MIRA
INFORM REPORT
|
Report Date : |
09.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
THERMAX LIMITED |
|
|
|
|
Registered
Office : |
D-13, MIDC
Industrial Area, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
30.06.1980 |
|
|
|
|
Com. Reg. No.: |
11-022787 |
|
|
|
|
Paid-up Capital
: |
Rs. 238.300
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29299MH1980PLC022787 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNET03854E PNET00017D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT3910D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of
Steam or other Vapour Generating Boilers, other Refrigerating or Freezing
Equipment and Ion Exchangers of the Polymerisation or Co-Polymerisation type. |
|
|
|
|
No. of Employees
: |
4464
(approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 52000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Fundamentals are strong and healthy. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can
be considered normal for 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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office/ Factory : |
D-13, MIDC Industrial
Area, |
|
Tel. No.: |
91-20-27475941-
42/ 66122100 |
|
Fax No.: |
91-20-27472049 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate
Office : |
Thermax House,
14, Mumbai – |
|
Tel. No.: |
91-20-66051200 /
25542122 |
|
Fax No.: |
91-20-25542242 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
D-1 Block, MIDC Industrial Area,
Chinchwad, Pune - 411 019, |
|
|
|
|
Factory 2 : |
Village Paudh, Mazgaon, Via Pategarga, Taluka Khalapur, District
Raigad – 410 206, |
|
|
|
|
Factory 3 : |
Plot No.21/1-2-3, GIDC Manjusar, Taluka - Savli, Dist.- Vadodara –
391775, |
|
|
|
|
Factory 4 : |
D-13, MIDC
Industrial Area, |
|
|
|
|
Factory 5 : |
Survey No-169,
Village Dhrub, Taluka Mundra, Mundra – 370 201, District Kutch, |
|
|
|
|
Factory 6 : |
Gat No. 125, |
|
|
|
|
Overseas
Offices : |
·
Thermax
International Limited, ·
Thermax
(Rus) Limited, ·
Thermax
Europe Limited, ·
Thermax
Europe Limited, ·
ME
Engineering Limited, ·
Thermax
Inc., |
|
|
|
|
Branches : |
Located At: ·
Ahmedabad,
·
·
·
·
·
Kolkata,
·
Chennai,
Tamilnadu ·
·
Mumbai,
·
|
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Meher Pudumjee |
|
Designation : |
Chairperson |
|
|
|
|
Name : |
Mr. M. S. Unnikrishnan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Anu Aga |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Raghunath A. Mashelkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Valentin Von Massow |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tapan Mitra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pheroz Pudumjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nawshir Mirza |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Jairam Varadaraj |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sunil Lalai |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Gopal Mahadevan |
|
Designation : |
Executive Vice President and Chief Executive Officer |
|
|
|
EXECUTIVE COUNCIL :
|
|
|
|
|
|
Name : |
Mr. Ravinder
Advani |
|
Designation : |
Executive Vice
President – ESD |
|
Qualification
: |
B. E. (Hons)
(Mech.), PGDBM |
|
Date of
Appointment : |
01.05.2000 |
|
Previous Employment
: |
Thermax Babcock
and Wilcox Limtied – General Marketing Manager. |
|
|
|
|
Name : |
Mr. Pravin Karve |
|
Designation : |
Key Executive |
|
|
|
|
Name : |
Mr. Rajan Nair |
|
Designation : |
Key Executive |
|
|
|
|
Name : |
Mr. M. S.
Unnikrishnan |
|
Designation : |
Executive Vice
President |
|
Qualification
: |
B. E. (Mech.) |
|
Date of
Appointment : |
01.08.1997 |
|
Previous Employment
: |
Terrazzo Limited
– Assistance General Manager |
|
|
|
|
Name : |
Dr. R.R. Sonde |
|
Designation : |
Executive Vice
President |
|
|
|
|
Name : |
Mr. R V Ramani |
|
Designation : |
Divisional Head |
|
Qualification
: |
B. E. (Mech.) |
|
Date of
Appointment : |
01.10.1974 |
|
Previous Employment
: |
Indowse Engineering
Private Limited – Sales Engineer |
|
|
|
|
Name : |
Mr. Sharad Gangal |
|
Designation : |
Key Executive |
|
|
|
|
Name : |
Mr. Hemant
Mohgaonkar |
|
Designation : |
Key Executive |
|
|
|
|
Name : |
Mr. S.
