MIRA
INFORM REPORT
|
Report Date : |
26.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
KEC INTERNATIONAL
LIMITED |
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Registered
Office : |
1st
Floor, CEAT Mahal, 463, Dr. Annie Besant Road, Worli, Mumbai - 400030 |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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CIN No.: [Company
Identification No.] |
L45200MH2005PLC152061 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMK11457F |
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PAN No.: [Permanent Account No.] |
AAACK4279J |
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Date of
Incorporation : |
07/05/1945 |
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Com. Reg. No.: |
11-4421 |
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Legal Form : |
Subject is a
Public Limited Liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line of
Business : |
Manufacturers of
Towers & Structurals. |
RATING &
COMMENTS
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MIRA’s Rating
: |
A |
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RATING |
STATUS |
PROPOSED
CREDIT LINE |
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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 |
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Maximum Credit
Limit : |
USD 10879796 |
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Status : |
Satisfactory |
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Payment Behaviour
: |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old
and well established company engaged in design, manufacture and erection of
Power Transmission Line towers for electric power. Its performance has not been
satisfactory for quite some time and it has incurred substantial losses.
However, during the financial year 2004-2005, the company performed well and
achieved better results. Trade relations are reported as fair. Payments are
currently slow but correct. It can be
considered normal for business dealings of medium size at usual trade terms
and conditions. |
LOCATIONS
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Registered
Office : |
1st
Floor, CEAT Mahal, 463, Dr. Annie Besant Road, Worli, Mumbai - 400030 |
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Tel. No.: |
91-22-56972777
/28204045 |
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Fax No.: |
91-22-56972799/28204052 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Ceat Mahal, 463,
Dr. Annie Besant Road, Worli, Mumbai – 400 030, Maharashtra, India |
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Head Office : |
32, Kamani Chambers,
R. K. Kamani Marg, Ballard Estate, Mumbai – 400 038, Maharashtra, India |
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Factory 1 : |
Located At :
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DIRECTORS
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Name : |
Mr. H. V. Goenka |
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Designation : |
Chairman |
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Address : |
14-16, Patazzo B.
G. Khar Marg, Mumbai – 400 008, Maharashtra |
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Tel No.: |
91-22-23630872 |
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Date of
Birth/Age : |
45 Years |
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Qualification
: |
Arts Graduate and
BA, MBA (Geneva) |
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Other
Directorship : |
Corporation of Maharashtra Limited (SICOM) |
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Name : |
Mr. R. D. Chandak |
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Designation : |
Managing Director |
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Address : |
B/44, Ruia Park,
47, J. R. Mahatro Road, Juhu, Mumbai – 400 049, Maharashtra |
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Date of
Birth/Age : |
58 Years |
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Qualification
: |
M. Com., FCA |
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Name : |
Mr. Anant Swarup
Gupta |
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Designation : |
Director |
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Address : |
B. Gulmohar,
Kalpatary CHS Vile Parle (West), Mumbai – 400 046, Maharashtra |
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Tel No. : |
91-22-26106183/28108224 |
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Qualification
: |
M.B.F.I.A.
(London) |
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Age : |
76 Years |
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Name : |
Mr. Sharad.
Madhav Kulkarni |
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Designation : |
Director |
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Date of
Birth/Age : |
64 Years |
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Qualification
: |
Bechelor of
Engineering : FIE (India) F
Institute of Directors (UK) Fellow-Institute of Management (UK) |
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Other
Directorship: |
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Name: |
Mr. Gulu Lalchand
Mirchandani |
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Designation: |
Director |
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Address: |
22, Paras, Little
Gibs Road, Malabar Hill, Mumbai – 400 006, Maharashtra |
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Age: |
60 Years |
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Qualification: |
B. Mechanical |
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Name: |
Mr. Ajit
Teckchand Vaswani |
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Designation: |
Director |
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Address: |
502, Solitalre Hirandani
Gardens, Powai, Mumbai – 400 076, Maharashtra |
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Age: |
65 Years |
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Qualification: |
CA, CS |
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Name: |
Mr. Jotindra
Mansukhlal Kothary |
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Designation: |
Director |
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Address: |
16 A, Thakur Niwas,
3rd Floor, 173, J. N. Tata Road, Churchgate, Mumbai – 400 020, Maharashtra |
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Age: |
69 Years |
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Tel No.: |
91-22-2881537 |
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Qualification: |
B. Com LLB, MBA
(USA) |
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Name: |
Mr. Murli
Ramchandran |
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Designation: |
Director |
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Address: |
CEAT Mahal, 463,
Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra |
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Age: |
42 Years |
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Qualification: |
B. E. (Hons.), M. M. S., M.S. |
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Name: |
Mrs. Sobha Singh
Thakur |
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Designation: |
Director |
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Address: |
1161, Abdul Court,
Flat No. 20, Suryavanshi Marg, Dadar, Mumbai – 400 028, Maharashtra |
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Age: |
74 Years |
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Qualification: |
M. Com., CAIIB |
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Name: |
Mrs. Neeta
Mukherjee |
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Designation: |
Director
(Nominee- ICICI Bank Limited) |
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Address: |
801, Radhika Apartment,
Off Gayani Road, Prabhadevi, Worli, Mumbai – 400 025, Maharashtra |
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Age: |
38 Years |
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Qualification: |
B. A. (Hons) –
Economics PGDM (IIM Kolkata) |
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Name : |
Mr. Dilip G
Piramal |
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Designation : |
Additional
Director |
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Name : |
Mr. Vinayshil
Gautam |
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Designation : |
Director |
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Name : |
Mr. Ajit Singh
Chouhan |
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Designation : |
Director(Indio and Saarc) |
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Name : |
Mr. Vimol
Kejriwal |
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Designation : |
Director (
International Business) |
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Name : |
Mr. Vardhan
Vasant Dharkar |
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Designation : |
Chief Financial
Officer |
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Name : |
Mr. K. Ramkumar |
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Designation : |
Vice President –
Supply Chain |
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Name : |
Mr. N.
