MIRA
INFORM REPORT
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Report Date : |
21.07.2007 |
IDENTIFICATION DETAILS
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Name : |
HINDUSTAN AERONAUTICS LIMITED |
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Registered Office : |
P.B. # 225, 15/1, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.11.1964 |
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Com. Reg. No.: |
11-13068 |
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CIN No.: [Company
Identification No.] |
U35301KA1963GOI001622 |
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Legal Form : |
Government of |
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Line of Business : |
Design, Manufacture, Upgrade and Overhaul of Fighters, Trainers, Helicopters, Transport Aircraft Engines, Aironus and Systems Equipments for both military and civil application. |
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 125000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company of Government of India. Available information indicates high financial responsibility of the company. The company is doing well. Its payments are always correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions The company is under the control of Ministry of Defence and there may be rare possibility of company becoming bankrupt. The company has tremendous exposure from ministry |
LOCATIONS
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Registered Office : |
P.B. # 225, 15/1, |
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Tel. No.: |
91-80-22266901 / 8758 / 22865197 / 1258 / 8629 |
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Fax No.: |
91-80-22268758 / 22577533 / 22867140 |
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E-Mail : |
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Telex |
845-2266 |
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Telegram |
HAL |
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Website : |
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Area : |
4126 acres |
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Location : |
Owned |
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Corporate Office : |
15/1, |
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Tel. No.: |
91-80-22865197 / 1258 / 8629 / 22866701 / 902-908 / 4636 |
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Fax No.: |
91-80-22867140 / 8758 / 22876533 |
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Factory 1 : |
Located at : v
Chakeri, P. B. # 225, v
Engine
Division:
Tel. No. 91-80-2526 5201 / 2528 3117 Fax No. 91-80-2527 9564 Design
Complex
Vimanapura, P. B. No. 1789, HAL Complex, Tel. No. 91-80-2526 5201 / 1020 Contact Person: Dr. C. R. Ramanja Char (General Manager |
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Overseas Office : |
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Room No. 602, Tel. No. 0044 – 171 – 497 – 2360 / 81 – 958 – 1826 Fax No. 0044 – 171 – 497 – 8398 Contact Person: Mr. Kanakappa, Resident Manager v
Embassy of Tel. No. 007 – 095 – 2977523 / 095 – 1430320 Fax No. 007 – 095 – 9752337 Contact Person: Mr. R. Varadarajan, Resident Manager |
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Regional Office : |
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No. 101, Tel. No. 91-11-26514604 Fax No. 91-11-26864683 Contact Person: Gp. Capt. M. S. Shukla (Retd.), Resident Manager v
New Kamani Chambers, 32, Ramjibhai Kamani
Marg, Ballard Estate, Mumbai – 400 018, Tel. No. 91-22-2261 0329 / 2261 6276 Fax No. 91-22-2266 4890 Contact Person: Mr. Harish Chandra, Resident Manager v
No. 9, SAIT Colony, Tel. No. 91-44-2822 4982 Fax No. 91-44-2828 4180 Contact Person: Mr. S. Ramachandran, Resident Manager v
HAL Bhavan, D. No. 49-22-4, Near Shankar
Matham, Lalitanagar, Vishakhapatnam – 530 016, Tel. No. 91-891-22554376 Fax No. 91-891-22495248 Contact Person: Mr. C. Patnaik, Officer-in-Charge v Secretariat Contact Person: Mr. Ashok Tandon, Company Secretary Tel. No. 91-80-2286 6001 Fax No. 91-80-2286 8758 / 2286 7533 |
DIRECTORS
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Name : |
Mr. A. K. Saxena |
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Designation : |
Managing Director |
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Name : |
Mr. K. P. Puri |
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Designation : |
Managing Director |
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Name : |
Mr. Ashok K.
