MIRA
INFORM REPORT
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Report Date : |
12.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
ECE INDUSTRIES LIMITED |
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Registered Office : |
“ECE House”, 28-A, Kasturba Gandhi Marg,
New Delhi – 110 001, |
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Country : |
INDIA |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.06.1945 |
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Com. Reg. No.: |
55-8279 |
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CIN No.: [Company
Identification No.] |
L31500DL1945PLC008279 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELE00023C |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer of Electrical/lighting Products and Components Electrical
Goods |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial and 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 3500000 |
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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 well-established and reputed company having satisfactory
track records. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
“ECE House”, 28-A, Kasturba Gandhi Marg, New Delhi – 110 001, |
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Tel. No.: |
91-11-23314237/38/39 |
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Fax No.: |
91-11-23310410 |
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E-Mail : |
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Website : |
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Contract Division : |
17 (New) Woods Road, Near Mount Road, Chennai- 600002 |
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Tel No.: |
91-44-28545155 |
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Fax No.: |
91-44-28586109 |
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E-mail : |
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Elevator Division : |
A-20, Industrial Area, Meerut Road, Ghasiabad-201001, Uttar Pradesh,
India |
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Tel No.: |
91-120-2712065/ 2713843/ 2712037 |
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Fax No.: |
91-120-2723950 |
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E-mail : |
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Meter Division : |
Ashok Marg, Sananthnagar, Hyderabad-500018, Andhra Pradesh, India |
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Tel No.: |
91-40-23814433/34/ 23704261 |
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Fax No.: |
91-40-23700967 |
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E-mail : |
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Power Division : |
Ashok Marg, Sanathnagar, Hyderabad, Andhra Pradesh, India |
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Tel No.: |
91-40-23811745/ 65648025 |
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Fax No.: |
91-40-23817702 |
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E-mail : |
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Power Transformer and H.T Swithch Gear Division : |
Dehi Road, Sonepat 131001, Haryana, India |
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Tel No.: |
91-130-2241115/ 2242339 |
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Fax No.: |
91-130-2218143 |
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E-mail : |
DIRECTORS
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Name : |
Mr. O. P. Khaitan |
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Designation : |
Director |
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Name : |
Mr. S. C. Dalal |
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Designation : |
Director |
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Name : |
Mr. Vikram Prakash |
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Designation : |
Director |
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Name : |
Mr. O.P. Soni |
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Designation : |
Director |
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Name : |
Mr. C. Ram (Nominee LIC) |
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Designation : |
Director |
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Name : |
Mr T. K. Das (Nominee GIPSA) |
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Designation : |
Director |
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Name : |
Mr. Prakash Kumar Mehta |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.R. N. Jaju |
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Designation : |
President |
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Name : |
Mr. U.N. Vajpeyi |
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Designation : |
Executive Vice-President |
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Name : |
Mr. R. Prasad |
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Designation : |
Manager and Vice-President (Commercial and Elevator Division) |
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Name : |
Mr. G.S. Rathore |
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Designation : |
Vice-President, Transformer and Switchgear Divisions |
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Name : |
Mr. B. L Purohit |
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Designation : |
Vice-President, Meter Division |
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Name : |
Mr. R.K. Jhalani |
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Designation : |
Chief Executive (Management Control and Contract Division |
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Name : |
Mr. S.M. Wadhavan |
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Designation : |
Chief Executive, Transformer Design and Planning |
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Name : |
Mr. P.C. Agarwal |
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Designation : |
Chief Executive, Elevator Division |
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Name : |
Mr.S. C. Agarwal |
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Designation : |
Dy. Chief Executive, Transformer and Meter (Hyderabad |
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Name : |
Mr. Rajat Sharma |
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Designation : |
Senior Manager (Taxation and Corporate Affairs) |
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Name : |
Mr. V. K. Gupta |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A. Promoters |
13,58,878 |
30.97 |
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B. Non Promoters |
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Financial Institutions and
Banks |
11,11,723 |
25.97 |
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Body Corporates |
3,50,938 |
8.00 |
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Individuals |
13,89,018 |
31.65 |
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Non-Resident Indians(NRIs) |
15,598 |
0.35 |
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Overseas Corporate
Bodies(OCBs) |
1,62,000 |
3.69 |
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Total |
43,88,155 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Electrical/lighting Products and Components Electrical
Goods |
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Product: |
