MIRA
INFORM REPORT
|
Report Date : |
03.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ACTION
CONSTRUCTION EQUIPMENT LIMITED |
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Registered Office : |
Plot No. 7, Pocket
II Market, H - Block, Sarita Vihar, New Delhi – 110044 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.01.1995 |
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Com. Reg. No.: |
55 – 64347 |
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CIN No.: [Company
Identification No.] |
L74899DL1995PLC064347 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKA02093A |
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PAN No.: [Permanent
Account No.] |
AAACA6089P |
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Legal Form : |
Public Limited
Liability Company. The company’s shares
are listed on the Stock Exchanges |
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Line of Business : |
Manufacturers of
Hydraulic Mobile Cranes, Earthmoving and Construction Equipment. |
RATING &
COMMENTS
|
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 4422012 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company came
out with IPO in October, 2006 for a sum of Rs. 598 millions [including
premium], successfully. The Paid up
Capital has increased by Rs. 46.000 millions and remaining by premium [Rs.
552 millions]. Subject is a well
established and reputed company having fine track. Trade relations are fair.
Financial position is satisfactory.
Payments are usually correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Plot No. 7,
Pocket II Market, H - Block, Sarita Vihar, New Delhi – 110044 |
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Tel. No.: |
91-11-26953623 /
26953626 / 26953633 |
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Fax No.: |
91-11-26953717 |
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E-Mail : |
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Website : |
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Corporate
Office/ Factory 1 : |
Jajru Road, 25th
Mile Stone, Delhi Mathura Road, Ballabgarh, Faridabad District, Haryana –
121004, Uttar Pradesh, India |
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Tel. No.: |
91-129-2307922/2307933/2307924 |
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Fax No.: |
91-129-2307562 |
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E-Mail : |
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Factory 2 : |
Dudhola Link
Road, Village Dudhola, Tehsil Palwal,
District Faridabad, Haryana, Uttar Pradesh, India |
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Factory 3: |
Plot No. C-5, 6,
7 and 8, UPSIDC Industrial Area -1, Bazpur -262 123, District Udham Singh
Nagar, Uttaranchal, India |
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Spares &
Product Support Division : |
17 / Sector 11A, Mathura
Road, Faridabad, Haryana, Uttar Pradesh, India |
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Tel. No.: |
91-129-5087922 /
33 |
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Fax No.: |
91-129-5087924 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Vijay Agarwal |
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Designation : |
Chairman cum
Whole Time Director |
|
Address : |
854, Sector – 15
A, Faridabad, Haryana, India |
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Date of Birth/Age : |
13.01.1995 |
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DIN / PAN No. : |
00057634 |
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Name : |
Ms. Mona Agarwal |
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Designation : |
Whole Time
Director |
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Address : |
854, Sector – 15
A, Faridabad, Haryana, India |
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Date of Birth/Age : |
13.01.1995 |
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Name : |
Mr. Vijay Kumar
Singh |
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Designation : |
Director |
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Address : |
854, Sector – 15 A,
Faridabad, Haryana, India |
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Date of Birth/Age : |
14.11.1997 |
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DIN / PAN No. : |
00102292 |
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Name : |
Mr. Sorab Agarwal |
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Designation : |
Whole Time
Director |
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Address : |
House No. 854,
Sector – 15A, Faridabad – 121007, Haryana, India |
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Date of Appointment : |
20.03.1998 |
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DIN / PAN No. : |
00057666 |
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Name : |
Mr. Subhash
Chander Verma |
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Designation : |
Director |
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Address : |
House No. 34,
Greater Kailash – I, New Delhi – 110048, India |
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DIN / PAN No. : |
00098019 |
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Name : |
Mr. Keshav
Chandra Agarwal |
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Designation : |
Director |
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Address : |
House No. 350,
Sector – 29, Noida – 201303, Uttar Pradesh, India |
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Name : |
Mr. Girish Narian
Mehra |
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Designation : |
Non Executive
Director |
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Name : |
Dr. Amar Singhal |
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Designation : |
Non Executive
Director |