Ramachandran |
|
Designation : |
Key Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9,520,805 |
7.99 |
|
|
64,328,500 |
53.99 |
|
|
6,000 |
0.01 |
|
|
6,000 |
0.01 |
|
|
73,855,305 |
61.98 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
73,855,305 |
61.98 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
13,430,470 |
11.27 |
|
|
3,850,450 |
3.23 |
|
|
10,751,342 |
9.02 |
|
|
28,032,262 |
23.53 |
|
|
|
|
|
|
2,132,196 |
1.79 |
|
|
|
|
|
|
7,379,967 |
6.19 |
|
|
7,353,809 |
6.17 |
|
|
402,761 |
0.34 |
|
|
170,580 |
0.14 |
|
|
10,553 |
0.01 |
|
|
80,795 |
0.07 |
|
|
140,833 |
0.12 |
|
|
17,268,733 |
14.49 |
|
Total Public shareholding (B) |
45,300,995 |
38.02 |
|
Total (A)+(B) |
119,156,300 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
119,156,300 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Directors/Promoters
& their Relatives & FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Steam
or other Vapour Generating Boilers, other Refrigerating or Freezing Equipment
and Ion Exchangers of the Polymerisation or Co-Polymerisation Type. |
||||||||
|
|
|
||||||||
|
Products : |
· Other Refrigerating or Freezing Equipment · Ion Exchangers of the Polymerisation or Co-Polymerisation type
|
(PRODUCTION STATUS AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Energy Products and Systems a.
Boilers Capacity upto 30MT / Chillers b.
Boilers Capacity above 30MT c.
Heaters d.
Power Plants |
Nos. MT Mn. Kg Cal MW |
3441 22410 -- -- |
2141 4351 35 63 |
|
Environmental Products and Systems : |
|
|
|
|
a. Air Pollution Control Plants and Systems |
Nos. |
-- |
946 |
|
b. Water and Waste Treatment Plants |
Nos. |
-- |
1256 |
|
c. Ion Exchange Resins and Chemicals |
MT |
36161 |
19855 |
Note: Installed capacity has been certified by
the management and has been accepted by the Auditors without verification, this
being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
4464
(approximately) |
|||||||||
|
|
|
|||||||||
|
Bankers : |
·
Bank of · Canara Bank · Citibank N.A. · Corporation Bank · ICICI Bank Limited ·
Union Bank of ·
State Bank of · The Hongkong and Shanghai Banking Corporation Limited |
|||||||||
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|
|
|||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
B. K. Khare and
Company Chartered
Accountants |
|
Address : |
706/707, Sharda
Chambers, New Marine Lines, Mumbai – 400020, |
|
|
|
|
Holding Company
: |
·
RDA Holding and Trading
Private Limited. |
|
|
|
|
Joint Venture : |
·
Thermax
SPX Energy Technologies Limited ·
Thermax
Babcock and Wilcox Energy Solutions Private Limited |
|
|
|
|
Domestic
Subsidiaries Company : |
·
Thermax Sustainable Energy Solutions
Limited ·
Thermax Engineering Construction
Company Limited ·
Thermax Instrumentation Limited ·
Thermax Onsite Energy Solutions
Limited |
|
|
|
|
Overseas Subsidiary
Company : |
·
Thermax International Limited, ·
Thermax Europe Limited, ·
Thermax Inc., ·
Thermax do Brasil Energia e ·
Thermax Hong Kong Limited, ·
Thermax ( ·
Thermax ·
Thermax ·
Dabstroker A/S, ·
Omnical Kessel – und Apparatebau ·
Ejendomsampartsselskabet Industrivej Nord 13, ·
Danstroker ( |
CAPITAL STRUCTURE
As On 31.03.2011
Authorized Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
375000000 |
Equity Shares |
Rs.2/- each |
Rs.750.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119156300 |
Equity Shares (Of the above 6,43,28,500 shares are held by holding company, RDA
Holding and Trading Private Limited.) |
Rs.2/- each |
Rs.238.300 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
238.300 |
238.300 |
238.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12685.100 |
10269.600 |
9380.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
12923.400 |
10507.900 |
9618.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
480.400 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
480.400 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
468.500 |
436.300 |
362.100 |
|
|
|
|
|
|
|
|
TOTAL |
13872.300 |
10944.200 |
9981.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4866.100 |
4938.500 |
4399.100 |
