MIRA
INFORM REPORT
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Report Date : |
25.05.2007 |
IDENTIFICATION DETAILS
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Name : |
KIRLOSKAR
PNEUMATIC COMPANY LIMITED |
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Registered
Office : |
Plot
No. 1, Hadapsar Industrial Estate, Pune – 411 013, |
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Country : |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
08.11.1974 |
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Com. Reg. No.: |
11-110307 |
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CIN No.: [Company
Identification No.] |
L29120PN1974PLC110307 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEK01506B |
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Legal Form : |
It is
a public limited liability company.
The company’s shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturer
of Pneumatic Systems viz. compressed air, air conditioning, refrigeration and
hydraulic power transmission equipment; erection, commissioning and servicing
of company’s products. |
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 : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old established
company having satisfactory track. The
company is a part of medium sized, diversified engineering group known as
Kirloskar Group. Directors are reported as experienced and respectable
businessmen. Trade relations are fair. Payments are reported as 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 : |
Plot
No. 1, Hadapsar Industrial Estate, Pune – 411 013, |
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Tel. No.: |
91-20-26870133/26870341 |
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Fax No.: |
91-20-26870297/26870634/26870514 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot
No. 1, Hadapsar Industrial Estate, Pune – 411 013, |
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Factory 2 : |
Saswad
Industrial Area, Taluka Purandar, District Pune, |
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Factory 3 : |
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DIRECTORS
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Name : |
Mr.
Sanjay C. Kirloskar |
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Designation : |
Chairman
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Name: |
Mr.
S. G. Chitnis |
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Designation: |
Executive
Vice-Chairman |
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Name: |
Mr.
H. R. Mustikar |
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Designation: |
Managing
Director |
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Name: |
Mr.
Rahul C. Kirloskar |
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Designation: |
Director
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Age: |
41
Years |
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Experience: |
15 Years
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Name: |
Mr.
Vikram S. Kirloskar |
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Designation: |
Director |
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Age: |
46 Years |
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Qualification: |
Bachelor of
Science in Mechanical Engineering |
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Name: |
Mr.
J. Y. Tekawade |
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Designation: |
Director |
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Name: |
Mr. A.
C. Mukherji |
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Designation: |
Director |
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Name: |
Mr.
P. S. Jawadekar |
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Designation: |
Director |
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Name: |
Mr.
G. Krishna Rao |
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Designation: |
Director
( Nominee GIC) |
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Name: |
Dr. M K Datar |
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Designation: |
IDBI Nominee |
KEY EXECUTIVES
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Name : |
Mr. Kedar P
Phadke |
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Designation : |
Company Secretary
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SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters
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7048352 |
54.88 |
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Banks,
Financial Institutions, Insurance Companies (Central / State Government
Institutions) |
932037 |
7.25 |
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Other
Corporate Bodies |
1081731 |
8.42 |
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General
Public |
3678233 |
28.64 |
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NRIs |
103985 |
0.81 |
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Total |
12844338 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
of Pneumatic Systems viz. compressed air, air conditioning, refrigeration and
hydraulic power transmission equipment; erection, commissioning and servicing
of company’s products. |
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Products : |
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Exports : |
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Countries : |
Canada,
Kenya, Saudi Arabia, South Africa, South East Asia, Sultanate of Oman, UAE,
UK and USA |
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Imports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Air & Gas Compressors of
all types and ranges including Reciprocating, Centrifugal & Rotary etc.