Dharmarajan |
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Designation : |
Vice President –
Human Resource |
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Name : |
Mr. A.
Bhattacharya |
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Designation : |
Vice President –
Execution and Co-ordination (Internation Business) |
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Name : |
Mr. Vijay Sachdev |
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Designation : |
Vice President –
Marketing and Business Development (International Business) |
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KEY EXECUTIVES
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Name : |
Mr. Vimal Kejriwal |
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Designation : |
Chief Financial Officer |
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Date of
Birth/Age : |
43 Years |
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Qualification
: |
B. Com., F.C.A., F.C.S., D.T.M. |
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Experience : |
22 Years |
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Date of
Appointment : |
18.09.2002 |
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Previous
Employment: |
Lazard India Limited – Director |
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Name : |
Mr. Ch. V.
Jagannadha Rao |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Shareholding of Promoter and promoter
Group Bodies Corporate |
13044600 |
34.61 |
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Public Shareholding(Institutions) Mutual Fund/UTI |
9193678 |
24.40 |
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Financial Institutions/Bank |
41839 |
0.11 |
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Insurance
Companies |
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Insurance
Companies |
3309793 |
8.78 |
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Foreign
Institutional Investores |
6168162 |
16.37 |
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Other (Foreign
Banks) |
374 |
0.00 |
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Non Institutions Bodies Corporate |
1759744 |
4.67 |
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1. Individual
Shareholders holding nominal Share capital up to Rs.1 lakh |
3616998 |
9.60 |
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2.Individual
Shareholders holding nominal Share capital excess of Rs.1 lakh |
348133 |
0.92 |
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NRIs/ OCBs |
98253 |
0.26 |
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Clearing Members |
63454 |
0.17 |
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Directors and Relatives |
40826 |
0.11 |
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Total |
37685854 |
100.00 |
BUSINESS DETAILS
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Line of
Business : |
Manufacturers of
Towers & Structurals. |
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Exports to : |
·
UAE ·
Saudi ·
Lebanon ·
Lirya ·
Iraq ·
Iran ·
Kenya ·
Ethoria ·
Tunisia ·
Algeria. |
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Terms : |
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Selling : |
L/C terms |
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Purchasing : |
L/C terms |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Towers &
Structurals |
Tonnes |
74000.00 |
58000.00 |
86419 |
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Scrap |
-- |
-- |
-- |
-- |
GENERAL
INFORMATION
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No. of
Employees : |
1900 |
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Bankers : |
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Facilities : |
Secured Loans (Rs. In millions):
Unsecured Loans :
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Banking Relations : |
Satisfactory |
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Auditors : |
Chartered Accountants Mumbai-400001,
Maharashtra |
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Chartered Accountants (Mumbai) |
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Associates: |
--Power Generation and Distribution
--Tyres
--Power and Tele Cables
--Pharmaceuticals
--EPC Contract for Power Transmission Line
--Information Technology
--Entertainment
--Retail Chain
--Retail Chain for Music
--Industry Carbon Black
--Industry Cellular & Services |
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Subsidiaries: |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Redeemable
Preference Shares |
Rs.100/- each |
Rs.
150.000 millions |
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.
