MIRA
INFORM REPORT
|
Report Date : |
25.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ELGI
EQUIPMENTS LIMITED |
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Registered Office : |
Elgi
Industrial Complex III, Trichy Road, Singanallur, Coimbatore - 641 005,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
14.03.1960 |
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Com. Reg. No.: |
18-351 |
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CIN No.: [Company
Identification No.] |
L29120TZ1960PLC000351 |
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Legal Form : |
A public
limited liability company. The
company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer
of reciprocating and screw compressors in the lower horsepower range. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 5400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track. Trade relations are fair. Financial position
is good. Payments are usually correct and as per commitments. The company is
doing steady business. It can be considered good for any normal business
dealings at usual trade terms. The company can be regarded a promising
business partner in a medium to long run. |
LOCATIONS
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Registered Office : |
Elgi Industrial Complex III, Trichy Road, Singanallur,
Coimbatore - 641 005, Tamilnadu, INDIA |
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Tel. No.: |
91-422-2589555 / 2574691 to
2574695 |
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Fax No.: |
91-422-2573697 / 2576849 |
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E-Mail : |
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Website : |
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Factory 1 : |
Elgi Industrial Complex, Trichy Road, Singanallur, Coimbatore - 641
005 |
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Tel. No.: |
91-422-2589555 |
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Fax No.: |
91-422-2573697 |
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Factory 2 : |
Private Industrial Estate, Kurichy,
Coimbatore - 641 021, India |
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Tel. No.: |
91 422 2672201-3 / 2675325/
2675326/2674462 |
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Fax No.: |
91 422 2675446 |
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E-Mail : |
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Customer
Service Division |
Located At :
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. L. G.
Varadarajulu |
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Designation : |
Chairman |
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Name : |
Dr. Jairam
Varadaraj |
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Designation : |
Managing
Director |
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Age : |
45 Years |
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Qualification : |
B. Com.,
M.B.A., Ph.D.(USA) |
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Experience : |
18 Years |
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Date Of Appointment : |
29.05.1992 |
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Name : |
Mr. L. G.
Ramamurthi |
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Designation : |
Director |
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Name : |
Mr. C. Soundaran |
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Designation : |
Director |
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Qualification : |
B. E.M.S.,
(USA) |
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Experience : |
39 years as
Industrialist |
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Directorship held : |
Coimbatore
Private Industrial Estate Limited |
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Committee Memberships : |
Audit Committee Shareholder and Investor
Grievance Committee. |
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Name : |
Mr. N.
Mohan Nambiar |
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Designation : |
Director |
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Name : |
Dr. T.
Balaji Naidu |
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Designation : |
Director |
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Name : |
Mr. B.
Vijayakumar |
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Designation : |
Director |
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Name : |
Mr.
Sudarsan Varadaraj |
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Designation : |
Director |
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Qualification : |
B.E.(Hons), M.S
(Mechanical Engg.) |
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Experience : |
20 years as
Industrialist |
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Directorship held : |
1.
EIgitread (India) Limited 2. Elgi
Rubber Products Limited 3. Kovilpatti
Laxmi Roller Flour Mills Limited 4. Super
Spinning Mills Limited 5.
Vijayeswari Textiles Limited 6.
EIgitread Limited 7. EIgi
Electric & Industries Limited 8. Geo
Renewable Power Limited 9. Rayalaseema
Technologies Limited |
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Name : |
Dr. Ganesh
Devaraj |
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Designation : |
Director |
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Qualification : |
B.E. (Electronic
and Comm.), M.S (Electrical Engg.), Ph. D (USA) |
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Experience : |
10 years as
Industrialist |
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Directorship held : |
Soliton
Technologies Private Limited, |
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Name : |
Mr. M.
Ramprasad |
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Designation : |
Director |
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Name : |
Mr.
Harjeet Singh Wahan |
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Designation : |
Whole Time
Director |
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Age : |
59 Years |
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Qualification : |
B.E.