excluding compressors for Air –
conditioning & Refrigeration |
5646 |
4072 |
2584 |
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Rock Drills |
1800 |
-- |
-- |
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Sump Pumps |
240 |
-- |
-- |
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Pneumatic Tools |
2832 |
-- |
-- |
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Rock Drill Roads |
50000 |
-- |
-- |
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High pressure
compressors |
100 |
25 |
-- |
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Refrigeration
compressors |
1500 |
-- |
-- |
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Hydraulic press |
600 |
600 |
-- |
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Car washers |
2400 |
2400 |
-- |
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Rock Drills and air Legs |
3600 |
3600 |
-- |
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Vaccum pumps |
2400 |
2400 |
-- |
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Car lifts |
600 |
600 |
-- |
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Refrigeration
Compressors, Condensors etc |
1200 |
1146 |
1164 |
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Refrigeration
& Air conditioning Units/Plant including Compressors & Components |
2400 |
49 |
33 |
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Air Conditioning
and Refrigeration Equipment for Transport |
600 |
-- |
10 |
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Power
Transmission Equipment (Torque Converters) |
2400 |
9 |
19 |
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Reverse
Reduction Gears for Marine Gear Engines |
900 |
32 |
33 |
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Reverse
Reduction Gear Units for Industrial & Mobile Application |
1000 |
283 |
213 |
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Controllable
Pitch Propellers & Standard Propellers |
200 |
-- |
-- |
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Fluid
Coupling |
750 |
-- |
-- |
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Tractors
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10000 |
-- |
-- |
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Engines
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10000 |
-- |
-- |
GENERAL INFORMATION
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Suppliers : |
v
Apt Associates & Engineers v
Acme Forging Private Limited v
Acoustic Engineering Company v
Aditya Engineering Company v
Aditya Engineers v
Adroit Enterprises v
Adroit Industries v
Advait Engineering v
Advanced. Design & Prototype Centre P Limited v
Aep Company v
Afcil Industries Limited v
Ajay Engravers v
Ajay Syscon Private Limited v
Akolkar Industries v
Akshay El-Tech Engineers v
Akshay Plastic Industry v
Anant Fabricators v
Aquiline Controls & Systems v
Arkay Frp Products v
Arun Engg Works v
Aruna Agencies v
Ashirwad Enterprises v
Ashish Enterprises v
Asian Engineering Sales Corporation v
Aspolite v
Associated Engineers v
A-Vee Engineers v
B B Garda & Sons v
B G Shirke Construction Technology P Limited v
Baga Industries v
Balapa Mech & Engineering Works ( v
Bestall Engineering Works v
Bhairavnath Engg Works v
Bhairavnath Industries v
Bharat Udyog Kendra v
Britex Engineering Works v
C. S. Engineering Works v
Cenevision Technocrat v
Chemtrols Samil India Private Limited v
Clean O Diesel Services India Private Limited v
Compair Accessories v
Compu Tax Forms Private Limited v
Control Devices v
Cooper Foundry Private Limited v
Cooper Metals Private Limited v
Dag Process Instruments v
Dattatraya Engineering Works v
Day-Ch Engineering v
Delta Enterprises v
Dewas Hydroquip Private Limited v
Doright Engineering v
Dynamic Enterprises v
Electro Flash v
Electro-Flash Industries v
Electronics Systems & Devices v
Emarve Private Limited v
Equip-Maints v
Excel Hydro Pneumatics P Limited v
Fair Tech Engineers v
Ferrotherm Heat Treater v
Fleetguard Filters Private Limited v
Flexican Bellows & Hoses P Limited v
Fortuna Industries v
Fourtech Engineering Enterprises v
Fourtech Engineers v
Gadsing Engineering Works v
Gagangiri Alloys P Limited v
Gole Precision Tools Private Limited v
Grihalaxmi Mttal Industries v
Sheetal Engineers v
Shimoga Pistonrings Private Limited v
Shimpukade Engineering Private Limited v
Shirke Engineering Services Private Limited v
Shital Engineers & Fabricators v
Shivam Engineering Works v
Shivshakti Industries v
Shree Enterprises v
Shree Enterprises(Hadapsar) v
Shree Samarth Engineering Works v
Shree Samarth Enterprises v
Shreeram Engineers v
Shri Balaji Technologies Private Limited |
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No. of Employees : |
820 |
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Bankers : |
v
Bank of v
Bank of v
Bank of v
The United Western Bank Limited v
State Bank of v
Union Bank of v
Punjab National Bank v
ICICI Bank Limited |
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Facilities : |
Note : (Secured Loan) (A) Loan under
Asset Credit Scheme from IDBI, is secured by way of a First Charge on immovable