600.000 millions |
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TOTAL |
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Rs.750.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1299966 |
Zero Coupon Non Convertible Redeemable Preference Shares |
Rs.100/-
each |
Rs.129.997
millions |
|
37685854 |
Equity Shares |
Rs.10/- each |
Rs.376.859
millions |
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Total |
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Rs.506.856 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS
FUNDS |
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|
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1] Share Capital |
506.856 |
506.856 |
506.356 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
2213.093 |
1365.088 |
2742.070 |
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4] Profit and
Loss Account |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
2719.949 |
1871.944 |
3248.426 |
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LOAN FUNDS |
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1] Secured Loans |
3863.329 |
3325.288 |
4749.213 |
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2] Unsecured
Loans |
0.900 |
1.043 |
34.921 |
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TOTAL
BORROWING
|
3864.229 |
3326.331 |
4784.134 |
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DEFERRED TAX
LIABILITIES |
334.764 |
208.883 |
64.011 |
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TOTAL
|
6918.942 |
5407.158 |
8096.571 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
4076.245 |
4230.293 |
1409.901 |
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Capital work-in-progress
|
229.200 |
59.643 |
152.172 |
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INVESTMENT
|
285.906 |
204.761 |
874.111 |
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DEFERREX TAX ASSETS
|
44.454 |
7.738 |
192.025 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
1595.689 |
1249.000 |
1064.437 |
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Sundry Debtors
|
9040.917 |
7260.390 |
8440.154 |
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Cash & Bank Balances
|
213.925 |
636.116 |
1660.691 |
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Loans & Advances
|
1717.337 |
1618.721 |
4960.629 |
Total Current Assets
|
12477.868 |
10764.227 |
16125.911 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
9538.815 |
9723.157 |
10518.461 |
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Provisions
|
369.636 |
136.347 |
142.364 |
Total Current Liabilities
|
9908.451 |
9859.504 |
10660.825 |
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Net Current Assets
|
2569.417 |
904.723 |
5465.086 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
3.276 |
|
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|
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TOTAL
|
6918.942 |
5407.158 |
8096.571 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
20406.311 |
17272.490 |
12370.768 |
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|
Other Income |
6.945 |
4.167 |
0.000 |
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Total Income |
20413.256 |
17276.657 |
12370.768 |
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|
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|
Profit/(Loss) Before Tax |
1598.577 |
764.695 |
676.395 |
|
|
Provision for Taxation |
552.165 |
271.686 |
253.769 |
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|
Profit/(Loss) After Tax |
1046.412 |
493.009 |
422.626 |
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Total Earnings |
N.A. |
9259.874 |
N.A. |
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Imports : |
|
|
|
|
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|
Raw Materials |
N.A. |
613.156 |
NA |
|
|
Stores & Spares |
N.A. |
5.324 |
NA |
|
|
Capital Goods |
N.A. |
35.810 |
NA |
|
Total Imports |
N.A. |
654.290 |
N.A. |
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Expenditures : |
|
|
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Raw Material Consumed |
0.000 |
8893.991 |
|
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|
Cost of materials |
9293.350 |
0.000 |
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|
Erection and Subcontrocting expenses |
5270.286 |
0.000 |
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|
Personal Expenses |
954.663 |
0.000 |
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|
|
Salaries, Wages, Bonus, etc. |
0.000 |
837.709 |
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Interest |
592.508 |
592.788 |
11694.373 |
|
|
Depreciation & Amortization |
334.350 |
269.447 |
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|
|
Other Expenditure |
2369.522 |
5918.027 |
|
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Total
Expenditure |
18814.679 |
16511.962 |
11694.373 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 (1st Quarter) |
30.09.2007 (2nd Quarter) |
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Sales
Turnover |
5115.800 |
5629.600 |
|
Other
Income |
0.200 |
0.000 |
|
Total
Income |
5115.800 |
5629.600 |
|
Total Expenditure |
4477.000 |
4884.200 |
|
Operating
Profit |
639.000 |
745.400 |
|
Interest |
162.500 |
156.900 |
|
Gross
Profit |
476.500 |
588.500 |
|
Depreciation |
88.200 |
68.400 |
|
Tax |
135.200 |
181.200 |
|
Reported
PAT |
253.100 |
338.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
1.57 |
1.78 |
2.55 |
|
Long Term Debt Equity Ratio |
0.07 |
0.17 |
2.50 |
|
Current Ratio |
0.85 |
0.82 |
1.67 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.52 |
3.63 |
6.79 |
|
Inventory |
15.07 |
13.07 |
15.77 |
|
Debtors |
2.62 |
2.40 |
1.73 |
|
Interest Cover Ratio |
2.46 |
1.79 |
1.74 |
|
Operating Profit Margin (%) |
14.59 |
11.30 |
13.63 |
|
Profit Before Interest and Tax Margin (%) |
12.98 |
9.77 |
12.82 |
|
Cash Profit Margin (%) |
6.65 |
4.31 |
4.22 |
|
Adjusted Net Profit Margin (%) |
5.04 |
2.79 |
3.41 |
|
Return on Capital Employed (%) |
45.74 |
30.69 |
21.14 |
|
Return on Net Worth (%) |
48.31 |
26.12 |
18.95 |
LOCAL AGENCY
FURTHER INFORMATION
The company’s
fixed assets of important value include Freehold & Leasehold Land,
Buildings, Plant & Machinery, Computers, Furniture & Fixtures,
Electrical Installations and Vehicles.
