MIRA
INFORM REPORT
|
Report Date : |
09.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GENUS OVERSEAS
ELECTRONICS LIMITED |
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Registered Office : |
D-116, Okhla
Industrial Area, Phase – I, Okhla, New Delhi - 110020 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.08.1992 |
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Com. Reg. No.: |
55-133383 |
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CIN No.: [Company
Identification No.] |
L51909DL1992PLC133383 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHG02830C |
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PAN No.: [Permanent
Account No.] |
AAAFG9466A |
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Legal Form : |
Public Limited Liability company. Company’s shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Hybrid Microcircuits (HMC),
Resistor Network, SMT/PCB, Energy
Meter and parts and Accessories for Energy Meter |
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 1750000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having satisfactory track records.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually correct
and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
D-116, Okhla
Industrial Area, Phase – I, Okhla, New Delhi – 110020 |
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Tel. No.: |
91-11-41015700-01 |
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Fax No.: |
91-11-26819028 |
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E-Mail : |
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Website : |
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Corporate
Office/ Factory : |
SPL – 3, RICO Industrial
Area, Sitapura Tonk Road, Jaipur – 302022, Rajasthan, India |
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Tel. No.: |
91-141-2770003/4/9,
2770401/2 |
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Fax No.: |
91-141-2770319 /
2771355 |
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Factory 2 : |
Plot No 12,
Sector 4, IIE SIDUCUL, BHEL, Haridwar (Uttaranchal) |
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Tel. No.: |
91-1334-239232/4 |
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Fax No.: |
91-1334-239233 |
DIRECTORS
|
Name : |
Mr Ishwar Chand
Agarwal |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr Rajendra Kumar
Agarwal |
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Designation : |
Executive
Director |
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Name : |
Mr Jitendra Kumar
Agarwal |
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Designation : |
Executive
Director |
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Name : |
Mr Giriraj
Kishore Sharma |
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Designation : |
Executive
Director |
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Name : |
Mr Vishnu Todi |
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Designation : |
Director
(Executive Director upto 31.03.2006) |
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Name : |
Kailash Chandra
Agarwal |
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Designation : |
Director |
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Name : |
Mr B S Solanki
(Wg. Cdr. (Retired)) |
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Designation : |
Director |
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Name : |
Mr Rameshwar
Pareek |
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Designation : |
Director |
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Name : |
Mr Ram Dayal Sharma |
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Designation : |
Director |
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Name : |
Mr C K Jain
(Doctor) |
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Designation : |
Director |
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Name : |
Mr Indraj Mal
Bhutoria |
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Designation : |
Director |
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Name : |
Mr Dharma Chand
Agarwal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr Raj Kumar
Yadav |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Category of
Shareholders |
No. of Shares |
Percentage of Holding |
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A. Promoters |
5553291 |
53.229 |
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B. Non-Promoters |
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1. Institutional
Investors |
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Mutual Funds and UTI |
47400 |
0.454 |
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Banks/FI/Insurance Company |
755813 |
7.245 |
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FIIs |
472800 |
4.532 |
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2. Others |
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Corporate Bodies |
1149704 |
11.020 |
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Indian Public |
1725590 |
16.540 |
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NRIs/OCBs |
700483 |
6.714 |
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Clearing Members/ Corporation |
27754 |
0.266 |
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Total |
10432835 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Hybrid Microcircuits (HMC),
Resistor Network, SMT/PCB, Energy
Meter and parts and Accessories for Energy Meter |
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Products : |
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Exports : |
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Countries : |
Denmark, UK, Jordon and U.S.A. |
PRODUCTION
STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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Energy Meter |
Numbers |
31.03.2006 -1350000 31.03.2005 – 1350000 |
31.03.2006 - 766432 31.03.2005 - 1070086 |
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Resistor Network |
Numbers |
31.03.2006 - -- 31.03.2005 - -- |
31.03.2006 - 202875 31.03.2005 - 164610 |
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SMT / PCB |
Million Square Inches |
31.03.2006 - 7.50 31.03.2005 - 7.50 |
NA |
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HMC |
Million Square Inches |
31.03.2006 - 3.00 31.03.2005 - 3.00 |
NA |
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Taxi Meters |
Numbers |
31.03.2006 – 50000 31.03.2005 – 50000 |
31.03.2006 - 126 31.03.2005 - 434 |
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SMT / PCB |
Numbers |
NA |
31.03.2006 – 864897# 31.03.2005 – 886908# |
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HMC |
Numbers |
NA |
31.03.2006 – 708330* 31.03.2005 – 1259527* |
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Power Invertors |
Numbers |
NA |
31.03.2006 -35202@ 31.03.2005 -5144@ |
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Set Top Box |
Numbers |
NA |
31.03.2006 – 3219@ 31.03.2005 - -- |
* Includes Nos. 547085 (Previous Year 959640), HMCs used in captive
consumption
# Includes Numbers 832494 (Previous year
841435), PCBs used in captive consumption.
