MIRA
INFORM REPORT
|
Report Date : |
11.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GREAVES COTTON
LIMITED |
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Registered Office : |
Industry Manor,
Appasaheb Marathe Marg, Prabhadevi, P. O. Box No. 19127, Mumbai – 400 025,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
29.03.1922 |
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Com. Reg. No.: |
11-987 |
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CIN No.: [Company
Identification No.] |
L99999MH1922PLC000987 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG07833A |
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Legal Form : |
Public Limited
Liability Company. Company’s shares are listed on stock exchanges. |
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Line of Business : |
Manufacturer of
Diamond Bits, Industrial Diamond Tools, Oilfield Diamond Bits, High Pressure
Pumps and Operating Equipment. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
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 12000000 |
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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 of the Thapper Group, a medium size industrial house
in India. There has been a dramatic improvement in the company’s performance
during the financial year 2003-2004 (year ended 30/06/2004). The company
could wipe out its accumulated losses and achieve reasonable improvement in
its earning per share. Trade relations are reported as fair. Payments are
normally made as per commitments. It can be
considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Industry Manor,
Appasaheb Marathe Marg, Prabhadevi, P.O.Box No. 19127, Mumbai – 400 025,
Maharashtra, India |
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Tel. No.: |
91-22-24223747 /
24365510 |
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Fax No.: |
91-22-24379555/24367785 |
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E-Mail : |
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Website : |
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Factory : |
· Plot No. 66, MIDC Estate, Satpur, Nashik – 422 007, Maharashtra, India · J-2 MIDC Industrial Area, Chikalthana, Aurangabad – 431 210, Maharashtra, INDIA · 14 Cross Road, Tondiarpet, Chennai – 600 081, Tamilnadu, INDIA · Industrial Development Area, Patancheru, Medak District, Andhra Pradesh – 502 319, INDIA · Park Gear Works, Chinchwad, Pune – 411 019, Maharashtra, INDIA · Industrial Growth Centre, Sector III, Falta, South-24 Parganas, West Bengal, INDIA · E-2, MIDC Industrial Area, Baramati – 413 133, Maharashtra, INDIA · Plot No. 72, SIPCOT Industrial Complex, Ranipet – 632 403, Tamilnadu, INDIA · Plot Nos. 138/143, Ambaji Industrial Estate, Abu Road, District Sirohi, Rajasthan – 307 026, India · K – 135, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India · 148, Oggiam Thoraipakkam, Chennai – 600096, Tamilnadu, India · D – 18, Sipcot Industrial Complex, Gummidipoondi – 601201, Tamilnadu, India · New No. 67, Thiruvottiyur High Road, Thangal, Chennai – 600019, Tamilnadu, India |
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Branches: |
·
Thapar
House, 25, Brabourne Road, P. B. No. 702. Kolkata – 700 001, West Bengal,
India Tel. No. 91-33-22421459 / 22423805 / 22423811 Fax No. 91-33-22424325 Email – calmgl@greavesmail.com ·
'Jaldarshan’
Ashram Road, Navrangpura, Ahmedabad – 380 009, Gujarat, India Tel. No. 91-79-6580428 / 6581861 Fax No. 91-79-6587783 Email – ahmmgl@greavesmail.com ·
Rani Kunthi,
82 Burdwan Compound, Ranchi – 834 001, Bihar, India Tel. No. 91-651-2562069 Fax no. 91-651-2561704 Email – glranchi@vitalmail.com ·
'Guman’,
Pandit Jawaharlal Nehru Marg, Sadar, P. B. No. 129, Nagpur – 440 001,
Maharashtra, India Tel. No. 91-712-2526588 / 2524125 Fax No. 91-712-2541142 Email – nagmgl@greavesmail.com ·
26, Second
Line Beach, Chennai – 600 001, Tamilnadu, India Tel. No. 91-44-25231120 Fax No. 91-44-25224557 Email – chemgl@greavesmail.com ·
16/3, Ali
Asker Road, Bangalore – 560 052, Karnataka, India Tel. No. 91-80-2262062-65 Fax No. 91-80-2253472 Email – bngmgl@greavesmail.com ·
39/5567,
M G Road, Ernakulam, Cochin – 682
015, Kerala, India Tel. No.91-484-2369272 / 2369190 Fax No. 91-484-2382389 Email – cchmgl@greavesmail.com ·
Express
Building Annexe, 9/10, Bahadur Shah Zafar Marg, New Delhi – 110 002, India Tel. No. 91-11-23730554 98 lines) Fax No. 91-11-23359782 Email – delmgl@greavesmail.com ·
Raj
Chambers, 3rd Floor, 29/9, Rana Pratap Marg, Lucknow – 226 001,
Uttar Pradesh, India Tel. No. 91-522-2207711 / 2207712 Fax No. 91-522-2207863 Email – lucmgl@greavesmail.com ·
6-2-47, A.
