MIRA
INFORM REPORT
|
Report Date : |
01.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
KIRLOSKAR OIL ENGINES LIMITED (w.e.f. 02.06.2010) |
|
|
|
|
Formerly Known
as : |
KIRLOSKAR ENGINES INDIA LIMITED |
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|
|
Registered
Office : |
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|
Country : |
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|
Financials (as
on) : |
31.03.2011 |
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|
|
|
Date of
Incorporation : |
12.01.2009 |
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|
|
|
Com. Reg. No.: |
11-133351 |
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|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.291.260 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U29120PN2009PLC133351 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEK05398B |
|
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|
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PAN No.: [Permanent Account No.] |
AAACD3590P |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange |
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|
Line of Business
: |
Manufacturer of the wide range of Diesel Engines, Diesel Generating
Sets and Engine Bearings and Engine Valves. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 35500000 |
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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 and reputed company having fine track.
Financial position of the company appears to be sound. Directors are reported
as experienced, respectable and resourceful businessman. Trade relations 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 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Kishor Huprikar |
|
Designation : |
Secretary |
|
Date : |
30.06.2011 |
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-20-25810341 |
|
Fax No.: |
91-20-25813208 |
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E-Mail : |
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Website : |
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|
Factory : |
Located at :
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DIRECTORS
AS ON 09.07.2010
|
Name : |
Mr. Atul Kirloskar |
|
Designation : |
Chairman Cum Managing Director |
|
Address : |
Radha 453, |
|
Date of Birth/Age : |
13.02.1956 |
|
Date of Appointment : |
12.01.2009 |
|
|
|
|
Name : |
Mr. Gautam Kulkarni |
|
Designation : |
Managing Director |
|
Address : |
Yena 1, |
|
Date of Birth/Age : |
30.12.1957 |
|
Date of Appointment : |
12.01.2009 |
|
|
|
|
Name : |
Mr. Rajendra Deshpande |
|
Designation : |
Executive Director |
|
Address : |
Flat No. 704, Tulip Society, Mahaganesh Colony, |
|
Date of Birth/Age : |
07.02.1954 |
|
Date of Appointment : |
12.01.2009 |
|
|
|
|
Name : |
Mr. Rahul Kirloskar |
|
Designation : |
Whole Time Director |
|
Address : |
Lakaki Compound, Model Colony, Pune – 411016, |
|
Date of Birth/Age : |
07.07.1963 |
|
Date of Appointment : |
30.03.2010 |
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|
|
|
Name : |
Mr. Hemendra Kothari |
|
Designation : |
Director |
|
Address : |
Sea View 57, Worli, Sea Face, Mumbai – 400025, |
|
Date of Birth/Age : |
25.08.1946 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Prataprao Pawar |
|
Designation : |
Director |
|
Address : |
Plot No.2, S. No. 131, , |
|
Date of Birth/Age : |
15.10.1944 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Udipi V. Rao |
|
Designation : |
Director |
|
Address : |
3294, 12th A, |
|
Date of Birth/Age : |
04.12.2009 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Rangarajan Srinivasan |
|
Designation : |
Director |
|
Address : |
Dhanya, 126, |
|
Date of Birth/Age : |
10.09.1941 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Naushad Forbes |
|
Designation : |
Director |
|
Address : |
74, |
|
Date of Birth/Age : |
13.05.1960 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Anil Alawani |
|
Designation : |
Director |
|
Address : |
Flat 5, Yashodeep C, Rambaug Colony, Navi Peth Pune – 411030,
Maharashtra, India |
|
Date of Birth/Age : |
24.08.1948 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Lakshmi Narayan |