|
|
Capital work-in-progress |
297.300 |
111.700 |
176.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
4043.600 |
3781.600 |
1764.500 |
|
|
DEFERREX TAX ASSETS |
267.200 |
264.200 |
181.600 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories
|
2823.100 |
2463.600 |
2664.200 |
|
|
Contracts in Progress
|
3571.100 |
2761.700 |
2268.600 |
|
|
Sundry Debtors
|
10012.600 |
7470.500 |
5407.800 |
|
|
Cash & Bank Balances
|
6565.700 |
6055.500 |
3407.800 |
|
|
Other Current Assets
|
654.200 |
525.100 |
387.000 |
|
|
Loans & Advances
|
3094.100 |
3014.200 |
2021.800 |
|
Total
Current Assets |
26720.800
|
22290.600
|
16157.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
8016.100 |
7298.800 |
3971.500 |
|
|
Other Current Liabilities
|
11671.700 |
11495.300 |
7218.800 |
|
|
Contracts in Progress
|
1014.000 |
673.800 |
558.500 |
|
|
Provisions
|
1620.900 |
974.500 |
949.100 |
|
Total
Current Liabilities |
22322.700
|
20442.400
|
12697.900
|
|
|
Net Current Assets |
4398.100
|
1848.200
|
3459.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13872.300 |
10944.200 |
9981.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Other Income |
49354.900 |
32352.300 |
33031.700 |
|
|
|
TOTAL (A) |
49354.900 |
32352.300 |
33031.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
34158.500 |
20584.700 |
20976.300 |
|
|
|
Personnel |
3686.400 |
2927.100 |
2546.400 |
|
|
|
Excise Duty |
6.800 |
24.400 |
23.500 |
|
|
|
Other Expenditure |
5319.800 |
4477.300 |
4953.200 |
|
|
|
Extra-ordinary Items of Expenses/ (Income) |
0.000 |
1148.600 |
(13.600) |
|
|
|
TOTAL (B) |
43171.500 |
29162.100 |
28485.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6183.400 |
3190.200 |
4545.900 |
|
|
|
|
|
|
|
|
|
Less |
INTERESTS (D) |
21.800 |
15.200 |
32.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6161.600 |
3175.000 |
4513.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
431.900 |
404.200 |
321.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5729.700 |
2770.800 |
4192.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1905.500 |
1356.400 |
1319.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3824.200 |
1414.400 |
2873.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6057.600 |
5480.000 |
3592.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
400.000 |
142.000 |
288.000 |
|
|
|
Proposed Equity Dividend |
1072.400 |
595.800 |
595.800 |
|
|
|
Tax on Dividend |
174.000 |
99.000 |
101.200 |
|
|
BALANCE CARRIED
TO THE B/S |
8235.400 |
6057.600 |
5480.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB |
6122.000 |
7008.600 |
6275.700 |
|
|
|
Other Earnings |
54.000 |
126.300 |
170.300 |
|
|
TOTAL EARNINGS |
6176.000 |
7134.900 |
6446.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3254.300 |
1893.600 |
1632.100 |
|
|
|
Stores & Spares |
1423.900 |
1001.700 |
1024.200 |
|
|
|
Consumable |
84.600 |
27.900 |
53.600 |
|
|
|
Capital Goods |
15.200 |
230.600 |
356.400 |
|
|
TOTAL IMPORTS |
4778.000 |
3153.800 |
3066.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Before
Extraordinary Items |
32.09 |
21.51 |
24.00 |
|
|
|
- After
Extraordinary Items |
32.09 |
11.87 |
24.11 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.75
|
4.37
|
8.70
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.14
|
10.18
|
20.39
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44
|
0.26
|
0.44
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.76
|
1.95
|
1.32
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.20
|
1.09
|
1.27
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject (Thermax) came to business in 30th June of the year
1980, headquartered in Pune, India, Company provides sustainable solutions in
Energy and Environment by the way of standard products in the 6 areas of business,
such as Boilers and Heaters, Absorption Cooling, Water and Waste Solutions,
Chemicals for Energy and Environment applications, Power and Cogeneration
systems and Air Pollution and Purification Thermal's international operations
are spread over South East Asia, Middle East, Africa, Russia, UK and the US.
