MIRA
INFORM REPORT
|
Report Date : |
14.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
KEC INTERNATIONAL LIMITED |
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Registered
Office : |
RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai – 400030,
Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
18.03.2005 |
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Com. Reg. No.: |
11-152061 |
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Capital Investment
/ Paid-up Capital : |
Rs.514.177 millions |
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CIN No.: [Company Identification
No.] |
L45200MH2005PLC152061 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMK11457F |
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PAN No.: [Permanent Account No.] |
AAACK4279J |
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Legal Form : |
A Public Limited Liability Company. The Company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturers of |
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No. of Employees
: |
4,200 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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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 35000000 |
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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. Directors are reported
to be experienced and respectable businessmen. 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 – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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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 |
INFORMATION PARTED BY
|
Name : |
Mr. Rajesh |
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Designation : |
Accounts Department |
LOCATIONS
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Registered Office : |
RPG House, 463, |
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Tel. No.: |
91-22-66972777/ 28204045/ 66670200/ 66670297 |
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Fax No.: |
91-22-66972799/ 28204052/ 66670299/ 66670287/ 66670260 |
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E-Mail : |
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Website : |
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KEC |
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Factory 1 : |
B-190, M.I.D.C. Industrial Estate, Butibori, |
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Tel. No.: |
91-7104-662209 |
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Fax No.: |
91-7104-662251 |
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E-Mail : |
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Factory 2 : |
Jhotwara, Jaipur – 302 012, |
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Tel. No.: |
91-141-2340214 / 91-141-6700201 |
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Fax No.: |
91-141-2340223 |
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E-Mail : |
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Factory 3 : |
Deori, P. O. Panagarh, |
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Tel. No.: |
91-761-2350024 |
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Fax No.: |
91-761-2350204 |
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E-Mail : |
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Factory 4 : |
2nd |
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Tel. No.: |
91-022-21731706 |
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Fax No.: |
91-022-21731700 |
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E-Mail : |
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Factory 5 : |
349, Hebbal Industrial
Area, Hootagalli, Belavadi Post, |
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Tel. No.: |
91-821-6559937/6559938/6553181 |
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Fax No.: |
91-821-2402499 |
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E-Mail : |
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Factory 6 : |
Plot No 273/4, Demni
Road, Dadra, Silvassa-396191. |
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Tel. No.: |
91-260-2668518/2668519 |
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Fax No.: |
91-260-2268519 |
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E-Mail : |
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SAE |
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Factory 7 : |
Monterrey, Mexico (North
America), C.P. 66050-79 |
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Factory 8 : |
Monterrey, Mexico (North
America), C.P. 66050-7 |
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Overseas Office : |
Located
at: ·
Abudhabi ·
·
·
·
·
·
·
Sharjah ·
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Branch Office: |
Flat No.9, 1st Floor, 796/6,
Lane No.7, |
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Branch Office : |
Located
at: ·
·
Kolkata ·
·
Vashi, R and D Centre |
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Projects Locations : |
International
Projects: 1st Floor, CEAT Mahal, 463, Phone: 91-22-66670200 Fax: 91-22-66670285/99 Email: kecindia@kecrpg.com Domestic
Projects: Phone: 91-124-4188777 Fax: 91-124-4188721 Email: kecdomestic@kecrpg.com Domestic
Projects: KEC International Limited Telecom Division, "The Pavilion",
3rd Floor, 339/2, Mehrauli-Gurgaon Road, Opposite State Bank of Phone:91-124-4607700 Domestic
Projects: 6th Floor RPG House, Tel:
91-22-66670300/66670305 Fax:
91-22-24930206/24930206 Power Division Email: sanjay.deosthali@rpgcables.com Telecom Division Email: nandanan@rpgcables.com Export Division Email: chatterjeet@rpgcables.com Domestic
Projects: 1st Floor, Building No. 9A, DLF Cyberciti Phase- 3, Gurgaon – 122002 Phone:+91-124-4188790 Fax:+91-124-4188798/99 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. H. V. Goenka |
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Designation : |
Chairman |
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Address : |
14-16, Patazzo B. G. Khar Marg, Mumbai – 400 008, Maharashtra, India |
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Tel No.: |
91-22-23630872 |
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Qualification : |
Arts Graduate and BA, MBA ( |
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Other Directorship : |
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Name : |
Mr. R. D. Chandak |
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Designation : |
Managing Director and Chief Executive Officer |
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Address : |
B/44, |
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Qualification : |
M. Com., FCA |
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Name: |
Mrs. Sobha Singh Thakur |
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Designation: |
Director |
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Address: |
1161, |
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Qualification: |
M. Com., CAIIB |
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Name: |
Mr. Gulu Lalchand Mirchandani |
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Designation: |
Director |
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Address: |
22, Paras, Little |
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Qualification: |
B. Mechanical |
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Name : |
Mr. Dilip G Piramal |
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Designation : |
Director |
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Name : |
Mr. Sharad Madhav Kulkarni |
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Designation : |
Director |
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Qualification : |
Bechelor of Engineering : FIE ( |
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Other Directorship: |
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Name: |
Mr. Ajit Teckchand Vaswani |
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Designation: |
Director |
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Address: |
502, |
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Qualification: |
CA, CS |
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Name: |
Mr. Jotindra Mansukhlal Kothary |
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Designation: |
Director |
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Address: |
16 A, Thakur Niwas, 3rd Floor, 173, J. N. Tata Road, Churchgate,
Mumbai – 400 020, Maharashtra |
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Tel No.: |
91-22-2881537 |
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Qualification: |
B. Com LLB, MBA ( |
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Name : |
Mr. P. A. Makwana |
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Designation : |
Director |
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Name : |
Mr. M. K. Sharma |
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Designation : |
Director |
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Name : |
Mr. Vimal Kejriwala |
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Designation : |
Executive Director – International |
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Name : |
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Designation : |
Executive Director – |
KEY EXECUTIVES
|
Name : |
Mr. Ch. V. Jagannadha Rao |
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Designation : |
Company Secretary |
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Name : |
Mr. Vimal Kejriwal |
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Designation : |