GENERAL
INFORMATION
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No. of Employees : |
About 450 |
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Bankers : |
Bank of Baroda State Bank of
India Punjab National
Bank Industrial
Development Bank of India Limited State Bank of
Indore Standard
Chartered Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M L Agarwal and
Company Chartered
Accountants |
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Address : |
C-20, Bhagwan Das
Road, Jaipur |
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Associates : |
Genus Electrotech
Limited Genus Apparels
Limited Genus Paper Products
Limited (Formerly : Kailash Paper Products Limited ) Genus Innovation
Limited (Formerly : K C Mercantile Limited ) Genus
International Commodities Limited Kailash Coal and
Coke Company Limited K C Electrometers |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15160000 |
Equity Shares |
Rs 10/- each |
Rs 151.600 Millions |
|
504000 |
10% Redeemable
Preference Share |
Rs 100/- each |
Rs 50.400 Millions |
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Total |
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Rs 202.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10432835 |
Equity Shares |
Rs 10/- each |
Rs 104.328 Millions |
|
500000 |
10% Redeemable
Preference Share |
Rs 100/- each |
Rs 50.000 Millions |
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Total |
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Rs 154.328 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
154.328 |
151.587 |
151.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
303.338 |
132.306 |
75.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
457.666 |
283.893 |
226.600 |
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LOAN FUNDS |
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1] Secured Loans |
701.553 |
379.610 |
258.100 |
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2] Unsecured Loans |
244.046 |
63.895 |
83.900 |
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TOTAL BORROWING |
945.599 |
443.505 |
342.000 |
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DEFERRED TAX LIABILITIES |
32.626 |
28.644 |
0.000 |
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TOTAL |
1435.891 |
756.042 |
568.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
323.106 |
257.639 |
218.000 |
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Capital work-in-progress |
97.595 |
0.000 |
5.500 |
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INVESTMENT |
17.580 |
0.080 |
0.100 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
375.373 |
138.884 |
115.200 |
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Sundry Debtors |
1115.363 |
411.589 |
372.400 |
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Cash & Bank Balances |
228.342 |
102.931 |
88.700 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
233.672 |
70.703 |
41.800 |
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Total
Current Assets |
1952.750
|
724.107 |
618.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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|
255.400 |
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Provisions |
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|
19.400 |
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Total
Current Liabilities |
955.258
|
226.694 |
274.800 |
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Net Current Assets |
997.492 |
497.413 |
343.300 |
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MISCELLANEOUS EXPENSES |
0.118 |
0.910 |
1.700 |
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TOTAL |
1435.891 |
756.042 |
568.600 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
2406.899 |
1541.425 |
968.400 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
2406.899 |
1541.425 |
968.400 |
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Profit/(Loss) Before Tax |
172.863 |
89.872 |
55.800 |
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Provision for Taxation |
19.484 |
11.194 |
20.200 |
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Profit/(Loss) After Tax |
153.379 |
78.678 |
35.600 |
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Earnings in Foreign Currency : |
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Export Earnings |
32.831 |
22.819 |
N.A. |
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Commission Earnings |
0.000 |
0.000 |
N.A. |
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Other Earnings |
0.000 |
0.000 |
N.A. |
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Total Earnings |
32.831 |
22.819 |
N.A. |
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Total Imports |
268.362 |
313.296 |
N.A. |
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Total Expenditure |
2234.036 |
1451.553 |
NA |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 1st Qtr |
30.09.2006 2nd Qtr |
31.12.2006 3rd Qtr |
|
Sales Turnover |
509.900 |
779.900 |
841.700 |
|
Other Income |
2.200 |
5.600 |
4.200 |
|
Total Income |
512.100 |