|
Designation : |
Director |
|
Address : |
133 4th Main Deference Colony, Indira Nagar, |
|
Date of Birth/Age : |
07.09.1946 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Nihal Kulkarni |
|
Designation : |
Director |
|
Address : |
Yena 1 Adwait Nagar, |
|
Date of Birth/Age : |
07.06.1981 |
|
Date of Appointment : |
30.03.2010 |
|
|
|
|
Name : |
Mr. Dattatraya R. Swar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Smita Raichurkar |
|
Designation : |
Secretary |
|
Address : |
Flat No.303, Varnaz, |
|
Date of Birth/Age : |
21.04.1982 |
|
Date of Appointment : |
31.03.2010 |
|
|
|
|
Name : |
Mr. Sanjay D. Parande |
|
Designation : |
Chief Financial Officer |
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 |
17151118 |
11.78 |
|
Bodies Corporate |
73681729 |
50.60 |
|
Sub Total (A)
(1) |
90832847 |
62.37 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
7763422 |
5.33 |
|
Financial Institutions / Banks |
3827777 |
2.63 |
|
Insurance Companies |
6035778 |
4.14 |
|
Foreign Institutional Investors |
17560876 |
12.06 |
|
Sub Total (B)
(1) |
35187853 |
24.16 |
|
|
|
|
|
2. Non Institutions
|
|
|
|
Bodies Corporate |
2248694 |
1.54 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
14173886 |
9.73 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
2859967 |
1.96 |
|
|
|
|
|
Any Others
(Specify) |
326038 |
0.22 |
|
Clearing Members |
98797 |
0.07 |
|
Non Residents |
226739 |
0.16 |
|
Foreign National |
502 |
- |
|
Sub Total (B)
(2) |
19608585 |
13.46 |
|
Sub Total (B) |
54796438 |
37.63 |
|
Total (A) + (B) |
145629285 |
100.00 |
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
|
|
|
|
|
Total (A) + (B) +(C) |
145629285 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of the wide range of Diesel Engines, Diesel Generating
Sets and Engine Bearings and Engine Valves. |
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Product : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Engines between 2.5 HP to 740 HP (a) |
Nos |
710100 |
213525[g] |
213525(g) |
|
Engines above 2400 HP to 10000 HP (a) |
Nos |
26 |
2 |
2 |
|
Generating Sets between 5 KVA to 600 KVA (a) |
Nos |
83800 |
8959 |
8959 |
|
Generating Sets between 1.6 MW to 4.4 MW(a) |
Nos |
14 |
- |
- |
|
Bimetal Bearings (a) , (e) and (f) |
Nos. (000’s) |
105650 |
48890 |
48890 |
|
Bimetal Strips - (a) and ( c) |
MT |
11981 |
3917 |
3917 |
|
Pump Sets (a) |
Nos |
210000 |
- |
- |
|
R Type Engines (d) |
Nos |
8000 |
8000 |
- |
|
Air Compressors up to 1000 cfm |
Nos |
500 |
500 |
- |
|
Diesel /Electric compressors 30 to 2500 cfm |
Nos |
500 |
500 |
- |
|
Garage compressors above 5 HP and parts |
Nos |
250 |
250 |
- |
|
Air receiver, inter coolers, heat exchangers and parts thereof |
Nos |
500 |
500 |
- |
|
Car lifts, washers and lubricants equipments |
Nos |
300 |
300 |
- |
|
Aluminum Castings |
MT |
NA |
300 |
- |
|
Agricultural Implements |
MT |
200 |
200 |
- |
|
Self Priming Pumps |
Nos |
3500 |
3500 |
- |
Note :
a Licensed capacity is given on the basis of IEM ( Industrial Entrepreneurs Memorandum) received by the company till FY 2010-11.
b Most of the plant and machinery being common for different products manufactured by the company and installed capacity being dependent on product mix, which in turn is decided by the actual demand for various products from time to time and also on availing of subcontracting facilities, it is not feasible for the Company to indicate the exact installed capacity. The Company has, however, indicated the installed capacity on the basis of year's Product mix as certified by the Technical Personnel and accepted by Auditors, as correct, being technical matter.
c Includes 3,756 MT for internal consumption. (Previous year - 3,530 MT) d Unit Closed.
e Production quantity represents number of components "meant for sale only" and includes components produced and kept on hold due to technical reason in earlier years and released after inspection which being a technical matter, is certified by technical personnel and accepted by auditors as correct.
f Includes 4,389 Nos.(000's) for internal consumption. (Previous year 4,203 Nos. (000's).
g Includes 2,325 Nos.
for Internal consumption. (Previous year 2,235 Nos.).