The company is in
trade terms with :-
- Hind Enamel
Works
- Nike
Industries
- R. S.
Industries (Rolling Mills) Limited
- Bharat Wire
Ropes
- Shree
Krishna Rolling Mills
- Modern
Engineering Works
- K.
Engineering
- Vibha Star
Products
- Jaideep
Engineering
- Shree
Vyanteshwara Form (India) Private Limited
- Z. M.
Engineering Works
- Anil
Industries
- Ajay
Engineering Works
- Gadodia
Traders
- Giriraj
Industries
- Johns
Electric Company Private Limited
- Shree Amica
Industries
- Shree Timber
Industries
- Soni Dies
and Engineering Works
- Shree Jai
Durga Saw Mills
- Sanvijay
Re-rolling
- Accme (Urvashi
Pump) Engineers Private Limited
- Badjayta
Lime Suppliers
- Jyoti
Industries
- Auto Tech
- Star
Chemical Industries
- Adheswara
Chemicals (Private) Limited
- Ravi
Engineers
- Nexo
Industries
- Naveen Metal
Industries
Performance
The year 2006-07 has been significant for the Company in
terms of its financial performance with profit after tax at Rs. 1046.400
Millions as against Rs. 493.000 millions for the previous financial period.
During the year, the Company achieved its highest ever turnover of Rs. 2,0756.800
Millions as against Rs. 1,7686.100 Millions for the previous financial period
registering an increase of 17%. The Profit before tax was Rs.1598.600 as
against Rs. 764.700 Millions for the previous financial year.
During the year, the Company entered into a joint venture with M/s.
Power engineers Inc., USA. The joint venture company was formed to explore
opportunities for transmission and distribution line contracts in North
America. The Company has already made good initial breakthrough by bagging orders
worth Rs. 170 crores from U.S.A and Canada. The Company also entered new
markets such as Kazakhstan and Ghana. Orders worth about Rs. 319.000 Millions
were received from the distribution sector showing a growing presence of the
Company in that sector and strengthened presence in telecom business with
supplies of over 10,000 Mts.
ORDER
BOOK AND BUSINESS OUTLOOK
The current order book of the Company stands at about Rs. 30000.000
MillionsThis includes orders worth Rs. 23000.000 Millions from international
markets and about Rs. 7000.000 Millions from the domestic markets. It is
noteworthy that the Company has been able to maintain a healthy order book
position even after the record execution of recent projects during the year.
International business constitutes approximately two thirds of the Company's
business. The Company has won projects in Afghanistan, Algeria, Ethiopia,
Ghana, Kazakhstan, Kenya, UAE, Nigeria and Oman. The Company has strengthened
its presence in the Middle Cast and Africa with a view to gain a position of
leadership in these key regions. The company has re-entered Sri Lanka and is
currently implementing a project there. The company has also expanded its value
chain by moving into rural electrification and distribution segments.
In the domestic markets, the Company completed nine projects during the year
and continues to bag projects from the Power Grid Corporation of India Ltd. and
state utilities. With power infrastructure development gaining importance in
the country and several projects likely to commence in the medium term, the
Company is well placed to consolidate and strengthen its leadership position
further.
INDUSTRY OVERVIEW
Domestic
India is one of the fastest growing economies of the world. It has grown on an
average of 8% per annum over the last three years and is expected to continue
to see high growth rates in the coming years. This economic acceleration has
put significant pressure on the existing infrastructure, such as power, roads,
parts, airports and railways. Despite increasing power generation capacity, the
country faces one of the highest Tand D losses in the world, an estimated 30%
to 40% on an average annually. The Government is making efforts to reduce the
Tand D losses, which would benefit the transmission sector.
According to certain estimates, India being the fifth largest generator
of power, positioned behind USA, China, Japan and Russia is expected to surpass
Russia and Japan by 2030. However, power generation has not been able to catch up
with demand growth in recent years. The demand-supply mismatch has been an area
of great concern and the Government of India is committed to bridging this gap.
In order to achieve the 11th Five-year plan targets, the Government has
introduced new accelerated process for awarding ultra mega power projects
(UMPPs) to the private sector. The Government has already planned 8 UMPPs of
4,000 Mill each and this initiative is expected to help the Government achieve
the target of adding 76,000 MW by 2012.
