MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
ELECON
ENGINEERING COMPANY LIMITED |
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Registered Office : |
Post |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
28.11.1961 |
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Com. Reg. No.: |
04-01082 |
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CIN No.: [Company
Identification No.] |
L29259GJ1960PLC001082 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDE00200E |
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PAN No.: [Permanent
Account No.] |
AAACE4644D |
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Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and
Selling of Material Handling Equipments and Reduction Gears. |
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 4000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow by +30 days |
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Litigation : |
Clear |
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Comments : |
Subject is an old
engineering company and it’s profit margin is under severe pressure. Its payments are
reported as slow but correct. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office : |
Post |
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Tel. No.: |
91–2692–237016/236521/236590 |
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Fax No.: |
91–2692–236457/236527 |
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E-Mail : |
mhe.mkt@gnahd-mhe.globalnet.ems.vsnl.net.in |
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Website : |
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Overseas
Offices : |
Elecon Elecon Australia Pty. Limited Tel: 2 9542 2955 (National) Elecon Africa Pty. Limited Cell : +27 82900 6829 ELECON MIDDLE EAST FZCO Fax: +971 4 3510461 |
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Factory : |
Material Handling Division
(MHE-Division) Gear Division Wind Mill
Division |
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Branches : |
Mr. A. K Bhattacharya/Mr. J. K. Angopadhya 68, Phone : 91-33-24761861/24760876/24760904/24760926 Mr. J. K. Paul Mr. J. Sengupta Besides Office of Tubes & Structural, Phone : 91-326-2306283/2302320 Mr. S. C. Das Baradwari Enclave, Gangotri Complex, Cottage No. 3, Sakchi Mr. Bimal Oza / Mr. Kalpesh Shah Shree Krishna Centre, 12, 2nd Floor, Near Mithakhali
Six Roads, Mr. D. N. Mehta 1st Floor, Apeejay
House, Phone :
91-22-22821315/22820725/22821365/22870792/
22815693/22815695 Mr. Amar Deshpande 501, Ketki Building, 3rd Floor, 9, Sadashiv Peth,
Near Alka Theatre, PUNE – 411030, Maharashtra, India Mr. M. B. Desai
Mr. Bhadresh
M. Joshi 321, Blue Diamond Comm. Complex, 3rd Floor, Near
"VUDA" office Mr. MM Nanda 418, 4th Floor, Mr. S. Rajamani East Coast Center, 3rd Floor, 553, Mount Road, Post
Box No. 1497 srajamani@mademtici.elecon.com
Mr. R. Haridoss AA3, 1st Floor, Ca’ Imperial, Court Apartments, 33/1,
1st Floor, G-4/14, Phone : 91-80-22260219/22250082 Mr. K.
Rajgopalan / Mr. M. Venkatesan Phone : 91-40-27844748/27845250/27846984 Mr. E. Gunashekhar 101/104, ‘Shree Mohini’ Complex, 1st Floor, 345,
Kingsway Phone : 91-712-2540771/2531601 Mr. R. Bangre Vyapar Vihar, Plot No. 113, Zone 1, Ring Road, Bilaspur 495 001. Phone : 91-7752-247347/228922/224122 |
DIRECTORS
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Name : |
Shri
Prayasvin B. Patel |
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Designation : |
Chairman & Managing Director |
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Date of
Appointment : |
47 years |
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Qualification |
B. E. (Mech.) M. B. A. |
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Date of Birth/Age |
1/7/1983 |
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Experience : |
29 years |
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Name : |
Shri Pradip M. Patel |
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Designation : |
Director |
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Name : |
Shri Upendra M. Patel |
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Designation : |
Director |
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Name : |
Shri Chirayu R. Amin |
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Designation : |
Director |
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Name : |
Shri Ashok J. Patel |
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Designation : |
Director |
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Name : |
Shri Hasmukhlal S. Parikh |
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Designation : |
Director |
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Name : |
Dr. Amritlal C. Shah |
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Designation : |
Director |
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Name : |
Shri Nanalal D. Shah |
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Designation : |
ICICI Nominee |
KEY EXECUTIVES
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Name : |
Shri Nayan M. Adhyaru |
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Designation : |
Company Secretary |
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Name : |
Shri Hemendra C.