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Name : |
Dr. K C Agarwal |
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Designation : |
Non Executive
Director |
KEY EXECUTIVES
|
Name : |
Mr. P K Bansal |
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Designation : |
Chief Finance officer |
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Name : |
Mr. Rishi Mathur |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of
Shareholders (as on 31.03.2007) |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoters and Promoter
Group |
11713000 |
65.16% |
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Public
Shareholding |
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Institutions |
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Mutual Funds /
UTI |
460866 |
2.56% |
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Financial
Institutions / Banks |
13980 |
0.08% |
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Foreign
Institutional Investors |
275739 |
1.53% |
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Non Institutions |
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Bodies Corporate |
1666308 |
9.27% |
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Individuals |
2500143 |
13.91% |
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Non Residents
Indian |
24479 |
0.13% |
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Trust |
1001050 |
5.57% |
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Clearing Members |
321435 |
1.79% |
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Total |
17977000 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
Hydraulic Mobile Cranes, Earthmoving and Construction Equipment. |
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Products : |
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PRODUCTION STATUS (as on 31.03.2007):-
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Particulars |
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Unit |
Actual
Production |
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Cranes |
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Nos. |
2310 |
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Construction / Earth Moving Equipment |
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Nos. |
132 |
GENERAL
INFORMATION
|
Customers : |
Government Clients : ·
Central
Coalfields Limited, Ranchi ·
Western
Coalfields Limited, Nagpur ·
South Eastern
Coalfields Limited, Bilaspur ·
Northern
Coalfields Limited, Singrauli ·
S.C.C.L., Kothagudem
Colleries ·
Punjab State
Electricity Board, Ropar ·
Punjab State
Electricity Board, Patiala ·
Rajasthan
State Electricity Board, Jaipur ·
C.P.R.I.,
Bhopal ·
COFMOW, New
Delhi ·
Ordnance
Factory, Ambernath ·
NHPC,
Faridabad ·
Chennai Port
Trust, Chennai ·
South Eastern
Railway, Bhubaneshwar ·
Southern
Railway, Chennai ·
U.P. State
Bridge Corporation Limited, Lucknow ·
NTPC Limited,
Dadri ·
Burns
Standard, Burnpur ·
Department of
Irrigation, Roorkee ·
Ministry of
Defense, New Delhi ·
Delhi Jal
Board ·
P.W.D., Rishikesh
·
Haryana
Vidyut Prasan Nigam Limited, Panchkula ·
MPEB, Korba ·
MPEB, Sarni ·
Nepal
Irrigation Sector Project, Nepal ·
Indian Oil
Corporation Limited, Vadodara ·
BHEL, Kolkata
and Nagpur ·
NALCO, Angul ·
Paradip Port
Trust ·
NTPC,
Vindhyachal ·
Richardson
Cruddas ·
Gujrat
Industries Power Company ·
Vikram
Sarabhai Space Centre ·
Mangalore
Refinery and Petrochemicals Limited ·
Haryana State
Supplies and Disposal ·
South Central
Railway ·
Integral
Coach Factory, Chennai ·
Airport
Authority of India, Mumbai ·
Municipal Corporation,
Hyderabad ·
Indian
Petrochemical Corporation Limited, Nagothane ·
Bridge and
Roof, Kolkata ·
A.A.I.,
Chennai ·
NTPC, Vizag ·
Gujrat
Electricity Board, Baroda ·
Nuclear
Power, Kota ·
NTPC, Rihand ·
DGQA ·
IFFCO ·
BSNL ·
BBMB ·
IISCO ·
ECL ·
Numaligarh
Refinery Private Clients : ·
Reliance
Industries Limited, Mumbai ·
Punj Lloyd
Limited, New Delhi ·
ACC Limited,
Madhya Pradesh ·
Cimmco Birla
Limited ·
Shapoorji
Pallonji Company Limited, Mumbai ·
Oswal
Chemical Fertilizers Limited, New Delhi ·
Gannon
Dunkerley & Company Limited, Kolkata ·
KEC
International Limited, Jaipur ·
Gammon India
Limited, Mumbai ·
PSL Holdings,
Mumbai ·
SAE (India)
Limited, New Delhi ·
Prakash
Industries, New Delhi ·
Petron Civil
Engineering Limited, Mumbai ·
Petron
Engineering Construction Limited, Mumbai ·
Indure
Limited, New Delhi ·
Dodsal
Limited, Mumbai ·
Jyoti
Structures Limited, Nasik ·
Express Crane
Hiring Company, Baroda ·
Grasim
Industries Limited, Dharwad ·
Humphreys
& Glasgow Consultants Limited, Mumbai ·
Steel
Products Limited, New Delhi ·
Vijay Tanks
& Vessels Limited, Baroda ·
Globe Hi-Fab
Limited, New Delhi ·
Shrinivas
Plates & Structural Co. Pvt. Limited, Mumbai ·
Visakha
Cements, Chennai ·
Kalptaru
Power Transmission Limited, Gandhinagar ·
South India
Structural Corporation Limited, Chennai ·
Maharishi
Ayurveda, Delhi ·
Bharati
Shipyards Limited, Mumbai ·
IVR
Construction Limited, Hyderabad ·
Nile Limited,
Hyderabad ·
R. K.
Marbles, Udaipur ·
Duncan
Industries, Kanpur ·
Gayatri
Products, Hyderabad ·
Adani Port
Limited, Ahmedabad ·
Jindal
Polyesters Limited, New Delhi ·
Gujrat Ambuja
Cement
·
Johnson
Eastern Power, Aizwal ·
Spic Jel
Engineering Constructions, Chennai ·
A. L.
Sudershan, Hyderabad ·
Sumitomo
Corporation, Philippines ·
Patel
Engineering, Mumbai ·
Simplex
Concrete Piles, Calcutta ·
ACE Pipe
Lines, Mumbai
·
B. G. Shirke,
Pune
·
L.G. / Patel
JV, Vapi
·
Praj
Industries, Pune ·
Jai Hind
Projects, Ahmedabad ·
Degremont
Projects, Delhi ·
Alstom Power,
Delhi
·
Tata
Chemicals Limited, Uttar Pradesh ·
Ahluwalia
Contracts, Delhi ·
Beekay Engineering
(BSBK), Bhilai
·
New Structo,
Surat
·
ISPAT
Limited, Nagpur ·
Arvind
Techno/Somdutt Builders, Delhi ·
Mukat Pipes,
Mumbai
·
Havell's,
Delhi
·
BSES ·
ABG, Mumbai ·
Bajaj Sugar,
U.P.
