MIRA
INFORM REPORT
|
Report Date : |
12.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
HONEYWELL AUTOMATION INDIA LIMITED |
|
|
|
|
Registered Office : |
56 and 57, Hadapsar Industrial Estate, Pune-411013, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
13.01.1984 |
|
|
|
|
Com. Reg. No.: |
017951 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L29299PN1984PLC017951 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PNET00043B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The company shares are listed on the Stock
Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer
of Control Solutions. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
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 17545932 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Directors are reported to be
experienced and respectable businessmen. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Chandrashekar |
|
Designation : |
Accounts |
|
Date : |
05.01.2011 |
LOCATIONS
|
Registered Office : |
56 and 57, Hadapsar Industrial Estate, Pune-411013, |
|
Tel. No.: |
91-20-66039400/ 26870445/26870446/26872170/ 26870153 |
|
Fax No.: |
91-20-66039800/ 26872205/26875957 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Located at: ·
·
·
Chennai ·
·
·
Kolkata ·
Mumbai ·
|
DIRECTORS
AS ON 31.12.2009
|
Name : |
Mr. Madhukar N Bhagwat |
|
Designation : |
Chairman and Independent Director |
|
|
|
|
Name : |
Mr. Shane S Tedjarati |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Norman L Gilsodorf |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gerard F Willis |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Surendra L Rao |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Anand Maheshwari |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Ms. Sneha Padve |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Ananthanaryanan K V |
|
Designation : |
Head Legal |
|
|
|
|
Name : |
Mr. Aparanji Harsh |
|
Designation : |
Head Human Resouces |
|
|
|
|
Name : |
Mr. Bagitkar Ravi |
|
Designation : |
Head Business Process Excellence |
|
|
|
|
Name : |
Mr. Bhargava Ajay |
|
Designation : |
Head Integrated Supply Chain |
|
|
|
|
Name : |
Mr. Kelkar Anant |
|
Designation : |
Head Information Technology |
|
|
|
|
Name : |
Ms. Snehal Nemade |
|
Designation : |
Head Audit and Internal Controls |
|
|
|
|
Name : |
Mr. Atul Pai |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Honeywell Process Solutions: |
·
Mr. Abraham T Joy ·
Mr. Biswas Amitava ·
Mr. Hemant Joshi ·
Mr. Salil Kumar ·
Mr. Dharmesh Shah |
|
|
|
|
|
·
Mr. Girish Dharachar ·
Mr. Milind Godbole ·
Mr. Vasudeva Rao |
|
|
|
|
Environment and Combustion Controls: |
Mr. Ninad Pradhan |
|
|
|
|
Sensing and Controls: |
Mr. Sachin Pradhan |
|
|
|
|
Export Business: |
·
Mr. Vivek Bhatia ·
Mr. Rohit Mirakhur ·
Mr. Jagdish Naik ·
·
Mr. Savyasachi Tumukur |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2009
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
|
|
|
|
2) Foreign |
|
|
|
a) Bodies corporate |
7182475 |
81.24 |
|
|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
a) Mutual Funds |
392373 |
4.44 |
|
b) Financial Institutions/Banks |
190 |
-- |
|
c) Central Government / State Government (s) |
285 |
-- |
|
d) Foreign Institutional Investors |
17131 |
0.19 |
|
|
|
|
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
183937 |
2.08 |
|
|
|
|
|
b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
985404 |
11.15 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
79414 |
0.90 |
|
|
|
|
|
c) Any other |
|
|
|
i) Trust |
314 |
-- |
|
|
|
|
|
Total |
8841523 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Control Solutions. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Brand Names : |
“TDC 3000” |
||||||||
|
|
|
||||||||
|
Terms : |
|
||||||||
|
Selling : |
L/C, Cash,
Credit |
||||||||
|
|
|
||||||||
|
Purchasing : |
Cash, Credit |
PRODUCTION STATUS AS ON 31.12.2009
|
Particulars |
Unit |
|
|
Actual
Production |
|
Systems |
Nos |
|
|
97 |
|
Transmitters |
Nos. |
|
|
8689 |
GENERAL INFORMATION
|
Customers : |
OEM’s |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
No. of Employees : |
1000 (In office
