MIRA
INFORM REPORT
|
Report Date : |
21.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
EVEREST KANTO CYLINDER LIMITED |
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Registered
Office : |
204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point,
Mumbai-400021, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
24.06.1978 |
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Com. Reg. No.: |
11-020434 |
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Capital
Investment/ Paid-up Capital: |
Rs. 214.315 Millions |
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CIN No.: [Company Identification
No.] |
L29200MH1978PLC020434 |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturer of wide range of cylinders for industrial gases,
medical gases, fire fighting equipments, beverage industry, accumulator
shells, aerospace, scientific research and CNG- NGV cylinders. |
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No. of
Employees: |
1900 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (63) |
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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 |
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Maximum Credit Limit : |
USD 21000000 |
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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 a reputed 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 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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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
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Registered/ Head Office : |
204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point,
Mumbai-400021, Maharashtra, India |
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Tel. No.: |
91-22-30268300/01 |
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Fax No.: |
91-22-22870720 |
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E-Mail : |
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Website : |
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Plant 1: |
Survey No. 141/1 and 141/2, Village Varsana, Near NH 8A East, P.O Box
Gopalpuri, Taluka – Anjar, Gandhidham, Kutch – 370240, |
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Plant 2: |
Plot No. 525 to 542, 618, 619, 627 and 628, Sector – New Extended
Area, Kandla Special Economic Zone, Gandhidham, Kutch – 370230, Gujarat,
India |
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Plant 3: |
N – 62, MIDC Industrial Area, Kumbhavali Naka, Tarapur – 401506, |
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Plant 4: |
E – 22, MIDC Area, Chikalthana, |
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Branch Office 1: |
No.9, Mota Chambers, Milier Road, |
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Tel No: |
91-80-22280457/ 4202 |
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Fax No: |
91-80-22284201 |
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Branch Office 2: |
B- 69/ 2, Wazirpur Industrial Area, |
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Tel No: |
91-11-42474916/ 4917 /4919/ 4920 |
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Fax No: |
91-11-27377530/ 91-11-42474918 |
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Branch Office 3: |
Plot No. M 03130, P.O |
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Tel No: |
971-4-8832796/ 8832707/ 8832799 |
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Fax No: |
971-4-8832799 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. P.K. Khurana |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Pushkar Khurana |
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Designation : |
Non - Executive
Director |
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Name : |
Mr. Puneet Khurana |
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Designation : |
Whole - Time
Director |
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Name : |
Mr. P.M. Samvatsar |
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Designation : |
Whole - Time
Director |
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Name : |
Mr. Shailesh Haribhakti |
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Designation : |
Independent
Director |
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Name : |
Mr. Krishen Dev |
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Designation : |
Independent
Director |
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Name : |
Mr. Naresh Oberoi |
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Designation : |
Independent
Director |
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Name : |
Mr. Mohan Jayakar |
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Designation : |
Independent
Director |
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Name : |
Mr. Vyomesh Shah |
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Designation : |
Independent
Director |
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Name : |
Mr. Gurdeep Singh |
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Designation : |
Independent
Director |
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Name : |
Mr. Varun Bery |
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Designation : |
Non-Executive
Non-Independent Director |
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Name : |
Mr. Hon Cheong Lam (to Mr. Varun Bery) |
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Designation : |
Alternate
Director |
KEY EXECUTIVES
|
Name : |
Ms.
Chanda Makhija Thadani |
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Designation : |
Company Secretary and Compliance Officer |
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Audit Committee: |
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Shareholders’ / Investors’ Grivances Redressal and Share Transfer
Committee: |
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Remuneration Committee: |
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Allotment Committee: |
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Management Committee: |
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Investment Committee: |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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42,457,296 |
39.62 |
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19,320,000 |
18.03 |
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61,777,296 |
57.65 |
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Total shareholding of Promoter and Promoter Group (A) |
61,777,296 |
57.65 |
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(B) Public Shareholding |
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|
9,706,980 |
9.06 |
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|
4,400 |
- |
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11,240,217 |
10.49 |
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20,951,597 |
19.55 |
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2,756,567 |
2.57 |
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11,991,804 |
11.19 |
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365,547 |
0.34 |
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9,314,871 |
8.69 |
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450,867 |
0.42 |
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8,036,714 |
7.50 |
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|
772,690 |
0.72 |
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Directors and their
Relatives and Friends |
54,600 |
0.05 |
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|
24,428,789 |
22.80 |
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Total Public shareholding (B) |
45,380,386 |
42.35 |
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Total (A)+(B) |
107,157,682 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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|
- |
- |
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- |
- |
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Total (A)+(B)+(C) |
107,157,682 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of wide range of cylinders for industrial
gases, medical gases, fire fighting equipments, beverage industry,
accumulator shells, aerospace, scientific research and CNG- NGV cylinders. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Seamless gas cylinders |
Nos |
672000 |
672000 |
543767 |
GENERAL INFORMATION
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No. of Employees : |
1900 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
Dalal and Shah Chartered Accountants |
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Address : |
Mumbai |
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Other related parties where control exists: |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125000000 |
Equity Shares |
Rs.2/- each |
Rs.250.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
107157682 |
Equity Shares |
Rs. 2/- each |
Rs. 214.315
Millions |
Note:
(Previous Year 101157682) Equity Shares of Rs.
