MIRA
INFORM REPORT
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Report Date : |
29.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
ELECON
ENGINEERING COMPANY LIMITED |
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Registered Office : |
Post Box 6,
Anand-Sojitra Road, District Kaira, Vallabh Vidyanagar – 388120, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28.11.1961 |
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Com. Reg. No.: |
04-01082 |
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CIN No.: [Company
Identification No.] |
L29259GJ1960PLC001082 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDE00200E |
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PAN No.: [Permanent
Account No.] |
AAACE4644D |
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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 : |
Manufacturing and
Selling of Material Handling Equipments and Reduction Gears. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 7500000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is well
established company having fine track. Trade relations are fair. The company is
doing well. Financial position is good. Payments are usually correct and as
per commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. The company can
be regarded as a promising business partner in a medium to long run. |
LOCATIONS
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Registered
Office : |
Post Box # 6,
Anand-Sojitra Road, District Kaira, Vallabh Vidyanagar – 388 120, Gujarat,
India |
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Tel. No.: |
91–2692–237016/236521/236590 |
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Fax No.: |
91–2692–236457/236527 |
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E-Mail : |
mhe.mkt@gnahd-mhe.globalnet.ems.vsnl.net.in |
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Website : |
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Overseas
Offices : |
Elecon Singapore Pte. Limited Elecon Australia Pty. Limited Tel: 2 9542 2955 (National) Elecon Africa Pty. Limited Cell : +27 82900 6829 ELECON MIDDLE EAST FZCO Fax: +971 4 3510461 |
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Factory : |
Material Handling Division
(MHE-Division) Anand-Sojitra
Road, Vallabh Vidyanagar-388120, Gujarat Gear Division Anand-Sojitra
Road, Vallabh Vidyanagar- 388120, Gujarat Wind Mill
Division Anand-Sojitra
Road, Vallabh Vidyanagar- 388120, Gujarat |
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Branches : |
Mr.
A. K Bhattacharya/Mr. J. K. Angopadhya 68,
Saratbose Road, Kolkata – 700025, West Bengal, India Phone
: 91-33-24761861/24760876/24760904/24760926 Mr.
J. K. Paul Mr.
J. Sengupta Besides
Office of Tubes and Structural, Katras Road, Matkuria Phone
: 91-326-2306283/2302320 Mr.
S. C. Das Baradwari
Enclave, Gangotri Complex, Cottage No. 3, Sakchi Mr.
Bimal Oza / Mr. Kalpesh Shah Shree
Krishna Centre, 12, 2nd Floor, Near Mithakhali Six Roads, Mr. D. N. Mehta 1st Floor, Apeejay
House, Dinshaw Vachha Road, Churchgate Reclamation, Mumbai 400 020,
Maharashtra, India Phone :
91-22-22821315/22820725/22821365/22870792/
22815693/22815695 Mr. Amar
Deshpande 501,
Ketki Building, 3rd Floor, 9, Sadashiv Peth, Near Alka Theatre,
PUNE – 411030, Maharashtra, India Mr.
M. B. Desai Anand
Sojitra Road, Vallabh Vidyanagar 388120,
Gujarat, India. Mr.
Bhadresh M. Joshi 321, Blue Diamond Comm. Complex, 3rd Floor, Near
"VUDA" office Mr.
MM Nanda 418, 4th Floor, World Trade Center, Babbar Road, New Delhi
110 001, INDIA Mr.
S. Rajamani East
Coast Center, 3rd Floor, 553, Mount Road, Post Box No. 1497 srajamani@mademtici.elecon.com
Mr.
R. Haridoss AA3,
1st Floor, Ca’ Imperial, Court Apartments, 33/1, 1st
Floor, G-4/14, Cunningham Road, Bangalore 560 052, India Phone
: 91-80-22260219/22250082 Mr. K. Rajgopalan / Mr. M. Venkatesan Phone : 91-40-27844748/27845250/27846984 Mr.
E. Gunashekhar 101/104,
‘Shree Mohini’ Complex, 1st Floor, 345, Kingsway Phone
: 91-712-2540771/2531601 Mr.