properties of the Company situate at Hadapsar Industrial Estate, Pune and
Saswad both present and future and by way of hypothecation of all the
movables save & except book-debts, including movable machinery, machinery
spares, tools and accessories, present and future, subject to prior charges
created and/or to be created (i) in favour of Bankers, of the Company's stock
of raw materials, semi-finished goods, consumables, stores and such other
movables as may be agreed to by IDBI for securing borrowings for working
capital requirements in the ordinary course of business and (ii) on specific
items hypothecated to IDBI under its Equipment Finance Scheme and Asset
Credit Scheme. Mortgage of Land and Building to cover immovable properties of
the company situated at Hadapsar Industrial Estate, Pune and Saswad both
present and future. (B) Corporate
Loan from IDBI, is secured by way of a First Charge on immovable properties
of the Company situate at Hadapsar Industrial Estate, Pune and Saswad both
present and future and by way of hypothecation of all the movables save
except bookdebts, including movable machinery, machinery spares, tools and
accessories, present and future, subject to prior charges created and/or to
be created in favour of Bankers, of the Company's stock of raw materials,
semi-finished goods, consumables, stores and, such other movables as may be
agreed to by IDBI for securing borrowings for working capital requirements in
the ordinary' course of business. (C) Rupee Term
Loan from ICICI Bank Limited, is secured by a) Second charge by way of
executing legal Mortgage of immovable properties situate at i) Hadapsar
Industrial Estate, Pune both present and future ii) Saswad within the limits
of Saswad Municipal Corporation both present & future iii) All movable
assets of the Company present and future b) Second Charge by way of Mortgage
by Deposit of Title Deeds by way of constructive delivery in respect of
immovable properties situate at Faridabad c) Corporate Guarantee by M/s.
Kirloskar Oil Engines Limited (D) Cash Credit facilities including fund and nonfund based facilities
are secured by (i) First Charge by way of Hypothecation of Current Assets of
the Company namely stock of Raw Materials, Stock in Process, Semi-Finished
and Finished Goods, Stores and Spares not relating to Plant and Machinery
(Consumable Stores and Spares), Bills Receivables and Book Debts and all
other movables both present and future in the factories premises and Godowns
situated at Hadapsar, Saswad and Faridabad. (ii) Second Charge by way of
Mortgage of Immovable Properties situate at Hadapsar Industrial Estate, Pune
and Saswad. within the limits of Saswad Municipal Corporation in favour of
Consortium Banks.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Dalal
and Shah Chartered
Accountants |
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Address : |
Mumbai,
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Associates : |
v
Kirloskar Proprietory Limited v
Poona Industrial Hotel Limited v
Kirloskar Systems Limited v
The Mysore Kirloskar Limited v
Kirloskar Ghatge Patil Auto Limited v
Kirloskar Brothers Limited v
Kirloskar Electric Company Limited v
Kirloskar Investment & Finance Limited v
Demag Kirloskar Compressors Limited v
Kirloskar Kenya Limited v
Kirsons Trading Pte. Limited |
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Subsidiaries : |
v
Kirloskar Indair Limited v
Kirloskar
McQuay Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10 each |
150.000 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12844338 |
Equity Shares |
Rs.10 each |
128.443 |
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 |
128.443 |
128.443 |
128.443 |
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2] Reserves &
Surplus |
335.196 |
230.239 |
216.184 |
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NETWORTH
|
463.639 |
358.682 |
344.627 |
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LOAN FUNDS |
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1] Secured Loans |
380.016 |
514.381 |
581.577 |
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2] Unsecured
Loans |
20.377 |
27.727 |
78.335 |
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TOTAL
BORROWING
|
400.393 |
542.108 |
659.912 |
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TOTAL
|
864.032 |
900.790 |
1004.539 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
243.756 |
193.835 |
180.869 |
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Capital work-in-progress
|
6.385 |
4.723 |
2.764 |
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INVESTMENT
|
23.968 |
42.968 |
55.600 |
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Technical Know-how
|
36.107 |
27.037 |
30.106 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
366.814
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418.963
|
429.724 |
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Sundry Debtors
|
904.487
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897.712
|
884.100 |