(Elec.), DBM |
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Experience : |
35
Years |
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Date Of Appointment : |
20.12.1995 |
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Previous
Employment : |
KSB
Pumps Limited |
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Name : |
Mr.
V. T. Govindarajan |
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Designation : |
Director
Global Sales and Business Development |
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Age : |
48
Years |
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Qualification : |
B.E.,
PGDBM |
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Experience : |
25
Years |
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Date Of Appointment : |
03.01.2007 |
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Previous
Employment : |
Rane
TRW Steering Systems Limited |
KEY EXECUTIVES
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Name : |
Ms. H. Hema |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
6279264 |
8.03 |
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Bodies Corporate |
15722803 |
20.11 |
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Any Others(Specify) |
4099200 |
5.24 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
5386247 |
6.89 |
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Financial Institutions / Banks |
1500 |
0.00 |
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Insurance Companies |
877685 |
1.12 |
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Foreign Institutional Investors |
346482 |
0.44 |
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Non-institutions |
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Bodies Corporate |
9730227 |
12.45 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
19640009 |
25.12 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
14064432 |
17.99 |
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Any Other (specify) |
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Clearing member |
32747 |
0.04 |
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Market Maker |
8813 |
0.01 |
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NRI [Repatriate] |
282974 |
0.36 |
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NRI [Non -Repatriate] |
117665 |
0.15 |
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OBCs |
1584192 |
2.03 |
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|
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Total |
78174240 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
of reciprocating and screw compressors in the lower horsepower range. |
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Products : |
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Exports : |
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Countries : |
Australia,
Germany, Indonesia, Malaysia, Middle East, Nepal, Singapore, South Africa,
Sri Lanka, Thailand and USA |
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Imports : |
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Countries : |
Germany,
Italy, Japan, Korea, USA and UK |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Air Compressors |
Numbers |
|
32500 |
49608 |
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Automotive
Equipments |
Numbers |
|
12000 |
20234 |
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Others |
Numbers |
|
100125 |
1684 |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
1210 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
STATUTORY
AUDITORS RJC
Associates Chartered
Accountant Srivatsan
& Gita Chartered
Accountant COST
AUDITOR Dr. G L.
Sankaran Cost Accountant |
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Subsidiaries : |
Adisons
Precision Instruments Manufacturing Company Limited |
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,00,000 |
Equity Shares |
Rs.1/- each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
Fully Paid Up |
|
|
|
|
6,00,00,000 |
Equity Shares [Out of above 48750000 Shares were issued as Bonus Shares
by Capitalization of Reserves] |
Rs. 1/- each |
Rs. 60.000 millions |
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Party Paid Up |
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|
2,00,00,000 |
Equity Shares [Out of which
1,81,74,240 Equity Shares were subscribed and Paid up @0.15 paise for
18174240 shares.] |
Re.1/- each |
Rs. 2.730 Millions |
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Total |
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Rs. 62.730 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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1] Share Capital |
62.730 |
62.730 |
62.730 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1298.970 |
1150.860 |
1046.050 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1361.700 |
1213.590 |
1108.780 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
44.450 |
65.940 |
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2] Unsecured Loans |
1.820 |
1.860 |
22.910 |
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TOTAL BORROWING |
1.820 |
46.310 |
88.850 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
22.360 |
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TOTAL |
1363.520 |