Shah |
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Designation : |
Chief Financial
Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
604340 |
1.95 |
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Bodies Corporate |
12432525 |
40.20 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
6376060 |
20.62 |
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Financial Institutions / Banks |
8270 |
0.03 |
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Foreign Institutional Investors |
1546198 |
5.00 |
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Trust |
5605 |
0.02 |
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Non-institutions |
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Bodies Corporate |
1413270 |
4.57 |
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Individuals |
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Individual shareholders holding nominal share capital up to Rs 0.100
Millions |
6317513 |
20.43 |
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Individual shareholders holding nominal share capital in
excess of Rs. 0.100 Millions |
1681405 |
5.44 |
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Any Other (specify) |
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Clearing Member |
28539 |
0.09 |
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Market Maker |
3499 |
0.01 |
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Non resident Individuals (Repatriable) |
176036 |
0.57 |
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Non resident Individuals (Non - repatriable) |
40477 |
0.13 |
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HUF |
289913 |
0.94 |
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Total |
30923650 |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Selling of Material Handling Equipments and Reduction Gears. |
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Products : |
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GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
2000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Thakorebhai-Shirish
Desai & Butala (Division of Thacker Butala Desai) Chartered Accountants |
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Joint Ventures
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Associates : |
Ř
Eimco
Elecon ( It was incorporated in the year 1974 and
was promoted by Environtech Corporation, Ř
VVN Manufacturing & Investa Limited
:- It is a listed company engaged in
Manufacturing Idler & Rollers, Job Work, Machining as well as Sales and
Service of Mining Equipment including spares Ř
PWH
Materials Handling Limited Ř
Power
Build Elecom Gears Limited Ř
Ringspann
Elecon ( Ř
Wizard
Fincap Limited Ř
Ringspann
Elecon ( Ř
Bipro
Investments and Trusts Private Limited Ř
B. I.
Investments Private Limited Ř
Devkishan
Investment Limited Ř
K. B.
Investments Limited Ř
Elecon
Information Technology Limited Ř
Emtici
Engineering Limited Ř
Prayas
Casting Limited Ř
VVN
Manufacturing and Invest Limited Ř
Western
Metal Caps Limited Ř
Speciality
Woodpack Private Limited Ř
Power
Build Limited Ř
Kirloskar
Power Build Elecon Gear Limited Ř
Akassish
Mechatronics Limited Ř
Wookpack
Limited Ř
Elecon
Ř
Elecon
Africa Pty. Limited Ř
Elecon
Australia Pty. Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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30000000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
5707783 |
Equity Shares |
Rs. 10/- each |
Rs. 57.078 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 |
57.078 |
56.474 |
56.474 |
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3] Reserves &
Surplus |
969.560 |
676.579 |
594.810 |
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NETWORTH
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1026.638 |
733.053 |
651.284 |
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LOAN FUNDS |
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1] Secured Loans |
1506.149 |
669.575 |
335.097 |
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2] Unsecured
Loans |
551.257 |
291.892 |
353.472 |
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TOTAL BORROWING
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2057.406 |
961.467 |
688.569 |
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DEFERRED TAX
LIABILITIES |
121.052 |
123.122 |
104.803 |
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TOTAL
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3205.096 |
1817.642 |
1444.656 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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952.170 |
620.504 |
455.575 |
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Capital work-in-progress
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0.000 |
0.000 |
0.000 |
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INVESTMENT
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62.866 |
56.453 |
57.607 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
5.289 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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Sundry Debtors
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Cash & Bank Balances
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4334.126
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2674.576
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1867.495 |
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Other Current Assets
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Loans & Advances
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Total Current Assets