300 + In factory 700) |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
·
ABN –Amro Bank N.V ·
Citibank N.A ·
Canara Bank ·
Bank of ·
State Bank of Travancor ·
HDFC Bank Limited ·
ICICI Bank Limited |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and company Chartered Accountant |
|
|
|
|
Ultimate Holding Company : |
Honeywell International Inc. |
|
|
|
|
Holding Company : |
Honeywell Aisa- Pacific Inc. |
|
|
|
|
Fellow Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.12.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs.100.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8841697 |
Equity Shares |
Rs. 10/- each |
Rs.88.417 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8841523 |
Equity Shares |
Rs. 10/- each |
Rs.88.415 Millions |
|
|
|
|
|
Note:
7182475 Equity Shares constituting 81.24% of
the paid-up capital of the company are held by Hoenywell International Inc. the
ultimate holding company, through its 100% subsidiary, Honeywell Asia Pacific
Inc.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
88.415 |
88.415 |
88.415 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4298.068 |
3073.585 |
2255.080 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4386.483 |
3162.000 |
2343.495 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1.248 |
23.659 |
19.670 |
|
|
2] Unsecured Loans |
0.000 |
95.999 |
108.283 |
|
|
TOTAL BORROWING |
1.248 |
119.658 |
127.953 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4387.731 |
3281.658 |
2471.448 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
717.714 |
552.680 |
341.559 |
|
|
Capital work-in-progress |
35.212 |
149.943 |
267.264 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
281.854 |
197.600 |
157.175 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
805.465 |
671.288 |
354.749 |
|
|
Sundry Debtors |
2891.700 |
3548.834 |
2280.954 |
|
|
Cash & Bank Balances |
1061.507 |
73.336 |
721.850 |
|
|
Other Current Assets |
0.000 |
194.692 |
538.505 |
|
|
Loans & Advances |
1621.298 |
960.880 |
691.904 |
|
Total
Current Assets |
6379.970 |
5449.030 |
4587.962 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2195.020 |
2597.662 |
1912.527 |
|
|
Other Current Liabilities |
355.860 |
126.570 |
587.702 |
|
|
Provisions |
476.139 |
343.363 |
382.283 |
|
Total
Current Liabilities |
3027.019 |
3067.595 |
2882.512 |
|
|
Net Current Assets |
3352.951 |
2381.435 |
1705.450 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4387.731 |
3281.658 |
2471.448 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11745.670 |
10015.280 |
8683.064 |
|
|
|
Other Income |
68.055 |
118.243 |
34.733 |
|
|
|
TOTAL (A) |
11813.725 |
10133.523 |
8717.797 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material and Manufacturing Expenses |
6217.129 |
5457.691 |
5193.569 |
|
|
|
Employees' Remuneration and Benefits |
1957.355 |
1683.944 |
1388.372 |
|
|
|
Selling, Administrative and Other Expenses |
1694.612 |
1722.817 |
1089.141 |
|
|
|
TOTAL (B) |
9869.096 |
8864.452 |
7671.082 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1944.629 |
1269.071 |
1046.715 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6.136 |
7.237 |
20.712 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1938.493 |
1261.834 |
1026.003 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
118.627 |
85.177 |
141.358 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1819.866 |
1176.657 |
884.645 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
491.942 |
358.152 |
233.772 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1327.924 |
818.505 |
650.873 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1999.119 |
1180.614 |
735.808 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
132.792 |
0.000 |
100.000 |
|
|
|
Dividend Distribution Tax |
15.026 |
0.000 |
17.652 |
|
|
|
Proposed Dividend |
88.415 |
0.000 |
88.415 |
|
|
BALANCE CARRIED
TO THE B/S |
3090.810 |
1999.119 |
1180.614 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1551.131 |
1590.272 |
485.500 |
|
|
|
Services |
3383.190 |
2236.881 |
1352.412 |
|
|
|
Reimbursements |
432.032 |
395.963 |
383.532 |
|
|
TOTAL EARNINGS |
5366.353 |
4223.116 |
2221.444 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