President – Transmission Business |
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Name : |
Mr. George Varghese |
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Designation : |
President – Distribution Business |
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Name : |
Mr. Vardhan Vasant Dharkar |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Yugesh Goutam |
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Designation : |
Vice President – Human Resource |
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Name : |
Mr. Luigi Ruggieri |
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Designation : |
CEO – SAE Towers |
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Name : |
Mr. Nikhil Gupta |
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Designation : |
Executive Director – Cables |
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Name : |
Mr. Randeep Narang |
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Designation : |
Executive Director – South Asia |
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Name : |
Mr. Maadhav Digraskar |
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Designation : |
Chief Executive – Power System |
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Name : |
Mr. A. K. Sharma |
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Designation : |
Chief Executive – Telecom |
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Name : |
Mr. Sanjay Chandra |
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Designation : |
Chief Executive – Railways |
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Name : |
Mr. Dilip Shukla |
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Designation : |
Chief Executive – Water |
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Name : |
Mr. Akhil Saxena |
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Designation : |
Vice President – Supply Chain |
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Name : |
Mr. V. Balasubramanian |
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Designation : |
Vice President- International Project |
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Name : |
Mr. Raj Kumar Gupta |
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Designation : |
Vice President – |
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Name : |
Mr. Vasant Pandit |
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Designation : |
Vice president – Sales and Marketing (Cable) |
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Name : |
Mr. Rajesh |
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Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2011)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A)
Shareholding of Promoter and Promoter Group |
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160,060 |
0.06 |
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107,197,983 |
41.70 |
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107,358,043 |
41.76 |
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Total
shareholding of Promoter and Promoter Group (A) |
107,358,043 |
41.76 |
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(B)
Public Shareholding |
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84,202,403 |
32.75 |
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7,696,690 |
2.99 |
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10,285,350 |
4.00 |
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8,601,047 |
3.35 |
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|
5,480 |
-- |
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|
5,480 |
-- |
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110,790,970 |
43.09 |
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8,598,399 |
3.34 |
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24,633,105 |
9.58 |
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2,353,468 |
0.92 |
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3,354,385 |
1.30 |
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1,414,585 |
0.55 |
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167,655 |
0.07 |
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1,772,105 |
0.69 |
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40 |
-- |
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38,939,357 |
15.15 |
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Total
Public shareholding (B) |
149,730,327 |
58.24 |
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Total
(A)+(B) |
257,088,370 |
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) |
257,088,370 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Foreign BankBUSINESS DETAILS
|
Line of Business : |
Manufacturers of |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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Towers and
Structural |
Tonnes |
151000 |
126847 |
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Telecom Cables |
KMs |
965000 |
653071 |
|
Power Cables |
KMs |
25780 |
17868 |
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GENERAL INFORMATION
|
Customers : |
·
Ministry of ·
Mumias Sugar Company, ·
EEPCO, ·
·
·
EDM, ·
General Electricity Company of ·
EDM, ·
Eskom Holdings, ·
VRA, ·
EETC, ·
·
STEG, ·
KPLC,
·
SRP ·
SNC |
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No. of Employees : |
4,200 (Approximately) |
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Bankers : |
·
Bank of India ·
IDBI Bank Limited ·
Abu Dhabi Commercial
Bank ·
Punjab National Bank ·
Allahabad Bank ·
The Royal Bank of
Scotland N.V. ·
Andhra Bank ·
Standard Chartered
Bank ·
Axis Bank Limited ·
State Bank of Bikaner
and Jaipur ·
Bank of Baroda State
·
Bank of Hyderabad ·
Barclays Bank Plc ·
State Bank of India ·
Central Bank of
India ·
Syndicate Bank ·
Corporation Bank ·
UCO Bank ·
Dena Bank ·
YES Bank Limited ·
Export Import Bank
of India ·
The Dhanlaxmi Bank
Limited ·
ICICI Bank Limited ·
Punjab and Sind Bank |
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Facilities : |
NOTE: a)
Rs.3799.754 Millions secured by first charge by hypothecation of all the
present and future current assets of the Company excluding those covered
under (g) and (k) and 3.2 (c) below and second charge on the Company’s fixed
asset situated at Jaipur, Jabalpur and Butibori factories. b)
Rs.1758.012 Millions guaranteed by banks, which in turn is secured by
security, stated against (a) above. c)
Rs.39.333 Millions secured by assignment of certain overseas book debts. d)
Rs. Nil secured by a first charge by way of hypothecation of specific movable plant
and machinery, equipment and other assets acquired by the Company under the
Asset Credit Scheme together with machinery spares, tools and accessories and
other movables. e)
Rs.116.180 Millions secured by hypothecation of whole of movables (save and
except current assets of the Company including book debts) and equitable
mortgage of the Company’s immovable properties at the Company’s factory at
Butibori, Nagpur and subject to prior charge referred to in (a) above on
movable assets.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskin
and Sells Chartered Accountants |
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Address : |
Mumbai, |
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Subsidiaries -
Wholly Owned : |
· RPG Transmission Nigeria Limited · KEC Global FZ – LLC, Ras UL Khaimah · Jay Railway Projects Private Limited (formerly known as Jay Railway Signaling Private Limited) (w.e.f. September 14, 2010) · KEC Investment Holdings, Mauritius (w.e.f. August 2, 2010) · KEC International Holdings LLC, USA* · KEC Brazil LLC, USA* · KEC Mexico LLC, USA* · KEC Transmission LLC, USA* · KEC US LLC, USA* · SAE Towers Holdings, LLC, USA# · SAE Towers Brazil Subsidiary Company LLC, USA# · SAE Towers Mexico Subsidiary Holding Company LLC, USA# · SAE Towers Mexico S de RL de CV, Mexico # · SAE Towers Brazil Torres de Transmission Ltda, Brazil # · SAE Prestadora de Servicios Mexico, S de RL de CV, Mexico # · SAE Towers 2 Investmentos e Participacoes Ltda, Brazil# · SAE Towers Limited, USA # · SAE Towers Panama Holdings LLC, USA # · SAE Towers Panama S de RL, Panama # *w.e.f. September 7, 2010 # w.e.f. September 23, 2010 |
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Subsidiaries : |
· RPG Transmission Nigeria Limited · KEC Global FZ – LLC, Ras UL Khaimah · Jay Railway Projects Private Limited · KEC Investment Holdings, Mauritius · SAE Towers Holdings, LLC, USA · KEC Transmission LLC, USA · KEC US LLC, USA |
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Joint Ventures: |
·
Al-Sharif Group and KEC Company Limited, Saudi
Arabia (formerly known as Faiz Abdul Hakim Al-Sharif Group and KEC Company
Limited, Saudi Arabia) ·
Hilltop Infrastructure Inc. USA (Upto February 9, 2011) ·
KEC Power India Private Limited · EJP KEC Joint Venture, South Africa · KEC – ASSB JV, Malaysia · KEC – ASIAKOM – UB JV · KEC – ASIAKOM JV · KEC – JEI JV · KEC – DELCO – VARAHA JV · KEC – VARAHA – KHAZANA JV · KEC – VALECHA – DELCO JV · KEC – SIDHARTH JV · KEC – TRIVENI – KPIPL JV · KEC – UNIVERSAL JV · KEC – DELCO – DUSTAN JV · KEC – ANPR – KPIPL JV · KEC – PLR – KPIPL JV |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs.2/- each |
Rs.600.000
millions |
|
1500000 |
Redeemable
Preference Shares |
Rs.100/- each |
Rs.150.000
millions |
|
|
|
|
|
|
|
Total |
|
Rs.750.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
257088370 |
Equity Shares |
Rs.2/- each |
Rs.514.177 millions |
|
|
|
|
|
* During the year each fully paid up equity
shares of face value of Rs.10/- is split/sub-divided into five shares of face
value of Rs.2/- each fully paid up.