Baweja |
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Designation : |
Chairman |
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Name : |
Mr. Sanjeev Sahi |
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Designation : |
Director |
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Name : |
Mr. G. P. Gupta |
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Designation : |
Director |
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Name : |
Mr. M Fakruddin |
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Designation : |
Director (Corporate Affairs) |
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Name : |
Mr. K Umamaheswar |
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Designation : |
Managing Director |
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Name : |
Mr. D Shivamurti |
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Designation : |
Director (Finance) |
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Name : |
Mr. M |
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Designation : |
Director (Design &
Development |
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Name : |
Mr. Yogesh Kumar |
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Designation : |
Director |
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Name : |
Mr. R |
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Designation : |
Director |
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Name : |
Mr. R |
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Designation : |
Director |
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Name : |
Mr. M K Moitra |
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Designation : |
Director |
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Name : |
Mr. S Ravi |
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Designation : |
Director |
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Name : |
Mr. Raman Puri |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Ashok Tandon |
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Designation : |
Company Secretary |
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Name : |
Mr. Ranjan Chatterjee |
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Designation : |
Joint Secretary |
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Name : |
Mr. Anuradha Mitra |
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Designation : |
Joint Secretary |
BUSINESS DETAILS
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Line of Business : |
Design, Manufacture, Upgrade and Overhaul of Fighters, Trainers, Helicopters, Transport Aircraft Engines, Aironus and Systems Equipments for both military and civil application. |
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Brand Names : |
"HAL", "KIRAN", "HIT-34", "CHETAK", "HAWK" and "JAGUAR" |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Contract (30/90 days) and L/C terms |
GENERAL INFORMATION
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Customers : |
Manufacturers , Government Bodies and Others Domestic Customers:
v Indian Airforce
- 80% v Indian Coast
Guard v Indian Navy v Indian Army v Border Security v Defence Research
& Development v Indian Space
Research Organization v Air v Airports Authority
of v Jet Airways v Air v Bharat
Electronics v Ordinance
Factories v Oil &
Natural Gas Corporation Limited v Coal v Kudremukh Iron
Ore Company Limited v NALCO v Reliance
Industries v United Breweries v Government of
Karnataka v Government of
Andhra Pradesh v Government of v Government of
Rajasthan v Government of v Government of
Jammu & Kashmir v Government of
Uttar Pradesh International Customers
v Cosmic v Gorkha Airlines,
v Royal v Island Aviation
Services, v Royal Malaysian v v Corporate v Mistubishi Heavy
Industries, Japan v v Namibian v Peruvian v ELTA, v v Royal v Transworld
Aviation, UAE v Airbus
Industries, v Dassault
Aviation, v EADS, France v v APPH v BAE Systems, v v Dowty Aerospace v v Messier Dowty
Limited, v Rolls Royce Plc,
v Smiths
Industries, v Strongfield
Technologies, v The Boeing
Aircraft Company, v Honeywell
International, v
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No. of Employees : |
29668 |
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Bankers : |
v
State Bank of v
Punjab National Bank, City Branch, v
State Bank of v
Bank of v
Indian Bank, v
State Bank of v
State Bank of v State Bank of Travancore v State Bank of Bikaner & Jaipur |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Phillips & Company Chartered Accountants |
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Address : |
3, C. M. Road, Fraser Town, |
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Associates/Subsidiaries : |
v BAR Hal Software Private Limited v All Government of India Undertaking Companies |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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16000000 |
Equity shares |
Rs. 100 each |
Rs. 1600.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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12050000 |
Equity shares |
Rs. 100 each |
Rs. 1205.000 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 |
1205.000 |
1205.000 |
1205.000 |
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2] Reserves & Surplus |
30505.800 |
25080.600 |
21209.200 |
NETWORTH
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31710.800 |
26285.600 |
22414.200 |
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LOAN FUNDS |
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1] Secured Loans |
3610.200 |
3780.000 |
3650.200 |
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2] Unsecured Loans |
38.800 |
624.300 |
53.400 |
TOTAL
BORROWING
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3649.000 |
4404.300 |
3703.600 |
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GRAND TOTAL
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35359.800 |
30689.900 |
26117.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
27264.800 |
39019.900 |
12004.200 |
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Capital work-in-progress |
3311.700 |
0.000 |
774.600 |
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INVESTMENTS |
84.400 |
38.800 |
38.800 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
48097.400 |
2743.200 |
26634.800 |
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Sundry Debtors |
14041.300 |
0.000 |
13823.300 |
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Cash & Bank Balances |
111459.300 |
0.000 |
48410.100 |
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Loans & Advances |
42505.600 |
30957.300 |
23986.900 |
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Total
Current Assets |
216103.600 |
33700.500 |
112855.100 |
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Less : |
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Current Liabilities |
224444.100 |
38091.500 |
108236.500 |
Provisions
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4262.900 |
3977.800 |
5735.400 |
Total
Current Liabilities
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228707.000 |
42069.300 |
113971.900 |
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Net
Current Assets |
(12603.400) |
[8368.800] |
(1116.800) |
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MISCELLANEOUS EXPENSES |
17302.300 |
0.000 |
14417.000 |
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GRAND TOTAL
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35359.800 |
30689.900 |
26117.800 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
53415.000 |
45338.000 |
41649.700 |
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Other Income |
11972.900 |
8566.700 |
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Total Income |
65387.900 |
53904.700 |
41649.700 |
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Profit/(Loss) Before Tax |
11262.900 |
7575.300 |
5994.200 |
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Provision for Taxation |
3551.500 |
2564.700 |
1896.300 |
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Profit/(Loss) After Tax |
7711.400 |
5010.6004 |
4097.900 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
1292.300 |
1028.200 |
1334.800 |
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Administrative Expenses |
1993.400 |
4695.500 |
5456.600 |
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Raw Material Consumed |
42124.700 |
34802.000 |
22758.300 |
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Salaries, Wages, Bonus, etc. |
8361.900 |
8080.000 |
7726.900 |
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Interest |
1144.500 |
2081.700 |
2626.900 |
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Power & Fuel |
1185.600 |
1098.200 |
1075.400 |
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Depreciation & Amortization |
773.100 |
651.600 |
572.000 |
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Total Expenditure |
56875.500 |
52437.200 |
41550.900 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.13 |
0.15 |
0.18 |
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Long Term Debt-Equity Ratio |
0.13 |
0.15 |
0.18 |
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Current Ratio |
0.95 |
0.96 |
1.02 |
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TURNOVER RATIOS |
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Fixed Assets Ratio |
1.65 |
1.89 |
2.17 |
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Inventory |
1.28 |
1.47 |
1.47 |
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Debtors |
4.11 |
3.52 |
2.56 |
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Interest Cover Ratio |
10.84 |
4.64 |
3.28 |
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Operating Profit Ratio |
24.68 |
22.74 |
24.19 |
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Profit Before Interest And Tax Margin (%) |
23.23 |
21.30 |
22.69 |
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Cash Profit Margin (%) |
15.88 |
12.49 |
12.29 |
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Adjusted Net Profit Margin (%) |
14.44 |
11.05 |
10.78 |
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Return On Capital Employed (%) |
80.84 |
79.35 |
69.70 |
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Return On Net Worth (%) |
26.59 |
20.58 |
19.64 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was incorporated on 1st October, 1964 at
The history of the Indian Aircraft Industry can be traced to
the founding of Hindustan Aircraft Limited at
Today HAL has got 16 production units and 9 research and
design centres spread out in seven different locations in
HAL has engaged & succeeded in number of R & D programs for both the military and civil aviation sectors. Substantial progress has been made in the current projects like Dhruv -Advanced Light Helicopter (ALH), Tejas-Light Combat Aircraft (LCA), Intermediate Jet Trainer (IJT) and various military and civil upgrades. The deliveries of Dhruv were affected to Indian Army, Navy, Air Force and Coast Guard in March 2002, in its first year of production which is a unique achievement.