C. Guards, First Floor, P.B. No. 9, Hyderabad – 500 004, Andhra Pradesh,
India Tel. No. 91-40-23314025 / 23316446 Fax No. – 91-40-23318557 Email – hydmgl@greavesmail.com |
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Overseas
Offices: |
Ø James Greaves & Company GPO Box. 406, Brazennose House, Brazennose Street, Manchester M60
2JA United Kingdom Tel No. (44-161) 834-0991 Fax No. (44-161) 832-0753 Telex : 669589 JG CO G E Mail
: jamesgreavesco@btinternet.com
Ø Also at Singapore and Nairobi |
DIRECTORS
|
Name : |
Mr. P. Sachdev |
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Designation : |
Managing Director
& Chief Executive Officer |
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Age : |
61 years |
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Qualification
: |
B.Sc., Engg. (Mech.) |
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Experience : |
40 years |
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Date of
Appointment : |
01.02.1966 |
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Name : |
Mr. Karan Taper |
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Designation : |
Chairman |
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Name : |
Mr. S. Mukhopadhyay |
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Designation : |
Director |
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Name : |
Mr. Vijay Rai |
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Designation : |
Director |
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Name : |
Mr. B.R. Gupta |
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Designation : |
UTI Nominee Director |
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Name : |
Mr. B. M. Thaper |
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Designation : |
Additional Director |
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Name : |
Mr. Gautam Thapar |
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Designation : |
Additional
Director |
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Name : |
Dr. S. Kapur |
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Designation : |
Director |
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Name : |
Mr. S. N. Talwar |
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Designation : |
Director |
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Name : |
Mr. S. K. Roy |
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Designation : |
Executive
Director |
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Age : |
60 years |
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Qualification
: |
NCE (Mech.) |
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Experience : |
40 years |
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Date of
Appointment : |
21.12.1964 |
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Prevoius
Employment: |
Lynx Machinery |
KEY EXECUTIVES
|
Name : |
Mr. K. K. Saraf |
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Designation : |
Vice President
and Company Secretary |
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Name : |
Mr. T. K.
Chattopadhyay |
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Designation : |
Senior Vice
President |
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Name : |
Mr. S. K. Basu |
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Designation : |
Senior Vice
President |
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Name : |
Mr. R. Varahamoorthy |
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Designation : |
Vice President |
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Name : |
Mr. P.R. Joshi |
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Designation : |
Vice President |
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Name : |
Mr. J. G. Sharma |
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Designation : |
Vice President |
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Name : |
Mr. Suneel Khanna |
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Designation : |
Group General
Manager |
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Name : |
Mr. Sunil Kumar |
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Designation : |
Group General
Manager |
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Name : |
Mr. A. G.
Giridharan |
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Designation : |
Group General
Manager |
SHAREHOLDING
PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
24442841 |
50.06 % |
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Mutual Funds and
UTI |
6437507 |
13.18 % |
|
Banks, Financial Institutions Insurance Companies
[Central / State Government Institutions / Non Government Institutions] |
9487706 |
19.43 % |
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Private Corporate
Bodies |
1062693 |
2.17 % |
|
NRIs/ OCBs/ FIIs |
2107483 |
4.32 % |
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Resident
Individuals |
5292992 |
10.84 % |
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TOTAL |
48831222 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Diamond Bits, Industrial Diamond Tools, Oilfield Diamond Bits, High Pressure
Pumps and Operating Equipment. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Diamond Bits |
Nos. |
19500 |
-- |
|
Industrial Diamond Tools |
Nos. |
18000 |
-- |
|
Oilfield Diamond Bits |
Nos. |
300 |
-- |
|
High Pressure Pump for Mud Slush Water |
Nos. |
110 |
110 |
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Diamond Core Drilling Machine |
Units |
60 |
-- |
|
Operating Equipment for Drilling |
Mrs. |
60000 |
60000 |
|
Paper Tubes |
Pcs. |
6600000 |
-- |
|
Paper Cones |
Pcs. |
27231000 |
-- |
|
Parallel Tubes |
Kgs. |
9174 |
-- |
|
Spiral Tubes |
Pcs. |
2870000 |
-- |
|
Spare Parts for Earthmoving Equipments |
Units |
1200 |
1200 |
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Special Types of Valves for drilling & other Industrial Products |
Nos. |
6000 |
6000 |
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Mechanical Seals |
Nos. |
3600 |
3600 |
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Solderless Terminals |
Nos. |
60000 |
60000 |
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Electro Magnetic Multi-disc Clutches & Brakes |
Pcs. |
4000 |
500 |
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Diesel Engines |
Nos. |
210000 |
102500 |
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Electricity Operated Cran Diesel & Petrol driven Engine Winches |
MT |
1200 |
3000 |
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Light/Medium Heavy Structural Steel Gates and Hoisting Machines |
MT |
1000 |
2400 |
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Vibratory Compactors |
Units |
200 |
200 |
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Tandom Roller |
Nos. |
-- |
-- |
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Man Riding System |
Nos. |
7 |
7 |
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Sky Climber |
Nos. |
50 |
50 |
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Concrete Mixer |
Nos. |
-- |
-- |
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Batching Plant |
Nos. |
-- |
-- |
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Road Roller |
Nos. |
1050 |
200 |
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Diesel Oil Engines |
Nos. |
15000 |
12500 |
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Generating Sets |
Nos. |
55000 |
22600 |
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Deepwell Turbine Pumps |
Nos. |
1000 |
650 |
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Internal Combustion Engines |
Nos. |
270000 |
220000 |
GENERAL
INFORMATION
|
Customers : |
