MIRA
INFORM REPORT
|
Report Date : |
04.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
ABB LIMITED |
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Registered
Office : |
Khanija Bhavan, 2nd
Floor, East Wing, 49, |
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Country : |
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Financials (as
on) : |
31.12.2005 |
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Date of
Incorporation : |
24.12.1949 |
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Com. Reg. No.: |
08-32923 |
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CIN No: |
U32202KA2003PLC032923 |
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TAN No.: (Tax Deduction
& Collection Account No.) |
MUMA19181B |
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PAN No.: (Permanent
Account No.) |
AAACA3834B |
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Legal Form : |
Public Limited
Liability Company. The company's
shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturing of switchgears,
pollution and environment control equipments and
motors/alternators/generators. It is also into manufacture of electrical
items such as motors, transformers, etc. |
RATING & COMMENTS
|
MIRA’s Rating
: |
Aa |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
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 |
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Maximum Credit
Limit : |
USD 35000000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company of Brown Boveri Group. Available information indicates high financial
responsibility of the company.
Financial position of the company is good. Payments are always correct and as per
commitments. The company’s can
be considered good for business dealings against usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Khanija Bhavan, 2nd
Floor, East Wing, 49, |
|
Tel. No.: |
91-80-22254546
/22250295/22254543 |
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Fax No.: |
91-80-22281103 |
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E-Mail : |
ashay.khandwala@in.abb.com |
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Website : |
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Corporate
Office : |
Khanija Bhavan, 2nd
Floor, East Wing, 49, |
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Tel. No.: |
91-80-22254546
/22250295/22254543 |
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Fax No.: |
91-80-22281103 |
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|
|
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Factory 1 : |
v
Nos.
5 & 6, Peenya Industrial Estate, Phase II, v
P. O.
& Village Jalkhura, v
Plot
No. 22A, Shah Industrial Estate, Off v
Plot
No. 79, Street No. 17, MIDC Industrial Estate, Satpur, Nashik - 422 007, v
Maneja,
Vadodara - 390 013, v
32,
Industrial Area, v
Village
Numbal, 110, |
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Marketing and |
Located at : Chandigarh,
Delhi, Jaipur, Udaipur, Vadodara, Mumbai, Pune, Bangalore, Coimbatore, Kochi,
Lucknow, Kanpur, Bhopal, Nagpur, Hyderabad, Chennai, Vishakhapatnam,
Bhubaneshwar, Kolkata and Jamshedpur. |
DIRECTORS
|
Name : |
Mr. Dinesh
Paliwal |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ravi Uppal |
|
Designation : |
Vice Chairman and Managing Director |
|
Age : |
49 years |
|
Qualification
: |
B.Tech (Electrical & Electronics), M.B.A. |
|
Experience : |
27 years |
|
Date of
Appointment : |
01.10.2001 |
|
Previous
Employment : |
Volvo India Private Limited – Managing Director |
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|
|
|
Name : |
Biplab Majumder |
|
Designation : |
Executive Director (w.e.f. |
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|
Name : |
Mr. N. S.
Raghavan |
|
Designation : |
Director |
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Name : |
D |
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Designation : |
Director (w.e.f. |
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|
Name : |
K Sridhar |
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Designation : |
Director (w.e.f. |
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|
Name : |
Mr. Nasser Munjee |
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Designation : |
Director |
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|
Name : |
Mr. Umesh Prasad
Singh |
|
Designation : |
Director |
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|
Name : |
Mr. Peter Smits |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Tom E.
Sjoekvist |
|
Designation : |
Director |
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|
|
|
Name : |
Bernhard Jucker |
|
Designation : |
Director (w.e.f. |
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|
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|
Name : |
Mr. Peter Leupp |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. R. N.
Bharadwaj |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. B. Gururaj |
|
Designation : |
Company Secretary |
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MANAGEMENT
COMMITTEE : |
|
|
|
|
|
Mr. I. K. Sadhu |
Power Technologies – Systems |
|
Age |
58 years |
|
Qualification |
B. Sc. (Engineering) |
|
Experience |
38 years |
|
Previous
Employment |
Bharat Heavy Electrical Limited (Commercial Engineer) |
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|
|
|
|
Corporate Management Committee |
|
Mr. Amresh Dhawan |
Power Technologies – Products |
|
K Rajagopal |
Corporate Management Committee |
|
Mr. Biplab
Majumder |
Automation Technologies |
|
Mr. Bazmi Husain |
Automation – Control Platform Products and Research and Development |
|
Mr. V. Swamy |
Building Systems and Group Service Centre |
|
|
Corporate Management Committee |
|
Mr. P. P. Gomes |
National Service Organization |
|
Mr. K. S. S.