Tulsi Fine Chemical Industries Private Limited and Kailas Castings Private
Limited were merged with the company with effective from 1st July of the year
1982. As at 01.07.1989, Thermax became a deemed public company. In the year
1991, T. K. Steel Industries Limited was merged with the company. During the
year 1994, the company's status was changed from deemed public company public
company. The process heat division came out with a new boiler design in the
year 1995, an oil fired smoke boiler, shell Max and Combiac, a boiler specially
designed to burn agro fuels like rice and groundnut husk, saw dust, coffee
waste etc. also in the same year of 1995, a Memorandum of Understanding (MoU)
was signed with Bharat Shell for thermic fluid, therma, for heat transfer
system. The process heat projects division received an order from PT South
Pacific Viscose, an Indonesian Company for supply of 3 boilers of 22.5 tonnes
per hour of steam. Energy System Division of the company was born in the year
1996 by the way of merger of two division, one in the energy area and the other
in heat recovery area to pool the expertise with a view to addressing the heat
recovery business and also in the same year launched fine circulation fluidised
bed combustion boiler. The MoU was signed with Bharat Shell and the Process
Heat Division of the company.
During the year 1997, the company had received the AD-Merkblatt certification
for the entire manufacturing unit at Chinchwad. An electronic network called
Thermnet linking all establishments of the company in the country was
introduced during the year same year of 1997 and also Thermax had entered into
a joint venture with Fuji Electric Company of
With the investment of US $ 200,000, the company had incorporated a wholly
owned overseas (WOS) subsidiary in
As at February 2008, the company had signed a technical transfer license
agreement with US-based Babcock and Wilcox Power Generation Group (B and W) to
engineer, manufacture and sell sub critical B and W radiant utility boilers in
Company is planning to set up a new Rs.5-billion manufacturing plant for large
boilers of capacity 100 mw to 800 mw for power plants. In the first phase, the company
will have a capacity to produce sub-critical boilers with total capacity of
1,500 mw per annum, which would entail an investment of Rs.3 billion. In the
next phase the company will scale up the capacity of the boilers of equivalent
to 3,000 mw with an additional investment of Rs.2 billion.
ANNUAL PERFORMANCE:
This year, at Rs. 49350.000 millions, the total income of the company has exceeded US $ one
billion, a 52.6% increase over last
years income of Rs. 32350.000 millions.
Thermaxs energy business comprising Boiler and Heater, Power
and Cooling and Heating contributed 77.3% of its income while the
environment business comprising Air
Pollution Control, Chemicals, along with Water and Wastewater Solutions
accounted for the remaining 22.7%.
In terms of profitability, the company had an EBITDA of
11.6% (12.1% last year). The variation
has been due to the rising cost of raw materials, higher share of Power EPC
business and the acceptance of certain strategic orders at lower margins.
