MIRA
INFORM REPORT
|
Report Date : |
05.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
ELECON ENGINEERING COMPANY LIMITED |
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Registered
Office : |
Anand, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
11.01.1960 |
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|
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Com. Reg. No.: |
04-001082 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.185.723 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L2959GJ1960PLC001082 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRDE00200E |
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PAN No.: [Permanent Account No.] |
AAACE4644D |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer and Exporter of Material Handling Equipments and
Reduction Gears. |
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|
|
|
No. of Employees
: |
2000 (Approximately) (In Office + In Factory) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 38000000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track. Financial
positions of the company appears to be sound. However trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Amit Patel |
|
Designation : |
Senior Technical Executive |
|
Contact No.: |
91-9687672810 |
|
Date : |
23.06.2012 |
LOCATIONS
|
Registered/ Corporate Office : |
Anand Sujitra Road, Vallabh Vidyanagar – 388120, Gujarat, India |
|
Tel. No.: |
91-2692-236469/ 236513/ 236516/ 236520/ 227113/ 227080/ 237016/ 236521/ 236590/ 227491/ 227960/ 230017 |
|
Mobile No.: |
91-9909917052 (Mr. Chirag) 91-9687672810 (Mr. Amit Patel) |
|
Fax No.: |
91-2692-236527/ 236457/ 227020 |
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E-Mail : |
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|
Website : |
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Area : |
25000 Sq. Ft |
|
Location : |
Owned |
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|
|
|
|
Have seven
factories in same address |
|
Factory (Material Handling
Equipment Division / Gear Division / Alternate Energy Division) : |
Material Handling Equipment Division (MHE –Div.), Anand – Sojitra
Road, Vallabh Vidyanagar – 388120, Gujarat, India |
|
Tel. No.: |
91-2692-237016 /17 / 236521 / 236590 / 227020 / 236469/ 236513/ 236516 |
|
Fax No.: |
91-2692-227020 / 227484 / |
|
Email : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Prayasvin B. Patel |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
53 Years |
|
Qualification : |
B. E. (Mechanical) M. B. A. (U. S. A) |
|
Experience : |
35 Years |
|
Date of Appointment : |
01.07.1983 |
|
|
|
|
Name : |
Mr. Prashant Amin |
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Designation : |
Executive Director |
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|
|
|
Name : |
Mr. Pradip M. Patel |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Chirayu R. Amin |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Hasmuklal Parikh |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Amritlal C. Shah |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Hemendra C. Shah |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
Mr. Paresh M. Shukla |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. U. V. Phani-kumar |
|
Designation : |
Chief Executive Officer (MHE and EPC) |
|
Date of Birth/Age : |
40 Years |
|
Qualification : |
B. E. (Mechanical), PGTQM, Advanced Masters Program in Project
Management |
|
Experience : |
19 Years |
|
Date of Appointment : |
05.08.2010 |
|
|
|
|
Name : |
Mr. Amit Patel |
|
Designation : |
Senior Technical Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2,122,999 |
2.29 |
|
|
40,585,720 |
43.71 |
|
Any Others (Specify) |
-- |
-- |
|
|
42,708,719 |
45.99 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
42,708,719 |
45.99 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
12,329,829 |
13.28 |
|
|
53,585 |
0.06 |
|
|
278,648 |
0.30 |
|
|
1,359,222 |
1.46 |
|
Any Others (Specify) |
-- |
-- |
|
Sub Total |
14,021,284 |
15.10 |
|
|
|
|
|
|
8,116,368 |
8.74 |
|
|
|
|
|
|
22,874,204 |
24.63 |
|
|
3,169,410 |
3.41 |
|
|
1,971,525 |
2.12 |
|
|
254,860 |
0.27 |
|
|
25,142 |
0.03 |
|
Non Resident Indians |
795,922 |
0.86 |
|
Hindu Undivided
Families |
525,615 |
0.57 |
|
Trusts |
3,000 |
-- |
|
Directors and their Relatives and
