MIRA INFORM REPORT

 

 

Report Date :

16.07.2011

 

IDENTIFICATION DETAILS

 

Name :

BEML LIMITED (w.e.f 30.11.2007)

 

 

Formerly Known As :

BHARAT EARTH MOVERS LIMITED

 

 

Registered Office :

"BEML Soudha", 23/1, 4th Main Road, S R Nagar, Bangalore - 560027, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

11.05.1964

 

 

Com. Reg. No.:

08-001530

 

 

Paid-up Capital :

Rs.417.722 millions

 

 

CIN No.:

[Company Identification No.]

L35202KA1964GOI001530

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NGPB01658G

 

 

PAN No.:

[Permanent Account No.]

AAACB8433D

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer, Exporter and Importer of Earthmoving and Other Heavy Industrial Equipments

 

 

No. of Employees :

12000 (approximately) [Factory + Branches]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (81)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

 

 

 

Maximum Credit Limit :

USD 80000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track.  It is a Government of India Company.  The company's general financial position is satisfactory.  However, profitability is under severe pressure.  Lenders and Creditors can feel confident of Government of India's exposure to the company.  Payments are usually correct 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 – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

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. Vivek Naik

Designation :

Finance Manager

Contact No.:

91-80-22963177

 

 

LOCATIONS

 

Registered/ Corporate

Office :

"BEML Soudha", 23/1, 4th Main Road, S R Nagar, Bangalore - 560027, Karnataka, India

Tel. No.:

91-80-22963240/ 22963250 (13 lines)

Fax No.:

91-80- 22963278/ 516/ 280/ 164

E-Mail :

bemlexp@vsnl.com

info@bemlindia.com

office@cs.beml.co.in

office@pr.beml.co.in

bemlcmd@vsnl.net

Website :

http://www.bemlindia.com

Area :

10000 sq.ft

Location :

Owned

 

 

Division Office:

Marketing Division

5th Floor, Unity Buildings, JC Road, Bangalore-560002,Karnataka,India

Ph: 91 80 22963501

Fax: 91 80 22963539

Email: mmoffice@sales.beml.co.in

 

International Business Division

BEML SOUDHA, 23/1, 4th Main, SR Nagar, Bangalore-560027, Karnataka, India.
Ph: 91 80 22222730, 22233350, 22963187, 22963215

Fax: 91 80 22224874

Email: bemlexp@vsnl.com, office@export.beml.co.in,bemlexp@vsnl.net

 

Technology Division

BEML SOUDHA, 23/1, 4th Main, SR Nagar, Bangalore-560 027. Karnataka, India.
Ph: 91 80 22963100-08

Fax: 91 80 22963101

Email: office@ctd.beml.co.in

 

Trading Division

4th Floor, Unity Buildings, JC Road, Bangalore-560002, Karnataka, India.

Ph: 91 80 22963522

Fax: 91 80 22963523

Email: office@trading.beml.co.in

 

Aerospace Manufacturing Division

BEML Limited,
5th Floor,
Unity Buildings,
JC Road,
Bangalore-560 002.
Karnataka, India.
Ph: +91 80 22963554
Fax: +91 80 22963520
Email: ravi.hda@beml.co.in

 

Defence Business

BEML Limited,
5th Floor,
Unity Buildings,
JC Road,
Bangalore-560 002.
Karnataka, India.
Ph: +91 80 22963518
Fax: +91 80 22963520
Email: office@dd.beml.co.in

 

 

Steel Foundry :

Vignyan Industries Limited,

PB No.4, BH Road, Tarikere-577 228. Karnataka, India

Ph: 91 8261 222236, 222252, 222357

Fax: 91 8261 222236

Email: vittke@sancharnet.in

 

 

Regional Offices :

Located at :-

 

  • Bangalore
  • Bilaspur
  • Hyderabad
  • Kolkata
  • Mumbai
  • Nagpur
  • New Delhi
  • Ranchi
  • Sambalpur
  • Singrauli
  • Chennai

 

 

District Offices :

Located at :-

 

  • Ahmedabad
  • Asansol
  • Bhilai
  • Bhubaneswar
  • Chandrapur
  • Chennai
  • Dhanbad
  • Guwahati
  • Jammu
  • Kochi/Ernakulam
  • Kothagudem,
  • Neyveli
  • Panjim
  • Ramagundam
  • Udaipur
  • Bacheli
  • Hospet
  • Madurai

 

 

Plant Locations :

Bangalore Complex

P. B. No. 7501, New Thippassandra Post, Bangalore – 560075, Karnataka, India

Tel No.:91-80-25242414 (20 Lines)

Fax No.:91-80-25245545/ 25242942

Email : Office@dr.beml.co.in

 

KGF Complex

BEML Nagar, Kolar Gold Fields – 563 115, Belavadi Post, Mysore – 571186, Karnataka, India

Tel No.:91-8153-263020 (10 Lines)/ 263280 (20 Lines)

Fax No.:91-8153-261003/262610/263128

Email : ede@beml.co.in

 

Mysore Complex

Belavadi Post, Mysore – 571186, Karnataka, India

Ph: +91 821 2402422 (24 lines)

Fax: +91 821 2402434, 2402429, 2402442

Email: bemlmys@bsnl.in, bemlmysz@sancharnet.in

 

Palakkad Complex

BEML Limited

Kindra Wisepark, Menonpara Road,

Kanjikode,

Palakkad – 678621.

Kerala, India

Ph: +91 491 2567868, 2569868

Fax: +91 491 2567488, 2567944, 2568055

Email: p@beml.co.in, office.beml.palakkad@gmail.com

 

 

Overseas Offices:

China
BEML Limited,
Contact Person: Mr. P. Nandagopal,
Chief of Shanghai Representative Office,
No. 11A55-57, Shanghai Mart, 2299, Yan'an Road (West)
Shanghai, PC : 200 336
Tel: +86 21 62362170
Fax: +86 21 62362209
Mobile: +86 13501894472
Email: chinaoffice@cpc.beml.co.in

 

Malaysia
BEML (Malaysia) SDN BHD,
Contact Person: Mr. Naveen Kumar,
Jalan Tanjung Pelepas,
Warehouse No.181560,
Johor Bharu.
Malaysia.
Tel: +60 127011393
Email: office@malaysia.beml.co.in

 

Brazil
BEML Brasil Industrial Ltda,
Contact Person: Mr. A K Srivastav,
Sala 1201, Ed. Vitoria Center,
629, Av. Princesa Isabela,
Centro,
Vitoria, E.S.
Brazil.
Tel: +55 27 3025 2559
Mobile: +55 27 8154 3200
Email: bbil.beml@gmail.com