Rajan |
Marketing |
|
K. Rajagopalan |
Finance |
|
Mr. P. C. Rajiv |
Human Resources |
|
Prakash
Kanagalekar |
Corporate Management Committee |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
ABB Asea Brown
Boveri Limited, Zurich & ABB |
2,20,84,057 |
52.11 |
|
NRIs / OCBs |
53885 |
0.13 |
|
Directors and
their relatives |
472 |
0.00 |
|
LIC / UTI / Other
Insurance Companies |
5949298 |
14.04 |
|
Nationalised
Banks / Other Banks |
99288 |
0.23 |
|
Mutual Funds |
1842558 |
4.35 |
|
Foreign
Institutional Investors |
6849582 |
16.16 |
|
General Public |
5502535 |
12.98 |
|
TOTAL |
42381675 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing of
switchgears, pollution and environment control equipments and
motors/alternators/generators. It is also into manufacture of electrical
items such as motors, transformers, etc. |
|
|
|
|
Exports to : |
|
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Motors/Alternators/Generators
upto 20 MW |
HP |
1464945 |
1322348 |
|
Switchgear of all
types |
Nos. |
4174000 |
4150963 |
|
PLCC Equipment |
Nos. |
2850 |
1058 |
|
Measurand
Convertors |
Nos. |
-- |
-- |
|
Multiplexures |
Nos. |
100 |
66 |
|
Telemetering
Equipments |
Nos. |
150 |
26 |
|
Turbochargers |
Nos. |
200 |
138 |
|
Power Transformers |
MVA |
10000 |
5555 |
|
Electronic
Control and Supply Units for Variable Speed Drivers and other applications |
Nos. |
70000 |
55235 |
|
Mini
Computer/Microprocessor based Systems |
Value Rs. in ‘000 |
1000000 |
999564 |
|
Non-Microprocessor
Based Electronics (Analog and Digital) for Weighing, Batching and Force
Measuring Systems and Sub Systems |
Value Rs. in ‘000 |
70000 |
36670 |
|
Power Capacitors
of all types |
MVAR |
3700 |
2810 |
|
Robotics |
Nos. |
15 |
1 |
|
Control Valves |
Nos. |
-- |
-- |
|
Gas Analysers and
Systems |
Nos. |
300 |
184 |
|
Process Control
Instruments |
Nos. |
24975 |
22391 |
GENERAL INFORMATION
|
No. of
Employees : |
3,200 |
|
|
|
|
Bankers : |
v
ICICI Bank Limited v
Canara Bank v
IDBI Bank Limited v
HDFC Bank Limited v
Hongkong and Shanghai Banking Corporation Limited v
Union Bank of v
Standard Chartered Bank |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors : |
S. R. Batliboi
& Company Chartered
Accountants |
|
|
|
|
Associates : |
v
ABB ( v
ABB
(HongKong) Limited v
ABB
(Pty) Limited, v
ABB
A/S, Skovlunde, Danmark v
ABB
AG, v
ABB
AS, Automation Technology Products, v
ABB
AS, v
ABB
Asia Pacific Services Limited, v
ABB Assist
AB, v
ABB
Australia Pty Limited v
ABB
Automation Company Limited, v
ABB
Automation E. C., v
ABB
Automation Inc, v
ABB
Automation Products, v
ABB
Automation Technology Products, AB v
ABB
Beijing Drive Systems Company Limited v
ABB
Business v
ABB
Calor Emag Hochspannung GmbH v
ABB
Capacitors AB, v
v
ABB
Control Valves Inc. v
ABB
Control, Siege v
ABB
Corporate Management Services AG, v
ABB Distribution
Limited, v
ABB
EJF S.R.O. v
ABB
Electrical Company S. A. L., v
ABB
Electrik v
ABB
Energy Automation S. P. A., UAE v
ABB
Energy Engineering AG v
ABB
Engineering Technologies Company, v
ABB
Eutech Limited, v
ABB Group
Process Limited, v
ABB
Group Services Center S.A.E., v
ABB
High Voltage Company S.A.E., v
ABB
Hochspannungstechnik, v
ABB
Holdings ( v
ABB
HongKong Limited |
|
|
|
|
Membership : |
Confederation of
Indian Industry |
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|
|
|
Parent Company
: |
ABB Asea Brown
Boveri Limited, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
42500000 |
Equity Shares |
Rs. 10 each |
Rs. 425.000 millions |
|
750000 |
11% Redeemable 10
year, Cumulative Preference Shares |
Rs. 10 each |
Rs. 75.000 millions |
|
|
TOTAL |
|
Rs. 500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
42381675 |
Equity Shares |
Rs. 10 each |
Rs.423.817 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
423.817 |
423.817 |
423.800 |
|
|
3] Reserves &
Surplus |
8617.462 |
6822.800 |
5617.700 |
|
NETWORTH
|