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4334.126
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2674.576 |
1867.495 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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1539.185
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1016.915 |
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Provisions
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44.86
|
6.371 |
Total Current Liabilities
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2167.043
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1584.045 |
1023.286 |
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Net Current Assets
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2167.083
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1090.531
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844.209 |
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MISCELLANEOUS EXPENSES
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22.977 |
50.154 |
81.976 |
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TOTAL
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3205.096 |
1817.642 |
1444.656 |
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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 |
4507.738 |
2807.805 |
1643.051 |
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Other Income |
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Total Income |
4507.738 |
2807.805 |
1643.051 |
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Profit/(Loss) Before Tax |
409.778 |
174.091 |
21.471 |
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Provision for Taxation |
130.942 |
73.627 |
(0.224) |
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Profit/(Loss) After Tax |
278.836 |
100.383 |
21.695 |
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Earnings in Foreign Currency : |
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Total Earnings |
N.A. |
157.470 |
NA |
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Imports : |
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Total Imports |
N.A. |
609.664 |
NA |
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Expenditures : |
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Total Expenditure |
4062.396 |
2573.171 |
1621.579 |
QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 1st Quarter |
30.09.2006 2nd Quarter |
31.12.2006 3rd
Quarter |
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Sales Turnover |
945.700 |
1754.600 |
1682.400 |
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Other Income |
9.500 |
17.900 |
15.200 |
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Total Income |
955.200 |
1772.500 |
1697.600 |
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Total Expenditure |
810.500 |
1469.500 |
1392.100 |
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Operating Profit |
144.700 |
303.000 |
305.500 |
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Interest |
36.900 |
45.400 |
53.600 |
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Gross Profit |
107.800 |
257.600 |
251.900 |
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Depreciation |
26.800 |
28.900 |
32.800 |
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Tax |
20.600 |
60.000 |
68.800 |
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Reported PAT |
54.000 |
162.700 |
146.700 |
Notes
2006-06
Quarter 1
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (166.099)million
Consumption of Raw Materials Rs 782.592 million Staff Cost Rs 52.776 million
Other Expenditure Rs 135.508 million Tax Includes Provision for Current Tax Rs
19.980 million Deferred Tax Rs 6.465 million Fringe Benefit Tax Rs 0.583
million EPS is Basic Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 03 Complaints disposed off during the quarter 03
Complaints unresolved at the end of the quarter Nil 1. The aforesaid results
were reviewed by the audit committee at its meeting held on July 25, 2006 and
taken on record at the meeting of Board of Directors held on July 25, 2006. The
Statutory Auditors have carried out a Limited Review of above results. 2.
During the Quarter, Foreign Currency Convertible Bonds (FCCBs) aggregating to
US $ 7 million (against FCCB issue aggregating to US $ 9 million) have been
converted into 422611 Equity Share of Rs 10/- each at a conversion price of Rs
750/- per share, thereby increasing the paid up capital of the Company by Rs
4.226 million and share premium account by Rs 312.732 million upto June 30,
2006, FCCBs aggregating US$ 8 Million have been converted into 4,82,984 Equity
shares. 3. The diluted Earning Per Share has been computed after taking into
account the Impact of issue of US$ 9 million FCCBs carrying conversion right
into Equity Shares of Rs 750/- per share of Rs 10/- each at a exchange rate of
1 US $ - Rs 45.28 after December 20, 2005 but upto December 19, 2010 as per
As-20. 4. Accounting treatment for VAT credit on goods lying in stock at the
inception at the VAT scheme w. e. f. April 1, 2006 will be given during the
year in accordance with the Guidance note issued by ICAI. 5. Extra Ordinary
item Includes a. Amount written off an account of VRS and Gratuity: for the
Quarter Rs 5.744 million (Corresponding quarter of previous year Rs 5.937
million) for Previous year Rs 23.748 million. b. Fccb Issue Expenses: For the
Quarter NIL (Corresponding Quarter of Previous year: Nil) For previous year: Rs
11.816 millions (Net of Rs. 3.366 millions being Interest earned on FCCB Funds
held in the form of Deposits.) 6. The pervious year figures have been regrouped
/ recast wherever necessary.