2 each fully paid up
-
Includes 20,000,000 fully
paid up bonus shares issued by capitalization of revaluation reserve (on 25.08.1994)
and 38,737,500 shares by capitalization of general reserve, in earlier years.
-
The company made a
preferential allotment of 6,000,000 equity shares of Rs. 2 each at a premium of
Rs. 133 per share, pursuant to the approval of the shareholders at their
meeting held
-
in June, 2010.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
214.315 |
202.315 |
202.315 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4998.590 |
4185.181 |
3726.872 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5212.905 |
4387.496 |
3929.187 |
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LOAN FUNDS |
|
|
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1] Secured Loans |
759.245 |
632.549 |
983.206 |
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2] Unsecured Loans |
1868.904 |
2439.490 |
2370.629 |
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TOTAL BORROWING |
2628.149 |
3072.039 |
3353.835 |
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DEFERRED TAX LIABILITIES |
138.723 |
141.556 |
0.000 |
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TOTAL |
7979.777 |
7601.091 |
7283.022 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2247.906 |
1872.669 |
1292.327 |
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Capital work-in-progress |
1285.635 |
1577.478 |
1577.956 |
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INVESTMENT |
1423.724 |
973.056 |
927.447 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
23.469 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
1529.223
|
2101.272 |
2431.562 |
|
|
Sundry Debtors |
696.015
|
684.747 |
468.819 |
|
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Cash & Bank Balances |
121.758
|
83.261 |
154.934 |
|
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Other Current Assets |
93.328
|
84.291 |
70.027 |
|
|
Loans & Advances |
1509.172
|
1392.706 |
1767.492 |
|
Total
Current Assets |
3949.496
|
4346.277 |
4892.834 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Sundry Creditors |
624.911
|
926.317 |
1165.666 |
|
|
Other Current Liabilities |
84.526
|
83.739 |
113.193 |
|
|
Provisions |
217.547
|
158.333 |
152.152 |
|
Total
Current Liabilities |
926.984
|
1168.389 |
1431.011 |
|
|
Net Current Assets |
3022.512
|
3177.888 |
3461.823 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7979.777 |
7601.091 |
7283.022 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3762.942 |
3490.651 |
3530.249 |
|
|
|
Other Income |
138.911 |
87.413 |
162.901 |
|
|
|
TOTAL (A) |
3901.853 |
3578.064 |
3693.15 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material and components consumed |
1904.634 |
2807.167 |
2101.016 |
|
|
|
Trading purchase |
24.389 |
64.391 |
34.268 |
|
|
|
Manufacturing expenses |
463.979 |
329.160 |
383.804 |
|
|
|
Personnel expense |
262.364 |
207.709 |
173.079 |
|
|
|
Administration, sales and other expenses |
245.709 |
181.733 |
178.680 |
|
|
|
Foreign exchange variation |
(9.146) |
(243.499) |
205.884 |
|
|
|
Own Goods Capitalized |
(24.500) |
(6.523) |
0.000 |
|
|
|
Increase or decrease in stocks |
406.016 |
(271.596) |
(243.994) |
|
|
|
TOTAL (B) |
3273.445 |
3068.542 |
2832.737 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
628.408 |
509.522 |
860.413 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
31.484 |
31.220 |
55.384 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
596.924 |
478.302 |
805.029 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
241.902 |
142.900 |
226.475 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
355.022 |
335.402 |
578.554 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
129.847 |
69.477 |
206.078 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
225.175 |
404.879 |
372.476 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
970.717 |
807.388 |
676.931 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
100.000 |
100.000 |
|
|
|
Dividend |
160.737 |
121.389 |
121.389 |
|
|
|
Tax on Dividend |
35.092 |
20.161 |
20.630 |
|
|
BALANCE CARRIED
TO THE B/S |
900.063 |
970.717 |
807.388 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
1215.888 |
540.914 |
111.841 |
|
|
|
Commission for bank guarantee |
5.135 |
5.397 |
5.654 |
|
|
|
Interest on loans given |
20.101 |
31.002 |
78.140 |
|
|
|
Others |
0.000 |
0.000 |
