MIRA
INFORM REPORT
|
Report Date : |
09.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
EASUN REYROLLE LIMITED |
|
|
|
|
Formerly Known As : |
EASUN REYROLLE RELAYS AND DEVICES |
|
|
|
|
Registered Office : |
Temple Tower, 6th Floor, 672, Anna Salai, Chennai-600035,
Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
29.08.1974 |
|
|
|
|
Com. Reg. No.: |
006695 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L31900TN1974PLC006695 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEE03221B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
Stock Exchange. |
|
|
|
|
Line of Business : |
Manufacturer of Switch gear, Control panel and Electric Board |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 2500000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having fine track.
Trade relations are fair. General financial position is good. Business is active.
Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Murugeshan |
|
Designation : |
Senior Finance Manager |
|
Date : |
08.09.2008 |
LOCATIONS
|
Registered Office/ Regional Sales/ Marketing Offices Chennai : |
Temple Tower, 6th
Floor, 672, Anna Salai, Chennai-600035, Tamilnadu, India |
|
Tel. No.: |
91-44-24346425/ 7608 |
|
Mobile No.: |
91-9845055009 |
|
Fax No.: |
91-44-24346435 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office/ Central Marketing Division/ Technology Development Centre/ Automation Business/ Turnkey Projects/
Automatic Meter Reading / Regional Sales/ Marketing Offices Bangalore : |
# 389, “Rasukumaki”, Hulimavu, Begur Hobli, Bannerghatta Road,
Bangalore-560076, Karnataka, India |
|
Tel. No.: |
91-80-67177000/ 7001 |
|
Fax No.: |
91-80-67177002 |
|
Mobile No.: |
91-9341621030/ 9845055009 |
|
E-Mail : |
|
|
|
|
|
Factory: |
Hosur Works # 98, Sipcot Industrial Complex, Hosur-635126, India |
|
Tel. No.: |
91-4344-401600/ 01/02 |
|
Fax No.: |
91-4344- 276397 |
|
|
|
|
Factory : |
Switchgear Works # 98, Sipcot Industrial Complex, Hosur-635126, India |
|
Tel. No.: |
91-4344-401600/ 01/02 |
|
Fax No.: |
91-4344- 276397 |
|
|
|
|
Factory : |
Bangalore Works #17/3, Arakere, Bannerghatta Road, Bangalore-560076, Karnataka, India |
|
Tel. No.: |
91-80-26581023/ 3268 |
|
Fax No.: |
91-80-2658642 |
|
E-Mail : |
|
|
|
|
|
Export Division : |
Located AT:-
|
|
|
|
|
Regional Sales/ Marketing
Office: |
Located At:-
|
DIRECTORS
|
Name : |
Mr. Hari Eswaran |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Alexander John Ramsay |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. W S Jones |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Martin Bell |
|
Designation : |
Director |
|
Date of Appointment : |
|
|
|
|
|
Name : |
Mr. Raj H Eswaran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S Ramani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K N Nagesha Rao |
|
Designation : |
Secretary and VP ( Corporate Finance) |
|
|
|
|
Name : |
Mr. J D N Sharma |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Murugeshan |
|
Designation : |
Senior Finance Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
A Promoters’
Holdings |
|
|
|
Indian Promoters |
|
|
|
Mr. Hari Easwaran And Associates |
742538 |
22.29 |
|
Foreign
Promoters |
|
|
|
VA Tech Hydro GmbH |
332746 |
9.99 |
|
Non –Promoters’
Holding -Bank |
1556 |
0.05 |
|
Others |
|
|
|
Mutual Fund |
238814 |
7.17 |
|
Private Corporate Bodies |
534708 |
16.05 |
|
Foreign Institutional Investors |
81310 |
2.44 |
|
NRIs/OCCBs |
36323 |
1.09 |
|
Indian Public |
1362826 |
40.92 |
|
Total |
3330821 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Switch gear, Control panel and Electric Board |
||||||||||||||||
|
|
|
||||||||||||||||
|
Products : |
|
||||||||||||||||
|
|
|
||||||||||||||||
|
Exports : |
|
||||||||||||||||
|
Countries : |
|
||||||||||||||||
|
|
|
||||||||||||||||
|
Imports : |
|
||||||||||||||||
|
Countries : |
UK |
GENERAL
INFORMATION
|
Customers : |
Government Bodies |
|
|
|
|
No. of Employees : |