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Cash & Bank Balances
|
74.504
|
5.590
|
8.159 |
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Loans & Advances
|
120.658
|
139.006
|
195.816 |
Total Current Assets
|
1466.463
|
1461.271
|
1517.799 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
918.023
|
860.237
|
842.944 |
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Provisions
|
15.620
|
0.303
|
0.175 |
Total Current Liabilities
|
933.643
|
860.54
|
843.119 |
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Net
Current Assets
|
532.820
|
600.732
|
674.681 |
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MISCELLANEOUS EXPENSES
|
20.996 |
31.494 |
60.517 |
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TOTAL
|
864.032 |
900.790 |
1004.539 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
3110.174 |
2703.568 |
2245.971 |
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Profit/(Loss) Before Tax
|
122.241 |
15.581 |
9.690 |
Provision for Taxation
|
15.621 |
0.000 |
0.000 |
Profit/(Loss) After Tax
|
106.620 |
15.278 |
9.515 |
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Export Value
|
126.735 |
83.246 |
81.486 |
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Import Value
|
373.814 |
313.186 |
210.134 |
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Total Expenditure
|
2987.933 |
2687.986 |
2236.280 |
SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 |
|
Type |
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|
Full
Year |
|
Sales
Turnover |
|
|
3565.600 |
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Other
Income |
|
|
246.700 |
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Total
Income |
|
|
3812.300 |
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Total
Expenditure |
|
|
3221.400 |
|
Operating
Profit |
|
|
590.900 |
|
Interest |
|
|
35.700 |
|
Gross
Profit |
|
|
555.200 |
|
Depreciation |
|
|
32.900 |
|
Tax |
|
|
65.900 |
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Reported
PAT |
|
|
432.800 |
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Dividend
(%) |
|
|
250.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.23 |
1.86 |
2.24 |
|
Long
Term Debt Equity Ratio |
0.75 |
1.28 |
1.36 |
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Current
Ratio |
1.36 |
1.43 |
1.38 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
4.54 |
4.12 |
3.43 |
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Inventory
|
8.62 |
6.98 |
6.85 |
|
Debtors |
3.76 |
3.32 |
2.82 |
|
Interest
Cover Ratio |
2.38 |
1.07 |
1.04 |
|
Operating
Profit Margin (%) |
6.24 |
3.65 |
4.55 |
|
Profit
Before Interest and Tax Margin (%) |
5.50 |
2.89 |
3.69 |
|
Cash
Profit Margin (%) |
3.50 |
0.96 |
1.01 |
|
Adjusted
Net Profit Margin (%) |
2.77 |
0.20 |
0.15 |
|
Return
on Capital Employed (%) |
55.50 |
9.73 |
9.76 |
|
Return
on Net Worth (%) |
24.43 |
1.79 |
1.15 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 393.00 |
|
Low |
Rs. 393.00 |
LOCAL AGENCY FURTHER INFORMATION
History:
K G Khosla Compressors Limited a Kirloskar group of company was
incorporated in Nov.'74 as Khosla Compressors. The name of the company was
changed to K G Khosla Compressors in 1976. Originally the company was promoted
by K G Khosla. Kirloskar Pneumatic Company Limited Acquired additional
20,51,000 equity shares of the company pursuant to SEBI in 1998-99. During the
year 2002, Kirloskar Pneumatic Company merged with the company and the name was
changed to Kirloskar Pneumatic Company.
It manufactures high pressure compressors, air and gas compressors,
refrigeration compressors, hydraulic press vacuum pumps and grey iron castings.
The main product of the company -- air and gas compressors -- are used by steel
plants, fertiliser plants, and by general engineering industry.
The company suffered industrial unrest for a few years and the plant was locked
out between Sep.'91 and Jun.'92. A revival plan was prepared in consultation
with financial institutions, including raising of fresh capital. In Feb.'94,
the company came out with a rights issue at a premium to raise funds for a
voluntary retirement scheme, for the reduction of a part of the high-interest
borrowings and for long-term working capital. The revival plan has been
sucessfully implemented.
In 1997 the Company has improved the technology for gas compressors with the
help of IHI Limited,
In the second half of 1999-2000 the company has taken over the air compressors
business of the Kirloskar Pneumatic Co Limited, on licence. The company has
also entered into a License Agreement with Kirloskar Proprietory Limited to use
the brand name `Kirloskar' on its products, letter heads, etc. which will help
to promote its products in the market.
Other
Information:
Pursuant to the
Scheme of Amalgamation., the members of erstwhile Kirloskar Pneumatic Company
Limited Were allotted 1 (one) equity share of Rs. 10/- each, fully paid up of
KG Khosla Compressors Limited for every 4(four) equity shares of Rs.10/- each,
fully paid up held by them on the record date fixed by the company i.e.