1259.900 |
1219.990 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
390.080 |
352.570 |
377.880 |
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Capital work-in-progress |
0.800 |
2.760 |
16.500 |
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INVESTMENT |
160.540 |
160.040 |
222.070 |
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DEFERREX TAX ASSETS |
5.830 |
1.630 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
556.800
|
410.420
|
455.050 |
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Sundry Debtors |
653.090
|
658.080
|
495.080 |
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Cash & Bank Balances |
117.320
|
33.510
|
43.210 |
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Other Current Assets |
1.640
|
1.840
|
0.340 |
|
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Loans & Advances |
741.020
|
559.080
|
427.590 |
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Total Current Assets |
2069.870
|
1662.930
|
1421.270 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
723.120
|
519.420
|
514.330 |
|
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Provisions |
555.070
|
412.140
|
313.690 |
|
Total Current Liabilities |
1278.190
|
931.560
|
828.020 |
|
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Net Current Assets |
791.680
|
731.370
|
593.250 |
|
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MISCELLANEOUS EXPENSES |
14.590 |
11.530 |
10.290 |
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TOTAL |
1363.520 |
1259.900 |
1219.990 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
3785.770 |
3120.700 |
2918.310 |
|
|
Other Income |
36.960 |
64.300 |
0.000 |
|
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Total Income |
3822.730 |
3185.000 |
2918.310 |
|
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|
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Profit/(Loss) Before Tax |
344.640 |
268.720 |
308.890 |
|
|
Provision for Taxation |
110.900 |
92.380 |
94.990 |
|
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Profit/(Loss) After Tax |
233.740 |
176.340 |
213.900 |
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Earnings in Foreign Currency : |
|
|
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|
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Direct Export |
698.950 |
558.570 |
|
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Indirect Export |
105.000 |
55.380 |
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Total Earnings |
803.950 |
613.95 |
557.120 |
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Imports : |
|
|
|
|
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|
Raw Materials |
265.240 |
222.430 |
|
|
|
Stores & Spares |
2.380 |
2.850 |
280.030 |
|
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Capital Goods |
75.130 |
18.940 |
|
|
|
Others |
174.740 |
150.720 |
|
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Total Imports |
517.490 |
394.940 |
280.030 |
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Expenditures : |
|
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|
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Material Consumed |
2387.340 |
1953.400 |
|
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Salaries, Wages, Bonus, etc. |
353.650 |
278.940 |
|
|
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Others Expenses |
657.040 |
533.830 |
2605.300 |
|
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Depreciation |
69.190 |
93.190 |
|
|
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Amortization of Intangible Assets |
6.220 |
5.290 |
|
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Total Expenditure |
3473.440 |
2864.650 |
2605.300 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
1071.000
|
1178.400
|
|
Other Income |
|
9.200
|
32.700
|
|
Total Income |
|
1080.200
|
1211.100
|
|
Total Expenditure |
|
950.500
|
1012.500
|
|
Operating Profit |
|
129.700
|
198.600
|
|
Interest |
|
[2.400]
|
[2.500]
|
|
Gross Profit |
|
132.100
|
201.100
|
|
Depreciation |
|
15.300
|
16.600
|
|
Tax |
|
39.900
|
55.400
|
|
Reported PAT |
|
78.300
|
131.900
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.02 |
0.06 |
0.07 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.01 |
0.03 |
|
Current Ratio |
1.66 |
1.63 |
1.55 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.39 |
2.98 |
2.88 |
|
Inventory |
8.59 |
7.91 |
6.76 |
|
Debtors |
6.34 |
5.94 |
7.44 |
|
Interest Cover Ratio |
24.44 |
26.19 |
33.52 |
|
Operating Profit Margin(%) |
10.32 |
11.90 |
13.23 |
|
Profit Before Interest And Tax Margin (%) |
8.65 |
9.18 |
10.17 |
|
Cash Profit Margin (%) |
7.29 |
8.46 |
9.90 |
|
Adjusted Net Profit Margin (%) |
5.63 |
5.74 |
6.83 |
|
Return on Capital Employed (%) |
27.67 |
25.81 |
29.25 |
|
Return on Net Worth (%) |
18.15 |
16.92 |
20.74 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject
was incorporated on 14th March, 1960 at Coimbatore in Tamilnadu as a
private limited company having Company Registration Number 351 and converted
into a public limited company in January, 1975.
Incorporated
in 1960 as a private limited company, Elgi Equipments was converted into a
public limited company in 1975 and came out with a public issue of 75,000
shares. It was promoted by L G Balakrishnan, his brothers and associates.
