MIRA
INFORM REPORT
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Report Date : |
19.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
ACTION
CONSTRUCTION EQUIPMENT LIMITED |
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Registered Office : |
Plot No. 7, Pocket
II Market, H - Block, Sarita Vihar, New Delhi – 110044 |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
13.01.1995 |
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Com. Reg. No.: |
55 – 64347 |
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CIN No.: [Company
Identification No.] |
L74899DL1995PLC064347 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKA02093A |
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PAN No.: [Permanent
Account No.] |
AAACA6187P |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturers of
Hydraulic Mobile Cranes, Earthmoving and Construction Equipment. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 6900000 |
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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 well
established company having satisfactory track. Trade relations are fair.
General financial position is satisfactory. The company is expressed to do well
in near future due to good demand of their products. The company’s
payments are reported as slow but correct. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Plot No. 7,
Pocket II Market, H - Block, Sarita Vihar, New Delhi – 110044 |
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Tel. No.: |
91-11-26953623 /
26953626 / 26953633 |
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Fax No.: |
91-11-26953717 |
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E-Mail : |
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Website : |
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Corporate
Office/ Factory 1 : |
Jajru Road, 25th
Mile Stone, Delhi Mathura Road, Ballabgarh, Faridabad District, Haryana –
121004, Uttar Pradesh, India |
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Tel. No.: |
91-129-2307922/2307933/2307924 |
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Fax No.: |
91-129-2307562 /
2260854 |
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E-Mail : |
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Factory 2 : |
Dudhola Link
Road, Village Dudhola, Tehsil Palwal,
District Faridabad, Haryana, Uttar Pradesh, India |
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Factory 3: |
Plot No. C-5, 6,
7 and 8, UPSIDC Industrial Area -1, Bazpur -262 123, District Udham Singh
Nagar, Uttaranchal, India |
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Spares & Product
Support Division : |
17 / Sector 11A,
Mathura Road, Faridabad, Haryana, Uttar Pradesh, India |
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Tel. No.: |
91-129-5087922 /
33 |
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Fax No.: |
91-129-5087924 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Vijay Agarwal |
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Designation : |
Chairman and
Managing Director |
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Address : |
854, Sector – 15
A, Faridabad, Haryana, India |
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Date of Birth/Age : |
13.01.1995 |
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Qualification : |
BE (Mechanical) |
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Experience : |
36 Years |
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Previous Employment : |
Business Head, Delhi Aotomobiles Limited |
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Date of
Appointment : |
13.01.1995 |
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Name : |
Ms. Mona Agarwal |
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Designation : |
Whole Time
Director |
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Address : |
854, Sector – 15
A, Faridabad, Haryana, India |
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Date of Birth/Age : |
13.01.1995 |
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Qualification : |
MBA Intermediate |
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Experience : |
13 Years |
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Date of
Appointment : |
13.01.1995 |
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Name : |
Mr. Vijay Kumar
Singh |
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Designation : |
Whole Time
Director |
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Address : |
854, Sector – 15
A, Faridabad, Haryana, India |
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Date of Birth/Age : |
14.11.1997 |
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Name : |
Mr. Sorab Agarwal |
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Designation : |
Whole Time
Director |
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Address : |
House No. 854, Sector
– 15A, Faridabad – 121007, Haryana, India |
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Date of Birth/Age : |
31 Years |
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Qualification : |
BE (Mech. Engg) |
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Experience : |
10 Years |
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Date of Appointment : |
27.02.1997 |
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Name : |
Mr. Subhash
Chander Verma |
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Designation : |
Non Executive
Director |
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Address : |
House No. 34,
Greater Kailash – I, New Delhi – 110048, India |
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Name : |
Mr. Keshav
Chandra Agarwal |
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Designation : |
Director |
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Address : |
House No. 350,
Sector – 29, Noida – 201303, Uttar Pradesh, India |
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Name : |
Mr. Girish Narian
Mehra |
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Designation : |
Non Executive
Director |