45.996 |
12.359 |
18.562 |
|
|
|
Raw Materials |
3434.915 |
2775.217 |
2819.425 |
|
|
TOTAL IMPORTS |
3480.911 |
2787.576 |
2837.987 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
150.19 |
92.58 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.20010 |
30.06.2010 |
30.09.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
2788.100 |
3359.300 |
3648.900 |
|
Total Expenditure |
2376.100 |
3107.600 |
3327.300 |
|
PBIDT (Excl
OI) |
412.000 |
251.700 |
321.600 |
|
Other Income |
15.900 |
20.300 |
22.300 |
|
Operating
Profit |
427.900 |
272.000 |
343.900 |
|
Interest |
1.100 |
0.200 |
0.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
426.800 |
271.800 |
343.900 |
|
Depreciation |
30.300 |
30.700 |
31.600 |
|
Profit
Before Tax |
396.500 |
241.100 |
312.300 |
|
Tax |
89.600 |
13.300 |
53.500 |
|
Reported PAT |
306.900 |
227.800 |
258.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
306.900 |
227.800 |
258.800 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
11.24 |
8.40 |
7.47 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.49 |
12.22 |
10.19 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.64 |
19.61 |
17.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.41 |
0.37 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.69 |
1.01 |
1.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.11 |
1.78 |
1.59 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject is a market leader in Electronics-Instrumentation and Process
Control equipment industry. Subject is leading provider of Integrated automation
and software solution that improves productivity enhancing comfort and ensuring
the safety and security to homes and business premises. The company's main
products are distributed control systems, building control systems and smart
transmitters. Subject incorporated in January 1984 as Tata Process Controls
Private Limited in
OPERATIONS:
The Management Discussion and Analysis Report annexed herewith provides full details of operational performance and business analysis of these business units.
- Honeywell Process Solutions (HPS) – Serves core industrial sectors of Refining, Oil and Gas, Pulp and Paper, Metal and Cement etc.
- Environment and Combustion Control (ECC) – Through multi channels and multiple brands, offers environmental and combustion products and solutions to commercial, hospitality and industrial segments.
- Sensing and Control (SandC) – Products business provides various sensors and switches to manufacturing and automobile industry. This business serves primarily OEMs in various manufacturing industries such as auto, medical instrumentation, IT, etc.
- Exports Business Group (EBG) – Addresses manufacturing and engineering services needs of Honeywell along with some other non Honeywell customers across the globe, leveraging the cost, skills and knowledge arbitrage.
COMMUNITY DEVELOPMENT
WORK:
HAIL embarked upon the journey to bring a small difference
to society by focusing on – Health, Education and Environment through its club
named Disha, which is an employee engagement program. HAIL initiated
contributions from the employees through payroll and this funding has given way
to various CSR projects undertaken this year.
HAIL has continued to sponsor 50 children from
HAIL has sponsored the construction of a new site Astitva
Pratishthan, which is a
INDUSTRY OUTLOOK AND
OPPORTUNITIES
Honeywell Automation India Limited (HAIL) operating results are driven by Industrial production, Capital Spending on Process and Building Automation, Commercial and Infrastructure Construction, Commodity and Foreign Exchange variations, Environment, Security and Safety concerns and regulations. Some of the important market conditions were :
- Tailwinds in exports volume from Honeywell and Non Honeywell customers due to favourable order mix and further compelling needs to leverage emerging regions for delivery of global projects.
- Continued Government spending on key infrastructure projects like Roads, Airports, Mass Transit systems, Energy Conservation initiatives and Electronic Security spending helping volume growth opportunities in Buildings Segment.