Hailing from the Elgi stable, EEL manufactures reciprocating, borewell and
screw compressors. It also makes and sells garage equipment, mobile utility
systems, bottling equipment and automobile accessories such as power brakes,
pneumatic horns and wipers. It has two manufacturing units at Coimbatore. As
part of its modernisation plans, the company invested Rs 400 millions in the
upgradation and expansion of the manufacturing facilities, especially of
compressors.
The company was initially manufacturing garage equipment like low-range
reciprocating compressors, car-washing machines and hydraulic lifts, with
technical know-how from Pumpen Fabrik Urach, Germany. Later, in technical
collaboration with Landwehr, Germany, the company started manufacturing
lubricating equipment. During 2003-04, the company included three new products
namely, Vayu Series Borewell Compressors, 3.5KVA Genset and Electronic Tyre
Inflator. In the year 2004-05, the company commissioned its first Four
Centrifugal Compressor and Tank Mounted Screw Compressor.
The company has obtained the technology for the manufacture of pasteurising
plants from Gobel, Germany; screw compressors from Sullair Corporation, the US;
bottle-washing machines from Krones, Germany; and automatic vehicle- washing
machines from Ceccato, Italy. To strengthen its technologies, the company has
tied up with City University, London, and hired consultants to help improve its
products and processes. In 1999-2000, a branch office was established in
SriLanka to explore the Sri Lankan market. During 2004-05, the company entered
the petrol or kerosine engine business through an association with Robinson of
Japan via their associates in Sri Lanka.
In Aug. 2000, Elgi Equipments has entered into technical collaborations with
Hitachi to produce Oil Free Air Compressors in India. It has also tied up with
Samsung Techwin Company Limited, an affiliate of the Samsung group, to bring to
India their centrifugal compressor - Turbo Master. To upgrade automotive
equipment and also to manufacture Compressors with higher capacities and
pressures the company has launched a joint technology upgradation plan with
City University UK. During 2002-03 the total capital expenditure incurred were
Rs.78.12 million and the captial expenditure were funded by way of internal
accruals.
In the year 2004, the company has entered into a Collaborative Venture with JP
Sauer & Sohn, Germany to envisage the manufacturing of compressor required
for Battle ships. The company made an arrangement with Mahindra & Mahindra
for supplying the engines for their gensets in 2004-05.
During 2004-05, the plan to merge its wholly owned subsidiary viz Adisons Precision
Instruments Manufacturing Limited with the company is on progress.
BUSINESS
Subject
is the leading manufacturer of reciprocating and screw compressors in the lower
horsepower range. It is the market
leader in bore and water-well compressors. It also manufactures garage
equipments, automobile accessories and markets lube oil for compressors.
The
company was intially manufacturing garage equipment like low-range
reciprocating compressors, car-washing machines and hydraulic lifts, which
technical know-how from Pumpen Fabrik Urach, Germany.
The
company has technical collaboration with Landwehr, Germany, the company started
manufacturing lubricating equipment.
In
August 2000, the company equipments has entered into technical collaborations with
Hitachi to produce oil Free Air Compressors in India. It has also tied up with
Samsung Techwin Company Limited, an affiliate of the Samsung group, to bring to
India their centrifugal compressor – Turbo Master.
Air
Compressors account for about 65% of company's turnover. The balance is accounted for by other garage
equipment such as car washer Hydraulic hoist, automobile accessories such as
pneumatic horns, pneumatic wipers, power brakes and also automatic pasteurising
plants for beer/soft drink industry.
In an
exclusive agreement with Karcher, Germany, it markets and services Karcher
cleaning equipments. It also markets
and services a range of wheel balancers, oil suction units and AC recovery
plants manufactured by Werther, Italy.
