MIRA
INFORM REPORT
|
Report Date : |
04.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
LAKSHMI MACHINE WORKS LIMITED |
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Registered Office : |
Perianaickenpalayam, SRK Vidyalaya Post, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
14.09.1962 |
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Com. Reg. No.: |
18-463 |
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Capital Investment / Paid-up Capital : |
Rs.112.665 Millions |
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CIN No.: [Company
Identification No.] |
L29269TZ1962PLC000463 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBL03078F |
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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 : |
Manufacturing of wide range of spinning and pre-spinning machinery,
weaving machineries, castings, pilot mill, metal cutting including grinding
machines, payphone, granite and floriculture. |
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No. of Employees : |
Around 3858 |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (78) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
||
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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 |
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Maximum Credit Limit : |
USD 33078404 |
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Status : |
Very 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. Fundamentals are strong
and healthy. 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. It can be regular as a promising business partner in medium to long
run. |
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) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
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
|
Registered Office : |
Perianaickenpalayam, SRK Vidyalaya Post, |
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Tel. No.: |
91-422-2692371-379 / 2892371-79 / 6612263
/ 6612551/ 3022255/ 6612216/ 6612207 |
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Fax No.: |
91-422-2692541 / 542 / 543/ 2892541-42 |
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E-Mail : |
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Website : |
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Corporate Office : |
34-A, |
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Tel. No.: |
91-422-2221680/ 82-87 |
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Fax No.: |
91-422-2220912 |
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E-Mail : |
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Factory 1: |
Unit I
Perianaickenpalayam, |
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Tel No: |
91-421-3983000
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Fax No.: |
91-421-2333270
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E mail: |
Unit2@lmw.co.in
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Factory 2: |
Unit II
Kaniyur, |
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Factory 3: |
Spindles and Rings Unit
SF 113, |
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Factory 4: |
Bearings
Unit
SIPCOT Industrial Complex, Gummudipoondi - 601 201, |
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Factory 5: |
wind mill
division
Kethanur, Palladam (TK), |
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Factory 6: |
commercial
tool room
Sangothipalayam, |
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Factory 7: |
agro
division
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Factory 8: |
MACHINE
TOOL DIVISION
Arasur, |
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Tel No: |
91-421-3983000/ 3022537
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Fax No.: |
91-421-2360029/ 3022577
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E mail: |
Mtdsales@lmw.co.in
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Factory 9 |
FOUNDRY DIVISION
Arasur, |
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Tel No: |
91-421-3983000/ 3022553/
3022511
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Fax No.: |
91-421-2360029/ 3022577
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E mail: |
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Factory 10: |
G. K. D.
INSTITUTE FOR TECHNOLOGICAL RESOURCES
Arasur, |
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Factory 11: |
Ganapathy, Coimbatore-641006, |
DIRECTORS
|
Name : |
Dr. D. Jayavarthanavelu |
|
Designation : |
Chairman and Managing Director |
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Qualification : |
Engineering and DS Textiles |
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Date of Appointment : |
03.04.1970 |
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Name : |
Mr. M. V. Subbiah |
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Designation : |
Director |
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Name : |
Mr. S. Pathy |
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Designation : |
Director |
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Name : |
Mr. R. Satagopan |
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Designation : |
Director |
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Name : |
Mr. Basavaraju |
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Designation : |
Director (Nominee of LIC) |
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Name : |
Mr. R. Venkatrangappan |
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Designation : |
Wholetime Director |
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Qualification : |
B.Sc., B.Com. |
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Previous
Employment : |
Lakshmi Textile Exporters Limited |
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Name : |