International
Apart from India, big growth opportunities have come up in the
regions such as Africa. Central Asia. Middle East and North America. Industry
experts believe that Africa and Middle East, together, are expected to spend
more than U5$ 20 billion on transmission and distribution. Moreover, according
to International Energy Agency, private investors and Governments will need to
invest more than U5$ 10,000 billion in the world's power sector in the next 25
years to prevent shortage of electricity supply.
Clients
The major domestic
clients of the company include Power Grid Corporation of India Limited and
State Electricity Boards and international clients are infrastructure concerns
spread across over eleven countries. The company had identified Middle East,
Central Asia and African countries as a major growth area and focused on
successful execution of its projects there.
Website details
are attached herewith:
Biodata
Incorporated as a public limited company on 7 May '45 as Kamani Engineering Corporation, Subject was renamed in Jun.'84. It is engaged in the design and manufacture of power transmission line towers and petrochemicals.
Subject's major products are transmission line towers and methyl ethyl ketone
(MEK). Its major clients include government agencies like SEB's, the NTPC,
NHPC, etc.
The company diversified into cement in 1988 and promoted a cement project
through a new company, Indo Nihon Special Cements, in collaboration with Nihon
Cement Company, Japan. In 1994-95, Bespoke Finvest became a wholly-owned
subsidiary of the company. Subject has tied up with the Vietnamese government
for a joint venture. It took over the management of SAE India in Mar.'95. Cetex
Petrochemicals, the petrochemicals division of Subject has been awarded the ISO
9002 certification.
During 1998-99,
the proposed merger of RPG Transmission Ltd with the company was approved by
the shareholders in ratio of 85 shares of the company for every 100 shares held
in RPG Transmission Ltd and has been cleared by the Delhi High Courts but not
approved by the Bombay High Court, accordingly in 1999-2000, the company has
gone in appeal against the said order.
With a long term perspective and in order to mitigate losses and improve
competitivenes, the company has embarked upon various measures like
rationalisation of assets, sale of surplus properties, closure of unproductive
offices and voluntary separation schemes where appropriate.
The company has commenced execution of projects in Libya, Phillipines, and
Lebanon.
The company has received new orders worth Rs.2950 millions during the year 2004
both in the International and Domestic market. The company has an healthy order
book position of over Rs.26000 millions and is currently engaged in executing
orders in countries like UAE, Libya,
Tunisia, Algeria, Iraq, Kuwait, Saudi Arabia.
To
maintain its leadership in the market, Subject is equipped with the latest in
technology. Subject is constantly upgrading its facilities and factory units.
The
company has very modern design facilities at Mumbai where over 50 highly
qualified and experienced Design Engineers have been deployed. This Design
Division is fully equipped to perform a plethora of computerized design and
engineering activities that design Transmission Towers of any kind to meet
specific client requirements. It has successfully designed heavy River Crossing
towers as well as towers up to 800 KV. The division boasts of ultra modern
facilities that include:
- 3D analysis & design
software for optimizing use of Mild Steel and High tensile Steel.
- 3D drafting software for
automatic generation of shop drawings for fabrication and code generation
for CNC operation for manufacturing.
- Software for foundation designing
and construction drawings.
- Software for development of
sag templates and generation of sag tension charts for line stringing.
Software for development of 3D
profile drawing which facilitated automatic checking of clearances, optimizing
of tower quantities and verifying the adequacy of the tower strength.
CAPABILITIES
- single circuit and double circuit towers.
- double circuit towers with quadruple bundled
conductors.
- single circuit rectangular based towers.
- single circuit
rectangular based towers
State-of-the-art
Infrastructure
The heart of any manufacturing facility is its
infrastructure. subject has two manufacturing plants at Jaipur and Nagpur in
India. In these two plants, subject can manufacture 50,000 tons of towers
annually.
Subject meets the world's most stringent quality standards.
Its plants are certified as per and for
Quality and Environmental Standards
Well-engineered layouts, mechanized production equipments
and large storage facilities for steel and finished products give subject an
edge to deliver quality products as per the stringent requirements of its
customers. Subject is constantly upgrading the capabilities of its factories to
meet the changing expectations of its customers.
The factory at Jaipur was built on a plot measuring 230,680
sq. mt. and started in 1967. It combines highly skilled manpower with modern
manufacturing infrastructure to ensure products of the highest quality.
Built on 120,000 sq. mt. of land, the factory at Butibori,
Nagpur was started in 1996. It incorporates the latest technology for
fabrication and hot dip galvanizing of a variety of structures.