603 ( Registered Office 3, Factory 300, Branches 300) |
|
|
|
|
Bankers : |
State Bank of India |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Brahmayya and Company Chartered Accountant |
|
Address : |
48, Masilamani Road, Balaji Nagar, Royapettah, Chennai-600014,
Tamilnadu, India |
|
|
|
|
Name : |
R Subramanian and Company Chartered Accountant |
|
Address : |
36, Krishnaswamy Iyer Avenue Luz, Chennai-600004, Tamilnadu, India |
|
|
|
|
Associates/Subsidiaries : |
ERI International Limited |
CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
|
5000000 |
Unclassified shares |
Rs. 10/- each |
Rs. 50.000 Millions |
|
|
Total |
|
Rs. 100.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3330991 |
Equity Shares |
Rs. 10/-
each |
Rs. 33.309
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3330821 |
Equity Shares |
Rs. 10/-
each |
Rs. 33.308
Millions |
|
|
a) 44140 Equity Shares of Rs. 10 each fully paid up, issued for consideration
other than cash b) 1566955 Equity Shares of Rs. 10 each (including 135 Equity shares on
bonus) is held in abeyance pursuant to Section-206-A of the Companies Act
1956) |
|
|
|
|
Total |
|
Rs. 33.308 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
33.308 |
33.308 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
475.058 |
344.883 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
508.366 |
378.191 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
192.319 |
181.776 |
|
|
2] Unsecured Loans |
|
7.453 |
7.453 |
|
|
TOTAL BORROWING |
|
199.772 |
189.229 |
|
|
DEFERRED TAX LIABILITIES |
|
28.214 |
24.417 |
|
|
|
|
|
|
|
|
TOTAL |
|
736.352 |
591.837 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
207.641 |
132.230 |
|
|
Capital work-in-progress |
|
5.039 |
6.851 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
177.932 |
143.085 |
|
|
Sundry Debtors |
|
580.694 |
417.497 |
|
|
Cash & Bank Balances |
|
41.297 |
65.031 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
267.837 |
152.709 |
|
Total
Current Assets |
|
1067.760 |
778.322 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
319.775 |
213.029 |
|
|
Provisions |
|
233.688 |
132.340 |
|
Total
Current Liabilities |
|
553.463 |
345.369 |
|
|
Net Current Assets |
|
514.297 |
432.953 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
9.375 |
19.803 |
|
|
|
|
|
|
|
|
TOTAL |
|
736.352 |
591.837 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
|
1329.568 |
1063.994 |
|
|
Other Income |
|
22.515 |
17.765 |
|
|
Total Income |
|
1352.083 |
1081.759 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
265.705 |
207.128 |
|
|
Provision for Taxation |
|
89.047 |
76.298 |
|
|
Profit/(Loss) After Tax |
|
176.658 |
130.830 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Value |
|
86.334 |
76.178 |
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Import Value |
|
264.063 |
162.552 |
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Materials |
|
773.121 |
587.439 |
|
|
Personal Expenses |
|
108.309 |
90.026 |
|
|
Increase/(Decrease) in Finished Goods |
|
[11.676] |
13.287 |
|
|
Interest |
|
19.445 |
13.593 |
|
|
Depreciation & Amortization |
|
27.698 |
25.370 |
|
|
Other Expenditure |
|
169.481 |
144.916 |
|
Total Expenditure |
|
1086.378 |
874.631 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2008 Full Year |
|
Sales Turnover |
|
|
1853.400 |
|
Other Income |
|
|
41.800 |
|
Total Income |
|
|
1895.200 |
|
Total Expenditure |
|
|
1522.700 |
|
Operating Profit |
|
|
372.500 |
|
Interest |
|
|
36.700 |
|
Gross Profit |
|
|
335.800 |
|
Depreciation |
|
|
366.900 |
|
Tax |
|
|
80.800 |
|
Reported PAT |
|
|
218.100 |
|
Dividend (%) |
|
|
1500.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 1st
Quarter |
|
Sales Turnover |
|
|
363.800 |
|
Other Income |
|
|
16.800 |
|
Total Income |
|
|
380.600 |
|
Total Expenditure |
|
|
312.500 |
|
Operating Profit |
|
|
68.100 |
|
Interest |
|
|
6.400 |
|
Gross Profit |
|
|
61.700 |
|
Depreciation |