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Name : |
Dr. Amar Singhal |
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Designation : |
Non Executive
Director |
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Name : |
Dr. K C Agarwal |
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Designation : |
Non Executive
Director |
KEY EXECUTIVES
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Name : |
Mr. P K Bansal |
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Designation : |
Chief Finance officer |
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Name : |
Mr. Rishi Mathur |
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Designation : |
Company Secretary |
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Name : |
Mr. Ashish K Bhatt |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on
31.03.2008)
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Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoters and Promoter
Group |
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Individuals /
Hindu Undivided Family |
58564250 |
65.15% |
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Public Shareholding |
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Institutions |
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Mutual Funds /
UTI |
13894885 |
15.46% |
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Foreign
Institutional Investors |
5124683 |
5.70% |
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Non Institutions |
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Bodies Corporate |
5851271 |
6.51% |
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Individuals |
6202244 |
6.90% |
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Non Residents
Indian |
181301 |
0.20% |
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Trust |
250 |
0.00% |
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Clearing Members |
66116 |
0.07% |
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Total |
89885000 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
Hydraulic Mobile Cranes, Earthmoving and Construction Equipment. |
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Products : |
·
Hydraulic Mobile Pick-n-Move Cranes ·
Forklift Truck ·
Loaders ·
Tower cranes ·
Aerial Work Platforms ·
Mast Climbing Platforms / Lifts ·
Lorry Loaders / Truck Mounted Cranes |
PRODUCTION STATUS (As on 31.03.2007)
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Particulars |
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Unit |
Actual
Production |
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Cranes |
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Nos. |
2310 |
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Construction / Earth Moving Equipment |
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Nos. |
132 |
GENERAL
INFORMATION
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Customers : |
Government Clients : ·
Central Coalfields Limited,
Ranchi ·
Western Coalfields Limited,
Nagpur ·
South Eastern Coalfields
Limited, Bilaspur ·
Northern Coalfields Limited,
Singrauli ·
S.C.C.L., Kothagudem Colleries
·
Punjab State Electricity
Board, Ropar ·
Punjab State Electricity
Board, Patiala ·
Rajasthan State Electricity
Board, Jaipur ·
C.P.R.I., Bhopal ·
COFMOW, New Delhi ·
Ordnance Factory, Ambernath ·
NHPC, Faridabad ·
Chennai Port Trust, Chennai ·
South Eastern Railway,
Bhubaneshwar ·
Southern Railway, Chennai ·
U.P. State Bridge Corporation
Limited, Lucknow Private Clients : ·
Reliance Industries Limited,
Mumbai ·
Punj Lloyd Limited, New Delhi ·
ACC Limited, Madhya Pradesh ·
Cimmco Birla Limited ·
Shapoorji Pallonji Company
Limited, Mumbai ·
Oswal Chemical Fertilizers
Limited, New Delhi ·
Gannon Dunkerley and Company
Limited, Kolkata ·
KEC International Limited,
Jaipur ·
Gammon India Limited, Mumbai ·
PSL Holdings, Mumbai ·
SAE (India) Limited, New Delhi
·
Prakash Industries, New Delhi ·
Petron Civil Engineering
Limited, Mumbai ·
Petron Engineering
Construction Limited, Mumbai ·
Indure Limited, New Delhi ·
Dodsal Limited, Mumbai ·
Jyoti Structures Limited,
Nasik
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Suppliers: |
· A.M. Industries · Asian Polymers · B.R. Industries · Bajrang Paints · Belmont Rubber Industries · Carrier Wheels · Century Crane Engineers (P) Limited · Commercial Auto Products · Jagtar Singh and Sons (India) · K.M.P Aqua Pumps Private . Limited · Kamlesh Automobile and Steel Fab. · Machine India Company . · Mecmad Engineering Works · Nissim India Private . Limited . · Nu-Tech Enterprises · Om Shakti Hydraulics Private Limited · Osho Tools Private Limited · Polar Auto and Engg. Ind. P. Limited · R.K. Foundry and Engg. Company . · D.P. Auto Industries · Delite Auto Products · Dhiman Industries · Elite Steels Private Limited · Engineers and Electroplate · Gill International Limited · Hi-Lux Automotive (P) Limited · Him Tekno Forge Limited . · R.R. Engineers and Fabricators · R.V. Engineering · Raj Steel Rolling Mills · Sankalp Mechanical Works · Saraswati Udyog · Sokhi Heli-Wom Gears Private Limited · Spica Engineering Company · Three Star Gases Private Limited · UniCompany Engineering Works · Vintage Switchgear |
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No. of Employees : |
393 |
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Bankers : |
· Punjab National Bank 46 – Dohil Chamber, Nehru Place, New Delhi – 110019 · ICICI Bank Limited NBCC Place, Bhishma Pitamah Marg, Pragati Vihar, New Delhi – 110003, India E-mail : appl.helpdesk@mca.gov.in · Citi Bank N.A. · The Hong Kong and Shanghai Banking Corporation Limited |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Rajan Chhabra and
Company Chartered Accountants, 32A, Sector – 11
E, Faridabad – 121006, Haryana, India |
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Tel. No.: |
91-129-2224557 /
5008089 |
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Mobile No.: |
91-9811058089 |
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Associates/Subsidiaries : |
· ACE Steelfab Private Limited · ACE Cranes · ACE TC Rentals Private Limited · Frested Limited, Cyprus · SC Forma SA, Romania |