785.500 |
845.900 |
|
Total Expenditure |
430.800 |
659.300 |
715.400 |
|
Operating Profit |
81.300 |
126.200 |
130.500 |
|
Interest |
26.400 |
48.200 |
42.500 |
|
Gross Profit |
54.900 |
78.000 |
88.000 |
|
Depreciation |
12.100 |
12.000 |
14.600 |
|
Tax |
4.900 |
8.300 |
8.700 |
|
Reported PAT |
36.800 |
56.300 |
62.700 |
Notes
200606 Quarter 1
Expenditure
Includes (Increase) / Decrease in Stocks Rs (12.695) million Consumption of Raw
Materials Rs 332.615 million Staff Cost Rs 23.211 million Other Expenses Rs 87.577
million Tax Includes Provision for Current Tax Rs 4.900 million Deferred Tax Rs
1.100 million EPS is Basic & Diluted 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 above
results were reviewed by the Audit Committee and were thereafter taken on
record by the Board of Directors in its meeting held on July 28, 2006. 2. Out
of 2% Foreign Currency Convertible Bonds (FCCBs) due 2010 amounting to US $
2.50 million issued by the Company in December, 2005, remaining FCCBs
aggregating US $ 1.50 million have been converted into 413785 Equity Shares of
face value of Rs 10/- each at a conversion price of Rs 162 per share between
April 01, 2006 to June 30, 2006. All these newly allotted Equity Shares, rank
pari passu in all respects with the existing paid up Equity Shares of the
Company and have resulted in increase in the Paid up Equity Share Capital and
Share Premium Account of the Company. 3. The company has further issued Zero
Coupon Foreign Currency Convertible Bonds (FCCB5) due 2011 amounting to US $
7.50 Million in July 2006 for capital expenditure. 4. The Auditors of the
company have carried out the 'Limited Review' of the above financial results
for the quarter ended June 30, 2006. 5. Previous Year's figures have been
regrouped / rearranged wherever necessary. 6. The Company is primarily engaged
in power segment business of Electronic Energy Metering Projects, Hybrid
Microcircuits, PCB5 and Resistor Networks, and Other electronic products
therefore, the figures shown above relate to that segment.
200609 Quarter 2
Expenditure Includes
(Increase) / Decrease in Stocks Rs 23.597 million Consumption of Raw Materials
Rs 512.956 million Staff Cost Rs 32.408 million Other Expenses Rs 90.354
million Tax Includes Provision for Current Tax Rs 8.30 million Deferred Tax Rs
1.40 million EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 04 Complaints disposed off
during the quarter 04 Complaints unresolved at the end of the quarter Nil 1.
The above results were reviewed by the Audit Committee and were thereafter
taken on record by the Board of Directors in its meeting held on October 17,
2006. 2. The Auditors of the Company have carried out the 'Limited Review' of
the above financial results for the quarter ended September 30, 2006. 3. The
Company has entered into a joint venture with Mobix to set up a new unit in
Brazil to manufacture AMR based electronic energy meters. 4. The Board reviewed
the total order book position of worth Rs 4914.00 million including turnkey
projects, as on October 01, 2006. 5. Previous Year's figures have been
regrouped / rearranged wherever necessary. 6. The Company is primarily engaged
in Power Segment Business of Electronic Energy Metering projects, Hybrid
Microcircuits, PCB's and Resistor Networks and other electronic products
therefore thefigures shown above relate to that segment. 6. The Company is
primarily engaged in power segment business of Electronic Energy Metering Projects,
Hybnd Microcircuits, PCBs and Resistor Networks, and other electronic products
therefore, the figures shown above relate to that segment.
200612 Quarter 3
Expenditure
Includes (Increase) / Decrease in Stocks Rs 3.186 million Consumption of Raw
Materials Rs 542.592 million Staff Cost Rs 18.065 million Other Expenses Rs
151.566 million Tax Includes Provision for Current Tax Rs 8.754 million
Deferred Tax Rs 2.000 million EPS is Basic & Diluted Status of Investor
Complaints for the quarter ended December 31, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 05
Complaints disposed off during the quarter 05 Complaints unresolved at the end
of the quarter Nil 1. The above results were reviewed by the Audit Committee
and were thereafter taken on record by the Board of Directors in its meeting
held on January 18, 2007. 2. The Auditors of the Company have carried out the
'Limited Review' of the above financial results for the quarter ended December
31, 2006. 3. The Board reviewed the total order book position of worth Rs 4700
million including turnkey projects. 4. Land has been acquired by the joint
venture (formed by Genus with Mobix) in Brazil to set up a new unit to
manufacture AMR based electronic energy meters and further work has been
started on the project. 5. Previous Year's figures have been regrouped /
rearranged wherever necessary. 6. The Company is primarily engaged in power
segment business of Electronic Energy Metering Projects, Hybrid Microcircuits, PCBs
and Resistor Networks, and other electronic products therefore, the figures
shown above relate to that segment.
