Business
information report
1. Summary Information
|
|
|
Country |
India |
|
Company Name |
ISGEC HEAVY
ENGINEERING LIMITED |
Principal Name 1 |
Mr. Ranjit Puri |
|
Status |
Good |
Principal Name 2 |
Mr. C R Thompson |
|
|
|
Registration # |
05-000097 |
|
Street Address |
Radaur Road, Yamuna Nagar – 135 001, Haryana |
||
|
Established Date |
23.01.1933 |
SIC Code |
-- |
|
Telephone# |
91-1732-307210/217/307363/307611 |
Business Style 1 |
Manufacturer and
Traders of Sugar, Ingots, Steel Casting, Pressure Vessel and Heat Exchanger,
etc. |
|
Fax # |
91-1732-250991/250250/251495 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Pressure Vessels |
|
|
# of employees |
500[ Approximately] |
Product Name 2 |
Mechanical Presses |
|
Paid up capital |
Rs. 73,695,400 |
Product Name 3 |
Boilers |
|
Shareholders |
Bodies Corporate 43.35% |
Banking |
State Bank of
Patiala |
|
Public Limited Corp. |
-- |
Business Period |
78 years |
|
IPO |
-- |
International Ins. |
- |
|
Public |
-- |
Rating |
A (65) |
|
Related
Company |
|||
|
Relation
|
Associates |
Company
Name |
Himachal Polyolefines Limited |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
7,101,941,000 |
Current Liabilities |
9,989,888,000 |
|
Inventories |
3,667,451,000 |
Long-term Liabilities |
1,794,129,000 |
|
Fixed Assets |
2,886,165,000 |
Other Liabilities |
64,614,000 |
|
Deferred Assets |
0 |
Total Liabilities |
11,848,631,000 |
|
Invest& other Assets |
2,343,793,000 |
Retained Earnings |
4,077,024,000 |
|
|
0 |
Net Worth |
4,150,719,000 |
|
Total Assets |
15,999,350,000 |
Total Liab. & Equity |
15,999,350,000 |
|
Total Assets (Previous Year) |
|
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
17,480,796,000 |
Net Profit |
820,327,000 |
|
Sales(Previous yr) |
16,999,125,000 |
Net Profit(Prev.yr) |
511,332,000 |
MIRA
INFORM REPORT
|
Report Date : |
02.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
ISGEC HEAVY
ENGINEERING LIMITED |
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|
|
|
Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
23.01.1933 |
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|
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Com. Reg. No.: |
05-000097 |
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|
|
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Capital
Investment / Paid-up Capital : |
Rs.73.695 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L23423HR1933PLC000097 |
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|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
RTKS05672C |
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PAN No.: [Permanent
Account No.] |
AAACT5540K |
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Legal Form : |
A Public Limited
Liability Company. The company’s
shares are listed on Stock Exchanges |
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Line of Business : |
Manufacturer and
Traders of Sugar, Ingots, Steel Casting, Pressure Vessel and Heat Exchanger,
etc. |
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|
|
|
No. of Employees
: |
500[ Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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|
Maximum Credit Limit : |
USD 16600000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-1732-307210/217/307363/307611 |
|
Fax No.: |
91-1732-250991/250250/251495 |
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E-Mail : |
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|
Website : |
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Location : |
Owned |
|
|
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|
Corporate Office : |
A-4, Sector-24,
Noida – 201 301, Uttar Pradesh |
|
Tel. No.: |
91-120-241 1289/
241 1290 |
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Fax No.: |
91-120-241 2250 |
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Factory : |
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Plant Location : |
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Branches : |
Chennai ‘ Tel No.:
91-44-28297957/28297351 Fax No.:
91-44-28297375 Email ID: isgec@vsnl.com Mumbai ‘ Tel No.:
91-22-22662374/22665154 Fax No.:
91-22-22661899 Email ID: isgecbom@vsnl.com Also Located at :
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International Offices : |
USA
|
DIRECTORS
As on 30.09.2010
|
Name : |
Mr. Ranjit Puri |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. C R Thompson |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Vinod K