HAL has played a significant role for
HAL has also two joint venture companies, BAeHAL Software Limited and Indo- Russian Aviation Limited (IRAL). Apart from the two, other major diversification projects are Industrial Marine Gas turbine and Airport Services. Several co-production and joint Ventures with international participation are under consideration.
HAL's supplies / services are mainly to Indian Defence Services, Coast Guard and Border Security Force. Transport aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness.
HAL, has won several International & National Awards for achievements in R&D, Technology, managerial performance, exports, energy conservation, quality and fulfillment of social responsibilities. M/S Global Rating, United Kingdom in conjunction with The International Information and Marketing Center (IIMC) has awarded the “INTERNATIONAL GOLD MEDAL AWARD” AT THE INTERNATIONAL SUMMIT (GLOBAL RATING LEADERS 2003) LONDON, UK to M/s. Hindustan Aeronautics Limited for Corporate Achievement in Quality and Efficiency.
HAL was also presented the INTERNATIONAL “ARCH OF EUROPE” AWARD IN GOLD CATEGORY in recognition for its commitment to Quality, Leadership, technology & Innovation. At National level, HAL won the top award instituted- by SCOPE (Standing Conference of Public Enterprises) -The "GOLD TROPHY" for excellence in Public Sector Management.
The Company scaled new heights in the financial year 2002-2003 with a turn over of Rs. 31200 millions and export of Rs. 1038.900 millions.
Subject is engaged in to carry on the business as design, manufacture, upgrade and overhaul of fighters, trainers, helicopters, transport aircraft engines, aironus and systems equipments for both military and civil application.
It is engaged in design and development of fixed and rotary wing aircraft, engines, avionics and accessories. It is also engaged in manufacturing, maintaining, repairing and overhauling of fighter, transport and trainer aircraft, helicopters, aero engines, avionics, accessories and ground support equipments. It is also engaged in manufacturing of structural components for satellite and launch vehicles, software development for aerospace applications and design consultancy.
The company has a full-fledged design and development organization consisting of: --
v Aircraft Design Bureau
v Helicopter Design Bureau
v Engine Design Bureau
v Avionics Design Bureau
v Accessories Design Bureau
The company is also engaged in manufacturing of gas turbine engine and providing repairing and maintenance service. It mainly builds aircrafts for the defence sector.
The corporate office of the company is located at
PERFORMANCE
HIGHLIGHTS
Continuing with its steady growth and good performance, the Company
recorded an all-time-high turnover of Rs.53415.000 Millions in 2005-06, an
increase of 17.81% over 2004-05. The Value of Production grew by 18.69% to
Rs.59166.200 Millions. The Net Worth of the Company has gone up from
Rs.8820.700 Millions in 2004-05 to Rs.14408.500 Millions in 2005-06 registering
an increase of 63.34%.
FINANCE
The significant improvement in the financial performance of the Company
was due to improved production and sales volume, better fund management,
rationalization of manpower and cost control measures.
The debt-equity ratio declined from 0.14 in 2004-05 to 0.12 in 2005-06.
The thrust on reduction in borrowings continued besides reduction in net
interest charge through prudent cash management. Cash and bank balances
including short-term deposits at the year-end stood at Rs.111459.300 Millions
as against Rs.74796.000 Millions at the end of last year.
The Company maintained the highest credit rating for short-term as well
as long-term debt programmes from ICRA (Investment Information & Credit
Rating Agency) and CRISIL (Credit Rating Information Services of India
Limited).
