MIRA
INFORM REPORT
|
Report Date : |
10.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ASSOCIATED
TRANSRAIL STRUCTURE LIMITED |
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|
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Registered
Office : |
7th
Floor, Neptune Tower, Productivity Road, Alkapuri, Baroda – 390 007, Gujarat |
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Country : |
India
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Financial (as
on) : |
30.06.2007 |
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Date of
Incorporation : |
29.03.1993 |
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Com. Reg. No.: |
04-19213 |
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CIN No.: |
L63090GJ1993PLC019213 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
BRDA01652A |
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PAN No.: [Permanent
Account No.] |
AACCA4715D |
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Legal Form : |
Subject
is a public limited liability company. The company’s shares are listed on the
stock exchanges. |
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Line of
Business : |
Execution
of Extra High Voltage Transmission Lines on Turnkey Basis. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Ba |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit
Limit : |
USD 4200000 |
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Status : |
Satisfactory
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Payment
Behaviour : |
Slow
but Correct |
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Litigation : |
Clear
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Comments : |
Subject
is a leading company in India in execution of Extra High Voltage Transmission
Lines on turnkey basis. The company has got adequate infrastructure facilities
to execute 7-8 transmission lines simultaneously. However, the performance of
the company has not been satisfactory as its business was affected by stiff
competition and due to overall liquidity crunch. The
company’s trade relations are reported as fair. The company is managed by
highly qualified and well experienced professional. Payments are currently
slows but correct. It can be considered normal for business dealings at usual
trade terms and conditions, with slight caution. |
LOCATIONS
|
Registered
Office : |
7th
Floor, Neptune Tower, Productivity Road, Alkapuri, Baroda – 390 007, Gujarat,
India |
|
Tel. No.: |
91-265-2334937/
8472 / 4603 |
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Fax No.: |
91-265-2340887 |
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E-Mail : |
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Website : |
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Factory 1 : |
Vadadla,
Jarod-Samlaya Raod, Post: GArdhiya, Taluka : Savli, Dist : Vadodara, Gujarat
- 391520 |
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Tel. No.: |
91-2667-251310
/ 318 / 320 |
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Fax No.: |
91-2667-251310 |
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Area : |
3000 sq.m. |
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|
|
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Factory 2 : |
Plot No.
G – 55, MIDC, Butibori Industrial Area, Dist : Nagpur – 441 108, Maharashtra. |
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Tel. No.: |
91-7104-265271
/ 265272 / 265761-769 |
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Fax No.: |
91-7104-265760
/ 265270 |
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Area : |
7900 sq.m. |
DIRECTORS
|
Name : |
Mr.
U. K. Bardhan |
|
Designation : |
Chairman
and Managing Director |
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|
Name : |
Mr.
D. C. Bagde |
|
Designation : |
Managing
Director |
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|
Name : |
Mr.
Biplab Kumar Ganguly |
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Designation : |
Director |
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|
Name : |
Mr.
A. H. Shah |
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Designation : |
Director |
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|
Name : |
Mr.
V. K. Patel |
|
Designation : |
Director |
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|
Name : |
Mr.
V. S. Dalwadi |
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Designation : |
Director |
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|
Name : |
Mr.
G. V. Katkoria |
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Designation : |
Director |
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|
Name : |
Mr.
Manoj Chatterjee |
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Designation : |
Director |
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|
Name : |
Mr.
C. D. Kadam |
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Designation : |
Company
Secretary |
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|
Name : |
Mr.
Himanshu Parikh |
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Designation : |
Director
|
|
Address : |
2A,
Rituraj, Juhu Military Road, Opp. Mittal Park, Juhu, Mumbai – 400049, Maharashtra
|
|
Date of
Birth/Age : |
21.11.1959 |
|
Date of
Appointment : |
20.09.2004 |
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|
|
|
Name : |
Mr.
Parvez Umrigar |
|
Designation : |
Diarector
|
|
Address : |
164,
Bora BAzar Street, Fort, Mumbai – 400 001, Maharashtra |
|
Date of
Birth/Age : |
02.06.1963 |
|
Date of
Appointment : |
01.07.2002 |
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|
|
|
Name : |
Mr.
A. B. Desai |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr. S
K Guha Thakurta |
|
Designation : |
Additional
Director |
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|
Name : |
Mr.