CAPITAL STRUCTURE
(As on 31.03.2008)
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.2/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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89885000 |
Equity Shares |
Rs.2/- each |
Rs.179.770 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
179.770 |
179.770 |
133.770 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1204.425 |
925.733 |
275.445 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1384.195 |
1105.503 |
409.215 |
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LOAN FUNDS |
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1] Secured Loans |
104.494 |
80.636 |
15.087 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
104.494 |
80.636 |
15.087 |
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DEFERRED TAX LIABILITIES |
9.979 |
3.051 |
(0.188) |
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TOTAL |
1498.668 |
1189.190 |
424.114 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
631.747 |
281.362 |
124.568 |
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Capital work-in-progress |
40.695 |
5.326 |
2.379 |
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INVESTMENT |
4.190 |
0.108 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
335.030 |
250.112 |
122.918 |
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Sundry Debtors |
526.801 |
392.580 |
210.563 |
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Cash & Bank Balances |
207.581 |
398.426 |
66.624 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
695.420 |
511.803 |
177.234 |
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Total Current Assets |
1764.832 |
1552.921 |
577.339 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
666.988 |
439.731 |
187.396 |
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Provisions |
276.720 |
210.796 |
96.105 |
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Total Current Liabilities |
943.708 |
650.527 |
283.501 |
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Net Current Assets |
821.124 |
902.394 |
293.838 |
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MISCELLANEOUS EXPENSES |
0.912 |
0.000 |
3.329 |
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TOTAL |
1498.668 |
1189.190 |
424.114 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
4011.620 |
2452.735 |
1656.756 |
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Other Income |
106.386 |
37.862 |
3.136 |
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Total Income |
4118.006 |
2490.597 |
1659.892 |
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Profit/(Loss)
Before Tax |
456.706 |
281.019 |
198.522 |
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Provision for
Taxation |
93.886 |
81.705 |
71.600 |
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Profit/(Loss)
After Tax |
362.820 |
199.314 |
126.922 |
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Export Value |
97.000 |
46.218 |
42.857 |
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Import Value |
NA |
258.436 |
62.468 |
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Expenditures : |
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Manufacturing
Expenses |
207.846 |
126.196 |
74.363 |
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Administrative
Expenses |
84.266 |
52.945 |
30.428 |
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Raw Material
Consumed |
3059.240 |
1860.841 |
1237.754 |
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Selling and
Distributions Expenses |
128.729 |
89.442 |
61.292 |
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Salaries, Wages,
Bonus, etc. |
136.831 |
62.914 |
48.959 |
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Interest |
12.495 |
4.368 |
1.424 |
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Depreciation
& Amortization |
31.893 |
12.872 |
7.150 |
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Total
Expenditure |
3661.300 |
2209.578 |
1461.370 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
|
Type |
1st
Quarter |
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Sales
Turnover |
1372.900 |
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Other
Income |
50.900 |
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Total
Income |
1423.800 |
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Total
Expenditure |
1253.700 |
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Operating
Profit |
170.100 |
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Interest |
1.800 |
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Gross
Profit |
168.300 |
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Depreciation |
12.000 |
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Tax |
33.600 |
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Reported
PAT |
122.700 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
0.08 |
0.06 |
0.08 |
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Long Term Debt-Equity Ratio |
0.00 |
0.01 |
0.02 |
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Current Ratio |
1.86 |
2.08 |
1.76 |
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TURNOVER
RATIOS |
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Fixed Assets |
8.66 |
12 |
19.92 |
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Inventory |
14.65 |
14.25 |
19.76 |
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Debtors |
9.32 |
8.81 |
11.24 |
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Interest Cover Ratio |
26.5 |
36.11 |
53.21 |
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Operating Profit Margin(%) |
11.81 |
11.35 |
11.23 |
|
Profit Before Interest And Tax
Margin(%) |
11.07 |
10.87 |
10.85 |
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Cash Profit Margin(%) |
9.21 |
7.98 |
7.19 |
|
Adjusted Net Profit Margin(%) |
8.47 |
7.5 |
6.81 |
|
Return On Capital Employed(%) |
35.87 |
36.61 |
77.13 |
|
Return On Net Worth(%) |
29.49 |
26.83 |
52.14 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was initially promoted by Mr. Vijay Agarwal, Mrs.