Friends |
366,986 |
0.40 |
|
|
36,131,507 |
38.91 |
|
Total Public shareholding (B) |
50,152,791 |
54.01 |
|
Total (A)+(B) |
92,861,510 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
92,861,510 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Material Handling Equipments and
Reduction Gears. |
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Products : |
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Exports: |
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Products: |
· Material Handling Equipments |
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Countries: |
·
Singapore ·
Sweden ·
Dubai ·
South Africa ·
Malaysia ·
UK ·
USA |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity* |
Installed
Capacity* |
Actual
Production+ |
|
Conveying Equipments |
Tonnes |
N. A. |
15000 |
13463.03 |
|
Wagon Tippler and Dust Trapping Equipment |
Nos. |
N. A. |
16 Sets each |
18 |
|
Crushers, Screens and Feeders |
Tonnes |
N. A. |
1000 |
628.05 |
|
Specialised Conveying Equipment, Stacker Reclaimers, Blender
Reclaimers, Rotary Disc, Loaders ect. |
Tonnes |
N. A. |
3000 |
4677.84 |
|
Reduction Gears and Geared Motors |
Nos. |
N. A. |
55000 |
40705.00 |
|
Wagon Marshalling Equipment |
Tonnes |
N. A. |
300 |
780.61 |
|
EOT Cranes and Goliath Cranes |
Nos. |
N. A. |
100 |
-- |
|
Wind Turbine Generators |
Nos. |
N. A. |
50 |
1 |
|
Axles** |
Nos. |
N. A. |
1500 |
73 |
* As certified by the Management
** For Captive Consumption
+ As per DGTD return
GENERAL INFORMATION
|
Customers : |
Wholesalers and End Users ·
NMDC Limited ·
Mundra Port and SEZ Limited ·
Lanco Infratech Limited ·
Ultra Tech Cement Limited ·
BHEL, Bangalore ·
Adani Hazira Port Private Limited (AHPPL) |
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No. of Employees : |
2000 (Approximately) (In Office + In Factory) |
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Bankers : |
·
State Bank of India ·
Bank of Baroda ·
EXIM Bank of India ·
Axis Bank Limited ·
HDFC Bank Limited ·
IDBI Bank Limited ·
Standard Chartered Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Thacker Butala Desai Chartered Accountant |
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Address : |
Navsari, Gujarat, India |
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Subsidiaries : |
·
Elecon Transmission International Limited,
Mauritius |
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|
|
|
Step down Subsidiaries : |
·
David Brown Systems Sweden AB, Sweden ·
Radicon Transmission UK Limited, U. K. ·
AB Benzlers, Sweden ·
Elecon USA Transmission Limited, USA ·
Benzlers Transmission A.S., Denmark ·
Benzlers Antribstechnik GmbH, Germany ·
Benzlers Antriebstechnik Gesmbh, Austria ·
OY Benzlers AB, Finland ·
Benzlers Malaysia |
|
|
|
|
Associates and Joint Ventures : |
·
Ringspann Elecon India Limited ·
Eimco Elecon India Limited ·
DRA India Limited ·
Elecon Australia Pty. Limited ·
Elecon Africa Pty. Limited ·
Elecon Singapore Pte. Limited ·
Elecon Middle East FZCO ·
Elecon Windfarm Developers (Motagunda –
Vinzalpur) Limited |
|
|
|
|
Enterprises over which individual personnel have significant influence
: |
·
Bipra Investments and Trust Private Limited ·
Devkishan Investment Private Limited ·
K.B. Investments Private Limited ·
Elecon Information Technology Limited ·
Emtici Engineering Limited ·
Prayas Engineering Limited ·
Speciality Wood Pack Private Limited ·
Power Build Limited ·
Kirloskar Power Build Gears Limited ·
Akaaish Mechatronics Limited ·
Madhuban Prayas Resorts Limited ·
Narmada Travels Limited ·
Wizard Fincap Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
225000000 |
Equity Shares |
Rs.2/- each |
Rs.450.000 Millions |
|
25000000 |
Cumulative Redeemable Preference Shares |
Rs.2/- each |
Rs.50.000 Millions |
|
|
|
|
|
|
250000000 |
|
|
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
92861510 |
Equity Shares |
Rs.2/- each |
Rs.185.723
Millions |
|
|
|
|
|
Notes: Of the above
i)
342100 Equity Shares of
Rs.2/- each in above (originally allotted 68420 Equity Shares of Rs.10/- each)
were issued as fully paid-up, pursuant to
a contract without payment being received in cash
ii) 17338890 Equity Shares of Rs.2/- each in above (originally allotted
3467778 Equity Shares of Rs.10/-
each) were issued as Bonus Shares by way
of capitalisation of Share Premium and Reserves.