·
Essar ·
Nagarjuna ·
L & T
(ECC)
·
Hindalco ·
ABB ·
Unitech ·
UB
Engineering
·
Krupp ·
Welspun ·
ISGEC ·
IJM |
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Suppliers: |
· A.M. Industries · Asian Polymers · B.R. Industries · Bajrang Paints · Belmont Rubber Industries · Carrier Wheels · Century Crane Engineers (P) Limited . · Commercial Auto Products · Jagtar Singh & Sons (India) · K.M.P Aqua Pumps Private . Limited . · Kamlesh Automobile & Steel Fab. · Machine India Company . · Mecmad Engineering Works · Nissim India Private . Limited . · Nu-Tech Enterprises · Om Shakti Hydraulics Private . Limited . · Osho Tools Private Limited . · Polar Auto & Engg. Ind. P. Limited . · R.K. Foundry & Engg. Company . · D.P. Auto Industries · Delite Auto Products · Dhiman Industries · Elite Steels Private Limited . · Engineers and Electroplate · Gill International Limited · Hi-Lux Automotive (P) Limited . · Him Tekno Forge Limited . · R.R. Engineers & Fabricators · R.V. Engineering · Raj Steel Rolling Mills · Sankalp Mechanical Works · Saraswati Udyog · Sokhi Heli-Wom Gears Private . Limited . · Spica Engineering Company . · Three Star Gases Private . Limited . · UniCompany Engineering Works · Vintage Switchgear |
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No. of Employees : |
249 |
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Bankers : |
· Punjab National Bank 46 – Dohil Chamber, Nehru Place, New Delhi – 110019 · ICICI Bank Limited NBCC Place,
Bhishma Pitamah Marg, Pragati Vihar, New Delhi – 110003, India E-mail : appl.helpdesk@mca.gov.in · Citi Bank · The Hong Kong and Shanghai Banking Corporation Limited |
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Banking Relations : |
Good |
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Auditors : |
Rajan Chhabra
& Company Chartered
Accountants, 32A, Sector – 11 E,
Faridabad – 121006, Haryana, India |
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Tel. No.: |
91-129-2224557 /
5008089 |
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Mobile No.: |
91-9811058089 |
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Associates/Subsidiaries : |
· ACE Steelfab Private Limited · ACE Cranes · ACE TC Rentals Private Limited · Frested Limited, Cyprus · SC Forma SA, Romania |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17977000 |
Equity Shares |
Rs. 10/- each |
Rs. 179.770 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
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|
|
|
|
1] Share Capital |
179.770 |
133.770 |
16.735 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
925.733 |
275.445 |
89.913 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1105.503 |
409.215 |
106.648 |
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LOAN FUNDS |
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|
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|
1] Secured Loans |
80.636 |
15.087 |
25.693 |
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|
2] Unsecured Loans |
0.000 |
0.000 |
0.671 |
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TOTAL BORROWING |
80.636 |
15.087 |
26.364 |
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DEFERRED TAX LIABILITIES |
3.051 |
[0.188] |
0.000 |
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TOTAL |
1189.190 |
424.114 |
133.012 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
281.362 |
124.568 |
43.555 |
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Capital work-in-progress |
5.326 |
2.379 |
0.000 |
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INVESTMENT |
0.108 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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|
Inventories |
250.112 |
122.918 |
65.817 |
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|
Sundry Debtors |
392.580 |
210.563 |
121.111 |
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|
Cash & Bank Balances |
398.426 |
66.624 |
8.045 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
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|
Loans & Advances |
511.803 |
177.234 |
37.018 |
|
Total Current Assets |
1552.921 |
577.339 |
231.991 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
Current Liabilities |
439.731 |
187.396 |
117.830 |
|
|
Provisions |
210.796 |
96.105 |
24.704 |
|
Total Current Liabilities |
650.527 |
283.501 |
142.534 |
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Net Current Assets |
902.394 |
293.838 |
89.457 |
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MISCELLANEOUS EXPENSES |
0.000 |
3.329 |
0.000 |
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TOTAL |
1189.190 |
424.114 |
133.012 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2452.735 |
1656.756 |
879.367 |
|
|
Other Income |
38.319 |
3.136 |
0.000 |
|
|
Total Income |
2491.054 |
1659.892 |
879.367 |
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Profit/(Loss)
Before Tax |
281.019 |
198.522 |
67.423 |
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|
Provision for
Taxation |
81.705 |
71.600 |
23.699 |
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Profit/(Loss)
After Tax |
199.314 |
126.922 |
43.724 |
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Export Value |
46.218 |
42.857 |
5.765 |
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Import Value |
258.436 |
62.468 |
NA |
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Expenditures : |
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Manufacturing
Expenses |
126.196 |
74.363 |
|
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Administrative