 

Indonesia
Pt. BEML Indonesia,
Contact Person: Mr. Vasagam TU,
Jl. Jend. Sudirman,
Balikpapan, Kalimantan Timur,
Indonesia 76114.
Tel: +62 542 765638 / 7213601-03
Fax: +62 542 762888
Mobile: +62 81383906967
Email: bemlindonesia@gmail.com

 

 

DIRECTORS

 

As On 31.03.2010

 

Name :

Mr. V. RS. Natarajan

Designation :

Chairman and Managing Director

Address :

BEML Soudha, 23/1, 4th Main, S.R. Nagar, Bangalore-560 027, Karnataka, India

 

 

Name :

Mr. P. Dwarakanath

Designation :

Director (Metro and Rail Buisness)

 

 

Name :

Mr. M. Pitchiah

Designation :

Director (Finance)

Address :

BEML Soudha, 23/1, 4th Main, S.R. Nagar, Bangalore-560 027, Karnataka, India

 

 

Name :

Dr. M. Nellaiappan

Designation :

Director (Human Resource)

Address :

BEML Soudha, 23/1, 4th Main, S.R. Nagar, Bangalore-560 027, Karnataka, India

 

 

Name :

Mr. C. N. Durgesh

Designation :

Director (Mining and Construction Business)

Address :

KGF Complex, BEML Nagar, Kolar Gold Fields-563 115, Karnataka, India

 

 

Name :

Mr. P. R. Naik

Designation :

Director (Defence Business)

Address :

5th Floor, Unity Buildings,  J.C.Road, Bangalore-560 002, Karnataka, India

 

 

KEY EXECUTIVES

 

Name :

Ms. Rashmi Verma, IAS

Designation :

Joint Secretary (Missile System)

 

 

Name :

Dr. S. C. Pandey

Designation :

Jt. Secretary and Addl. Financial Advisor

 

 

Name :

Mr. M. B. N. Rao

Designation :

Independent Directors

 

 

Name :

Mr. J. P. Batra

Designation :

Independent Directors

 

 

Name :

Mr. J. P. Singh, Ias (Retd.)

Designation :

Independent Directors

 

 

Name :

Dr. (Ms.) Rekha Bhargava, Ias (Retd.)

Designation :

Independent Directors

 

 

Name :

Lt. Gen. (Retd.) Noble Thamburaj

Designation :

Independent Directors

 

 

Name :

Mr. Kanwal Nath

Designation :

Independent Directors

 

 

Name :

Mr. Ramesh Bhat

Designation :

Independent Directors

 

 

Name :

Prof. S. Sadagopan

Designation :

Independent Directors

 

 

Name

Designation/Address

Corporate Office

BEML Soudha, SR Nagar, Bangalore - 560 027

CVO

Chief Vigilance Officer

Ganesh Natarajan

Executive Director (HR)

Reddy BRS

CGM (IR and Legal)

Chamola VM

CGM (HR)

Pradeep Swaminathan

CGM (Finance)

Narasimha Rao P

CGM (Audit)

Ashok Kumar

GM (Finance)

Venkatesan S

GM (Finance)

Venkataraman S

GM (Finance)

Suresh S. Vastrad

GM (Planning)

Nanda A K

GM (HR)

Gurunatha Naik H R

GM (Quality)

Sridhar BS

Asst General Manager (PR)

MEV Selvamm

Company Secretary

Balasubramanian N

Chief Information Officer

International Business

BEML Soudha, SR Nagar, Bangalore - 560 027

Manish Singhal

Executive Director (Exports)

Technology Division

BEML Soudha, SR Nagar, Bangalore - 560 027

Joe Pulickel

GM (Defence)

Defence Business

5th Floor, Unity Buildings, JC Road, Bangalore - 560 002

Umesh Chandra

Executive Director (Defence)

Ravi S

CGM (Defence and Aerospace)

Suri AK

GM (Defence - Marketing)

Marketing Division

5th Floor, Unity Buildings, JC Road, Bangalore - 560 002

Naik P R

Executive Director (Marketing)

Haldar AK

CGM (Chief of Parts)

Lokhande SS

Off. CGM (Chief of Sales and Marketing)

Azra Banu A

GM (Finance)

Huddar SB

GM (Parts)

Narayana Bhat K

GM (Rental and Re-Mfg)

Krishna B S

GM (finance)

Trading Division

5th Floor, Unity Buildings, JC Road, Bangalore - 560 002

Varma TKS

GM (Trading)

Bangalore Complex

New Thippasandra, Bangalore - 560 075

Prakash HS

CGM (Rail and Metro)

Gururaj YK

GM (Metro)

Manjunath BL

GM (Production)

Sastry NVS

GM (Production)

Karuppa Swamy K

GM (Finance)

Prasanna Kumar TS

GM (Marketing)

Amit Banerjee

GM (Technology Division)

Hasainabba U K

GM (HR)

Ravi Kumar KS

GM (Materials)

Srinivasulu Reddy S

Off. GM (Defence Production)

KGF Complex

BEML Nagar, Kolar Gold Fields - 563 115

Prasad S

CGM (H and P)

Dr Chandrasekaran

CGM (Production)

Krishna Murthy KV

GM (M and C), R and D

Nagaraja Kumar PV

GM (Production)

Nageswara Rao C

GM (RCU-II)

Ravishankar N

GM (Production)

Ashokan D

GM (Production)

Manjunath HR

GM (Production)

Chappidi RR

GM (Hydraulics)

Shiva Kumar P

GM (H and P)

RamanathaHR

GM (Fabrication)

Ravichandar G

GM (Materials)

Chowdhury RD

GM (Defence)

Deshmanya MD

GM (Security / Vigilance)

Muralidhar RH

GM (Planning)

Vinod Kumar Pareek

GM (Production)

Radhakrishna KR

GM (Technology Division)

Piramanayagam S

GM (Finance)

Mysore Complex

Belavadi Post, Mysore - 570 018

Reddy ARK

Executive Director (Truck Divn.)