9041.279 |
7246.617 |
6041.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
26.957 |
14.312 |
29.600 |
|
|
2] Unsecured
Loans |
0.310 |
0.620 |
71.400 |
|
TOTAL
BORROWING
|
27.267 |
14.932 |
101.000 |
|
|
DEFERRED TAX
LIABILITIES |
84.271 |
132.271 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
9152.817 |
7393.820 |
6142.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
2266.611 |
1900.047 |
1597.400 |
|
Capital work-in-progress
|
384.239 |
49.296 |
102.700 |
|
|
|
|
|
|
|
INVESTMENT
|
871.503 |
1069.669 |
585.900 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
2015.803
|
1682.855 |
1118.000 |
|
|
Sundry Debtors
|
10292.566
|
6263.322 |
4695.800 |
|
|
Cash & Bank Balances
|
4009.654
|
4167.509 |
2806.600 |
|
|
Loans & Advances
|
2278.328
|
887.033 |
990.100 |
|
|
Other current Assets
|
1274.843
|
1063.106 |
0.000 |
Total Current Assets
|
19871.194 |
14063.825
|
12007.700 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
13728.741
|
9279.280 |
5817.100 |
|
|
Provisions
|
511.989
|
409.737 |
303.700 |
Total Current Liabilities
|
14240.730 |
9689.017
|
8151.200 |
|
Net
Current Assets
|
5630.464 |
4374.808
|
3856.500 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
9152.817 |
7393.820 |
6142.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
Sales Turnover [including other income]
|
30141.383 |
23055.716 |
15170.300 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
3394.770 |
2403.191 |
1761.900 |
Provision for Taxation
|
763.076 |
860.000 |
520.000 |
Profit/(Loss) After Tax
|
2186.770 |
1543.191 |
1241.900 |
|
|
|
|
|
Export Value
|
2631.694 |
3184.556 |
3657.133 |
|
|
|
|
|
Import Value
|
6862.943 |
6195.666 |
3599.323 |
|
|
|
|
|
Total Expenditure
|
26746.613 |
20690.516 |
13408.400 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.12.2006 |
|
Type |
|
|
Full
Year |
|
Sales
Turnover |
|
|
4,2740.100 |
|
Other
Income |
|
|
736.900 |
|
Total
Income |
|
|
4,3477.000 |
|
Total
Expenditure |
|
|
3,7973.000 |
|
Operating
Profit |
|
|
5504.000 |
|
Interest |
|
|
07.200 |
|
Gross
Profit |
|
|
5496.800 |
|
Depreciation |
|
|
264.700 |
|
Tax |
|
|
1748.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
1st
Qtr |
|
Sales
Turnover |
|
|
1,3124.400 |
|
Other
Income |
|
|
151.700 |
|
Total
Income |
|
|
1,3276.100 |
|
Total
Expenditure |
|
|
1,1842.600 |
|
Operating
Profit |
|
|
1433.500 |
|
Interest |
|
|
10.000 |
|
Gross
Profit |
|
|
1423.500 |
|
Depreciation |
|
|
86.200 |
|
Tax |
|
|
457.000 |
|
Reported
PAT |
|
|
866.300 |
200703: Expenditure Includes (Increase) / Decrease in Stock
in Trade Rs (97.069) million Consumption of Materials & Costs of Erection
Services Rs 9847.801 million Personnel expenses Rs 698.031 million Other
expenditure Rs 1393.848 million Tax Includes Provision for Current Tax Rs
434.000 million Deferred Tax Rs 14.000 million Fringe Benefit Tax Rs 23.000
million EPS is Basic and Diluted Status of Investor Complaints for the quarter
ended March 31, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 62 Complaints disposed off during the quarter 62
Complaints unresolved at the end of the quarter Nil 1. This statement has been
taken on record at the meeting of the Board of Directors of the Company held on
KEY RATIOS
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
Debt Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Long Term Debt Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Current Ratio |
1.40 |
1.45 |
1.51 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
8.63 |
7.63 |
5.16 |
|
Inventory |
17.30 |
16.76 |
12.48 |
|
Debtors |
3.87 |
4.21 |
2.90 |
|
Interest Cover Ratio |
26.33 |
35.28 |
34.37 |
|
Operating Profit Margin (%) |
11.75 |
10.94 |
13.61 |
|
Profit Before Interest and Tax Margin (%) |
11.03 |
10.11 |
12.36 |
|
Cash Profit Margin (%) |
7.56 |
7.14 |
9.71 |
|
Adjusted Net Profit Margin (%) |
6.83 |
6.31 |
8.46 |
|
Return on Capital Employed (%) |