NOTE:
a) 18,81,79,270 equity shares of Rs.2/- each (previous year
3,76,35,854 equity shares of Rs.10/- each) allotted in an earlier year for
consideration other than cash for acquisition of Power Transmission Business.
b) 5,82,90,010 equity shares of Rs.2/- each (previous year 1,16,58,002
equity shares of Rs.10/- each) allotted in an earlier year for consideration
other than cash to the shareholders of the erstwhile RPG Transmission Limited
(RPGT) and the erstwhile National Information Technologies Limited.
3,750 fully paid up equity shares of Rs.2/- each (previous
year 750 equity shares of Rs.10/- each) were allotted to
a trustee against 1,688 equity shares of RPGT, where rights
were kept in abeyance under section 206 A (b) of the
Companies Act, 1956 by RPGT. On settlement of the relevant
court cases/issues, the equity shares issued to the trustee will be
transferred.
c) 1,03,65,340 equity shares of Rs.2/- each (previous year
20,73,068 equity shares of Rs.10/- each shown as Equity Share Suspense)
allotted on April 26, 2010 in consideration for the amalgamation referred above
to the shareholders of the erstwhile RPG Cables Limited (RPGCL).
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 |
514.177 |
493.446 |
493.446 |
|
|
2] Equity Share Suspense |
0.000 |
20.731 |
0.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8135.922 |
7161.569 |
5092.207 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8650.099 |
7675.746 |
5585.653 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9076.982 |
7755.089 |
5839.384 |
|
|
2] Unsecured Loans |
11.300 |
112.348 |
378.823 |
|
|
TOTAL BORROWING |
9088.282 |
7867.437 |
6218.207 |
|
|
DEFERRED TAX LIABILITIES |
579.505 |
461.105 |
298.212 |
|
|
|
|
|
|
|
|
TOTAL |
18317.886 |
16004.288 |
12102.072 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7017.289 |
6750.240 |
5032.415 |
|
|
Capital work-in-progress |
193.432 |
378.644 |
503.824 |
|
|
Advances
for capital expenditure |
114.763 |
4.383 |
9.996 |
|
|
|
|
|
|
|
|
INVESTMENT |
53.649 |
18.694 |
17.567 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2128.839
|
2497.529
|
2257.814 |
|
|
Sundry Debtors |
24529.915
|
19449.195
|
18509.686 |
|
|
Cash & Bank Balances |
621.696
|
678.011
|
1365.353 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
4526.431
|
3972.552
|
3265.583 |
|
Total
Current Assets |
31806.881
|
26597.287 |
25398.436 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
10613.047
|
9578.173
|
9635.571 |
|
|
Other Current Liabilities |
9779.870
|
7610.677
|
8780.261 |
|
|
Provisions |
475.211
|
556.110
|
444.334 |
|
Total
Current Liabilities |
20868.128
|
17744.960
|
18860.166 |
|
|
Net Current Assets |
10938.753
|
8852.327
|
6538.270 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
18317.886 |
16004.288 |
12102.072 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
39627.836 |
38772.439 |
34273.926 |
|
|
|
Other Income |
25.376 |
9.893 |
5.914 |
|
|
|
TOTAL (A) |
39653.212 |
38782.332 |
34279.840 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials |
20376.038 |
20108.935 |
19758.321 |
|
|
|
Erection and Subcontracting Expenses |
9167.761 |
9504.382 |
5746.226 |
|
|
|
Personal Expenses |
2087.720 |
1681.434 |
1416.099 |
|
|
|
Other Expenses |
4302.250 |
3620.401 |
4353.475 |
|
|
|
TOTAL (B) |
35933.769 |
34915.152 |
31274.121 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3719.443 |
3867.180 |
3005.719 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
986.597 |
865.263 |
999.821 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2732.846 |
3001.917 |
2005.898 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
344.910 |
262.435 |
227.481 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2387.936 |
2739.482 |
1778.417 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
917.035 |
1029.570 |
615.490 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1470.901 |
1709.912 |
1162.927 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4226.445 |
3048.461 |
2394.509 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Capital Redemption Reserve |
0.000 |
0.000 |
104.028 |
|
|
|
Transfer to General Reserve |
147.090 |
170.991 |
116.293 |
|
|
|
Dividend on Equity Shares |
308.506 |
308.506 |
246.723 |
|
|
|
Tax on distributed Profits |
48.856 |
52.431 |
41.931 |
|
|
BALANCE CARRIED
TO THE B/S |
5192.894 |
4226.445 |
3048.461 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4438.048 |
4677.128 |
7213.900 |
|
|
TOTAL EARNINGS |
4438.048 |
4677.128 |
7213.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1331.321 |
893.506 |
371.158 |
|
|
|
Stores & Spares |
43.910 |
1.255 |
2.872 |
|
|
|
Purchase of Fixed Assets |
131.020 |
40.155 |
131.334 |
|
|
TOTAL IMPORTS |
1506.251 |
934.916 |
505.364 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.72 |
6.91 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
3736.100 |
|
Total Expenditure |
|
|
3481.600 |
|
PBIDT (Excl OI) |
|
|
254.500 |
|
Other Income |
|
|
5.400 |
|
Operating Profit |
|
|
259.900 |
|
Interest |
|
|
100.100 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
159.800 |
|
Depreciation |
|
|
98.400 |
|
Profit Before Tax |
|
|
61.400 |
|
Tax |
|
|
12.900 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
48.500 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
48.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.71
|
4.41
|
3.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.03
|
7.07
|
5.19 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.15
|
11.18
|
5.84 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.36
|
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.46
|
3.34
|
4.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.52
|
1.50
|
1.35 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS
DESCRIPTION
Subject is engaged in infrastructure engineering, procurement and construction (EPC). It operates in verticals of power transmission, power systems, cables, railways, telecom and water. The Company has powered infrastructure development on turnkey basis in 45 countries across South Asia, Middle East, Africa, Central Asia and Americas. Company has five tower manufacturing and three cable manufacturing facilities. The Company is engaged in tower manufacturing with a total capacity of 251,000 metric tons per annum. The areas of operation in the power system vertical include rural electrification, sub-stations, and electric-balance of plant (E-BoP). The Company is capable to design, manufacture, supply and construct turnkey transmission line projects up to voltages of 800 kilovolts. On September 23, 2010, the Company acquired SAE Towers Holdings LLC, USA (SAE Towers). On September 14, 2010, the Company acquired Jay Railway Projects Private Limited. For the nine months ended 31 December 2010, company’s revenues increased 14% to RS29.18B. Net income increased less than 1% to RS1.27B. Revenues reflects an increase in income from operations and an increase in other income. Net income was partially offset by an increase in consumption of raw material, an increase in employees cost, an increase in depreciation, an increase in other expenses and an increase in interest expenses.
PERFORMANCE
The Company has achieved a gross sales of Rs.40574.600
Millions for the period ended March 31, 2011. The Company posted net sales of
Rs.39627.800 Millions and net profit of Rs.1470.900 Millions for the financial
year 2010-11 as against net sales of Rs.38772.400 Millions and net profit of
Rs.1709.900 Millions in 2009-10. Earnings before interest, depreciation, tax
and amortisation (EBITDA) was Rs.3804.300 Millions (excluding Rs.84.900 Millions
towards VRS expenditure) for the financial year 2010-11 as against Rs.3867.200
Millions in 2009-10.