0.553 |
|
|
TOTAL EARNINGS |
1241.124 |
577.313 |
196.188 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1356.011 |
1862.426 |
2315.348 |
|
|
|
Stores & Spares |
5.737 |
0.341 |
0.980 |
|
|
|
Capital Goods |
111.649 |
231.784 |
790.612 |
|
|
TOTAL IMPORTS |
1473.397 |
2094.551 |
3106.940 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.13 |
4.00 |
3.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
944.800 |
|
Total Expenditure |
|
|
794.100 |
|
PBIDT (Excl
OI) |
|
|
150.700 |
|
Other Income |
|
|
32.500 |
|
Operating
Profit |
|
|
183.200 |
|
Interest |
|
|
6.800 |
|
Exceptional
Items |
|
|
0.000 |
|
PBDT |
|
|
176.400 |
|
Depreciation |
|
|
58.200 |
|
Profit
Before Tax |
|
|
18.200 |
|
Tax |
|
|
34.700 |
|
Reported PAT |
|
|
83.500 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
83.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.77
|
11.31 |
10.09 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.43
|
9.61 |
16.39 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.74
|
5.39 |
9.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.08 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.68
|
0.97 |
1.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.26
|
3.72 |
3.42 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE REVIEW
Financial Year 2010-11 marked a strong resurgence in volume and demand growth post the financial crisis. The Company has registered a strong broad based sequential growth across all key markets and customer segments. On consolidated basis for FY 2010-11, revenues at Rs. 7763.400 Millions were higher by around 20% over the previous year’s revenues of Rs. 6496.500 Millions. Net profit at Rs. 705.100 Millions was higher by around 70% over the previous year’s net profit of Rs. 415.100 Millions. During the year, the total consolidated sales volume of cylinders increased to 884,339 nos. as against 687,212 nos. in the previous year. This was achieved mainly on account of overall improvement in sales volume, increase in sales of high value added products and continuing efforts to control costs and improve profitability. The growth in international business also contributed towards the overall profitability of the Company.
SUBSIDIARIES
The Company established a wholly owned subsidiary (WOS) in
SHIFTING OF
ACTIVITIES OF
With a view to consolidate and promote synergy amongst similar facilities which would result in effective utilization of the manufacturing facilities and also considering the feasibility and viability of order execution and prompt delivery of committed supplies to customers, it was considered prudent to shift the entire activities of the plant located at Aurangabad, Maharashtra to the company’s larger unit located at Gandhidham, Gujarat which has the resources and the capacity to handle the incremental volume of business as a result of such change.
MANAGEMENT DISCUSSION
AND ANALYSIS
FORWARD - LOOKING STATEMENTS
This report contains forward looking statements identified by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to the Company’s strategy for growth, product development, market position, expenditures and financial results, are forward - looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Company's actual results, performance or achievements could thus differ materially from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.
SCOT ANALYSIS
STRENGHTS (S)
Strong Management:
EKC has a strong and highly experienced management with more than three decades of experience in the high pressure cylinder industry. The experience of the Company’s management team is a key competitive advantage. Top officials of EKC have been associated with the Company for a long period of time which provides depth and continuity of management.
Sustained leadership in domestic market:
EKC is
Domination in export market:
EKC exports to over 20 countries all over the world
including many countries in South Asia, South East Asia, Middle East, Africa,
High quality products:
The cylinders manufactured by EKC have earned a global reputation for their high standard of quality and compliance to the most stringent specifications laid down by international bodies and local authorities. EKC manufactures cylinders confirming to specific country national standards or International standards like ISO: 11439, NZ: 5454, ISO: 4705D, EN: 1964, IS: 15490, DOT, ASME and ISO: 11120.