The company’s performance during fiscal 2010- 11 straddled
two distinctly dissimilar phases in the economic environment – a first half of
robust growth followed by six months of economic uncertainties. While the first
phase saw the continuing surge in their order finalisation, the latter six
months saw credit drying up due to high interest rates, resulting in a slowing
down of orders. Due to the slow-down in new orders in the last two quarters of
2010-11, the company’s performance next year is likely to be subdued. However,
being positioned in the crucial areas of energy and environment, with the
continuing vibrancy of the national economy, the medium to long term outlook
for the company is positive.
Profit before tax and extraordinary items was also higher at
Rs. 5730.000 millions as compared to Rs. 3919.000 millions in the previous
year. Profit after tax and extraordinary items was at Rs. 38240.000 millions
compared to Rs. 1414.000 millions in the previous year (after providing for
extraordinary item of Rs. 1149.000 millions). Earnings per share (EPS) rose to
Rs. 32.09 from Rs. 11.87 (after extraordinary item)in 2009-10.
Order booking for the year was Rs. 53180.000 millions
against Rs. 57940.000 millions, last year. The company completed the year with
an order backlog of Rs. 56050.000 millions as against Rs. 53810.000 millions in
the previous year.
During the year, exports, including deemed exports, were
higher at Rs. 10659.000 millions from Rs. 6565.000 millions last year, an
increase of 62.4%.
The consolidated total income of the Thermax Group was Rs.
53950.000 millions (Rs. 34222.000 millions, previous year) recording a 58%
increase. Income from international business including deemed exports was up
74% to Rs. 12505.000 millions from Rs. 7204.000 millions. The Group registered
a profit before tax of Rs. 5737.000 millions (Rs. 4004.000 millions, previous
year). Profit after tax and extraordinary items and minority interest was Rs.
3817.000 millions for the year. Consequently, earnings per share (EPS) also increased
to Rs. 32.03 (Rs. 12.11 after extraordinary item, previous year).
DOMESTIC SUBSIDIARIES
JOINT VENTURE
Thermax Babcock and Wilcox Energy Solutions Private Limited
Thermax Babcock and Wilcox Energy
Solutions Private Limited was incorporated on June 26, 2010, following the
joint venture agreement signed last year with Babcock and Wilcox (B&W),
A manufacturing facility is being
set up at Shirwal in Satara District,
The company has currently
contributed Rs. 492.000 millions in various tranches towards its 51% share of
the equity share capital in the joint venture.
Thermax SPX Energy Technologies Limited
The company is a joint venture
(JV) between Thermax Limited and SPX Netherlands B.V., a wholly owned
subsidiary of SPX Corporation,
The JV would supply equipment to
help power plants meet stringent emission norms and improve thermal
efficiencies in boiler islands. During the year, the JV has commenced execution
of its first order won last year from a leading oil refinery.
The total revenue for the year
were Rs. 92.000 millions (Rs. 0.500 millions, previous year). Net loss after
tax was Rs. 4.000 millions (Rs. 9.000 millions).
The company’s prospects look
promising in the medium to long term.
WHOLLY
OWNED:
Thermax
Engineering Construction Company Limited
Thermax Engineering Construction Company Limited, (TECC)
undertakes and executes engineering construction projects mainly for the Boiler and Heater
(B and H) business unit of the company.
During 2010-11, the company earned
a total income of Rs. 1201.000 millions (Rs. 968.000 millions, previous year).
It achieved a profit after tax of Rs. 64.000 millions (Rs. 30.000 millions),
resulting from better cost management and favourable settlement of liquidated
damages provided in earlier years.
The year-end order balance is Rs. 2440.000
millions, the highest in its history.
Thermax
Instrumentation Limited:
Thermax Instrumentation Limited
(TIL) is engaged in the installation and commissioning of power and cogeneration
plants, including civil construction, that have been built by the parent
company’s Power division.
During the year, the company
earned a total income of Rs. 2365.000 millions and profit after tax of Rs.
34.000 millions (Rs. 1291.000 millions and Rs. 20.000 millions respectively,
last year).
TIL has an order balance of Rs.
4400.000 millions at the end of FY 2011.