Mulla MA

CGM (Production)

Venkataramana Rao K

CGM (Special Duty)

Namperumal L

Off. CGM (Engine Division)

Dr. Debnath KK

GM (Co-Ordination)

Ramanaiah KV

GM (Finance)

Srikanta MR

GM (Manufacturing)

Ravindra Rao K

GM (Engine)

Suresh Nambiar

GM (Defence Production)

Shankar B

GM (Light Assembly)

Palakkad Complex

Kinfra Wisepark, Menonpara Road, Kanjikode, Palakkad - 678621

Panneer Selvam R

Off. CGM (Head)

Mohanan K P

GM (Planning)

Sathisha

GM (Project)

Kumaresan S

GM (Finance)

Nagpur Service HQ

C-6, CH Road, MIDC Industrial Area, Hingna, Nagpur - 440 028

Vishwanatha B R

CGM (Service)

Steel Foundry

Vignyan Industries Ltd, PB No.4, BH Road, Tarikere - 577 228

 

DGM (Foundry)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Category

 

No of Shares

% of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Central Government / State Government(s)

22,500,000

54.03

Sub Total

22,500,000

54.03

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

22,500,000

54.03

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

3,944,364

9.47

Financial Institutions / Banks

5,741,939

13.79

Foreign Institutional Investors

5,350,497

12.85

Sub Total

15,036,800

36.11

(2) Non-Institutions

 

 

Bodies Corporate

1,230,056

2.95

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

2,508,241

6.02

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

110,123

0.26

Any Others (Specify)

259,280

0.62

Non Resident Indians

221,824

0.53

Trusts

6,268

0.02

Clearing Members

31,188

0.07

Sub Total

4,107,700

9.86

Total Public shareholding (B)

19,144,500

45.97

Total (A)+(B)

41,644,500

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

41,644,500

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Earthmoving and Other Heavy Industrial Equipments

 

 

Products :

Item Code No.

Product Description

 

 

842900

Bull Dozers, Shovels, Excavators

870410

Dumpers

860500

Railway / Transway Passenger Coaches

 

Railway Products :

 

  • Railway Coaches
  • ACEMU

 

Defence Equipment :

 

  • Defence Support Vehicles
  • Mine Plough
  • Mill Rail

 

EM Equipment

 

  • Dozers
  • Dumpers
  • Walking Dragline
  • Excavators
  • Loaders
  • Rope Shovel

 

 

Exports :

 

Products :

  • Frame External Keyboard
  • Plate Clamp Actuator
  • Clampring

Countries :

  • Bahrain
  • Bangladesh
  • Bhutan
  • Bulgaria
  • Indonesia
  • Jordan
  • Myanmar
  • Nepal
  • Sultanate
  • Oman
  • Syria
  • Tunisia
  • UAE
  • UK
  • USA
  • Belgium

 

 

Imports :

 

Products :

  • Hydrogen Chloride
  • Hydraulic Oil

Countries :

  • Japan
  • USA
  • New york
  • Singapore
  • Belgium

 

 

Terms :

 

Selling :

L/C, Cash, Credit: 30/60/90 Days

 

 

Purchasing :

L/C, Cash, Credit: 30/60/90 Days

 

 

GENERAL INFORMATION

 

Customers :
  • Retailers
  • End Users and OEM’s
  • Coal India Limited
  • Singareni Collieries Company Limited
  • Railway Board and Defence Services

 

 

No. of Employees :

12000 (approximately) [Factory + Branches]

 

 

Bankers :
  • State Bank of India – Bangalore
  • Canara Bank
  • State Bank of Mysore
  • Punjab National Bank
  • State Bank of Saurashtra
  • State Bank of Patiala
  • Bank of India
  • State Bank of Bikaner and Jaipur
  • Central Bank of India
  • Bank of Baroda
  • Union Bank of India

 

 

Facilities :

SECURED LOAN

 

31.03.2009

(Rs. In Millions)

Loans from Banks –

(Cash credit and short term credit availed from bankers secured by hypothecation of inventories (except those pertaining to railcoaches), book debts, receivables, other movable assets and plant and machineries etc.)

 

4709.088

Total

4709.088

 

 

 

Banking Relations :

Good

 

 

Auditors :

 

Name :

Rao and Swami

Chartered Accountants

Address:

Bangalore, Karnataka, India

 

 

Collaboration :
  • Komatsu, Japan
  • Dresser, USA
  • Voest Alpine, Austria
  • IGM Rooboter System, Austria

 

 

Memberships:
  • Confederation of Indian Industry

 

 

Associates/Subsidiaries :

Vignyan Industries Limited , Haliyur Village (Outskirts of Tarikere), B. H. Road, Tarikere - 577 228

Tel No. 91-8261-22236 / 22252 / 22314

Fax No. 91-8261-22357

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2009

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

100000000

Equity shares

Rs.10/- each

Rs.1000.000 millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

41900000

Equity shares

Rs.10/- each

Rs.419.000 millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

36744500

Equity shares

Rs.10/- each

Rs.367.445 millions

Add :

Issued during the year 4900000 Equity shares of Rs.10/- each

 

Rs.49.000 millions

Add :

Forfeited Shares

 

Rs.1.277 millions

 

 

 

 

 

Total

 

Rs.417.722 millions

 

Note:

 

6063000 Equity Shares of total value of Rs. 60.630 Millions have been issued for consideration other than cash.

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

417.722

417.722

417.722

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

19960.670

18736.041

16639.281

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

20378.392

19153.763

17057.003

LOAN FUNDS

 

 

 

1] Secured Loans

7530.549

4709.088

3032.680

2] Unsecured Loans

1554.986

967.308

0.000

TOTAL BORROWING

9085.535

5676.396

3032.680

DEFERRED TAX LIABILITIES

0.000

0.400

0.000

 

 

 

 

TOTAL

29463.927

24830.559

20089.683

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2738.704

2554.866

2105.773

Capital work-in-progress

322.104

236.100

246.340

 

 

 

 

INVESTMENT

81.989

79.489

79.488

DEFERREX TAX ASSETS

341.975

0.000

30.280

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
16530.030
16205.787

9295.800

 

Sundry Debtors
13607.375
15452.667

14960.562

 

Cash & Bank Balances
5671.506
2635.100

5210.953

 

Other Current Assets
73.483
150.176

190.801

 

Loans & Advances
4613.455
4127.588

1551.882

Total Current Assets
40495.849
38571.318

31209.998

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

 

 

Others Current Liabilities
8922.417
11332.633

13044.072

 

Provisions
5608.820
5361.548

677.506

Total Current Liabilities
14531.237
16694.181

13721.578

Net Current Assets
25964.612
21877.137

17488.420

 

 

 

 

MISCELLANEOUS EXPENSES

14.543

82.967

139.382

 

 

 

 