Wide variety of products:
The Company manufactures a wide and versatile range of high pressure seamless products viz.
- Industrial Gas Cylinders
- CNG Cylinders
- CNG Cylinder Cascades
- Jumbo Cylinders
- Jumbo Skids
The company provides cylinders with water capacities that range between 1 litre and 3000 litres and also supplies cylinders in customised sizes. Because EKC is flexible to meet any specification, it has a broad customer base across the globe.
Supply Chain and Customer Relationships:
The Company maintains cordial business relationships with
its value chain partners, such as its key raw material suppliers, gas distributors,
Original Equipment Manufacturers (OEM) and regulatory authorities like The
Chief Controller of Explosives (CCE), Bureau of Indian Standards (BIS) and
other statutory bodies in
Economies of scale:
EKC enjoys economies of scale as the existing manufacturing facilities are fully geared up to utilize their capacities thereby leading to greater operational efficiency which would result in lower cost of production and increased profitability.
Quick delivery to
customers:
EKC has the ability to manufacture and deliver vessels of different sizes from its multiple operating units. This results in quick delivery to the customers.
Investment in New
Technologies:
EKC has made significant investments in newer and alternate
technologies which would ultimately enable it to reach leadership status
globally. Also, it would be the only company in
lead to lower cost of production and better working capital
management. The new
Investment in Human
Talent:
All employees are important to the Company and it believes that its middle management is particularly critical to its business, as they are responsible for managing teams, understanding customer expectations, ensuring consistent and quality service delivery. These middle managers are essentially the glue that keeps the entire organization together. The Company intends to continue to invest in developing and grooming its middle management talent.
CHALLENGES (C)
Raw material intensive
industry
Seamless steel tubes are the principle raw material used by EKC. The quality of cylinders produced is directly dependent on the quality of raw material used. There are only a few seamless tube manufacturers globally who meet the stringent quality specifications. Adequate level of raw material inventory has to be maintained at all times to ensure quick turnaround time for orders received. Any volatility in the prices or disruption in availability of raw material can impact the profitability of the Company. However, EKC has strong relationships with the raw material suppliers. Going a step further to reduce supplier risk, EKC has setup facilities using alternate manufacturing process and cheaper raw materials such as billets and plates.
Integration
EKC faced the challenge of integrating the operations of CP Industries Holdings, Inc. (CPI) [acquired by EKC in April, 2008] with its own. EKC has successfully overcome this challenge and the complementary product portfolio (CPI’s established position in the Jumbo cylinders vs. EKC’s strong position in relatively smaller cylinders) gave an impetus to overall global growth.
Competition
Although EKC is the market leader in
FINANCIAL PERFORMANCE
VIS-A-VIS OPERATIONAL PERFORMANCE
EKC has staged a smart recovery from the economic slowdown across various geographies and delivered superior financial performance during the year with significant improvement in operating results as compared to the previous year. A number of initiatives were taken during the year to further consolidate its strengths and position itself to take advantage of the upturn. EKC managed to sell 884,339 cylinders during the year 2010-11 an increase of around 29% as compared to 687,212 cylinders during the year 2009-10. During FY 05-06 to FY 10-11, sales of total cylinders grew at a CAGR of 20%. The consolidated turnover for the year increased by 20% from Rs. 6496.500 Millions to Rs. 7763.400 Millions and the consolidated profit after tax was at Rs. 705.100 Millions as against Rs. 415.100 Millions in the previous year which is higher by 70%.
INTERNAL CONTROL
SYSTEM
The Company believes in formulating adequate and effective internal control systems and implementing the same strictly to ensure that assets and interests of the Company are safeguarded and reliability of accounting data and accuracy are ensured with proper checks and balances. The Internal control system is improved and modified continuously to meet the changes in business conditions, statutory and accounting requirements. The Company has an internal audit function, which is empowered to examine the adequacy and the compliance with policies, plans and statutory requirements. It is also responsible for assessing and improving the effectiveness of risk management, control and governance process. The management of the Company duly considers and takes appropriate action on the recommendations made by the statutory auditors, internal auditors and the independent Audit Committee of the Board of Directors. The prevailing system of internal controls and internal audit are considered to be adequate vis-a-vis the business requirements. In order to further strengthen the internal control systems and with a view to automate the various processes of the business, EKC has implemented an Enterprise Wide Resource Planning (ERP) system.