Expenses |
53.402 |
30.428 |
|
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Raw Material
Consumed |
1860.841 |
1237.754 |
|
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|
Selling and
Distributions Expenses |
89.442 |
61.292 |
811.943 |
|
|
Salaries, Wages,
Bonus, etc. |
62.914 |
48.959 |
|
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Interest |
4.368 |
1.424 |
|
|
|
Depreciation
& Amortization |
12.872 |
7.150 |
|
|
Total
Expenditure |
2210.035 |
1461.370 |
811.943 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
822.300 |
903.700 |
1062.900 |
|
Other
Income |
14.500 |
25.700 |
22.600 |
|
Total
Income |
836.800 |
929.400 |
1085.500 |
|
Total
Expenditure |
734.300 |
807.300 |
948.900 |
|
Operating
Profit |
2.500 |
122.100 |
136.600 |
|
Interest |
1.000 |
2.500 |
4.700 |
|
Gross
Profit |
101.500 |
119.600 |
131.900 |
|
Depreciation |
6.000 |
7.100 |
8.500 |
|
Tax |
18.400 |
18.000 |
27.200 |
|
Reported
PAT |
75.700 |
93.000 |
95.300 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.06 |
0.08 |
0.40 |
|
Long Term Debt-Equity Ratio |
0.01 |
0.02 |
0.22 |
|
Current Ratio |
2.08 |
1.76 |
1.41 |
|
TURNOVER RATIOS |
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|
Fixed Assets |
12.00 |
19.92 |
23.39 |
|
Inventory |
14.25 |
19.76 |
20.07 |
|
Debtors |
8.81 |
11.24 |
13.29 |
|
Interest Cover Ratio |
36.11 |
53.21 |
24.24 |
|
Operating Profit Margin(%) |
11.35 |
11.23 |
7.11 |
|
Profit Before Interest And Tax Margin(%) |
10.87 |
10.85 |
6.63 |
|
Cash Profit Margin(%) |
7.98 |
7.19 |
4.60 |
|
Adjusted Net Profit Margin(%) |
7.50 |
6.81 |
4.12 |
|
Return On Capital Employed(%) |
36.61 |
77.13 |
82.85 |
|
Return On Net Worth(%) |
26.83 |
52.14 |
72.05 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:-
Subject was initially promoted by Mr. Vijay Agarwal, Mrs.
Mona Agarwal, Mr. Khem Karan Arora and Mrs. Laj Arora as subscribers to the
Memorandum. Subsequently, Mr. Khem Karan Arora and Mrs. Laj Arora ceased to be
the members of the Company and the shares were transferred to the current
promoters of the Company. The Company commenced its activities in the year 1995
and started manufacturing Hydraulic Mobile Cranes in 1995 under the brand name
'ACE'. Apart from the company has started manufacturing of mobile tower cranes
and loaders subsequently. Subject is the leading mobile Crane Manufacturing
Company in India that has progressed all along to become a professionally
managed ISO 9001 Certified company.
The Company's manufacturing facility is based in Industrial
town of Faridabad and now the company is in the process of setting up of its
second manufacturing plant at Dudhaula (Faridabad) for manufacturing Back Hoe
Loaders and Fixed Tower cranes up to capacity of six tons.
Subject equipment is being successfully used in many industrial sectors like
infrastructure, construction, road, engineering industry, coal mines, chemical
and fertilizer plants, power stations, ports, railways, oil Industry, defence
etc.
During the year 1995-96, the Company has manufactured 110 mobile cranes and for
the year 2004-05, the company has manufactured 1146 equipment.
In September 2006, The company is entering the capital market with an initial
public offer of 46,00,000 Equity Shares of Rs.10/-. The company has fixed the
price of Rs.130/- per Share.
Subject was
incorporated on 13th January, 1995 under the Companies Act, 1956 as
Action Construction Equipments Private Limited and received a fresh Certificate
of Incorporation on October 4, 2005 consequent to change of name to subject. Further the name of the company has been
changed to Action Construction Equipment Limited with effect from March 23,
2006.
The company’s
Registered Office was shifted from 352, Mandankini Enclave, New Delhi – 110019
to the present address w.e.f. 21st May, 1998.
Public Issue of
4600000 Equity Shares of Rs. 10/- each issued for cash at a premium of Rs.
120/- per Equity Share and at a Price of Rs. 130/- per Equity Share aggregating
to Rs. 598 millions [hereinafter referred to as “The Issue”] including
employees reservation of 100000 Equity Shares of face value of Rs. 10/- each at
a price of Rs. 130/- for cash aggregating Rs. 13 millions and net issue to the
public of 4500000 Equity shares of face value of Rs. 10/- each at a premium of
Rs. 120/- per equity share and at a price of Rs. 130/- per equity share for
cash aggregating Rs. 585 millions [hereinafter referred to as the “Net Issue to
the Public”]. The net issue to the
public would constitute 25.03% of the fully diluted post issue paid – up capital
of the company.
FINANCIAL PERFORMANCE:
The Company has reported
significant growth in business and has shown much improved profitability in the
Financial Year 2006-07. During the year under the review, the Company achieved
a growth of 48% over last fiscal in Net Sales. The Company's net profit after
tax has increased from Rs. 126.900 millions to Rs. 199.300 millions, an
increase of 57%.
Material handling equipment market has shown sizeable growth in the last fiscal
as well. The business has performed well, with productivity gains, growth in
volumes and sustained margins notwithstanding rise in input costs. The
Company's business continues to be successful inspite of several environmental
constraints. The Company's ability to neutralize cost increase and improve
margins together with purchasing efficiencies, improvement in manufacturing
yield/usage and expenses control helped in increasing the profitability. The
performance has established a new milestone for the Company.