Mona Agarwal, Mr. Khem Karan Arora and Mrs. Laj Arora as subscribers to the
Memorandum. Subsequently, Mr. Khem Karan Arora and Mrs. Laj Arora ceased to be the
members of the Company and the shares were transferred to the current promoters
of the Company. The Company commenced its activities in the year 1995 and
started manufacturing Hydraulic Mobile Cranes in 1995 under the brand name
'ACE'. Apart from the company has started manufacturing of mobile tower cranes
and loaders subsequently. Subject is the leading mobile Crane Manufacturing
Company in India that has progressed all along to become a professionally
managed ISO 9001 Certified company.
The Company's manufacturing facility is based in Industrial town of Faridabad
and now the company is in the process of setting up of its second manufacturing
plant at Dudhaula (Faridabad) for manufacturing Back Hoe Loaders and Fixed
Tower cranes up to capacity of six tons.
Subject equipment is being successfully used in many industrial sectors like
infrastructure, construction, road, engineering industry, coal mines, chemical
and fertilizer plants, power stations, ports, railways, oil Industry, defence
etc.
During the year 1995-96, the Company has manufactured 110 mobile cranes and for
the year 2004-05, the company has manufactured 1146 equipment.
In September 2006, The company is entering the capital market with an initial
public offer of 46,00,000 Equity Shares of Rs.10/-. The company has fixed the
price of Rs.130/- per Share.
FINANCIAL
PERFORMANCE
The Company has recorded a significant growth in
performance. Total Income grew to Rs.4285.600 milions from Rs. 2658.3 millions,
registering a impressive growth of 61%. The Company's net profit after tax has
increased from Rs. 199.300 millions to Rs. 362.800 millions, an increase of 82%
from the last year.
DIVIDEND
The Board of Directors of the Company had earlier approved payment of an
interim dividend (@ Rs. 2 per equity share of Rs. 10 each, for the year
2007-08, which has been paid to the members of the Company.
Directors are now privileged to recommend, subject to your approval, payment of
final dividend of 40 paisa per equity share of Rs. 2/- each for the year
2007-08. With this, the total dividend payment for the fiscal 2007-O8 stands at
40% of the paid up equity capital, an increase of 33% over the previous
year.
CORPORATE PLAN
During the last few years, the kinetics of construction equipment business have
been influenced by several change factors such as burgeoning demand-supply gap,
increase in number of competitors, rapid growth of infrastructure companies,
inflation and other factors. Thus, a need was felt to re-visit the long term
corporate strategy.
The Company has formulated a long term corporate strategy plan, which is in
line with the corporate vision and mission statement. The Corporate plan aims
at creating a robust and growth-oriented portfolio that would maximize return
to the stakeholders.
Broadly, the revised Corporate Strategy of the Company has identified the
following key growth drivers:-
·
Protecting and strengthening, the business of Hydraulic
cranes, which is a major revenue generator.
·
Increasing the production and acquiring expertise in other
forms of construction equipment.
·
To produce every type of construction equipment so as to
become complete solution provider for any infrastructure company.
·
Increase in marketing and production of tractors making it a
key revenue generator for the company in the years to come.
·
Exploring foreign markets for the products of the
Company.
CHANGE IN SHARE CAPITAL
During the year, the Company sub-divided its share from face value of Rs.10/-
per share to Rs. 2/- per share. As a result number of Shares increased from
17977000 Equity Shares of Rs.10/- each to 89885000 Equity shares of Rs. 2/-
each.
MARKETING
AND SCALING UP OVERSEAS BUSINESS:
The Indian economy is in a take off phase and has developed necessary strengths
to achieve the target of being a developed nation by the year 2020.
In April 2007, the Company participated in the world's biggest exhibition for
construction equipment - BAUMA 2007 in Munich-Germany, which was visited by
more than 500,000 delegates from all over the world. The Company has become the
first Company in India, to showcase all its equipment in this exhibition. The
Company got a tremendous response from potential customers and international
dealers.
The Company plans to expand its overseas markets. It is looking at Middle East,
Asia, Africa and Eastern Europe for its products.
With a view to enhance shareholder value, the Company continues to focus on
expanding its customer base through cost reduction, increased efficiency and technology
upgradation.