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
|
1.87 |
1.54 |
1.63 |
|
Long Term Debt-Equity Ratio |
|
0.72 |
0.44 |
0.40 |
|
Current Ratio |
|
1.28 |
1.23 |
1.18 |
|
TURNOVER RATIOS |
|
|
|
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|
Fixed Assets |
|
5.41 |
4.45 |
3.16 |
|
Inventory |
|
8.93 |
11.96 |
10.72 |
|
Debtors |
|
3.01 |
3.88 |
2.22 |
|
Interest Cover Ratio |
|
3.30 |
2.83 |
2.15 |
|
Operating Profit Margin(%) |
|
12.63 |
10.49 |
11.62 |
|
Profit Before Interest And Tax
Margin(%) |
|
10.80 |
9.14 |
11.31 |
|
Cash Profit Margin(%) |
|
8.51 |
6.52 |
4.17 |
|
Adjusted Net Profit Margin(%) |
|
6.68 |
5.18 |
3.86 |
|
Return On Capital Employed(%) |
|
23.30 |
21.49 |
18.20 |
|
Return On Net Worth(%) |
|
46.27 |
35.91 |
18.13 |
STOCK PRICES
|
Face Value |
Rs. 10/- each |
|
High |
Rs. 248.00 |
|
Low |
Rs. 246.00 |
LOCAL AGENCY FURTHER
INFORMATION
Genus Overseas Electronics Limited, an ISO 9001: 2000 Public Limited Company is a part of the reputed US $100 million Kailash Group. It was founded by Mr. I. C. Agarwal in 1994.
Driven by the spirit of innovation, the company is committed to making complex technologies simple and more affordable for consumers. Already a leading name in Hybrid Microcircuits and Electronic Energy Meters in India, the company is today gaining increasing global acceptance, as a Contract Manufacturer of choice, for leading International OEMs.
The success of Genus is a fascinating story of innovation and path-breaking product developments. Armed with globally competitive R&D and manufacturing facilities, Genus is a leading company offering turnkey design-to-end-product solutions.
Company’s solutions
span the following products/services –
Energy Management Systems (Intelligent Panel Meters)
Electronic Auto/ Taxi Meters (Fare Meters)
About Company
GENUS OVERSEAS ELECTRONICS LIMITED., an ISO-9001 Company is a Public Limited Concern with an investment of US$ 7 million. The company has been promoted by Kailash Group of Industries having interest in diversified fields, with a group turnover of more than US$ 100 million.
GENUS was established in 1995 in the historic Pink City of India, Jaipur. Company is a leading manufacturer of Thick Film Hybrid Microcircuits in India. Company has three SMT lines dedicated to Contract Manufacturing of PCB Assemblies. The annual plant capacities of Hybrid Microcircuits and PCB Assemblies are 4.50 million square inches and 30 million square inches respectively. The plant produces more than 2.4 million Single Phase and Three Phase Electronic Electricity Meters annually.
GENUS has the most modern plant with Class 10,000 and 100,000 clean room work areas. The advanced design software, latest manufacturing equipment and Automatic testing systems ensure highest quality products at competitive prices.
GENUS is now supplying Hybrids to Telecom, Industrial, Defense, Consumer,
Automotive, Informatics, Power sectors and for Metering products.
GENUS is engaged in Electronic Manufacturing Services, which besides Contract
Manufacturing of SMT/ Through-hole PCB assemblies includes supply of
enclosures/ casings and accessories, wherever applicable. The workmanship of
PCB Assemblies has been well received by customers both in India and abroad.
The strength of GENUS lies in its strong Design and Development team, instrumental in development of Low end ASIC based Electricity Meters to High end Programmable Multi-functional Intelligent Single Phase & Three Phase Meters with in-built advanced security and anti-tamper features. Expertise in Embedded Software ensures that Company’s products are customized as per the specific requirement.
GENUS has a fully equipped modern tool room with the latest CAD/CAM software and CNC machines. A qualified team of product designers having rich experience in die and mould design, has enhanced Company’s capabilities of offering customized products in HMC modules, assembled PCBs, Electronic Energy Meter and other Metering Solutions.