MARKETING AND EXPORT AND SCALING UP OVERSEAS
BUSINESS:
The Indian economy is in a take
off phase and has developed necessary strength to achieve the target of being a
developed nation by the year 2020.
In April 2007, the Company participated in the worlds biggest exhibition for construction
equipment - BAUMA 2007 in Munich-Germany, which was visited by more than
500,000 delegates from all over the world. The Company has become the first
Company in India, to showcase all its equipment in this exhibition. The Company
got a tremendous response from potential customer and international
dealers.
The Company plans to expand its overseas markets. It is looking at Middle East,
Asia, Africa and Eastern Europe for its products.
To enter in the LOADERS product segment, the Company has commissioned a new
modern Plant situated at Dhudhola. The Company has also started to assemble
FORKLIFT Trucks at this Plant. The Company has also decided to start
manufacturing TRACTORS.
During the year under review, to meet the increased demand for the products of
the Company, it has commissioned a New Plant for CRANES manufacturing in
UTTARANCHAL, which is in Tax Free Zone.
With a view to enhance shareholder value, the Company continues to focus on
expanding its customer base through cost reduction, increased efficiency and
technology upgradation.
The Company's confidence in building a positive future for itself stems from
the continued and dedicated focus of its management team to maximise customer
satisfaction, growth in revenue, increased market reach and penetration. With a
large well spread network of 5 Regional Offices and 52 Sales and Services
Centers and dedicated Spare Parts Division alongwith a range of products in its
basket, the Company is well equipped to provide the best products and parts,
support and services to its increasing number of customers.
SUBSIDIARY COMPANIES:
As mentioned earlier, the Company
has incorporated a wholly owned overseas subsidiary (WOS) Company at Cyprus
viz. M/s FRESTED LIMITED, and through it, the Company has acquired 73.90%
equity stake in a Romanian Company viz. SC FORMA SA, Romania, which has become
fellow subsidiary of the Company.
The Ministry of Company Affairs, Government of India, vide letter No.
47/254/2007-CL-III dated May 22, 2007 has exempted the Company from attaching
the Annual Report and other particulars of its subsidiary companies along with
the Annual Report of the Company u/s 212 of the Companies Act, 1956, therefore,
the said Reports of the subsidiary companies viz. (1) FRESTED LIMITED, Cyprus,
(2) SC FORMA SA, Romania are not attached herewith. However, a statement giving
certain information as required vide exemption letter No. 47/254/2007-CL-111
dated May 22, 2007 is placed along with the Consolidated Accounts.
The Annual Accounts of the subsidiary companies and the related detailed
information will be made available to the members of the holding and subsidiary
companies seeking information at any point of time. The annual accounts of the
subsidiary companies will be kept for inspection by any Investor in registered
office of the Company between 11 a.m. to 1 p.m. on all working days.
QUALITY CERTIFICATION:
The Company is also in the process
for getting CE Certification for all its manufactured products. After getting
this Certification, products of the Company will be well accepted in the
European Market. The Company is already ISO 9001 certified Company by CVI
(Conformity Verification International), which is internationally recognized
for the production, quality control and other qualities. This ensures that its
standards of design, development, procurement, manufacturing, testing,
installation and product support meet the most stringent norms. The ISO
Certification will give international recognisation and will help boost export
turnover.
AWARDS and ACCOLADES:
During the year under review, the
Company was conferred upon by the following honours:
i) CNBC TV-18 EMERGING INDIA AWARD (2006
ii) BUILDING INDUSTRY LEADERSHIP
AWARD (2006)
iii) CONSTRUCTION WORLD NICMAR
AWARD (2006)
HUMAN RESOURCES and INDUSTRIAL RELATIONS
FRONT:
The Industrial scenario during the
year 2006-07 remained harmonious and cordial. There was no strike or lock out
during the year and as such no man-days were lost. As on March 31, 2007 there
were 249 employees on the roll of the Company.
MANAGEMENT DISCUSSION AND ANALYSIS
REPORT:
The Company believes in business
as a force for good. Their belief is that shareholder value from business is
created when the returns generated from business. i.e. net operating profit
after taxes is higher than the cost of capital. 2006-07 was another year
of excellent performance for the Company. The Company is well positioned to
benefit from its favorable market situation with the expansion plans initiated
during the previous year starting to bear fruits in 2006-07. This coupled with
the Company's commitment to the principles of Total Quality Management (TOM)
for continuous improvements of its business processes and operational
efficiencies, has enabled the Company to achieve a much better performance for
the year under review.
The highlights of the Company's
performance in the year 2006-07 are as below :
i)
Net Sales increased by 48%
from Rs.1656.800 millions in 2005-06 to Rs. 2452.700 millions in 2006-07.
ii)
Profit Before Tax (PBT)
increased by 42% from Rs. 198.500 millions in 2005-06 to Rs. 281.000 millions
in 2006-07.
iii)
Profit After Tax (PAT) also
increased by 57% from Rs. 126.900 millions in 2005-06 to Rs.199.300 millions in
2006-07.
iv)
Earning Per Share (EPS)
(weighted) rose by 10% from Rs. 11.51 in 2005-06 to Rs. 12.62 in 2006-07, in
spite of increase in the capital.
v)
They present a review of the
performance of the Company's business operations, initiatives taken by the
Company and its overall financial performance in 2006-07, as under:-
INDUSTRY STRUCTURE and
DEVELOPMENT:
The Company is a leading Mobile
Cranes, Tower Cranes and other construction equipment manufacturer with a substantial
market share. The Company has taken several initiatives to steer through the
competitive situations in future and to retain its position in the business.