20/8/2002. Company has already forwarded the new share certificates in the
month of October, 2002 to the shareholders of erstwhile Kirloskar Pneumatic Company
Limited without surrendering the old share certificates held by them. You are
therefore requested to please submit the new share certificates for transfer
demat purpose and do not submit the old share certificates issued by erstwhile
Kirloskar Pneumatic Company Limited prior to 25-9-2002, as they are already
been treated as cancelled.
Company has not
issued any new share certificates to the shareholders of K G Khosla Compressors
Limited and forwarded only self adhesive stickers regarding change in the name
of the company i.e. from K G Khosla Compressors Limited to Kirloskar Pneumatic
Company Limited The above certificates are not cancelled, so please do not send
the above certificates to the company for exchange purpose.
Profile of Directors retiring by rotation :
Mr.
Rahul C. Kirloskar, aged 41
years, is a top notch technocrat, associated with Kirloskar Group of Companies
for more than 15 years at senior levels in different capacities. The
Directorship / Committee Membership in other companies of Mr. Rahul C.
Kirloskar is as follows :
|
Name of the Company Kirloskar Brothers Limited Kirloskar Oil Engines Limited Ansal Properties & Infrastructure
Limited Quadrant Communications Limited. Alpak Investment Private Limited. Kirloskar Services Private Limited. Pratibha Communications Private Limited. Foresight Limited |
Board position held Director Director - Export Director Director Director Director Director Director |
Mr. Vikram S. Kirloskar, aged 46 years, graduate from Massachusetts
Institute of Technology,
|
Name of the Company Kirloskar Brothers Limited, Kirloskar Oil Engines Limited, Kirloskar Systems Limited Kirloskar Theratronics Private Limited Kirloskar Toyoda Textile Machinery Private
Limited Toyota Kirloskar Motor Private Limited. Toyota Kirloskar Auto Parts Private
Limited |
Board Position Executive
Director Director Chairman Director Director Director Director |
Operations:
The
Company achieved a turnover of Rs. 3037 million (previous year Rs.
2641million), registering the growth of 15% over the last year.
The Air Conditioning and Refrigeration Division’s turnover was Rs. 1130
millions as compared to Rs. 1031 millions during the last year and have
registered a growth of 11% over the previous year inspite of fierce
competition. The Company has established itself as a leader in design,
manufacture and supply of Air Conditioning and Refrigeration Compressors.
Growth in the Process Gas Division has been very encouraging and systems
designed and supplied by us have been working to the entire satisfaction of our
customers. The business grew upto Rs. 410 millions as against Rs. 260 millions
in the previous year.
The
Transmission Division’s turnover was Rs. 434 millions as compared to Rs. 259
millions during last year and have registered a growth of about 67% over the
previous year and they expect to keep up this momentum in 2006-2007.
During the year shifting of manufacturing facilities of
Rigorous
efforts initiated in the previous year continue in this year also to recover
the past dues and / or to ascertain the reasons for non-recovery. To reflect
the fair position of receivables and to strengthen the discipline in financial
reporting, after making assessment and careful review of these past dues,
irrecoverable debts have been written off during the year under appropriate
heads. Rigorous efforts also resulted in realizing Rs. 7.32 millions from the
bad debts written off in earlier years. Despite this the Company's operations
during the year resulted in profit of Rs.108.42 millions against a profit of
Rs. 15.27 millions during previous year.
Dividend
Company is on a growth path and has embarked upon modernization of its plant by
acquiring new multi-utility machines. To finance this activity, Directors feel
it necessary to conserve funds earned during the year and hence do not
recommend any dividend for the year.
Joint Venture
Company:
The performance of Joint Venture Company Kirloskar McQuay
Private Limited continues to be satisfactory.
Fixed Assets:
v Land
v Building
v Water Tanks and
Pipelines
v Plant and Machinery
v Electrical
Installations
v Furniture and
Fixture
v Vehicles
v Leased Assets
In terms of
consideration of prudence as set out in paragraphs 15 to 18 of AS - 22 ,
considering the history of past losses of erstwhile Kirloskar Pneumatic Company Limited, which
has been amalgamated with the Company, sufficient future taxable income cannot be
estimated with virtual or reasonable certainty. The Company therefore has not
recognised Net Deferred Tax Asset in the Financial Statement for the Year ended
As Per Website
K
G Khosla Compressors Limited a Kirloskar group of company was incorporated in
Nov.'74 as Khosla Compressors. The name of the company was changed to K G
Khosla Compressors in 1976. Originally the company was promoted by K G Khosla.