|
|
8.800 |
|
Tax |
|
|
17.800 |
|
Reported PAT |
|
|
35.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
|
0.44 |
0.50 |
|
Long Term Debt-Equity Ratio |
|
0.09 |
0.05 |
|
Current Ratio |
|
1.47 |
1.35 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
|
5.49 |
5.52 |
|
Inventory |
|
9.47 |
7.75 |
|
Debtors |
|
3.05 |
3.74 |
|
Interest Cover Ratio |
|
9.92 |
11.05 |
|
Operating Profit Margin(%) |
|
21.27 |
20.89 |
|
Profit Before Interest And Tax Margin(%) |
|
19.44 |
18.79 |
|
Cash Profit Margin(%) |
|
13.45 |
12.89 |
|
Adjusted Net Profit Margin(%) |
|
11.62 |
10.79 |
|
Return On Capital Employed(%) |
|
47.43 |
51.34 |
|
Return On Net Worth(%) |
|
39.86 |
41.92 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Subject previously known as Easun Reyrolle Relays and Devices was
incorporated in 1974 at Hosur and commenced production in 1980. The company was
promoted by the late K Easwaran, Hari Easwaran and associates with equity
participation from Reyrolle Parsons (a division of Reyrolle), a wholly owned
subsidiary of Rolls Royce Engineering, UK. The company is headed by chairman
Hari Easwaran. The promoters have interests in Easun Engineering, Easun
Products of India, Easun Investments, etc. It is having factories in
Hosur(Tamil Nadu) and in Bangalore.
In Oct.'95, the company came out with a Rs 7.1-cr rights issue (premium :
Rs 100) to finance the modernisation and expansion of production capacity, for
an R&D unit, for the manufacture of microprocessor-based relays and for
long-term working capital. The company's product range includes relays and
control panels. It is setting up a unit to manufacture microprocessor-based
relays. The major customers of the company include BHEL, ABB, Siemens, S &
S Power Switchgear, etc.
The company has technical collaboration with Rolls Royce, UK (since May
'75), to manufacture relays, relay test sets and relay tool kits. It entered
into a licensing arrangement with Rolls Royce in Feb.'95 to exclusively
manufacture microprocessor-based relays. Products manufactured by the company
are being bought back by Reyrolle, UK.
The company commissioned 2 225-MW wind energy turbines in Sep.'94, in
Tamilnadu. It has taken steps to modernise the existing plant and machinery to
improve productivity. It also proposes to strengthen the R&D wing and widen
its product range.
After its incorporation, the company had to delay commencement of
operations due to delay in obtaining industrial licence. In 1987, the company
was declared sick by BIFR and a scheme of rehabilitation was sanctioned in
Apr.'90. In 1990, the company renewed its licence agreement with its
collaborators, turned around and posted a net profit of Rs 7.036 Miilions in
1990-91. This improved to Rs 18.205 Milllions in 1993-94. The Central
Electricity Generating Board (CEGB) has acknowledged Reyrolle's adherence to
the highest engineering standards and Easun Reyrolle is stated to be on par
with these exacting standards.
In 1996 in order to expand production capacity and to commence
manufacture of micro-processor based numeric relays, ERRDL has set up a
seperate unit at Bangalore and commenced production at the new unit on 2nd May
1996. During the year company issued on Rights basis 6,45,715 equity shares of
Rs. 10 each at a premium of Rs. 100 aggregating to Rs71.033 Millions. During
the year 1997 company had declared bonus shares in ratio 1:1. The Company has a
diversification/expansion plan for which company has purchased land at Jigani,
near Bangalore.
During 1997-98, the company received ISO-9002 accreditation from
Electricity Association Quality Assurance Limited, UK (EAQA) for the quality
systems in Hosur and Bangalore factories.
The company has introduced a new protective Relay featuring
microprocessor technology. The Over current Feeder Relay has been fully
designed and developed by the R & D team and has commercialized its
production in the year 1999-2000.