Significant financial ratios are given below: (Percentage) 2005-06
2004-05
IMPORTANT ACHIEVEMENTS
The performance during the year under review was highly satisfactory. The
following were the important achievements:
Manufacture of aircraft and helicopters was completed which includes
SU-30 MKI aircraft, DO-228 aircraft, Dhruv (ALH) and Lakshya (PTA)
Initial Operational Clearance (IOC) was obtained for the Jaguar Navwass
and MiG-27M upgrade programs during the year
Series Upgrade on aircraft was completed on MiG-21 BIS, MiG-27M, Jaguar Navwass
and Avro aircraft
The Jaguar Strike Aircraft production line was revived and the current
batch of aircraft is being produced to the DARIN-II standard with modern
avionics and weapon delivery systems
Facilities were set up for the manufacture of complete integrated strap on
booster (L-40 stage) for GSLV programme and the first integrated L-40 stage was
handed over to ISRO
Design and installation of Adour Engine Test Beds at Ambala and
Repair / Overhaul facility for ALH engine TM 333-2B2 has been established at Engine
Division. These facilities include an indigenously developed Test Bed. This
Test Bed will also be utilized for testing of the higher-powered Shakti engine
to be installed on Army and IAF helicopters from 2007-08.
PERFORMANCE AGAINST MoU
Performance of HAL for the year 2004-05 has been rated as 'Excellent' in
terms of the Memorandum of Understanding (MoU) signed with the Government of
India. Though the rating for the year 2005-06 is under evaluation, as per
initial assessment, the performance of the Company would be adjudged as
'Excellent'.
ORDER BOOK POSITION
The order book position of the Company represents a healthy scenario,
as several projects / programmes such as SU-30 MKI, HAWK, Jaguar Strike, LCA,
IJT, ALH are under various stages of implementation. The Company has booked
orders worth Rs.170260.000 Millions during the year 2005-06 and the order book
position as on 1st April 2006 stood at Rs. 249800.000 Millions. Notwithstanding
the orders from the Defence sector, the Company has drawn up long term plans to
tap civil and export markets.
INTERMEDIATE
JET TRAINER - IJT
Development of IJT was taken up by the Company for replacing the ageing
fleet of Kiran for Stage-II training. The aircraft offers a better performance
and manoeuvrability with lower operating cost, higher armament carrying
capability and modern system, besides state-of-the-art avionics and cockpit
instrumentation.
The Company further progressed flight tests on two prototypes of IJT
during the year under review. The assessment of Control Forces, Anti-skid
Braking System, Integrated Avionics Suite and other parameter identifications
were carried out during the Ground / Flight Tests. Limited Series Production
(LSP) of IJT has been launched and a contract has been signed with the IAF in
this regard.
A contract for development of AL-55I Engine which was identified as the
engine for the production-version of IJT was concluded with the Russians in
June 2005. An Inter Governmental Agreement for the licensed manufacture of this
engine by HAL was signed in August 2005.
LIGHT COMBAT AIRCRAFT
(LCA)-TEJAS
Development and production of LCA, a lightweight, highly agile,
multi-role supersonic fighter progressed satisfactorily during the year. A
number of developmental test flights on two Technology Demonstrators and two
Prototypes were carried out to evaluate the flight characteristic and system
performance.
Production of the Limited Series Aircraft progressed and the structural
assembly and equipping of the first aircraft was completed during the year.
Coupling of the fuselages for the second aircraft has also been completed. A
contract for the supply of LCA to the IAF was signed in March 2006.
Design activities of LCA Naval and Trainer variants are progressing. The
trainer variant prototype is expected to fly in 2007.
WEAPON SYSTEM INTEGRATION (WSI) OF
ALH
WSI of ALH with customized systems for the Navy, Army and Air Force
progressed satisfactorily. The helicopter will have a pilot-friendly glass cockpit
and automatic flight control system in addition to the specific armed role
equipment. The version for the Army will support anti-tank, close air support
roles, air-to-air Missiles (among others) while for the Navy it will be
integrated for anti-submarine warfare roles and anti-
surface vessel warfare.
The Company has successfully completed the trials for the anti-submarine
warfare role, torpedo / depth charges release, radar and electronic support
measures. The fitment of Integrated Architecture and Display System (IADS) on
the helicopter was completed and flight tests were carried out during the year.
Deep sea trials with ships and submarines are progressing.
LIGHT COMBAT HELICOPTER
(LCH)
The Company has launched a new project for design and development of LCH
to meet the IAF's requirement of a combat helicopter. The Board of Directors
has accorded approval for launching the development work by funding 10% of the
proposed development cost. Design work on configuration and overall geometry studies,
landing gear, cockpit layout, weapon configurations have been completed.
SHAKTI ENGINE FOR ALH
Development of Shakti Engine in collaboration with
ON-GOING PROJECTS
SU-30 MKI Aircraft
Production of aircraft continued during the year with the second batch of
aircraft being assembled and delivered to the IAF from equipped fuselage and
wings received from
Jaguar Aircraft
Production of Jaguar strike aircraft in the Navwass upgrade standard was
taken up and the first batch of aircraft would be delivered shortly to the IAF.
Jaguars currently being produced have modern avionics and weapon delivery
systems. The Company took the challenge to produce the aircraft concurrently
with the integration work of new systems on the aircraft. Developmental flights
for certification of these systems also progressed during the year and final
operation certification is expected to be completed in 2006.