v Adroit Industries, Satara, Maharashtra v Aress High Duty Forging Private Limited v Atai Filters Private Limited v Devgiri Forgings Private Limited v Domore Tools & Accessories Private
Limited v Ellai Lakshmi Monose’s (Private) Limited v Gravity Die Casters Private Limited v Mahee Engineering (Private) Limited v Sai Forge Private Limited v Sargam Metals Private Limited v Siddhant Pressing Private Limited v Sri Balaji Castings Private Limited v
Upasana
Engineering |
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No. of Employees : |
6000 |
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Bankers : |
v Bank of India v Oriental Bank of Commerce v State Bank of India v
Syndicate
Bank v
ICICI Bank
Limited |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Sharp &
Tannan Chartered
Accountants |
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Associates: |
v Crompton Greaves Limited v Greaves Morganite Crucible Limited v Pacific Greaves Pte. Limited, Singapore v The company was set up essentially for
trading in Vietnam. |
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v |
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Subsidiaries: |
v Dee Greaves Limited v Greaves Leasing Finance Limited v Greaves Midwest Engineering Company
Limited v Rajpath Investment Limited v Carnation Investment Limited v SIDVIM AG (Overseas Subsidiary) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 millions |
|
2500000 |
Redeemable Preference
Shares |
Rs. 100/- each |
Rs. 250.000 millions |
|
|
TOTAL |
|
Rs.750.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48831222 |
Equity Shares |
Rs. 10/- each |
Rs. 488.300 millions |
|
Add : |
Shares forfeited |
|
Rs. 0.100 million |
|
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TOTAL |
|
Rs. 488.400 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.06.2007 |
30.06.2006 |
30.06.2005
|
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SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
488.300 |
488.400 |
456.400 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
24.300 |
|
|
3] Reserves &
Surplus |
2504.400 |
1672.700 |
995.500 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
2992.700 |
2161.100 |
1476.200 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
330.300 |
480.200 |
595.200 |
|
|
2] Unsecured
Loans |
64.400 |
69.700 |
191.400 |
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TOTAL BORROWING
|
394.700 |
549.900 |
786.600 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
3387.400 |
2711.000 |
2262.800 |
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APPLICATION OF FUNDS
|
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|
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|
|
|
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|
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FIXED ASSETS [Net Block]
|
1741.100 |
1146.200 |
898.900 |
|
Capital work-in-progress
|
419.200 |
163.600 |
151.300 |
|
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|
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INVESTMENT
|
784.800 |
894.300 |
390.100 |
|
DEFERREX TAX ASSETS
|
0.000 |
42.900 |
392.500 |
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
1059.200 |
879.600 |
664.500 |
|
|
Sundry Debtors
|
875.900 |
919.600 |
625.400 |
|
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Cash & Bank Balances
|
386.000 |
335.200 |
661.500 |
|
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Other Current Assets
|
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances
|
928.000 |
575.600 |
542.400 |
Total Current Assets
|
3249.100 |
2710.000 |
2493.800 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
2455.800 |
1948.500 |
1689.100 |
|
|
Provisions
|
351.000 |
297.500 |
374.700 |
Total Current Liabilities
|
2806.800 |
2246.000 |
2063.800 |
|
Net Current Assets
|
442.300 |
464.000 |
430.000 |
|
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|
|
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|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
3387.400 |
2711.000 |
2262.800 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2007 |
30.06.2006 |
30.06.2005
|
|
|
Sales Turnover |
12158.300
|
9396.000
|
7301.700
|
|
|
Other Income |
160.400
|
289.100
|
325.100
|
|
|
Total Income |
12318.700 |
9685.100 |
7626.800 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1436.600
|
1320.500
|
1016.100
|
|
|
Provision for Taxation |
213.400
|
469.600
|
395.200
|
|
|
Profit/(Loss) After Tax |
1223.200
|
850.900
|
620.900
|
|
|
|
|
|
|
|
|
Export Value |
N.A. |
N.A. |
215.600 |
|
|
|
|
|
|
|
|
Import Value |
N.A. |
N.A. |
297.200 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
7141.600
|
5549.600
|
4170.300
|
|
|
Excise Duty |
1524.700
|
1060.100
|
782.000
|
|
|
Power & Fuel Cost |
110.500
|
81.900
|
81.300
|
|
|
Stock Adjustments |
[18.100]
|
[19.300]
|
77.300
|
|
|
Other Manufacturing Expenses |
240.600
|
198.600
|
178.200
|
|
|
Employee Cost |
703.200
|
615.400
|
510.900
|
|
|
Selling and Administration Expenses |
651.400
|
539.300
|
387.900
|
|
|
Miscellaneous Expenses |
183.800
|
103.800
|
173.400
|
|
|
Interest & Financial Charges |
184.300
|
102.800
|
135.800
|
|
|
Depreciation |
160.100
|
132.400
|
113.600
|
|
Total Expenditure |
10882.100 |
8364.600 |
6610.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2007 [1st Quarter] |
31.12.2007 [2nd Quarter] |
|
Sales Turnover |
|
3106.000
|
3422.500
|
|
Other Income |
|
24.700
|
21.000
|
|
Total Income |
|
3130.700
|
3443.500
|
|
Total Expenditure |
|
2756.400
|
2993.100
|
|
Operating Profit |
|
374.300
|
450.400
|
|
Interest |
|
54.900
|
49.400
|
|
Gross Profit |
|
319.400
|
401.000
|
|
Depreciation |
|
49.600
|
50.800
|
|
Tax |
|
25.900
|
28.600
|
|
Reported PAT |
|
237.900
|
294.600
|
KEY RATIOS
|
PARTICULARS |
30.06.2007 |
30.06.2006 |
30.06.2005 |
|
Debt
Equity Ratio |
0.18 |
0.38 |
0.84 |
|
Long
Term Debt Equity Ratio |
0.18 |
0.38 |
0.84 |
|
Current
Ratio |
1.18 |
1.28 |
1.50 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed
Assets |
4.80 |
4.75 |
4.30 |
|
Inventory
|
12.54 |
12.17 |
11.15 |
|
Debtors |
13.54 |
12.16 |
12.27 |
|
Interest
Cover Ratio |
8.79 |
12.54 |
6.78 |
|
Operating
Profit Margin (%) |
14.65 |
15.12 |
14.17 |
|
Profit
Before Interest and Tax Margin (%) |
13.33 |
13.71 |
12.62 |
|
Cash
Profit Margin (%) |
11.38 |
9.53 |
8.12 |
|
Adjusted
Net Profit Margin (%) |
10.06 |
8.13 |
6.57 |
|
Return
on Capital Employed (%) |
54.08 |
53.11 |
40.74 |
|
Return
on Net Worth (%) |
48.34 |
43.43 |
38.91 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was
originally formed in 1868 as a partnership firm between James Greaves and
George Cotton to undertake import/export
trading. The firm took up manufacturing of cotton yarn, but discontinued it in
1920. It forayed into engineering related activities by taking up import of
machinery/equipments in 1922. In
1937, the company promoted 2 companies manufacturing ceiling fans and other
electrical products. These two companies were merged in 1966 to form Crompton
Greaves, in which the company still has a significant equity stake. Over the
years, the company entered into technical and financial collaboration with
several international players and formed a number of subsidiaries/joint ventures (most of these have been
merged with the company over last few years). After independence in 1947,
ownership transferred to Indian hands, when Mr. L. K. Thapar bought the
controlling interest from Greaves family. Mr. L. K. Thapar passed away in 1962,
since then Mr. L. M. Thapar is heading the operations, In FY93, the company
disposed off its Marol facilities and the sales proceeds were used to meet
outflow on account of VRS (Voluntary Retirement Scheme).