- Investment upcycle in Power, Transmission and distribution, Oil Exploration projects off set headwinds due to delayed decisions in Oil Marketing and distribution investments and private investments in Chemicals, Paper and other Small and Medium Enterprises (SME) process Industries.
- Firming demand in last quarter of 2009 in Automobile segment, Tier 2 and 3 cities in Construction segment and some improvement in Credit availability to SME are reversing trends of volume shrinkage which persisted through most of 2009.
Honeywell Process
Solutions (HPS):
Solutions offered include Field Instruments, PLC’s, Distributed Control Systems, Emergency Shut down Systems (ESD), Quality Controls Systems (QCS), Advanced Software Solutions and various value added services. Overall the business performed very well in 2009 and won several new contracts from customers across various vertical markets that the Company addresses.
Process Solutions offers its Solutions and Products in 4 modes .Each of the mode i.e New Construction, Advance Solutions, Life Cycle Services (LCS) and Field Solutions did very well and order booking in 2009 grew substantially over 2008.
The major wins included two large Power Projects from NTPC
in addition to large orders from Essar, Tata Steel, Reliance Power, General
Electric, Reliance Industries, RCF, etc
to name a few of their esteemed customers. The business won many
Operator Training Simulator projects in Power and Refinery segments and has
established its leadership position in advance applications within Industrial
customers. Honeywell Field Instruments (HFS) won few large projects and
launched wireless Products in
2010 will be a challenging year for HPS due to increased competition in the market. However, given the vast diversity of Products and Solutions portfolio and market reach, they will strive to sustain their good performance of 2009 in 2010 as well. They shall rely heavily on continuous investments made in their country in Refining, Power and Gas sectors. The Company has a strong position in each of these Industries and with the available opportunities; they expect to win a fair share of the demand.
HPS has also launched Industrial Security and Energy Management portfolio in 2009. Renewed higher threat perception and focus of energy conservation will lead to growth potential in these applications and the Company has a strong Product/Solution portfolio.
HPS globally continues to invest in technology even in recession time and these continued investments in new Products will help HPS to make its competitive position much stronger in 2010
HBS provides intelligent buildings that are operationally and energy efficient. As part of its intelligent buildings suite, HBS provides Building Management Systems (HVAC, Lighting and Utilities Monitoring and Control), Fire Detection and Alarm Systems, Access Control Systems, Video Surveillance Systems, Integrated Security Systems and Integrated Building Management Systems leveraging Honeywell’s Enterprise Buildings Integrator ™ or EBI. As part of its operational efficiency promise, HBS provides After Market Services for all Control Systems as well as comprehensive Utilities Operations and Maintenance Services for all Mechanical and Electrical Systems in a building and as part of its energy efficiency promise, HBS provides Energy Management Services, Energy Retrofits and Energy Performance Contracts.
This business performed well in 2009 and won several contracts in each of the three focus areas. In the intelligent buildings space the Company won several major project wins such as ICICI Bank, Delhi Metro, HCL Technologies, Tata Consultancy Services, Bharti Airtel and many others. In the area of operational efficiency the Company won major After Market Services Contracts from ICICI Bank, TCS, TTSL and Hyderabad Airport, to name a few and Utilities Operations and Maintenance Contracts from Bharti Airtel. Finally in the area of Energy Efficiency the Company won major Energy Contracts from the Renaissance (leveraging the Clinton Climate Initiative), Titan, Thermax, Rahejas, TATA Steel and SKF.
With a credible track record, an ability to innovate and solid systems and processes for execution and Life Cycle Management, this business is poised for sustained profitable growth in 2010.
Environment and Combustion
Control (ECC):
ECC witnessed a flat year in a challenging environment with the continued effect of soft economy in Real Estate and Commercial Construction. The Building Management System (BMS) business, though adversely affected by decrease in number of projects in market, was successful in winning major orders from ITC Grand Chola, Marriot and some orders for stadiums built for the Commonwealth Games 2010. The Industrial Combustion Control business saw some positive trends with revival of industrial demand in the last quarter. Solar water heater launched in early in 2009 registered good business from residential sales and is expected to show strong growth in 2010 driven by rising energy cost and implementation of Government policies in leveraging Renewable Energy Solutions.