R. Bangre Vyapar Vihar, Plot No. 113, Zone 1, Ring Road, Bilaspur 495 001. Phone : 91-7752-247347/228922/224122 |
DIRECTORS
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Name : |
Shri
Prayasvin B. Patel |
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Designation : |
Chairman & Managing Director |
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Date of
Appointment : |
47 years |
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Qualification |
B. E. (Mech.) M. B. A. |
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Date of
Birth/Age |
1/7/1983 |
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Experience : |
29 years |
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Name : |
Shri Pradip M. Patel |
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Designation : |
Director |
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Name : |
Shri Upendra M. Patel |
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Designation : |
Director |
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Name : |
Shri Chirayu R. Amin |
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Designation : |
Director |
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Name : |
Shri Ashok J. Patel |
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Designation : |
Director |
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Name : |
Shri Hasmukhlal S. Parikh |
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Designation : |
Director |
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Name : |
Dr. Amritlal C. Shah |
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Designation : |
Director |
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Name : |
Shri Nanalal D. Shah |
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Designation : |
ICICI Nominee |
KEY EXECUTIVES
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Name : |
Shri Nayan M. Adhyaru |
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Designation : |
Company Secretary |
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Name : |
Shri Hemendra C.
Shah |
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Designation : |
Chief Financial
Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
620956 |
2.01 |
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Bodies Corporate |
12432525 |
40.20 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
5378386 |
17.39 |
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Financial Institutions / Banks |
8270 |
0.03 |
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Insurance Companies |
44897 |
0.15 |
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Foreign Institutional Investors |
1615352 |
5.22 |
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Foreign Mutual Funds |
871651 |
2.82 |
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Non-institutions |
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Bodies Corporate |
1387294 |
4.49 |
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Individuals |
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Individual shareholders holding nominal share capital up to Rs.0.100
Millions |
6745381 |
21.81 |
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Individual shareholders holding nominal share capital in
excess of Rs.0.100 Millions |
1291422 |
4.18 |
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Any Other (specify) |
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Clearing Member |
37990 |
0.12 |
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Market Maker |
10029 |
0.03 |
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Non resident Individuals (Repatriable) |
184920 |
0.60 |
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Non resident Individuals (Non - repatriable) |
48964 |
0.16 |
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HUF |
241713 |
0.78 |
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Trust |
3900 |
0.01 |
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Total |
30923650 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Selling of Material Handling Equipments and Reduction Gears. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Conveying
Equipments |
Tonnes |
28000 |
15000 |
1004 |
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Wagon Tippler
and Dust Trapping Equipment |
Nos. |
16 sets each |
16 sets each |
16 sets each |
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Crushers, Screens
and Feeders |
Tonnes |
1500 |
1000 |
352 |
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Specialised
Conveying Equipment, Stacker Reclaimers, Blender Reclaimers, Rotary Disc
Loaders etc. |
Tonnes |
10000 |
3000 |
1055 |
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Reduction Gears
and Geared Motors |
Nos. |
55000 |
55000 |
35136 |
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Wagon
Marshalling Equipment |
Tonnes |
300 |
300 |
93 |
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EOTCranes and
Goliath Cranes |
Nos. |
230 |
100 |
-- |
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WindTurbine
Generators |
Nos. |
2500 |
50 |
-- |
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Axles |
Nos. |
1500 |
1500 |
38 |
GENERAL
INFORMATION
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Suppliers : |
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No. of Employees : |
2000 |
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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 : |
Thakorebhai-Shirish
Desai and Butala (Division of Thacker Butala Desai) Chartered Accountants |
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Joint Ventures
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15,00,00,000 |
Equity Shares |
Rs.2/- each |
Rs.300.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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30923650 |
Equity Shares |
Rs.2/- each |
Rs.61.847 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
61.847 |
57.078 |
56.474 |
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3] Reserves &
Surplus |
1817.191 |
969.560 |
676.579 |
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NETWORTH
|
1879.038 |
1026.638 |
733.053 |
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LOAN FUNDS |
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1] Secured Loans |