2006-09
Quarter 2
1. The
aforesaid results were reviewed by the audit committee at its meeting held on
31.10.2006 and taken on record at the meeting of Board of Directors held on the
same date. The statutory auditors have carried out a limited review of above
results. 2. Information on investor complaints for quarter ended 30.09.2006 is
as under: Complaints as on July 1 2006-NIL Complaints received during the
quarter-14 Complaints solved during the quarter-14 Complaints pending as on
September 30 2006-NIL 3. The diluted earning per share has been computed after
taking into account the impact of issue of US$ 9 Million FCCBs, carry
conversion right into equity shares at Rs.750/- per share of Rs.10/- each at a
exchange rate of 1US$=Rs.45.28 after December 20 2005 but up to December 19
2010 as per AS-20. 4. According treatment for VAT credit on goods lying in
stock at the inception of the VAT scheme w. e. f April 2006 will be given
during the year in accordance with the guidance note issued by The Institute of
Chartered Accountants of India (ICAI). 5. ICAI has issued revised Accounting
Standard (AS)-15 on Employee Benefits effective from April 1 2006. Pending
final determination of liability in terms of the said AS for certain post
retirement benefit plan on adhoc provision of Rs. 2 millions has been made in
the current quarter in this respect on an estimated basis. 6. Extraordinary
items include : a) Amount written off on account of VRS and gratuity: For the
quarter 5.744 millions (Corresponding quarter of previous year Rs. 5.937
millions) For the half year 11.488 millions (Corresponding half year of
previous year Rs. 11.874 millions) for previous year Rs. 237.48 b) FCCB Issue
Expenses: For the quarter and half year-NIL (Corresponding and half year of
previous year-NIL) For previous year Rs. 11.816 millions (Net of Rs. 3.368
millions being interest earned on FCCB Funds held on the form of deposits). 7.
The equity shares of the company have been listed on National Stock Exchange of
India Limited with effect from September 29 2006. The market lot is 1 share.
The Stock code is 'Elecon'. 8. The equity shares of the company have been
sub-divided from Rs. 10 per share to Rs. 2 per share on October 26 2006. Due to
the same the number of equity shares have been increased from 6130394 shares of
Rs. 10/- each to 30651970 shares of Rs. 2/- each. 9. The previous years figures
have been regrouped wherever necessary.
200612 Quarter 3 –
EPS is Basic & Diluted 1) The aforesaid results were reviewed
by the audit committee at its meeting held on 29th January, 2007 and taken on
record at the meeting of Board of Directors held on the same date. The
Statutory Auditors have carried out a Limited Review of above results. 2)
Information on investor complaints for quarter ended 31st December, 2006 is as
under: - Complaints pending as on October 1, 2006 Nil - Complaints received
during the quarter 05 - Complaints solved during the quarter 05 - Complaints
pending as on December 31, 2006 Nil 3) The diluted Earning Per Share has been
computed after taking into account the impact of issue of US$ 9 Million Foreign
Currency Convertible Bonds (FCCBs), carrying conversion right into equity
shares at Rs. 750/- per share of Rs. 10/- each at a exchange rate of 1US$ = Rs.