44.04 |
37.78 |
32.78 |
|
Return on Net Worth (%) |
27.36 |
23.78 |
22.90 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.2590/- |
|
Low |
Rs.2525/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY :
Subject was engaged
in the manufacture of electrical items such as motors, transformers, etc. It
entered into a technical collaboration with Brown Boveri and Company,
Switzerland, in 1962, as a result of which, the company acquired the name
Hindustan Brown Boveri, Asea, incorporated in 1950 as Asea Electric India
Private Limited, had a collaboration with Asea, Sweden. As a result of the
merger of
The collaborator
ABB Asia Brown Boveri,
Subject had been in
the railway transportation business manufacturing components of electric
locomotives for many years. ABB Group
and
The company is
having eight manufacturing facilities, twenty six marketing offices, eight
service centres and developed a national network of 400 channel partners, to
ensure deeper market penetration. All its manufacturing facilities are ISO
14001 certified units.
In 1999, the
company demerged and transferred its power generation business to Asia Brown
Boveri Management Limited and its' name changed to ABB Alstom Power India
Limited.
In 1999-2000, the
company obtained ISO 14001 Certificate for its manufacturing units at Peenya
and Andheri. The company had merged its
four subsidiaries, ABB Instrumentation, ABB Analytical, ABB Lenzohm Service and
Introl (
The company’s Group
is selling their Air Handling equipment business worldwide to Global Air
Movement (Luxemburg) SARL. This sale
also includes the Fans Business (a part of the Air Handling equipment
portfolio) which is represented in
The company has
divested its business from Air handling equipment and the proceedings were
invested in Bonds of Rural Electrification Corporation Limited to the extent of
Rs. 215 millions. The total amount realised from divestment of Air handling
equipment business were Rs. 295 millions.
BUSINESS
:
Subject is engaged
in manufacturing of switchgears, pollution and environment control equipments
and motors / alternators / generators.
Subject also
manufactures a wide range of electrical, mechanical and electronic equipment
and executes projects for power generation, transmission and electrification.
The subject is also
engaged in the manufacture of electrical items such as motors, transformers,
etc.
Generic Names of
the Principal Products of the company are :
Item Code No.
|
Product Description
|
|
85.35 |
Switchgears of
all types |
|
85.04 |
Electronic
Control and Supply Units for Variable Speed Drives and other applications |
|
85.01 |
Motors / Alternators
/ Generators upto 20 MW |
The company is in
trade terms with :
v
A. K.
Engineering
v
Abhay
Engineering Industries
v
Accutech
Auto Private Limited
v
Adept
Fluidyne Private Limited
v
Advance
Electronics Systems
v
Advance
Engineering – Fab. Industries
v
Aero
Pack Corporation
v
Agate
Electrofab Engineering Private Limited
v
Excel
Engineering Private Limited
v
Monal
Equipment Engineers Private Limited
v
Empkee
Engineers (Private) Limited
v
Diamond
Engineering (Chennai) Private Limited
v
Dhananjay
Metal Industries Private Limited
v
Electronic
Relays India Private Limited
v
Sri
Ganesh Switchgears Private Limited
v
Specialised
Components Private Limited
v
Sealvel
Rubber Products Private Limited
v
R. C.
Das Engineering Private Limited
v
Vim Sun
Gears Private Limited
v
Elcot
v
F. S.
Engineers
v
Garda
Tools
The company has
collaboration with the following:
v
ABB
Automation AB,
v
ABB
Capacitors AB,
v
ABB
Distribution AB,
v
ABB
Drives AB,
v
ABB
High Voltage Cables AB,
v
ABB HV
v
ABB
Relays AB,
v
ASEA
AB,
The company’s fixed
assets of important value include freehold land, leasehold land, leasehold
improvements, factory buildings, residential quarters, plant & machinery,
furniture & fixtures, vehicles and capitalised software.