MANAGEMENT
DISCUSSION AND ANALYSIS
a) Operational and Financial Performance:
The Company continued to see strong growth in the financial year 2006-07 in
terms of revenue, order book and profits. The total revenue increased to
Rs.1352.100 Millions from Rs.1081.700 Millions in the previous year, a growth
rate of 25%. The operating profit increased by 27% from Rs.2461.000 Millions to
Rs.312.900 Millions. The net profit of the Company for the year has grown by
35% at Rs.176.700 Millions (13% of the revenue) as compared to Rs.130.800
Millions (12% of revenue) in the previous year.
The Company is among the leading power management companies in India providing
effective solutions to Power Sector customers in India and globally by
leveraging its wide ranging product and solution offerings, robust processes
and technological excellence. It is committed to its objective of sustainable
growth and maximizing returns to stakeholders
Acquisition of business in
Canada:
As a part of its effort to establish significant global presence, during June
2007, the Company acquired the business of the Protection Relays and Power
System Disturbance Recorders (Relay and Recorder) Division of Nxtphase T&D
Corporation, Canada, including the Intellectual Property in the form patents,
all the related assets and certain defined liabilities of the Division. For the
purpose of this acquisition, the Company established a wholly owned subsidiary
in Canada, under the name 'ERL Phase Power Technologies Limited', which will be
responsible for conducting the new business acquired.
ERL Phase will provide High Technology Protection, Power system Recording and
Wide Area Monitoring solutions to Power Utilities in Americas and other Global
Markets. The Company has its Operation in Winnipeg, Canada and has significant
Market presence in America, Europe, Australia and Asian countries.
Acquisition of Nxtphase R&R Division is expected to give a strong boost to
the Company's strategic growth directions. This acquisition will enable Easun
Reyrolle, which currently enjoys a leading position in the Indian market,
* to strengthen further its presence in the transmission segment in the
Indian market, by bringing in the state-of-the-art technology products,
* to introduce new product lines to Indian customers through ERL Phase
products,
* to strengthen ERL Phase's presence in the Americas and other lucrative
markets where they are already present and support them with Easun Reyrolle
Products and
* leverage the total product line of Easun Reyrolle and ERL Phase to
target markets in various countries.
With access to the strong R&D base that this acquisition provides, the
Company would significantly strengthen its technological base in the areas of
Power Protection and Automation Technologies by synergising its own R&D
efforts with the strong R&D Team at Canada. The products of the two companies
being complimentary, the combined technological strengths of both the
organisations will ensure that the global customers get the products and
solutions tailored to their specific needs.
Continued organic growth:
During the year, the Company established modern facilities for Switchgear
Assembly at its Hosur plant. The Switchgear business has seen significant
increase in order booking and is expected to grow rapidly in the coming
years.
The Company entered in to a strategic tie up with PSI-CNI of Germany in the
promising field of SCADA DA/DMS. It has also made a significant start in
offering Automatic Meter Reading Solutions to prestigious customers. Apart from
executing a number of Substation Protection and Automation Projects at 220 /
132 kV level, it has successfully executed orders for 400kV level for
Substation Protection and Automation. It has introduced a new range of
Communicable Numerical Protection Products. The Company also completed two
Substation Turnkey Projects Contracts, apart from obtaining orders for many
more. The Company further strengthened its technical and managerial skills by
attracting talents as necessary. During the year the Company accelerated its
R&D efforts and spent Rs.3.76 crores on R&D activities, which
constitutes 2.78% on annual revenue earnings.
b) Industry Structure and
Developments:
The Indian economy registered an accelerated GDP growth of 9.2% in the
fiscal year 2006-07, and it is widely realised that sustenance of this impressive
growth rate is feasible only if adequate power is available. With under
performance during 10th five-year Plan clearly acknowledged, Government is
leaving no stone unturned to achieve the targeted generation capacity addition
of 120,000 MW during 11th five-year Plan. The Government has increased the
budgetary support and coverage under APDRP scheme to all district headquarters
and towns with more than 50,000 population. To give thrust on Power Sector,
Government has allowed 100% foreign direct investment and encouraged
establishment of ultra mega power projects (each of 4,000 MW capacity) with
publicprivate participation. It has also invited private developers to set up
transmission projects and merchant power plants. Apart from significant new investments
in the T&D sector, policy makers are also focussing their attention on loss
(and theft) reduction (targeted to be reduced from the current high levels
reaching up to 50% in some states to less than 25% by the end of the current
five year plan) improved Power management, all of which provide exciting
opportunities for the Company's business.
c) Outlook, Opportunities, Risks
and Threats:
Globalization of economies, India's consistent economic growth, continued
investment in power sector and Government's emphasis on developing National
Grid offer great opportunity to expand Company's operations.