It has ventured into the marketing of a special oil for air screw
compressors. In collaboration with
Chemoleums, a fast-growing automotive and industrial lubricants manufacturer
(having technical expertise from Caltex, USA), it had launched Elgi Airlube, a
high performance oil specially designed and developed for air compressors. In the low-end range of compressors, the
company has a market share of 40%,
while the rest is accounted for by the unorganised sector, which is
particularly strong in the agricultural sector. It is the only manufacturer who provides the entire range of
garage equipment. It also leverages on
its distribution set up to introduce other engineering equipment.
REVIEW
OF OPERATIONS:
The company ended with net sales of Rs.3785.77 million as against Rs.3120.70
million. The details of division wise performance and other operational details
are discussed at length in the Management Discussion and Analysis Report which
is part of the Letter from the Chairman, given elsewhere in this report.
SUBSIDIARY COMPANIES:
a. The Company has been exempted from publishing the audited financial results
of its wholly owned subsidiary company, M/s. Adisons Precision Instruments
Manufacturing Co. Ltd., along with this annual report, for the year 2006-07,
vide letter No.47/34/2007-CL-III, dated 15/02/2007 from the Government of
India, Ministry of Company Affairs. The annual accounts of the subsidiary
company are available for inspection by any shareholder, at the registered
office of the holding and subsidiary companies.
b. The process of transferring the automotive equipment business to a separate
company is on. To initiate the process, we have incorporated a new company ATS
Elgi Ltd., which is a wholly owned subsidiary of your company and intend to
transfer the business of the said division to it, after getting the approval of
the shareholders as per the requirement of the Companies Act, 1956, by postal
ballot method, which is discussed at length in the notice as well as in the
explanatory statement annexed thereto. Once this is through, the business would
be with the wholly owned subsidiary.
FUTURE PLANS:
a. Compressors:
On the sales front, your company intends to focus on improving its
market share in Large Screw compressors, and Oil Free Screw compressors. Your
company would pursue opportunities in segments that are growing faster, where
our current presence is minimal. Your company also intends to participate
aggressively in the growing construction & mining segment of the compressor
market, to assert its dominant position. Your company would be improving the
market reach by focusing on the channel network, both in terms of efficiency of
the channel and the number of channel partners.
b. Automotive equipment:
This
division is set to go as a separate company, subject to approval from the
shareholders. With training and development in the forefront, your company is
having plans to establish its own training centers in major cities where
training would be provided to your company's service engineers, customers on
request, etc. As a first step your company is planning to put up a training
centre in Mumbai.
In the
oil segment, your company is to position itself as an integrated lube
management service provider. For this your company has tied-up with an oil
major. Your company is also working towards establishing the concept of 'quick
oil change' with the support of a flagship national oil company.
C. EXPORTS:
On the
international front, in its focus to have direct presence world wide, your
company is venturing into key markets for setting up manufacturing presence,
for lower costs and greater access to customers.
Your
company is also putting efforts to increase the market share in existing
markets through enlarging the distributor network. Your company's strategy to
enter developed markets through key OE partnerships is yielding results and
your company will pursue this aggressively in the coming years also.
Contingent Liabilities not provided for
Guarantee and Letter of Credit : Rs.
110.970 Millions
Uncalled liability in respect of Partly paid
shares : Rs. 0.390
Million
TRADE REFERENCE
- ACE Fit Engineers And Manufacturers
- Amr Industrials
- Balaji Industries
- Bharat Udyog Kendra
- CT Engineering
- Canle Valves Private Limited
- Easwaran Industries
- Echo Star Industrial Products
- Gluck (India) Manufacturing Company
- Gokul Engineering Industries
- Hi-Power Automotive Parts Private
Limited
- Indus Processors
- Janatics India Private Limited
- Jaytek Engineering
- Klassic Engeneering
- Micro Industries
- Marco Engineering Industries
- Mercury Fittings (P) Limited
- Ramprasad Tubes And Bars Private
Limited
- Sanpreet Castings Private Limited
- Veej Pee Aluminium Foundry
- Vht Engineering
- Vignesh Fasteners
- Vinayag Enterprises
- Viswam Industries
FIXED ASSETS
- Land
- Buildings
- Plant & Machinery
- Electrical Fittings, Furniture &
Office Equipments
- Motor Vehicle
- Canteen Equipments
AS PER WEBSITE
Elgi was established in 1960 as a service station equipment
and reciprocating compressor manufacturing company. Over the years ELGI has
become a multi-product, multi-market company manufacturing technically superior
products.