Dividend
Your Directors
recommend payment of a dividend at the rate of Rs.8 (previous year Rs 7.00) per
equity share for the year ended
Performance Review
Orders received
during the year at Rs 37,645 million were 45% higher compared to Rs 25,878
million in the previous year. Orders backlog at the end of 2005 was healthy at
Rs 21,032 million compared to Rs 13,356 at the end of previous year. Sales and
other income for the year were higher by 31% at Rs30,141 million compared to Rs
23,056 million in the previous year. Profit before tax and exceptional item was
significantly higher at Rs 3,395 million compared to Rs 2,365 million in the
previous year. Growth in profit was mainly attributable to volume growth,
operational efficiencies and higher interest income from short and long term
investments.
Profit after tax at
Rs 2,187 million for the year has improved by 42% compared to Rs 1,543 million
in the previous year. Earning per equity share of face value of Rs 10
correspondingly improved to Rs 51.60 compared to Rs 36.41 in the previous year.
Operating
performance of both the core segments, power technologies and automation technologies
was significantly better than previous year. For detailed analysis of the
performance, please refer to management's discussion and analysis section of
the annual report.
Divestment
of Business
As approved by the shareholders earlier, the Company has divested its Control
Valves business to Kent Introl Private Limited on
CHANGE OF NAME AND REGISTERED OFFICE OF THE COMPANY :
The name of the
Company was changed from Asea Brown Boveri Limited to ABB Limited with effect
from
Future plan
of action :
Continuous efforts are being made for integration of R&D activities with
business needs so as to offer better value added products and services to our
customers. The areas of efforts include:
Universal speech interface and multiplexer for carrier communication equipment,
development of new foil and film for power capacitors, design improvements for
SSX and VHXm relays, time lag relays for diesel locomotives, 12kV auto
reclosure, 36kV air switch, forced cooling arrangement for VSD motors, oil
immersed type fuse and internal breaker for transformers, higher ratings of
STATCONs, LTB 245 E1 breaker certification for introduction in local markets,
flame proof motors in frames JHX90, JHX80 & JHX180, 2 pole ratings of frame
M2BA400L, enhanced ratings of M3BP280 frame of M3000 series motors, improved
12kV switchgear cubicle, numeric relay platforms, 66kV and 132kV CTs with
casted terminal blocks and 145kV and 72.5 kV GOB type transformer bushing with
500 BCT.
Operating Results of the Company
During
the year 2005, the Company secured orders worth Rs 37,645 million, 45 per cent
higher than the previous year's orders of Rs 25,878 million. The core business
segments of the Company i.e. Power Technologies and Automation Technologies,
both posted significant growth during the year, supported by continued power
sector reforms and increased momentum in the industrial sector. The product
business grew substantially and the company added capacity
across locations.
While maximising domestic market presence, the company's export performance was
also encouraging. As a result of healthy order intake, the company's order
backlog was further augmented by 57 per cent to Rs 21,032 million as compared
to Rs 13,356 million at the beginning of the year. The Company posted a strong
top-line performance with revenues of Rs 30,141 million for the year,
registering a growth of 31 per cent over the previous year. The Company's
strategic initiatives aimed at market penetration and range expansion continued
to yield results, both in terms of existing businesses as well as enhanced
contribution of new revenue streams. Profit before tax and exceptional items
was Rs 3,395 million as compared to Rs 2,365 million the previous year. Volume
growth, operational efficiencies and higher financial income resulted in this
healthy profit improvement.
Net profit after
tax at Rs 2,187 million for the year was 42 per cent higher than last year.
Earnings per equity share (face value Rs 10) was also significantly higher at
Rs 51.60 compared to Rs 36.41 in the previous year. The Company carried out
significant expansion of manufacturing capacities and continued to expand its
range of offering, introducing several new products during the year. In
addition to capacity and range expansion, the Company also upgraded and
modernised many of its manufacturing and office facilities in
order to enhance
efficiency and productivity.
Outlook for the
Company
With
Business Segment Analysis:
ABB is a global leader in power and automation technologies that enable
utility and industry, customers to improve performance while lowering
environmental impact. The Company's portfolio includes products, systems and
service solutions offered through its two core segments i.e Power Technologies
Segment (PT) and Automation Technologies Segment (AT). The distribution of
revenues is as under.