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Dalal and Shah Chartered Accountant |
|
Address : |
49/55, |
|
|
|
|
Holding Company : |
Kirloskar Industries Limited |
|
|
|
|
Associates : |
Kirloskar Integrated Technologies Limited (Formerly Known as Kirloskar Kisan Equipment Limited) |
|
|
|
|
Subsidiary Companies : |
·
Cess Investments and Consultants Private Limited ·
Navsai Investments Private Limited ·
Kirloskar Consultants Limited ·
Kirloskar Chillers Private Limited ·
Kirloskar Integrated Technologies Limited [w.e.f.
06.12.2010] ·
Achyut and Neeta Holding and Finance Private
Limited ·
Alpak Investments Private Limited ·
Green Tek Systems India Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200,000,000 |
Equity Shares |
Rs.2/- each |
Rs.400.000 Millions |
|
|
|
|
|
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
145,629,750 |
Equity Shares |
Rs.2/- each |
Rs.291.260
Millions |
|
|
|
|
|
Called up & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
145,629,285 |
Equity Shares |
Rs.2/- each |
Rs.291.259
Millions |
|
|
Share Capital Suspense Account 465 Equity Shares
Rs. 2 each to be issued and allotted to shareholders of erstwhile Shivaji
Works Ltd. on amalgamation according to scheme sanctioned by BIFR, are kept
in abeyance as per the Scheme of Arrangement. |
|
Rs. 0.001 million |
|
|
Total |
|
Rs.291.260 millions |
*Notes :
145,629,750
Equity Shares of Rs.2 each were issued and allotted on 30 April, 2010 (out of
which 465 equity shares of Rs. 2/- each were kept in abeyance) for consideration
other than cash under the Scheme of Arrangement between Kirloskar Industries
Limited (earlier known as Kirloskar Oil Engines Limited - Demerged Company) and
Kirloskar Oil Engines Limited (earlier known as Kirloskar Engines India Limited
- Resulting Company), becoming effective from 31 March 2010, sanctioned by the
Honorable High Court of the Judicature of Bombay.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
291.260 |
291.260 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
8602.804 |
6512.807 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
8894.064 |
6804.067 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
2489.922 |
2695.633 |
|
|
2] Unsecured Loans |
|
0.010 |
0.436 |
|
|
TOTAL BORROWING |
|
2489.932 |
2696.069 |
|
|
DEFERRED TAX LIABILITIES |
|
323.294 |
323.303 |
|
|
|
|
|
|
|
|
TOTAL |
|
11707.290 |
9823.439 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
5906.469 |
5626.471 |
|
|
Capital work-in-progress |
|
193.008 |
124.029 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
2977.537 |
2000.922 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
1385.591 |
1402.961 |
|
|
Sundry Debtors |
|
3817.020 |
3854.363 |
|
|
Cash & Bank Balances |
|
229.420 |
636.553 |
|
|
Other Current Assets |
|
1624.359 |
710.901 |
|
|
Loans & Advances |
|
1197.457 |
1199.709 |
|
Total
Current Assets |
|
8253.847 |
7804.487 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
3303.758 |
3173.507 |
|
|
Other Current Liabilities |
|
704.880 |
1009.587 |
|
|
Provisions |
|
1614.933 |
1549.376 |
|
Total
Current Liabilities |
|
5623.571 |
5732.470 |
|
|
Net Current Assets |
|
2630.276 |
2072.017 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
11707.290 |
9823.439 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
23629.793 |
22185.049 |
|
|
|
Operating Income |
|
539.998 |
424.384 |
|
|
|
Other Income |
|
183.944 |
82.289 |
|
|
|
TOTAL (A) |
|
24353.735 |
22691.722 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
|
14322.499 |
13589.741 |
|
|
|
Employees Cost |
|
1789.188 |
1293.915 |
|
|
|
Manufacturing Expenses |
|
2492.228 |
2101.337 |
|
|
|
Selling and Administrative Expenses |
|
2179.646 |
2096.384 |
|
|
|
Expenses Capitalized |
|
[0.659] |
(0.511) |
|
|
|
TOTAL (B) |
|
20782.902 |
19080.866 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
3570.833 |
3610.856 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
245.618 |
136.432 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