HAWK - Advanced Jet Trainer
Delivery of HAWK aircraft produced at HAL would commence from 2007-08.
Setting up of facilities for the production program progressed satisfactorily
during the year. Technical assistance from the licensor and training of
personnel in
Dhruv - Advanced Light
Helicopter
Production target for the year under review was achieved though the
flight testing of helicopters was withdrawn as a precautionary measure after an
incident of tail rotor failure on one helicopter. Extensive analysis and tests
were carried out for identifying the cause of failure on the tail rotor blade.
Corrective steps like manufacturing process and quality improvements, improved
Tail Gear Box housing, introduction of tail rotor vibration monitoring system
have been introduced to avoid such incidents in future. Steps were also
initiated to replace the tail rotors on all helicopters with new blades
produced as per the improved manufacturing process. Modifications on the helicopter
were also carried out to reduce the vibration levels as required by the
customers.
Upgrade Programs
Upgrade work on the fleet of MiG-21BIS, MiG-27M, Jaguar (Navwass
version), Avro aircraft were carried out. Initial Operation Clearance was obtained
for the indigenously upgraded Jaguar and MiG-27M aircraft. Design and
development work on the upgrade of Sea Harrier progressed during the year and
the critical design review was completed. Integration of systems, flight tests
and certification for upgrade of Sea Harrier will be completed in 2007. Flight
tests on the re-engined Chetak helicopter also progressed satisfactorily during
the year with completion of hot-weather and high altitude flight-testing.
Support was also provided for integrating modern equipment on Mi-17
helicopters.
BUSINESS DEVELOPMENT
INITIATIVES
Indian Multi-Role Helicopter
(IMRH)
The Company has identified the design, development and manufacture of a
10 Ton class Multi-Role Helicopter for meeting the requirements of the Defence
Services as a major business opportunity. A decision has been taken to
co-develop and co-produce IMRH in partnership with a reputed OEM of this class
of Helicopters. Process to identify/select a reputed OEM has been
initiated.
The Company has also submitted a joint bid along with M/s
Multi-Role Transport Aircraft
(MRTA)
The Company had signed a Memorandum of Understanding with the Russians
for co-design / development and co-production of MRTA in 15-20 Ton cargo
capacity. The Company along with the Russians has finalized the Project Report
based on the final Air Staff Requirement (ASR) of both the Indian and Russian
Air Forces. The Indian Air Force has indicated a firm requirement of forty-five
aircraft. The Project would be launched on execution of an Inter Governmental
Agreement (IGA) confirming the firm requirement of 100 aircraft by the
Russians.
INDIGENISATION
During the year, 4098 new items were indigenized against the plan of 4003
items, resulting in an anticipated FE savings of Rs. 27.12 Crores per annum and
cost savings of Rs.10.71 Crores per annum at current price level. Significant
items indigenized include circular relay and control rod tube of ALH, low
pressure turbine disc and front cone of Adour engine, thermocouple conditioning
unit of Jaguar, deflector and clutch plate of RD-33 engine, heavy forging for
by-pass vane of R-25 engine, case and cone assembly of Garrett engine, Speed
Governor of Artouste Engine.
EXPORTS AND PARTICIPATION IN AIR
SHOWS
During 2005-06, export orders worth Rs. 2493.300 Millions had been booked
in diverse product areas. The Company has secured several prestigious orders,
each one of which signifies a major step towards consolidation in international
aviation business. Major orders booked during the year are:-
Orders worth Rs.864.000 Millions from
Orders worth Rs.177.600 Millions from
Orders worth Rs. 83.200 Millions for design and structural analysis from
Hyde Group & Magellan Aerospace,
Orders worth Rs. 74.800 Millions from
- Contract has been signed with Rolls Royce as a Tier-I supplier, for
supply of 47 items of semi-finished Steel Rolled Rings for a 5-year period
starting Jan-06. An average business of Rs. 100.000 Millions per annum is
expected from 2006-07.
The Company has achieved an export turnover of Rs.1861.900 Millions for
the year 2005-06, as compared to Rs.1500.500 Millions of the previous
year.
Export supplies made during the year include passenger doors for A-320
aircraft to Airbus, Up-lock box assembly for B-777 aircraft to Boeing, repair /
overhaul of Dart engines for
In order to develop an export market of Dhruv, the Company has initiated
the process for International Certification and Type Certification validation
of Chilean and Malaysian civil aviation authorities.
The Company has participated in Paris 05, MAKS 05 (
JOINT VENTURES
A new Joint Venture Company (JVC) with
The two Joint Venture Companies viz., BAeHAL Software Limited and Indo
Russian Aviation Limited have performed satisfactorily during the year
2005-06.
The Directors have approved a proposal to set up a Joint Venture
Company with M/s Samtel,
QUALITY AND SAFETY
The Quality Management System of Divisions has been upgraded to
ISO-9001-2000 Standards. The Divisions have also maintained the validity of
Quality Management System approvals from International Aerospace Companies like
M/s. Boeing, M/s. Airbus, M/s. BAe Systems and M/s. Israel Aircraft Industries.
Fourteen Divisions have implemented requirements of ISO 14001 - 1996
HAL continues to maintain the enthusiasm of the Quality
Circles to achieve increased employee participation in problem solving efforts.