2566.213 |
1506.149 |
669.575 |
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2] Unsecured
Loans |
270.381 |
551.257 |
291.892 |
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TOTAL BORROWING
|
2836.594 |
2057.406 |
961.467 |
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DEFERRED TAX
LIABILITIES |
167.695 |
121.052 |
123.122 |
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TOTAL
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4883.327 |
3205.096 |
1817.642 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1267.375 |
952.170 |
620.504 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
80.397 |
62.866 |
56.453 |
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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
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1689.575 |
1639.060 |
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Sundry Debtors
|
3879.860
|
2141.759
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Cash & Bank Balances
|
127.590
|
247.069
|
2674.576
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Other Current Assets
|
0.000
|
0.000
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Loans & Advances
|
396.362
|
306.238
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Total Current Assets
|
6093.387
|
4334.126
|
2674.576 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
2501.625
|
2122.286
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1539.185
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Provisions
|
60.534
|
44.757
|
44.86
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Total Current Liabilities
|
2562.159
|
2167.043
|
1584.045 |
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Net Current Assets
|
3531.228
|
2167.083
|
1090.531
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MISCELLANEOUS EXPENSES
|
4.327 |
22.977 |
50.154 |
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TOTAL
|
4883.327 |
3205.096 |
1817.642 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
6689.263 |
3987.759 |
2807.805 |
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Other Income |
607.325 |
519.979 |
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Total Income |
7296.588 |
4507.738 |
2807.805 |
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Profit/(Loss) Before Tax |
844.075 |
409.778 |
174.091 |
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Provision for Taxation |
295.045 |
130.942 |
73.627 |
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Profit/(Loss) After Tax |
549.030 |
278.836 |
100.383 |
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Earnings in Foreign Currency : |
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Reduction Gears |
233.483 |
201.518 |
0.000 |
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Conveying Equipments |
9.587 |
16.963 |
157.470 |
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Total Earnings |
243.070 |
218.481 |
157.470 |
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Imports : |
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Raw Materials |
467.373 |
414.727 |
609.664 |
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Stores & Spares |
21.293 |
21.179 |
0.000 |
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Capital Goods |
193.852 |
293.691 |
0.000 |
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Total Imports |
682.518 |
729.597 |
609.664 |
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Expenditures : |
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Consumption of
Materials, Sub-Contracts, Erection and other charges |
4969.364 |
3111.493 |
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Power and Fuel |
62.428 |
50.254 |
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Employees'
Remuneration and Benefits |
270.861 |
227.065 |
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Administrative,
Selling & General Exp. |
908.062 |
615.369 |
2573.171 |
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Interest |
193.635 |
139.808 |
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Depreciation |
122.230 |
94.301 |
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(Increase)/Decrease
in Stock |
[97.044] |
[175.894] |
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Total Expenditure |
6429.536 |
4062.396 |
2573.171 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 1st Quarter |
30.09.2007 2nd Quarter |
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Sales Turnover |
|
1296.300
|
1837.200 |
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Other Income |
|
25.500
|
32.000 |
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Total Income |
|
1321.800
|
1869.200 |
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Total Expediture |
|
1087.000
|
1530.800 |
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Operating Profit |
|
234.800
|
338.400 |
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Interest |
|
45.500
|
55.500 |
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Gross Profit |
|
189.300
|
282.900 |
|
Depreciation |
|
34.200
|
35.500 |
|
Tax |
|
44.200
|
65.800 |
|
Reported PAT |
|
104.100
|
172.300 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
1.68 |
1.72 |
1.19 |
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Long Term Debt
Equity Ratio |
0.50 |
0.69 |
0.62 |
|
Current Ratio |
1.23 |
1.21 |
1.25 |
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TURNOVER RATIOS |
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Fixed Assets |
3.75 |
2.71 |
2.20 |
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Inventory |
5.06 |
3.58 |
3.31 |
|
Debtors |
2.80 |
3.09 |
3.76 |
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Interest Cover
Ratio |
4.44 |
3.25 |
2.88 |
|
Operating Profit
Margin (%) |
14.39 |
13.51 |
12.27 |
|
Profit Before Interest
and Tax Margin (%) |
12.94 |
11.65 |
9.95 |
|
Cash Profit
Margin (%) |
7.97 |
7.35 |
6.06 |
|
Adjusted Net
Profit Margin (%) |
6.52 |
5.49 |
3.74 |
|
Return on Capital
Employed (%) |
28.04 |
25.13 |
24.31 |
|
Return on Net
Worth (%) |
37.79 |
31.69 |
19.19 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company
originally established in Mumbai in the year 1951. It shifted the manufacturing
base to Vallabh Vidyanagar Near Anand, Gujarat, in 1962.