3325.215 |
3474.424 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
848.519 |
839.878 |
|
|
|
|
|
|
|
|
|
|
Exceptional
[Income] / Expenses |
|
37.253 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
2439.443 |
2634.546 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
702.141 |
994.419 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
|
1737.302 |
1640.127 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
796.846 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
|
173.800 |
164.013 |
|
|
|
Proposed Dividend |
|
582.519 |
582.519 |
|
|
|
Tax on Proposed Dividend |
|
94.499 |
96.749 |
|
|
BALANCE CARRIED
TO THE B/S |
|
1683.330 |
796.846 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
1461.664 |
1075.675 |
|
|
|
Other Earnings |
|
1.388 |
22.171 |
|
|
TOTAL EARNINGS |
|
1463.052 |
1097.846 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1027.780 |
1597.278 |
|
|
|
Capital Goods |
|
279.834 |
82.763 |
|
|
TOTAL IMPORTS |
|
1307.614 |
1680.041 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
11.93 |
11.26 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2011 |
|
Type |
|
|
|
1st Quarter |
|
Sales Turnover |
|
|
|
5660.100 |
|
Total Expenditure |
|
|
|
4798.400 |
|
PBIDT (Excl
OI) |
|
|
|
861.700 |
|
Other Income |
|
|
|
61.100 |
|
Operating
Profit |
|
|
|
922.800 |
|
Interest |
|
|
|
59.200 |
|
Exceptional
Items |
|
|
|
0.000 |
|
PBDT |
|
|
|
863.600 |
|
Depreciation |
|
|
|
223.000 |
|
Profit
Before Tax |
|
|
|
640.600 |
|
Tax |
|
|
|
206.000 |
|
Reported PAT |
|
|
|
434.600 |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
434.600 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
|
7.13 |
7.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
10.32 |
11.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
17.23 |
19.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.27 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.91 |
1.24 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.47 |
1.36 |
LOCAL AGENCY FURTHER INFORMATION
Listing Of
Company’s Shares Post Demerger
After the scheme of arrangement for Demerger became effective on 31 March
2011, the Company filed an application with Bombay Stock Exchange Limited
(BSE), Mumbai and National Stock Exchange of India Limited, (NSE) Mumbai for
listing of 145,629,285 equity shares of Rs. 2/- each on 15 June 2010. After
completing the necessary formalities, equity shares of the Company were
permitted for listing and trading on BSE and NSE with effect from 24 December
2010.
Pursuant to the said Scheme, the fractional entitlements arising out of the
issue of shares under the said Scheme were consolidated into 5,915 equity
shares of Rs. 2 each. These shares were sold in the open market at an average
price of Rs. 147.19. The Company is in the process of distributing the net sale
proceeds (after deduction of the expenses incurred) to the members respectively
entitled to the same in proportion to their fractional entitlements, as far as
practicable along with the final dividend received on the said consolidated
equity shares, for the period ended 31 March 2010.
World Economy
RBI has projected growth of global economy of 4.4% for the calendar year
2011 and 4.5% for 2012. The rising commodity prices and inflationary pressures
would be the cause of concern for emerging and developing economies. It has also
projected more than 30% rise in global crude oil prices during the calendar
year 2011. This is a key downside risk to the growth of the global economy.
Sovereign balance sheet risks in the Euro zone and dormant real estate markets
have also been cited as downside risks to growth in advanced economies.
Indian Economy
The Indian Economy continued to outperform most emerging markets during
the year, retaining its position as the second fastest growing economy, after
MANAGEMENT
DISCUSSION AND ANALYSIS
The operations of the Company comprise of Engines and Bearings business
and operational performance review is carried out separately for these
segments.