During the year 2006-07, the Company has reported a total turnover of Rs.
2658.300 millions.
The number of equipment stood at
2481.
The Company designs, manufactures,
sells and provides product support for the following equipment:-
i) Hydraulic Mobile Cranes
ii) Mobile Tower Cranes
iii) Fixed Tower Cranes
iv) Backhoe and Wheeled Loaders
v)Lorry Loader Cranes, in tie-up with Autogru PM-Italy
vi) Forklift Trucks
HYDRAULIC MOBILE CRANES:
Hydraulic Mobile Cranes are widely
used throughout Engineering, Construction and Infrastructure industry. These
machines are rough terrain, pick and carry type, used for loading, unloading,
moving, shifting and erecting materials. The Company currently manufactures
these cranes of 3 tons to 20 tons capacity. The Company is also in the process
of developing 22 ton capacity Crane.
MOBILE/FIXED TOWER CRANES:
Tower Cranes are basically used
for civil construction. Mobile Tower Cranes are self-erecting /self-folding
machines. These have provisions for built-in generators to provide electricity
needed to operate the machines. The Company currently manufactures Mobile Tower
Cranes, which can work in 6 to 12 storeyed buildings. Fixed Tower Crane are
also used in civil construction, but they are larger in size. These cranes have
maximum lifting height of 240 meters and a working radius of upto 70 meters.
BACKHOE and WHEELED LOADERS:
Front End Loader has a front
loading bucket, while a Backhoe Loader has an excavating bucket at the rear
too. These machines are used in the construction and infrastructure sector for
digging, moving, grading and loading earth and other loose aggregates.
LORRY LOADER CRANES:
Currently, the Company imports
these machines from Autogru PM-Italy and mounts them on Indian truck chassis.
These machines are widely used in Europe, America and other developed
countries. It can lift loads and transport it on its own chassis. These are
available from 2-ton/meter to 80 ton/meter.
FORKLIFT TRUCKS:
The Company has started this
product in the year under review and has got an overwhelming response from the
market. The Company is supplying both battery operated and diesel operated
Forklift Trucks with a lifting capacity of 1.5 ton to 10 Tons.
They further propose to diversify into field of hospitality business. For this
they are proposing a Special Resolution in the Notice of the forthcoming Annual
General Meeting for the approval of Members. The Company participated in an
Exhibition called 'BAUMA 2007' at Munich, Germany in the month of April 2007.
People from all over the globe had gathered for this mega event. BAUMA is the
biggest exhibition in the World for construction equipment. The Company got a
tremendous response from potential Customers and International Dealers
alike.
The Company is supplying equipment to most of the leading Private and
Government Sector Companies in India and is also touching the foreign horizons
of Middle-East Asian, South East Asian and African countries. The Company's
products are being exported to Kuwait, Dubai, Saudi Arabia, Bahrain, Nigeria,
Algeria, Kenya, Phillippines, Mauritius, Madagascar, Libya, Bangladesh, Nepal,
Bhutan, Sri Lanka, Malaysia, Kazakhstan, Singapore, Ethiopia, South Africa,
Portugal, Iran, Oman, New Zealand, Ghana, Germany etc.
The Company has been certified as an ISO-9001 Company by CVI (Conformity Verification
International) and its products have better functional parameters, are cost
effective and come along with the best in the line product support through its
Country wide network of Sales and Service outlets and Regional Offices. The
Company is also in the process of getting CE Certification for all its
manufactured products, which will help the Company to expand in the European
Market as well.
MAIN FOCUS AREAS AND APPLICATIONS:
Majority of the equipment are
supplied for Infrastructure Development and today Infrastructure is the
buzzword for the growth of Indian Economy. The Company's equipment are widely
used in all major Infrastructure, Construction, Heavy Engineering and
Industrial Projects across the Country.
Due to the versatility of the Company's
Equipment to satisfy a vast range of possible applications. the same are being
successfully used in many Sectors like Infrastructure Construction, Power
Projects, Ports and Shipyards, Dams, Metro Rail, Road Coal Mines, Steel
Industry, Engineering Industry. Railways, Cement Petroleum. Defence, Chemicals
and Fertilizer Plants, Building Construction etc. to name a few.
OPPORTUNITIES, THREATS, RISK and
CONCERN:
i)
The business of 1he Company
is primarily based in India and it derives substantial portion of revenue from
the Indian market. Therefore, any slowdown in the Indian economic growth. in
particular. industrial growth and infrastructure, may negatively impact
Company's business.
ii)
Any change in the Government Policy or its budgetary allocation to
the Infrastructure Sector will have a major impact Company's business.
iii)
Increase in prices of any of
the raw materials namely Steel etc., will affect the bottom line of the Company.
iv)
Change in the Tax Structure
of Sales Tax, Entry Tax, Service Tax. VAT etc.
v)
Increasing competition from
National and International players.
vi)
Change in Political and
Regulatory Environment.
vii)
New Strategic Partnerships
and Acquisitions.
viii)
Their ability to expand
International Business.
ix)
Unforeseen Business Losses.