FIXED ASSETS:
- Buildings
- Electrical
Installation
- Plant and
Machinery
- Vehicles
- Office
Equipments
- Furniture and
Fixtures
- Computers
- Gas Cylinders
- Software
Development
UNAUDITED FINANCIAL RESULTS (STANDALONE) FOR
THE YEAR ENDED 30th JUNE ,2011
(Rs. in Millions)
|
|
Particulars |
Unaudited For The Quarter Ended |
|
|
|
30.06.2011 |
|
|
|
(Unaudited) |
|
1 |
(a) Net Sales/Income from Operations |
922.200 |
|
|
(b) Other Operating Income |
22.600 |
|
|
Total Income (a+b) |
944.800 |
|
2 |
Expenditure |
|
|
|
a) (lncrease)/Decrease in Stocks in trade and |
(113.300) |
|
|
work in progress |
|
|
|
b) Consumption of raw materials |
640.200 |
|
|
c) Purchase of traded goods |
4.500 |
|
|
d) Employees Cost |
68.700 |
|
|
e) Depreciation |
58.200 |
|
|
f) Other Expenses |
194.000 |
|
|
g) Total |
852.300 |
|
3 |
Profit from Operations before (Gain)/ Loss on Foreign Exchange
Variation (Net), Other Income, |
|
|
Interest and Exceptional Items (1-2) |
92.500 |
|
|
4 |
(Gain)/ Loss on Foreign Exchange Variation (Net) |
(10.200) |
|
5 |
Profit/ (Loss) before Other Income, Interest and Exceptional Items
(3-4) |
102.700 |
|
6 |
Other Income |
22.300 |
|
7 |
Profit/ (Loss) Before Interest and Exceptional Items (5+6) |
125.000 |
|
8 |
Interest and Finance Charge |
6.800 |
|
9 |
Profit /(Loss) after Interest but before Exceptional Items (7-8) |
118.200 |
|
10 |
Exceptional Items |
0.000 |
|
11 |
Profit/(Loss) from Ordinary Activities before Tax- (9+10) |
118.200 |
|
12 |
Tax Expense |
34.700 |
|
13 |
Net Profit/ (Loss) from Ordinary Activities after Tax (11-12) |
83.500 |
|
14 |
Prior Period Adjustments |
0.000 |
|
15 |
Extraordinary items (net of tax expenses) |
0.000 |
|
16 |
Net Profit/ (Loss)for the year (13-14-15) |
83.500 |
|
17 |
Paid up equity shares capital (Face Value of Rs. 2/- each) |
214.300 |
|
18 |
Reserves (excluding revaluation reserves) |
0.000 |
|
19 |
Basic and Diluted Earnings per Share- of (Rs. 2/- each) (in Rupees) |
0.78 |
|
20 |
Public shareholding |
|
|
|
- Number of shares |
45,380,386 |
|
|
- Percentage of shareholding |
42.35 |
|
|
|
|
|
21 |
Promoters and Promoter group Shareholding (a) Pledged/Encumbered |
|
|
|
-Number of Shares |
4,220,000 |
|
|
-Percentage of Shares (as a % of the total shareholding of promoter
and |
6.83 |
|
|
promoter group) |
|
|
|
-Percentage of shares (as a % of the |
3.94 |
|
|
total share capital of the Company) |
|
|
|
b) Non-encumbered |
|
|
|
-Number of Shares |
57,557,296 |
|
|
-Percentage of Shares (as a % of the total shareholding of promoter
and |
93.17 |
|
|
promoter group) |
|
|
|
-Percentage of shares (as a % of the |
53.71 |
|
|
total share capital of the Company) |
|
Note:
1) As per clause 41 of the listing agreement, the company has opted to
publish consolidated results only. Standalone results of the company would be
available on the company’s website – www.everestkanto.com
and on the websites of BSE and NSE.
2) The above results were reviewed by the Audit Committee at its meeting
held on 30thJune 2011 and accepted by the Board of Director of the company at
their meeting held on that date.
3) The company during the year 2007-2008, raised a sum of US $ 35
Millions by way of Foreign Currency Convertible Bonds (FCCB), which are due in
2012. These FCCB’s are optionally convertible into equity shares subject to
certain conditions the impact of which at present are not determinable. The
premium payable on exercise of redemption option, if any will be accounted by
way of debit to the securities premium account. For the purposes of earnings
per share the conversion option is considered to be anti dilutive.