Nagpal |
|
Designation : |
Director |
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Address : |
15, Ishwar Nagar, |
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|
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|
Name : |
Mr. Tahir Hasan |
|
Designation : |
Director |
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|
Name : |
Mr. Aditya Puri |
|
Designation : |
Managing Director |
|
Address : |
D-860, New Friends Colony, |
|
Qualification
: |
B. A. (Hons), B.A. (CANTAB), ECON from |
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|
|
|
Designation : |
Director |
|
Qualification
: |
BSC, BE |
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|
|
|
Name : |
Mr. Arun Kathpalia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Nina Puri |
|
Designation : |
Whole time Director |
|
Qualification
: |
B.A. Honours
(History) - |
KEY EXECUTIVES
|
Name : |
Mr. S. K. Khorana |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
1118408 |
15.18 |
|
Bodies Corporate |
3194330 |
43.35 |
|
Sub Total (A)
(1) |
4312738 |
58.53 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
600 |
0.01 |
|
Financial Institutions / Banks |
2420 |
0.03 |
|
Central Government/State Government |
1000 |
0.01 |
|
Foreign Institutional Investors |
1400 |
0.02 |
|
Sub Total (B)
(1) |
5420 |
0.07 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
761.966 |
10.34 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
1063202 |
14.43 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
1226.214 |
16.64 |
|
Sub Total |
3051382 |
41.41 |
|
(B) = (B) (1) + (B)
(2) |
3056802 |
41.48 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
|
Total (A) + (B) +(C) |
7369540 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and
Traders of Sugar, Ingots, Steel Casting, Pressure Vessel and Heat Exchanger,
etc. |
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|
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Products : |
It’s product
range includes :- Pressure
Vessels and Heat Exchangers
Shell and Tube Heat
Exchangers
Pressure Vessels
Boiler Drums
Reactors
Columns and Towers
Boiler Pressure Parts
Galvanising Baths on Kettles
Fume Hoods Presses
Straight Side
Presses-Mechanical
Straight Side
Presses-Hydraulic
‘C’ Frame Presses-Mechanical Boilers
Dump Grate Boilers
Travelling Grate Boilers
Atmospheric Fluidised Bed
Combustion Boiler (AFBC)
Circulating Fluidised Bed
Combustion Boiler (CFBC)
Oil/Gas Fired Boilers
Waste Heats Recovery Boilers
Deaerators
Spares Steel
Castings
Hydro Turbine Castings
Gas Turbine Castings
Steam Turbine Castings
Valve Castings
Mn Steel Castings
Ni-Hard Castings
Pump Castings
General Castings Sugar
Plants and Machinery
Complete Cane Sugar Plants
High Performance Cane Mills
Process House Equipment
Bagasse Fired Boilers
Spares Iron
Castings
Castings for Pump and
Compressor Industry
Castings for Chemical and Dye
Stuff Industry
Castings for Soda Ash
Industry
Castings for Tool and Dies
Industry
Castings for Machine Tools
Industry
Castings for Steel Plant
Industry
Castings for Sugar Industry Liquified
Gas Containers General
Fabrication
Custom Job Work (Heavy
Engineering Equipment as per client’s Desings and Drawings) |
PRODUCTION STATUS (AS ON 30.09.2010):-
|
Particulars |
Unit |
Actual
Production |
|
Steel Structural,
Iron and Steel Pipes and Agricultural Implement |
MT |
2660 |
|
C. I. Castings |
MT |
2819 |
|
Mechanical
Presses |
Nos. |
97 |
|
Chlorine and Other Liquefied Gas
Containers |
Nos. |
4379 |
|
Hydraulic Presses |
Nos. |
19 |
|
Pressure Vessels,
Columns and heat Exchangers |
MT |
8806.05 |
|
Ingots |
MT |
1351.515 |
|
Steel Casting |
MT |
4506.487 |
GENERAL INFORMATION
|
No. of Employees : |
500
[Approximately] |
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Bankers : |
v
State
Bank of v
Standard
Chartered Bank v
State
Bank of Travancore v
State
Bank of v
State
Bank of v
Punjab
National Bank v
Corporation
Bank v
Indian
Overseas Bank v
EXIM
Bank v
Induslnd
Bank v
HSBC
Bank v
ICICI
Bank v
State
Bank of v
ABN
Amro Bank v
State
Bank of v
ING
Vysya Bank v
Royal
Bank of |
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Facilities : |
Note: 1. Secured by
pledge/hypothecation of inventories and by a charge on book debts and other
assets of the company. 2. Amount of Rs.454.123 millions (previous year Rs. 567.730 millions)
secured by pari passu first charge on the fixed assets both present and
future of unit at Dahej, 3. Amount repayable within one year Rs.