45.28 after December 20, 2005 but upto December 19, 2010 as per AS-20. 4)
Accounting treatment for VAT credit on goods lying in stock at the inception of
the VAT scheme w.e.f April 1, 2006 will be given during the year in accordance
with the Guidance note issued by The Institute of Chartered Accounts of India
(ICAI). 5) ICAI has issued revised Accounting Standard (AS)-15 on Employee
Benefits effective from April 1, 2006. Pending final determination of liability
in terms of the said AS for certain post retirement benefit plan an adhoc
provision of Rs. 2.000 Millions has been made in the current quarter in this
respect on an estimated basis. 6) Extra Ordinary Items includes: a. Amount
written off on account of VRS and Gratuity : For the Quarter Rs. 5.743 Millions
(Corresponding Quarter of Previous year : Rs. 5.937 Millions). For the Nine
Months Rs. 17.231 Millions (Corresponding Nine Months of Previous year :
Rs.17.811 Millions) For previous year: Rs.23.748 Millions b. FCCB Issue
Expenses: For the Quarter & Nine Months - NIL. (Corresponding Quarter &
Nine Months of Previous year : NIL). For previous year :Rs. 11.816 Millions
(Net of Rs. 3.366 Millions being Interest earned on FCCB Funds held in the form
of Deposits.). 7) The Equity Shares of the Company have been sub-divided from
Rs.10 per share to Rs. 2 per share on October 26, 2006. Due to the same, the
number of equity shares have increased from 61,30,394 shares of Rs. 10/- each
to 3,06,51,970 shares of Rs.2/- each. 8) The Company has received notice on
January 4, 2007 for conversion of 900 FCCBs of US$ 1000 aggregating to US$0.9
Million into 271,680 equity shares of Rs. 2/- each and the same has been
alloted on January 5, 2007. 9) The Previous Year's figures have been regrouped
/ recast whereever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.72 |
1.19 |
0.98 |
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Long Term Debt
Equity Ratio |
0.69 |
0.62 |
0.64 |
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Current Ratio |
1.21 |
1.25 |
1.37 |
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TURNOVER RATIOS |
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Fixed Assets |
2.71 |
2.20 |
1.26 |
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Inventory |
3.58 |
3.31 |
2.63 |
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Debtors |
3.09 |
3.76 |
2.60 |
|
Interest Cover
Ratio |
3.25 |
2.88 |
1.63 |
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Operating Profit
Margin (%) |
13.51 |
12.27 |
12.15 |
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Profit Before
Interest and Tax Margin (%) |
11.65 |
9.95 |
7.98 |
|
Cash Profit
Margin (%) |
7.35 |
6.06 |
7.21 |
|
Adjusted Net
Profit Margin (%) |
5.49 |
3.74 |
3.04 |
|
Return on Capital
Employed (%) |
25.13 |
24.31 |
12.75 |
|
Return on Net
Worth (%) |
31.69 |
19.19 |
8.86 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 422.00/- |
|
Low |
Rs. 408.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company
originally established in Mumbai in the year 1951. It shifted the manufacturing
base to Vallabh Vidyanagar Near Anand,
The company
received government approval for its diversification in the manufacture of 1000
hydraulic fluid couplings per annum within its licensed capacity of helical
gears in 1984.
The company privately
placed in 1990-91, 0.500 million 14% secured redeemable non-convertiable
debentures of Rs. 100/- each, with the State Bank of India Capital Markets and
Canara Bank in equal proportions to meet its long term working capital needs.
These debentures are redeemable at a premium of 5% in three equal annual
installments between 19 September 96 and 19 September 98.
The company's
wholly owned subsidiary Elecon (Chennai) was amalgamated with the company with
effect from 1st January, 1987.
In 1994-95, the company entered into technical collaboration with
During 1997-98, the
company floated a new company to manufacture geared motors and gear reducers
with a wide range, in technical collaboration with a Japanese company of
international repute. The company has
also formed a joint venture company which will initially undertake
manufacturing of industrial freewheels overrunning clutches, spring assemblies,
clutches and related parts and components used in power transmission and work
holding technology.
During 1998-99, the
company has launched POSIRED 2 Helical/Beval Gears for which the company has
entered into a technical collaboration with PIC Antried Werner Reimers GmbH
& Company KG,
To market its
products in
DIVIDEND
The Directors are pleased to recommend Dividend of 50% i.e. Rs. 5/- (Rs. Five
Only) per share against previous year's 25% i.e. Rs. 2.50/- (Rs. Two and Paise
Fifty Only) per share. The total dividend will absorb Rs. 30.652 millions,
besides Rs. 4.299 millions as tax on dividend.
REVIEW OF OPERATIONS
For the year ended on 31st March, 2006, the company has achieved
turnover of Rs. 4424.800 millions and Net Profit of Rs. 278.800 millions as
against the turnover of Rs. 2777.200 millions and Net Profit of Rs. 100.400
millions during the previous year, representing remarkable growth in turnover
and Net Profit of 59% and 178% respectively.
The Gear division of the company is maintaining a steady growth and the MHE
division has grown nearly three times in size. The company is having an
unexecuted order book of about Rs. 62.600 millions as on the end of May'
06.