iii) 5498160 Equity Shares of Rs.2/- each in above (originally allotted
1099632 Equity Shares of Rs.10/-
each) were issued as fully paid-up Equity
Shares on conversion of Debentures.
iv) 2716787 Equity Shares of Rs.2/- each were allotted as fully paid-up
Shares on conversion of FCCB of
Series ‘A’ 9000 nos. of $ 1000 each.
v)
61907673 Equity Shares of
Rs.2/- each in above were issued as Bonus Shares by way of capitalisation of
Share Premium and Reserves
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 |
185.723 |
185.723 |
185.723 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
3760.286 |
3075.341 |
2568.277 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3946.009 |
3261.064 |
2754.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3134.510 |
3328.770 |
5236.092 |
|
|
2] Unsecured
Loans |
2168.898 |
1886.989 |
684.728 |
|
|
TOTAL BORROWING |
5303.408 |
5215.759 |
5920.820 |
|
|
DEFERRED TAX
LIABILITIES |
410.645 |
402.585 |
327.803 |
|
|
|
|
|
|
|
|
TOTAL |
9660.062 |
8879.408 |
9002.623 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3684.504 |
3622.198 |
3110.193 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
363.455 |
56.757 |
108.680 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3144.466 |
3151.846 |
4007.466 |
|
|
Sundry Debtors |
6719.504 |
5175.855 |
4717.358 |
|
|
Cash & Bank Balances |
130.514 |
388.126 |
610.587 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
615.481 |
546.743 |
749.179 |
|
Total Current Assets |
10609.965 |
9262.570 |
10084.590 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3564.723 |
2946.948 |
2816.781 |
|
|
Other Current Liabilities |
1221.699 |
921.333 |
1269.924 |
|
|
Provisions |
245.887 |
219.884 |
231.023 |
|
Total Current Liabilities |
5032.309 |
4088.165 |
4317.728 |
|
|
Net Current Assets |
5577.656 |
5174.405 |
5766.862 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
34.447 |
26.048 |
16.888 |
|
|
|
|
|
|
|
|
TOTAL |
9660.062 |
8879.408 |
9002.623 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11089.237 |
9719.848 |
7896.132 |
|
|
|
Erection and other Charges |
682.849 |
743.857 |
1654.516 |
|
|
|
Other Income |
284.306 |
247.718 |
95.772 |
|
|
|
TOTAL (A) |
12056.392 |
10711.423 |
9646.420 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Materials, Sub Contracts, Erection and other charges |
7933.811 |
6937.692 |
7374.768 |
|
|
|
Employees remuneration and benefits |
563.946 |
435.185 |
438.322 |
|
|
|
Increase/ decrease in stock |
(45.093) |
346.651 |
(1054.964) |
|
|
|
Administrative Expenses |
1460.853 |
1170.412 |
1231.550 |
|
|
|
Power and Fuel Cost |
93.451 |
78.220 |
70.590 |
|
|
|
TOTAL (B) |
10006.968 |
8968.160 |
8060.266 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2049.424 |
1743.263 |
1586.154 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
458.258 |
508.890 |
483.680 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1591.166 |
1234.373 |
1102.474 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
384.267 |
331.203 |
221.471 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1206.899 |
903.170 |
881.003 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
327.687 |
241.417 |
306.491 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
879.212 |
661.753 |
574.512 |
|
|
|
|
|
|
|
|
|
Add/ Less |
Adjustment of Prior period |
0.000 |
7.738 |
(24.809) |
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
207.939 |
200.875 |
564.137 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General
Reserve |
650.000 |
500.000 |
750.000 |
|
|
|
|