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GENERAL
INFORMATION
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Suppliers : |
Atul Engineering Udyog Berlia Electricals Private Limited Brij Iron Industries Limited Friends Cable Industries Limited Kemfin Chemicals Private Limited P.K.Maheshwari Mkt. Private. Limited Trend Mfg. and Trading Premier Adhesives and Sri Durga Enterprises |
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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 : |
S.R. Batliboi and Company Chartered Accountant |
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Address : |
B-26, Qutub Institutional Area, New Delhi-110 016 |
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Associates : |
Ř Bharat Commerce
and Industries Limited Ř Indian Rayon and
Industries Limited Ř Hindustan Gas
and Industries Limited Ř Manjushree
Plantations Limited Ř Mangalam Cement
Limited Ř Rajashree Polyfil
Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,45,00,000 |
Equity Shares |
Rs.10/-(each) |
Rs.145.000 Millions |
|
50,000 |
Preference Shares |
Rs.100/- (each) |
Rs.5.000 Millions |
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Total: |
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Rs.150.000Millions |
Issued :
|
No. of Shares |
Type |
Value |
Amount |
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44,33,385 |
Equity Shares |
RS.10/-(each) |
Rs.44.333
Millions |
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Subscribed and Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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43,88,155 |
Equity Shares |
RS.10/-(each) |
Rs.43.881
Millions |
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Forfeited Shares Money |
|
Rs.0.017
Millions |
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Total: |
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Rs. 43.898 Millions |
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 |
43.900 |
43.898 |
43.898 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
752.000 |
694.573 |
685.077 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
795.900 |
738.471 |
728.975 |
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LOAN FUNDS |
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1] Secured Loans |
302.200 |
168.641 |
112.669 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
302.200 |
168.641 |
112.669 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1098.100 |
907.112 |
841.644 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
137.700 |
131.200 |
131.594 |
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Capital work-in-progress |
10.200 |
7.687 |
1.006 |
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INVESTMENT |
40.600 |
29.918 |
29.999 |
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DEFERREX TAX ASSETS |
0.000 |
1.882 |
12.672 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
268.300
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387.562
|
278.430 |
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Sundry Debtors |
832.700
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347.807
|
291.516 |
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Cash & Bank Balances |
114.700
|
60.882
|
50.232 |
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Other Current Assets |
0.000
|
39.587
|
39.913 |
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Loans & Advances |
232.200
|
181.117
|
182.199 |
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Total
Current Assets |
1447.900
|
1016.955
|
842.29 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
532.300
|
289.796
|
174.994 |
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Provisions |
29.500
|
22.018
|
22.787 |
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Total
Current Liabilities |
561.800
|
311.814
|
197.781 |
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Net Current Assets |
886.100
|
705.141
|
644.509 |
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MISCELLANEOUS EXPENSES |
23.500 |
31.284 |
21.864 |
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TOTAL |
1098.100 |
907.112 |
841.644 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2436.900 |
893.898 |
757.607 |
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Other Income |
68.000 |
33.330 |
97.712 |
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Total Income |
2504.900 |
927.228 |
855.319 |
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Profit/(Loss) Before Tax |
85.600 |
31.389 |
10.746 |
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Provision for Taxation |
10.900 |
0.000 |
{1.300} |
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Profit/(Loss) After Tax |
74.700 |
19.599 |
12.690 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
0.056 |
0.162 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
0.000 |
0.056 |
0.162 |
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Imports : |
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Raw Materials |
0.000 |
0.199 |
73.496 |
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Stores & Spares |
0.000 |
0.321 |
1.143 |
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Capital Goods |
0.000 |
2.020 |
7.434 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
0.000 |
2.54 |
82.073 |
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Expenditures : |
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Purchase of Trade Goods |
0.000 |
4.040 |
4.789 |
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Raw Materials, Stores
and Other Material Consumed |
1562.500 |
675.163 |
508.928 |
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Excise
Duty |
332.200 |
0.000 |
0.000 |
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Power
& Fuel Cost |
15.100 |
0.000 |
0.000 |
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Other
Manufacturing Expenses |
122.800 |
0.000 |
0.000 |
|
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Employee
Cost |
72.500 |
0.000 |
0.000 |
|
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Selling
and Administration Expenses |
47.000 |
0.000 |
0.000 |
|
|
Miscellaneous
Expenses |
131.600 |
0.000 |
0.000 |
|
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Interest
and Financial charges |
49.000 |
0.000 |
0.000 |
|
|
Personnel Expenses |
0.000 |
60.568 |
57.059 |
|
|
Operating and other Expenses |
0.000 |
162.992 |
176.894 |
|
|
Decrease/(Increase) in Inventories |
75.300 |
[40.304] |
72.428 |
|
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Managerial Remuneration |
0.000 |
1.280 |
1.183 |
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Depreciation & Amortization |
11.300 |
10.518 |
10.239 |
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Financial Expenses |
0.000 |
21.584 |
13.052 |
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Total Expenditure |
2419.300 |
895.841 |
844.572 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd Quarter |
|
Sales
Turnover |
398.600 |
533.000 |
448.100 |
|
Other
Income |
41.500 |
159.200 |
24.600 |
|
Total
Income |
440.100 |
692.200 |
472.700 |
|
Total
Expenditure |
381.000 |
491.300 |
422.400 |
|
Operating
Profit |
59.100 |
200.900 |
50.300 |
|
Interest |
10.200 |
10.200 |
9.100 |
|
Gross
Profit |
48.900 |
190.700 |
41.200 |
|
Depreciation |
2.800 |
2.900 |
3.200 |
|
Tax |
14.800 |
63.300 |
13.400 |
|
Reported
PAT |
31.300 |
124.500 |
24.600 |
.