Company continues to pursue technology innovation, expansion and market
penetration by augmenting facilities and human resources, restructuring and
focussing on optimisation of processes. Though increased competition, rising
price level of metals, availability and retention of talents pose challenge,
the overall outlook for the Company continues to be positive with superior
opportunities for growth.
Divestment of
Equity held by VA TECH Hydro GmbH:
Consequent to the acquisition of VA TECH by Siemens the JV partner Reyrolle
became a subsidiary of Siemens and hence the Board of the Company informed the
Government of India that it would not be in interests of the Company to have
Siemens as shareholder of the Company as they are competitors in the market
place.
VA TECH Hydro GmbH, Austria held 23.54% of the total Equity paid up capital of
the Company. They commenced diluting their stake in the Company's equity from
October, 2006 and by the week ending 15th June, 2007, they divested their
entire holdings through the Indian Stock market.
Post divestment, Mr. Martin Bell, and Mr. Alexander John Ramsay (who are also
on the board of Reyrolle UK) resigned as Directors of the Company. The Board
places on record the valuable services rendered by Mr. Martin Bell and Mr.
Alexander John Ramsay during their term of Office as Directors.
Brief Background
of Directors being re-appointed
a) Mr Hari Eswaran
Mr Hari Eswaran, 70 years, is one of the founder - Directors of Easun
Reyrolle Limited Presently, he is non-executive Chairman on the Company's
Board. He is a Fellow of the Institution of Electrical Engineering, U.K. Mr
Hari Eswaran, a pioneer in the electrical engineering industry, has been
associated with various industry and tradeassociations. He is the past Chairman
of the following bodies;
1. Indian Electrical and Electronics Manufacturers Association
2. Madras Chamber of Commerce and Industry
3. Association of Indian Engineering Industry (Southern Region), now
known as CII.
4. Employers Federation of Southern Indian
Mr Hari Eswaran is a Member of Associated Chamber of Commerce and
Industry and on the Board of the following Companies:
|
Easun Engineering Company Limited |
Chairman |
|
Easun-MR Tap Changers Private Limited |
Chairman |
|
Eswaran and Sons Engineers Limited |
Chairman |
|
Easun Products of India Private Limited |
Director |
|
Easun Switchgear Private Limited |
Director |
Mr Hari Eswaran is holding 1390] Equity Shares of Rs.10 each in Easun
Reyrolle Limited as on 31st March, 2007.
b) Dr S Ramani
Dr S Ramani, aged 73 years, holds degrees in Mechanical, Electrical, and
Aeronautical Maintenance Engineering. He holds a Doctorate Degree in Industrial
Engineering besides a Master Degree in Mechanical Engineering and a post
Graduate Diploma in Indian Institute of Management, Kolkata.
Dr S Ramani served as Director of National Institute of Industrial
Engineering (NITIE), Mumbai. He is the former vice-chancellor of Kanchi
University. He served as the Head of Department of Humanities & Social
Sciences at Indian Institute of Technology, Chennai. He also served as the
National President of Indian Institute of Industrial Engineering, National
President of Indian Institute of Plant Engineers and Chairman, Indian Institute
of Material Management. He was on the Board of several Companies including
Central Board of State Bank of India.
Dr S Ramani is on the Board of Easun Reyrolle Limited for 24 years.
Dr S Ramani is holding 100 Equity Shares of Rs.10 each in Easun Reyrolle
Limited as on 31st March, 2007.
Audit Committee:
The Audit Committee of the Company comprised of three Members namely, Dr
S Ramani, Dr W S Jones, and Mr Raj H Eswaran. Dr S Ramani is the Chairman of
the Audit Committee.
The Terms of reference specified by the Board to the Audit Committee are
in conformity with Clause 49 of the Listing Agreement.
During the year 2006-07, 4 Audit Committee Meetings were held. The
attendance of Members during the year was as below:
|
Names and
Position of the Member |
No. of Meetings |
|
|
|
Held |
Attended |
|
Dr S Ramani |
4 |
4 |
|
Dr W S Jones |
4 |
4 |
|
Mr Raj H Eswaran |
4 |
4 |
Subsidiary
Companies :
As mentioned in the attached Directors' Report, ERLPHASE Technologies
Limited, Canada is operating as a subsidiary of the Company. Necessary
compliance reporting as regards the subsidiary Company would commence during
the financial year 2007-08.