Naval Choudhary |
|
Designation : |
Additional
Director |
KEY EXECUTIVES
|
Name : |
Mr. Hiren Patel |
|
Designation : |
Company Secretary |
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Name : |
Mr. C D Kadam |
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Designation : |
Company Secretary |
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|
Name : |
Mr. G M Rao |
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Designation : |
Executive Vice President |
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Experience : |
35 Years |
|
Specialization : |
Operation in Power Sector |
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|
Name : |
Mr. G D Rathod |
|
Designation : |
Head – Engineering |
|
Experience : |
39 Years |
|
Specialization : |
Transmission line tower design and testing |
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|
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|
Name : |
Mr. Sanjay Lodha |
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Designation : |
Vice President – Business Development |
|
Experience : |
22 Years |
|
Specialization : |
International operations |
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|
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|
Name : |
Mr. P George |
|
Designation : |
Head – Nagpur Plant |
|
Experience : |
40 Years |
|
Specialization : |
Tower manufacturing |
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|
|
Name : |
Mr. A Ganguly |
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Designation : |
Head – Domestic Construction |
|
Experience : |
35 Years |
|
Specialization : |
Construction of transmission lines |
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|
|
Name : |
Mr. S D Shikerkar |
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Designation : |
Head – Tenders and Contracts |
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Experience : |
26 Years |
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Specialization : |
Expertise in tender conceptualization |
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|
Name : |
Mr. S Mukhopadhyay |
|
Designation : |
Financial Controller |
|
Experience : |
15 Years |
|
Specialization : |
Chartered Accountant with over 15 years of experience in finance and
accounts |
|
|
|
|
Name : |
Mr. H V Prabhu |
|
Designation : |
Head – Overseas Construction |
|
Experience : |
17 Years |
|
Specialization : |
Construction of transmission lines |
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|
|
|
Name : |
Mr. S Mitra |
|
Designation : |
Head – Accounts |
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Experience : |
22 Years |
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Specialization : |
Chartered Accountant with over 22 years of experience in finance and
accounts |
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|
|
|
Name : |
Mr. V A Mandre |
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Designation : |
Head – Manufacturing (Tower), Nagpur |
|
Experience : |
24 Years |
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Specialization : |
Planning, purchase and manufacturing of transmission towers |
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|
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|
Name : |
Mr. Deepak Patankar |
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Designation : |
Head – Human Resources |
|
Experience : |
30 Years |
|
Specialization : |
Corporate HR |
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|
|
|
Name : |
Mr. M C Modi |
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Designation : |
Head – Manufacturing (Tower), Baroda |
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Experience : |
38 Years |
|
Specialization : |
Fabrication and galvanizing of transmission line towers |
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|
|
|
Name : |
Mr. H M Joshi |
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Designation : |
Head – Commercial |
|
Experience : |
33 Years |
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Specialization : |
Accounts and commercial matters |
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|
|
|
Name : |
Mr. D R Rao |
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Designation : |
Head – Conductor Manufacturing, Silvassa |
|
Experience : |
35 Years |
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Specialization : |
Planning, purchase and manufacturing of Conductors |
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|
|
|
Name : |
Mr. Suryanarayana |
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Designation : |
Head – Production (Condutor) |
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Experience : |
15 Years |
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Specialization : |
Production and QA of Conductors |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter's Holdings |