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.32 |
0.20 |
0.16 |
|
Long
Term Debt-Equity Ratio |
0.06 |
0.04 |
0.00 |
|
Current
Ratio |
1.95 |
2.48 |
2.46 |
|
TURNOVER
RATIOS |
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Fixed
Assets |
7.88 |
3.43 |
3.04 |
|
Inventory |
7.43 |
3.10 |
2.77 |
|
Debtors |
4.13 |
3.23 |
2.91 |
|
Interest
Cover Ratio |
2.00 |
2.45 |
-2.36 |
|
Operating
Profit Margin(%) |
4.49 |
6.15 |
-2.39 |
|
Profit
Before Interest And Tax Margin(%) |
4.03 |
5.14 |
-3.56 |
|
Cash
Profit Margin(%) |
2.39 |
2.92 |
-3.53 |
|
Adjusted
Net Profit Margin(%) |
1.93 |
1.90 |
-4.70 |
|
Return
On Capital Employed(%) |
10.37 |
6.50 |
-3.91 |
|
Return
On Net Worth(%) |
6.37 |
2.79 |
-5.88 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Ece Industries is mainly dealing in Elevators, Electricity meters,
Electric transformers, Railway Electrification, Lighting and Switchgear Spare
Parts and its plants are located in Ghaziabad, Hyderabad, Sonepat and Contract
Centre in Chennai.
During the year 2002-03 the Company sold its Elevator Division to
M/s.ThyssenKrrupp of West Germany for cash consideration of Rs.234.300 Millions
and allotment of 9,00,000 equity shares of Rs.10/- each in Thyssen Krupp ECE
Elevator Private Limited.
REVIEW OF PERFORMANCE:
The company have posted impressive growth in performance. The sales
turnover for the current year is Rs. 2436.900 Milions against Rs. 1031.900
Millions in the previous year. The total gross profit for the year ended 31st
March, 2007 cores to Rs. 96.800 Millions (Previous Year Rs. 41.906 Millions).
After providing Rs. 11.307 Millions (Previous year Rs. 10.517 Millions) for
depreciation and Rs. 15.348 Millions as provision for taxation including a sum
of Rs. 1.056 Millions for Fringe Benefit tax ( Previous Year Rs. 11.790
Millions including a sum of Rs. 1.000 Millions for Fringe Benefit Tax) and add
a sum of Rs.4.503 Millions towards excess provision for tax for earlier years
written back, there remains a surplus of Rs. 74.648 Millions (previous year Rs. 19.599 Millions).
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The power Sector in the country has almost become a prime sector now. The
'Generation of Power' slowly, and 'Distribution of Power' gradually, is passing
on to the private sector also, which was so far the domain of SEBs only.
Resultantly, more capacities are being created in the existing range of
manufacturing. It is also becoming incumbent to induct higher range of new
varieties. The RandD operations are an imperative need of the day, therefore.
OPPORTUNITIES and THREATS:
There was never a better opportunity to take a leap forward in the
turnover of their products. The Transformer Division segment of the company
already proved it. Switchgear are to follow more actively. Elevators have
commenced marketing, installation and maintenance in a renewed and vigorous
way.
After having conducted good
RandD efforts, the Meter Division is now ready to embark upon marketing of
their Electronic Meters with new calibrating, operating and distance measuring
features. A beginning is under way for turnkey projects also.
They as producers are always keen to sell more as soon as they produce.
However, their buyers are also
equally keen to make sure that they buy faster than before and at most competitive
rates. This entails us with need of having dependable and committed suppliers
with proven performance of timely supplies mainly in CRGO, Copper Conductors,
Bushings, OLTCs etc.
Such quality suppliers are to be
ensured much before time to arrest any possible failure of their product line,
otherwise the operations may boomerang upon us. Simultaneously, the higher
financial input is to be extended immediately for keeping their product-lines
in higher volume accompanies with higher inventories and outstandings. the
company's team is anxiously working with determination to withstand the above,
in order to achieve even still better results in the next financial year.
SEGMENTWISE PERFORMANCE:
The key business of the company viz. Transformers, Switchgears and
Meters consolidated in 'Equipment for Power Transmission and Distribution '
accounted for 95.31% of the gross turnover in 2006-2007. The other segments
accounted for 4.69% of gross turnover.
OUTLOOK:
There was overall growth in the economy during the previous financial
year and the growth in the company was even much more which is evident from the
financial data given in this report. Not only the production and sales have
increased, the increase in profitability was also quite significant.
.
Fixed Assets:
- LeaseholdLand
- Freehold Land
- Temporary
Structures
- Buildings
- Plants and
Machinery
- Electric and
Gas Installation
- Office
Equipments
- Furniture and
Fixtures
- Vehicles
- Intangibles
(Software)
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.42.89 |
|
UK Pound |
1 |
Rs.83.80 |
|
Euro |
1 |
Rs.66.45 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
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 |
|
66 |
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 |
|