Shareholders' /
Investors' Grievance Committee :
The Shareholders' / Investors' Grievance Committee comprises of Mr Hari
Eswaran and Mr Raj H Eswaran. Mr Hari Eswaran (a non-executive Director) is the
Chairman of the Committee.
The Committee looks into redressing of shareholders' / Investors'
complaints in the matter of share transfer, non-receipt of dividend, annual
report etc. The Committee overseas the performance of the Registrar and
Transfer Agents.
The Board of Directors has delegated the power to approve transfer and
transmission of shares, in favour of Mr Hari Eswaran, Chairman.
Mr K N Nagesha Rao, Secretary and VP (Corporate Finance) is the
Compliance Officer of the Company.
During the year 2006-07 the Company received 26 complaints and all the
complaints were resolved to the satisfaction of the Shareholders.
Remuneration
Committee:
The Directors have not appointed any Remuneration Committee since
Directors do not draw any remuneration from the Company except the sitting fee
for attending the meetings of the Board and the Committee thereof.
Unaudited
Financial Results for the Quarter ended 30th June, 2008 ( Stand
Alone)
(Rs. In
Millions)
|
Particulars |
Audited |
|
31.03.2008 |
|
|
Net Sales/Income from Operations |
1853.400 |
|
Other Income |
41.800 |
|
Total Income
(1+2) |
1895.200 |
|
Expenditure |
|
|
a) (Increase)/Decrease in stock in trade and work in progress |
8.600 |
|
b) Consumption of raw materials |
1141.700 |
|
c) Purchase of traded goods |
|
|
d) Employee Cost |
144.800 |
|
e) Depreciation |
326.900 |
|
f) Other Expenditure |
227.600 |
|
Total
Expenditure |
1559.600 |
|
Interest |
36.700 |
|
Exceptional Items |
0.000 |
|
Profit from Ordinary Activities before tax (3)-(4+5+6) |
298.900 |
|
Tax Expense |
80.800 |
|
Net Profit from Ordinary Activities after tax (7-8) |
218.100 |
|
Extraordinary Items (net of tax expense) |
-- |
|
Net Profit for the period (9-10) |
211.100 |
|
Paid-up equity share capital (Face value of the share Rs.2) |
40.800 |
|
Reserves excluding revaluation reserves as per the balance sheet of
previous accounting year |
1563.900 |
|
Earning Per Share (EPS)-not annualised |
|
|
a) Basic EPS |
10.69 |
|
b) Diluted EPS |
9.01 |
|
Public Shareholding |
|
|
- Number of Equity Shares |
15842515 |
|
Percentage of Shareholding |
77.73% |
(*)EPS dilution arising out of possible conversion of FCCB and Warrants
pending conversion.
Note:
1.The above results were taken on record by the Board of Directors in
their Meeting held on 31st July, 2008.
2.The financial results have been subjected to Limited Review by
Auditors of the Company
3.Consequent to sub-division in the face value of equity shares from
Rs.10 per share to Rs.2 per share, the number of shares and Earning Per Share
have been restated for the previous year.
4.The Company is predominantly engaged in the business of manufacture
and sale of "Power System Products and Systems" and accordingly only
one segment is reported.
5.The figures have been re-grouped wherever necessary to conform to
current period's classification.
6.The Company had no investor complaints pending as on 31st March, 2008.
During the quarter ended 30th June, 2008, the Company did not receive any
complaint from any shareholders.