TOTAL

29463.927

24830.559

20089.683

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

28382.395

27971.710

25395.988

 

 

Other Income

1374.136

1099.733

948.277

 

 

TOTAL                                     (A)

29756.531

29071.443

26344.265

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Raw Materials & Spares Consumed/Sold

18008.431

18508.939

16095.668

 

 

Employees Remuneration & benefits

5551.398

5691.893

4538.593

 

 

Other Expenses

3698.890

3185.236

3039.968

 

 

Prior Period Adjustment

0.679

8.007

(81.922)

 

 

Increase/ (Decrease) in Stock

(1509.874)

(2807.211)

(1136.021)

 

 

TOTAL                                     (B)

25749.524

24586.864

22456.286

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

4007.007

4484.579

3887.979

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

489.292

336.818

230.875

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

3517.715

4147.761

3657.104

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

322.236

273.088

176.968

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

3195.479

3874.673

3480.136

 

 

 

 

 

Less

TAX                                                                  (I)

966.997

1186.249

1223.598

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

2228.482

2688.424

2256.538

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

977.967

624.207

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

416.445

499.734

NA

 

 

Tax On Dividend

70.775

84.930

NA

 

 

Transfer to General Reserve

222.848

1750.000

NA

 

BALANCE CARRIED TO THE B/S

2496.381

977.967

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

53.51

64.56

56.10

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover (approximately)

 

 

30000.000

 

 

 

 

 

The above information has been parted by Mr. Vivek Naik

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

5268.500

5092.700

6581.800

9360.700

Total Expenditure

5108.100

4955.800

5942.200

9735.800

PBIDT (Excl OI)

160.400

136.900

639.600

(375.100)

Other Income

258.200

221.300

232.800

1516.100

Operating Profit

418.600

358.200

872.400

1141.000

Interest

120.000

147.300

143.000

176.000

Exceptional Items

0.000

0.000

38.300

(38.300)

PBDT

298.600

210.900

767.700

926.700

Depreciation

83.000

76.900

80.600

95.900

Profit Before Tax

215.600

134.000

687.100

830.800

Tax

71.600

(13.400)

183.400

128.300

Profit After Tax

144.000

147.400

503.700

702.500

Net Profit

144.000

147.400

503.700

702.500

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
7.48
9.25

8.57

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
11.25
13.85

13.70

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.39
9.42

10.45

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15
0.20

0.20

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.15
1.17

0.98

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.78
2.31

2.27

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

HISTORY:

 

Subject (formerly Bharat Earth Movers Limited), a Mini-Ratna Status, the largest and most profitable construction equipment company was established in May of the year 1964 for manufacture of Rail Coaches and Spare Parts and Mining Equipment at its Bangalore Complex. Company has eight manufacturing units spread over four locations. The main manufacturing facilities are located at Kolar Gold Fields, Mysore and Bangalore. These incorporate sophisticated facilities like CNC machines, hi-tech welding equipment and flexible manufacturing systems to turn out cutting-edge technology products. All three manufacturing facilities are certified for ISO 9001-2000. Company operates on three major business verticals for associated equipment manufacturing Mining and Construction, Defence and Rail and Metro. In addition, there are three services verticals Technology Division for providing end-to-end engineering solutions, Trading Division for dealing in non-company products and International Business Division for export activities.  

 
Established the heavy earthmoving equipment division at Kolar Gold Fields in the year 1968. The collaboration agreement was made with Komatsu Limited, Japan during the year 1979 for technical know-how in the manufacture of a wide range of earthmoving equipments such as bulldozers. The Company's Dump Truck division was established in the year 1985 at Mysore. After a year, in 1986, Company had received National Import Substitution Award from Ministry of Science Technology, GoI. An exclusive hydraulics and power line division and a full-fledged research and development center had set up at Kolar Gold Field during the year 1987. The Company assembled and launched the Asia's largest 170-ton electric dump truck in the year of 1990. The Engine division was set up at Mysore in the year 1991 for manufacturing heavy-duty diesel engines. The Company was promoted and owned by the Government of India under the Administrative control of Ministry of Defence, Department of Defence Production and Supplies, later at, in the year 1992, BEML has partially disinvested and presently Government of India owns 54 percent of total equity and rest 46 percent is held by Public, Financial institutions, Foreign Institutional Investors, Banks and Employees. Mammoth equipment walking dragline' was launched during the year 1994.  

 
During the year 1998, the company bagged orders against World Bank tenders valued at Rs.7000.000 Millions for equipment supply to CIL projects. Integrated hi-tech applications program implemented in divisions during the year 1999 covering manufacturing, operations and communications. During 1999-2000, the company had entered into strategic alliances with multinational companies like M/s Steelfields, UK, Kawasaki, Japan, Europactor, Spain, Crossmobil, Germany and Hartl Crushtek, UK, which for improve and growth the opportunities. In 2000-2001, BEML tied up with Technology Information Forecasting and Assessment Council (TIFAC) for manufacturing specialised equipment to be used in disaster management and is planning to productions them for deployment in hazardous situations. The Company awarded the Best Exporter award by the Department of Industry and Commerce, GoK in the year 2001 and also in 2002. Company had entered into the metro Railway business during the year 2003 with the manufacture and supply of hi-tech stainless steel metro coaches to the Delhi Metro Rail Corporation.  

 
The company has opened a new Railway Fabrication Unit at Kolar Gold Field Complex in the year 2004. In the same year 2004, 7 T Class Excavator - BE71 and Backhoe loader - BL 9H were formally launched and also the four cylinder indigenous engine B4D105 had introduced as an earth moving equipment. During the year 2005, the company's Railway Fabrication Unit was inaugurated at KGF. The Company had received an award for Outstanding Export Performance' from Engineering Export Promotion Council (EEPC) during February of the year 2005. In 2006, it has launched company-wide 'Six Sigma' movement and is currently spearheading the 'Second Wave' of Six Sigma initiatives. BEML had conferred the Mini-Ratna (Category 1) status in 29th August of the year 2006 by the ministry of Defence. The status has been given recognizing position in the industry, consistent performance, growing profitability and rapid absorption of changing technologies.  

 
BEML Midwest Limited, a Joint Venture Company was incorporated in April 2007 at Hyderabad, India to undertake Contract Mining along with Midwest Granite Private Limited, Hyderabad and Pt. Sumber Mitra Jaya, Jakarta, Indonesia as partners. A consortium of Subject, Mitsubishi and Rotem has formally got the Delhi Metro Rail Corporation's order in the year 2007, worth of Rs.11440.000 Millions for metro coaches. Subject was conferred the Largest and Most Profitable Construction Equipment Company Award at the Construction World-NICMAR Awards 2007 and also BMEL conferred the Star Performer Award' by Engineering Export Promotion Council, Southern Region on 24th November 2007.  