The company received
government approval for its diversification in the manufacture of 1000
hydraulic fluid couplings per annum within its licensed capacity of helical
gears in 1984.
The company
privately placed in 1990-91, 0.500 million 14% secured redeemable non-convertible
debentures of Rs.100/- each, with the State Bank of India Capital Markets and
Canara Bank in equal proportions to meet its long term working capital needs.
These debentures are redeemable at a premium of 5% in three equal annual
installments between 19 September 96 and 19 September 98.
The company's
wholly owned subsidiary Elecon (Chennai) was amalgamated with the company with
effect from 1st January, 1987.
In 1994-95, the company entered into technical collaboration with HMZ
NV, Belgium for manufacture of windomaster wind energy generators. In 1994-95 company obtained the ISO 9001
certification for its gear division. It
has executed orders worth Rs.1300.000 millions for Neyveli Lignite Corporation
Limited for manufacture, erection and commissioning of 2400 MM drive heads on
conveyors for its Mine-II
During 1997-98, the
company floated a new company to manufacture geared motors and gear reducers
with a wide range, in technical collaboration with a Japanese company of
international repute. The company has
also formed a joint venture company which will initially undertake
manufacturing of industrial freewheels overrunning clutches, spring assemblies,
clutches and related parts and components used in power transmission and work
holding technology.
During 1998-99, the
company has launched POSIRED 2 Helical/Beval Gears for which the company has
entered into a technical collaboration with PIC Antried Werner Reimers GmbH and
Company KG, Germany. The Company has
simultaneously launched Super NU Universal Mounting Worm Gears which is newly
designed and developed series.
To market its
products in Australia the company has set up a wholly owned subsidiary company
namely Elecon Australia Pte. Limited.
It is also in the process of setting up a subsidiary in South Africa.
OPERATIONAL
PERFORMANCE
The buoyancy exhibited by the Indian economy which saw many
new green field projects as well as expansions in core and other sectors and expansions
in the industrial spectrum along with emphasis on infrastructure provided ample
business opportunities for the Company.
These are exemplified by the unexecuted order book of about Rs.8,370 Millions
comprising Rs.6,210 Millions for MHE division and Rs.2,160 Millions for Gear
Division as on May 31st, 2007. The Company is having live enquiries of around
Rs.20,790 Millions as on May 31s, 2007.
For the year ended on 31st March, 2007, the Company has achieved a Turnover of
Rs.7,231 Millions and Net Profit of Rs.549 Millions as against the Turnover of
Rs.4,424 Millions and Net Profit of Rs.278 Millions during the previous year,
representing a remarkable growth of 63% in turnover and 97% in Net
Profit.
The healthy bottom line of the company, unfolds a significant message : Whether
it is supply of equipment to a power project Dadri in India or a mining project
in far off Botswana near South Africa, Elecon is a brand with a credible
assurance of Reliability. In other words, for customers, stakeholders and
investors, Elecon is synonymous with Reliability.
NEW
BUSINESSES
Elecon
Engineering since its inception has always been in the forefront of innovations
and technology in the manufacturing and has passionately strived to reach new
frontiers of technical excellence in order to be in tune with the changing
times.
In
line with this strategy, the Company has taken two strategic decisions.
To
capture new markets for ensuring further growth, the company has signed a
technical collaboration with Haisung Industrial System Company Limited of Korea
to design and manufacture high speed and capacity lift gear boxes.
The
Company has also signed the Technical Collaboration Agreement with RENK AG, of
Germany for availing technology for design and manufacture of Vertical Roller
Mill Gear Boxes. This type of Gear boxes is presently imported into India and
hence Elecon will be the first company to manufacture these gearboxes in India.
This will open the market for the Company's product to serve major Indian
cement manufacturers as well as service the bigger size gear units supplied or
being supplied by RENK.
Their
Goal is to become a major global player besides earning strong leadership
position in the market place by delivering superior world class products based
on state-of-the-art-technologies at competitive prices.