Mr. Sanjay Jayavarthanavelu |
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Designation : |
Wholetime Director |
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Qualification : |
MBA |
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Date of Appointment : |
3rd June, 1994 |
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Name : |
Mr. R. Rajendran |
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Designation : |
Director in Finance |
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Name : |
Mr. Dr. Mukund Govind Rajan |
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Designation : |
Director |
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Name : |
Mr. Aditya Himatsingka |
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Designation : |
Director |
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Name : |
Justice Mr. G Ramanujam (Retd) |
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Designation : |
Director |
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Name : |
Justice Mr. R Natarajan (Retd) |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K. Duraisami |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
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301.866 |
2.68 |
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2890878 |
25.66 |
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(B)
Public Shareholding |
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939.968 |
8.34 |
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|
2510 |
0.02 |
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1827774 |
16.22 |
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271805 |
2.41 |
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1698648 |
15.08 |
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1670253 |
14.82 |
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|
752996 |
6.68 |
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|
6765 |
0.06 |
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|
4400 |
0.04 |
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|
240 |
-- |
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|
101335 |
0.90 |
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|
12920 |
0.11 |
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392626 |
3.48 |
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391520 |
3.48 |
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Total
|
11266504 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of wide range of spinning and pre-spinning machinery,
weaving machineries, castings, pilot mill, metal cutting including grinding
machines, payphone, granite and floriculture. |
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Products : |
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Exports : |
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Countries : |
Bangladesh, Botswana, Ghana, Indonesia, Iran, Kenya, Malaysia, Nepal,
Nigeria, Philippines, Sri Lanka, Switzerland, Thailand and Turkey |
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Imports : |
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Countries : |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Spinning
Machinery |
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|
|
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|
Spinning Preparatory Machinery |
Nos. |
3287 |
5000 |
2443 |
|
Yarn Making Machinery |
Nos. |
5084 |
3300 |
1882 |
|
Accessories and Parts |
Nos. |
211 Lacs |
279 Lacs |
-- |
|
Weaving
Machinery |
|
|
|
|
|
Weaving Preparatory Machinery |
Nos. |
211 |
-- |
-- |
|
Textile packaging Machinery |
Tonnes |
196 |
-- |
-- |
|
Pilot Mill |
Spindle |
28000 |
8000 |
-- |
|
Metal Cutting Including Grinding Machines |
Nos. |
900 |
900 |
1081 |
|
Diesel Engines |
Nos. |
2676 |
-- |
-- |
|
Casstings |
Tonnes |
15000 |
15000 |
29188 |
GENERAL INFORMATION
|
No. of Employees : |
Around 3858 |
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|
|
|
Bankers : |
v
Indian
Bank, v
Bank
of v
Citibank
N.V., Coimbatore. v
Bank
of v
HDFC
Bank Limited, v IDBI Bank
Limited v Standard
Chartered Bank v Deutsche Bank |
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|
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Facilities: |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
v
M.
S. Jagannathan and Visvanathan Chartered Accountants v
Subbachar
and Srinivasan Chartered Accountants |
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Collaborators : |
H. |
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Joint Venture : |
Rieter
LMW Machinery Limited |
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Wholly Owned Subsidiary
Company: |
LMW Textile Machinery (Sizhou) Company Limited |
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Associates: |
· Annur Satya Textile Limited · Eshaan Enterprises Limited · Harshini Textiles Limited · Hermes Academy of Training Limited · Integrated Electrical Controls Limited · Lakshmi Cargo Company Limited · LCC Cargo Holdings Limited · Lakshmi Electrical Drives Limited · Lakshmi Technology & Engg. Industries Ltd · Lakshmi Ring Travellers (Cbe) Limited · Lakshmi Electrical Control Systems Limited · Lakshmi Precision Tools Limited · Lakshmi Life Sciences Limited · Mahalakshmi Engineering Holdings Limited · Quattro Engineering India Limited · Sri Kamakoti Kamakshi Textiles P Ltd · Super Sales India Limited · Starline Travels Limited · The Kuppuswamy Naidu Charity Trust for Education and Medical Relief · Titan Paints and Chemicals Limited · Venkatavaradha Agencies Limited ·
Walzer Hotels Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11,266,504 |
Equity Shares |
Rs.10/- each |
Rs.112.665
millions |
|
|
|
|
|
Out of the above :
- 230,010 Shares are allotted as fully paid up,
pursuant to a contract without payment being received in cash.