2005 2004
Power Technologies 62% 60%Automatic, Technologies 38%
40%
Power Technologies Segment (PT)
The summarized performance of the segment is as under. (Rs.
in Millions) 2005 2004
Orders Received 23,916 17,119Order Backlog 15,503 10,523Revenues 18,762
14,008Result 1,943 1,377
The year 2005 saw continued buoyancy in the market for Power systems and
products. Government locus on power capacity addition, improved grid
reliability and efficiency, reduction of transmission and distribution losses,
augmentation of national grid and rural electrification continues to support
the Company's grown in the power technologies segment during the year.
Investments in the power distribution sector continued boosting the demand for
medium voltage and distribution automation products, distribution transformers
etc HV products and power transformers also saw increased demand as substation
activity picked up, across states.
Orders received by this segment grew by 40 per cent and revenues were
higher by 34 per cent. The National Electricity Policy focuses on reliable,
affordable and quality power for all by the year 2012. In 2005, the central
Government also launched the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
for building the rural power infrastructure.
Some significant orders received during the year included an APDRP
project from JVVNL for a feeder renovation program; from PVVNL/MVVNL for RGGVY
projects and from BESCOM for Rural Load Management Systems. The segment also
received orders for transmission and distribution substations from PGCIL to
deliver turnkey solutions for 400 kV substations. NTPC placed orders on the
Company for up gradation of control and instrumentation at their Farakka,
Singrauli and Vindhyachal thermal power stations and Enercon placed orders for
wind farm distribution substations. Several significant power product orders
were also received during the year including an order for revamping of 12 Nos
33 kV substations from UPPCL and from NTPC for the Bahr Super Thermal Power
Station far 11 kV and 3.3 kV indoor switchgear.
Major projects executed during the year, included 400 kV substations at Vapi,
Boisar, Narendra and Rihand for PGCIL as well as APDRP Projects of Bescom and
Hescom. The Company also supplied a state-of-the-art substation automation
system based on REX 670 platform with IEC 61850 protocol for two 400 kV
substations of PGCIL -a global first for ABB. During the year, the 500 MW back
to back HVDC vizag project for PGGIL was successfully commissioned.
Electrification and control systems, including a SCADA solution was provided
for the recently inaugurated Delhi Metro's prestigious extension project
covering 23 KM section between Berekhemba to Dwarka. The first 400 KV/220 kV,
315 MVA auto-transformer was also commissioned in Andhra Pradesh.
A new power transformers insulation kit manufacturing facility was
commissioned in Helol,
During the year, the Power Technologies R&D centre participated in
several global product development projects. This centre has been given lead responsibility
for development of a specified range of distribution automation relays.
Despite favourable market conditions and drive level, profitability,
remained under pressure due to continuous increase in prices of input materials
and active competition. Some domestic competitors are extending their reach and
entering new areas as well as augmenting their manufacturing and engineering
capabilities.
To strengthen its domestic position and strengthen its international
presence, several strategic initiatives are underway. This includes
strengthening of project execution and management processes, power plant
solutions offering, augmentation of manufacturing capacities and range
expansion as well as a continued focus on operational excellence and cost base
optimization.
Automation Technologies Segment (AT)
The summarized performance of the segment is as under.
(Rs. in Millions)
2005 2004
Orders Received 14,297 8,932Order Backlog 5,508 2,903Revenues 11,655
9,205Result 1,387 957
During the year, industrial climate in
Major orders received during the year included an order for the newly
launched 800 XA system from Reliance Industries; for refining applications from
Essar; a blast furnace automation solution in Nigeria for Ispat group; supply
of electric and automation solutions for a compact cold mill from the Jindal
group; 2 X 90 KA rectifier order from Hindalco and MV drives for Kirloskar
Brothers for a large water project.
Execution and commissioning of large projects during the year included a
TISCO rebar mill, 17 km long belt conveyer for
In line with the Company's strategic thrust on market penetration and
range expansion, during the year revenues from standard products grew by over
50 per cent and significantly contributed to profitability of the segment.
Major capacity expansion projects under execution include motors, low voltage
products as well as distribution electricals and electrical wiring accessories.
Product range expansion during the year included ACS 550 drives,'A' range
Contactors and to AG 50 PLC among others.
The channel partner network was further expanded to over 530 during the
year and 'e'-initiatives continued to yield good results. A Channel Business
team has bean put in place to provide dedicated focus to the Company's fast
growing channel business.