 
As on March 2008, the Memorandum of Understanding (MoU) was made with National Aluminum Company (NALCO) to collaborate for the production of aluminum wagons for movement of ore for NALCO. During May of the year 2008, the company has signed a long-term agreement for 12 years with Coal India Limited for joint production of 'Off the Road' (OTR) tyres to meet the requirement for production by company and after Sale Requirement by Coal India Limited. Company had entered into a MoU with Steel Authority of India Limited (SAIL) for Supply of Heavy Earth Moving Equipment and Maintenance Contract during the same month, May of the year 2008. As at July 2008, BMEL has bagged export orders for supply of 93 equipments valued Rs.1580.000 Millions consisting of Hydraulic Excavators, Rear Dump Trucks and Bull Dozers from Pt. Fajar Bumi Sakti, Indonesia.  

 
Subject is running to become a market leader, as a diversified company, supplying products and services Mining and Construction, Rail and Metro and Defence sectors and globalize its presence. Also improve competitiveness through organizational transformation and collaboration/ strategic alliances/ joint ventures in technology, attract and build people in a rewarding and inspiring environment by fostering creativity and innovation.  

 

 

TURNOVER AND PROFITABILITY:
 
The  company has achieved an all time high turnover of  Rs.35576.700 millions  during  the  financial  year  2009-10,  an  increase  of  Rs.5442.000 millions  registering a growth of 18% over the previous year. The value of production was Rs.37086.600 millions recording an increase of about 13% over the  previous  year.  Despite the notable increase in sales volume, the profit before tax was Rs.3195.500 millions as against Rs.3874.700 millions recorded in the previous financial year. The reduction in profit was mainly on account  of  product  mix  including  metro  car sales, lesser quantum of sales  of  spares,  and  lesser  turnover  of  exports  coupled with  severe  competition  that  had  pressure  on margins. However, Company has initiated steps to maximize the profits.
 
FINANCE:
 
The working capital requirements were met from the internal resources and credit facilities from banks. There was no overdue installment of principal and interest.
 
The  company's  contribution  to exchequer was of the  order  of  Rs.6882.500 millions during  the year by way of Excise Duty, Customs  Duty,  Sales  Tax,  Income Tax, Wealth Tax, Service Tax and Cess.
 
AWARDS:
 
·                SCOPE  Award  received from Hon'ble Prime Minister  for  Excellence  and  Outstanding  Contribution  to  the  Public  Sector  Management  Medium  PSE  Category for the year 2006-07 on October 15, 2009.
 
·                Raksha  Mantri's  Award for Excellence, 'Institutional  Award  for  Best  Performance  in  Exports for the year 2007-08' was  received  from  Hon'ble  Raksha Mantri on November 6, 2009 at New Delhi.
 
·                Construction  World  Award 2009 for  the  fastest  growing  construction  equipment company by Union Minister for Roads Transport and Highways on 8h  October, 2009 at Mumbai.
 
·                Golden Peacock Award (Innovative management category) on 16t' January, 2010 at Bangalore.
 
·                The company  has been awarded with the  prestigious  'National  Safety award'  for  having registered Lowest Average  Frequency  Rate  of Accidents under Scheme-I for the year 2007.
 

 

 

MANAGEMENT DISCUSSION AND ANALYSIS
 
a. Industry structure and developments:
 
The company is a Mini Ratna Category I Public Sector Undertaking under  the control  of  Ministry  of Defence, operating  in  three  distinct  business segments namely Mining and Construction, Defence, and Rail and Metro.
 
Organization:
 
Each  of  the three major Business verticals viz., Mining  and  Construction, Defence  and Rail and Metro is headed by a Director, who acts as CEO  of  the business. In addition to the above, Technology Division provides end-to-end technology solutions in Auto, Aero, Defence and Rail and Metro related areas. Trading  Division  deals in noncompany products. Strategic  Business  Units (SBUs)  and Product Heads are also set up under each of the above  business to  increase organizational effectiveness. The company's manpower  strength stands at 12,052 as of end March, 2010.
 
Production Units:
 
The  Company  has  nine fully integrated  manufacturing  units  located  at Bangalore,  Kolar  Gold  Fields  (KGF), Mysore  and  Palakkad  including  a subsidiary Steel Foundry in Tarikere, Chikmagalur District.
 
KGF  Complex : Earth Moving Equipment , Division, Hydraulics and  Powerline Division, Rail Unit-II and Heavy Fabrication Unit located in KGF produce  a wide  range  of equipment such as Bulldozers, Hydraulic  Excavators,  Wheel Loaders,  Dozers,  Pipe Layers, Tyre Handlers,  Hydraulic  Cranes,  Walking Dragline,  Electric Rope Shovel, Engineering Mine Ploughs,  Heavy  Recovery Vehicles,  Armoured  Recovery  Vehicles,  Transmissions,  Axles,  hydraulic aggregates  and allied assemblies for all the manufacturing units of  BEML. Rail  Unit  II  supports  Bangalore  Complex  by  supplying  components   / aggregates for Rail Coaches and wagons.
 
Mysore  Complex: While Truck Division at Mysore produces  off-highway  Rear Dump  Trucks,  Motor Graders, Water Sprinklers, Aircraft  Towing  Tractors, Aircraft Weapon Loading Trolley and Tatra Trucks, Engine Division  produces a .wide range of Diesel Engines powering f BEML's product range.
 
Bangalore  Complex  : The Bangalore Complex manufactures various  types  of railway  products such as Railcoaches, AC EMUs, OHE Cars etc.,  for  Indian Railways.  The  company has manufactured state-of-the-art  stainless  steel Metro  Coaches  and supplied to DMRC against the first order.  The  Complex also  manufactures Defence products such as High Mobility Tatra Trucks  and variants  used  for  various  application  such  as  tank   transportation, transportation  and  launching of guided missiles,  radar  mounting,  Field Artillery   Tractor   and  Crash  Fire  Tender,   Pontoon   Bridges,   Tank Transportation Trailers, Ejector and Air Cleaner Assemblies, Milrail  Coaches and Military Wagons.
 