Management
discussion and analysis
INDUSTRY STRUCTURE AND DEVELOPMENT
The
Company has decided to manufacture the windmills and is expecting to commence
its production during the current financial year. Presently about 45,000 MW of
power is expected to come from Wind energy over the next five years. This will
add lots in the growth journey of the Company.
The
key demand driver for this industry is the rate of economic growth and it is
affected by the macro-economic environment and the changes in the overall
economy. Positive macro-economic factors such as increases in GDP translate
into additional investments in the economy and infrastructure, modernisation of
plants and increased repairs and maintenance work. Such investment in the
economy benefits both of their material handling equipment division and gear
division as its products form an essential part of most manufacturing
facilities.
The
material handling equipment industry manufactures and supplies equipment to
core industries such as coal steel, cement, fertilisers, mining, ports, power,
petrochemicals and civil construction.
OPPORTUNITIES AND THREATS
In
order to understand track of the global movement of industry, the Company has
during the year under review, opened a foreign equity participating Company at
China.
The
Company has also taken measures to cut cost, increase productivity and limit
manpower to turn more competitive. It is also considering diversifying its
business by entering into new product line in conjunction with existing
production line.
SEGMENTWISE PERFORMANCE
During
the financial year 2006 - 2007, the Company has achieved a Turnover of Rs.7,231
Millions as against Rs.4,424 Millions in the previous year, which shows a
growth of 63% over the previous year.
The
turnover of Gear Division has increased to Rs.3,134 Millions from Rs.2,318
Millions in the previous year, which is an increase of 35%.
The
turnover of MHE Division has increased to Rs4,096 Millions as against Rs.2,106
Millions in the previous year, which is an increase of 94%.
The
Profit Before Tax has increased to Rs.844 Millions from Rs.409 Millions in the
previous year, which is an increase of 106%.
The
Profit After Tax has increased to Rs.549 Millions from Rs.278 Millions in the
previous year, which is an increase of 97%.
OUTLOOK
The
upturn in the economy and rapid industrial growth have been encouraging for the
growth of the Company. The several upcoming and ongoing infrastructure projects
have created good opportunity for the material handling equipment
division.
Looking
to the entry into the new sectors like defence, the Directors feel that Company
will be in a position to achieve more new / repetitive orders from this sector.
The Company has also decided to manufacture and market the Vertical Roller Mill
gear boxes, which is the import substitute. The Company has availed technology
for design and manufacturing of Lift gear Boxes. The Company will be the first
Indian Company to manufacture lift gear boxes of such high speed and
capacity.
The Company will be setting up a project for manufacturing
of gear boxes for wind mills in the range of 1 MW to 2 MW. It will substitute
the import market for the product and Elecon will be the first Company to, manufacture
such sizes of gear boxes.
FIXED ASSETS
- Land
- Building
- Plant and Machinery
- Electrical Installations
- Electrical Fittings
- Office Equipments
- Air Conditioning Plant
- Sundry Equipments
- Furniture and Fixture
- Vehicles
- Site Office Equipments
AS PER WEBSITE
Established in
1951, Subject of Vallabh Vidyanagar, Gujarat, India, pioneered the manufacture
of material handling
equipment in India. During these four decades, Subject has designed and
implemented several landmark projects in India as well as abroad.
From a modest start
of design and manufacture of Elevators and Conveyors from which incidentally,
the company derives its corporate identity. viz. "Elecon". It has
grown over the years to be known as a pioneer of the concept of mechanized way
of Bulk Material Handling Equipment in India. During the span of more than 4
decades, subject has encompassed all the major core sectors through its
supplies of highly sophisticated equipment bearing ample testimony of the
symbolic mark of subject unbeatable technology. Subject has thus, made its
presence felt through consistent and satisfactory performance of its equipment
in such core sectors as fertilizer, cement, coal/power generation, chemical,
steel plant and port mechanization etc., across the country.