Consolidated
Audited Financial Results for the year ended 31st March 20087
(Rs. In
Millions)
|
Particulars |
Audited |
|
|
31.03.2008 (Consolidated) |
31.03.2007 (Standalone) |
|
|
Net Sales/Income from Operations |
1949.000 |
1329.600 |
|
Other Income |
127.100 |
22.500 |
|
Total Income
(1+2) |
2076.200 |
1352.100 |
|
Expenditure |
|
|
|
a) (Increase)/Decrease in stock in trade and work in progress |
8.600 |
[11.700] |
|
b) Consumption of raw materials |
1187.200 |
773.100 |
|
c) Purchase of traded goods |
-- |
-- |
|
d) Employee Cost |
197.700 |
108.300 |
|
e) Depreciation |
38.500 |
27.700 |
|
f) Other Expenditure |
267.100 |
169.500 |
|
Total
Expenditure |
1699.100 |
1066.900 |
|
Interest |
40.800 |
19.400 |
|
Exceptional Items |
-- |
-- |
|
Profit from Ordinary Activities before tax (3)-(4+5+6) |
336.300 |
265.800 |
|
Tax Expense |
83.500 |
89.100 |
|
Net Profit from Ordinary Activities after tax (7-8) |
252.800 |
176.700 |
|
Extraordinary Items (net of tax expense) |
|
-- |
|
Net Profit for the period (9-10) |
252.800 |
176.700 |
|
Paid-up equity share capital (Face value of the share Rs.2) |
40.800 |
33.300 |
|
Reserves excluding revaluation reserves as per the balance sheet of
previous accounting year |
1598.600 |
475.000 |
|
Earning Per Share (EPS)-not annualised |
|
|
|
a) Basic EPS |
12.40 |
10.61 |
|
b) Diluted EPS |
10.44 |
10.61 |
|
Public Shareholding |
|
|
|
- Number of Equity Shares |
18842515 |
11277685 |
|
Percentage of Shareholding |
77.73% |
67.72% |
EPS dilution araising out of FCCB and Convertible Warrants Issues.
Note:
1. The above Financial Results were taken on record by the Board of
Directors at their Meeting held on 31st May, 2008.
2. The Board of Directors has recommended a Dividend of 150% for the
financial year 2007-08 (at Rs.3.00 per shares, including including Interim
dividend at 25% paid).
3. During the quarter, the Company incorporated a wholly owned
subsidiary, ERL International Pte Limited, Singapore. During the quarter,
ERLPhase Power Technologies Limited, Canada, ceased to be a subsidiary of the
Company and became subsidiary of ERL International Pte. Limited, Singapore. The
consolidated figures for the Current Financial year are strictly not comparable
with that of previous Financial year as they are standalone results.
4.
a)During the quarter the Company increased paid up capital by allotting
9,37,500 Global Deposisory Receipt underlying equity shres of Rs.2 each at a
premium of Rs 313.60, aggregating to Rs.295.875 Millions (US$7.5 million). The
proceeds of this issue are fully utilized for the purpose mentioned in the
offer document
b) During the quarter, the Company also issued 9,14,719 Equity Shares of
Rs.2 each on conversion of 1,82,944 Warrants issued to the Company's Promoters
and their associates on preferential basis. The Company received Rs.12,07,42,908
towards allotment of these shares, which is fully utilised as per the stated
objects of the issue namely to part finance cost of Company's growth plans.
5. The Company is predominantly engaged in the business of manufacture
and sales of "Power System Products and Systems" and accordingly only
one segment is reported
6. The previous year's figures have been re-grouped wherever necessary
to conform to current year's classifications.
7. The Company had no investor complaint pending as on 31.12.2007.
During the quarter ended 31.03.2008, the Company received 5 complaint from the
shareholders and as on 31.03.2008, the same has been attended to and resolved.
8 Consequent to sub-division in the face value of equity shares from Rs
10 per share to Rs 2 per share, the number of shares and Earning Per Share have
been restated for the previous year.
Audited Financial
Results for the year ended 31st March, 2008
(Rs. In Millions)
|
Particulars |
Audited |
|
31.03.2008 |
|
|
Net Sales/Income from Operations |
1853.400 |
|
Other Income |
41.800 |
|
Total Income
(1+2) |
1895.200 |
|
Expenditure |
|
|
a) (Increase)/Decrease in stock in trade and work in progress |
8.600 |
|
b) Consumption of raw materials |
1141.700 |
|
c) Purchase of traded goods |
|
|
d) Employee Cost |
144.800 |
|
e) Depreciation |
36.900 |
|
f) Other Expenditure |
227.600 |
|
Total
Expenditure |
1559.600 |
|
Interest |
36.700 |
|
Exceptional Items |
-- |
|
Profit from Ordinary Activities before tax (3)-(4+5+6) |
298.900 |
|
Tax Expense |
80.800 |
|
Net Profit from Ordinary Activities after tax (7-8) |
218.100 |
|
Extraordinary Items (net of tax expense) |
|
|
Net Profit for the period (9-10) |
218.100 |
|
Paid-up equity share capital (Face value of the share Rs.2) |
40.800 |
|
Reserves excluding revaluation reserves as per the balance sheet of
previous accounting year |
1563.900 |
|
Earning Per Share (EPS)-not annualised |
10.69 |
|
a) Basic EPS |
9.01 |
|
b) Diluted EPS |
|
|
Public Shareholding |
|
|
- Number of Equity Shares |
15842515 |
|
Percentage of Shareholding |
77.73% |
EPS dilution araising out of FCCB and Convertible Warrants Issues.