Industry Overview
While global economies are still recovering, Indian economy has
comparatively shown a faster recovery. In the year , the Indian export sector
has shown a growth of approx 50% in volume terms and 37% in value terms over
the previous financial year. The engineering sector has significantly
contributed to the growth in exports.
Growth of investment in agriculture and industries such as retail,
hospitality, hospitals, IT, banking and infrastructure is evident in the
current financial year. This generated a good demand for their engines, pump
sets and generating sets. However due to continual increase in prices of crude
oil, customers could also prefer alternate fuels for engines.
The growth of telecom Industry in
Company Performance
During the year, the Company achieved sales of Rs.23630.000 millions.
(Previous Year Rs.22190.000 millions.) resulting in increase in sales by 6.5 %
over previous year.
The profit before tax is at Rs. 2440.000 millions. (Previous Year
Rs.2630.000 millionss.) after providing for depreciation of Rs.850.000
millions. (Previous Year Rs.840.000 millionss.)
Business Wise
Operational Performance
The Company caters to the diverse needs of the customers from all the three
sectors of economy namely Agriculture, Industrial and Services.
A. ENGINE BUSINESS
1. Agriculture and
Off Highway Engine Business
While agriculture sector grew by 5.4% due to progressive governmental
policies during the year , the Indian agriculture market for engines below 20HP
shrunk by 15% in numbers, due to the delay in onset of monsoon and monsoon
continuing through the sowing period. The market share was enhanced in the
agriculture segment from 17% to 21% despite the drop in total market volume. A
total of more than 76,000 engines were sold in the Agricultural market, out of
which 30,000 were portable pump sets which were launched in the year 2008,
despite facing competition from cheaper Indian and Chinese alternatives. High
head portable pump sets were introduced for the agriculture market.
The growth of
The Company successfully geared up for the BS-III emission norms now
applicable for Construction Equipment Vehicles [CEV], by migrating over 55
applications from BS-II to BS-III.
Overseas agriculture and Off Highway market also experienced revival in
demand; especially in the
2. Power
Generation Engine Business
The power generation business of the Company addresses the telecom and
other industrial segments such as retail, banking, IT and telecom markets.
During the year the domestic power generation market, except the telecom
segment, experienced a revival in demand. Overall market, other than the telecom
segment, grew by around 15%.
The Company continuously innovates to bring down the life cycle cost of
the products thereby providing value for money to their customers. The newly
designed DV series of engines in the range of 320 kVA to 625 kVA were successfully
launched in the domestic market. Their Research and Development is working on
extending the range to 750 kVA.
New products were developed in the range of up to 160 kVA, which run on
alternate energy sources like natural gas and bio gas.
The global economic meltdown seems to be easing up in the overseas
markets served by the Company. Increased efforts in the overseas markets in the
industrial segments resulted in acquisition of new customers, in Africa,
Middle-East and
3. Customer
Support Business
The Company has a widespread network of trained service dealers and well
equipped service outlets all over
Growth was achieved in Agriculture Spares segment by increasing the number
of parts distributors and increasing focus on availability of parts.
New initiatives and constant up-gradation of systems and procedures
helped the Company in securing customer confidence and also gaining over 21%
growth in spare parts sale over the previous year and also additional revenue
generation through annual maintenance contracts with cellular operators as well
as domestic customers.
4. Large Engine
Business
During the year , engines were supplied for main propulsion application
and for stationary power plant application. In the stationary power plant
market segment, high fuel oil prices adversely affected new orders as well as
operations of existing engines installed with the customers.
Commissioning of previously supplied engines on the naval vessel
frigates built at Mazagaon docks was successful. Four generating sets, each of
3.6 MW rating, are successfully installed at the Kalpakkam Nuclear Power Plant,
which are awaiting final commissioning.
5. Kagal Plant
During the year , in the fourth year of operation, the production of
engines increased by 53% and production of generating sets increased by 15%
over the previous year.