|
|
|
Indian Promoters
and Relatives |
715264 |
7.12 |
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|
Others |
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Private / Public
Corporate Bodies |
8139216 |
80.97 |
|
Indian Public |
1163553 |
11.58 |
|
Others |
33800 |
0.34 |
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|
|
|
|
Total |
10051833 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Execution
of Extra High Voltage Transmission Lines on Turnkey Basis. |
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Products |
·
EC Grade Aluminium and Aluminium Alloy Wire Rods, which
are essential inputs for conductors manufacture. ·
Distribution Conductors for 11KV to 33KV Applications ·
AAC ( All Aluminium Conductors) ·
ACSR ( Aluminium Conductors Steel Reinforced) ·
AAAC ( All Aluminium Alloy Conductors) The
Conductors would be in 7 strands to 19 strands. ·
Transmission Conductors for 66KV, 132 KV and 220 KV. ACSR, AAC and AAAC - 13 strands, 37 strands to 61 strands. ·
Extra High Voltage ( EHV) Transmission Conductors for
400KV to 765KV ACSR and AAAC – 49 Strands to 61 Strands. ·
Extra High Strength Conductors for River Crossings and
Longer Span Lengths. AACSR – Aluminium Alloy Conductor Steel Reinforced - upto
61 Strands. ·
Other Types of Conductors in our Range but not in
Extensive Usage by the Electricity Utilities. ACAR – Aluminium Conductor
Alloy Reinforced – up to 61 Strands |
GENERAL
INFORMATION
|
Customers : |
·
KEB
Bangalore ·
GEB,
Baroda ·
EB,
Baroda ·
MSEB,
Mumbai ·
Steel/MSEB/ABB ·
DVC,
Kolkata ·
Indian
Rayon Industries/MSEB ·
KEB,
Karnataka ·
MSEB,
Mumbai ·
KEC/Powergrid ·
Inabensa/Powergrid ·
Powergrid ·
MSEB/Hyundai ·
Power
Grid Corporation of India Limited, India ·
Karnatka
Electricity Board, India ·
Chattisgarh
State Electricity Board, India ·
Madhya
Pradesh State Electricity Board, India ·
Himachal
Pradesh State Electricity Board,India ·
Uttar
Pradesh State Electricity Board, India ·
Uttranchal
Power Corporation Limited, India ·
Jharkhand
State Electricity Board, India International Customers ·
Al
– Hassan Engineering Company S.A.O.G., Oman ·
Galfar
Engineering and contracting ll.c., Oman ·
Energoinvest,
D.D. – Sarajevo, Nigeria ·
Hyundai
Engineering and Construction Limited, Korea ·
Sigma
Con (Private) Limited / Nepal Electricity Authority, Kathmandu ·
Energovod
Engineering Limited, Nigeria ·
Power
Holding Company of Nigeria, Nigeria ·
The
Kenya Power and Lighting Company, Kenya ·
Santon
Energy, Nigeria ·
Mogabs
Nigeria Limited Nigeria ·
Antlatic
Engineering and Construction Company Limited, Nigeria ·
Harlesden
Engineering Limited, Nigeria |
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Suppliers : |
·
Maharashtra
Steel Rolling Pve. Ltd. ·
Lohar
Enginnering ·
Sanvijay
Rerolling |
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No. of
Employees : |
500 |
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Bankers : |
·
Citi
Bank ·
Canara
Bank ·
Dena
Bank ·
ICICI
Bank Limited ·
Bank
of Baroda ·
Development
Credit Bank Limited ·
Gujarat
Sate Financial Corporation |
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Facilities : |
--
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Banking Relations : |
Satisfactory
|
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Auditors : |
·
Parikh
and Talathi Chartered Accountant ·
M/s
M.G. Shah and Associates Chartered Accountant 410, Gokul Building, 4th Floor, 80A, Baroda
Street, Carnac Bunder, Mumbai – 400 009 ·
M/s
Vinod Modi and Associates Chartered Accountant 60, Swastik Plaza, Nr. Kalaniketan, V. L. Meta Road,
J.V.P.D. Scheme, Mumbai – 400 049, Maharashtra, India |
|
Associates : |
·
Gammon
India Limited ·
Equipment
Management Company (India) Limited ·
Freyssinet
Prestressed Concret Company Limited ·
Vizaq
Seaport Private Limited |
CAPITAL STRUCTURE
(As on 30.06.2007)
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
126000000 |
Equity
Shares |
Rs.10/- Each |
Rs.1260.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10051833 |
Equity
Shares |
Rs.10/-
each |
Rs.100.518
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2007 (15 Months) |
31.03.2006 (9 Months) |
30.06.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
100.500 |
100.500 |
100.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
731.000 |
195.800 |
29.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
831.500 |
296.300 |
129.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
345.100 |
162.700 |
107.200 |
|
|
2] Unsecured Loans |
350.000 |
9.000 |
141.800 |
|
|
TOTAL BORROWING |
695.100 |
171.700 |
249.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1526.600 |
468.000 |
378.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
567.300 |
234.000 |
193.900 |
|
|
Capital work-in-progress |
133.100 |
12.500 |
10.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
2.500 |
0.500 |