Revival of Construction and Real Estate Segment would drive growth of the diversified product portfolio for the business in 2010.
Sensing and Control
(SandC):
Sensing and Control (SandC) – Sensing and Control improved business performance over 2008 inspite of very low demand in the Transportation segment and reduced OEM off-take by improving the business mix and reduced dependence on the Automotive segment. The expanded Test and Measurement line of business has contributed substantially to the growth with focused penetration in Military and Aeronautical industries, Educational and Research Institutions.
To improve market penetration and enhance customer contact, Sensing and Control has re-aligned the sales and marketing teams in key verticals viz. Industrial, Military/Aeronautical and Transportation and this is providing the desires results. The business is also investing to increase its local manufacturing.
Firming demand in automobile segments and diversification in other verticals and applications will help the business to pursue growth in 2010.
Exports Business
Group (EBG):
EBG business offers product manufacturing, solutions and services to overseas requirements of Honeywell and other customers continues to show strong growth due to increased flow of work from Honeywell which is further helped substantially by favourable exchange rate. The Engineering Services business exports, which are part of total exports, grew by 30% in 2009. The expansion was driven by project execution upcycle of large global projects in the backlog. Honeywell Operating System (HOS) represents holistic approach to operational excellence and the business continued to drive Cost and Engineering Productivity under this framework. Service expansion to other Honeywell Companies has diversified the business. This has also resulted in skill expansion within the team and multi-tasking. Knowledge Management is a focus area. An initiative towards increased product ownership for global support has resulted in transfer of engineering skills to HAIL. Product Localization and Value Engineering aimed at optimizing product cost has been initiated on a variety of products.
The Global Supply Chain rationalization initiative
stabilized in early part of 2009; however global volumes saw considerable
shrinkage driven by demand contraction in the Field Solution Products. The
business made earnest efforts to sustain profitability in reducing global
volumes, which continue to be strained in the immediate future. The Company’s
manufacturing facility continued to get accreditation for Manufacturing
Excellence by Frost and Sullivan
The initiative of providing turnkey solutions to global organizations continues to be successful. The business executed on schedule, large turnkey global projects.
FINANCIALS
The Highlights given above provide details of many key indicators of strong financial performance of the Company in 2009. The long cycle nature of their Project and Solution business, and diversified portfolio by Industry and Geography, gave opportunity to the leadership to address its Growth Priorities and Cost to serve position. This resulted in a strong financial performance in 2009, while most peer companies had a challenging growth, income and cash performance.
Growth in volumes were driven by exports business which had
an upcycle in large global project execution, which had further tailwinds in
the cost mix and better realization due to favourable exchange variation
attributing to an improved margin performance resulting in a substantial
improvement in EBITDA. The proportion of
Tough credit environment gave an opportunity for HAIL to focus on its entire Customer to Cash cycle; this focus resulted into a much leaner Working Capital and improved Cash generation from Operations. The accelerated cash cycle ensures that the Company targets a matrix of Cash Generation from operations being higher than its Net Income.
TRADE REFERENCES:
HPCL
Fixed Assets:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Furniture and Fixtures
·
Office Equipments
·
Vehicles
·
Oracle License
·
Software
AS PER WEBSITE
Profile:
Subject is a provider of integrated automation and
software solutions that improve productivity, enhance comfort and ensure safety
and security of the homes and business premises. With over 2500 employees and
an annual turnover of about Rs.8680.000 Millions, Subject is headquartered in
Pune with 8 offices all over
Innovation and adaptability are the hallmarks of Subject and they aim at
creating value for the customers in an ever-changing market. The Company drives
the nation's growth by being responsible to its leadership position in running
the "core" business sectors of the Indian Economy, be it
Infrastructure, Petrochemicals, Refining, Chemicals, Mining and Metals or
Automobiles and Hospitality. Honeywell brands can be seen on the thermostats in
buildings, in the electronic voting machines, process control systems in
refineries and factories or as sensors in automobiles.