The Company's confidence in building a positive future for itself stems from
the continued and dedicated focus of its management team to maximise customer
satisfaction, growth in revenue, increased market penetration and addition to
the product portfolio. With a large well spread network of 5 Regional Offices
and 60 Sales and Services Centers and dedicated Spare Parts Division along with
a range of products in its basket, the Company is well equipped to provide the
best products and parts, support and services to its increasing number of
customers. In this year, the company has introduced new products like piling
rigs, crawler cranes and concrete pumps and for next year, company is planning
to introduce Road making equipment and to make further addition to it's
concrete equipment range.
The Company is looking for expansion in foreign countries also. The Company
through its representatives is regularly making visits to foreign countries for
any good possibility of acquisitions and joint ventures. Beside Cyprus and
Romania, where the Company has already formed its subsidiaries, the Company is
also looking at other viable and conducive locations.
On the domestic front, the Company is one of the major Equipment suppliers. The
Company supplies equipment to very big groups such as Reliance, L and T
Simplex, Essar, NCC, IVRCL, Punj Lloyd, BHEL, Gammon etc., who have, through
regular use of the companies products formed a great faith on the Company's
products. The company intends to become 'a one stop shop' for all
infrastructure construction related equipment in the next 3 years.
SUBSIDIARY COMPANIES:
As mentioned earlier, the Company has incorporated a wholly owned overseas
subsidiary (WOS) Company at Cyprus viz M/s FRESTED LIMITED, and through it, the
Company has acquired 89.5% equity stake in a Romanian Company viz. SC FORMA SA,
Romania, which has become fellow subsidiary of the Company.
Ministry of Company Affairs, Government of India, vide its letter No.
47/309/2008 CL-III dated May 22, 2008 has exempted the Company from attaching
the Annual Report and other particulars of its subsidiary companies along with
the Annual Report of the Company u/s 212 of the Companies Act, 1956, therefore,
the said Reports of the subsidiary companies viz. (1) FRESTED Limited, Cyprus,
(2) SC FORMA SA, Romania are not attached herewith. However, a statement giving
certain information as required vide exemption letter No. 47/309/2008 CL-III
dated May 22, 2008 is placed along with the Consolidated Accounts.
The Annual Accounts of the subsidiary companies and the related detailed
information will be made available to the members of the holding and subsidiary
Company seeking such information at any point of time. The Annual Accounts of
the subsidiary companies will also be kept for inspection by any investor at
its Registered Office.
QUALITY CERTIFICATION
The Company has got CE Certification for most of its manufactured products.
After getting this Certification, products of the Company are well accepted in
the International Market. The Company is already ISO 9001 certified Company by
CVI (Conformity Verification International), which is internationally
recognized for the production, quality control and other qualities. This
ensures that its standards of design, development, procurement, manufacturing,
testing, installation and product support meet the most stringent norms. The
ISO Certification gives international recognisation and helps the Company, to
boost its export turnover.
AWARDS
And ACCOLADES:
During the year, the Company has once again been conferred upon with
CONSTRUCTION WORLD NICMAR AWARD (2007), as the fastest growing construction
equipment company, second year in succession.
MANAGEMENT
DISCUSSION AND ANALYSIS
The Company is a sound believer of the philosophy that nothing can beat a good
product, supported by dedicated and hard-working professionals. The Company's
Logo - 'NOTHING BEATS AN ACE speaks volume. The Company has continued with its
run of good performance carried on from past financial years. Sales of the
company, increased tremendously from a net turnover of Rs. 2452.700 millions in
FY 2006-2007, to a net turnover of Rs. 4011.600 millions in FY 2007-2008,
registering a impressive growth of 63% and CAGR of 64% in last 5 years.
The Company results for the financial year 2007-2008, which are summarized as
under:
1. Increase in net turnover from Rs. 2452.700 millions to Rs. 4011.600
millions, registering an increase of 63%.
2. Profit before Tax (PBT) increased by 63% from Rs.
281.000 millions to Rs. 456.700 millions.
3. Profit after Tax (PAT) increased by 82% from Rs.
199.300 millions to Rs. 362.800 millions.
4. Earning per Share (weighed) has increased by 60%
from Rs. 2.52 to Rs.4.04 per Share.
Overall performance of the company in the financial year is more than
satisfactory. The company has also entered new business of Tractors. Further,
the latest product offerings of Truck Mounted Cranes, Concrete Pumps, Piling
Rigs and Crawler Cranes have been very well accepted in the market and they
expect to capitalize the potential of these machines in the years to
come.
Review of the performance of the Company's business operations, initiatives
taken by the Company and its overall financial performance in 2007-2008, are as
under.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company is leading Mobile Cranes, Tower Cranes and other construction
equipment manufacturer with a major market share in these products. The company
has taken several initiatives to steer through the competitive situation in
future and to retain its position in the business.
