
(43.20) million Consumption of Raw Materials Rs 636.90 million Staff Cost - Salaries
Rs 74.70 million - Employee Profit Share Rs 3.50 million - Performance Pay Rs
18.30 million Other Expenditure Rs 173.10 million Tax Includes Provision for
Current Tax Rs 27.80 million Fringe Benefit Tax Rs 1.30 million Deferred Tax Rs
(0.10) million EPS is Basic Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 08 Complaints disposed off during the
quarter 08 Complaints unresolved at the end of the quarter Nil 1. Board has
recommended an Interim Dividend of 50% on the paid up share capital of the
Company for the financial year 2006-07. 2. The above results were considered by
the Audit committee on October 28, 2006 and approved by the Board of Directors
at their meeting held on October 28, 2006. 3. Figures have been regrouped
wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.06 |
0.07 |
0.03 |
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Long Term Debt-Equity Ratio |
0.01 |
0.03 |
0.03 |
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Current Ratio |
1.63 |
1.55 |
1.47 |
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TURNOVER RATIOS |
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Fixed Assets |
2.98 |
2.88 |
3.23 |
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Inventory |
7.91 |
6.76 |
8.18 |
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Debtors |
5.94 |
7.44 |
10.12 |
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Interest Cover Ratio |
26.19 |
33.52 |
36.31 |
|
Operating Profit Margin(%) |
11.90 |
13.23 |
15.02 |
|
Profit Before Interest And Tax
Margin (%) |
9.18 |
10.17 |
12.31 |
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Cash Profit Margin (%) |
8.46 |
9.90 |
10.25 |
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Adjusted Net Profit Margin (%) |
5.74 |
6.83 |
7.55 |
|
Return on Capital Employed (%) |
25.81 |
29.25 |
46.17 |
|
Return on Net Worth (%) |
16.92 |
20.74 |
27.61 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.58.92/- |
|
Low |
Rs.56.50/- |
LOCAL AGENCY
FURTHER INFORMATION
FIXED ASSETS
- Land
- Buildings
- Plant &
Machinery
- Electrical
Fittings, Furniture & Office Equipments
- Motor Vehicle
- Canteen
Equipments
HISTORY
Subject was incorporated on 14th March, 1960 at
Coimbatore in Tamilnadu as a private limited company having Company
Registration Number 351 and converted into a public limited company in January,
1975.
Incorporated in 1960 as a private limited company, Elgi Equipments
was converted into a public limited company in 1975 and came out with a public
issue of 75,000 shares. It was promoted by L G Balakrishnan, his brothers and
associates.
Hailing from the Elgi stable, EEL manufactures reciprocating, borewell and
screw compressors. It also makes and sells garage equipment, mobile utility
systems, bottling equipment and automobile accessories such as power brakes,
pneumatic horns and wipers. It has two manufacturing units at Coimbatore. As
part of its modernisation plans, the company invested Rs 40 crores in the
upgradation and expansion of the manufacturing facilities, especially of
compressors.
The company was initially manufacturing garage equipment like low-range
reciprocating compressors, car-washing machines and hydraulic lifts, with
technical know-how from Pumpen Fabrik Urach, Germany. Later, in technical
collaboration with Landwehr, Germany, the company started manufacturing
lubricating equipment. During 2003-04, the company included three new products
namely, Vayu Series Borewell Compressors, 3.5KVA Genset and Electronic Tyre
Inflator. In the year 2004-05, the company commissioned its first Four
Centrifugal Compressor and Tank Mounted Screw Compressor.
The company has obtained the technology for the manufacture of pasteurising
plants from Gobel, Germany; screw compressors from Sullair Corporation, the US;
bottle-washing machines from Krones, Germany; and automatic vehicle- washing
machines from Ceccato, Italy. To strengthen its technologies, the company has
tied up with City University, London, and hired consultants to help improve its
products and processes. In 1999-2000, a branch office was established in
SriLanka to explore the Sri Lankan market. During 2004-05, the company entered
the petrol or kerosine engine business through an association with Robinson of
Japan via their associates in Sri Lanka.
In Aug. 2000, Elgi Equipments has entered into technical collaborations with
Hitachi to produce Oil Free Air Compressors in India. It has also tied up with
Samsung Techwin Co Limited, an affiliate of the Samsung group, to bring to
India their centrifugal compressor - Turbo Master. To upgrade automotive
equipment and also to manufacture Compressors with higher capacities and
pressures the company has launched a joint technology upgradation plan with
City University UK. During 2002-03 the total capital expenditure incurred were
Rs.78.12 million and the captial expenditure were funded by way of internal
accruals.
In the year 2004, the company has entered into a Collaborative Venture with JP
Sauer & Sohn, Germany to envisage the manufacturing of compressor required
for Battle ships. The company made an arrangement with Mahindra & Mahindra
for supplying the engines for their gensets in 2004-05.