The company was
originally incorporated under the name and style of “Greaves Cotton and Company
Private Limited” on 29th March, 1922 at Mumbai in Maharashtra. Over
the years the name “Greaves Cotton” became synonymous with the Engineering
business in India and abroad. In order to have its own identity the name of the
company was changed to “Greaves Limited” in the year 1993. However the company
is still being perceived by the customers, associates, industry and
institutions as “Greaves Cotton and Company Limited” because of very strong
Brand Equity of “Greaves Cotton” and also often gets mixed wit the name of
Crompton Greaves. Hence, the very purpose for which the name was changed has
been defeated and in addition, valuable Brand Equity of “Greaves Cotton” is
getting eroded.
The company changed
the name to present w. e. f 28/11/2003 to avoid confusion and to realize the
benefits of the strong Brand Equity that “Greaves Cotton” enjoys in the market
place
The company, part
of the Thapar Group, was founded in 1859. Subsequently in 1950, Greaves was
converted into a Public Limited Company.
BUSINESS
The company is
engaged in manufacturing of Diamond Bits, Industrial Diamond Tools, Oilfield
Diamond Bits, High Pressure Pumps for Mud Slush and Water, Diamond Care
Drilling Machine, Operating Equipment for Drilling, Paper Tubes, Paper Cones,
Parallel Tubes, Spiral Tubes, Spare Parts for Earth Moving Equipments, Special
types of Valves for drilling and other Industrial Products, Mechanical Seals, Solderless
Terminals, Rock Roller Bits, Electro-magnetic Multi-disc Clutches and Brakes,
Electricity Operated Crane, Diesel and Petrol driven Winches, Light/Medium/Heavy Structural Steel Works, Gates and Hoisting Machines,
Vibratory Compactors, Tandom Roller,
Man Riding System, Sky Climber, Concrete Mixer, Batching Plant, Road
Roller, Discrete Devices and Intergated Circuits, Diesel Oil Engines,
Generating Sets, Deepwell Turbine Pumps, Marine and Industrial Gear Boxes,
Internal Combustion Engines, Tractors, Acrylonitrite Butadiene Styrene, High
Impact Polystyrene, Styrene Acrylonitrite and Diesel Three Wheeler Auto
Rickshaw.
The company is the
largest manufacturer of internal combustion engines. Company is one of India’s
leading engineering companies. It manufactures a wide range of industrial
products including diesel engines, generating sets, engine-driven pumps,
portable engines and gensets, power transmission equipment, thermal equipment,
semi conductor devices and gearboxes to meet the requirement of core sectors.
The business operations of the company are divided into business groups
strategically structured to ensure maximum focus on each business area and yet
retain a unique synergy in the operations.
The business operations of the company are
divided into following business groups :
|
Business Groups |
Product Lines |
|
Power generation |
Diesel Engines –
15-1000 HP Generating sets –
15-520 KVA |
|
Power
transmission |
Industrial
gearboxes and fluid couplings |
|
Portable engines |
Internal
combustion engines 1.5 to 11 HP |
|
General
engineering |
Cranes, Concrete
pumps, vibratory compactors, rock roller bits, crucibles |
|
Industrial
products |
ABS / HIPS
resins, pumps, stem traps, semiconductor devices |
|
Farm equipment |
Power tillers –
12 to 14.3 HP @2000 TM |
Company has an independent
division marketing high technology systems for marine, aviation and electronic
applications.
In the recent
years, company has made rapid strides towards globalisation. Company exports several products and systems
to virtually every continent. Company
also undertakes international trading activities including third country
trading covering both export and import relating to engineering goods and
consumables for industry, infrastructure and projects.
Company’s product range includes –
|
Business Group |
Products |
|
Power Generation |
Diesel Engines Gensets Dual Fuel Engines
/ Gensets Gas Genset |
|
Power
Transmission |
Worm Gears Helical Gears and
Bevel Helical Gears Worm/Heliworm/ Helical / planetary. Bevel helical geared
motors Custom built.
Helical, bevel helical gearboxes Vertical coal
mill gearbox Lift machine Traction type
variable speed tyre |
|
Portable Engines |
Engines Gensets Pump sets |
|
General
Engineering |
Concrete Pumps Transit mixers Concrete batching
plants\truck moulded pumps Concrete pavers Single drum
compactors Tandem compactors Light compaction
equipment Rock Rollers Bits Silicon Carbide
and clay graphite crucibles Cast and forged
rolls Nickel alloys,
titanium, electrodes Filler metals ,
miscellaneous materials Shearers Road
headers, manriding systems, mine electrical |
|
Industrial
Products |
ABS, Hips, San
and Gpps, Resins Steam Taps,
special strainers Horizontal and
Vertical Slurry Pumps Diaphragm Valves Butterfly Valves Power Tillers |
BUSINESS
AND OUTLOOK
During the year under review, the Company achieved an
impressive growth in sales of 29.4% at Rs. 12158.000 Millions. All business
segments recorded improved performance, more particularly, the Infrastructure
Equipment segment, which achieved a growth of over 88% over the previous year.