INFORMATION and TECHNOLOGY:
The Company continues to invest in
the IT infrastructure to support business applications. They have robust
Virtual Private Network supplemented by high bandwidth to connect with remote
locations. This has enabled the Company to co-ordinate activities across
geographically dispersed locations,
They have already decided and started to implement ORACLE APPS ERP. This is
getting implemented across the Company in phased manner and will be fundamental
IT capability for the future. This is also accompanied by significant
re-engineering and simplification of their business process to improve the
quality and customer service and reduce costs.
HUMAN RESOURCES:
The Company is a technology-driven
Company and has its own HR Policy, which focuses on qualitative and transparent
recruitment, training and development, performance management, labour welfare
etc. The Company believes that the development of employees is the prime
responsibility of an organization and its employees are key contributors to its
business success. It believes that to maintain the leading position in
construction equipment industry, the Company requires to provide good working
culture and competitive compensation packages, to attract and retain talented
people.
The Company seeks to establish and maintain an environment that supports its
business processes and ensures that employee performance is evaluated against
the achievement of objectives, which are in line with its long-term goals. All
employees are provided with an opportunity to discuss their performance, plan
their development and submit self-appraisals.
DISCUSSION ON THE RESULTS OF OPERATIONS:
As evident from the above
Financial Statement, the Company has shown a consistent growth in its
operations and profitability during the last five years. From a turnover of
Rs.166.000 millions in the financial year 2002-03, it achieved a turnover of
Rs. 2452.700 millions in the financial year 2006-07. There has been a
significant growth in turnover of the Company during the last five years, 107%
in financial year 2003-04, 155% in financial year 2004-05, 89% in the financial
year 2005-06 and growth of 48% in the financial year 2006-07. The turnover of
the Company has shown a CAGR of 71.35% in span of last five years.
COMPARISON OF PERFORMANCE FOR FY
2006-07,VIS-A-VIS FY 2005-06:
NET SALES:
Net Sales for the fiscal year
2006-07 was Rs. 2452.700 millions as compared to Rs. 1656.800 millions for
fiscal year 2005-06, giving a rise of 48%. Growth in Turnover is due to higher
Order conversion rate and increased brand building exercise conducted by the
Company.
RAW MATERIALS and GOODS CONSUMED:
In the year 2005-06, the material
consumed was Rs. 1237.800 millions, which increased to Rs. 1860.800 millions in
2006-07 i.e. by 50%, due to increase in turnover by 48% and slight increase in
the steel prices.
MANUFACTURING EXPENSES:
Manufacturing expenses during year
2006-07 were Rs. 126.200 millions as compared to Rs. 74.400 millions in year
2005-06, which is an increase of 70%. The increase is primarily due to increase
in the Production and Freight Cost.
STAFF COST:
The Company's staff costs for the
period increased by 29% due to increase in manpower. Staff costs stood at Rs.
62.900 millions during fiscal 2006-07 as compared to Rs. 49.000 millions in
fiscal 2005-06. Increase in volume of business necessitated recruitments
in various Plants/ branches across the Country.
The Company's manpower has
increased from 176 as on 31st March, 2006 to 249 as on 31st March, 2007.
SELLING AND DISTRIBUTION EXPENSES:
Selling and Distribution expenses
increased by 46% from Rs. 61.300 millions in fiscal 2005-06 to Rs. 89.400
millions in fiscal 2006-07. This increase was due to substantial growth in
sales and aggressive marketing, sales promotion and advertising of its products
across the country and overseas. The Company continued to obtain high volume of
business from the Government, PSUs etc., which require additional selling and
distribution expenses.
ADMINISTRATION and OTHER EXPENSES:
There has been 76% increase in
Administration and other expenses cost in comparison to the previous year.
During fiscal 2006-07 the administration and Other expenses were Rs.53.400
millions, whereas it was Rs. 30.400 millions during fiscal 2005-06. The
increase is mainly due to increase in Net Sales, Foreign Traveling Expenses to
make the Company global and new Software expenses.
INTEREST:
During the period Company's interest cost increased by Rs. 2.900 millions, due
to more working capital required by the Company for increased turnover.
OTHER INFORMATION:
All Credit Facilities from ICICI Bank Limited and_CITI Bank N.A. are secured by way of hypothecation of the Company's entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movable including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future on pari passu basis and First charge by way of equitable mortgage of 'property situated at Jajru Road, 25th Mile Stone, Mathura Road, Ballabhgarh, Haryana on pari passu basis and also unconditional and irrevocable personal guarantees of the Promoters.
The Company has acquired 73.90% stake in SC FORMA SA, a Romanian Company thru its wholly owned subsidiary (WOS), FRESTED LIMITED, CYPRUS, in the line of its "Object of the Issue" mentioned in the Prospectus of its IPO.
|
Contingent
Liabilities |
31.03.2007 |
|
|
(In millions) |
|
Bank Guarantees |
38.593 |
|
Letter of Credits |
48.486 |
|
Claim against the Company, not acknowledge as Debts |
3.474 |
|
Sales Tax matters, pending before Assessing / Appellate Authorities |
10.069 |
|
Total |
100.622 |
Fixed Assets
· Land,
· Computer,
· Electric Equipment,
· Plant and Machinery,
· Furniture and Fixtures,
· Fax Machine,
· Generators,
· Scooters,
· Type Writers,
· Test Weights,
· Motor Vehicles,
· Photocopy Machines,
· Air Conditioners,
· Cooler and Refrigerator,
· Computer
· Cranes,
· Building, etc.