172.820 millions (Previous year Rs. 113.608 millions).
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Banking
Relations : |
Good |
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Auditors : |
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||||||||||||||||||||||||||||||
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Name : |
S.S.
Kothari Mehta and Company Chartered
Accountants |
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Units : |
v
ISGEC v
Isgec
John Thompson v
Uttar
Pradesh Steels |
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|
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Associates: |
v
Himachal
Polyolefines Limited |
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|
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Subsidiaries |
v
Saraswati
Sugar Mills Limited v
ISGEC
Covema Limited v
ISGEC:
Exports Limited v
ISGEC
Engineering and Projects Limited |
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|
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Joint Venture : |
v
ISGEC
Haco Metal Forming Machinery Private Limited |
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|
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Entities over which Directors and their relatives can exercise
significant influence |
|
CAPITAL STRUCTURE
As on 30.09.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8,500,000 |
Equity Shares |
Rs.10/- each |
Rs.85.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7,369,540 |
Equity Shares |
Rs.10/- each |
Rs.73.695
millions |
|
|
|
|
|
Notes
1. Issued, Subscribed & Paid-up Capital include equity Shares of Rs. 10/- each allotted without
payment of cash in earlier years as under:
|
|
Equity Shares (Nos.) |
Equity
Shares (Nos.) |
|
Bonus shares by
Capitalisation of Reserve's |
6251910 |
6251910 |
|
Under Schemes of
Amalgamation of |
|
|
|
Indian Sugar and
General Engineering Corporation Limited (since dissolved) |
69770 |
69770 |
|
Isgec John Thompson
Limited (since dissolved) |
70 |
70 |
|
Uttar Pradesh
Steels Limited (since dissolved) |
9270 |
9270 |
|
Compensatory
shares to Promoter shareholders in extinguishment of their right to
additional dividend |
30100 |
30100 |
2. 40 Equity Shares
of Rs. 10 / - each are yet to be allotted by way of Bonus Shares on receipt of
fractional Certificates, value of which has been shown under capital reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
73.695 |
73.695 |
73.695 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4077.024 |
3331.616 |
2893.979 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4150.719 |
3405.311 |
2967.674 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1040.377 |
809.657 |
1980.531 |
|
|
2] Unsecured Loans |
753.752 |
569.682 |
355.818 |
|
|
TOTAL BORROWING |
1794.129 |
1379.339 |
2336.349 |
|
|
DEFERRED TAX LIABILITIES |
64.614 |
56.915 |
65.656 |
|
|
|
|
|
|
|
|
TOTAL |
6009.462 |
4841.565 |
5369.679 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2886.165 |
2299.133 |
2268.187 |
|
|
Capital work-in-progress |
135.847 |
112.183 |
145.395 |
|
|
|
|
|
|
|
|
INVESTMENT |
2207.946 |
925.702 |
804.420 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3667.451
|
2467.224
|
3682.985
|
|
|
Sundry Debtors |
5287.085
|
4239.772
|
4391.803
|
|
|
Cash & Bank
Balances |
405.941
|
443.455
|
164.695
|
|
|
Other Current
Assets |
1.885
|
2.252
|
4.839
|
|
|
Loans &
Advances |
1407.030
|
831.385
|
881.671
|
|
Total
Current Assets |
10769.392
|
7984.088
|
9125.993
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3928.251
|
2455.030
|
6055.214
|
|
|
Current
Liabilities |
4899.766
|
2915.622
|
143.758
|
|
|
Provisions |
1161.871
|
1108.889
|
775.344
|
|
Total
Current Liabilities |
9989.888
|
6479.541
|
6974.316
|
|
|
Net Current Assets |
779.504
|
1504.547
|
2151.677
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6009.462 |
4841.565 |
5369.679 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
17480.796 |
16999.125 |
12897.072 |
|
|
|
Other Income |
514.962 |
161.890 |
128.234 |
|
|
|