Proposed Dividend |
167.151 |
139.292 |
139.292 |
|
|
|
Tax on Proposed Dividend |
27.116 |
23.135 |
23.673 |
|
|
BALANCE CARRIED
TO THE B/S |
242.884 |
207.939 |
200.875 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Reduction Gears |
364.060 |
361.818 |
295.211 |
|
|
|
Conveying Equipments |
193.784 |
274.674 |
111.287 |
|
|
|
Interest |
0.000 |
0.000 |
1.543 |
|
|
TOTAL EARNINGS |
557.844 |
636.492 |
408.041 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
495.490 |
481.586 |
1020.119 |
|
|
|
Stores & Spares |
33.511 |
27.570 |
31.405 |
|
|
|
Capital Goods |
71.016 |
477.596 |
850.072 |
|
|
|
Others |
0.000 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
600.017 |
986.752 |
1901.596 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic/Diluted |
9.47 |
7.13 |
6.19 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
2573.070 |
3368.070 |
3011.540 |
4419.770 |
|
Total Expenditure |
2123.480 |
2872.360 |
2523.800 |
3780.630 |
|
PBIDT (Excl
OI) |
449.590 |
495.710 |
487.740 |
639.140 |
|
Other Income |
0.000 |
4.050 |
0.000 |
14.500 |
|
Operating
Profit |
449.590 |
499.760 |
487.740 |
653.640 |
|
Interest |
132.740 |
143.080 |
142.640 |
150.100 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
316.850 |
356.680 |
345.100 |
503.540 |
|
Depreciation |
98.400 |
108.300 |
106.720 |
110.390 |
|
Profit
Before Tax |
218.450 |
248.380 |
238.380 |
393.150 |
|
Tax |
69.400 |
92.630 |
86.100 |
154.230 |
|
Profit after Tax |
149.050 |
155.750 |
152.280 |
238.910 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
149.050 |
155.750 |
152.280 |
238.910 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.29
|
6.18
|
5.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.88
|
9.29
|
11.16 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.44
|
7.01
|
6.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.28
|
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.62
|
2.85
|
3.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.11
|
2.27
|
2.34 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
Yes |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
REVIEW OF OPERATIONS
Standalone Financial Performance
For
the year ended on 31st March, 2011, the Company has achieved Turnover of
Rs.11772.090 Millions and Net Profit of Rs.879.210 Millions as against the
Turnover of Rs.10463.700 Millions and Net Profit of Rs.661.750 Millions
respectively during the previous year, representing increase in Turnover of
12.50% and increase in Net
Profit
by 32.86%.
The
Company holds total unexecuted orders worth Rs.13840.000 Millions. Out of which
Rs.10590.000 Millions is for the MHE division and ` 3,250 Millions. is for the
Gear Division as of March 31, 2011. This will help them to continue to have
sustainable growth in coming years. The Company has ability to attend
substantial live enquiries with excellence.
Subsidiary Companies
During
the year, the Company has incorporated a Wholly Owned Subsidiary, (WOS) in
Mauritius, namely, Elecon Transmission International Limited to acquire the
business of Benzlers-Radicon Group, a Sub-Group of David Brown Gear Systems
Group, UK. the said WOS has executed Sale and Purchase Agreement(SPA) to
acquire 100% stake in the business of 1) David Brown Systems Sweden AB
(Sweden), 2) Applied Transmission Products Division of David Brown Geared
Systems Limited (U.K) and 3) Geared Motor Division of Cone Drive Operations
Inc. (U.S) (the “Business”) of the David Brown Gear Systems Group. The WOS has
also paid the acquisition consideration to the Seller on 26.11.2010.