4) Tax Expenses includes current tax, wealth tax and deferred tax
(including deferred credits if any), but excludes tax adjustments relating to
earlier years which are disclosed as prior period adjustments.
5) Previous period figures have been regrouped/ recast wherever
necessary.
6) Investors complaints for the quarter ended 30th June 2011:
Opening Balance – Nil, New – 5, Disposal – 5, Closing Balance – Nil.
BUSINESS
DESCRIPTION:
Subject is engaged in the development and production of
industrial and compressed natural gas (CNG) cylinders with well over 1.5
million high pressure gas cylinders and 5.00,000 CNG cylinders in service and
three manufacturing plants in India Aurangabad, Tarapur and Gandhidam and
Middle East (UAE) JAFZA in Dubai. EKC Dubai has the capacity to produce
cylinders from 1 to 280 liters water capacity and working pressure from150 -
400 bar (Test Pressure up to 650 bar). Its products include industrial
cylinders, allied products, medical cylinders, beverage cylinders, CNG
cylinders and accumulators. As on 31st March, 2010, the Company had two wholly
owned subsidiary companies, EKC International FZE in
BOARD OF
DIRECTORS:
Prem K Khurana
Reuters Biography Executive Chairman, Managing Director and Promoter OSX
Mr. Prem Kumar Khurana is an Executive Chairman of the
Board, Managing Director of Everest Kanto Cylinder Ltd. He is a Law and Arts
Graduate. As a founder member of the Company, he has been responsible for its
overall operations and growth since its inception in 1978. He has been
instrumental in the development of the Company and has dealt with all the
facets of its business ever since the Company was set up.
Mr. Varun Bery
Reuters Biography Non- Independent Non- Executive Director
Representative of TVG India Investment Holding Limited RT.
Mr. Varun Bery is the Non-Independent Non-Executive Director
of Everest Kanto Cylinder Ltd. He holds a BA from
Mr. Krishen R. Dev
Reuters Biography Independent Non Executive Director RT.
Mr. Krishen R. Dev is Independent Non-Executive Director of Everest
Kanto Cylinder Limited He a business consultant. He is a chemical engineer
(B.Tech-Hons.) from IIT, Kharagpur. He has more than 4 decades of experience in
business and management. He was the Chief Executive Officer (1993-2000) and
also, the Vice-President-Production (1969-1993) of Century Enka Limited He was
the President (Business Development) in Reliance Industries Limited from July
2000 to December, 2001. He has played an active role in formulation of business
and fiscal policies as a member on the Executive Committees of Maratha Chamber
of Commerce, Industry and Agriculture (MCCIA). He identifies new areas of
business interests, business strategy, market orientation and customer
relations.
Mr. Shailesh V.
Haribhakti
Reuters Biography Independent Non- Executive Director RT
Mr. Shailesh V. Haribhakti is Independent Non-Executive
Director of Everest Kanto Cylinder Limited He is the Managing Partner of
Haribhakti and Company, Chartered Accountants and Chairman of BDO Consulting
Private Limited. He is a member of the Standard Advisory Council of the
International Accounting Standards Board. He has been the Past Chairman of the
Indian affiliate of the Certified Financial Planner Board of Standards (CFP
Board) FPSB (
Mr. Mohan Motiram
Jayakar
Reuters Biography Independent Non- Executive Director RT
Mr. Mohan Motiram Jayakar is Independent Non-Executive
Director of Everest Kanto Cylinder Limited. He is B.A., LL.B and holds a
solicitor degree. He has experience of around 32 years in various aspects of
law and specializes in customs, central excise and foreign exchange matters,
including Writs and Criminal procedures. He has been a member of the Managing
Committee of CEGAT Bar Association. He was a member of shipping committee of
the Bombay Chamber of Commerce and a member of the panel of Arbitrators of Bombay
Incorporated Law Society. He has attended various corporate matters like Joint
Ventures, Acquisitions, Mergers and has advised corporates in setting up
entities in the Free Trade Zones in India and also worldwide. He is presently
the senior partner in M/s. Khaitan Jayakar Sud and Vohra and heads the entire
operations of the Mumbai branch of the firm. He is a Director of Photoquip
India Limited, Birla Cotsyn (India) Limited, Mysore Petrochemicals Limited,
Satyagiri Shipping Company Limited, Shree Ram Urban Infrastructure Limited,
Talwalkars Better Value Fitness Limited and several Private Limited companies.