GENUS is continuously updating its product portfolio with new products and solutions. Recent developments are Digital Taximeter, Pre-Payment Meter, AMR enabled Meters and several Turnkey projects in related areas.
GENUS has been accredited with ISO-9001:2000, IECQ, EMC, ISI and C-DOT Certifications. The experience and exposure to international level of excellence has equipped GENUS to face and adapt to the challenges and opportunities emerging in the world today.
Product Assurance
The Quality Policy at GENUS emphasizes on offering the best quality products and services confirming to international quality standards, and is accomplished by making every individual responsible for quality.
In-House reliability tests are conducted on THERMAL SHOCK, HUMIDITY & BURN -IN chambers to ensure satisfactory performance and quality over the entire product
Recognitions & Certifications
Genus stands committed to exceeding the highest standards of quality stipulated by the leading authorities, both in India and abroad. The following recognitions and certifications (only partial list) bear testimony to the company’s uncompromising quality standards.
First among equals
• ISO 9001:2000 certification
• R&D lab recognized by the Ministry of Science & Technology, Government of India
• CDOT approval for Line Card Hybrid & Resistor Networks & Contract Manufacturing
• IECQ for quality of components
• ISI mark for Energy Meters
• ISI mark for Fare Meters
• CE approval for Meters
• EMI / EMC certifications
• ETDC certified Inverters
Infrastructure
R&D Facilities
At Genus, Design & Development is all about the perfect balance between constant research, the latest globally proven technologies and hand-picked professionals from diverse specialties. This winning combination of man and machine is evident in the company’s rapid rise over the global horizon.
Hardware, software
The company’s strong
R&D team is armed with cutting-edge facilities, in its in-house R&D lab, which is recognized by the Ministry of Science and
Technology, Government of India. The company’s tool room rivals the
world’s best, with advanced CAD / CAM software, CNC machines and automatic test
systems. Advanced design software, the latest manufacturing equipments, Class 10, 000 and 1, 00, 000 Clean Room work
areas, everything adds up to arm Genus with the unique capability to
match global quality, at a competitive price.
Genus appoints Gauri
Pradhan as brand ambassador
MUMBAI: Genus Overseas, an ISO-9001 Limited company with a group turnover of more than $100 million, has signed on television actor Gauri Pradhan of Kyunki Saas Bhi Kabhi Bahu Thi fame as their brand ambassador. Pradhan will endorse the entire range of Genus Sure Sine Wave Super Inverters.
She will also feature in Genus’s extensive ad campaign, including an ad film directed by veteran film director Aziz Mirza. Genus has earmarked a mega budget Rs 60 million for the promotion, which includes spends on the print and electronic media and below the line activities. The campaign will kick start by mid March across the country.
Genus Sure Sine Wave Inverter is available in 600,800, 1400 VA and higher. The invertors are equipped with the futuristic ASIC technology making them totally safe for running all gadgets including coolers, washing machines, water pumps and refrigerators.
Commenting on Pradhan as their choice of
brand ambassador, Genus Overseas Electronics Limited chairman and managing
director I C Agarwal said, "She is a perfect brand endorser for Genus
Inverters as she embodies the spirit of excellence and stands for honesty and
high performance, much like the qualities of Genus Sure Sine Wave
Inverter."
Genus Overseas Electronics Limited has also changed their corporate identity for a more contemporary and innovative look, reflecting the services it provides and the standards it strives to maintain.
PERFORMANCE REVIEW AND OPERATIONS
During the year
under review, Company has been successful in achieving turnover of Rs.2297.2
Millions with a growth of 51% over the previous year's turnover at Rs. 1520.1
Millions. The net profit after tax for the financial year ended 31st March,
2006 achieved is Rs. 153.4 Millions, which is higher by 95% over Rs. 78.7
Millions reported during the previous financial year 2004-2005.
Genus, a part of
the Kailash Group, is one of the largest producers of multifunction electronic
energy meters. The company also manufactures inverters, taxi meters, hybrid
micro-circuits and resistor network and printed circuit boards at its
state-of-the art manufacturing facilities at Jaipur, Rajasthan and recently
started new unit at Haridwar. It also undertakes turnkey projects in the power
distribution sector scaling up its operations from meter to metering where it
provide complete solutions to customer. Projects encompass supply and erection
of equipments like meter, cable, transformer, pole, panel meter, audit meter,
etc., at site.