The Profit after Tax at Rs. 1223.000 Millions, improved by 43.8% over the
previous year. The high growth in the economy and overall buoyant situation
contributed to this performance. In view of anticipated higher demand, the
Company, during the year, set up an additional manufacturing facility for
concrete mixers at its existing location in Gummidipoondi, Tamil Nadu.
The Company continued to lay emphasis on technology
upgradation and introduction of new products across all business segments. With
this strategy, coupled with Government's continued thrust on higher spending in
various infrastructure sectors, the Directors are reasonably confident to
continue the growth momentum in the coming years.
PROMOTER GROUP
The Company is a part of B M Thapar Group. The Promoter Group holding in the Company, currently is 50.38% of the Company's Equity Capital.
The Members may note that B M Thapar Group, inter alia, comprises of the following Companies:
(1) English Indian Clays Limited (2) Premium Energy Transmission Limited (3) Pembril Industrial and Engineering Company Private Limited (4) DBH International Private Limited (5) Karun Carpets Private Limited (6) Greaves Leasing Finance Limited (7) Bharat Projects Private Limited (8) Dee Greaves Limited (9) KCT Chemicals and Electricals Limited (10) Standard Refinery and Distillery Limited (11) Bharat Starch Products Limited (12) Greaves Farymann Diesel GmbH (13) Greaves Cotton Netherlands B.V. (14) DBH Global Holdings Limited.
ACQUISITION OF BUKH
FARYMANN DIESEL GMBH, LAMPERTHEIM, GERMANY ('FARYMANN')
As a part of the Company's long term strategy to position itself in the global market, the Company acquired in March 2007, Bukh Farymann Diesel GmbH (now name changed to Greaves Farymann Diesel GmbH) at an enterprise value of Euro 4.24 million (Rs. 250 Millions approx.). This Company is engaged in the manufacture and marketing of single cylinder diesel engines and parts. The Directors are hopeful that this acquisition would give boost to the Company's global plans and also spur its export initiatives. The synergies, which Greaves can provide from India, will enable Farymann to grow manifold in relatively short span of time.
The
above acquisition was made by the Company, through its new Subsidiary viz.
Greaves Cotton Netherlands B.V. set up for this purpose.
SUBSIDIARIES
The Company has following
Subsidiaries:
1. Greaves Farymann Diesel GmbH,
Lampertheim, Germany
This
Company is engaged in the manufacture of single cylinder diesel engines for
construction, genset, marine and defence applications, amongst others. The
Company has recorded a turnover of Euro 4 million for six month period ended
June 30, 2007.
2. Greaves Cotton Netherlands
B.V.
This
Company has been set up to act as a Holding and an Investment Company
overseas.
3. Greaves Leasing Finance Limited
(GLFL)
GLFL
is engaged in leasing and finance activities mainly confined to the Greaves
Group. GLFL reported a total revenue of Rs. 25.800 Millions during the
financial year ended March 31, 2007 with a Profit after Tax of Rs. 11.500
Millions.
4. Dee Greaves Limited (DGL)
DGL is
a wholly owned Subsidiary of Greaves Leasing Finance Limited, engaged in
trading activities. For the financial year ended March 31, 2007, DGL earned a
total revenue of Rs. 26.900 Millions with a profit after tax of Rs.3.800
Millions.
In
terms of approval granted by the Central Government under Section 212 (8) of
the Companies Act, 1956, copies of the Balance Sheet and Profit and Loss
Account, Reports of the Directors and Auditors of the Subsidiaries, have not
been attached to the Annual Accounts of the Company. These documents, will
however, be made available upon request by any Member of the Company.
DIRECTORS
The tenure of Mr. P. Sachdev, Managing Director and CEO, ended on May 3, 2007.
In view of his vast experience and the continued excellent performance achieved
by the Company tinder his leadership, the Board has re appointed Mr. Sachdev
for a further period of two years effective May 4, 2007.
Mr.
Gautam Thapar resigned from the Board of the Company effective May 16, 2007,
owing to pre-occupation in other businesses. Mr. B.M. Thapar has expressed his
desire not to seek re-election. The Board places on record its sincere
appreciation for their valued contribution in strategizing the business, particularly
during the trying times when the Company faced serious difficulties not too
long ago.
Mr.
Vikram Tandon has been appointed as a Director at the Board Meeting held on
August 7, 2007 to fill the vacancy caused by the resignation of Mr.
Gautam
Thapar. Mr. Tandon, aged 58 years, is Ex-Director of Pepsico India Limited and
brings with him expertise in different fields for over 36 years in
multinational companies, including Uniliver and Hindustan Lever etc.
Mr.
S.N. Talwar retires by rotation and is eligible for re-appointment.
The
Board recommends the re-appointments of Mr. P. Sachdev and Mr. S.N.
Talwar.
The profiles of Mr. P. Sachdev, Mr. S.N. Talwar and Mr. Vikram Tandon form part
of the Notice convening the Annual General Meeting.
MANAGEMENT DISCUSSION
AND ANALYSIS
India's economy is on the path of an ever rising growth curve. With positive indicators such as an 8-9 per cent annual GDP growth rate, foreign exchange reserves close to USD 210 bn, a booming capital market and the popular 'Sensex' topping the majestic 15,000 mark, the Government estimating FDI inflow of USD 12 bn in this fiscal, and a more than 35 per cent surge in exports, manufacturing sector is on an upswing.
At the
company, the positive national economic growth served as a backdrop for
delivering a robust performance. 2006-07 was a year when the Company expanded
its product range, forayed into new markets and is set to launch new products,
benchmarked with the latest technology, in the next couple of years. With
ambitious plans to capitalize on the opportunities across the industrial,
automotive and infrastructure sectors, the Company is set to boost its brand
equity in the market.