21 Quality Circles from HAL Divisions took part in the 19th National Convention
of Quality Circles (NCQC - 2005), held in Ernakulam,
The Quality Circles, one each from Engine Division, Koraput and ARDC,
AWARDS AND
RECOGNITIONS
Company Level Awards
The Company has received the following 'Raksha Mantri's Awards' for
Excellence for the year 2003-04 :
(i) Institutional Awards:
(a) Excellence in Performance (b) Best Performance in Exports
(ii) Group / Individual Awards:
(a) Import Substitution:
- Software Development for Mission Computer Aircraft Research Design
Centre (ARDC),
(b ) Innovation:
- Re-engining of Cheetah Helicopter with TM-333-2M2 engine, Rotary Wing
Research & Design Centre (RWR&DC)
ARDC,
In recognition of the significant contribution made for the development
of Mission Computer for Jaguar Navwass upgrades, Shri P.L.Vaishampayan, Chief
Designer, ARDC, has been conferred with the 'R&D Innovation Award-2005' by
the Society of Defence Technologists (SODET).
VIGILANCE
While prevention and detection of corruption is the primary function of
the Vigilance Department, stress is laid on preventive vigilance with a view to
aiding and assisting the Management in improving systems and procedures, so as
to ensure transparency in decision making. A number of surprise checks, regular
inspections and system studies were conducted during the year and the feed-
back furnished to the concerned authorities.
With a view to bring awareness among all sections of Company employees,
the Vigilance Department has brought out two volumes of the vigilance magazine,
MARG DHARSHAN' during the year, which have published thought-provoking
articles, latest guidelines of CVC, Vigilance events etc. Vigilance awareness
week was observed by all the Divisions of the Company from 1st November 2005 to
6th November 2005. As directed by CVC, Customer Education' programme was
organized in which all efforts were made to sensitize vendors / suppliers /
contractors etc. about the evil effects of corruption.
CORPORATE GOVERNANCE
The Company is committed to attain the highest standards of Corporate Governance.
The philosophy of the Company in respect of Corporate Governance is to ensure
transparency in all its operations, make appropriate disclosures, comply with
the laws, maintain ethical standards and take care of the interest of all the
stakeholders.
The Board of Directors headed by an executive Chairman and consisting of
Directors with a wide range of experience and competencies, manages the affairs
of the Company. The Board met on ten occasions during the year under review.
The Directors receive regular information on the Company's operational and
financial performance. The 42nd Annual General Meeting was held on 9th
September 2005.
Press Releases
Rolls-Royce and Hindustan Aeronautics Limited Celebrate
50 Years Of Partnership
One of the longest relationships in aerospace, between Rolls-Royce and Hindustan Aeronautics Limited (HAL), today celebrated its 50th anniversary with a ceremony at the Farnborough International Airshow.
The two companies first came together in 1956 with an engine production licence and since then have combined their skills and technology to achieve many successes, including HAL becoming a member of the Rolls-Royce global supply chain in 2003.
While Rolls-Royce looks forward to its future potential in
Speaking at the Farnborough today, Rolls-Royce Chief
Executive Sir John Rose said: “
“They now look forward to expanding this partnership that
will include co-production of the Adour engines for
HAL Chairman Ashok Baweja said: “When HAL first built the Orpheus 50 years ago, little did they think
that they would still be overhauling and flying this engine in the Indian Air
Force today!
“HAL is proud to
have built 750 Orpheus 701 and 703 engines and, so far, overhauled 2618. With the
Kiran MkII expected to continue in service until replaced by HAL’s new
Intermediate Jet Trainer, the Orpheus still has a lot of life ahead.
“They in HAL, also
look forward to a continuing successful partnership with Rolls-Royce for the
HAL also became a contributor to the Rolls-Royce civil
aviation business in 2003 when it started supplying ring forgings to
Rolls-Royce for its
Although the Orpheus engine licence production agreement was
signed in 1956, HAL had already entered the jet age with assembly of
Goblin-powered de Havilland Vampires in 1952. But it was the establishment of
the Engine Division at
Since then, other agreements covered a range of civil and military aero engines. Indian Air Force Jaguars, used as deep penetration strike aircraft, are powered by the Rolls-Royce Turbomeca Adour engine which HAL has been licence manufacturing since 1978.
This engine is a proven winner and is operated by over 20
military forces worldwide accumulating over seven million flying hours to date.
Flight experience with the
Under a new licence agreement, the Adour 871 will be
manufactured by HAL and will power the Hawk Advanced Jet Trainer for
HAL is also involved in the repair and overhaul of the
Rolls-Royce Avon, Dart, Adour and Gnome aero engines as well as
Rolls-Royce engines including the Avon, Viper, Dart,
Pegasus, Model 250, Gnome H1400 for aircraft like the
The relationship with HAL is at the heart of the
long-standing and successful history Rolls-Royce has with
HAL – IAI cooperation in Aero Structures
Hindustan Aeronautics Limited (HAL) has been recently selected by Israel Aircraft Industries (IAI) Ltd. for supply of major Aero Structure Assembly including tooling, design and manufacture. These Aero Structures work package, valued in excess of US $ 30 million will be supplied over next 8 years. HAL will establish a dedicated manufacturing and assembly line to execute the order. This cooperation will play a major role in further development of bilateral business relations between IAI and HAL.