FABRICATION Technology
All tower parts go through multi-purpose CNC machines that are
programmed to carry out various operations such as punching, stamping, drilling
and cutting.
Hydraulic presses along with matching tools, jigs and
fixtures ensure that bent items are handled without distortion. Strategically
positioned cranes simplify material handling without any strain on employees.
All machines are equipped to process steel conforming to various specifications e.g. BSEN, ASTM, JIS, DIN.
GALVANIZING Technology
The pretreatment of steel is effectively handled with
special chemicals to minimize effluents. The controlled treatment includes
degreasing, pickling and fluxing for an ideal reaction between steel and Zinc.
The pre-heating chamber ensures uniform drying and
preheating of steel to give an excellent surface finish and uniform coating of
zinc. The temperature of Galvanizing Furnace is accurately controlled by
microprocessors.
The waste acids and chemicals are treated as per all
applicable environment Standards.
AT KEC, Quality is a Journey not a Destination
Quality is an integral part of manufacturing process wherein
each operator ensures the quality of work he performs. Specially trained
inspectors, computerized testing equipments and well-planned quality assurance
infrastructure back all quality efforts. Monitoring of quality is done at every
stage ensuring the highest quality standards.
Maintenance and back up systems ensure that process
capability of machines is maintained at the planned performance standards.
Subject has more
than 50 years of experience in construction of Transmission Lines.
The company has
constructed some of the heaviest and tallest transmission towers in India and
abroad. It has successfully battled against and constructed towers in difficult
terrains like deserts, mountains, land mines and rivers.
Today, the
specialized transmission lines built by Subject span huge raging rivers are
like Nile in Egypt, Kosi in Nepal and Brahmaputra in India.
Besides having 20
teams of highly skilled surveyors, subject has 13 Total Stations (comprising
Electronic Distance Meters, theodolite and software for recording survey data
like levels, angles and distance. In addition subject has the capability and
experience of conducting surveys via Geo-positioned satellite.
Subject has teams of
expert engineers and technicians who erect transmission towers by conventional
methods like cranes for towers that are up to 45 meters high and advanced
methods like use of helicopters, whenever required.
Subject's battery
of 32 sophisticated lightweight tension stringing machines and 40 hydraulic
mobile cranes (to handle the conductors at erection sites and at stores) give
KEC a distinct edge when it comes to installation of transmission lines.
Quality assurance
is an integral part of the manufacturing processes wherein each operator
ensures the quality of the work he performs. All quality efforts are backed by
specially trained inspectors, computerized testing equipment, well planned
quality, assurance infrastructure. Monitoring of quality is done at every stage
ensuring the highest quality standards.
The maintenance
and back up systems ensure that process capability of machines is maintained at
the planned performance standards.
Subject, A Towering Corporate
Subject is one of
the largest Power Transmission EPC companies in the world. Since its
incorporation in 1945, KEC has made an indelible mark on the world map by
constantly and consistently re-engineering itself to retain it's position of
leadership in the areas of quality, technology, capacity and capability.
Subject's strengths
lie in the areas of Design, Manufacture, supply and Construction of Turnkey
Projects of Power Transmission lines of voltages upto 800 KV and in the
execution of Railway Electrification projects, setting up Sub-stations and
power Distribution Networks, Optical Fibre Cable (OPGW) installations, Turnkey
Telecom Infrastructure Services and maintenance of Power Transmission Lines.
To ensure reliable
service subject is supported by multi-locational manufacturing facilities and a
workforce spread out over 20 countries.
At subject manpower is one of the most important resources. subject
employees participate in regular training programmes and seminars in various
areas of self-development. Every employee is instilled with a sense of pride of
his work and workplace & strives to make subject the International market
leader in the power transmission sector.
Transmitting Power, The world over
Till date subject has supplied over 1.2 million metric tons of towers
and has constructed over 35000 kms of transmission lines worldwide long enough
to circle the globe.
Over the years
subject has gone from strength to strength successfully exporting towers to
over 20 countries and widening its client base across the world. The company
has an increasingly strong presence in the Middle East, the Pacific Rim
countries and Africa.
Over a span of 50
years subject has helped transmit power to various countries that include
Argentina, Brazil, Canada, Egypt, Ethiopia, Ghana, India, Indonesia, Iran,
Iraq, Kenya, Kuwait, Lebanon, Malaysia, New Zealand, Nepal, Nigeria,
Philippines, South Africa, Sri Lanka, Saudi Arabia, Sudan, Syria, Thailand,
Tunisia, USA, UAE and Vietnam.