FINANCIAL
Keeping pace with the buoyant economy and GDP growth, the Company clocked in a
revenue of Rs. 10764.000 Millions during the year, an increase of 28% over the
previous year in spite of a slow down, which has been witnessed in some sectors
in the last quarter, following the stringent control measures adopted by fiscal
authorities to curb spiraling inflation. The worst, however, seems to be
over, with inflation under control at around 4.3% compared to the peak of 7%
experienced a few months back.
During
the year under review, the Profit Before Tax (PBT) amounted to Rs. 1437.000
Millions and the Profit After Tax (PAT) Rs. 1223.000 Millions. The growth of
PAT was 44%. Earnings per Share (EPS) was Rs. 25.05, providing the best returns
to its investors in the recent history of the Company.
The
healthy cash flow and profit earned by the Company made it possible not only to
distribute handsome dividends but also paved the way for investing in assets
with future earnings potential. During 2006-07, the Company committed capital
investment of Rs. 1450 Millions, major portion of which is related to capacity
expansion and R and D projects. The Company also acquired Bukh Farymann Diesel
GmbH, a German Company in March 2007, at an enterprise value of Euro 24.4
million (Rs. 250 Millions) approximately through its Subsidiary, Greaves Cotton
Netherlands B.V.
The
strong all round performance in the last few years, has enabled the Company to
shore up its reserves and the Debt/Equity ratio now stands at a mere 0.13. The
borrowing capacity coupled with available funds, would provide a momentum to
the Company for further growth.
Engines - Power
Generation
This Business Group manufactures industrial diesel engines for various applications such as generating sets in the 15-550 KVA range, in both air-cooled and water-cooled versions and enjoys a 15% market share in the domestic market.
The
Group contributed 14% to total sales of the Company. A strong demand for
gensets is expected to continue due to the robust growth in the infrastructure,
housing, retail, telecom and various industrial sectors, and the gap in demand/supply
of electric power. The Company is also targeting sale of engines for other
applications such as construction equipment, material handling equipment,
marine to name a few.
A new
state-of-the-art Technology Centre at Chinchwad, Pune, which will become
operational shortly, will aid the development of new engines and upgrade the
performance of existing ones. This Group will shortly launch its new series of
'G-11' engines, which are targeted to be most compact and fuel efficient in the
range of 30-100 KVA.
OPPORTUNITIES
Greater demand for gensets due to continuing shortage of power.
Greaves
Silent Genset
Major
thrust on infrastructure development by the Government in order to sustain the
above 8% GDP growth rate.
Growth in telecom and retail sectors.
THREATS
High crude prices would lead to an increase in the price of diesel fuel.
The
continued lowering of import duty on engineering products could make imports
more competitive vis-a-vis Indian products.
OUTLOOK
The market for gensets appears buoyant due to the widening demand supply gap
for electricity. As India further climbs the economic growth curve, it will
witness huge power demand accruing from the industrial, housing and
infrastructure sectors. At the same time, due to the escalating diesel prices
and emphasis on emission standards, genset users are now exploring alternate
sources of fuel, which in turn will enhance the prospects for gas and dual fuel
gensets.
Gauging
the market trends, Greaves is planning to introduce new water-cooled engines
for industrial and genset applications, which will enhance its range and market
penetration.
Engines -
Agricultural Applications
Greaves manufactures petrol/kerosene engines, which are either marketed as complete pumpsets for the agricultural sector or as bare engines for miscellaneous applications. Engines manufactured by this Business Group range between 1 to 4 HP.
During
the year under review, the Group contributed 8.4% to total sales and registered
a modest growth. The Company enjoys a leadership position in the portable
petrol/kerosene engine pumpset segment in the domestic market.
This
Group has also recently forayed into Defence supplies.
The
decline in the ground water levels and intense competition from low price
Chinese manufacturers has resulted in limited growth in the pumpset segment. In
this scenario, promoting alternative uses for this product in the construction
and defence sectors are on the anvil. The rugged construction of such engines
makes it suitable for use for concrete vibrators in the construction sector.
With the acceptance of this application, the demand and growth potential are
expected to pick up.
· The Group also leverages its vast rural distribution network to market 'Greaves' branded power tillers.
OPPORTUNITIES
· Applications of engines in high growth construction sector.
· The widening demand / supply gap for electricity is leading to continued opportunity for engine driven pumpsets.
THREATS
· Continuously declining water table across the country.
· Low priced localized competition as well as cheap Chinese imports.
· Erratic availability of kerosene.
OUTLOOK
The Company's strong service and distribution network has helped it counter
competition from China, thus providing a positive outlook. Greater penetration
in rural sector and targeting overseas markets for pumpsets, are areas of
strong focus. The Group is also looking to expand the existing range of
portable petrol / kerosene gensets. These initiatives should help improve the
overall performance of this Business Group.
Engines - Automotive Applications
Engines
manufactured by this Business Group are for Automotive, Marine and Industrial
applications, with majority revenues accruing from the light-weight diesel
engines used in 3-wheelers.
The
Group contributed 58.3% to total sales and has grown by 28% over the previous
year. The Indian economy grew at a strong pace during the year under review,
resulting in an upward momentum in the diesel 3-wheeler and 4-wheeler small
commercial vehicle (SCV) segments. The diesel 3-wheeler segment grew by
approximately 14% year-on-year during the period April 2006 - March 2007.
Some of the key initiatives taken by
the Company during the year under review are:
· To tap the emerging 4-wheeler SCV segment, the Company has developed a twin cylinder engine with a suitable gearbox. Presently, the engines are under extensive trials.
· Invested over Rs. 600 Millions in a new facility at Aurangabad to manufacture the new generation twin cylinder engines and gearbox.
· Offering CNG/LPG variants of its range of engines.
· Supply of substantial volume of charging/generating sets to Defence forces.
OPPORTUNITIES
· Road development initiatives are expected to receive a further boost on the back of increased focus on connecting main highways with villages and smaller towns.