The Company acquired SAE Towers Holdings LLC (SAE Towers), a
Limited Liability Company incorporated in Delaware, USA. The acquisition of SAE
Towers, has helped the Company gain a major presence in the markets of North
America and South America. SAE Towers has significant business in Brazil,
Mexico and USA, with manufacturing capacity of approximately 65,000 MTs (in
Brazil) and 35,000 MTs (in Mexico) of power transmission towers per annum. SAE
Towers also manufactures steel poles for power transmission, sub-station
structures as well as hardware for transmission lines. SAE Towers also owns a
tower testing station in Brazil.
The Company acquired Jay Railway Projects Private Limited
(formerly known as Jay Railway Signaling Private Limited), a Railway Signaling
Automation Systems and Technology company.
It undertakes turnkey signaling contracts for the Indian
Railways. With this acquisition, the Company is poised to undertake a larger
segment of activities under the Railway Infrastructure business.
SHARE
CAPITAL AND LISTING
Pursuant to the approval accorded by the Members through
Postal Ballot on December 20, 2010, the Equity Shares of Rs.10/- each of the
Company have been subdivided into 5(five) Equity Shares of Rs.2/- each. As a
result, the aggregate paid-up Equity Share Capital of the Company stands at
Rs.514.200 Millions comprising of 25,70,88,370 fully paid-up Equity Shares of `
2/- each. As at March 31, 2011, 96.43% of the Company’s total paid up Share
Capital representing 24,79,01,280 Equity Shares of Rs.2/-each are in
dematerialised form.
After completion of despatch of share certificate/credit of
shares to the shareholders of the Company, all the Equity Shares of the Company
of face value of ` 2/- each are listed on Bombay Stock Exchange Limited and
National Stock Exchange of India Limited.
The Equity Shares of the Company continue to remain listed
with Bombay Stock Exchange Limited and National
Stock Exchange of India Limited and the stipulated listing
fees for the year 2011-12 have been paid to both the Stock Exchanges.
MANAGEMENT
DISCUSSION AND ANALYSIS
COMPANY
OVERVIEW
Subject is a flagship company of RPG Group, is a global
infrastructure Engineering, Procurement and Construction (EPC) major. It has
presence in the verticals of Power Transmission, Power Systems, Cables,
Railways, Telecom and Water. The Company has powered infrastructure development
on turnkey basis in 45 countries across South Asia, Middle East, Africa,
Central Asia and Americas. This year, the Company has achieved the billion
dollar turnover mark.
ECONOMIC
REVIEW
India has sustained its economic growth and maintained its
position as one of the better performing economies with a robust growth in
Gross Domestic Product (GDP) of 8.6% in 2010-11, after remaining relatively
unscathed by the global financial crisis in 2008-09. The growth was driven by
the inherent strength of the country’s domestic demand, complemented by well formulated
monetary policies of the Reserve Bank of India and the fiscal stimulus provided
by the Government of India. Large investment plans by the Government of India
across various sectors, rising per capita income and increase in rural and
urban spending is expected to further accelerate economic growth in the coming
years.
INDUSTRY
OUTLOOK AND OPPORTUNITIES ACROSS THE RELATED SECTORS
POWER TRANSMISSION AND DISTRIBUTION (T&D)
The Global Power Transmission and Distribution sector has
strong growth prospects for the years to come. This growth will be driven by
huge investments in grid interconnection projects, networks for new power
generation capacities and replacement of old existing networks.
The International Energy Agency (IEA) forecasts World’s installed
power generation capacity to rise from 4,509 GW in 2007 to 7,820 GW in 2030.
Total gross capacity additions amount to 4,801 GW over 2008-30. Total
investment in power- sector over this period amounts to USD 13.7 trillion out
of which Transmission and Distribution would require USD 2.0 trillion and USD
4.5 trillion respectively. Key international markets which are expected to do
large investments in T&D infrastructure includes Asia and North America
which are at different thresholds of power capacity addition.
INDIA
(POWER TRANSMISSION)
Power is a strategic input and a prime mover for economic
and social development of a country. India’s rapid economic growth over the
last decade has resulted in creating additional pressure towards the
development and augmentation of generation capacity and strengthening of the
Transmission and Distribution segment commensurate with the pace of growth of
the economy. The Government has developed aggressive investment plans to reduce
the demand-supply deficit. While the Eleventh Plan targeted for a capacity
addition of 78 GW, it is estimated that approximately 51 GW of generation
capacity would be added by the end of the Eleventh Plan. The scale of
opportunity becomes even larger in the Twelfth Plan wherein an ambitious target
of 100 GW capacity additions has been planned. For these capacity additions to
happen considerable investments both in public and private sector would be
required and this in turn would also translate to additional investments in the
T&D segment.
In order to create a national grid and reduce the technical
losses during transmission, India is increasingly adopting HVDC technology and
765 kV transmission systems for interregional transmission lines. Also, with
increase in higher size generation projects coming up, for e.g. mega and ultra
mega power projects, requirement for power evacuation at higher voltage and
longer distance has increased.
The Eleventh Plan had an estimated expenditure of
Rs.1400000.000 Millions in Transmission which is proposed to increase
significantly in the Twelfth Plan to Rs.2400000.000 Millions. The bulk of
investments in the transmission segment still continue to be done by Power Grid
Corporation of India Limited (PGCIL) and state utilities, while the private
sector constitutes only a small portion.
INDIA
(POWER DISTRIBUTION)
In the Rural Electrification space, the Central Government
has been taking several steps through various schemes such as the Rajiv Gandhi
Grameen Vidyutikaran Yojana (RGGVY) in which the Government provides 90%
capital subsidy for projects with an objective to electrify over 1 lac
un-electrified villages and to provide free electricity connections to 2.34
crore rural Below Poverty Level (BPL) households. Another scheme was the
Restructured- Accelerated Power Development and Reforms Programme (R-APDRP)
with an outlay of Rs.500000.000 Millions, to strengthen the urban distribution
networks.
In the sub-stations space, the focus in the Eleventh Plan
was mainly on the 220kV and 400 kV sub-stations. However, the Twelfth Plan is
expected to focus on increasing capacity in 500 Kv and 765 kV sub-stations
space.
NORTH
AMERICA – UNITED STATES AND CANADA
The American Reinvestment and Recovery Act (ARRA) of 2009 is
facilitating USD 11 billion dedicated to the T&D grid in the United States
of America. These investments would be for augmentation and strengthening of
the transmission system, modernising the national electric grid and smart grid
and improving the security of the transmission and distribution system.
Transmission utilities across Canada are making large
investments in the maintenance of aging infrastructure and in the construction
of new power lines and sub-stations to connect new generation sources to the
bulk power system with estimated investment to the tune of USD 6 billion.