0.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
990.900
|
423.400 |
360.100 |
|
|
Sundry Debtors |
1869.700
|
885.500 |
517.800 |
|
|
Cash & Bank Balances |
90.200
|
8.100 |
17.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
599.700
|
190.400 |
84.500 |
|
Total
Current Assets |
3550.500
|
1507.400 |
980.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2358.900
|
1149.900 |
765.900 |
|
|
Provisions |
367.900
|
136.500 |
40.500 |
|
Total
Current Liabilities |
2726.800
|
1286.400 |
806.400 |
|
|
Net Current Assets |
823.700
|
221.000 |
173.800 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1526.600 |
468.000 |
378.900 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
30.06.2007 (15 Months) |
31.03.2006 (9 Months) |
30.06.2005 |
|
|
Sales Turnover |
5651.700 |
1836.700 |
1288.800 |
|
|
Other Income |
0.300 |
0.200 |
17.400 |
|
|
Total Income |
5652.000 |
1836.900 |
1306.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
837.000 |
264.000 |
94.600 |
|
|
Provision for Taxation |
290.100 |
86.100 |
35.000 |
|
|
Profit/(Loss) After Tax |
546.900 |
177.900 |
59.600 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Excise Duty |
244.500 |
158.600 |
86.700 |
|
|
Manufacturing Expenses |
659.000 |
226.800 |
212.200 |
|
|
Administrative Expenses |
240.000 |
55.700 |
64.700 |
|
|
Raw Material Consumed |
3465.400 |
1020.000 |
798.800 |
|
|
Employee Cost |
101.000 |
32.200 |
37.300 |
|
|
Increase/(Decrease) in Finished Goods |
(193.800) |
(21.800) |
(98.600) |
|
|
Interest |
171.900 |
66.200 |
83.900 |
|
|
Miscellaneous Expenses |
93.100 |
19.600 |
16.800 |
|
|
Power & Fuel |
9.800 |
6.300 |
4.400 |
|
|
Depreciation & Amortization |
24.100 |
9.300 |
5.400 |
|
Total Expenditure |
4815.000 |
1572.900 |
1211.600 |
|
KEY RATIOS
|
PARTICULARS |
30.06.2007 (15 Months) |
31.03.2006 (9 Months) |
30.06.2005 |
|
Debt-Equity
Ratio |
0.77 |
0.99 |
1.47 |
|
Long
Term Debt-Equity Ratio |
0.19 |
0.45 |
0.38 |
|
Current
Ratio |
1.09 |
1.07 |
1.00 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
10.00 |
9.80 |
8.30 |
|
Inventory |
6.39 |
6.25 |
5.24 |
|
Debtors |
3.28 |
3.49 |
3.35 |
|
Interest
Cover Ratio |
5.87 |
4.99 |
2.13 |
|
Operating
Profit Margin(%) |
18.28 |
18.48 |
14.27 |
|
Profit
Before Interest And Tax Margin(%) |
17.85 |
17.98 |
13.85 |
|
Cash
Profit Margin(%) |
10.1 |
10.19 |
5.04 |
|
Adjusted
Net Profit Margin(%) |
9.68 |
9.69 |
4.62 |
|
Return
On Capital Employed(%) |
80.93 |
103.97 |
66.97 |
|
Return
On Net Worth(%) |
77.59 |
111.31 |
51.36 |
LOCAL AGENCY
FURTHER INFORMATION
DIVIDEND:
The Directors recommend a Dividend of Rs. 1.00 per Share on 10051833 Equity
Shares of Rs. 10 each for the financial year ended on 30th June, 2007, which if
approved at the forthcoming Annual General Meeting, will be paid to all those
Equity Share holders whose names appear on the Register of Members on 7th
November, 2007.
EXPORT
TURNOVER
The turnover of the Company includes Rs.324.085 Millions (15 months) towards
value of Exports, as against Rs.56.817 millions (9 Months) in the previous
year. The company has set up an Overseas Division and is aggressively poised to
improve its market share. The company is already executing Rural
Electrification Project in Kenya and 330 KV Transmission Line Project (140 KM)
in Nigeria, besides supplying towers to Oman, Ethiopia etc.
BUSINESS
PROSPECTS
With timely execution and satisfactory performance in POWERGRID Projects, the
Company is recognised as the most reliable contractor. With substantial rise in
Power Transmission and Distribution investment by the Governments, the outlook
for the industry looks good. In view of healthy order book position, the
Company expects to continue good performance in the coming Years.
STRATEGIC
EXPANSION
A) Tower Manufacturing:
The Company has commenced expansion of tower manufacturing capacity of Vadadla
Factory at Vadodara, Gujarat from 15000 MT to 24000 MT per annum and at Butibori
(Nagpur) from 30000 MT to 36000 MT per annum, thus achieving a combined
capacity of 60000 MT per annum.
In addition to above, the company is planning to set up an additional capacity
of 60000 MT per annum.
B) ACSR/AAAC Conductor Manufacturing:
In order to strengthen its competitive advantage in power transmission
business, the company is diversifying its portfolio and the Directors are happy
to inform that the company is setting up a Conductor manufacturing facility of
about 38000 MT per annum at Amboli in Silvassa and the same is expected to be
operational before March, 2008.
C) Tension Stringing Equipments
The company is already having 11 sets of Tension Stringing Equipments and has
placed order for three more with M/s. Tesmac, Italy.
DIVERSIFICATION
The Company has setup a wind farm of 4.5 MW, comprising of 3 nos. 1500 kW
rating Wind Turbine Generator (WTG) of Suzlon make at village: Arikhana, Dist:
Kutchh, Gujarat. All the 3 WTG were commissioned on 21/03/2007 and
26/03/2007.