HAL HANDS OVER DIVIDEND CHEQUE
HAL Chairman Mr.
Ashok K. Baweja hands over company's dividend cheque to Defence
Minister Mr. Pranab Mukherjee in
The Hindustan Aeronautics Limited (HAL) has handed over a final dividend cheque for Rs 640.6 millions for the year 2004-2005 to the government. This is in addition to the interim dividend of Rs 361.5 millions paid in February 2005, and the total dividend for the year works out to Rs 1002.1 millions (83.16 per cent of the paid-up capital).
HAL Chairman Mr. Ashok K. Baweja handed over the cheque to
Defence Minister Mr. Pranab Mukherjee in
The company has achieved a total sale of Rs 4,534 millions during the fiscal year and earned Rs 7570 millions as profit before tax (PBT).
HAL gets
new Director
Mr M.S. Nadgir has been appointed as the Director for Design
and Development at Hindustan Aeronautcis Limited (HAL),
Prior to his appointment, Mr Nadgir was heading the Aircraft
Research and Development Centre (ARDC),
A product of of IIT (Mumbai), Mr Nadgir has played a key role in a series of MiG upgradation programmes and life-extensions of SU-30K, AN-32,IL-76, IL-38 and TU-142.
Honour
for Dr Mohan Rao, HAL Medical Advisor
Dr P. Mohan Rao, eminent physician and cardiologist, has been conferred with the ‘Lifetime Achievement Award’ at the 3rd Annual Conference of Cardiological Society of India (Karnataka Chapter) and Karnataka Association of Cardiovascular and Thoracic Surgeons held in Mangalore recently. He received the award from Deputy Chief Minister Mr M. P. Prakash.
Dr Rao is currently the Director of M.V.J. Medical College
and Medical Advisor to Hindustan Aeronautics Limited (HAL), Titan Industries
and The International School Bangalore (TISB). He is also the recipient of the
Prime Minister’s Award for outstanding service in the field of ‘Family Planning
and Welfare’ during his tenure as the Chief of Medical Services at the
Dr Rao has the distinction of heading several academic and scientific societies including: Cardiological Society of India (Bangalore Chapter), Association of Physicians of India (Karnataka Chapter), Indian Association of Occupation Health (Karnataka Chapter), Indian Medical Association (South-East Branch) and trustee of Medical Education and Research Trust (Karnataka).
Press Release
HAL BAGS TOP EXPORTER TROPHY & AWARD
Shri M Fakruddin,
Director (Corporate Planning & Marketing), receiving the EEPC
award from Shri Rakesh Shah, Chairman, EEPC.
Hindustan Aeronautics Limited, which is a leading Defence
Public Sector Undertaking of the country, received the “ENGINEERING EXPORT
PROMOTION COUNCIL (EEPC) SOUTHERN REGION, TROPHY & AWARD” for the years
2001-02 and 2002-03. The Top Exports Award/Trophy is instituted by the EEPC,
HAL’s DHRUV FOR
TSUNAMI RELIEF OPERATION
As the grave tragedy of tsunami brought untold misery to
vast populace of coastal
Hindustan Aeronautics Limited – the Indian Aviation leader - came forward and
donated Rs. 34.000 millions to the Prime Minister’s Relief Fund. The cheque was
handed over by Shri Ashok K Baweja, Chairman, HAL to the Prime Minister on the
1st of Jan 05, as a token of HAL’s commitment to the nation.
The commitment of HAL also expresses itself in another unique way. For the
first time in the history of Indian Aviation, Indian made helicopters
participated in relief operations. Hitherto in their history, no Indian
aircraft or helicopter, designed and developed indigenously, has contributed to
national relief work.
Dhruv, the Advanced Light Helicopter, indigenously designed & developed by
HAL, has once again established its excellent operational capabilities. These
helicopters are being extensively deployed by Indian Army & Coast Guard in
Nagapatinam, Kumbakonam & Chennai for tsunami relief operations.
The multi-role Dhruv helicopters are flying various missions to bring relief to
the victims of the tragedy by moving medical teams, dropping medicines &
food besides undertaking extensive aerial survey over the affected areas. This
has reinforced the credibility of Dhruvs in the utility version.
The Dhruvs, through their wide range of civil applications, are providing
enormous support to meet the mammoth challenge of tsunami faced by the nation.
Hindustan Aeronautics Limited is the largest PSU under
Department of Defence Production, MoD, with its Corporate Office at
HAL HONOURED WITH MOU
AWARD BY MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Hindustan Aeronautics Limited, which is the largest Public
Sector Enterprise under Department of Defence Production, Ministry of Defence,
has been honoured with the MoU Award for “Excellence in Performance” for the
year 2002-03. The award in the form of ‘Prime Minister’s Shield’ was
presented to Shri N.R Mohanty, Chairman, HAL by Hon’ble Prime
Minister, Dr Manmohan Singh in
The MoU Award is given only to the Top 10 enterprises whose performance is rated as ‘Excellent’ on the basis of their performance against the MoU signed with the Administrative Ministry. HAL has been rated as ‘EXCELLENT’ with the highest possible score for its MoU performance in the year 2002-03.