Generating sets of 400 kVA and 500 kVA using the new DV series engines
were successfully manufactured. 15 Nos. of 500 kVA generating sets were
supplied by their OEMs for powering the opening and closing ceremonies of the
Common Wealth games at
Company successfully added 46 engine application codes to fulfill the
needs of the Customers in Off Highway and Power Generation businesses.
2600 rpm portable pump sets were successfully manufactured within the
existing set up.
Productivity improvements and measures for increasing flexibility in
manufacturing processes were introduced
to meet the fluctuating market demands.
6. Pune Plant
During the year , the Company has renovated and upgraded its
manufacturing facilities. The plant renovation activity was completed
successfully without affecting deliveries to customers. Due to this
renovation, improvement is expected in
labour and plant productivity.
The plant undertook proto, pilot and production batch proving of DV
series of Engines. The Pune plant provided 106 new application codes including
proto and pilot of BS-III compliant R1040, 4R810, 6R1080 and HA medium Engines.
SL90 Engines with FM and UL certification were successfully handed over for
commercial production.
During the year , 12 innovative low cost automation projects were
completed and the plant achieved more than 8500 nos. of Kaizens.
The Quality circle from Pune plant was selected for excellent category
in Quality Circle Contest at National level. It also bagged Silver trophy at
international Quality Circle contest.
7.
During the year , the manufacturing capacity for engines was increased
to 10,000 engines/ month.
The plant achieved BIS certification for 5HP to 8HP engines with
N-series pumps
B. BEARINGS
BUSINESS
The automobile industry continued to be buoyant and provided
opportunities for growth in the business. During the year , the automobile
sector grew at an average of 9%. The sales of the bearings division for the
year amounted to Rs. 1230.000 millions,
an increase of 15% over the previous year.
Market share increased to 36% of the OEM market and to 41% in the
aftermarket. The after-market segment has grown significantly due to increase
in vehicle population.
The Company has made adequate investment in technology, infrastructure
and quality, which will enhance customer satisfaction.
Prospects For The
Current Year
For the current financial year 2011-12, the Company has a cautious
outlook on the economy, considering the anticipated rise in crude oil prices,
inflationary pressures in the economy and the rising interest rates.
Government of
Several necessary steps to meet the requirements of regulatory change
from BS II to BS III emission norms in the off highway sector have been taken.
In the Power Generation segment, the demand and supply gap for power and
improvement in lifestyle will continue to drive the business. The power deficit
will continue to drive the demand. The deficit is expected to be around 10%
during the current financial year. This deficit, along with the growth in
service and manufacturing sector is expected to trigger growth for generating
sets business during the current financial year. Besides conventional power
generation, Government of India has announced setting up of new Nuclear Power
Plants. The Company has already taken lead by successfully supplying large
Gensets to Kalpakkam Nuclear Power Plant.
Listing Fees
The annual listing fees for the year
have been paid to Bombay Stock Exchange Limited, Mumbai and National
Stock Exchange of India Limited, Mumbai where the Company's shares are listed.
Contingent Liabilities :
Contingent Liabilities not provided for
Rs. In millions
|
Particulars |
31.03.2011 |
31.03.2010 |
|
a) Disputed
Central Excise demands |
9.832 |
13.166 |
|
(b) Disputed
Sales Tax and Octroi demands |
70.906 |
65.897 |
|
(c) Disputed
Custom Duty demands |
10.799 |
10.799 |
|
(d) Disputed
Income Tax liability - matter under appeal |
172.247 |
143.321 |
|
(e) Claims
against the Company not acknowledged as debts |
790.583 |
743.595 |
|
(f) Guarantees
given on behalf of third parties |
488.875 |
0.152 |
FIXED ASSETS :
§
Land
§
Building
§
Plant and Machinery
§
Furniture and Fixtures
§
Computer
§
Office Equipments
§
Electrical Installations
§
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions between
a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.92 |
|
|
1 |
Rs.76.51 |
|
Euro |
1 |
Rs.66.64 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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.