During the Financial Year ended on 30th June, 2007, the Wind Farm has generated
828508 units (KWH) of electricity and the company has sold 828508 units of
electricity to Gujarat Urja Vikas Nigam Limited (GUVNL). The total revenue
earned during the Financial Year 2006-2007 was Rs. 2.792 millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY
STRUCTURE AND DEVELOPMENT:
Electricity is an essential requirement for all facets of the life. It is a critical
infrastructure on which socio-economic development of the Country depends.
Recognizing that electricity is the prime mover of economy and key drivers for
poverty alleviation, the `National Electricity Policy' issued by the Government
in furtherance of Electricity Act, 2003 aims to achieve the following by
2012.
- Per capita availability of power of 1000 kwh (631 kwh: 2005-06).
- Installed capacity over 2,00,000 MW (1,32,329 MW as on 31.03.07)
- Spinning Reserves of 5%.
- Minimum lifeline consumption of 1 unit/household/day
as a merit good.
- Inter-regional transmission capacity of 37,700 MW (14,100 MW as on
31.03.07).
- Quality and reliable power supply.
The power transmission and distribution system is a three-tier structure
comprising of distribution networks, state grids and regional grids. The
distribution networks are owned by the distribution licensees and the state
grids are primarily owned and operated by respective state utilities. To
facilitate the transmission of power among neighboring states, state grids are
interconnected to form regional grids. Most of the inter-state transmission
links are owned and operated by Powergrid Corporation of India Limited along
with many inter-regional transmission lines (forming part of national grid).
The regional grids are being gradually integrated to form a national grid
enabling inter-regional transmission of power facilitating optimal utlisation
of the national generating capacity.
The geographical distribution of primary sources of power generation in the
country is uneven. The hydro potential is in the Northern and North-Eastern
States and coal is primarily located in the Eastern part of the country.
Development of strong National Grid has become a necessity to ensure optimal
supply of power to all. The plan is in place for establishment of an integrated
National Power Grid in the country by the year 2012.
OPPORTUNITIES
AND THREATS:
With its technological and engineering excellence and vast pool of talented
manpower, Subject has established impeccable credentials by timely execution
and satisfactory performance of POWERGRID Projects, the Company is recognised
as most reliable contractor by its customers.
The government has realized the need to speedily develop a National Power Grid
with appropriate transmission linkages at the state level for optimum
utilisation of available generation within the various regions. The Central and
State Sectors will substantially step up investment in transmission to complete
the critical transmission lines and overcome the present mismatch in investment
between generation and transmission of power.
The economy of the country is on roll with 8-10% GDP growth and will enable
power sector to drive an unprecedented growth. Country's Eleventh Plan
(2007-2012) has target of addition of 78,000 MW of power generation. Large
projects in these areas are expected to come up across the country. Looking at
the fresh projects announced by Power Grid Corporation of India, Power Finance
Corporation, Rural Electrification and other State Electricity Boards, the
company is poised to play a key role in building national transmission
infrastructures and make major contribution to the unprecedented growth in the
power transmission and distribution sector. Subject with all the requisite
capabilities at its command is in a position to secure projects culminating
into substantial increase in its turnover and profit in the coming years.
The competition is an inevitable and inherent part of any business and subject
is no exception. The company is aware of the challenges of sustaining growth,
retaining cost and performance leadership in the context of emerging market
competition. Subject is facing competition from large and medium size players
in the industry. However, the company is ready with an array of well conceived
strategies and measures to deal with the challenges and issues. They are
re-engineering the business process as part of the change in management
strategy, adopting global best practices in the process of revamping the
working and implementing ERP as a tool for facilitating enterprise-wide change.
The company is moving ahead to become one of the main player in the power
transmission by setting up the Conductor manufacturing facility of about 38000 MT
per annum at Amboli in Silvassa and the same is expected to be operational
before March, 2008.
However, the projected government spending also has to materialise and fund
allocation may remain uncertain. Moreover the success of government plans will also
to a great extent depend on the ability of the power sector to attract fresh
investment.
The company is keenly exploring opportunities to mark footprints in different
parts of the world and already has orders from Nigeria, Kenya, Sri Lanka,
Ethiopia, Oman and Algeria, which are being executed.
SEGMENT
WISE PERFORMANCE:
The Company is having two business segments comprising of Transmission Line and
Power Generation. The Company's revenue from Transmission Line was Rs.5404.379
millions as compared to Rs.1880.145 millions in the previous year. The Wind
Mill Project was commissioned by the company in Kutchh, Gujarat and the same
commenced generation of power in March, 2007. The Company's revenue from Power
Generation during the year was Rs. 2.792 millions.