Palakkad Unit : This new complex at Palakkad, Kerala manufactures  products for Defence Business and Rail and Metro Business such as High Mobility  Tatra Trucks, Pontoon Bridges, Sarvatra Bridge and Railcoach aggregates / parts.
 
Subsidiary  Unit  : Vignyan Industries Limited (VIL), Tarikere,  was  taken over  by BEML in 1984 as a subsidiary unit. VIL supplies quality steel  and alloy  castings  to  various  manufacturing units  of  BEML.  To  meet  the increased  demand for steel castings, the company has modernized the  plant and augmented the capacity by installing new foundry equipment.
 
Marketing  :  BEML's  products are sold and  serviced  through  its  large marketing  network  comprising  4 Zonal Offices, 10  Regional  Offices,  17 District Offices, Activity Centres, Service Centres and Dealers.
 
International Business : BEML has established its global foot-print in more than  55 countries including Syria, Tunisia, UAE, Jordan,  Suriname,  South Africa,  UK, Sri Lanka, Bangladesh etc. BEML is adopting new strategies  to promote  brand  image and expand its international  presence.  Company  has opened its overseas offices in Malaysia, Brazil, China and Indonesia.
 
Developments and Performance during 2009-10:
 
The country saw a growth rate of 10.40% in respect of Industrial Production during 2009-10 compared to the previous year. In spite of global  meltdown, BEML  faired  well by registering a growth of 18% in sales  during  2009-10 compared  to 11% during the previous year. The business segments -  Defence and Rail and Metro showed remarkable growth. During 2009-10, the company made exports worth Rs. 156.25 Crs and could also make foray into new markets  in countries like Nigeria, Brazil etc.
 
The company has achieved important landmarks during the year namely:
 
1. Established offices at Indonesia and Brazil.
 
2. Manufactured and supplied India's first indigenous Standard Gauge  Metro Car to DMRC.
 
3. Intermediate cars for DMRC RS4 project is undergoing trials.
 
4. The company has launched a host of new RandD developed products.
 
5.  Major  order received for supply of one number Walking  Dragline  .from 
NCL.

 

Outlook:
 
1.  The  Indian mining and construction equipment industry has been  on  an  upturn   supported   by  increased  financing  availability,   step-up   in  infrastructural investments and pickup in demand for commodities  globally.  Large  proposed  investments  over  the next several  years  in  Power  and  Infrastructure  sector has the potential to sustain the growing demand  for  Mining and Construction equipments. The company has taken several proactive  measures  to  increase  the  share of Mining  and  Construction  business  by  strength  ening  the service setup and dealer network,  introduction  of  new  products and thrust on exports.
 
2.  Defence has been allocated Rs. 1473440.000 millions an increase of 3.98% over the BE  2009-10. The outlay for Defence comprises of Rs.  873440.000 millions  for  Revenue  expenditure  and Rs.60,000 Millions for Capital  expenditure  which  is  currently driven by equipment modernisation programmes in each of the three  Services.  The company is planning to expand its Defence product  range  to  meet  the long term procurement plan of MoD through Technology tie-ups  and  Research and Development. The Palakkad Manufacturing Plant is going. to be an  exclusive setup for manufacturing Defence products apart from some Rail and  Metro aggregates. With this increased capacity, the company will be able to  meet  the  increased demand from Defence sector. In order to  increase  the sales to Defence sector and also to tap offsets opportunities, the  company has entered into manufacture of Ground Handling / Ground support  equipment and  Toolings  for Aerospace Industry through its  Aerospace  Manufacturing  Division.
 
3.  Railway's  Vision  2020' and the upcoming Metro  projects  in  various cities  will  ensure  substantial  growth in  demand  for  Rail  and  Metro products.  The company has an exclusive unit to manufacture  Metro  Coaches ramping up the production rate by adopting modern manufacturing  techniques keeping in view the steep increase in demand for metro trains. Chennai  and Hyderabad  are  going the metro way and BEML is hopeful  of  bagging  these orders.  Further  orders  from Railways is also expected  for  the  regular coaches and SS EMUs developed by BEML.
 
The  emerging business environment and the market dynamics will be  driving the  demand  for all the business group and augurs well  for  the  Company. Further, the sound order book position as on 01.04.2010 goes a  long way  in achieving the set targets. Appropriate strategies and action plans have been put in place to encash these opportunities to enable the company achieve and excel the set targets.
 

TRADE REFERENCE:

·         Hiten Fasteners Private Limited, Bangalore

·         Coal India Limited

·         Railway and Defence Service

·         Therlek Engineers Private Limited, Bangalore

 

 

Fixed Assets:

 

  • Land-Freehold
  • Land-Leasehold
  • Roads and Drains
  • Water Supply Installations
  • Buildings
  • Railways Sidings
  • Plant, Machinery and Equipment
  • Electrical Installations
  • Office, Furniture and Equipment

 

PRESS RELEASE:

 

30.06.2011

 

FELICITATIONS FOR SHRI R K SINGH, SECRETARY (DEFENCE PRODUCTION)

 

A farewell-cum-felicitation function was organized in honour of Shri RK Singh, Secretary (DP) on his appointment and taking over as Secretary (Home) at New Delhi. The function was attended by Heads of Defence PSUs, Ordnance Factory and Senior Bureaucrats in the Defence Ministry.

 

Shri V RS Natarajan, Chairman & Managing Director, BEML Limited felicitated the Secretary.

 

 

As per web site details:

 

Profile:

 

Subject (formerly Bharat Earth Movers Limited) was established in May 1964 as a Public Sector Undertaking for manufacture of Rail Coaches and Spare Parts and Mining Equipment at its Bangalore Complex. The Company has partially disinvested and presently Government of India owns 54 percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and Employees.

 

Subject, a ‘Miniratna-Category-1’, plays a pivotal role and serves India’s core sectors like Defence, Rail, Power, Mining and Infrastructure. The Company started with a modest turnover of Rs. 50.000 millions during 1965 and today, thanks to its diverse business portfolio, the company has been able to achieve a turnover of more than Rs. 35000.000 Millions. Its three major Business verticals viz., Mining and Construction, Defence and Rail and Metro are serviced by its nine manufacturing units located at Bangalore, Kolar Gold Fields (KGF), Mysore, Palakkad and Subsidiary - Vignyan Industries Limited, in Chikmagalur District. BEML’s products are sold and serviced through its large Marketing Network spread all over the Country. BEML’s products are exported to more than 56 countries. As part of company’s globalization strategy, the company has expanded its global reach by opening local company at Indonesia and Brazil recently in addition to Malaysia and China offices.