- 9,651,620 Shares are allotted as fully paid-up
by way of bonus shares by capitalisation of General Reserve.
- 210 Shares are allotted as fully paid-up on
account of Merger of India Precision Bearing Mfrs. Limited,
- with the Company.
- 177,520 Shares are allotted as fully paid-up
on account of Merger of Textool Company Limited with the Company
Note: The
Company during the year bought back and extinguished 11,02,746 (Previous year -
Nil) Equity Shares
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 |
112.665 |
123.692 |
123.693 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8156.936 |
9134.056 |
8303.573 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8269.601 |
9257.748 |
8427.266 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
276.041 |
330.939 |
471.184 |
|
|
|
|
|
|
|
|
TOTAL |
8545.642 |
9588.687 |
8898.450 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4260.041 |
4464.134 |
5185.882 |
|
|
Capital work-in-progress |
104.026 |
1.600 |
87.846 |
|
|
|
|
|
|
|
|
INVESTMENT |
1000.730 |
1214.424 |
1127.077 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2511.423
|
1103.980 |
824.600
|
|
|
Sundry Debtors |
1119.507
|
615.995 |
517.522
|
|
|
Cash & Bank Balances |
7289.587
|
7273.153 |
6197.020
|
|
|
Other Current Assets |
353.702
|
237.396 |
216.485
|
|
|
Loans & Advances |
1571.089
|
1023.142 |
2423.289
|
|
Total
Current Assets |
12845.308
|
10253.666 |
10178.916
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2670.273
|
1571.981 |
887.255
|
|
|
Other Current Liabilities |
6547.798
|
4534.100 |
4895.205
|
|
|
Provisions |
446.392
|
239.057 |
1898.811
|
|
Total
Current Liabilities |
9664.463
|
6345.138 |
7681.271
|
|
|
Net Current Assets |
3180.845
|
3908.528 |
2497.645
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8545.642 |
9588.687 |
8898.450 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
17733.117 |
11369.044 |
13380.139 |
|
|
|
Other Income |
1100.928 |
821.402 |
906.221 |
|
|
|
TOTAL (A) |
18834.045 |
12190.446 |
14286.360 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating Expenses |
12550.405 |
7736.115 |
9280.294 |
|
|
|
Employee Cost |
1683.428 |
1167.554 |
1197.918 |
|
|
|
Administrative Expenses |
1167.525 |
822.949 |
1090.263 |
|
|
|
TOTAL (B) |
15401.358 |
9726.618 |
11568.475 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3432.687 |
2463.828 |
2717.885 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3432.687 |
2463.828 |
2717.885 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1041.083 |
958.206 |
1176.173 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2391.604 |
1505.622 |
1541.712 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
731.810 |
458.783 |
472.364 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1659.794 |
1046.839 |
1069.348 |
|
|
|
|
|
|
|
|
|
Add/ Less |
Transfer from/(to) Investment Fluctuation Reserve |
25.589 |
607.809 |
(363.191) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6572.260 |
5243.968 |
4874.881 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
337.995 |
185.539 |
185.539 |
|
|
|
Tax on Dividend |
54.831 |
30.818 |
31.532 |
|
|
|
Transfer to General Reserve |
170.000 |
110.000 |
120.000 |
|
|
BALANCE CARRIED
TO THE B/S |
7694.817 |
6572.260 |
5243.968 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
502.756 |
262.352 |
328.710 |
|
|
|
Components and Spares Parts |
1766.839 |
1079.1 |
902.766 |
|
|
|
Capital Goods |
701.216 |
183.368 |
420.546 |
|
|
TOTAL IMPORTS |
2970.811 |
1524.820 |
1652.022 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
134.95 |
84.63 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
5111.480 |
5813.870 |
5382.610 |
|
Total Expenditure |
4402.650 |
4925.340 |
4695.290 |
|
PBIDT (Excl
OI) |
708.830 |
888.530 |
687.320 |
|
Other Income |
145.680 |
113.960 |
198.770 |
|
Operating
Profit |
854.510 |
1002.490 |
886.090 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
854.510 |
1002.490 |
886.090 |
|
Depreciation |
248.090 |
280.100 |
299.600 |
|
Profit
Before Tax |
606.420 |
722.390 |
586.500 |
|
Tax |
194.990 |
230.000 |
190.000 |
|
Reported PAT |
411.430 |
492.390 |
396.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
411.430 |
492.390 |
396.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.81
|
8.58 |
7.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.48
|
13.24 |
11.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.32
|
10.23 |
10.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.16 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.17
|
0.68 |
0.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.33
|
1.62 |
1.32 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the year, the Company has recorded a turnover of Rs.17733.117
Millions (2009-10 Rs.11369.044 Millions) resulting in a Net Profit of
Rs.2391.602 Millions before tax (2009 -10 Rs.1505.620 Millions). During the
year under review the turnover has increased by 56% and profit by 59%
respectively over the previous year due to good demand for Textile Spinning
Machinery and CNC Machine Tools.