The Company designs, manufactures, sells and provides product support of the
following equipment:-
·
Hydraulic Mobile Cranes
·
Mobile Tower Cranes
·
Fixed Tower Cranes
·
Back Hoe and Wheeled Loaders
·
Lorry Loaders
·
Fork-lift Trucks
·
Crawler Cranes
·
Piling Rigs
·
Concrete Pumps
·
Tractors
HYDRAULIC
MOBILE CRANES
Hydraulic Mobile Cranes are widely used throughout Engineering, Construction
and Infrastructure industry. These machines are rough terrain, pick and carry
type, used for loading, unloading, moving, shifting and erecting material. The
Company currently manufactures these cranes of 3 tons to 18 tons capacity. The
Company is trying to further strengthen its position in this segment. The
demand for this product will continue to increase in the coming years as India
is on the verge of witnessing major developments in infrastructure
segment.
MOBILE/FIXED TOWER CRANES:
Tower Cranes are basically used for civil construction. Mobile Tower Crane are
self-erecting /self-folding machines. These have provisions for built-in
generators to provide electricity needed to operate the machines. The Company
currently manufactures Mobile Tower Cranes, which can work, from 6 to 12
storeyed building Fixed Tower Crane is also used in civil construction, but
they are larger. These Cranes have maximum lifting height of 240 meters and a
working radius of 70 meters. With the rise in construction of multi-storied
buildings, demand for these equipments will be northbound in the years to
come.
BACK HOME AND WHEELED LOADERS:
Back Hoe Loaders are used in the construction and infrastructure sector for
digging, moving, grading and loading earth and other loose aggregates. The
Company is also in the business of Wheeled Loaders.
LORRY LOADER CRANES:
Currently, the Company imports these machines From PM. Italy and mounts them on
Indian truck chassis. These machines are widely used in Europe, America and
other developed countries. It can lift loads and transport it on its own
chassis, and used unload at the desired destination. These are available from 2
ton/meter to 80 ton/meter.
FORKLIFT TRUCKS
Forklift, is a powered industrial truck used to lift and transport material.
The Company started this product in previous year and has got overwhelming
response in the beginning itself. The Company is supplying both battery
operated and diesel operated Forklift Trucks with a lifting capacity of 1.5 ton
to 10 Ton. The sale of this equipment would rise in the coming future with the
increase in logistics and warehousing activities.
CRAWLER CRANES
Crawler Cranes are used on soft ground for plant erection and maintenance work
or plant renovation. Basically, Crawler Cranes are similar to hydraulic
excavators intraction and swing the load at 360 degree. The machine stability
is achieved by the tracks themselves. The basic advantages of the Crawler Crane
is, it is quick in operation on soft ground compared to other class of Cranes.
ACE is marketing Crawler Cranes from 50 Tons capacity onwards upto 600
Tons.
PILING RIGS
Piling Rigs recently have gained acceptance in Indian construction industry as
a must have equipment in construction of bridges, metro rails, ports. With
almost all the foundations now being compulsorily constructed with pilingrigs,
introduction of Piling Rigs in subject range of equipment will be of great
advantage. Tie up with Zoomlion ensures supply of quality machines at value for
money prices to our existing clients. Zoomlion also has a complete range of
models to cover all the strata, depths and diameters.
CONCRETE
PUMPS
Concrete pumps in the last five years have gained a firm foothold in
construction industry as the preferred method of concrete delivery. With the
advent of batching plant for concrete production and transit mixers for
concrete delivery, the pumps complete the end of chain by receiving and laying
the concrete. Zoomlion has a range of concrete pumps which are not only of
latest technology but also with proven performance. Being a short life product,
the replacement market also will keep the demand high in coming years.
TRACTORS
The company has started the production of Tractors this year. Tractors are
widely used for farming purpose as against the conventional methods. The
Company, in the financial year, has just started the production of Tractors.
Its sales in the coming financial year would definitely grow exponentially.
Tractors are also used for construction and industrial purposes, and subject
shall suitably capitalize its existing strength in these sectors.
MAIN FOCUS AREAS AND APPLICATIONS
Majority of the equipment is supplied for Infrastructure Development and today
Infrastructure is the buzzword for the growth of Indian Economy. The Company's
equipment is widely used in all major Infrastructure, Construction, Heavy
Engineering and Industrial Projects across the country. Due to the versatility
of the Company's equipment to satisfy a vast range of possible applications,
the same are being successfully used in many sectors like Infrastructure
construction, Power Projects, Ports and Shipyards, Dams, Metro Rail, Roads,
Coal Mines, Steel Industry, Engineering Industry, Railways, Cement, Petroleum,
Defence, Chemicals and Fertilizer Plants, Building Construction etc.