The company is
expanding its product range by introducing a series of new products such as AMR
based Meter, Transformer, Transmission Pole, Solar Inverter, Digital Signature
Receiver, UPS and Inverter accessories in near future.
EXPORTS
The export for the
year under review was at Rs.32.8 Millions as compared to Rs. 22.8 Millions in
the previous year. The Company is exporting its products to U.K. U.S.A. as well
as developing counties like Russia, Korea, Singapore, Bangladesh, etc. The
demand for Indian electronic products in the international market is constantly
increasing due to extensive and satisfactory performance of products. Genus is
effectively surviving in the world-class competition and is also ready to face
emerging challenges in future. The company made heartening inroads into new
market like Iran, France, Jordan, Turkey, Brazil, etc.
CAPTIVE WiND POWER PROJECTS
In pursuit of
raising dependence on renewable energy resources, Company has increased its
wind power generation capacity from 0.35 MW to 1.60 MW at Jaisalmer. As per the
arrangement with State Electricity Board, the Company gets power credit at
Jaipur plant to the extent of 90% of the power generated at wind farms at
Jaisalmer.
EXPANSION
In order to keep up
the growth story of the Company, the Company has set up a new manufacturing unit
at Haridwar, Uttranchal (a tax free zone) with state-of-the-art manufacturing
facility with an investment of Rs.250 million for manufacturing of Inverter,
Set Top Box, UPS, Electronic Energy Meters, etc. The commercial production of
inverters and allied items has commenced from April, 2006. Capex of Rs.97.6
Millions has been incurred upto 31 st March, 2006.
INDUSTRY
STRUCTURE & DEVELOPMENT
The Company is
primarily engaged in design and production of Electronic Energy Meters (EEMs), Inverters,
Hybrid Microcircuits (HMCs), Taxi Meters, Trivector Meters, Resistor Networks,
etc. The Company also undertakes turnkey projects in the power distribution
sector, which include the detailed design of the system using equipments such
as meter, cable, transformer, panel meter, audit meter, pole, etc. These
projects involve complete installation, including shop testing, providing
engineering drawings, data, operation manual, packing and transportation,
receipt, storage, preservation and conservation of equipment at the site,
erection, testing and commissioning of all the equipment, reliability tests and
performance and guarantee, tests on completion of commissioning; and furnishing
of spares, etc.
The growth in
demand for power in developing economies is generally higher than that of their
GDR In India, the ratio of demand growth to GDP growth was 3.06 in the first
Plan and peaked at 5.11 during third plan and came down to 1.65 in the
eighties. At present, a ratio of around 1.5 is projected. Therefore, in order
to support the GDP growth of around 8% per annum, the rate of growth for power
supply needs to be over 10% annually. This is evident from the ever increasing
demand for the power in the country's vibrant economy leading to a widening gap
between the supply and demand. Government has announced many plans for power
sector to meet this challenge.
The Bharat Nirman
Yojana was announced by the UPA government, under which electricity is among
the top four priorities. The Prime Minister announced electrification of 125000
villages targeting 23 Millions new rural connections. The Prime Minister
restricted free power supplies, hence 25 Millions new rural connection over the
next 3 years represents a big market opportunity for Genus.
In February 2005, National
Electricity Policy (NEP), in compliance with section 3 of the Electricity Act
was passed. The policy is in line with the overall direction of reforms. The
policy, which is well crafted, covers:
o Power to
all by 2012
o rural
electrification
o Reducing T
& D losses
o Better
cost recovery and Targeting of subsidies
o Greater
power sector participation
o Need for
technology in all spheres of the sector.
o Protection
of Consumer Interest
Honorable
Prime Minister Dr. Manmohan Singh recently launched a new scheme for
creating rural electricity infrastructure and completing household
electrification named as "Rajiv Gandhi Grameen Vidyutikaran Yojana Scheme
of Rural Electricity Infrastructure and Household Electrification". Since
independence so far only about 44% rural households could be given access to
electricity and more than one lakh villages are still to be electrified. The
new programme involves providing access to electricity for 78 Millions rural
households in five years.
As per Central Electricity Authority
Regulations, 2004 on Installation and Operation of Meters, all existing
Electro- Mechanical meters, which fail to meet the requirement of these
regulations, shall be replaced in a time framed to be decided by the
Appropriate Regulatory Commission.