Kirloskar Pneumatic Company Limited Acquired additional 20,51,000 equity shares
of the company pursuant to SEBI in 1998-99. During the year 2002, Kirloskar
Pneumatic Company merged with the company and the name was changed to Kirloskar
Pneumatic Company.
It manufactures high pressure compressors, air and gas compressors,
refrigeration compressors, hydraulic press vacuum pumps and grey iron castings.
The main product of the company air and gas compressors are used by steel
plants, fertiliser plants, and by general engineering industry.
The company suffered industrial unrest for a few years and the plant was locked
out between Sep.'91 and Jun.'92. A revival plan was prepared in consultation
with financial institutions, including raising of fresh capital. In Feb.'94,
the company came out with a rights issue at a premium to raise funds for a
voluntary retirement scheme, for the reduction of a part of the high-interest
borrowings and for long-term working capital. The revival plan has been
sucessfully implemented.
In 1997 the Company has improved the technology for gas compressors with the
help of IHI Limited,
In the second half of 1999-2000 the company has taken over the air compressors
business of the Kirloskar Pneumatic Co Limited, on licence. The company has also
entered into a License Agreement with Kirloskar Proprietory Limited to use the
brand name `Kirloskar' on its products, letter heads, etc. which will help to
promote its products in the market.
The Kirloskar Story:
It has now been more than a century since the
Kirloskar story started. They started
with an aim of becoming the pioneers in fields in which our country needed
innovation. In the 100 years and more that they have been in existence as a
family and as an organisation, they've been seminal to Indian agricultural and
industrial development. They gave
The founder and the first factory village
The Kirloskar story starts with Laxmanrao Kirloskar,
the founder. A man who believed that an understanding of one's environment and
reality was essential to the manufacture of path-breaking industrial
implements. From this steadfast belief was born the iron plough, the first
Kirloskar product. Originally intended as an essential aid to agriculture, the
plough soon became an icon of reform and revolution.
A highlight of the early history of the group is
In January 1910, when the Kirloskar were being ousted
from
Two months later, Laxmanrao Kirloskar set foot on 320
million of barren land strewn with cacti and infested with cobras. Driven by
his faith in human ability, Laxmanrao banded together 25 workers and their
families and succeeded in transforming the barren expanse into his dream
village. Ramuanna, Laxmanrao's brother, planned and administered the township,
Shamburao Jambhekar doubled as engineer and all-round healing man,
K.K.Kulkarni, an unsuccessful student, became a manager, treasurer and odd jobs
man, Mangeshrao Rege was the clerk and chief accountant, Anantrao Phalnikar, a
school drop-out flowered into an imaginative engineer. Such was our founder's
faith in the human being that, Tukaram Ramoshi and Pirya Mang, both convicted
dacoits, became the trusted guards of Kirloskarvadi!
The first Kirloskar Group Company
Kirloskar Brothers Limited (KBL) - the first
Kirloskar venture at Kirloskarvadi was to become the base for all of the
Kirloskar Group's subsequent enterprises. It began as the only Indian company
with its own standard products - the fodder cutter and the iron plough, which
competed with the British products.
KBL also manufactured groundnut shellers, sugarcane
crushers and pumps, which were to usher in a new economic order in the Indian
industry. To power these machines, diesel engines, coal gas generators and
electric motors were developed at Kirloskarvadi.
In a display of great versatility, KBL then shifted
its focus to fluid handling and control. As
Playing a part in the War
The intensified boycott of the British goods and the
approaching World War threatened to stop imports of machine tools into
The new generation -Innovation, creation, tradition
From colonialism to independence
An important change, for the country, and for one of
its premier industrial houses, the Kirloskar Group. The altered political
climate of the 1940s heralded the end of the princely patronage for
enterprise.The policy shifts and changes in authority were the order of the
day. This marked a turning point for the group.