Profit from Farm Operations |
0.542 |
0.313 |
0.025 |
|
|
|
TOTAL (A) |
17996.300 |
17161.328 |
13025.331 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods purchased for resale |
8232.299 |
6413.488 |
5284.793 |
|
|
|
Erection & Civil Cost |
1187.469 |
468.893 |
156.290 |
|
|
|
Manufacturing expenses |
5025.298 |
5503.034 |
5294.682 |
|
|
|
Employee cost |
1336.506 |
1115.440 |
981.502 |
|
|
|
Administration & Selling expenses |
984.160 |
1655.699 |
1384.057 |
|
|
|
Increase/(Decrease) in stock of
Finished goods and Work-in-progress |
[513.641] |
586.100 |
[1063.837] |
|
|
|
TOTAL (B) |
16252.091 |
15742.654 |
12037.487 |
|
|
|
|
|
|
|
|
Less |
PROFIT/LOSS
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1744.209 |
1418.674 |
987.844 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
283.621 |
334.994 |
291.814 |
|
|
|
|
|
|
|
|
|
|
PROFIT/LOSS
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1460.588 |
1083.680 |
696.030 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
307.362 |
283.236 |
213.808 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
BEFORE TAX (E-F) (G) |
1153.226 |
800.444 |
482.222 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
332.899 |
289.112 |
208.698 |
|
|
|
|
|
|
|
|
|
|
PROFIT / LOSS
AFTER TAX (G-I) (J) |
820.327 |
511.332 |
273.524 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2031.542 |
1645.038 |
1418.758 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
82.033 |
51.133 |
30.000 |
|
|
|
Proposed Dividend |
7.370 |
73.695 |
14.739 |
|
|
|
Interim Dividend |
66.325 |
0.000 |
0.000 |
|
|
|
Corporate
Dividend Tax |
1.224 |
0.000 |
2.505 |
|
|
BALANCE CARRIED
TO THE B/S |
2694.917 |
2031.542 |
1645.038 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
2889.311 |
5148.186 |
3649.362 |
|
|
TOTAL EARNINGS |
2889.311 |
5148.186 |
3649.362 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1175.220 |
1226.364 |
1627.395 |
|
|
|
Spare Parts |
280.364 |
160.754 |
131.969 |
|
|
|
Goods for Resale |
138.624 |
109.536 |
11.777 |
|
|
|
Capital Goods |
102.276 |
90.244 |
136.891 |
|
|
TOTAL IMPORTS |
1696.484 |
1586.898 |
1908.032 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
112.36 |
68.20 |
46.74 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
|
4364.300 |
5341.000 |
5713.200 |
|
Total Expenditure |
|
4104.800 |
4981.100 |
5317.100 |
|
PBIDT (Excl
OI) |
|
259.500 |
359.900 |
396.100 |
|
Other Income |
|
52.000 |
47.500 |
39.000 |
|
Operating
Profit |
|
311.500 |
407.400 |
435.100 |
|
Interest |
|
44.000 |
44.900 |
42.800 |
|
Exceptional
Items |
|
0.000 |
0.000 |
0.000 |
|
PBDT |
|
267.500 |
362.500 |
392.300 |
|
Depreciation |
|
88.300 |
93.000 |
97.500 |
|
Profit
Before Tax |
|
179.200 |
269.500 |
294.800 |
|
Tax |
|
45.000 |
79.000 |
92.600 |
|
Reported PAT |
|
134.200 |
190.500 |
202.200 |
|
Extraordinary Items |
|
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
0.000 |
|
Net Profit |
|
134.200 |
190.500 |
202.200 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2010 |
30.09.2009 |
30.09.2008 |
|
PAT / Total Income |
(%) |
4.56 |
2.98 |
2.10 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.60 |
4.71 |
3.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.44 |
7.78 |
4.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28 |
0.23 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.84 |
2.31 |
3.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.08 |
1.23 |
1.31 |
LOCAL AGENCY FURTHER INFORMATION
Financial Results :
In spite of the recession, which continued during the first
quarter, the Company had an increase in turnover for the 8th year in succession.
The turnover is Rs.18099.000 millions against Rs.17653.100 millions in the
previous year. Profit before tax is also higher at Rs. 1153.200 millions
against Rs. 800.400 millions in the previous year.
The financial position of the Company has been excellent. The
Company has invested Rs.1682.200 millions in Liquid Plus or Fixed Maturity
Plans of Mutual Funds and Bank Deposits, which in their view have adequate
security.