NORTH
AMERICA – MEXICO
Mexico’s utility The Comision Federal de Electricidad
(‘CFE’) owns and operates the national grid of Mexico. As per CFE’s 2009-2018
investment plan, they estimate that approx. USD 9.3 billion investment in
transmission will be required for the power grid to meet the expected demand
due to an increase in population.
LATIN
AMERICA - BRAZIL
The International Energy Agency forecasts an estimated USD
10 billion per annum investment in the Power sector till 2030. The investments
would be necessary to reinforce the T&D system and meeting expansion needs
of new power generation under construction in remote regions.
The upcoming 2014 FIFA World Cup and 2016 Olympics also
necessitated the Government’s focus on infrastructure development. On the other
hand, deregulation has increased private sector involvement in grid
development.
MIDDLE
EAST
The major demand driver in the region is upcoming large
power generating plants including nuclear plants, development of
inter-country/regional interconnection lines and increasing private investment.
Total estimated investment in the Middle East region as per
IEA’s World Energy Outlook 2009 Report is approx. USD 25 billion in
Transmission and approx. USD 52 billion in Distribution segment between
2008-2015.
Realising the future demand, many of the Middle East
countries have embarked on restructuring and unbundling process of their power
sector into generation, transmission and distribution areas thus providing
opportunity for these business segments to focus on their core business, and
also encouraging capital investments from the private sector.
Africa
The power sector in Africa is very small in comparison to
its geographical size and population, thus providing scope for growth. Total
estimated investment in the African region as per IEA’s World Energy Outlook
2009 Report is approx. USD 21 billion in Transmission and approx. USD 42
billion in Distribution segment between 2008- 2015.
CENTRAL
ASIA
Central Asia region continues to be a high potential market
with many large projects in the pipeline. Central Asia is going to witness a
growth in power demand and lot of investment in Power sector is being planned
in this region, especially related to Hydro electric projects. This will also
result in lot of demand for Transmission and Distribution system.
CABLES
The demand for cables is directly dependent on the growth in
power sector, railways, real estate, telecom, refineries etc. Of the total
requirement for cables, 80% requirement is from power sector, followed by 10%
requirement by telecom sector and balance from other industries.
The current market size of Power Cables in India is
estimated to be around Rs.120000.000 Millions per annum and is expected to grow
to Rs.200000.000 Millions per annum during the Twelfth Plan period.
There is an increasing demand for Extra High Voltage cables (66
kV and above) and the same is expected to grow significantly in the future due
to overall urbanisation. The demand for optical fibre cables is increasing
given the growth in the telecom sector, making India the fifth largest consumer
globally.
TELECOM
The telecom operators are now targeting ‘B’ and ‘C’ class
cities for growth where there can be an increased demand for towers. The
allocation of spectrum for 3G and broadband wireless access services may also
increase the requirements for tower supplies.
RAILWAYS
The Annual Railway Budget of Government of India has
proposed the highest ever plan outlay at Rs.576300.000 Millions for 2011-12 on
Indian Railways.
Key focus areas for investments includes electrification,
capacity enhancements, addition of new lines, gauge conversion, doubling of
lines on congested routes, construction of dedicated freight corridors, repair
and rehabilitation of tracks and bridges, replacement of overhead-based
communication systems with Optical Fiber Cable (OFC) and quad-cable-based
communication systems to achieve real-time control.
The Delhi Metro Phase III and Mumbai Metro phase III are
proposed to kick-off in FY 2012. Delhi Metro Phase III would add another 105km
to the network at a cost of Rs.280000.000 Millions built over next four years.
The Government of India, Ministry of Railways has plans to complete the
Dedicated Freight Corridor project (around 2,700 km) by 2017 at an estimated
cost of Rs.400000.000 Millions.
WATER
India with 2.3% of the world’s total area has 16% of the
world’s population; but only has 4% of the total available fresh water.
Further, only 21% of the total Indian population has access to piped drinking
water and 28% of Indian population has sustainable access to improved
sanitation facilities. Only 27% of the waste water gets treated before disposal
which is increasingly causing pollution.
Technological changes are driving the way water is used,
cleaned and reused. Industries are investing in new technologies and processes
that reduce water use and waste water discharges. Agricultural productivity is
being leveraged by drip irrigation and maintained by soil fertility and
conservation techniques. As water scarcity becomes acute, it is expected that
there will be an increased demand for large-scale and cost-effective
water-reuse technologies and improved desalination and purification
technologies.
The Eleventh Five Year Plan has an allocation of
Rs.2462340.000 Millions for irrigation, flood control and command area
development and Rs.1116890.000 Millions for urban water supply and sanitation
projects targeting 100% water supply and sanitation to urban populations. The
Government also permits 100% Foreign Direct Investment (FDI) in all water
system projects, further opening the growth opportunity in the sector. The
Government has also initiated Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) to encourage reforms and fast track planned development in identified
cities where it invests substantially for water supply, desalination and sanitation
in respect of water related schemes.
FINANCIAL
PERFORMANCE
Net Sales for the year on a consolidated basis was
Rs.44741.600 Millions, a growth of 14.51% over the previous year. This year,
the Company has achieved a billion dollar Sales. On a standalone basis, Net
Sales stood at Rs.39627.800 Millions.
EBITDA (excluding non-recurring VRS expenses of Rs.84.900
Millions) at a consolidated level stood at Rs.4735.300 Millions, registering an
increase of 16.4%. EBITDA Margins increased by 20 basis points for the year to
10.6% of net sales. On a standalone basis, EBITDA (excluding VRS expenses)
stood at Rs.3804.300 Millions.
Depreciation on consolidated level for the year stood at
Rs.408.100 Millions as against Rs.270.200 Millions in last year. It increased
primarily due to the amalgamation of RPG Cables limited (from March 1st 2010),
acquisition of SAE Towers (from September 23rd 2010) and capitalisation of
tower testing station at Butibori (Nagpur). On a standalone basis, depreciation
was Rs.344.900 Millions.
Net profit at a consolidated level for the year was at
Rs.2056.500 Millions as against Rs.1896.600 Millions in the previous year, an
increase of 8.43%. On a standalone basis, it was Rs.1470.900 Millions.
Dividend has been maintained at 60% reflecting a
distribution of Rs.357.400 Millions. This includes the dividend distribution
tax. Consolidated EPS stood at Rs.8.00 per share. Standalone EPS stood at
Rs.5.72 per share.
OPERATIONAL
HIGHLIGHTS
KEC secured orders worth approx. Rs.62000.000 Millions
during the year, taking its total order book to Rs.78000.000 Millions. Business
vertical-wise-highlights are mentioned below:
Transmission: Entered in Americas by acquiring SAE Towers;
Good order intake
The Company established its foothold in Americas by
acquiring U.S. based, SAE Towers Holdings LLC, manufacturer of steel lattice
transmission towers in Americas. SAE Towers LLC increased its order book from
Rs.5800.000 Millions at the time of acquisition to Rs.8920.000 Millions at the
end of financial year. In addition to this, KEC also signed an agreement for
its largest ever tower supply order from Canada worth Rs.7350.000 Millions. As
a result of this, the Company’s consolidated order book share by end of March
2011 from Americas is 20.9% as compared to Nil in previous year.