Due to persistent efforts of late Shri Bhanubhai I. Patel, former Chairman and
Managing Director, the company has received an amount of Rs. 50.900 millions
from Maharashtra State Electricity Board.
OUTLOOK FOR 2006-07
The company has initiated steps to incorporate a equity participating company
in
The company’s fixed assets of important value include land (freehold),
buildings, plant and machinery, electric installations, electric fittings,
office equipments, air conditioning plant, sundry equipments, furniture and
fixtures, vehicles, site office equipments and furniture
Subject was the
first company in
Ř
Wagon
tipplers
Ř
Bucket
wheel stacker / reclaimers
Ř
Barrel-type
blender reclaimers
Ř
Fertilizer
reclaiming scrapers
Ř
Limestone
pre-homegenizing and blending plants
Ř
Single
and twin bucket wheel bridge-type reclaimers
Ř
Crawler-mounted
trippers
Ř
Stationery
and Shiftabel conveying systems for open cast lignite mines
Ř
Integrated
coal handling plants for power stations
Ř
Underground
mining conveyors
Ř
Open-cast
conveying systems
Ř
Ferrous
and non-ferrous foundry products
Ř
Helical,
spiral bevel helical, planetary and worm reduction gear units and couplings
The company has set
up another wholly owned subsidiary company at
The audited
accounts of Elecon Singapore Pte. Limited
the subsidiary of the company along with a Statement pursuant to Section
212 of the Companies Act, 1956, is annexed.
AS PER WEBSITE
Established in
1951, Elecon Engineering Company Limited of Vallabh Vidyanagar,
From a modest start
of design and manufacture of Elevators and Conveyors from which incidentally,
the company derives its corporate identity. viz. "Elecon". It has
grown over the years to be known as a pioneer of the concept of mechanized way
of Bulk Material Handling Equipment in
Elecon is the first
company in
- Wagon tipplers
- Bucket wheel stacker/reclaimers
- Barrel-type blender reclaimers
- Fertilizer reclaiming scrapers
- Limestone pre-homegenizing and blending plants
- Single and twin bucket wheel bridge-type reclaimers
- Crawler-mounted trippers
- Stationary and shiftable conveying systems for open cast lignite mines
- Integrated coal handling plants for power stations
- Underground mining conveyors
- Open-cast conveying systems
- Ferrous and non-ferrous foundry products
- Helical, spiral bevel helical, planetary and worm reduction gear units and couplings.
Elecon has developed
and perfected its skills in design, manufacture, erection and commissioning of
coal handling plants. Over the years, Elecon has expanded its skills and expertise
to include the designing and execution of turnkey contracts for:
- Crushing
- Screening
- Stacking
- Blinding, and
- Reclaiming plants
for bulk materials such as limestone,
iron-ore, bauxite, overburden, rock phosphate and fertilizer.
A separate Gear
division manufactures
- Helical gears
- Spiral bevel and Helical gears
- Planetary gears
- Worm reduction gears units
- Couplings, and
- Gear boxes for highly specialized and precision applications
Elecon has expertise in providing customised gear boxes for Steel Mills, High Speed Turbines, Sugar Mills, Marine vessels, Coast Guard Ships, Plastic Extrusions, Antena Drives and for Satellites in the Indian Space Programme.
ELECON GROUP
Eimco Elecon (India)
Limited was incorporated in the year 1974 and was promoted by Environtech
Corporation, USA, Elecon Engineering Company Limited Vallabh Vidyanagar and its
Chairman& Managing Director Shri B.I. Patel
Eimco Group of
Companies Subsidiaries of Environtech USA are the world leader in production of
underground mining machinery having plants in U.K., USA, Canada, France and
Australia. EEIL and Eimco Group of Companies entered into collaboration under
which EEIL received necessary technical know-how from Eimco Group of Companies
for production of underground mining machineries.
In 1989, Eimco
Group of companies were acquired by Tamrock OY., a world leader in technology
and manufacturing of rock excavation and breaking equipments for surface and
underground mines and civil engineering construction with production and
assembly facilities in various parts of the world backed by world wide sales
and distribution net work.