The subsidiary company, Saraswati Sugar Mills Limited, has however
shown a marginal loss during the year. Higher cane prices had to be paid in
view of shortage and consequent competition for cane. Sugar prices, which were
expected to remain at a reasonable level, decreased due to large scale imports
of sugar and Government’s regulatory steps. The working of the sugar factory
(recovery and total quantity of cane crushed) on the other hand, was better
than last year. No silver lining is presently seen in the current year as the
All India sugar production is expected to be higher than All India consumption.
OPERATIONS:
The lower order
booking as a result of recession in last year had an impact on the working
during the first quarter of the year. The shops, though almost fully occupied,
executed orders with low margins. The situation improved in the subsequent
quarters.
The Company had a
record order booking this year – both on the domestic and export fronts.
The market for
Boilers and Sugar Machinery continued to be good and the Company booked a
number of export orders. These include Atmospheric Fluidised Bed Boiler burning
coffee ground waste for supply to
As for Sugar
Machinery, the Company secured a high value order in
The Process
Equipment Division continued to book orders for large Pressure Vessels and Heat
Exchangers including equipment to be exported to North America and
As regards the
Machine Building Division, with the recovery of the Automotive sector, business
improved and the Company has recently booked good orders for the supply of
Presses. In fact, the Presses business is poised for further growth and the
Company is envisaging the increase of manufacturing capacity to cater to the
expected increase in order booking. In addition to Presses, the Division
continues its business of booking jobbing orders from Steel and other
Industries.
The factory set up
at Bawal near Gurgaon to manufacture Standard Presses, commenced production
during the year.
With regard to
Steel Castings, the order booking is good and the Unit continues to supply
castings to many of the prestigious manufacturers of Thermal Power Equipment
and Hydro Power Equipment in the country. There has been negligible export due
to recession in Europe, which resulted in lowering of prices by Foundries in
The Company has
entered into a License Agreement for Sub-Critical and Super-Critical
Technologies with Foster Wheeler,
As a step towards
technology up-gradation, the Company has signed an agreement with Bosch
Projects,
The Company has
also signed a Technology Agreement with
As the shareholders
are aware, a Joint Venture was formed in the name of ISGEC HACO Metal Forming
Machinery Private Limited along with HACO N.V. Belgium. As the prospects were
not promising, the Board decided to exercise the option to exit from the Joint
Venture in terms of the Memorandum of Understanding.
Management Discussion and Analysis
Management Discussion and Analysis, as required under Clause 49 of the
Listing Agreement, giving further Analysis, Review, Outlook and Threats is
given below:-
a) The Company anticipates growth in both, turnover and number of
customers, during the current year.
b) Seeing Power as a thrust sector, the Company has entered into a
collaboration with Foster Wheeler for the transfer of technology for Pulverised
Coal Fired Sub-Critical Boilers (60 MW to 1 000 MW) and Super-Critical Boilers
(550 MW to 1 000 MW). The entire technology absorption will take a number of
years. The success of the business in these boilers will depend on the pace at
which the Company is able to absorb technology, the cooperation extended by
Foster Wheeler, the buying pattern of the customers (whether they buy boilers
in isolation or they go for a power plant on EPC basis) and also the extent of
imports that take place, primarily from China.
c) The Dahej plant is fully operational as of now. It’s future will
depend on how many orders it can secure for large and complex Process
Equipment. This in turn depends not only on the requirement of the Oil and Gas
Industries, but also the various approvals that the Plant needs to secure.
There is also intense competition in this sector from the Koreans.
d) If the buoyant growth in the Automobile Sector continues, the Company
is reasonably confident that the demand for Presses manufactured by the Company
shall increase. The challenge here is to keep abreast of changing technologies.
e) The factory set up at Bawal near Gurgaon to manufacture Standard
Presses, commenced production during the year.
f) The market for Sugar Machinery and Boilers for Sugar Plants on the
domestic front will largely depend on the health of the Sugar Industry which is
not likely to be very good in the coming year. The demand for other Boilers is
likely to be buoyant.
g) In view of aforesaid factors and slow recovery world over, the
prospects for exports are uncertain.
h) The foreign exchange market continues to suffer from wide
fluctuations. Greater exposure of the Company to exports means that the risk
from these fluctuations has increased.
i) Any abnormal increase in steel prices is likely to have an adverse
impact on the Company. Industrial
relations remained peaceful.