The ELGI product lines today, broadly comprise, Rotary Compressors,
Reciprocating Compressors Centrifugal Compressors, Automotive Equipment, Diesel
Engines and Manufacturing and engineering services.
ELGI
has two manufacturing locations in Coimbatore, India, with 22 acres of land and
352,000 sq ft of built up factory area.
With a vast network of sales & service outlets manned by
well-trained, highly qualified and motivated engineers and marketers, ELGI aims
to conquer the domestic market and be a meaningful global player in its core
products.
ELGI
endeavors to continuously improve processes, products and technology, with the
objective of serving people better.
This in
turn has made ELGI the undisputed leader in the products it manufactures with a
strong reputation for quality and service.
ELGI's
core competencies are serviced by five major Divisions:
- Rotary Compressor
Division
- Reciprocating,
Railways and Original Equipment Division
- Automotive Equipment
Division
- Engines Division
- Manufacturing
and Engineering Services
|
Division |
Core
Competencies |
|
Rotary
Compressor Division (ROCD) |
Design,
development and manufacture of electric and diesel powered screw air compressors. |
|
Reciprocating
Compressors, Railway Compressors and Original Equipment Division (RCD) |
Design,
development and manufacture of single and two stage reciprocating
compressors, railway compressors and a variety of compressor solutions for railway
applications. Their competence also lies in customized packages for
applications like circuit breakers, engine starting etc. |
|
Automotive
Equipment Division (AED) |
Design
and manufacturing of lifts, paint booths and other automotive servicing and
diagnostic equipment. |
|
Diesel
Engines Division |
Design,
development and manufacture of single stage diesel engines for constant speed
as well as automobile applications. |
|
Manufacturing
end Engineering Services |
One stop
shop for end to end engineering services and precision components. |
Compressor
Technology at ELGI is classified into reciprocating compressors, screw
compressors, centrifugal compressors and oil-free compressors. ELGI
manufactures all these types of compressors covering a range from 0.75HP to
1500HP for volumes from 1.8 cfm (cubic feet per minute) to 80000 cfm. While
selling individual products can meet the objectives of a customer's
requirement, ELGI's marketing strategy has always been to partner with a
customer and provide total air solutions to industries that require compressed
air for their operations.
The Automotive Service Equipment Division manufactures
lubrication equipment, two-wheeler and four-wheeler hoists, paint booths, AC
recovery units, crash repair systems, wheel balancers and various other
diagnostic equipment. Most of the modern garages are fitted with ELGI's garage
equipment. As a result, today their customers have increased their speed of
analyzing faults, reducing wastage of resources.
ELGI is
today, the market leader and Asia's largest manufacturer of air compressors and
automobile service station equipment.
ELGI's
products are used in a wide range of applications in areas ranging from mining,
defence, transport, pharmaceuticals, power, oil, railways, chemicals, textiles,
printing to ship building, paper, electronics, telecommunications, medical,
food & beverages and plastics.
Products
ELGI is
changing everyday. It is pursuing new business opportunities created by
developments in technology. ELGI already leads India in compressor technology
and is a prominent player in Automotive Service Station Equipment. Engines and
ELGI New Generation Compressors (low range reciprocating compressors) are today
emerging as new business sectors for the company. R&D is also a major
thrust area at ELGI. In fact a large share of products currently under the ELGI
fold are developed in-house.
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.39.43 |
|
UK Pound |
1 |
Rs.77.06 |
|
Euro |
1 |
Rs.57.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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. |
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 |
|