The subject credo is that no project is complete till the customer is
totally satisfied. subject has successfully executed contracts from 33 KV to
800 KV in India and abroad.
Credentials
Subject test beds have been accepted and approved by Power utilities in India and abroad. Some of the key consultants who have witnessed the tests at subject testing stations are:
- Acres Consulting
Engineers - Canada
- Energo
Project - Yugoslavia
- Electricite
de France - France
- ESB
International - Ireland
- Ewbank
Preece Ltd. - U.K.
·
Kennedy &
Donkin Ltd. - U.K.
- Lahmeyer
International - Germany
- Merz &
McLELLAN - U.K.
- Newjec – Japan
Mr.
Vimal Kejriwal (Chief Finance Officer) of subject. receiving the Highest
Exporter Trophy for the year 2000-2001 in Capital goods from Dr. Shivajirao
Patil -Nilangekar, Minister of Revenue, Govt of Maharashtra. The award function
was held in Hotel Taj President, Mumbai on 7th January 2004.
Worldwide success and acclaim has largely stemmed from a
wide base of satisfied clients. Awards and accolades reinforce Subject's
commitment to deliver better and faster.Subject corporate capabilities can be
best described by what its clients have to say.
"Timely
completion of the project has been result of sincere and dedicated efforts of
highly motivated team of Subject"
"During
the peak construction period, M/s. subject had deployed 25 foundation gangs, 25
erection gangs, 16 stringing gangs and 4 TSE sets. The entire 562 KM stringing
of 800 KV line has been completed in only 16 months by massive deployment of
over 5000 work force by subject."
Power Grid Corporation of India [800 KV Single Circuit Kishanpur-Moga Line]
"They
hereby confirm that Subject., Cairo has completed 500 KV turnkey project
awarded to them by the Ministry of Electricity & Energy, Egyptian
Electricity Authority. They are glad to confirm that all the lines have been in
trouble free service."
Ali Al-Mussawi Egyptian
Electrical Authority [500 KV Single Circuit Tebbien Kureimat-Cairo Line]
"I am glad to learn that
the Lake Crossing Tower at location No. 126 of Singrauli-Rihand Transmission
Line has been completed. I want to convey my appreciation for the effort put in
by subject for completing the job. Had subject not come forward with full
mobilization and taken up the work on a war footing, this target would not have
been achieved."
M. L. Malik, National Thermal
Power Corporation of India [400 KV Single Circuit Singrauli-Rihand Line]
"KDP offer their
compliments for completion of Dubai Electricity and Water Authority's 400 KV
& 132 KV Transmission Lines 7 sections, ahead of schedule to a satisfactory
standard of workmanship."
D. C. Adams, Manager, Middle
East, Kennedy & Donkin Middle East Limited. [400 KV Double Circuit Shahama
East - MIRFA Line]
"They hereby confirm that
subject has completed supply of 3300 MT of galvanized steel towers with bolts
& nuts as per agreed supply schedule. The qualities of towers were to
International Standards and the assembly of the towers at the project was
completed smoothly indicating a high standard of fabrication."
Cesar Luccas, Pirelli, Brazil
[132 KV Double Circuit Santarem - Ruropolis - Itaituba Line]
"They would like to commend
subject. on their successful completion of the National Electrification
Project. Subject has carried out the work in a professional manner and has
developed an excellent working relationship with the VRA."
Volta River Authority, Ghana
[Atebubu-Kwame Danso, Berekum - New drobo, Goasa - Tepa, Bawku - Davango,
Nagpanduri - Gambaga Line 34.5 KV Sub Transmission]
Press Releases
KEC Net Profit doubles to Rs. 380 millions,
Sales up by_25% to Rs. 5720 millions Mumbai - 1/12/2007
Mumbai, 12th Jan 2007
Subject has recorded a sharp growth of more than 116% in its net profit (PAT) at
Rs. 382.100 millions for the quarter ended 31st December 2006 as against Rs
176.700 millions in the same period last year. The Company reported gross sales
of Rs. 5720 millions as against Rs 4580 millions in the same quarter last year,
an increase of 25%
Announcing the results, Mr. Ramesh Chandak, Managing
Director, Subject said, “Subject continues to perform well on profitability
front. Company’s policy of aggressive project execution measures and efficient
utilisation of resources has resulted in impressive growth in the
profitability. On revenues front, company continues to perform well in the
International market with significant growth in revenues. Domestic market is
now reviving with lot of new business expected in the ensuing quarters”.
Subject is one of the largest Power Transmission EPC
companies in the world with presence in more than fifteen countries.
Subject is currently engaged in executing orders in
various countries such as Algeria, Afghanistan, Ethiopia, Iraq, Kuwait, Libya,
Nigeria, and UAE, Zambia.
In the domestic market too, subject is a leading
player and is executing no of orders for PGCIL, WBSEB and UPPCL etc.
Subject is a part of the Rs. 9500 million. RPG Group.