OUTLOOK:
Keeping in view the massive increase planned in generation and also for
development of power market, there is need for adequately augmenting
transmission capacity. The Ministry of Power has envisaged establishment of an
integrated National Power Grid in the country by the year 2012. The program
envisages addition of over 60,000 ckt km of Transmission Network in a phased
manner by 2012. The integrated grid shall evacuate additional 1,00,000 MW and
carry 60% of the power generated in the country. Currently, there are five
regional transmission grids for the northern, eastern, north-eastern, western
and the southern region with an aggregate capacity of over 1,00,000 MW.
Frequency integration of the western, eastern, north-eastern and northern grids
has been accomplished. The inter-regional power transmission capacity is 14,100
MW at the end of fiscal 2007, which is proposed to be further augmented to
37,700 MW by 2012 through creation of "Transmission Super
Highways".
The nation has also set noble goal of "Rural Electrification" to
electrify all the villages by 2009. The Rural Electrification is a vital
programme for socio-economic development of rural areas. This is going to
trigger economic development and generation of employment by providing
electricity as an input for productive uses in agriculture and rural industries
and improve the quality of life of the rural people by supplying electricity
for lighting of homes, shops, community centre and public places in all
villages.
The Company is executing five Projects for "Rural Electrification" in
India and has also secured order for Rural Electrification from Kenya Power and
Lighting Company Limited. With the healthy order book position and
opportunities in India and abroad, the year ahead looks promising.
The expansion of the production capacity by setting up additional facilities at
Nagpur as well as Baroda will help the Company to meet the growing demands and
achieve economies of scale, thus the combined capacity will be 60000 MT per
annum.
The company is further planning to set up additional unit near Nagpur for
manufacturing of Towers with an installed capacity of 60000 MT per annum.
In order to meet the internal demand and to maintain its control on EPC
Contract price, the company is setting up Conductor manufacturing unit at
Amboli, Silvassa with a capacity of 38000 MT per annum, which will become
operational before the end of March, 2008.
With the thrust on privatization of Transmission Lines involving large investments
in BOOT/BOO basis, the company is well positioned to capture the business
opportunity having large manufacturing capacity for towers as well as
conductors.
The Company has been upgraded as "STAR EXPORT HOUSE". The Director General
of Foreign Trade, Ministry of Commerce and Industry has registered the Company
as "Star Export House" w.e.f. 1st April, 2007.
RISK
AND CONCERNS:
To keep pace with the fast growth, the Management is continuously conscious of
the need to ensure that various functional departments of the Company work in
proper co-ordination. The Management is also aware of geographical spread of
its sites and has appropriate control mechanism in place.
Volatility in the price and availability of steel in the international market
and availability of steel in domestic market is an area of concern. Steel is
major raw material and accounts for substantial portion of the total cost of
material.
The prices of other raw material viz. bolts, nuts and zinc are showing a rising
trend, which may affect the margins of the Company. However, most of the
projects under execution are under variable price contracts, where cost
increase gets compensated by contractual price variation formula, provided
price rise is not disproportionate. The profitability may get affected due to
delay in collections because of liquidity problems faced by various State
Electricity Boards.
With margins under pressure due to increased competition, cost reduction has
become a major concern and various steps have been initiated by the management
to achieve the same.
FIXED ASSETS
- Building
- Land (Freehold) and Development
- Lad (Leasehold)
- Construction Equipment
- Vehicle
- Furniture and Fixture
- Electrical Installation
- Plant and Machinery
- Other Equipment
UN-AUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2008
(Rs. In Millions)
|
Particulars |
For the Quarter ended 30.06.2008 Un Audited |
For the Period ended 30.03.2008 Audited (9 Months) |
|
Gross Sales/Income from operations |
1560.944 |
5274.715 |
|
Less : Excise Duty |
93.395 |
182.688 |
|
Net Sales/Income from operations |
1467.549 |
5092.027 |
|
|
|
|
|
Other Income |
22.609 |
28.595 |
|
|
|
|
|
Total
Income |
1490.158 |
5120.622 |
|
|
|
|
|
Total
Expenditure |
|
|
|
Increase(-) / Decrease(+) in Stock in Trade and Work in