During 2004-05, the plan to merge its wholly owned subsidiary viz Adisons
Precision Instruments Manufacturing Limited with the company is on progress.
BUSINESS
Subject is the leading manufacturer of reciprocating and screw
compressors in the lower horsepower range.
It is the market leader in bore and water-well compressors. It also
manufactures garage equipments, automobile accessories and markets lube oil for
compressors.
Hailing from the Elgi stable, the company manufactures
reciprocating, borewell and screw compressors. It also makes and sells garage
equipment, mobile utility systems, bottling equipment and automobile
accessories such as power brakes, pneumatic horns and wipers. It has two
manufacturing units at Coimbatore. As part of its modernisation plans, the
company invested Rs. 400.000 millions in the upgradation and expansion of the
manufacturing facilities, especially of compressors.
The company was intially manufacturing garage equipment like
low-range reciprocating compressors, car-washing machines and hydraulic lifts,
which technical know-how from Pumpen Fabrik Urach, Germany.
The company has technical collaboration with Landwehr, Germany,
the company started manufacturing lubricating equipment.
The company has obtained the technology for the manufacture of
pasteurising plants from Gobel, Germany; and automatic vehicle-washing machines
from Ceccato, Italy. It is exploring West Asia for exports. To strengthen its
technologies, the company has tied up with City University, London and hired
consultants to help improve its products and processes. In 1999-2000 a branch
office was established in Sri Lanka to explore the Sri Lanka market.
In August 2000, the company equipments has entered into technical
collaborations with Hitachi to produce oil Free Air Compressors in India. It
has also tied up with Samsung Techwin Company Limited, an affiliate of the
Samsung group, to bring to India their centrifugal compressor – Turbo Master.
Air Compressors account for about 65% of company's turnover. The balance is accounted for by other garage
equipment such as car washer Hydraulic hoist, automobile accessories such as
pneumatic horns, pneumatic wipers, power brakes and also automatic pasteurising
plants for beer/soft drink industry.
In an exclusive agreement with Karcher, Germany, it markets and
services Karcher cleaning equipments.
It also markets and services a range of wheel balancers, oil suction
units and AC recovery plants manufactured by Werther, Italy. It has ventured into the marketing of a special
oil for air screw compressors. In
collaboration with Chemoleums, a fast-growing automotive and industrial
lubricants manufacturer (having technical expertise from Caltex, USA), it had
launched Elgi Airlube, a high performance oil specially designed and developed
for air compressors. In the low-end
range of compressors, the company has a
market share of 40%, while the rest is accounted for by the unorganised sector,
which is particularly strong in the agricultural sector. It is the only manufacturer who provides the
entire range of garage equipment. It
also leverages on its distribution set up to introduce other engineering
equipment.
Dividend:
Further to the 40% Interim Dividend paid during the financial year, the
Directors are pleased to recommend a final dividend of 60% on the paid up share
capital of the Company. Thus, subject to shareholders' approval, the total
dividend for the financial year 2005-06 works out to 100%, the same as that of
last year. The consistency is maintained to strike a balance between
shareholder value and to maintain availability of funds through internal
accruals.
Review of Operations:
The company ended with net sales of Rs.3120.70 million as against Rs.2852.66
million. The details of division wise performance and other operational details
are discussed at length in the Management Discussion and Analysis Report and
the Letter from the Chairman, given elsewhere in this report.
Subsidiary company:
The Company has been exempted from publishing the audited financial results of
its wholly owned subsidiary company. M/s.Adisons Precision Instruments
Manufacturing Co. Limited along with this annual report, for the year 2005-06,
vide letter No.47/43/2006-CL-III, dated 27/02/2006, from the Government of
India, Department of Company Affairs. The annual accounts of the subsidiary
company are available for inspection by any shareholder, at the registered
office of the holding and subsidiary companies.
One of the plans for the financial year 2006-07 and beyond is to hive off the
automotive equipment division and to initially make it a wholly owned
subsidiary.
The rationale for this is manifold. One, the automotive equipment business has
huge opportunities in the Indian and world markets. In order for the company to
leverage these opportunities it has to receive significant strategic, managerial
and financial attention. By being a part of the compressor business, which is
far more dominant in size, the Board felt that this business was not getting
the requisite attention. By creating a separate company with a focused
leadership team, the opportunities can be leveraged far more
advantageously.
Two, the cost structure of the Automotive Equipment business needs a different
orientation than the compressor business. By being a small part of a larger
business entity, the cost decisions tend to be made for the larger businesses
requirements. In the long run this could place the Automotive Equipment
business in a disadvantageous position by being a division.
Three, the compressor business and the Automotive Equipment do not share any
common resources either in the back end manufacturing or the front end sales
and marketing. Hence, there would not be any synergy based losses for the
company.
The company would be taking the necessary steps to subsidiarize this business
during the first quarter of this financial year.