Contingent
Liabilities :
(Rs.
In Millions)
|
Particulars |
30.09.2010 |
30.09.2009 |
|
Claims against the Company not acknowledged
as debts (including sales tax under dispute) |
84.336 |
86.146 |
|
Guarantees furnished by the bankers on
behalf of the Company and counter indemnity furnished by the Company to
bankers for the same amount. *Includes Performance Bank Guarantees given
on behalf of subsidiary company ISGEC Covema Limited |
8759.626 27.625 |
4930.947 12.217 |
|
Bills discounted with Banks / Financial
Institutions outstanding at the year end |
0.000 |
34.157 |
|
Bonds executed in favour of President of
India against EPCG license |
174.035 |
191.745 |
AS PER WEBSITE :
History
1933 The Saraswati Sugar Syndicate Ltd. (now Isgec Heavy Engineering Ltd.) is established.
1946 Indian Sugar and General Engineering Corporation (Isgec) is established to address the need for an Indian Capital Goods Industry, post nation’s independence.
1947 Isgec
shifts Registered Office from
1947 Saraswati Sugar Mills (SSM) is established at Yamunanagar.
1959 Agreement
with John Thompson Ltd.,
1963 The Saraswati Sugar Syndicate Ltd. name changed to Saraswati Industrial Syndicate Ltd. (SIS Ltd.) and Isgec is amalgamated with SIS Ltd.
1964 Collaboration agreement with John Thompson Water Tube Boilers Ltd. for the manufacture of high pressure boilers having output in excess of 50 MW.
1964 First Ton Container is manufactured.
1965 Isgec John Thompson Ltd. (IJT) is formed for designing, supplying, erecting and providing after sales service of boilers.
1967 Licenses
received for manufacture of Hydraulic Machinery in collaboration with John Shaw
and Sons (
1967 Presses Division is formed.
1968 Production
of Hydraulic Presses is started with technical knowhow from John Shaw,
1968 Presses
Division executes first order of 25T Hydraulic Press supplied to Carbon
Products,
1969 Items manufactured for the first time:
» Heavy Hydraulic Presses
» Variable Speed Rotators
» Large Traveling Grate Stoker
» Sophisticated and intricate Alloy Iron Castings
» Horton Sphere for the storage of Liquid Petroleum Gas
1970 Licenses received for manufacture of Plate Bending Rolls, Galvanizing Baths, Fabrication of High Pressure Piping and Heat Exchangers.
1974 License issued license for manufacture of Water Treatment Plant.
1981 Company
acquires U.P. Steels – a steel plant set up by Kobe Steel Group,
1985 Production
of Mechanical Presses is started with technical knowhow from Rovetta Presse
Spa,
1988 IJT forays into Fluidized Bed Combustion technology.
1995 Isgec, Yamunanagar receives ISO-9001 certification.
1995 Manufacture
Ladle Turrets for the Continuous Caster of the Rourkela Steel Plant – a first
for
1998 Licensing
agreement for CFBC Boilers upto 60 MW with Foster Wheeler,
1998 Licensing
agreement with
1999 Company
Head Office shifts to Noida in
2001 Receive
patent for Liquefied Gas Containers from
2002 Receive
patent for Liquefied Gas Containers from
2004 Overseas
offices open in
2004 Receive
second patent for Liquefied Gas Containers from
2006 Technology
License Agreement with ABB Lummus Heat Transfer,
2007 IJT Design office starts at Chennai.
2007 Receive
patents for Liquefied Gas Containers from
2007 Company turnover crosses Rs.1000 Crores
2008 New plant
at Dahej, Gujarat in
2008 Receive
PIE certification, necessary for marketing Liquefied Gas Containers in
2008 Company is listed in Group B of the Bombay Stock Exchange.
2008 Collaboration
agreement with Foster Wheeler,
2009 New
factory for Standard Presses is set up at Bawal, near Gurgaon (Haryana)
2009 Agreement
with
2009 Company turnover crosses Rs.1500 Crores.
2010 Technology
Agreement with
2010 Licensing agreement with Foster Wheeler for technology transfer to engineer, design, manufacture and sell PC fired sub-critical and super-critical boilers for 60-1000 MW unit capacities.