Progress |
(137.367) |
(119.770) |
|
Consumption of raw materials |
1036.801 |
3410.251 |
|
Employee Cost |
31.254 |
103.684 |
|
Labour Charges |
202.956 |
647.602 |
|
Depreciation |
12.240 |
28.370 |
|
Other Expenditure |
105.242 |
233.897 |
|
Total
Expenditure |
1251.126 |
4304.034 |
|
|
|
|
|
Interest |
43.413 |
139.968 |
|
Exceptional Items |
- |
- |
|
|
|
|
|
Profit(+)/Loss (-) from Ordinary Activities Before Tax |
195.619 |
676.620 |
|
Tax Expense (Incl. FBT and Deferred Tax) |
101.107 |
233.588 |
|
Net Profit(+)/Loss (-) from Ordinary Activities After Tax |
94.512 |
443.032 |
|
Extraordinary Items |
|
|
|
Prior Period Item |
67.781 |
(4.968) |
|
Net Profit |
162.293 |
438.064 |
|
Paid up Equity Share Capital of Rs.10/- each |
100.518 |
100.518 |
|
Reserves excluding Revaluation Reserves (as per Balance
Sheet of previous accounting years) |
|
1152.351 |
|
Earning per share (Rs.) (Not Annualised) |
|
|
|
Basic after Extraordinary Items |
1.615 |
4.206 |
|
Diluted after Extraordinary Items |
1.237 |
3.338 |
|
Public Shareholding |
|
|
|
Number of Shares |
9336569 |
9336569 |
|
Percentage (%) of Shareholding |
92.88 |
92.88 |
Segment wise Revenue, Results and Capital Employed for the quarter
ended 30th June, 2008 under Clause 41 of the Listing Agreement
|
Particulars |
For the Quarter ended 30.06.2008 Un Audited |
For the Period ended 30.03.2008 Audited (9 Months) |
|
Segment
Revenue |
|
|
|
Transmission Line |
1459.521 |
5105.700 |
|
Power Generation |
8.028 |
14.922 |
|
Others |
- |
- |
|
Total |
1467.549 |
5120.622 |
|
|
|
|
|
Segment
Results (Profit(+) / Loss (-) before tax and Interest |
|
|
|
Transmission Line |
231.253 |
801.802 |
|
Power Generation |
7.779 |
14.786 |
|
Others |
- |
- |
|
Total |
239.032 |
816.588 |
|
|
|
|
|
Less : Interest |
43.413 |
139.968 |
|
Total Profit Before Tax |
195.619 |
676.620 |
|
|
|
|
|
Capital
Employed |
|
|
|
(Segment assets – Segment Liabilities) |
|
|
|
Transmission Line |
2098.996 |
1995.093 |
|
Power Generation |
253.520 |
256.240 |
|
Others |
- |
- |
|
|
|
|
|
Total |
2352.516 |
2251.333 |
Notes
:
1. The above
unaudited results, have been subjected to a ‘Limited Review’ by the Statutory
Auditors’ and have been reviewed and recommended by the Audit Committee on 31st
July, 2008, and then approved by the Board of Directors at its meeting held on
31st July, 2008
2. During
the period ended on 30th June 2008, the Company has acquired 100%
stake in SAE Power Lines s r l, Italy and incorporated a wholly owned
subsidiary ATSL Holdings B V, Netherlands.
3. The
Company is setting up a new factory for manufacturing of transmission line
lowers and a tower testing station at Wardha, Maharashtra.
4. The
Board has approved the merger of Associated Transrail Structures Limited with
Gammon India Limited w.e.f. 01.04.2008, subject to necessary statutory
approvals.
5. Status
of Investors Complaint during the quarter: Pending as on 01.04.2008 - 2,
Received during the quarter – 0, Disposed Off during the quarter – 1, Pending
as on 30.06.2008-1.
6. Corresponding
figures of the previous year have been re-grouped, re-arranged and re-casted
wherever necessary.
WEB DETAILS
Subject is one of the leading EPC Companies with global exposure in
Extra High Voltage Transmission Line and Distribution projects since 1984. They
are also a part of Gammon group with group turnover of over US$ 600 million.
Gammon group is one of the biggest Corporates in India in infrastructure
projects involving large investments on BOOT / BOT.
- They have in-house facility for Design,
Survey, Tower manufacturing (capacity 60,000 TPA), Conductor manufacturing
(capacity 38,000 TPA) and our own construction facility (having completed
more than 9499 CKM of Transmission Line which includes over 3057 KM of 400
KV).
- Conductor Manufacturing with (capacity
38,000TPA) operational since March’2008.
- They are in possession of 14 sets of
Tension Stringing equipments.
- They are the fastest growing
company in the industry, turnover of which has grown 5 times in last 5
years.
- Projected turnover for the current year
2008-09 is more than US$ 313 Million.
- They are ISO 9001:2000 certified for
Manufacturing and Turnkey projects. Also certification under IS0:14001 and
18001 is under process.
- They have designed and tested more than
42 types of towers up to 800 kV for Indian and Overseas clients.
- They have large pool of competent
managerial and supervisory personnel of over 700 (excluding workmen in
factories and project sites).
- In April ‘2008 subject
has acquired 100% stake in SAE Power Lines, ITALY, who are the world leaders
in Transmission Lines, having worked in almost all continents.
- Establishing Pole Manufacturing Unit
(under subsidiary Company - Transrail Lighting Company) at Silvassa
expected to commence production by August ’2009.