''Power management is a significant
component of economic growth. Power distribution losses and in-efficient
management at the State Electricity Boards (SEB's) have resulted in huge
economic losses for these utilities. Accelerated Power Development &
Reforms Programme (APDRP) was set up during 2002-03 for restoring the
commercial viability of the distribution Sector. The key dimensions of the
scheme relevant for demand of EEM's are:
- Emphasison
I00%meteringineverystepofdistribution
- Tamper proof metering
- Availability of funds
Schemes undertaken under APDRP are for
renovation and modernization of sub-stations, transmission lines &
distribution transformers, augmentation of feeders & transformers, feeder
and consumer meters, high voltage distribution system (HVDS), consumer
indexing, SCADA, Computerized billing etc.
Hence, being tamper proof, accurate and
efficient EEM's will be the future choice of energy meters and not the outdated
electromechanical meters, which has many limitations. Domestic metering is
expected to rise with the growth in housing sector, rural electrification
program and replacement of existing electromechanical meters with EEM's will
drive the demand for EEM's and Energy Management solution for years to come.
Traditional meters will be replaced with new tamper proof electronic energy
meters by most of the private utilities.
ELECTRONIC
ENERGY METER AND TURNKEY PROJECTS IN THE POWER DISTRIBUTION SECTOR
Power is an important infrastructure area for
economic growth. The economic development would greatly depend upon a
commercially viable power sector that is able to attract fresh investments.
However, the financial health of State Electricity Boards (SEB's) becomes a
matter of serious concern considering that their losses have reached an
alarming level.
The commercial losses are mainly due to low
metering efficiency, theft and pilferages. Improving metering efficiency,
proper energy accounting & auditing and improved billing & collection
efficiency may eliminate these losses.
Traditionally, Indian Utilities i.e. State
Electricity Boards (SEB's) have been using Electromechanical Meters to measure
the electricity provided to the consumers both domestic as well as Industrial.
Further, in India, vast users have been billed on periodic basis without
metering the actual usage of the electricity. The results are obvious; the
SEB's are sick and struggling to survive.
The distribution loss is one of the major
issue Indian Utilities have been facing. The conventional Electromechanical
Meters (Ferraris) are not the obvious choice due to its inherent limitations.
The simple electromagnetic meter suffers from several problems and that is why
EEMs are now replacing them.
Requirement
of new meters
During 1994 to 2005 the production of
electricity meters have gone up from 4.2mn to around 7mn pieces p.a. giving a
CAGR of 6% p.a. The demand will continue to grow at this rate due to:
• Growth in Housing: The
Tenth Five Year Plan estimated a shortage of 22.4 million dwelling units. Thus,
in coming 15 - 20 years, 80 - 90 million housing units will have to be
constructed. This will generate a demand for new meters to the tune of 5-6
million pieces.
• Rural
Electrification: Rural
Electricity Supply Technology Mission was set up in September 2002 with an
objective of taking electricity to every household in India by 2012. Government
is targeting 10 Millions household to be provided with electricity in this time
span. This will drive the demand over and above the growth in urban areas.
• 100%
metering: Through
APDRR the Government is providing every support to SEB's to undertake 100%
metering exercise so that no unit of electricity is utilized without being
accounted. Considering the T&D losses of around 40% of SEB's, there is huge
potential of new
meters being installed.
INVERTER
As power supply situation in most part of
the country is unsatisfactory, leading often to blackouts. Market for inverters
is thus very strong in both urban as well as rural areas.
Genus inverters are manufactured with
state-of-the-art technology with many advanced features. Genus inverters are
based on DSP Sine Wave Technology, which supplies clean power same as Company
gets from the mains supply. They have advanced features like Auto Sense Intelligent
Control, which increases life and efficiency of all kinds of batteries as it
regulates the current flow as per the condition and requirement of the battery.
These inverters safely run all kinds of appliances including air conditioners,
water pumps, refrigerators, coolers, washing machines etc. apart from normal
fans, lights and television, safely and without any humming noise. They consume
less power in comparison to any other inverter and also enhances the battery
life. Genus' Inverter currently comes in the range of 600 VA, 800 VA, 1400 VA,
2.5 KVA, 5 KVA & 10 KVA. The introduction of the Genus Sure Sine Wave Super
Inverter has received tremendous response from the market place resulting in a
strong Distribution/Dealer network for Inverter sales. The "Genus
Inverter" brand is now available in all parts of the country. The current
size of the market for Inverters is 1.5 Million units a year and the market is
growing at a CAGR of 12-14%.