OPPORTUNITIES
·
The Company can exploit the foreign market, as the rate of
custom duty is decreasing in foreign countries to promote competition as per
WTO norms.
·
The Company can use its years of expertise to set-up
Subsidiaries in foreign countries engaged in the similar field of production.
Thus, the Company would be able to use its know-how for exploiting the foreign
markets.
·
The Company on the other hand can form Joint Ventures (JV)
outside the country to share its expertise, which it has already gained and in
return get share in profits from JV. The Company can also form Joint Ventures
in the country to counter competition and increase the market share.
·
The market for the construction equipment is rapidly
increasing due to rapid increase in development of infrastructure in the
country. The Company can turn it into its advantage by proper and timely
marketing techniques.
THREATS,
RISKS AND CONCERN:
·
The business of the Company primarily depends on proper
supply of the raw material especially steel. Any adverse effect on the supply
of the raw material, especially steel can hamper the production of the
cranes.
·
Increase in the No. of Competitors. As the Company's
business is growing, new competitors with similar products are coming into the
market. It could affect the company's share in the market.
·
Inflation can affect the pricing and thus sales of the
Company's Equipment.
·
Any adverse changes in Tax laws such as Income Tax Act,
Sales Tax Act, Value Added Act, Excise Act, Custom Act can have adverse effect
on the sales of the Company.
·
Threat from Imported Equipment can not be ignored as
government is in the process of decreasing Custom duty under WTO agreements,
bringing it to minimum level to promote competition.
INFORMATION
AND TECHNOLOGY:
The company believes in inflow, processing and outflow of data to be accurate,
efficient and adequate to help the company form well-informed and timely
decisions. The Company continues to invest highly in the IT infrastructure to
support business applications. The Company realizes that the data of the
company entered should flow in an accurate and smooth manner, thus making
available the right data at the right time. For this purpose, Company have
robust Private Network supplemented by high bandwidth to connect the remote
locations.
The Company believes that today in this world of IT and fast communication
world, a good and Robust IT infrastructure can give competitive advantage to
the company. The company is already in the process of implementing ORACLE APPS
ERP. Once implemented, this can be a good advantage to the company. The
implementation of this ERP is currently in final phase. This is also
accompanied by significant re-engineering and simplification of the business
process to improve quality and customer service at reduced costs.
DISCUSSION
ON THE RESULTS OF OPERATIONS
As evident from the above Financial Statement, the Company has shown a
consistent growth in its operations and profitability during the last five
years. From a turnover of Rs.343.800 millions in the financial year 2003-04, it
achieved a turnover of Rs. 4011.600 millions in the financial year 2007-08.
There has been a significant growth in turnover of the Company during the last
five years. CAGR of the company has been growing consistently with a rate of
64% in the last 5 years.
|
Contingent Liabilities |
31.03.2008 (In millions) |
|
|
|
|
Bank
Guarantees including Corporate Guarantees |
73.110 |
|
Letter
of Credits |
84.268 |
|
Claim
against the Company, not acknowledge as Debts |
5.342 |
|
Sales
Tax and Excise Matters, pending before Assessing / Appellate Authorities |
0.863 |
|
Total |
163.583 |
FIXED ASSETS
· Land
· Building – Factory
· Building – Office
· Plant and Machinery
· Furniture and Fixtures
· Office Equipment
· Motor Vehicles
· Computer
FORM 8:-
|
Corporation identity number or foreign company
registrations number of the company |
U74899DL1995PLC064347 |
|
Name of the company |
ACTION CONSTRUCTION EQUIPMENT PRIVATE LIMITED |
|
Address |
Plot No. 7,
Pocket II, Market Sarita Vihar, New Delhi – 110044 |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Hypothecation, equitable mortgage or
mortgage of property by depositing the title deeds and others |
|
Particular of the charge holder |
ICICI Bank Limited NBCC Place, Bhishma Pitamah Marg, Pragati
Vihar, New Delhi – 110003, India E-mail : appl.helpdesk@mca.gov.in |
|
Amount Secure by the charge |
Rs. 80.000 millions |
|
Date of instrument modifying the charge |
28.07.2006 |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
The above is to secure the following
facilities : Cash Credit [CC] Limit of Rs. 50 million Working Capital Demand Loan [WCDL]
[Sub-limit of CC Limit of Rs. 30 millions] Derivates [Sub-limit of CC Limit] of Rs.