HAL BAGS GOLDEN
PEACOCK INNOVATION AWARD - 2004-10-07
Hindustan Aeronautics Limited (HAL), has bagged the
prestigious Golden Peacock Innovation Award-2004 for the innovative development
work in re-engining of Cheetah Helicopter with a modern light weight, fuel
efficient engine. With a view to create competitiveness, Golden Peacock Award
for Innovation is one of the several awards instituted by the Institute of
Directors (IOD). Bestowed annually, the award is designed to encourage total
involvement in innovation in organizations. The award was presented to Mr. NR
Mohanty, Chairman HAL by Union Minister of Science & Technology and Ocean
Development, Mr. Kapil Sibal in
HAL SIGNS MOU WITH
INDIAN NAVY
Hindustan Aeronautics Limited (HAL) and Indian Navy signed a
Memorandum of Understanding (MoU) at
This major milestone in creating an indigenous state-of-art
generic repair and full overhaul facility has been made possible by the
foresight and concerted efforts at the level of the Deputy Chief of Naval Staff
and Chairman, HAL. Their efforts led to enabling the conclusion of a contract
for Transfer of Technology from Westland Helicopters Limited,
The said project costing around Rs 7168 millions will go a long way in enhancing the fleet serviceability of Seaking Helicopters and reducing the down time. The facility is expected to be fully functional by end of the current financial year. As a result of this, Indian Navy will have an uninterrupted Repair / full Overhaul and spares support to enhance its reliability and fleet readiness at all times. This project offers an opportunity for the country to become self reliant in service and full overhaul of Seeking Transmission Assemblies and serves as a platform in achieving self reliance on other helicopters of foreign origin. The project also provides an opportunity to attain exposure to new technologies and promotion of local vendors through indigenization.
DISTRIBUTION OF BEST
PERFORMING DIVISION AWARDS 2002-03 - 10TH MAY 2004
The company is a premier aerospace industry in the south east Asia. It is a vertically integrated organization involved in Design & Development, Manufacturing, Repair and Overhaul of Fighter, Trainer & Transport Aircraft, Helicopters, Aero-Engines, Avionics & Accessories. Besides this, HAL also manufactures complex structures for Aerospace programmes.
The company strives for a continuous improvement and growth in Research & Development and other high tech manufacturing areas thereby aiming to become a $1b company by end of 2004-05. In order to have an all-round growth in the company, a scheme has been launched in 2001-02 to promote healthy competition among all the Divisions. The performance of Divisions in various parameters like Turnover, Export, Profit, Customer Services & Quality Assurance etc, is evaluated and the Divisions performing best against these parameters are awarded. The Division achieving best performance in maximum number of parameters is adjudged the best performing Division.
I. Turnover per Employee
Ii. Profit before Tax per employee
Iii. Order Booking per employee
The other Divisions who got individual awards are Aircraft & Overhaul Divisions of Bangalore Complex (BC), Engine Division, Koraput & Aircraft Division, and Nasik of MiG Complex.
Helicopter Division where “Best Performance is the way of life” is involved in Manufacture, Repair & Overhaul of Helicopters. The Division has gained more prominence after introduction of its star product “DHRUV” – The Advanced Light Helicopter. Dhruv, an indigenously designed & developed high tech helicopter is being manufactured for the first time in the country by Helicopter Division since 2001-02. As on date, a total of 31 Dhruv Helicopters have been produced for various defence customers’ viz. Indian Army, Navy, Air Force & Coast Guard. Two helicopters have been sold to Royal Nepalese Army. The production of Civil certified Dhruv has also commenced to enter into the Global Civil market. Besides this the proven product ‘Cheetah’ helicopter has been modified into a formidable force multiplier light attack helicopter ‘Lancer’. Cheetah’s high altitude capabilities have been further enhanced by re-engining it with a higher performance Dhruv engine.
Besides this, the Helicopter Division has played a major role in upgrading & supporting MI-17 helicopter of Indian Air Force and Kamov & Seaking helicopters of Indian Navy.
In addition to the above manufacturing and R&D programmes, the Rotary Wing Academy of Helicopter Division imparts the basic helicopter pilot training.
The company’s Helicopter Division and Design Complex has
carved it’s presence as an “Integrated Helicopter facility” to cater to all
helicopter needs in
Awards
v Some of the prestigious awards received by HAL during the year under review are :
v
“MoU AWARD” instituted by Ministry of Heavy
Industries & Public Enterprises, Government of
v
Gold Medal” for Quality and Efficiency from
Global Rating Limited,
v “IIIE Enterprise Excellence Award”, instituted by the Indian Institute of Industrial Engineering in the Manufacturing Group (Engineering) for financial and operational strength.
v
“Golden Peacock Award for Innovation-2004” by
v “Engineering Export Promotion Council (EEPC) Award” for the 10th consecutive year.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.33 |
|
|
1 |
Rs. 82.63 |
|
Euro |
1 |
Rs. 55.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|