During the year, the Company entered in the Georgia (CIS
Region) by securing an order worth Rs.3260.000 Millions and re-entered the
Philippines (Far East Asia region) after a decade by securing an order worth
Rs.420.000 Millions. Further it consolidated its presence in Southern African
region (SADC) by securing 3 orders for 765 kV transmission lines from South
Africa and 1 order from Zambia. Total value of these orders is Rs.2610.000
Millions. The Company also secured orders from Middle East (Abu Dhabi, Saudi)
and Africa (Nigeria) worth Rs.2810.000 Millions during the year.
In India, the Company received orders worth Rs.8280.000
Millions from PGCIL and Rs.7640.000 Millions from Rajasthan, Maharashtra and
Andhra Pradesh State utilities for construction of transmission lines. The
Company widened its client base by securing orders worth Rs.1460.000
Millions from new private sector customers
Bina Power Supply Company and Parbati Koldam Transmission Company.
Power Systems: Strengthened presence in Sub-stations;
Forayed into E-BoP
The Company entered into the 400 kV sub-station segment in
India and secured 2 orders worth Rs.1300.000 Millions from PGCIL. It also
strengthened the business in the global markets by securing its largest
sub-station order from Kazakhstan (CIS Region) worth Rs.9420.000 Millions in
which KEC share is over Rs.5500.000 Millions. It also secured sub-station order
from Bhutan (SAARC Region) worth Rs.620.000 Millions.
Cables: Expanding manufacturing capacity
The Company is setting up a green field project in Savli,
Vadodara for manufacturing of High Tension and Extra High
Voltage Cables. The Company has acquired 54 acres of land
and the construction is in progress.
Railways: Acquired Signaling Company; Increasing Presence
The Company has over the years established a significant
presence in Railway electrification and in the last few years diversified into
other areas of Railway Infrastructure which includes civil infrastructure,
earthwork, bridges, tunnels, track laying etc. In September 2010, the Company
acquired Jay Railway Signaling Private Limited, which will help in building
pre-qualification for Railway signaling projects. The Company has grown its
Railway order book to Rs.3890.000 Millions from Rs.1360.000 Millions in the
previous year. It has also forayed into International market in this business
by securing a Railway electrification order from Malaysia worth Rs.300.000 Millions.
Telecom: Secured orders worth about Rs.800.000 Millions.
The Company has increased its order book to Rs.350.000
Millions as compared to Rs.110.000 Millions in previous year. In this business,
the Company secured orders worth about Rs.800.000 Millions during the year.
Water: Forayed into Water Infrastructure business
The Company believes that Water Infrastructure has
tremendous opportunity and given its expertise in project management and EPC
infrastructure space, KEC forayed into the water segment during the year. The
Company is focusing on projects both in Water Resource Management and Waste
Water Treatment space. The Company has entered into an agreement for advanced
technologies with BIOWORKS AG (Germany) who is specialist in design and execution
of water and water and wastewater treatment systems. During the year, the
Company received its breakthrough order worth Rs.310.000 Millions relating to
construction of canal from Madhya Pradesh.
SCHEME
OF AMALGAMATION:
A Scheme of Amalgamation (the Scheme) between RPG Cables
Limited (RPGCL) and the Company and their respective Shareholders under Section
391 to 394 of the Companies Act, 1956 was sanctioned by the Hon’ble High Court
of Judicature at Bombay on February 26, 2010 and at Karnataka, Bangalore on
March 17, 2010. The Scheme, which has become operative from March 31, 2010 upon
filing of the certified copies of the Orders of the Hon’ble High Courts with
the Registrar of Companies in the respective States, is effective from March 1,
2010 (The Appointed date).
Pursuant to the Scheme, with effect from the Appointed date
RPGCL (Transferor Company) is amalgamated in the Company, as a going concern,
with all its assets, liabilities, properties, rights, benefits and interest
therein subject to existing charges thereon in favour of banks and financial
institutions.
CONTINGENT
LIABILITIES IN RESPECT OF:
(a)
Claims against the Company not acknowledged as debts:
|
Nature of Claims
|
Relating
to various years comprise in the period |
31.03.2011 |
31.03.2010 |
|
|
|
(Rs. In Millions) |
|
|
Sales Tax* (Tax/Penalty/Interest) |
1993-2010 1995-2009 |
267.822 |
67.906 |
|
Excise Duty * (Tax/Penalty/Interest) |
1994-2011 1994-2010 |
196.914 |
131.610 |
|
Service Tax * (Tax/Penalty/Interest) |
2004-2010 2006-2008 |
1.484 |
2.457 |
|
Entry Tax (Tax/Penalty/Interest) |
1995-2008 1995-2005 |
6.043 |
3.200 |
|
(i)
Income Tax matters mainly in respect of disallowance of depreciation etc. relating
to Power Transmission Business acquired by the Company |
A.Y.2006-07 to 2009-10 A.Y.2006-07
and 2007-08 |
724.144 |
557.960 |
|
(ii) Income Tax matters at overseas unit/s |
2002 2007 |
108.979 |
110.497 |
|
Civil Suits |
1993-1994 1993-1994 |
0.500 |
0.500 |
|
Demands of employees/ sub contractors |
|
Amount
Not Determinable |
|
*These claims mainly relate to the issues of applicability,
issue of disallowance of cenvat credit and in case of Sales Tax, also relate to
the issue of submission of ‘C’ forms.
(b) Other
matters for which the Company is contingently liable:
|
Particulars |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
|
|
|
|
|
|
Bills discounted |
352.117 |
1669.561 |
|
Guarantees
given to banks for credit facilities extended/ loans given to the wholly
owned subsidiary companies Rs.6003.421 Millions. Facilities / loans
outstanding at the year end |
4732.657 |
-- |
|
Performance
guarantee given to a customer of the wholly owned subsidiary Company |
1967.114 |
1981.746 |
|
Bank
guarantees provided by the Company to customers of the wholly owned
subsidiary companies in connection with the respective contracts awarded/bids
made |
223.742 |
182.211 |
|
Performance
guarantee provided by a bank to the customer of the wholly owned subsidiary
Company by utilising the Company’s credit facility with that bank |
19.186 |
-- |
|
Contingent
liability of Income Tax taken over by the Company in terms of the Composite Scheme
of Arrangement under which the Power Transmission Business was acquired by
the Company |
73.125 |
75.278 |
Foot
Note for 5 (a) and (b) above:
Future ultimate outflow of resources embodying economic benefits
in respect of the above matters are ,uncertain as it depends on the final
outcome of the matters involved.