· In the coming years, low cost transportation would assume prime importance and demand for 3 and 4 - wheeler SCVs is likely to grow at 15 - 20% annually.
· Good demand for genset and other applications for the new twin cylinder engines.
THREATS
· One of the key OEM customers of Greaves recently announced its plans to set up its own engine production facility, which is expected to be operational in 2-3 years' time.
· A rising interest rate scenario is likely to dampen the growth of the SCV market, which could impact the Company's revenues.
· Government initiatives to gradually impose restrictions on diesel vehicles in metro cities will affect the sale of Diesel 3-wheelers.
OUTLOOK
The likely impact on account of setting up its own engine production facility
by the OEM is expected to be more than offset by a combination of various
initiatives being taken by the Company, such as:
· Diversifying the application range of engines.
· Focus on global business opportunities by leveraging of 'Farymann' brand.
· Introduction of newly developed twin cylinder engines.
· Tying up new OEMs for SCV application.
Infrastructure Equipment
Greaves
manufactures a wide range of products in both the road making' and 'concreting
equipment' segments, such as:
Road making
segment
· Vibratory Compactors* Heavy Tandem Rollers* Light Tandem Rollers
Concreting
equipment segment
·
Transit Mixers
·
Concrete Pumps
·
Batching Plants
This
Business Group contributed 19% to total sales and has grown by 88% over the
previous year.
The
company performance has been exceptional which is evident from the fact that
the Company has clocked a growth rate of 85% in road making segment and 95% in
concreting segment.
The high growth witnessed by this Group is mainly due to India's strong economic progress seen over the past few years. The hatching plant introduced by Greaves last year, evoked good response from the market place. The encouraging customer acceptance for metro pumps and higher capacity concrete pumps also augurs well for this business segment.
OPPORTUNITIES
· Present state of infrastructure in the country is woefully short to meet future aspirations.
· Strong infrastructure spending is clearly visible, as the government has targeted an outlay of approximately USD 350 billion in the 11th five year plan.
THREATS
· Entry of new players could affect the Company's market share.
· Hardening of interest rates could result in lower demand from the housing sector.
OUTLOOK
The huge investments planned, would benefit Infrastructure Equipment
manufacturing companies such as Greaves and offer a big opportunity. With the
Company's plan to enhance production capacities in the current financial year,
this Group is poised for substantial growth, barring unforeseen
circumstances.
Human
Resources Providing a competitive edge
Greaves
believes that human resource is its prime asset, which has been instrumental in
its success. The human capital, therefore, forms the core of the Company's
future strategies for success. HR development policy at Greaves aims to foster
creativity, productivity, innovation and a culture of excellence.
Career
development at Greaves is a planned process, under which talent and exceptional
initiatives are recognized, rewarded and employees are also provided a
growth-oriented platform, synergizing with the organizational objectives.
The HR
policies lay strong emphasis on developing its human asset pool. In this
direction, Greaves has undertaken leadership development programmes to prepare
its employees to shoulder managerial responsibilities in the future.
The
Company is confident that these measures will enable it to raise the bar, as it
moves to face challenges and opportunities of the future.
FIXED
ASSETS
· Goodwill (Cost of infrastructure),
· Freehold Property (A),
· Leasehold Property (B),
· Plant and Equipment,
· Technical Know-how,
· Furniture and Vehicles.
Group
The company belongs
to Thapar Group, currently headed by Mr. L. M. Thapar. Prominent group
companies are : Greaves Limited, Crompton Greaves (Electrical/ Engineering products), A. P. Rayon
(rayon grade wood pulp), Ballarpur Industries (paper and related products). Mr.
L. M. Thapar companies’ control will be passed on to his eldest nephew Mr.
Vikram Thapar.
The company
promoted the first ever Indo-Russian joint venture in the private sector--
Rajasthan Polymers and Resins, to manufacture 20000 TPA of ABS/HIPS resins
during 1991. In 1992-93, Greaves Semi-conductor, a subsidiary, was amalgamated
with the company. Two units of Enfield India were also acquired to enhance the
company's core strengths in engine manufacture and marketing.
The company
expanded the engine manufacturing capacity to 65000 engines p.a. to manufacture
the latest diesel engines in collaboration with Klockner-Humboldt-Duetz,
Germany. The company has tied up with SAME, Italy, to manufacture agricultural
tractors. The tractor project was set up at Ranipet, Tamilnadu. A port and
marine infrastructure development company is being set up as a joint venture
with the Black Seas port authorities. Greaves has also signed a MoU with the
Maharashtra Government for a Rs. 35000 millions industrial park. The petrol
engine unit and the Greaves Heavy Engineering unit received the ISO 9000
certification in 1995-96.
During the year
1997-98, the company completed the divestment of its Greaves Garuda 3-wheeler
Auto plant at Baramati in favour of a Joint Venture Company - Piaggio Greaves
Vehicles Limited formed in collaboration with Piaggio Veicoli Europe SpA of
Italy. The company holds 49% equity in the joint venture and the balance is
with Piaggio.
It has made a foray
into the manufacture of tractors, with the launch of 50 HP tractor in technical
collaboration with SAME of Italy. The SAME Greaves 503 is to be produced by
Greaves at its new Rs. 400 millions facility at Ranipet in Tamilnadu. The plant
will have a capacity to produce 9000 tractors. Besides tractors, it has also
entered into an agreement with the Italian tractor major for the manufacture of
tractor engines. The engine plant, also in Ranipet, has been set up a separate
joint venture company, SAME Greaves Limited, in which SAME and Greaves will
hold equity in the ratio of 51:49. A joint venture company between Greaves
Limited and Piaggio SPA has been formed to produce three wheelers in India.