Thermax
Sustainable Energy Solutions Limited:
Thermax Sustainable Energy
Solutions Limited has been created to develop business related to clean
development mechanism (CDM). During the year, the subsidiary received
registration for its Programme of Activities from the United Nations Framework
Convention on Climate Change (UNFCCC).
The company earned an income of
Rs. 3.000 millions (Rs. 7.000 millions, previous year). This mainly comprised
CDM consultancy services provided to project owners. The company has incurred a
net loss of Rs. 12.000 millions (Rs. 12.000 millions), due to expenses for
development, validation and registration of the CDM project and investments in
IT infrastructure. As this is an entirely new business for
The company will be investing
substantially in the coming year to accredit many projects under its Programme
for carbon credit entitlements in the future.
Thermax
Onsite Energy Solutions Limited:
The company is focused on
delivering utilities – green energy from biomass and other renewable sources
that it supplies to customers – on a unit consumption basis. As a first step
the company has commenced the business of supplying process steam / heat.
Apart from two projects undertaken
the previous year, this subsidiary had a lean 2010-11. However, as the business
model is conducive for the emerging business environment, it plans to take up
more projects this year.
The company had a total income of
Rs. 61.000 millions and profit after tax of Rs. 6.000 millions.
The company has infused Rs. 36.000
millions equity capital into this subsidiary and will invest more, based on the
needs of the new contracts.
WHOLLY
OWNED OVERSEAS SUBSIDIARIES
Thermax
Inc.,
This step-down subsidiary, which
provides the Group access to US markets, currently focuses on ion exchange
resins and vapour absorption chillers.
2010-11 witnessed a challenging
environment in the
Despite these difficult circumstances,
the subsidiary recorded a sales of USD 13.1 mn (USD 14.9 mn, previous year) and
a profit of USD 0.04 mn ( USD 0.96 mn, previous year).
Therniax
Europe Limited, UK.:
Although the market has remained
flat in comparison to last year, this subsidiary.s focus on specialised market
segments and new applications helped it to retain and improve its market
share. The company achieved a turnover
of GBP 4.3 mn (USD 7 mn) compared to GBP 3.8 mn (USD 5.8 mn) in the previous
year. The profit after tax stands at GBP 0.4 mn (USD 0.7 mn) against the
previous years profit of GBP 0.4 mn (USD 0.7 mn). The year also saw one of the
highest order intake of GBP 5 mn.
Although the market is expected to
remain subdued in the short term, the company will continue to focus on its
niche segments for the coming year.
Thermax
(
2010-11 was the second full year
of its operation. It doubled its
production during the period and has plans to ramp it up this year. The company
faced the challenge of rising costs in a market recovering after the 2009
global recession. It has taken initiatives to optimise designs and achieve
benchmark performance at reduced costs.
In 2010-11 the company achieved
total revenues of RMB 47 mn (USD 7.2 mn), an increase of 143% compared to the
previous year (RMB 19.3 mn). Loss for the year was RMB 11.4 mn (USD 1.7 mn)
after accounting for interest and depreciation, compared to RMB 10.4 mn (USD
1.5 mn), last year.
The final tranche of equity
infusion of USD 1.12 mn from the total approved USD 14.4 mn has been remitted
in the last quarter.
Thermax
Thermax Denmark ApS was
incorporated on October 29, 2010 with authorised capital of DKK 75 mn (USD 14.3
mn), to acquire the European entity Danstoker A/S along with its
subsidiaries. The company is the holding
company of
Thermax
Thermax Netherlands B.V. was
incorporated on November 4, 2010 with an initial authorised capital of EUR 30
mn (USD 42.5 mn) and is the holding company of Thermax Denmark ApS.
Danstoker A/S,
The acquisition of Danstoker A/S,
a leading European boiler manufacturer and its German subsidiary, Omnical
Kessel was completed on November 8, 2010 and was valued at Euro 29.5 mn (USD
41.8 mn).