A global automation operations and engineering centre was also
established during the year in
Increasing per capita consumption of steel, non-ferrous metals , paper
and several other basic commodities, building activity and infrastructure
development global aspirations, increased focus on quality, productivity,
efficiency and aesthetics are some of the factors that call for increased
leveraging of automation technologies and auger well for the Company's process
automation as well as products business i.e, HV machines, LV motors, drives, LV
Switchgear & control-gear instrumentation and analytic etc.
In addition to its continued focus on turnkey automation solutions for
the growing domestic industrial sector, the segment plans to continue with its
product and service thrust with ongoing initiatives for market penetration,
capacity and range expansion, product indigenisation, focus on operational
excellence. Domestic growth will also be supported by increased focus on
regional and global contribution. The Company continues to remain customer
focused to sustain its competitive advantage through constant innovation and
technology development.
The overall outlook for the segment is positive and the Company a
optimistic on continued growth.
Building System
Building System business providing integrated building management
solutions covering lighting, networking, heating, ventilation, air
conditioning, electrical installations, energy management fire alarm,
protection system and other building facilities and solutions to various
customers across the sectors, included in under PT and AT segments, performed
extremely well during the year. Significant activities were seen in the areas
of shopping malls, multiplexes, IT & biotech parks, pharma health care,
corporate buildings. etc, Major orders received during the year includes from
Wipro Technologies, Maruti Udyog, DMRC and
Finance
The Company continued to focus on endorsing its working capital, which
resulted in a further improvement in the cash position. Net cash position (cash
and bank balances less loan fund) at the end of the year had significantly
increased to Rs 4,036 million compared to Rs 2,144 million at the end of the
previous year, after adjusting for effect of factorization arrangement in the
previous year. Surplus funds, not committed to operations, were deployed in
Government securities, tax free bonds and short term fixed deposits with
reputed banks, ensuring security and liquidity. The expenditure of Rs 903
million, on fixed assets, during the year was fully financed from internal
accruals. Net financial income during the year was Rs 166 million (previous
year Rs 143 million) including income from certain interest arbitrage actions.
Foreign exchange management, obtaining of guarantees from banks and certain
payment disbursements processes were optimized and automated in collaboration
with Company's bankers.
PRESS
RELEASES :
ABB
to set up engg centre in B’lore
ABB,
the leading power and automation technology group, announced its decision to
establish a dedicated engineering and operations centre in
The new facility will be managed by the Group's Indian subsidiary and will
serve as a vital resource base for ABB units across the world, according to a
press release issued here on Wednesday.
The Centre’s main scope of operations will include the development and
execution of system and engineering solutions to support automation activities
across the ABB group.
This centre will enable ABB to further leverage the intellectual capital,
technical skills and competitive cost structure offered by
The new engineering and operations centre, expected to be established in early
2005, will initially target a phased build up to around 500 man-years of
engineering and systems support to other ABB operations, over the next few
years. The centre will focus on activities including project-based engineering
services, material cost migration to high-productivity countries, enabling
systems for supply chain management and information technology, as well as
development projects.
A multinational team from ABB's automation business will facilitate exchange of
technology between the new centre and other ABB units as well as help foster
best practices.
ABB
receives Star MNC award in India
2006-04-20
ABB has been rated
as the STAR MNC 2005 by Business Standard, one of
"As a pioneer
of the ‘think global – act local’ philosophy, ABB is a global leader operating
in more than 100 countries and is very much ‘at home everywhere’. Diversity and
multiculturalism are embedded in the company’s basic culture and business
approach, regardless of where we operate. In fact,
to drive home this point, ABB is moving away from
the Made in
In his eloquent and
address, Finance Minister P.Chidambaram, lauded the spirit of entrepreneurship
and commended the achievement of the winners. “As we honour
“The world beckons
ABB
2007, Q1 Revenues up 62 per cent ; Net Profit up 69 per cent ; Orders up 43 per cent
|
|
Q1, 2007 |
Q1, 2006 |
% chg |
|
Orders |
20003 |
14019 |
43 |
|
Revenues |
13276 |
8209 |
62 |
|
Profit before tax |
1337 |
810 |
65 |
|
Profit after tax |
866 |
513 |
69 |
|
Earnings per equity share - Rs. |
20.44 |
12.11 |
68 |
Figs. in Rs. million unless stated otherwise
Orders
The company registered a record order intake of 20,003 MINR during the first quarter ending
“We have succeeded in maintaining our top line growth momentum and our g order intake is promising for the future. Meanwhile, we remain
focused on ensuring that our growth remains profitable and sustainable”, said Mr. Ravi Uppal,
Vice Chairman and Managing Director, ABB India
presenting the company’s first quarter results. “
Order Backlog
The Company further strengthened its order backlog to 42596 MINR as compared to 33723 MINR at the beginning of the year and 26743 MINR as at 2006 Q1, reflecting the robust order intake and providing revenue visibility for the coming quarters.