Future Plans:
Compressors:
The company intends to focus on on-time performance, quality and cost through
expanding the areas where lean manufacturing has been deployed. It also intends
to focus on supplier performance as well. On the sales front, the thrust would
be more on large screw compressors, oil free compressors and centrifugal
compressors wherein their market share is very low and the opportunities are
high. They intend to partner with companies in world wide as a first step to
introduce oil-free screw compressors in the lower HP range. They also have
plans to expand their presence in the railway compressor business by focusing
on spare parts business which would increase the revenue from this
segment.
Automotive equipment:
The focus in this division is to work towards greater indigenization of
imported parts and look at new products in the automotive segment specifically
towards high end segments, for cost reduction and on-time performance. They
also intend to increase their presence in the tyre and oil sectors in which
they see prospects for better growth and improve customer contact and
relationship by focusing on service and service products.
Exports:
In this division their focus would be to increase sales in existing markets by
greater direct presence and to enter new markets through key OE partnerships.
Other related areas of thrust would be to establish manufacturing in some key
markets to enable lower costs and better customer response.
Subject has been
accredited with ISO 9001 Certification.
Trade Reference
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And Bars Private Limited
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As per website
Elgi was established in 1960 as a
service station equipment and reciprocating compressor manufacturing company.
Over the years ELGI has become a multi-product, multi-market company
manufacturing technically superior products.
The ELGI product lines today, broadly comprise, Rotary Compressors,
Reciprocating Compressors Centrifugal Compressors, Automotive Equipment, Diesel
Engines and Manufacturing and engineering services.
ELGI has two manufacturing locations in Coimbatore,
India, with 22 acres of land and 352,000 sq ft of built up factory area.
With a vast network of sales &
service outlets manned by well-trained, highly qualified and motivated
engineers and marketers, ELGI aims to conquer the domestic market and be a
meaningful global player in its core products.
ELGI endeavors to continuously improve processes,
products and technology, with the objective of serving people better.
This in turn has made ELGI the undisputed leader in
the products it manufactures with a strong reputation for quality and service.
ELGI's core competencies are serviced by five major
Divisions:
- Rotary
Compressor Division
- Reciprocating,
Railways and Original Equipment Division
- Automotive
Equipment Division
- Engines
Division
- Manufacturing and Engineering Services
|
Division |
Core Competencies |
|
Rotary Compressor Division (ROCD) |
Design, development and manufacture of electric and
diesel powered screw air compressors. |
|
Reciprocating Compressors, Railway Compressors and
Original Equipment Division (RCD) |
Design, development and manufacture of single and
two stage reciprocating compressors, railway compressors and a variety of
compressor solutions for railway applications. Their competence also lies in
customized packages for applications like circuit breakers, engine starting
etc. |
|
Automotive Equipment Division (AED) |
Design and manufacturing of lifts, paint booths and
other automotive servicing and diagnostic equipment. |
|
Diesel Engines Division |
Design, development and manufacture of single stage
diesel engines for constant speed as well as automobile applications. |
|
Manufacturing end Engineering Services |
One stop shop for end to end engineering services
and precision components. |
Compressor Technology at ELGI is classified into
reciprocating compressors, screw compressors, centrifugal compressors and
oil-free compressors. ELGI manufactures all these types of compressors covering
a range from 0.75HP to 1500HP for volumes from 1.8 cfm (cubic feet per minute)
to 80000 cfm. While selling individual products can meet the objectives of a
customer's requirement, ELGI's marketing strategy has always been to partner
with a customer and provide total air solutions to industries that require
compressed air for their operations.
The Automotive Service Equipment
Division manufactures lubrication equipment, two-wheeler and four-wheeler
hoists, paint booths, AC recovery units, crash repair systems, wheel balancers
and various other diagnostic equipment. Most of the modern garages are fitted
with ELGI's garage equipment. As a result, today their customers have increased
their speed of analyzing faults, reducing wastage of resources.
ELGI is today, the market leader and Asia's largest manufacturer
of air compressors and automobile service station equipment.
ELGI's products are used in a wide range of applications in areas
ranging from mining, defence, transport, pharmaceuticals, power, oil, railways,
chemicals, textiles, printing to ship building, paper, electronics,
telecommunications, medical, food & beverages and plastics.
Products
ELGI is changing everyday. It is pursuing new business opportunities
created by developments in technology. ELGI already leads India in compressor
technology and is a prominent player in Automotive Service Station Equipment.
Engines and ELGI New Generation Compressors (low range reciprocating
compressors) are today emerging as new business sectors for the company.
R&D is also a major thrust area at ELGI. In fact a large share of products
currently under the ELGI fold are developed in-house. Please click on the
individual product lines to learn more about their products.
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.44.30 |
|
UK Pound |
1 |
Rs.87.61 |
|
Euro |
1 |
Rs.57.61 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|