FIXED ASSETS:
·
Freehold and
· Buildings
· Plant and Machinery
· Computers
· Furniture and Fixtures
· Electrical Installations
· Vehicles
· Computer Softwares
· Brand
· Goodwill
WEBSITE DETAILS:
COMPANY
Subject is one of the largest Power Transmission Engineering, Procurement and Construction (EPC) companies in the world. KEC, a Rs.40000 millions turnover company of the RPG Group, has made an indelible mark on the world map by constantly and consistently re-engineering itself to retain its position of leadership in the areas of quality, technology, capacity and capability. KEC has gone from strength to strength successfully exporting its EPC services to over 43 countries and widening its client base across the world.
KEC's strengths lie in Design, Manufacture, Supply and Construction of Turnkey Projects in the areas of Power Transmission lines up to 1200 kV, Power Distribution networks, Substations , Telecom , Railways, Cabling and Engineering Services. It has also developed in-house expertise to execute hot line stringing and Optical Ground Wire (OPGW) jointing.
KEC today has excellent
Project Management capabilities in five major business areas:
· Power Transmission
· Power Distribution and Design Services
· Telecommunications Infrastructure
· Railway Infrastructure
· Cables Manufacturing
PRESS RELEASE:
KEC
International wins orders worth Rs.4000.000 Millions.
· Secures two transmission line orders from Private Sector Customers – DB Power Limited and CESC Limited
· Secured transmission line order from Punjab State Utility.
· Wholly owned subsidiary SAE Towers wins tower supply orders worth Rs.1500.000 Millions.
· Wins Power and Telecom Cables supply orders worth Rs.500.000 Millions.
Mumbai, August 9, 2011: order is for turnkey
construction of 220 kV Multi Circuit Transmission Line from PGCIL’s Subhasgram
Substation to West Bengal State Electricity Transmission Corporation Limited
existing line at Saitala. The completion period is approx. 14 months.
The Company secured three orders for transmission lines in India,
of these two orders are from Private sector customers - CESC Limited and DB
Power Limited and one order is from State Utility - Punjab State Transmission
Corporation Limited (PSTCL, Patiala). Total value of these orders is
Rs.2000.000 Millions.
The CESC Limited, order
is for turnkey construction of 220 kV Multi Circuit Transmission Line from
PGCIL’s Subhasgram Substation to West Bengal State Electricity Transmission
Corporation Limited existing line at Saitala. The completion period is approx.
14 months.
The DB Power Limited , order
is for turnkey construction of 400 kV Double Circuit Transmission Line for
power evacuation from its Baradarha Power Plant, Chattisgarh to PGCIL’s 400/765
kV pooling point in Raigarh, Chattisgarh. Total completion period is approx. 12
months.
The PSTCL, order
is for turnkey construction of 400 kV transmission line from Rajpura to Nakodar
in Punjab. Total completion period is approx. 15 months.
SAE Towers, the
Company’s wholly owned subsidiary, has secured various orders for tower supply
in North America and South America worth Rs.1500.000 Millions.
In addition to above, the Company has won various orders
various orders for Power and Telecom
Cables worth Rs.500.000 Millions.
We are seeing good order inflow
in Transmission business; we have secured over Rs.10000.000 Millions orders in
this vertical during current financial year so far. We are happy that in
addition to geographical and business diversification, we have also diversified
our client base by securing orders from Private Sector Customers. Apart from
this, our wholly owned subsidiary SAE Towers continues to deliver good order
inflow. Its order book currently stands at Rs.9680.000 Millions as compared to
Rs.5500.000 Millions at the time of acquisition in September 2010.” said Mr. Ramesh Chandak, MD and CEO KEC
International Limited.
ABOUT KEC INTERNATIONAL LIMITED
KEC International is a billion
dollar turnover, global infrastructure Engineering, Procurement and
Construction (EPC) major. It has presence in the verticals of Power
Transmission, Power Systems, Cables, Railways, Telecom and Water. The Company
has powered infrastructure development in 45 countries across South Asia,
Middle East, Africa, Central Asia and Americas. It is a flagship Company of the
RPG Group.
ABOUT RPG ENTERPRISE.
RPG Enterprises, established in
1979, is one of India’s fastest growing business groups with turnover touching
Rs.180000.000 Millions. The group has more than sixteen companies managing
diverse business interests in the areas of Power, Tyre, Infrastructure, IT,
Retail, Entertainment, Carbon Black and Speciality.
DODA,
KISHTWAR PLUNGE INTO DARKNESS AS NHPC TRANSMISSION LINE DEVELOPS SNAG
Early
Times (India)
30
August 2011
[What follows
is the full text of the news story.]
Kishtwar, Aug. 30 -- Doda and Kishtwar districts today
plunged into darkness following a technical snag in the 132 KV transmission
line of NHPC at Khora Pani here.
There was no electricity in the two districts for the past
12 hours, leading to inconvenience to the people.
Though efforts were being made to find out and repair the
snag, the electricity had not been restored till late tonight. The 132 KV line
provides electricity to 70 per cent consumers in the erstwhile Doda district.
The line developed some technical snag due to excessive load
on it, official sources said.
The Congress-PDP coalition government, led by Ghulam Nabi
Azad, had sanctioned Rs.2000.000 Millions under Prime Minister Reconstruction
Program (PMRP) for the construction of four grid stations at Banihal, Ramban,
Gandoh and Kishtwar. In addition to 4 grid stations, Azad had also accorded
sanction for double circuit 132 KV transmission line at the cost Rs.1500.000
Millions.
According after according sanction for construction of four
grid stations and 132 KV double Circuit transmission line, Contract was awarded
to KEC International in 2006 for construction of three grid stations at Ramban,
Gundow and Kishtwar in addition to Construction of 132 KV double circuit line,
where as the construction of 4th grid station at Banihal was taken up by PDD
itself.
KEC International had, however, yet not completed the work.
Published by HT Syndication with permission from Early Times.
KEC
INTERNATIONAL BAGS MISCELLANEOUS ORDERS WORTH RS.4000.000 MILLIONS
Accord Fintech (India)
09 August 2011
[What
follows is the full text of the news story.]
India, Aug. 09 -- KEC International (KEC), a billion dollar
global infrastructure EPC player, has won new orders to the tune of Rs.4000.000
Millions. The company has secured three orders aggregating to Rs.2000.000
Millions for transmission lines in India, of these two orders are from Private
sector customers - CESC and DB Power and one order is from State Utility -
Punjab State Transmission Corporation (PSTCL, Patiala). The CESC's order is for
turnkey construction of 220 kV Multi Circuit Transmission Line from PGCIL's
Subhasgram Substation to West Bengal State Electricity Transmission Corporation
existing line at Saitala with the completion period of approximately 14 months.
Meanwhile, the DB Power's order is for turnkey construction of 400 kV Double
Circuit Transmission Line for power evacuation from its Baradarha Power Plant,
Chattisgarh to PGCIL's 400/765 kV pooling point in Raigarh, Chattisgarh with
the total completion period of approximately 12 months.The PSTCL order is for
turnkey construction of 400 kV transmission line from Rajpura to Nakodar in
Punjab with the total completion period of approximately 15 months. Moreover,
SAE Towers, the company's wholly owned subsidiary, has secured various orders
for tower supply in North America and South America worth Rs.1500.000 Millions.