Subject has an impressive 36000 sq ft. state-of-the-art manufacturing facility
in Pune, and is the first Automation and Control Solutions company in India to
receive double certifications of ISO 9001 and OHSAS 18001 certifications.
Strict adherence to quality and being receptive to customer needs has helped
the Company provide innovative solutions, high-end consulting and engineering
designs to organizations, both in India and globally, leading to enormous
savings to the customers through better productivity, optimal use of materials
and energy, lesser wastage and better maintenance of equipment.
Set up in 1987 as a joint venture between TATA group and Honeywell with
manufacturing, design and engineering facilities in the industrial city of
Honeywell International is a $36 billion diversified technology and manufacturing
leader, serving customers worldwide with aerospace products and services;
control technologies for buildings, homes and industry; automotive products;
turbochargers; and specialty materials. Based in
PRESS RELEASE:
Honeywell expands
their Energy Efficiency Portfolio
Introduces the Honeywell Solar Water Heating System
PUNE,
“With depleting energy sources in the environment today, solar water heating
technology is emerging as one of the most energy efficient and inexpensive
methods of heating water and perhaps one of the most effective solutions to the
current challenge of increasing energy costs,” said Vimal Kapur, managing
director of HAIL. “Studies show that a solar water heater system with a capacity
of 100 litres per day (LPD) can save up to 250 kilograms of coal, 1100 units of
electricity, 565 kilograms of CO2 from being released, and save six trees from
being cut down annually.”
The Honeywell Solar Water Heating System works on the thermo siphon principle,
a very efficient method of water heating. This efficiency is further enhanced
by using an advanced triple layer evacuated tube technology with high
absorption and low emission characteristics. To ensure the water stays hot for
considerable amount of time, Honeywell provides specially insulated storage
tanks that are robust in structure and resistant to corrosion. It is available
in various sizes, for varying climatic conditions and building types with a
life expectation of 15 years.
“We at Honeywell are committed to delivering innovation, comfort and energy
efficiency in everyday life and the Honeywell Solar Water Heating System is one
such manifestation of our technology driven and energy-efficient initiatives
that is easy to install and maintain with features suitable for varied
projects. Benefits to the user include enhanced comfort through round-the–clock
availability of hot water, reduced energy bills along with helping buildings
and homes go green. Besides, this is a strategic fit to Honeywell’s focus on
energy and energy conservation-related initiatives,” says Kapur.
The Honeywell Solar Water Heater is available in a variety of sizes, from basic
100 LPD standalone systems to large, customized systems of several LPD.
Honeywell has established a strong channel network across
About Honeywell
Honeywell International (www.honeywell.com) is a Fortune 100 global
diversified technology and manufacturing leader. Each of the company’s four
businesses - Aerospace, Automation and Control Solutions, Transportation
Systems, and Specialty Materials - has operations in
This release contains “forward-looking statements” within the meaning of
Section 21E of the Securities Exchange Act of 1934. All statements, other than
statements of fact, that address activities, events or developments that we or
our management intend, expect, project, believe or anticipate will or may occur
in the future are forward-looking statements. Forward-looking statements are
based on management’s assumptions and assessments in light of past experience
and trends, current conditions, expected future developments and other relevant
factors. They are not guarantees of future performance, and actual results,
developments and business decisions may differ from those envisaged by our
forward-looking statements. Our forward-looking statements are also HAIL to
risks and uncertainties, which can affect our performance in both the near- and
long-term. We identify the principal risks and uncertainties that affect our
performance in our Form 10-K and other filings with the Securities and Exchange
Commission.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 45.32 |
|
|
1 |
Rs. 70.54 |
|
Euro |
1 |
Rs. 58.70 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.