Subjectis the first
company in India to have manufactured sophisticated equipment for Bulk Material
Handling. Its product range includes design, engineering, manufacture, supply,
erection and commission of:
- Wagon tipplers
- Bucket wheel stacker/reclaimers
- Barrel-type blender reclaimers
- Fertilizer reclaiming scrapers
- Limestone pre-homegenizing and blending plants
- Single and twin bucket wheel bridge-type reclaimers
- Crawler-mounted trippers
- Stationary and shiftable conveying systems for open cast lignite mines
- Integrated coal handling plants for power stations
- Underground mining conveyors
- Open-cast conveying systems
- Ferrous and non-ferrous foundry products
- Helical, spiral bevel helical, planetary and worm reduction gear units and couplings.
Subject has developed
and perfected its skills in design, manufacture, erection and commissioning of
coal handling plants. Over the years, Subject has expanded its skills and
expertise to include the designing and execution of turnkey contracts for:
- Crushing
- Screening
- Stacking
- Blinding, and
- Reclaiming plants
for bulk materials such as limestone, iron-ore,
bauxite, overburden, rock phosphate and fertilizer.
A separate Gear division
manufactures
- Helical gears
- Spiral bevel and Helical gears
- Planetary gears
- Worm reduction gears units
- Couplings, and
- Gear boxes for highly specialized and precision applications
Subject has expertise in providing customised gear boxes for Steel Mills, High Speed Turbines, Sugar Mills, Marine vessels, Coast Guard Ships, Plastic Extrusions, Antena Drives and for Satellites in the Indian Space Programme.
ELECON GROUP
Eimco Elecon
(India) Limited was incorporated in the year 1974 and was promoted by
Environtech Corporation, USA, Subject Vallabh Vidyanagar and its Chairman and
Managing Director Shri B.I. Patel
Eimco Group of
Companies Subsidiaries of Environtech USA are the world leader in production of
underground mining machinery having plants in U.K., USA, Canada, France and
Australia. EEIL and Eimco Group of Companies entered into collaboration under
which EEIL received necessary technical know-how from Eimco Group of Companies
for production of underground mining machineries.
In 1989, Eimco
Group of companies were acquired by Tamrock OY., a world leader in technology
and manufacturing of rock excavation and breaking equipments for surface and
underground mines and civil engineering construction with production and
assembly facilities in various parts of the world backed by world wide sales
and distribution net work.
Internationally,
Tamrock holdes close to 40% market share in the mining machinery business. It
is a leading supplier of drilling and loading equipments for hard rock applications.
THE PRODUCTS
EEIL produces a
very wide range of underground mining machinery Viz. Air Powered Rocker
Shovels, Electro hydraulic Side Dump Loaders and Electro Hydraulic and Air
Powered Load Gaul Dumpers used as loading machines in both the underground Coal
mines and Metalliferous mines. It also manufactures Air Motors for captive
consumption and other OEM manufacturers, company also manufactures hydraulic
Drilling and Roof bolting jumbos and Auger-cum-Drills and Tugger Hoists. Side
Dump Loaders, Load Haul Dumpers and Auger-cum-Drills forms backbone of the
mechanization system of underground coal mines.
THE CUSTOMERS
Eimco Elecon's
major clients are the subsidiaries of Coal India Limited Viz. Bharat Cooking
Coal Limited. Eastern Coalfield Limited etc. Other clients include Singanery
Collieries Company Limited, Uranium Corporation of India. Bharat Gold Mines,
Hindustan Copper Limited, Hindustan Zinc Limited, Larsen & Toubro Limited,
Ferro Alloys Corporation Limited etc.
ELECON INFORMATION TECHNOLOGY LIMITED
With a humble
beginning in 1972 as one of the group Companies of subject group, Power Build
Limited, ventured into production of Geared Motors and gear boxes in technical
collaboration with Roudolf Muchna KG of West Germany. Since then the company
never looked back and forged ahead by addition of sophisticated and state of
the art products as enumerated here under:
·
Automatic
weighing and Bag Filling Machines.
·
Electronic
Belt weighers and weigh feeders
·
Metal
Detectors
·
Inline Magnetic
separators and suspension magnets with latest technology.
·
Electric Hoist
using the latest techniques of conical rotor design motors
·
Automatic
Wagon and Truck loaders
·
Beltsway
switches and pullcord switches used for conveyors.
Unsurpassed quality
of the product is the company's prime motto and the factory is equipped with
the latest and the most modern machineries including (CNC) machines ensuring
highest quality of product and interchangeability. PBL has executed a large
number of orders in the core sector industries like Fertilizers, Cement, Coal,
Power Generation, Chemicals, Steel Plants, etc. Equipments supplied by PBL are
rendering trouble free service for years at length.