SOLAR INVERTER
Genus has already developed grid interactive
solar inverters. Solar inverters being renewable sources of energy is of great
importance to company’s future growth, as the World in future will increasingly
depend on solar energy. Genus has taken lead in this direction.
UPS
Company’s development of UPS of various KVA
capacities is now complete. Company has plans to launch these products in near
future. UPS will add higher value to their product range. As more and more
mission critical applications (viz. banks, call ' centres, large offices,
companies, complexes, aviation, etc.), where power off condition of even one
millisecond is intolerable, use of UPS is almost mandatory. This provides
tremendous growth possibilities for us.
SEGMENT WISE AND PRODUCT WISE PERFORMANCE
The Company is primarily engaged in power
segment business of Electronic Energy Metering Projects, Taxi Meters, Hybrid
Microcircuits, Resistor Networks and other electronic products. During the year
under report, company has achieved an excellent performance, making another
landmark as turnover of the Company touches Rs.2290 Millions. The turnover of
the Company has increased by 51% over previous year. Net profit hit an all time
high at Rs. 153.4 Millions, up by 95%.
During the year, the Company put emphasis on
it's turnkey project business, which contributed almost 34% to the performance.
About 38% of total turnover of the Company was from Electronic Energy Meters,
whereas Taxi Meters, Hybrid Micro Circuits, Printed Circuit Boards, Resistor
Networks, Inverters, accessories and Job works (PCB assembly) contributed 28%,
collectively.
During the year under report, the company
has also done well on export front as compared to previous year and achieved a
turnover of Rs.32.8 Millions as compared to Rs. 22.8 Millions in the previous
year.
|
SECURED LOANS |
31.03.2006 |
31.03.2005 |
|
Term Loan |
|
|
|
From Bank and Financial Institutions |
134.424 |
84.158 |
|
Working Capital Loans |
|
|
|
From banks |
517.706 |
263.266 |
|
Loans against Pledge of fixed deposits |
33.910 |
17.640 |
|
Loans against hypothecation of vehicles |
15.513 |
14.546 |
Notes
I. Term loan referred above, to the extent
of Rs. 0.858 Millions (Previous year Rs. 2.469 Millions) from Bank of Baroda is
secured by equitable mortgage on all the immovable properties of the Jaipur
unit of
i the company (excluding the assets financed
by industrial Development Bank of India and Bank of Baroda itself on exclusive
charge basis ) by way of deposit of title deeds and hypothecation
of moveable plant and machinery and other
fixed assets; Rs. 19.753 Millions (Previous year Rs. 30.214 Millions) from
Industrial Development Bank of India Limited is secured by hypothecation of
equipments exclusively financed by IDBI, mortgage of the property of K.C.
Electrometers and negative lien on the FD of Rs. 1 Millions and Rs. 48.210
Millions ( Previous year Rs. 51.475 Millions) from Bank of Baroda is secured by
hypothecation of equipments exclusively financed by BOB. The Term loans are
further secured by personal guarantees of some of the directors and others.
2 Term loan of Rs. 65.602 Millions (Previous
year Rs. Nil) from State Bank of Indore and IDBI Bank Limited is secured by
equitable mortgage on all the immovable properties of the Haridwar unit of the
company; hypothecation of moveable plant and machinery and other fixed assets
of the unit and personal guarantees of some of the directors of the company.
3 Working capital loans under consortium
arrangement from Bank of Baroda, State Bank of India and Punjab National Bank
are secured by way of hypothecation of stocks and book debts of the company
both present and future, charge on the entire unencumbered fixed assets of the
company, collateral security by way of equitable mortgage of 4 immovable
properties of
|
UNSECURED LOANS |
31.03.2006 |
31.03.2005 |
|
Inter corporate
Deposits |
18.500 |
52.310 |
|
From Others |
225.546 |
11.586 |
|
|
244.046 |
63.896 |
Fixed Assets
- Lease Hold Land (Including Site
Development)
- Land at Gandhi Dham
- Building
- Plant and Machinery
- Wind power Project
- Furniture and Fixtures
- Vehicle (Auto, Bus)
- Vehicle (Car, Scooter)
- Office Equipment
- Computer
- Tube Well
- Dies and Modules
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.22 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.58.03 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|