Subject bags four new orders Rs
151millions from International Market
Mumbai, December 20th 2006
Subject has bagged four new orders
aggregating to Rs 1510 millions. Of these three orders worth Rs. 1060 millions are
from UAE whereas one order worth Rs. 450 millions is from Ghana. Details of the
orders are as follows : -
UAE
Sharjah Electricity and Water
Authority, Government of Sharjah, United Arab Emirates have awarded a contract for
supply and construction of 220 KV D/C over head lines of 39.5 KM from Hamriya to Al-Tay.
Abu Dhabi Water and Electricity Authority, Government of Abu Dhabi,
United Arab Emirates have awarded a contract for supply and construction of 400
KV D/C over head lines of 7 KM near Abu Dhabi.
Further
M/s Abu Dhabi Water and Electricity Authority has also awarded a variation
order for replacement of OPGW for 278 kms.
GHANA
Subject
has also bagged an order from Volta River Authority, Ghana for constructing a
330 KV S/C Transmission line spanning over 215 Kms. from Aboadze Thermal power
plant to Volta switching station. With
this order subject will re-enter the Ghana market after a gap of many years.
Subject is one of
the largest Power Transmission, Engineering, and Procurement and Construction
companies in the world with presence in more than fifteen countries.
Subject is
currently executing orders in various countries such as Afghanistan, Abu Dhabi,
Algeria, Ethiopia, Iraq, Kazakhstan, Libya, Tunisia , Nigeria, Oman and Zambia.
In the domestic
market, too, Subject is a leading player and is executing various orders for
PGCIL, WBSEB and UPPCL etc.
Subject is a part of the Rs. 95000 millions RPG
Enterprises.
Fixed Assets:
- Freehold Lond
- Leosehold Lond
- Buildings
- Palnt and Machinery
- Computer
- Furniture and fixtures
- Electricol Installations
- Vehicles
- Computer Software
- Brand
- Goodwill
- Previous period
Website details:
KEC INTERNATIONAL 2nd QUARTER NET PROFIT UP 56%
- Revenue at Rs. 563 crore ; Up 29%
- Net profit at Rs 34 crore; Up 56%
- EPS at Rs.8.99 Vs. Rs. 5.75
Mumbai, Oct 31, 2007: Subject today reported second
quarter revenue of Rs. 562.96 crore versus last year’s figure for the
corresponding period of Rs. 436 crore. Net profit for the second quarter has
grown 56% to Rs. 33.89 crore.
“They expect to maintain the growth momentum. A
geographically well balanced order book situation in which, including L1
positions, their current order level stands at a healthy Rs. 4800 crore augurs
well for the future,” said Ramesh Chandak, Managing Director, Subject.
“I am absolutely delighted with the current position.They
have been breaking the last few quarters and the latest spate of wins including
domestic orders from Karnataka and Rajasthan added on to major wins in Saudi
Arabia and Afghanistan makes me feel optimistic”, concluded Mr. Chandak.
Further, the company’s EBITDA margins have improved from
13.10% to 13.25%, reflecting an improvement in operational efficiency.
Subject is a global leader in the power transmission
engineering, procurement and construction (EPC) business. With global
operations spanning over 15 countries, the company is present in UAE, Libya,
Tunisia, Algeria, Afghanistan, Nigeria, Iraq, Kuwait, Oman, Zambia and Ethiopia
among several other countries. Subject is the flagship company in the
transmission sector of the Rs. 11,500 crore RPG Group
Mumbai, July
13, 2007: RPG Group
Company, Subject has bagged a contract valued at Rs. 130.15 crore from
Karnataka Power Transmission Company Limited for design, fabrication, testing,
supply, erection and commissioning of a 400 KV D/C Line. The length of the line
is 151.15 kms. This is located in Karnataka.
The project,
awarded on a turnkey basis, is to be completed in December 2008.
“This is a
significant win for us. Coming, as it does, immediately on the back of their
largest single value contract worth Rs. 380 crore in Kazakhstan and another Rs.
176 crore win in the Middle East, is indeed special,” said Mr. Ramesh Chandak,
Managing Director, KEC International.
Subject’s
current order book is over Rs. 3300 crore.
Subjects is a
global leader in the power transmission engineering, procurement and
construction (EPC) business. With global operations spanning over 15 countries,
the company is present in UAE, Libya, Tunisia, Algeria, Afghanistan, Nigeria,
Iraq, Kuwait, Oman, Zambia and Ethiopia among several other countries. Subject
is the flagship company in the transmission sector of the Rs. 11,500 crore RPG
Group.
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.39.68 |
|
UK Pound |
1 |
Rs.81.95 |
|
Euro |
1 |
Rs.58.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
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 |
|