In addition, the company has won various orders for Power and Telecom Cables
worth Rs.500.000 Millions. Published by HT Syndication with permission from
Accord Fintech.
SPEED-BREAKER:
INFRA SECTOR MAY SEE A SLOWDOWN
Hindustan Times (India)
31 July 2011
[What follows is
the full text of the news story.]
Mumbai, July 31 -- The infrastructure
sector is likely to grow at a slower rate than expected amid concerns of a
slowdown in the Indian economy and global debt worries, said Ramesh Chandak,
managing director and CEO, KEC International. "If you ask me, is the
business growing? Yes it is. But is it growing at the expected rate? Then I
must say no, it isn't," said Chandak.
KEC, the Rs.21000.000 Millions RPG Group company, feels that there is a
strong potential for growth in emerging economies particularly in Africa.
The company sees a robust two-three years ahead for the infrastructure
industries and especially KEC, which has now added water, power, railways and
cabling to its transmission-driven business.
"These days you talk about countries in trouble. The first thing a
country in trouble does is to increase its spend on infrastructure -roads,
power, water, etc. The power sector is growing very fast in the emerging
economies, particularly Africa. I see a lot of potential for growth. For the
next five years we are in the right business, right company and have the right
credentials."
Chandak also stressed on the need to create a pool of skilled workforce
for the sector as the industry is facing a crunch on that side. The only
long-term solution to this is to improve the salary structure of skilled
workers, he said. Published by HT Syndication with permission from Hindustan
Times.
OVERSEAS BORROWINGS
SET TO RISE
MINT
28 July 2011
[What follows is the
full text of the news story.]
MUMBAI,
July 28 -- Indian companies will increasingly look to borrow overseas
in the next few months as money becomes dearer at home following the latest
interest rate increase, the Reserve Bank of India (RBI) reining in loan growth
at commercial banks and the local currency strengthening.
This could hit business at Indian banks as companies raise
dollar denominated funds abroad by way of external commercial borrowings
(ECBs), bankers said.
"That is quite natural," said Bhaskar Sen,
chairman and managing director of Kolkata based United Bank of India. "In
certain cases, it is already happening. Business volume will come down and
borrowers will either look for alternative source of funds or postpone their
pro- jects."
On Tuesday, RBI raised its key policy rate by a more than
expected 50 basis points (bps) to 8% to tame inflation, the 11th time it has
done so since March 2010. One basis point is one-hundredth of a percentage
point.
Foreign currency borrowing has been on the rise for some
time. Between January and May, Indian companies borrowed $14.5 billion ('63,800
crore today) through ECBs, up 28% from $11.35 billion in the same period a year
earlier, according to RBI data.
The differential between Indian and overseas rates works out
to 3-4% even after hedging for the dollar cost, said Ashish Parthasarthy,
treasurer, HDFC Bank Limited
"Companies wanting to raise non-convertible debt of say
'500 crore will have to pay interest in double digits. The same money is
available in dollar terms for a tenure of three years or more at a rate 4%
cheaper," Parthasarthy said.
The ECB borrowing rate is linked to the six-month London
inter-bank offer rate (Libor), currently 0.42%. Typically, Indian companies pay
about 300-400 bps above Libor on such loans.
In the current scenario, even after factoring in 3-6%
hedging costs, the effective rate works out to 7.5-10.5%, lower than even the
base rate, the minimum lending rate at commercial banks. Firms typically pay at
least a few percentage points more than the base rate, which is 9.5% at state
owned State Bank of India, the country's biggest commercial bank.
Such decisions are also determined by other factors, said
Koushik Chatterjee, group chief financial officer, Tata Steel Limited
"Whether foreign borrowing makes more sense than
(borrow- ing) in India depends on where the deployment of the fund is going to
be," Chatterjee said. "If the fund is to be spent overseas, obviously
it makes more sense to borrow outside. However, if the debt is going to be
serviced out of cash generated from Indian operations, then it is still better
to borrow locally as the all-in cost, including that of hedging, will be almost
the same and the arbitrage will be much narrower." Tata Steel does not
have any fund raising plans currently.
In May, the government had raised the headroom for companies
to borrow abroad to $30 billion from $20 billion for fiscal 2011-12.
The rupee's movement has also made overseas borrowing
attractive. It hit a three-year high against the dollar on Wednesday as
investors bought the Indian currency attracted by the interest rate
differential. A stronger rupee benefits companies borrowing overseas. The rupee
touched 43.85 against the dollar, the highest since 29 August 2008, be- fore
closing at 44.08, the strongest since 8 April 2011.
The US Federal Reserve's tar- get fund rate is currently
0.25%, making for a differential with the domestic rate of about 7.75%.
Banks that have raised lending rates following the RBI move include
Yes Bank Limited. ING Vysya Bank Limited and Development Credit Bank Limited.
Others are expected to follow suit in the next few days.
Indian banks can't compete with overseas lenders, said R.K.
Bansal, executive director at state owned IDBI Bank Limited.
"If a company can borrow at cheaper rates abroad, then
why should it borrow from the do- mestic market?" asked Bansal.
"Indian banks are giving high rates because they are
paying high rates on deposits. Given inflation staying where it is today, the
situation is likely to persist."
RBI lowered the loan growth target for Indian banks to 18%
in the current fiscal from its earlier projection of 19% in a clear indication
to banks that they should go slow on disbursals and there by curtail credit demand.
Most bankers, including State Bank of India and its nearest
competitor, ICICI Bank Limited, have said there have been signs of such
moderation. Year-on- year bank loan growth slowed to 19.5% in July from 21.3%
in March.
Indian companies which earn receipts through exports have a
natural hedge and, hence, their costs are much cheaper, making borrowing from
abroad a foregone conclusion for them, said HDFC Bank's Parthasarthy.
RBI governor D. Subbarao said on Tuesday that the central
bank was not worried about the increase in dollar inflows because of the wider
interest rate differential.
"That's the way the markets operate. But there are caps
on interest rates, restrictions on end use of the money and tenor. Those will
ensure ECB flows are not too much," Subbarao said.
For instance, effective January 2010, companies are not
allowed to pay more than 300 bps above Libor for a loan up to five years and
more than 500 bps above Libor for loans above five years.
They are not allowed to borrow abroad for tenures less than
three years. Besides, only loans taken for capital expenditure, trade finance
and imports qualify as ECBs.
Vardhan Dharkar, chief financial officer of KEC
International Limited, the flagship of Harsh Goenka controlled RPG Enterprises,
agreed corporate houses will be inclined to borrow from the overseas market.
"At present, around half of our debt is in foreign
currency, and this may possibly increase by another 5%," Dharkar said.
"Our strategy to optimize the cost of borrowing
continues and depending on the kind of project we are undertaking and the time,
we will assess whether to borrow from India or outside." Published by HT
Syndication with permission from MINT.
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.46.97 |
|
|
1 |
Rs.74.22 |
|
Euro |
1 |
Rs.63.66 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
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 |
|
64 |
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.