Internationally,
Tamrock holdes close to 40% market share in the mining machinery business. It
is a leading supplier of drilling and loading equipments for hard rock
applications.
THE PRODUCTS
EEIL produces a
very wide range of underground mining machinery Viz. Air Powered Rocker
Shovels, Electro hydraulic Side Dump Loaders and Electro Hydraulic and Air
Powered Load Gaul Dumpers used as loading machines in both the underground Coal
mines and Metalliferous mines. It also manufactures Air Motors for captive
consumption and other OEM manufacturers, company also manufactures hydraulic
Drilling and Roof bolting jumbos and Auger-cum-Drills and Tugger Hoists. Side
Dump Loaders, Load Haul Dumpers and Auger-cum-Drills forms backbone of the
mechanization system of underground coal mines.
THE CUSTOMERS
Eimco Elecon's
major clients are the subsidiaries of Coal India Limited Viz. Bharat Cooking
Coal Limited. Eastern Coalfield Limited etc. Other clients include Singanery
Collieries Company Limited, Uranium Corporation of
ELECON INFORMATION
TECHNOLOGY LIMITED
With a humble
beginning in 1972 as one of the group Companies of Elecon group, Power Build
Limited, ventured into production of Geared Motors and gear boxes in technical
collaboration with Roudolf Muchna KG of
Automatic weighing
and Bag Filling Machines.
Electronic Belt
weighers and weigh feeders
Metal
Detectors
Inline Magnetic
separators and suspension magnets with latest technology.
Electric Hoist
using the latest techniques of conical rotor design motors
Automatic Wagon
& Truck loaders
Beltsway switches
and pullcord switches used for conveyors.
Unsurpassed quality
of the product is the company's prime motto and the factory is equipped with
the latest and the most modern machineries including (CNC) machines ensuring
highest quality of product and interchangeability. PBL has executed a large
number of orders in the core sector industries like Fertilizers, Cement, Coal,
Power Generation, Chemicals, Steel Plants, etc. Equipments supplied by PBL are
rendering trouble free service for years at length.
EMTICI ENGINEERING
LIMITED
Emtici Engineering
Limited is a Sole Selling Agent of Elecon Engineering Company Limited, Eimco
Elecon (
Also carrying out
fabrication & erection activity for Coal Handling Plants & other
Material Handling Equipment and providing post sale as well as during warranty
services and post warranty services for supplies of principals.
Company is having
branch offices at Mumbai,
RINGSPANN ELECON (
RINGSPANN GmbH,
POWER BUILD ELECON
GEARS LIMITED
Power Build Elecon
Gears Limited (PBEGL) is a joint venture of Power Build Limited who are
manufacturers of gear motors for over 27 years and Elecon Engineering Company
Limited, who are leaders in manufacturing helical/spiral bevel and worm gear
reducers in
"PBEGL"
manufactures "SUPER-A" series of gear motors and gear reducers under
license from SEIKI-KOGYOSHO LIMITED (SKK) -
KIRLOSKAR POWER
BUILD GEARS LIMITED
Kirloskar Power
Build Gears Limited (KPBGL), a joint venture between Emtici Engineering Limited
(EMTICI), the marketing and servicing set up of ELECON group of companies, and
KEC will be marketing and servicing the products of PBEGL.
VVN MFG. &
INVESTA LIMITED
A listed company
engaged in manufacturing Idler & Rollers, Job Work, Machining as well as
Sales & Service of Mining Equipment including spares.
PRAYAS CASTINGS
LIMITED
Engaged in
manufacturing, undertaking, conducting and dealing in the business of founders
and smelters of ferrous as well as non-ferrous metals and other metals and
alloys.
ELECON INFORMATION TECHNOLOGY LIMITED
Elecon Information
Technology Limited (EITL) draws on the company’s vast and varied experience of
more than 13 years in the field of hardware, software and networking solutions.
The company’s mission is to provide comprehensive software and hardware
solutions and satisfy customers business and management needs.