EMTICI ENGINEERING LIMITED
Emtici Engineering
Limited is a Sole Selling Agent of subject, Eimco Elecon (India) Limited, Power
Build Limited, Vallabh Vidyanagar, Gujarat.
Also carrying out
fabrication and erection activity for Coal Handling Plants and other Material
Handling Equipment and providing post sale as well as during warranty services
and post warranty services for supplies of principals. Company is having branch offices at Mumbai,
Delhi, Madras, Calcutta, Ahmedabad, Dhanbad, Asansol, Jamshedpur and Secunderabad.
RINGSPANN ELECON (INDIA) LIMITED
RINGSPANN GmbH,
Germany joins hands with ELECON, as an equal partner in manufacturing and
marketing of various types of Industrial Freewheel clutches and components.
This alliance promises to deliver international quality products and services
to quality concious customers.
POWER BUILD ELECON GEARS LIMITED
Power Build subject
Gears Limited (PBEGL) is a joint venture of Power Build Limited who are
manufacturers of gear motors for over 27 years and Subject, who are leaders in
manufacturing helical/spiral bevel and worm gear reducers in India for over 40
years.
"PBEGL"
manufactures "SUPER-A" series of gear motors and gear reducers under
license from SEIKI-KOGYOSHO LIMITED (SKK) - Japan. SKK is one of the largest manufacturers
of gear motors and helical gear reducers in Japan for over 75 years.
KIRLOSKAR POWER BUILD GEARS LIMITED
Kirloskar Power
Build Gears Limited (KPBGL), a joint venture between Emtici Engineering Limited
(EMTICI), the marketing and servicing set up of ELECON group of companies, and
KEC will be marketing and servicing the products of PBEGL.
VVN MFG. & INVESTA LIMITED
A listed company
engaged in manufacturing Idler & Rollers, Job Work, Machining as well as
Sales & Service of Mining Equipment including spares.
PRAYAS CASTINGS LIMITED
Engaged in
manufacturing, undertaking, conducting and dealing in the business of founders
and smelters of ferrous as well as non-ferrous metals and other metals and
alloys.
ELECON INFORMATION TECHNOLOGY LIMITED
Subject Information
Technology Limited (EITL) draws on the company’s vast and varied experience of
more than 13 years in the field of hardware, software and networking solutions.
The company’s mission is to provide comprehensive software and hardware solutions
and satisfy customers business and management needs.
WESTERN METAL CAPS LIMITED
Engaged in
Manufacturing Steel Iron Castings and also carrying out Heat Treatment and
painting activity for Gear division of Subject.
PRESS RELEASE
The Company has recorded a turnover of Rs.1754.600 Millions and Net
Profit of Rs.162.700 Millions for the quarter ended September 30, 2006 as
against the turnover of Rs.946.700 Millions and Net Profit of Rs.57.500
Millions during the corresponding period of the previous year.
The Turnover and Net Profit have gone up impressively by 85% and 183% respectively for
the quarter ended September 30, 2006 over corresponding period of previous year
with turnover of Material
Handling Division (MHE Division) growing by nearly two & half times.
For the half year ended September 30, 2006 the company has achieved
Turnover of Rs.2700.400 millions and Net Profit of Rs216.700
millions as against the Turnover
of Rs1653.500 millions and Net Profit of Rs.87.800
millions during the corresponding period of previous year, representing
remarkable growth in Turnover by
63% and in Net Profit by 147%.
The Company is having an
unexecuted order book of about Rs.6780
Millions as on October 30, 2006.
Current Market Capitalisation of the Company
is around Rs.7970 Millions.
The Earning Per Share (EPS) (annualized) for the half year ending on 30th September
06 is Rs.71.70 Per Share as
against Rs31.10 for the
corresponding half year of the previous year.
The Equity Shares of the company
have been listed on National Stock Exchange of India Limited with effect from
September 29, 2006. The market lot is 1 share. The stock code is “ELECON”.
The sub-division of the Equity Shares of the company from Rs.10
per share to Rs.2 per share has been effected on October 26, 2006.