 

The company operates under three major Business verticals - viz. Mining and Construction, Defence and Rail and Metro. Each of the above Business is headed by a Director who acts as CEO of the Business and reports to the Chairman and Managing Director of the company. In addition to the above, Technology Division of the company provides end-to-end technology solutions in Auto, Aero, Defence and Rail and Metro related areas. Trading Division deals in non-company products. BEML manufactures and supplies Defence Ground Support Equipment such as Tatra based High Mobility Trucks, Recovery Vehicles, Bridge Systems, Vehicles for Missile Projects, Tank Transportation Trailers, Milrail Wagons, Mine Ploughs, Crash Fire Tenders, Snow Cutters, Aircraft Towing tractors, Aircraft Weapon Loading Trolley. The company also plans to take up overhaul and upgradation of Battle Tanks with a view to assemble and roll out the products. Under Mining and Construction Business, the company manufactures and supplies Mining and Construction equipment like Bull Dozers, Excavators, Dumpers, Shovels, Loaders and Motor Graders to various user segments and under Rail and Metro Business, manufactures and supplies Rail Coaches, Metro Cars, AC EMUs, OHE Cars, Steel and Aluminium Wagons to the rail sector.

 

The company has a dedicated R and D infrastructure and team in line with consistent policy of the company to meet the technological demands through in-house R and D and strategic technical tie-ups with global players.

 

BEML operates on three major business verticals for associated equipment manufacturing:

  • Mining and Construction
  • Defence
  • Rail and Metro

 

In addition to the above there are three Strategic Business Units (SBUs):

  • Technology Division for providing end-to-end engineering solutions
  • Trading Division for dealing in non-company products
  • International Business Division for export activities

 

The company has 9 manufacturing units spread over the following locations:

·         Kolar Gold Fields (KGF) Complex (around 100 Km from Bangalore)

·         Earth Moving Division

·         Rail Coach Unit II

·         Heavy Fabrication Unit

·         Hydraulic and Powerline Division

·         Mysore Complex (around 130 Km from Bangalore)

·         Truck Division

·         Engine Division

·         Bangalore Complex - Rail and Metro Division

·         Palakkad Complex

·         Vignyan Industries, a subsidiary located at Tarikere (around 300 km from Bangalore) - Steel Castings

 

BEML's nationwide network of sales offices enables buyers with ready access to its wide range of products. Also, the full-fledged service centers and parts depots offer total equipment care, maintenance contracts and rehabilitation services.

 

The company has been registering consistent growth in sales and profits and has made a turnover of Rs. 35580.000 Millions in 2009-10 registering a growth of 18% over the previous year with a Profit Before Tax of Rs. 3200.000 Millions and has orders on hand of over Rs. 50000.000 Millions as of end March 2010.

 

The Company has drawn up VISION – 2013 with an ambitious growth rate of 12% CAGR for crossing Rs. 50000.000 Millions turnover by 2013-14 coinciding with BEML’s Golden Jubilee year. With this emerging prospects, BEML has plans to cross Rs. 50000.000 Millions in the next 2 years and is poised to achieve Rs. 100000.000 Millions mark by 2016-17 and the company is gearing up with necessary infrastructure for achieving the same.

 

Profiles:

 

Mr. V. RS. Natarajan, Chairman and Managing Director

Mr. V. RS. Natarajan joined BEML Board with effect from 01.12.2002 as Chairman and Managing Director. He holds a Post Graduate Degree in Social Sciences and has been trained in Corporate Management in AOTS, Japan. Prior to joining BEML Board as the Chairman and Managing Director, he has varied corporate experience in both the public and the private sectors. His past employments include Lakshmi Group, Blue Star Limited, Binny Limited, Bharat Gold Mines Limited and Electronics Corporation of India Limited. Mr. Natarajan has been awarded the Individual Fellowship of Indian Institute of Production Engineers for outstanding contribution to production and productivity in June 2006; conferred Outstanding Chief Executive award for the year 2005 by the National Council of Indian Institute of Industrial Engineering in September 2006 and an IT Excellence Award as business head of the IT Business Division of ECIL, Hyderabad from the Hon'ble President of India Dr. APJ Abdul Kalam in the year 2002. Mr. Natarajan is a member of the Executive Committee of SCOPE, New Delhi and is the Chairman of Southern Region, SCOPE; the Chairman, Mining and Construction Equipment Division, Confederation of Indian Industry; Chairman of the Defence Committee FICCI; Chairman of the Society of Defence Technologists; Chairman, Management Council for Combat Engineering, Ministry of Defence. He is also the Chairman of the Board of Directors of BEML Midwest Limited and Vignyan Industries Limited.

 

 

Mr. P. Dwarakanath, Director (Metro and Railway Business)

Mr. P. Dwarakanath has been appointed as Director (Metro and Railway) and a member of the Board of Directors of BEML Limited on 01.03.2008. Mr. P. Dwarakanath is a Graduate in Mechanical Engineering from National Institute of Technology, Warangal. Prior to the present assignment, he was heading BEML Bangalore Complex as Chief General Manager. The take over of Mr. P. Dwarakanath assumes importance particularly with regard to the Metro and Rail Business of the Company in view of the upcoming Mass Rapid Transport System Projects on large scale in various metro cities, especially with regard to Metro Rails and High-Speed Trains.

 

Mr. M. Pitchiah, Director (Finance)

Mr. M. Pitchiah has been appointed as Director (Finance) and a Member of Board of Directors of BEML LIMITED, a Public Sector Undertaking under the Ministry of Defence on 14.06.2008. Mr. Pitchiah is a Chartered Accountant and carries with him vast experience of around 30 years in various Finance functions of HMT, HAL and BEML. Prior to the present appointment, he had been working as Chief General Manager (Finance), BEML LIMITED at the Corporate Office. Mr. Pitchiah, taking over as Director (Finance) assumes importance in view of BEML’s Corporate Vision of becoming a Billion Dollar Company by FY 2013-14 with major expansion plans in all its three major business domains - Mining and Construction, Defence and Rail and Metro - to achieve the target.

 

Dr. M. Nellaiappan, Director (Human Resource)

Dr. M. Nellaiappan has been appointed as Director (Human Resource) and a Member of Board of Directors of BEML LIMITED, a Public Sector Undertaking under the Ministry of Defence on 23.03.2009. Dr. M. Nellaiappan holds post graduate qualifications in Social Work, Personnel Management and Industrial Relations and Finance and PhD in Business Administration. Prior to joining BEML, he had served KPCL (A Government of Karnataka Undertaking), for 36 years in various positions and was Director (HR) in that Company in the last 4 years.