- Planning to set up an additional Tower
Manufacturing Facility (Capacity: 45000TPA) near Nagpur.
- Planning to setup a Tower Testing bed
(R and D Centre) near Nagpur.
- Generation of Power through
non-conventional sources (Windmill 4.5 MW) at Kutch (Gujarat).
Organizations
Subject has more than two decades of expertise
and dedication in bringing power to doorsteps. From power transmission to
distribution and railway electrification facilitating the trading of energy,
they bring power to the projects.
They are one of the companies in the execution
of extra high voltage Transmission lines and distribution lines / rural
electrification on turnkey basis. The constant endeavor is to make ourselves
updated and constant improvements make us pioneers in commitment, technology,
quality, facility and resources.
As an EPC contractor, the scope of work includes
design, testing, fabrication, galvanizing of towers and construction activities
right from survey, civil works/ foundation, erection to stringing and
commissioning of lines, besides procurement of items such as conductors,
insulators, hardware and accessories, etc.
Infrastructure
Subject has more than two decades of expertise
and dedication in bringing power to doorsteps. From railway electrification to turning
the wheels of industry and facilitating the trading of energy, they bring power
to the projects.
They are one of the leading companies in the
execution of extra high voltage Transmission lines on turnkey basis. The
constant endeavor is to make ourselves updated and constant improvements make
them pioneers in commitment, technology, quality, facility and resources.
As an EPC contractor, the scope of work includes
design, testing, fabrication, galvanizing of towers and construction activities
right from survey, civil works/ foundation, erection to stringing and
commissioning of lines, besides procurement of items such as conductors,
insulators, hardware and accessories, etc.
Combined
strength (60,000 MT per annum)
|
Total Supplies |
Over 165,000 MT (upto April
2008) |
|
Exports |
Over 14,100 MT to countries
like Indonesia, Srilanka, Zambia, Iraq, Bangladesh, Nepal, Oman, Afghanistan
and Nigeria. |
|
Domestic Customers |
Power Grid; Sate Electricity Boards
such as Maharashtra, Gujarat, Punjab, Haryana (Tata Projects), Karnataka,
Chhattishgarh, Jharkhand, Uttar Pradesh, Uttaranchal, Jammu and Kashmir; ABB;
BHEL; Siemens: SAE; Inabensa (Spain); Tata Power etc. |
Conductor Manufacturing Unit (ACSR / AAAC / AAC)
|
Location |
Amboli, Silvassa (Dadra and
NagarHaveli) 150km from Mumbai |
|
Year of Esatblishment |
2007 |
|
Capacity |
38,000 MT per annum |
|
Land Area |
16 acres (71,000 sq.m.) |
|
Factory Area |
12,250 sq.m. |
|
Telephone No. |
+91-260-2641666 |
|
Fax No. |
+91-260-2631666 |
Adding a New Dimension to the progressive
approach, they are the First and only one so far among Transmission and
Distribution Turnkey Contractors in India, who have gone for Backward Integration
into the Manufacture of Aluminium and Aluminium Alloy conductors (with or
without Steel Reinforcement), for captive usage in the various Projects as well
as for catering to direct Purchase requirements of Quality Conductors in the
Power sector by various customers in India and Abroad.
Group Companies
Gammon India Limited is a Civil Engineering
Construction operating in India for more than 85 years, having an annual
turnover of US$600 million.
Gammon India Limited, the only Indian
Construction Company to have been accredited with ISO 9001 certification for
all fields of Civil Engineering Works including design, stands out as gateway
for Technological and Engineering excellence in Civil Engineering fields.
Gammon's dedicated and experienced team of planners, designers and construction
engineers contribute their expertise together and turn vision into reality.
This has led Gammon to the position of one of the leading engineering and
construction companies in India.
Striving for excellence and perfection, the
company has many firsts to its credit. Gammon introduced prestressed concrete
in India as early as in 1941 followed by the first prestress concrete bridge in
1949.
The organization also has to its credit the
longest river bridge in the world across the mighty Ganges at Patna, the
tallest bridge in Asia, the longest span cantilever bridge in India across
river Jadukata, the longest road bridge in India across the open sea and first
cable stayed bridge in India. The orgnisation pioneered cantilever construction,
pre-cast segmental bridge construction.
"Necessity is usually the Mother of
Invention." Gammon believes that today's solution will not be adequate
tomorrow. This quest has led it to pioneer various civil engineering techniques
and many more. Gammon today can be rightly referred to as "Builders to the
Nation.
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 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.48.74 |
|
UK Pound |
1 |
Rs.85.19 |
|
Euro |
1 |
Rs.66.12 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|