Due to the same, the number of Equity Shares have been increased from 6130394
shares of Rs.10/- each to
30651970 shares of Rs.2/- each.
Date 05-01-2007
The Company has recorded a turnover of Rs.1682.400 Millions
and Net Profit of Rs.146.700 Millions for the quarter ended December 31, 2006
as against the turnover of Rs.897.400 Millions and net Profit of Rs.81.400
Millions during the corresponding period of the previous year.
The turnover and net profit have gone up impressively by 87% and 80%
respectively for the quarter ended December 31, 2006 over corresponding period
of previous year.
For the nine months ended December 31, 2006 the Company has achieved turnover
of Rs.4382.800 Millions and net profit of Rs363.500 Millions as against the
turnover of Rs2551.000 Millions and Net Profit of Rs.169.200 Millions during
the corresponding period of previous year, representing remarkable growth in
turnover by 72% and in Net Profit by 115%.
The company is having unexecuted order book of about Rs.6769.100 Millions as on
December 31, 2006
Current Market Capitalisation of the Company is around Rs.1,3851.600 Millions.
The Basic Earning per Share (EPS) for the nine months ending on December 31,
2006 is Rs.12.03 per Share (Face value of Rs.2/- each) as against Rs.5.99 per
Share (Face value of Rs.2/- each) for the corresponding nine months of the
previous year.
The Company has received notice for conversion of 900 Foreign Currency
Convertible Bonds of US $ 1000 each aggregating to US$ 0.9 Million and
consequently, allotted 271,680 equity shares of Rs.2/- each to Credit Suisse
(Singapore) Limited. Now only 100 Foreign Currency Convertible Bonds of US $
1,000 each aggregating to US $ 0.1 Millions are outstanding for conversion.
The Company has received a prestigious order for Design, Manufacture and supply
of one set of Gearbox from Cochin Shipyard Limited for Indian Navy for Rs.387
Millions for its first indigenous Aircraft Carrier.
Allotment of Equity Shares
This is to inform you that the Committee of Directors at its meeting held on
January 5, 2007 has allotted 2,71,680 Equity Shares of Rs.2 each fully paid up
to Credit Suisse (Singapore) Limited on conversion of 900 Foreign Currency
Convertible Bonds of US $ 1,000 each aggregating to US $ 0.9 Millions.
Date 27-01-2007
The Company has
recorded a turnover of Rs.1682.400 Millions and Net Profit of Rs.146.700
Millions for the quarter ended December 31, 2006 as against the turnover of
Rs.897.400 Millions and net Profit of Rs.81.400 Millions during the
corresponding period of the previous year.
The turnover and net
profit have gone up impressively by 87% and 80% respectively for the quarter
ended December 31, 2006 over corresponding period of previous year.
For the nine months
ended December 31, 2006 the Company has achieved turnover of Rs.4382.800
Millions and net profit of Rs.363.500 Millions as against the turnover of
Rs.2551 Millions and Net Profit of Rs.169.200 Millions during the corresponding
period of previous year, representing remarkable growth in turnover by 72% and
in Net Profit by 115%.
The company is
having unexecuted order book of about Rs.6769.100 Millions as on December 31,
2006
Current Market Capitalisation of the Company is around Rs.13851.600 Millions.
The Basic Earning
per Share (EPS) for the nine months ending on December 31, 2006 is Rs.12.03 per
Share (Face value of Rs.2/- each) as against Rs.5.99 per Share (Face value of Rs.2/-
each) for the corresponding nine months of the previous year.
The Company has
received notice for conversion of 900 Foreign Currency Convertible Bonds of US
$ 1000 each aggregating to US$ 0.9 Million and consequently, allotted 271,680
equity shares of Rs.2/- each to Credit Suisse (Singapore) Limited. Now only 100
Foreign Currency Convertible Bonds of US $ 1,000 each aggregating to US $ 0.1
mn are outstanding for conversion.
The Company has
received a prestigious order for Design, Manufacture and supply of one set of
Gearbox from Cochin Shipyard Limited for Indian Navy for Rs.387 Millions for
its first indigenous Aircraft Carrier.
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.39.47 |
|
UK Pound |
1 |
Rs.77.98 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|