Mr. Mohan Jayakar is a Member of Audit Committee and Shareholders/ Investors
Grievance Committee of Photoquip India Limited and member of Shareholders/ Investors
Grievance Committee of Birla Cotsyn (India) Limited. Mr. Jayakar is the
Chairman of the Shareholders/ Investors Grievances Redressal and Share Transfer
Committee and member of the Remuneration Committee of the Company.
Mr. Pushkar
Khurana
Reuters Biography Non Executive Director and Promoter OSX
Mr. Pushkar Khurana is Non-Executive Director of Everest
Kanto Cylinder Limited. He is a commerce graduate from
Mr. Puneet Khurana
Reuters Biography Board Member, Whole Time Director and Promoter OSX
Mr. Puneet Khurana is the Whole-Time Director of Everest
Kanto Cylinder Limited. He is a commerce graduate from
Mr. Naresh Oberoi
Reuters Biography Independent Non Executive Director RT
Mr. Naresh Oberoi is Independent Non-Executive Director of
Everest Kanto Cylinder Limited. He is an arts graduate from
Mr. Vyomesh M,Shah
Reuters Biography Independent Non Executive Director RT
Mr. Vyomesh M. Shah is Independent Non-Executive Director of
Everest Kanto Cylinder Limited. He holds a degree in Commerce from
Mr. Gurdeep Singh
Reuters Biography Independent Non Executive Director RT
Mr. Gurdeep Singh is Independent Non-Executive Director of
Everest Kanto Cylinder Limited. Mr. Gurdeep Singh is a B.Tech in Chemical
Engineering from IIT -
Mr. Pramod
M.Samvatsar
Reuters Biography Company Executive Director and Whole Time Director OSX
Mr. Pramod M.Samvatsar is the Whole-Time Director of Everest
Kanto Cylinder Limited. He is a Mechanical Engineer from
PRESS RELEASE:
Balochistan Times (
13 July 2011
The Compressed Natural Gas (CNG) is a high-pressure gas for which specially designed and fabricated seamless cylinders manufactured in accordance with prescribed standard should be used in vehicles. Only the valid licensees/CNG Stations have been authorized to convert vehicles to CNG at their respective facilities.
The Authority has asked all vehicle owners, for their own safety and interest, to use only the approved brands, imported, seamless brand New CNG cylinders manufactured as per NZS 5454-1989 standard and satisfy themselves about their genuineness and fitness before purchasing/installing it from the authorized/licensed CNG Stations.
LPG, Oxygen, Nitrogen, Acetylene cylinders are not meant for CNG use so that never use these cylinders as they cannot withstand CNG pressure of 200 Bars and therefore will explode causing loss of life and property.
The Authority has advised the owners not to install CNG kit/cylinder in the vehicle from any un-authorized road-side conversion workshop/outlet. Never install a cylinder which has been fabricated by joining two halves by means of male and female threads or welded as only seamless vehicle cylinders are used for CNG, it added.
The Authority also asked the owners not to install a used cylinder which has been burnt/damaged during riots or other terrorist activities. Such cylinder is weakened and may lead to serious accidents resulting in loss of precious lives.
The owners of vehicles should never ask for refueling beyond the allowable maximum pressure of 200 Bars under any circumstances. In case any CNG station is found dispensing CNG at excess pressure, it may be reported to OGRA for strict action against the station to ensure public safety.
It further advised to get CNG cylinder test certificate from the CNG licensee after conversion of vehicle to CNG and also get vehicles CNG system inspected at least once in a year for examination of the cylinder, piping, CNG kit, all components, leakage testing as well as performance of the CNG system to ensure its safe operation.
People should not smoke during refueling in the vehicle and ensure that the CNG cylinder installed in the vehicle is within the periodic test life, which is five years.
In order to determine the validity of the cylinders, the nearest CNG Station or nearest Hydro Carbon Development Institute of Pakistan (HDIPs) office may be approached for the purpose.