In 1999-2000, Rajasthan
Polymers and Resins was merged with the company. The tractor business was
transferred in the joint venture company SAME Greaves Tractors, formed in
collaboration with SAME Deutz FAHR SpA of Italy and SAME Deutz Fahr Holding and
Finance BV, The Netherlands in March, 2000.
The company had
made a reference to BIFR due to erosion of its networth. It has also decided to
give major thrust to its own manufacturing Diesel Engines, Gear Boxes, and
Construction Equipments and trading. It also planning to add new product ranges
for trading business.
In 2000-01 the
company has exited from the business venture with Piaggio Greaves Limited and
SAME Greaves Limited. As there was a heavy debt owed by erstwhile RPRL the
operations of the unit is under suspension and the company is also proposing
for a OTS of RPRL debts with the secured lenders.
WEBSITE DETAILS
Greaves - A
multi-faceted Engineering Enterprise
Subject established in
1859, is one of India’s leading and well-diversified engineering companies. It
manufactures a wide range of industrial products to meet the requirement of
core sectors in India and abroad. The Company’s core competencies are in
Diesel/Petrol engines, Gensets, Agro Equipment and Construction Equipment. The
business operations of the Company are divided into various Business Groups
strategically structured to ensure maximum focus on each business area and yet
retain a unique synergy in the operations:
The Business Groups are:
|
Business
Groups |
Product Lines |
|
Power
Generation Group |
Large Diesel
Engines, Generating Sets up to 1000 kva |
|
Agro Equipment Group |
Petrol / Kerosene
Engines: 1 to 4 HP, Gensets, Pump sets and Power Tillers |
|
Light
Engines Group |
Diesel Engines :
4.4 to 11 HP |
|
Infrastructure
Equipment |
Concreting Pumps,
Transit Mixers, Vibratory Compactors and Crucibles |
Besides the Business Groups, Greaves has an independent Division marketing high
technology systems for marine, aviation and electronic applications.
In the recent years, Greaves has made rapid strides towards globalization. The
Company exports several of its products to various countries.
Greaves has 6 Manufacturing Units located all over India.
An extensive sales and service network manned by highly skilled and dedicated
workforce keeps Greaves in touch with its customers anytime, anywhere.
MISSION STATEMENT
To manufacture and market a wide range of high
quality products, services and systems of world class technology to the total
satisfaction of customers in domestic and overseas markets
March
7, 2007
Greaves
Cotton acquires Bukh-Farymann Diesel, Germany for Rs. 250 Millions
Greaves Cotton Limited, one of India’s leading engineering
companies, today announced the acquisition of Bukh-Farymann Diesel GmbH, a
diesel engine manufacturing company in Germany. The enterprise value of this
acquisition is approx. 4.24 million Euros (Rs.250 Millions). This is Greaves’
first acquisition abroad. The acquisition was made through its wholly owned
subsidiary, Greaves Cotton Netherlands B. V., which was set up recently.
Bukh-Farymann is a profit making Company, engaged in the manufacture and
marketing of Farymann diesel engines and components thereof with an annual
turnover of Rs.500 Millions approx. The name of the Company is being changed to
Greaves Farymann Diesel GmbH. Mr. Rainer Stuermer will continue as the Managing
Director. This acquisition will accelerate Greaves foray into global markets
including exports.
Commenting on the deal, Mr. P. Sachdev, Managing Director and CEO, Greaves
Cotton Limited said, “This acquisition fits well into our business strategy to
move aggressively into global markets. The synergies which Greaves can bring
from India will enable Farymann to grow manifold in a relatively short span of
time”.
Bukh-Farymann manufactures single cylinder diesel engines with applications in
construction machinery, generating sets, marine and defence equipment. Greaves
in India is already one of the largest diesel engine manufacturers with a
significant number of these engines going into automotive applications. Now,
the addition of Farymann range will enable Greaves consolidate its position in
the other segments as well.
Farymann diesel engines incorporate unique design features and are lightweight
and fuel-efficient. Manufactured in the 5 to 15 HP range, at a well-equipped
facility at Lampertheim in Germany, Farymann engines conform to EPA and EU
emission norms. Over the past 60 years, Farymann has established its brand
across many markets spanning the globe.
Greaves is a multi-product, multi-locational company with core competencies in
the areas of diesel engines and infrastructure equipment. The Company sustains
its leadership through eight manufacturing units which produce world class
products backed by comprehensive marketing and service / parts network
throughout the country.
PVPL ties up with
Greaves for supply of engine
Mumbai, 22nd January 2008 : Piaggio Vehicles Private Limited(PVPL), the Piaggio Group’s Indian subsidiary, today signed an important long-term agreement with Greaves Cotton Limited (Greaves) for the supply of mono-cylinder diesel engines for application on the three-wheeled vehicles manufactured by PVPL.
Under the terms of the 8-year agreement, Greaves will continue to supply to PVPL the GL400 BSII mono-cylinder diesel engine currently used on the Ape vehicles, and starting from April 2010, in connection with the introduction of the new Bharat Stage III emissions regulations in India, it will supply to PVPL a new BSIII compliant mono-cylinder diesel engine being developed by Greaves.
The agreement is a mutually beneficial techno-commercial understanding leading
to a strategic buying arrangement by PVPL. Consequently Greaves will continue
to be a single source supplier of such mono-cylinder diesel engines for
3-wheeled vehicles manufactured by PVPL.
Mr. Ravi Chopra, Chairman and Managing Director of PVPL said that they enjoyed
excellent business relationship with Greaves, and look forward to continued
long term relationship, as hitherto.
Mr. P. Sachdev, Managing Director and CEO of Greaves said that for the past
almost 10 years, Greaves catered to all the requirements of the mono-cylinder
diesel engines for PVPL. He expressed hope that the business relationship with
Piaggio Group will become even stronger, going forward.
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 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.40.62 |
|
UK Pound |
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.64.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
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 |
|