1.20 million LC Limit of Rs. 30 millions BG Limit [Sub-limit of LC Limit] of Rs. 15
million |
|
Description of the property charge whether
it is a charge on |
Immovable Properties, Plant and Machinery, Furniture
and Fixtures, Stock in trade, Book debts, Vehicles and Others |
|
Modification charge Charge identification number of the charge
to be modified |
80002427 |
|
Brief description of the instrument
modifying the charge |
Letter ceding pari passu charge issued by
ICICI Bank dated 28.07.2006 |
|
Particulars of the Property charged |
Property situated at Jajru Road, 25th
Mile Stone, Mathura Road, Ballabgah, Haryana |
|
Particulars of present modification |
For mortgage and charge of ICICI shall in all
respects rank pari passu with the mortgage and charges of Citi Bank N.A. to
secure their working capital facilities of Rs. 120 millions |
|
Corporation identity number or foreign
company registrations number of the company
|
U74899DL1995PLC064347 |
|
Name of the company |
ACTION CONSTRUCTION EQUIPMENT PRIVATE LIMITED |
|
Address |
Plot No. 7,
Pocket II, Market Sarita Vihar, New Delhi – 110044 |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Hypothecation, equitable mortgage or
mortgage of property by depositing the title deeds and others |
|
Particular of the charge holder |
ICICI Bank Limited NBCC Place, Bhishma Pitamah Marg, Pragati
Vihar, New Delhi – 110003, India E-mail : appl.helpdesk@mca.gov.in |
|
Amount Secure by the charge |
Rs. 80.000 millions |
|
Date of instrument modifying the charge |
12.05.2006 |
|
Brief of the principal terms and conditions
and extent and operation of the charge |
The above is to secure the following
facilities : Cash Credit [CC] Limit of Rs. 50 million Working Capital Demand Loan [WCDL]
[Sub-limit of CC Limit of Rs. 30 millions] Derivates [Sub-limit of CC Limit] of Rs.
1.20 million LC Limit of Rs. 30 millions BG Limit [Sub-limit of LC Limit] of Rs. 15
million |
|
Description of the property charge whether
it is a charge on |
Immovable Properties, Plant and Machinery,
Furniture and Fixtures, Stock in trade, Book debts, Vehicles and Others |
|
Modification charge Charge identification number of the charge
to be modified |
80002427 |
|
Brief description of the instrument
modifying the charge |
Letter of amendments to master facility
agreement & master facility agreement dt. 12.05.2006 |
|
Particulars of the Property charged |
Property situated at Jajru Road, 25th
Mile Stone, Mathura Road, Ballabgah, Haryana |
|
Particulars of present modification |
Interest on cash credit limit has been
changed as following 3.25% below IBAR + CC Pemia at monthly rests subject to
a minimum of 10% p.a. The ICICI IBAR as on date is 12.75% p.a. and The CC
Premia as on |
WEBSITE DETAILS
The company is the leading mobile crane manufacturing company in India which has progressed all along to become a professionally managed ISO 9OOI Certified company. Subject is promoted by a technocrat, assisted by a team of experienced managers and engineers, managers and engineers.
Subject is a dynamic and powerful enterprise with it's full
fledged production facilities based in industrial township of Faridabad, which
is 45 Kms. from New Delhi, National Capital of India.
The company equipment is being successfully used in many
industrial sectors like infrastructure, construction, roads, engineering
industry, coal mines, chemical and fertilizer plants, power stations, ports,
heavy project engineering industry, railways, cement industry, oil industry,
defense etc. to name a few. Subject range of cranes can be adapted to satisfy a
vast range of possible applications due to their versatility.
In India subject has conquered a consolidated
presence in it's sector. An efficient sales and service network and a
comprehensive follow up system makes it possible to provide, all customers with
efficient distribution and service assistance that has the priority of
satisfying their real needs.
The policy of responding with speed and expertise has been
rewarded over the years by a constant growth of the company and today subject
is a leading manufacturer of cranes in the country.
Subject has always firmly believed in the quality of it's products and product support, ever since it's inception and this is the secret of the capacity to satisfy customers.
First rate team work and carefully targeted investment in technology and human resources has made subject one of the most efficient business in it's sector.
The company has it's central marketing office in New Delhi
and workforce employed in the sections of production, research and development,
materials, marketing, after sales assistance, finance and administration are
engaged to take the company to new horizons of success.
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.46.71 |
|
UK Pound |
1 |
Rs.85.12 |
|
Euro |
1 |
Rs.66.98 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|