Danstoker, headquartered in
Operating predominantly within
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW:
The year gone by witnessed recovery and gradual growth in
most markets, With the financial crisis in the developing world firmly behind
them, most countries are now reevaluating the stimulus packages they had
introduced during the crisis. Countries that curtailed their stimulus packages
have had a mixed experience, some experiencing continuing unprecedented levels
of unemployment and some yet to see consumer demand revive. Markets remained
volatile due to diverse developments over which governments and central banks
appear to have little control — the sovereign debt crisis in the Euro zone, a
worrying fiscal future for the
India’s (3DP grew 8.6%, spearheaded by sectors like
manufacturing, construction, transportation, real estate, trade, communication
and sustained by the agricultural sector that grew by 5.4%. As per the latest
lIP indices, manufacturing clocked an impressive 10% growth during the Apr-Nov
2010 period but later slowed, with the March figures at just 3.2%.
The last financial year also saw
Another downside of the growth story has been the unhealthy
inflation and a growing current account deficit (CAD), which stood at 7% and 3%
of GDP, respectively. With perceptible uncertainty in many of the large export
markets, the situation is challenging. However, there are plans to aggressively
promote the export of high value products that have a strong manufacturing
base, such as engineering goods, to tilt the balance of payment in
Rural infrastructure development focusing on basic water and
sanitation facilities in villages across
With
REVIEW
OF OPERATIONS:
The company passed a historic milestone in 2010-11 – a
billion dollars in revenues, generating a total income of Rs.49350.000 millions
and a profit after tax of Rs.3820.000 millions. Exports, including deemed
exports, contributed 21.6% of the total income.
The company’s gains in booking new orders in first half of
fiscal 2010-11 were offset by the uncertain economic environment in the second
half which resulted in a slowing down of orders.
Growing three-fold in the last five years, Thermax continued
to contribute to the energy and environment sectors of
The Innovation Council continued
to guide the company to create a nurturing environment for innovations. Some of
the key initiatives include solar cooling using triple effect absorption
chillers, a solar thermal project for rural electrification, and the successful
registration of an industrial programme under CDM with the UNFCCC (United
Nations Framework Convention for Climate Change). A portal for capturing
innovative ideas from employees across the board was also established during
the year.
The company’s Water and Waste
Solutions business continued to support the national power sector providing raw
water and effluent treatment for public and private sector companies. This
business is also Delhi Metro’s partner for water management across its 144 km
route, providing over 100 plus water and sewage treatment systems — filters,
softeners, RO plants and compact wastewater plants.
The company has been strategically
focusing on increasing its revenue through clean technology products and
systems. Accordingly, all business divisions are now mandated to track the
share of their respective green and carbon neutral stream of revenues.
Over the years, Thermax has
supplied systems with an installed capacity of 5037 MW of green energy. Its
commissioned bagasse fired boilers have an installed capacity of 1593 MW.
Thermax’s absorption chillers at client sites can provide 1.3 million tons of environment
friendly chilling. The treatment plants supplied by Thermax cumulatively treat
1679 million litres per day of water and waste water.
During the year, the company
expanded its operational excellence initiatives to encompass many more
processes and work centres. These projects focus on reducing the cost of poor
quality, improving on -time performance and customer satisfaction. Thermax has
also recalibrated its customer focus programme, organizing a series of meets
for face-to-face sessions with clients in different parts of the country.
Feedback from these dialogues are put to use for product development and
quality improvement.
In today’s open market regime, the
company faces competition from international players in all its business
segments. Through technology partnerships, nurturing of innovation and
indigenous R and D, and through improved products, it is preparing to meet the
challenges posed by competition. In the face of global competition, especially
from
FIXED ASSETS
·
·
·
Buildings
·
Plant
and Machinery
·
Electrical
Installation
·
Furniture
·
Fixtures
·
Office
Equipment
·
Vehicles
·
Computers
·
Software
·
Technical
Know How
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.44.32 |
|
|
1 |
Rs.70.74 |
|
Euro |
1 |
Rs.63.64 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
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 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
66 |
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.