 

 

Mr. C. N. Durgesh, Director (Mining and Construction Business)

Shri C.N.Durgesh has taken over as Director (Mining and Construction) of BEML Limited, a Public Sector Undertaking under the Ministry of Defence. Mr. Durgesh, a B.Tech Mechanical Engineering graduate from JNT University and has done M.Tech in Industrial Engineering in 1979 at Sri Venkateswara University, Tirupati. He has joined BEML in 1987 as Manager and elevated to the present position after serving in various capacities in production and marketing areas of the company. Till recently he was Executive Director at BEML KGF Complex.

 

 

Mr. P. R. Naik, Director (Defence Business)

Mr. P.R. Naik has been appointed as Director (Defence Business) and Member of the Board of Directors of Subject, a Public Sector Undertaking under the Ministry of Defence. He will be taking charge on 01.07.2011. Mr. Naik is a Mechanical Engineer from Birla Institute of Technology and Science (BITS), Pilani and an Alumnus of the IIM, Kolkata. Prior to this Mr. Naik was with L and T and worked in various capacities in production and marketing areas. Hitherto he was Executive Director (Marketing) in the company.

 

 

Partners:

 

Defence Products

 

Tatra Sipox, UK

Heavy Duty Trucks and Recovery Vehicles

EURO-II Engines for 6x6 and 8x8 Vehicles

Pearson Engineering Limited., UK

Engineering Mine Ploughs

Surface Clearance Devices

Bumar Limited., Poland

Armoured Recovery Vehicles

Mine Laying Vehicles

Mine Scattering Vehicles (Kroton)

Vehicles for PECHORA Project

DMD GROUP a.s., Slovak Republic

Self Propelled Wheeled Gun

WFEL, UK

M18 Dry Support Bridge on BEML - TATRA Vehicles

TDA Armements S.A.S., France

Self Propelled Mine Burrier to handle HPD-2 and
Adrushi Anti-Tank Mines

General Dynamics Land Systems, Canada

Light Armoured Vehicles
DURO III 4x4, DURO III 6x6 and DURO APV (4x4 Armoured Patrol Vehicles) with ballistic and mine protection

Rail and Metro Products

 

Rotem Company, Korea

EMU Metro Coaches

MWL, Brazil

Wheelsets, Wheels and Axles

MTU Detroit Diesel India Private Limited., India

Rail Car Power Packs for SPART, Diesel Engines

Mining and Construction Products

 

Bucyrus International Inc., USA

Walking Draglines and Rope Shovels

Crossmobil GmbH, Germany

Trailers

Xiamen Loader Co. Limited., China

Wheel Loaders

HZM Industrial Ltda, Brazil

Parts, Aggregates, Sub-Structures and Assemblies

Tatra Sipox, UK

Hemang 28 Tonne Tipper

Engines

 

Heinzmann GmbH, Germany and ARAI, Pune

CRDI for BEML Engines

e-Engineering Servcies

 

Ingersoll Rand, USA

e-Engineering Services

 

 

Rail and Metro Business

In recent years, BEML Limited has forayed into high-tech Metro Trains deployed for intra-city commuting. BEML is expanding its infrastructure to meet the greater needs of metro projects coming up in the country. Also, BEML supplies equipment to Indian Railways which include Integral Rail Coaches, Overhead Electric Inspection Cars, Postal Vans, AC/DC Electric Multiple Units, D-EMUs, Utility Track Vehicles, Track Laying Equipment, Broad-Gauge Railbus, Treasury Vans, Spoil Disposal Units etc.

 

Mining and Construction Business

BEML Limited offers a comprehensive and diverse range of mining machinery for both opencast and underground mines. BEML produces machines such as Electric Rope Shovels, Hydraulic Excavators, Bulldozers, Wheel Loaders, Wheel Dozers, Dump Trucks, Motor Graders, Pipe Layers, Tyre Handlers, Water Sprinklers and Backhoe Loaders. Besides, BEML also manufactures mammoth Walking Draglines for cost-effective operations in the opencast mines. BEML has ventured into underground mining with products such as Side Discharge Loader, Load Haul Dumper, Winch, Winder, Granby Car, Skip etc. The boom in the mining industry has opened up new avenues for BEML in contract mining.

 

BEML has formed a joint venture company with its partners, Midwest Granite Limited and Pt. Sumber Mitra Jaya, Indonesia to take up contract mining within the country and overseas. The joint venture company is called BEML-Midwest Limited and the company will bid for coal and other mining contracts in India and abroad.

 

Defence Business

Being India’s leading defence equipment manufacturer, BEML Limited keeps the Indian Army and other defence forces abreast with state-of-the-art military equipment. The company manufacture variants of Tatra vehicle for all terrain operations including Bridge Layer, Field Artillery Tractor, Medium and Heavy Recovery Vehicle, Pontoon Mainstream Bridge Systems, Crash Fire Tenders, Mobile Mast Vehicle, etc. BEML also supplies Engineering Mine Ploughs, Tank Transportation Trailers, Weapon Loading equipment, Armoured Recovery Vehicle, Milrail Coaches and Wagons apart from Aircraft Weapon Loading Trolley and Aircraft Towing Tractor. BEML plays a stellar role in the country’s Integrated Guided Missile Development Project by supplying ground support vehicles. The company has also created a world class test track at its KGF Complex to test defence equipment and vehicles.

 

Marketing and Sales

BEML Limited has nationwide marketing network for sales and service of construction equipment spread across 22 States, the National Capital Region and 2 Union Territories.

 

Apart from the domestic market penetration, BEML’s machines reach over 52 countries worldwide covering Asia, Africa, Europe, Latin America and the Middle East. With the plans to increase global presence, BEML has set up overseas office and entering strategic alliances. Shoring up its revenues in the International Business is an immediate priority to BEML. It has established its international offices in China and warehouse at Malaysia. BEML has already established marketing base in Brazil, which will be followed by an assembly plant.

 

Application Engineering

BEML offers application engineering to its customers, which includes preparation of pre-feasibility reports, equipment selection studies, total fleet optimization solutions and customization of equipment. Recommendation-for-User-Profit (RUP) studies enable customers to improve machine productivity and reduce operating costs.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]             INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]             Court Declaration :

No 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.44.53

UK Pound

1

Rs.71.91

Euro

1

Rs.62.98

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

10

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

 

81

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.