TEXTILE MACHINERY
DIVISION
The Textile Machinery Division of the Company, during the year, has
recorded a turnover of Rs.151,81.321 Millions as against Rs.96,47.342 Millions
achieved during the last year recording an increase of 57% over the previous
year.
Financial year 2010-11 started on a positive note with demand having
picked up substantially for the Textile Spinning Machinery manufactured by the
Company. The increasing trend was seen throughout the year due to good
performance of Textile Spinning Mills which benefited on account of sustained
domestic demand for yarn; moderate input costs and a good yarn price realisation.
Such favourable conditions made the Textile Spinning Mills to embark with their
expansion and modernisation programmes during the period under review. Equally
the export market remained encouraging throughout 2010-11. The buoyancy in the
spinning sector has resulted in a good demand for Textile Spinning Machinery
manufactured by the Company. Apart from the robust external demand, prompt
delivery of machinery within a reasonable lead time to customers, efficient
after sale service, launch of a new cost-efficient, state of the art Ring Frame
model during the year enabled the Company to achieve this increased turnover.
Though the year was favourable, perceivable threats for the Textile
Spinning Industry are also foreseen. Frequent changes in the cotton and yarn
export policy by the government; infrastructure bottleneck like acute power
shortage is creating an unpredictable future for the Textile sector. The wide
fluctuation of cotton and yarn prices always affects the performance of the
Spinning sector and in turn defers their plans for expansion. The US and
Europe, traditionally the large buyers of Textile products are still struggling
to recover from the aftereffects of global economic melt down. Also, the levy
of additional Excise Duty on branded garments by the Government in the Union
Budget for 2010-11 has added further to the woes of the Textile sector.
Though the Union Budget of 2010-11 did not provide any sops to the
Textile sector, announcements such as allowing of 100% Foreign Direct Investment
in Textiles, commitment to quickly disburse funds under the Technology
Upgradation Fund Scheme and the steps taken by the Apparel Export Promotion
Council to encourage overseas investment in Indian Textile Industry provide
good hope for the Textile sector.
The recent announcement for revival of Technology Upgradation Fund
Scheme is expected to give a fillip to the demand for machinery.
The Global players are establishing their manufacturing facilities in
India to take a share in the market and the Company has to meet the
competition. Machine Tool Division Turnover of the Machine Tool Division during
the year under review was Rs.18,43.452 Millions as against Rs.9,48.065 Millions
recorded during the last year showing an increase of 94% over the previous
year.
MACHINE TOOL
DIVISION
Turnover of the Machine Tool Division during the year under review was
Rs.18,434.52 lakhs as against Rs.9,480.65 lakhs recorded during the last year
showing an increase of 94% over the previous year
The Machine Tool Division of the Company has witnessed a strong demand
growth during the year under review. With India becoming a major auto
manufacturing hub in Asia, the auto and related ancillary industries have
contributed strongly to the demand growth within the Machine Tool sector. Also
huge investments are taking place in Construction, Railways, and Defence
sectors across the country. Additionally, fast growth rates recorded by
emerging industries like Aerospace, Civil Aviation, Tool Room and Farm
Equipments provide huge business opportunity for the Company within the Machine
Tool industry. It has to be noted that the current trend within the Machine
Tool Industry is on buying more of standard machinery with tooled up solutions.