WESTERN METAL CAPS
LIMITED
Engaged in
Manufacturing Steel Iron Castings and also carrying out Heat Treatment and
painting activity for Gear division of Elecon Engineering Company Limited
Press Release
The Company has recorded a turnover of Rs. 1754.600 Millions and Net
Profit of Rs. 162.700 Millions for the quarter ended September 30, 2006 as
against the turnover of Rs. 946.700 Millions and Net Profit of Rs. 57.500
Millions during the corresponding period of the previous year.
The Turnover and Net Profit have gone up impressively by 85% and 183% respectively for
the quarter ended September 30, 2006 over corresponding period of previous year
with turnover of Material
Handling Division (MHE Division) growing by nearly two & half times.
For the half year ended September 30, 2006 the company has achieved
Turnover of Rs. 2700.400 millions and Net Profit of Rs
216.700 millions as against the Turnover
of Rs 1653.500 millions and Net Profit of Rs.
87.800 millions during the corresponding period of previous year, representing
remarkable growth in Turnover by
63% and in Net Profit by 147%.
The Company is having an
unexecuted order book of about Rs.
6780 Millions as on October 30,
2006.
Current Market Capitalisation of the Company
is around Rs. 7970 Millions.
The Earning Per Share (EPS) (annualized) for the half year ending on 30th September
06 is Rs. 71.70 Per Share as
against Rs 31.10 for the
corresponding half year of the previous year.
The Equity Shares of the company
have been listed on National Stock Exchange of India Limited with effect from
September 29, 2006. The market lot is 1 share. The stock code is “ELECON”.
The sub-division of the Equity Shares of the company from Rs. 10
per share to Rs. 2 per share has been effected on October 26, 2006.
Due to the same, the number of Equity Shares have been increased from 6130394
shares of Rs. 10/- each to
30651970 shares of Rs. 2/- each.
Date
05-01-2007
The Company has recorded a turnover of Rs. 1682.400 Millions
and Net Profit of Rs. 146.700 Millions for the quarter ended December 31, 2006
as against the turnover of Rs. 897.400 Millions and net Profit of Rs. 81.400
Millions during the corresponding period of the previous year.
The turnover and net profit have gone up impressively by 87% and 80%
respectively for the quarter ended December 31, 2006 over corresponding period
of previous year.
For the nine months ended December 31, 2006 the Company has achieved turnover
of Rs. 4382.800 Millions and net profit of Rs 363.500 Millions as against the
turnover of Rs 2551.000 Millions and Net Profit of Rs. 169.200 Millions during
the corresponding period of previous year, representing remarkable growth in
turnover by 72% and in Net Profit by 115%.
The company is having unexecuted order book of about Rs.6769.100 Millions as on
December 31, 2006
Current Market Capitalisation of the Company is around Rs. 1,3851.600 Millions.
The Basic Earning per Share (EPS) for the nine months ending on December 31,
2006 is Rs. 12.03 per Share (Face value of Rs.2/- each) as against Rs 5.99 per
Share (Face value of Rs.2/- each) for the corresponding nine months of the
previous year.
The Company has received notice for conversion of 900 Foreign Currency
Convertible Bonds of US $ 1000 each aggregating to US$ 0.9 Million and
consequently, allotted 271,680 equity shares of Rs. 2/- each to Credit Suisse
(Singapore) Limited. Now only 100 Foreign Currency Convertible Bonds of US $
1,000 each aggregating to US $ 0.1 mn are outstanding for conversion.
The Company has received a prestigious order for Design, Manufacture and supply
of one set of Gearbox from Cochin Shipyard Limited for Indian Navy for Rs. 387
Millions for its first indigenous Aircraft Carrier.
Allotment of Equity Shares
This is to inform you that the Committee of Directors at its meeting held on
January 5, 2007 has allotted 2,71,680 Equity Shares of Rs. 2 each fully paid up
to Credit Suisse (Singapore) Limited on conversion of 900 Foreign Currency
Convertible Bonds of US $ 1,000 each aggregating to US $ 0.9 mn.
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.40.84 |
|
|
1 |
Rs.80.47 |
|
Euro |
1 |
Rs.54.32 |
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 |
|