Revenues
Meanwhile, the revenue
acceleration continued and revenues of 13276 MINR were recorded for the quarter, reflecting a growth of 62 per cent growth compared with 2006
Q1. This resulted both from the conversion of order backlog and the consistent
order intake, across projects, products and services.
Net Profit
Net profit after tax at 866 MINR was 69 per cent higher than the first quarter of 2006, mainly resulting from higher revenues, operational efficiencies and an ongoing focus on costs.
ABB (www.abb.com) is a leader in
power and automation technologies that enable utility and industry customers to
improve performance while lowering environmental impact. The ABB Group of companies
operates in around 100 countries and employs about 108,000 people.
ABB India enters billion dollar
league Bangalore, 16th February, 2007
ABB India’s cumulative order intake
of 56236 MINR (appx.1.3 BUSD) for the year 2006 grew 50 per cent over the
previous year, taking it into the elite billion dollar league. The Indian
operations also accelerated revenue growth momentum with cumulative revenues of
43477 MINR growing 44 per cent over 2005.
Taking
into account Group business, ABB in India clocked revenues in excess of a
billion dollars during the year. Even after taking into account the strong
revenue growth, the company managed to strengthen its order backlog further to
33723 MINR, 60 per cent higher than at the beginning of the year..
Keeping pace with top-line growth, the Indian operations recorded an equally
impressive growth in profitability. Net profit after tax was 3403 MINR for the
year ending 31st December 2006, registering a 56 per cent growth over the
previous year. Improvement in profitability.
“ABB in India is certainly a jewel in ABB’s crown and among our fastest growing
operations around the world. We are increasingly leveraging India, not just as
a market but an important resource and R&D base in line with our global
footprint approach”, said Dinesh Paliwal, President Global Markets &
Technology, who was in India for the results.
“Even as we grow our top-line, focus on productivity and operational efficiencies
will continue to ensure that profitability remains a key priority” said Ravi
Uppal, Country Manager ABB India and Head -SAS Region. “The Indian economy is
on the move, assisted by strong industrial growth. The need for quality power,
delivered efficiently and economically across urban and rural India is now
among the nation’s key priorities. At the same time, Indian industry is
increasingly adopting automation technologies as it scales up. Managing growth
in a profitable and sustainable way is our top priority”, he added.
ABB India wins Rs. 311 crores power
and automation order Bangalore, 8th
February, 2007
Electrics and automation to support cement plant
capacity expansion for Grasim ABB India has been awarded orders worth Rupees 311
crores (3110 MINR) to provide Grasim Industries’ Cement division and Ultratech
Cement , part of the Aditya Birla Group, power and automation products and
systems for their cement capacity expansions.
ABB India will provide turnkey electrical and automation systems including the
installation of 220 / 132 kV switchyards and supply of a range of switchgear,
motors, low and medium voltage drives, power and distribution transformers,
capacitors as well as intelligent LV panels. The project is expected to be
completed by the end of 2007.
ABB solutions will serve two cement plants of 2.8 MTPA capacity each, being set
up by Grasim. This includes a green-field facility at Kotputli , a brown-field
expansion at Shambhupura and two green-field grinding units of 1.3 MTPA each at
Panipat and Dadri. The technology will also facilitate the operations of a 2.8
MTPA brown-field plant expansion at Ultratech Tadipatri Cement works as well as
a grinding unit at Ginegera of 1.3 MTPA capacity and three captive power plants
each of 2x25 MW capacity being established at Kotputli, Shambhupura and
Tadipatri.
“ABB’s solutions will bring significant improvements in energy efficiency and
productivity, enhancing competitiveness as the Indian cement industry rises to
meet global standards”, said Ravi Uppal, Vice Chairman & Managing Director,
ABB India, commenting on the order. “An increased focus on efficiency and
quality have brought home the importance of adopting the latest technologies in
industrial automation”, he added.
ABB (www.abb.com) is a leader in power and automation technologies that enable
utility and industry customers to improve their performance while lowering
environmental impact. The ABB Group of companies operates in around 100
countries and employs about 107,000 people
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 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.40.90 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.55.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
69 |
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 |
|