2010 First
barge operation by Isgec. Vessels exported to
2011 IJT Design office is started at Pune.
2011 Largest Vessel (Coke Drums for installation at MRPL Refinery) manufactured at Dahej and dispatched by barge.
2011 Company name changes from Saraswati Industrial Syndicate Ltd. to Isgec Heavy Engineering Ltd. All businesses consolidated and now marketed under a common brand name – Isgec.
Fixed assets
Land (Free and Lese)
Building and Road
Plant and Machinery
Furniture and Fixture
Vehicles
Technical Know-how
Office Equipment
Live Stock
Unaudited Financial Results of three
months Ended 30.06.2011
(Rs In Millions)
|
Particulars |
3 Months ended 30.06.2011 |
Year to date figures for
nine months ended 30.06.2011 |
|
|
|
|
|
1 a Gross Sales |
5821.700 |
15761.600 |
|
b Less Excise
duty |
207.900 |
574.000 |
|
c Net Sales/Income
from Operations |
5613.800 |
15187.600 |
|
D Other Operating
Income |
99.400 |
230.900 |
|
E Total Income |
5713.200 |
15418.500 |
|
2 Expenditure |
|
|
|
a
Increase/decrease in stock in trade and work in progress |
[0.200] |
[770.000] |
|
b Consumption of
raw materials |
1335.200 |
4017.300 |
|
c Purchase of
traded goods |
2391.100 |
6089.700 |
|
d Employees cost |
410.900 |
1250.200 |
|
e Depreciation |
97.500 |
278.800 |
|
f Other
expenditure |
1180.100 |
3815.700 |
|
Total |
5414.600 |
14681.700 |
|
3 Profit from
Operations before Other Income, Interest and Exceptional items (1-2) |
298.600 |
736.800 |
|
4 Other Income |
39.000 |
138.500 |
|
5 Profit before
Interest and Exceptional Items (3+4) |
337.600 |
875.300 |
|
6 Interest |
42.800 |
131.700 |
|
7 Profit after
Interest but before Exceptional Items (5-6) |
294.800 |
743.600 |
|
8 Exceptional
items |
0.000 |
0.000 |
|
9 Profit from Ordinary Activities before Tax |
294.800 |
743.600 |
|
10 Tax expense |
92.600 |
216.600 |
|
11 Profit from Ordinary Activities after Tax |
202.200 |
527.000 |
|
12 Exceptional
items |
0.000 |
0.000 |
|
13 Net Profit for
the period (11-12) |
202.200 |
527.000 |
|
14 Paid-up Equity
Share Capital (Face value of Rs.10/- each) |
73.700 |
73.700 |
|
15 Reserve
excluding Revaluation Reserves (as per balance sheet) of previous accounting
year |
- |
- |
|
16 Earnings
Per Share (EPS) |
|
|
|
(a) Basic and diluted EPS before Extraordinary items for the period, for
the year to date and for the previous year (not to be annualized) (Rs.) |
27.23 |
69.67 |
|
(b) Basic and diluted EPS after Extraordinary items for the period,
for the year to date and for the previous year (not to be annualized) (Rs.) |
27.23 |
69.67 |
|
17 Public
Shareholding |
|
|
|
- Number of
shares |
3056802 |
3056802 |
|
- Percentage of
shareholding |
41.48 |
41.48 |
|
18 Promoters and
Promoter Group Shareholding |
|
|
|
a Pledged/Encumbered |
|
|
|
- Number of
shares |
|
|
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
|
|
|
- Percentage of
shares (as a % of the total share capital of the company) |
|
|
|
b Non-encumbered |
|
|
|
- Number of
shares |
4312738 |
4312738 |
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of
shares (as a % of the total share capital of the company) |
58.52 |
58.52 |
Note:
1.
The Company has only one segment of Engineering
business. Hence segment reporting is not applicable.
2.
No investor complaint were pending at the beginning
and at the end of the quarter. During the quarter, no complaints was received.
3.
The above results for the quarter ended 30th June,
2011 were reviewed by the Auditors and Audit Committee and approved by the
Board of Directors in its meeting held on 12.08.2011.
Figures have been regrouped/rearranged where ever necessary.
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] 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.49.08 |
|
|
1 |
Rs.78.78 |
|
Euro |
1 |
Rs.67.76 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
65 |
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.