Note:
1. The above Financial Results were taken on record by the Board of Directors
at their Meeting held on 31st May, 2008.
2. The Board of Directors has recommended a Dividend of 150% for the
financial year 2007-08 (at Rs.3.00 per shares, including including Interim
dividend at 25% paid).
3. During the quarter, the Company incorporated a wholly owned
subsidiary, ERL International Pte Limited, Singapore. During the quarter,
ERLPhase Power Technologies Limited, Canada, ceased to be a subsidiary of the
Company and became subsidiary of ERL International Pte. Limited, Singapore. The
consolidated figures for the Current Financial year are strictly not comparable
with that of previous Financial year as they are standalone results.
4.
a)During the quarter the Company increased paid up capital by allotting
9,37,500 Global Deposisory Receipt underlying equity shres of Rs.2 each at a
premium of Rs 313.60, aggregating to Rs.295.875 Millions (US$7.5 million). The
proceeds of this issue are fully utilized for the purpose mentioned in the
offer document
b) During the quarter, the Company also issued 9,14,719 Equity Shares of
Rs.2 each on conversion of 1,82,944 Warrants issued to the Company's Promoters
and their associates on preferential basis. The Company received
Rs.12,07,42,908 towards allotment of these shares, which is fully utilised as
per the stated objects of the issue namely to part finance cost of Company's
growth plans.
5. The Company is predominantly engaged in the business of manufacture
and sales of "Power System Products and Systems" and accordingly only
one segment is reported
6. The previous year's figures have been re-grouped wherever necessary
to conform to current year's classifications.
7. The Company had no investor complaint pending as on 31.12.2007.
During the quarter ended 31.03.2008, the Company received 5 complaint from the
shareholders and as on 31.03.2008, the same has been attended to and resolved.
8 Consequent to sub-division in the face value of equity shares from Rs
10 per share to Rs 2 per share, the number of shares and Earning Per Share have
been restated for the previous year.
Fixed Assets:
- Land
- Lease hold
Land
- Land-Hosur
Residential Plots
- Buildings
- Buildings-
Lease Hold
- Plant and
Machinery
- Electrical
Installations/ Fitting
- Office
Equipments
- Furniture
- Vehicles
AS PER WEBSITE
Profile:
Subject is an acknowledged leader in the field of electrical power
management. They truly offer a "ONE TOUCH ACCESS" to power system
solutions, as a dependable partner to customers, in India and abroad .
The vision is to be recognized as a significant global organization
providing products and services for the protection, control, metering and
automation of power.
The mission is to provide highest value to the customers through cost-effective
technology and a highly motivated and skilled team of employees, and achieve
rapid sustainable growth to maximize returns for the shareholders.
Whether it be in power generation, transmission, distribution or
utility, Easun Reyrolle offers products, system, solutions and services to
manage these segments with reliability, efficiency and safety.
Three Manufacturing plants in India, located at Hosur, Bangalore and
Chennai, incorporate modern state-of-the-art production facilities and latest
test equipment.
Through a comprehensive marketing and service network spread across
India's vast territory, Easun Reyrolle is
able to offer its customers the exacting levels of support and service
needed to cater to their requirements.
Wide-ranging R and D efforts in all its activities, ensure that customers
receive not only the latest international technologies, but also those that can
be adopted to the unique demand of power systems across the world. The highly
qualified, well trained R and D engineers at Easun Reyrolle employ the latest
test equipment and resources, to ensure that proven and world-class technology
is delivered consistently.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.26 |
|
UK Pound |
1 |
Rs.79.00 |
|
Euro |
1 |
Rs.63.53 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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 |
|