FORM 8:-
|
Corporation identity number or foreign
company registrations number of the company
|
U74899DL1995PLC064347 |
|
Name of the company |
ACTION CONSTRUCTION EQUIPMENT PRIVATE LIMITED |
|
Address |
Plot No. 7,
Pocket II, Market Sarita Vihar, New Delhi – 110044 |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Hypothecation, equitable mortgage or
mortgage of property by depositing the title deeds and others |
|
Particular of the charge holder |
ICICI Bank Limited NBCC Place, Bhishma Pitamah Marg, Pragati
Vihar, New Delhi – 110003, India E-mail : appl.helpdesk@mca.gov.in |
|
Amount Secure by the charge |
Rs. 80.000 millions |
|
Date of instrument modifying the charge |
28.07.2006 |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
The above is to secure the following
facilities : Cash Credit [CC] Limit of Rs. 50 million Working Capital Demand Loan [WCDL] [Sub-limit
of CC Limit of Rs. 30 millions] Derivates [Sub-limit of CC Limit] of Rs.
1.20 million LC Limit of Rs. 30 millions BG Limit [Sub-limit of LC Limit] of Rs. 15
million |
|
Description of the property charge whether
it is a charge on |
Immovable Properties, Plant and Machinery,
Furniture and Fixtures, Stock in trade, Book debts, Vehicles and Others |
|
Modification charge Charge identification number of the charge
to be modified |
80002427 |
|
Brief description of the instrument
modifying the charge |
Letter ceding pari passu charge issued by
ICICI Bank dated 28.07.2006 |
|
Particulars of the Property charged |
Property situated at Jajru Road, 25th
Mile Stone, Mathura Road, Ballabgah, Haryana |
|
Particulars of present modification |
For mortgage and charge of ICICI shall in
all respects rank pari passu with the mortgage and charges of Citi Bank N.A.
to secure their working capital facilities of Rs. 120 millions |
|
Corporation identity number or foreign company
registrations number of the company |
U74899DL1995PLC064347 |
|
Name of the company |
ACTION CONSTRUCTION EQUIPMENT PRIVATE LIMITED |
|
Address |
Plot No. 7,
Pocket II, Market Sarita Vihar, New Delhi – 110044 |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Hypothecation, equitable mortgage or
mortgage of property by depositing the title deeds and others |
|
Particular of the charge holder |
ICICI Bank Limited NBCC Place, Bhishma Pitamah Marg, Pragati
Vihar, New Delhi – 110003, India E-mail : appl.helpdesk@mca.gov.in |
|
Amount Secure by the charge |
Rs. 80.000 millions |
|
Date of instrument modifying the charge |
12.05.2006 |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
The above is to secure the following
facilities : Cash Credit [CC] Limit of Rs. 50 million Working Capital Demand Loan [WCDL]
[Sub-limit of CC Limit of Rs. 30 millions] Derivates [Sub-limit of CC Limit] of Rs.
1.20 million LC Limit of Rs. 30 millions BG Limit [Sub-limit of LC Limit] of Rs. 15
million |
|
Description of the property charge whether
it is a charge on |
Immovable Properties, Plant and Machinery, Furniture
and Fixtures, Stock in trade, Book debts, Vehicles and Others |
|
Modification charge Charge identification number of the charge
to be modified |
80002427 |
|
Brief description of the instrument
modifying the charge |
Letter of amendments to master facility
agreement & master facility agreement dt. 12.05.2006 |
|
Particulars of the Property charged |
Property situated at Jajru Road, 25th
Mile Stone, Mathura Road, Ballabgah, Haryana |
|
Particulars of present modification |
Interest on cash credit limit has been
changed as following 3.25% below IBAR + CC Pemia at monthly rests subject to
a minimum of 10% p.a. The ICICI IBAR as on date is 12.75% p.a. and The CC
Premia as on |
WEBSITE DETAILS
The company is the leading mobile crane manufacturing company in India which has progressed all along to become a professionally managed ISO 9OOI Certified company. Subject is promoted by a technocrat, assisted by a team of experienced managers and engineers, managers and engineers.
Subject is a dynamic and powerful enterprise with it's full
fledged production facilities based in industrial township of Faridabad, which
is 45 Kms. from New Delhi, National Capital of India.
The company equipment is being successfully used in many
industrial sectors like infrastructure, construction, roads, engineering
industry, coal mines, chemical and fertilizer plants, power stations, ports,
heavy project engineering industry, railways, cement industry, oil industry,
defense etc. to name a few. Subject range of cranes can be adapted to satisfy a
vast range of possible applications due to their versatility.
The policy of responding with speed and expertise has been
rewarded over the years by a constant growth of the company and today subject
is a leading manufacturer of cranes in the country.
The company has it's central marketing office in New Delhi
and workforce employed in the sections of production, research and development,
materials, marketing, after sales assistance, finance and administration are
engaged to take the company to new horizons of success.
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.39.97 |
|
UK Pound |
1 |
Rs.79.78 |
|
Euro |
1 |
Rs.62.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|