Shantanurao Kirloskar, the eldest son of the founder
travelled to Pune to initiate a new aspect of the group's activities - diesel
engines. His experience of trying to secure the land for his factory in Pune
was quite different from his father's in Kirloskarvadi. There was no benevolent
ruler here to bestow acres gratis. Shantanurao had to face the tangle of red
tape and public resistance to acquisition of land for industrial purposes.
Finally, after arguing that factories have a longer
life than human beings Shantanurao Kirloskar won a place for Kirloskar Oil
Engines Limited (KOEL), twelve months after signing an agreement of
collaboration with Associated British Oil Engines Export Limited of
This collaboration, incidentally, was the first of
its kind between an Indian and a foreign company, and signified a bridging of
the technological gap between east and west.
The KOEL factory was incorporated in 1946, and soon
after that gave
To electric motors and pneumatics
The making of the electrical motor. This was the
second of Laxmanrao Kirloskar's long cherished dreams, the first being the
making of an engine. This task was brought to completion by Ravi Kirloskar, his
youngest son, in 1946. Way back then, the authorities whom Ravi Kirloskar had
approached for land were astonished by the request for 25 acres. Today,
Kirloskar Electric Company Limited (KECL) has four plants occupying several
times that acreage.
KECL's logo in the 40's
The setting up of KECL and other Kirloskar companies
saw a major role being played by Nanasaheb Gurjar, a lawyer who made industry
his sole area of operation. Though the development of air compressors was an
established activity at Kirloskarvadi, a full-fledged plant to manufacture the
same was set up at Pune in 1958, under the eventual management of Shreekant
Kirloskar, Shantanurao's youngest son. In collaboration with Broom and Wade of
England, Kirloskar Pneumatic Company Limited began the manufacture of air
compressors and pneumatic tools.
Today, its turnkey expertise is sought in almost
every major industrial project in
A new direction - services
The phenomenal success of the Kirloskar name prompted
entrepreneurs and businessmen of the time to approach the group for guidance
and expertise. This gave birth to the concept of formalised engineering
consultancy and a new company - Kirloskar Consultants Limited (KCL) in 1963.
Marking an extension of the group's repertoire from manufacturing to services,
KCL, in its 25 years of operation, has contributed to critical areas such as
defence, irrigation, roads and environment.
This paradigm shift saw the setting up of yet another
service company - Pune Industrial Hotels Limited in 1964, the Kirloskar Group's
first foray into hospitality. This company set up Hotel Blue Diamond in Pune
and began to manage Hotel Pearl in
The dawn of a new millennium
To meet the changing demands of a global business
environment and emerging economic trends, the Kirloskar Group has refocused and
restructured its direction by concentrating on its core segment of agriculture,
water supply, power, and air conditioning. By consciously opting out of
hospitality, advertising and unreal services, the Group has channeled its
potential in these core sectors.
The Group aims at unlocking the strength and value in
the Kirloskar brand and distribution to enhance returns for its stakeholders.
It has identified and is implementing processes that would bring greater
customer focus and competitiveness.
Today, the Kirloskar Group is a
conglomerate with interests across a diverse range of industries. It is still
spurred by the simple yet profound ethic born with Laxmanrao Kirloskar that
where there is will there are many ways.
Air Compressors
- Centrifugal
- Reciprocating(Lubricated & Oil Free)
- Rotary Screw(
- Small (Garage) Compressors
- Railway Brake Compressors/ Expressors
Refrigeration &
Air-Conditioning
- Refrigeration Compressors
- Air-Conditioning Compressors
- Flake & Block Ice Plants
- Transport Air-Conditioning
- Specialised, Custom Built - Screw Compressor Packages
- Turnkey Solutions - Refrigeration & Air-Conditioning systems
Gas Compressor
Packages
- Specialised Reciprocating Gas Compressor Packages for a
wide range of Gases, Hydrocarbons
Transmission
- Locomotive Transmission Units
- Hydraulic Marine Gear Boxes
- Industrial & Windmill Gear Boxes
- Torque Converters
- Traction Gears and Pinions
Chairman
Mr. Sanjay C. Kirloskar
Managing Director
Mr.H.R.Mustikar
Manufacturing
units
Pune, Saswad and
Kondhapuri in the state of
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.40.60 |
|
|
1 |
Rs.80.65 |
|
Euro |
1 |
Rs.54.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
44 |
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 |
|