In case the cylinder requires testing, the HDIP testing labs
at
Impco, USA, Landi Renzo, Italy, Tartarini, Italy, Emme Gas, Italy, Lovato, Italy, Blue Runner, Italy, Bi-Gas, Italy, Badini, Italy, BRC, Italy, LO Gas SRL CNG Kit, Italy, OMVL (Manual), Italy, Autogas Italia S.R.L., Italy, Salustri, Argentina, OYRSA CNG Kit, Argentina, Conver Tech CNG Kit, USA and Argentina, Zavoli Srl, Italy, Ozone Conversion Systems, Pakistan (Proto-type), Zoni, China, Shahab Auto Gas CNG Kits, Iran, Voltran CNG Conversion Kit, Turkey, Tomasetto Achille, Argentina, Hoffman CNG Kit, Argentina, Green Technology CNG Conversion Kit, Pakistan, GN Group SA Argentina, Gas Petro S.A.Argentina, Tomasto Lovato, Argentina, VISA GNC, Argentina, Pakistan, PELMAG GNC, Argentina, Speed Plus CNG System, Pakistan, Tesla Industries, Pakistan, Electrofan Co., Iran, GNC Galileo S.A Argentina, SAGAS Autotec CNG Conversion Kit, India and LR Pak Private Limited, Pakistan.
Accord Fintech (
17 June 2011
Accord Fintech (
02 May 2011
Statesman, The (
10 March 2011
The authority in a notice said the cylinders manufactured by M/s Worthington Heiser of Austria have been de-listed and it has informed the Federal Board of Revenue to stop import of storage and vehicle cylinders manufactured by the particular company.
The authority also informed CNG station and vehicle owners not to install the cylinders manufactured by Worthington Heiser "for their own safety," and in public interest.
All owners having these cylinders installed in their
vehicles, have also been directed to replace
According to the OGRA only specially designed and fabricated seamless cylinders that are manufactured in accordance with the NZS 5454:1989 standard are to be used in vehicles for the high pressure compressed Natural Gas.
The OGRA stated that only valice licence holder CNG stations were authorised to convert vehicles to CNG at their respective facilities.
It also warned users from installing used cylinders as these are weakened and may lead to serious accidents resulting in loss of precious lives.
According to OGRA the following type of cylinders that meet the Standard NZS 5454-1989 are permitted in vehicles; Faber Industries, Italy, Dalmine Spa, Italy, Everest Kanto Cylinder Limited, India (EKCL), Inflex, Argentina, Beijing Tianhai Industrial Co. (BTIC), China, Cilbras, Brazil, EKC, Dubai, Kioshi Compression S.A, Argentina, Rama Cylinders Private Limited, India, MAT S/A, Brazil, Nitin Cylinders Limited, India, Maruti Koatsu Cylinders Private Limited, India, Lizer Cylinders Limited, India, Cidegas S.A, Argentina, Inprocil, Argentina, International Gas Vessels Ind (LLC), Armenia.
Balochistan Times (
09 March 2011
The authority in a notice said the cylinders manufactured by M/s Worthington Heiser of Austria have been de-listed and it has informed the Federal Board of Revenue to stop import of storage and vehicle cylinders manufactured by the particular company.
The authority also informed CNG station and vehicle owners not to install the cylinders manufactured by Worthington Heiser for their own safety, and in public interest.
All owners having these cylinders installed in their
vehicles, have also been directed to replace
According to the OGRA only specially designed and fabricated seamless cylinders that are manufactured in accordance with the NZS 5454:1989 standard are to be used in vehicles for the high pressure compressed Natural Gas.
The OGRA stated that only valid licence holder CNG stations were authorised to convert vehicles to CNG at their respective facilities.
It also warned users from installing used cylinders as these are weakened and may lead to serious accidents resulting in loss of precious lives.
According to OGRA the following type of cylinders that meet the Standard NZS 5454-1989 are permitted in vehicles; Faber Industries, Italy, Dalmine Spa, Italy, Everest Kanto Cylinder Limited., India (EKCL), Inflex, Argentina, Beijing Tianhai Industrial Co., (BTIC), China, Cilbras, Brazil, EKC, Dubai, Kioshi Compression S.A, Argentina, Rama Cylinders Private Limited, India, MAT S/A, Brazil, Nitin Cylinders Limited, India, Maruti Koatsu Cylinders Private Limited, India , Lizer Cylinders Limited, India, Cidegas S.A, Argentina, Inprocil, Argentina, International Gas Vessels Ind(LLC), Armenia.
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.49.17 |
|
|
1 |
Rs.77.49 |
|
Euro |
1 |
Rs.67.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.