There is a huge business opportunity in this area which the Company is
technologically competent to take complete advantage of.
The Company had manufactured 1,081 machines during the year which is the
highest number in the history of this division. The Company’s precision machine
tool LH55 is an import substitution for the Horizontal Machining
Centres imported by OEMs and Tier One high end customers.
To cater generally to the growing demand for CNC Machine Tools in the
country, the Company has entered into
technology tie ups for developing high precision machinery range that
result in value addition to the customers.
Foundry Division Foundry Division has recorded a turnover of Rs 7,08.344
Millions as against Rs.7,73.637 Millions recorded during the previous year
showing a decrease of 8% over the previous year. This Division has exported
castings worth Rs 2,91.370 Millions accounting for about 41% of the turnover.
Though the division has a huge order book, decline in turnover is mainly
attributable to the lower capacity utilisation due to shortage of power and
trained workforce.
FOUNDRY DIVISION
Foundry Division has recorded a turnover of Rs 7,08.344 Millions as
against Rs.7,73.637 Millions recorded during the previous year showing a
decrease of 8% over the previous year. This Division has exported castings
worth Rs 2,91.370 Millions accounting for about 41% of the turnover. Though the
division has a huge order book, decline in turnover is mainly attributable to
the lower capacity utilisation due to shortage of power and trained workforce.
During the year, the Company has taken necessary steps to overcome the
acute power shortage and as well is doing the needful to re-position the
division’s capabilities by concentrating on high tech heavy castings. Demand
for the products of this division is likely to be strong in future with the
development of metro rail projects across multiple cities in India, enhanced
demand for turbo/traction parts for Indian Railway retrofit projects and also
with a greater emphasis being placed on Wind Energy Projects. Wind Mill
Division It is the continuous endeavor of the Company to tap non conventional,
renewable, clean resources for energy. In this regard, Wind Energy occupies a
centre stage in the energy policy of the Company.
As on 31st March 2011, the Company has installed 23 numbers of high
capacity Wind Energy Generators with a total installed capacity of 27.95 MW.
During the year under review this division has generated 689 lakh units as
against the 728 lakh units generated in the previous year. Out of the 689 lakh
units 29 lakh units were sold to TNEB and 660 lakh units were adjusted against
the power drawn from TNEB for captive consumption.
The wind power generated by the Company meets a major portion of its
power requirements and thereby brings about appreciable savings in the energy
cost. Advanced Technology Centre This division is focussing on the manufacture
of parts, components and accessories required by the Aerospace industry, and
also intended for undertaking job work to meet the Defence sector requirements
and is currently at an advanced stage of completion in one of our existing
factory premises. In this regard, arrangements have been made with leading
original equipment manufacturers/intermediaries for sourcing business. This
division is expected to commence commercial production during the financial
year 2011-12.
REAL ESTATE
DIVISION
This division is about to start work on its maiden project. The process
of seeking statutory approvals in this regard is currently underway. Initially,
about five acres of land situated at Ganapathy, Coimbatore will be developed
into a residential project consisting of flats.
EXPORTS
During the year under review, the Company has achieved an export
turnover as indicated below:
a. Textile Machinery Rs. 22,22.768 Millions (previous year Rs.3,99.888
Millions)
b. Castings Rs 2,91.370 Millions (previous year Rs.3,42.777 Millions)
Total Rs 25,14.138 Millions (previous year Rs.7,42.665 Millions) Export of
Textile Machinery includes exports worth Rs 9,14.762 Millions made to the
wholly owned subsidiary, LMW Textile Machinery (Suzhou) Co., Limited, China.
FIXED
ASSETS
- Land
- Buildings
- Machinery
- Furniture and Equipments
- Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.96 |
|
|
1 |
Rs.77.46 |
|
Euro |
1 |
Rs.64.39 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
78 |
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.