The following eleven subsidiaries were set up / acquired
during the year:
1. Elecon Transmission International Limited, Mauritius.
2. Radicon Transmission UK Limited
3. Elecon USA Transmission Limited
4. David Brown Systems Sweden AB
5. AB Benzlers, Sweden
6. Benzler Technisch Buro Aandrijftechniek B.V. (The
Netherlands)
7. Benzler Transmission A.S. (Denmark)
8. Benzler Andtriebstech nik GmbH (Germany)
9. Oy Benzler AB (Finland)
10. Benzlers Antriebstechnik Gesmbh, Austria
11. Benzlers Malaysia, Malaysia
MANAGEMENT
DISCUSSION AND ANALYSIS
Joint Venture
Ringspann
GmbH, Germany, a joint venture partner in Ringspann Elecon (India) Limited, a
Joint Venture Company (“JVC”) has made divestment of their entire shareholding
by selling their stake to Elecon Group of Companies. In view of the said
divestment, the said JVC has applied for the change of name. The JVC will
continue to use the technology of the outgoing German partner for its captive
consumption.
Industry Structure
and Development
The economic
activities registered significant growth during the year compared to the last
year 2009-10. The overall situation was better than they had apprehended in the
aftermath of the economic slowdown. However, the growth forecasts for this year
are being revised downwards. What has changed in the last few months? Higher
than expected inflation in the economy and the underlying pressures coming in
from commodity and crude oil prices. But food inflation will come down in a few
months and petro prices are already at the top end of the curve. The interest
rate hike may impact it further but will definitely impact growth more. Amidst
the fluctuating factors affecting the global economy and stagnation, the Indian
economy grew at close to 8%.
Though
the inflationary trend, high interest rate and volatile industrial growth were
major causes of concern, the Indian economy has been successfully withstood.
However, demand-supply mismatches and inconsistent monsoons put the economy on
an inflationary trend and the trend continues in the current year.
The
Company ended the year with stable performance and retained its position in the
volatile market. The Company focused on cost control measures and product mix
enrichment to sustain growth and profitability in the challenging year.
The
Indian economy has emerged with remarkable rapidity from the slowdown caused by
the Global financial crisis. The turnaround has been fast and strong. Growth is
strong in 2010-11 with a rebound in agriculture and continued momentum in manufacturing,
though there was a deceleration in services caused mainly by the deceleration
in community, social and personal services, reflecting the base effect of
fiscal stimulus in the previous two years.
OPPORTUNITIES AND
THREATS
Global
economy is trying hard to stabilize the growth momentum. Negative growth rates
by most developed countries are now being converted into positive growth rates.
The radical measures taken by Central Governments and Central Banks around the
world during Global economy meltdown have helped recovery across the globe.
India
will continue to be one of the drivers of global economic recovery. The economy
of India maintained a strong and steady growth momentum throughout the current
global economic crisis unlike many other emerging market economies where growth
decelerated sharply and, in some cases, turned negative.
In
spite of continuous tightening of monetary policy and further escalation in
global oil prices, most of the sectors are seeing increases in orders, credit
off take is much higher than last year (April commercial bank credit rose by
22.1% yoy compared to 17.1% last year).
Exports
grew by 37.5 % [fastest growth since independence]. Imports also showed an
increase of 21.2 %. Strong export growth performance over the last five months
has helped bring the trade deficit down to more manageable levels.
Apprehensions
with regard to widening current account deficit have also been allayed.
Commerce and Industry Ministry is now confident that the export target of US$
450 billion by 2013-14 will be met.
Despite
all these positives, manufacturing growth has been falling for 4 quarters;
rates have been rising rapidly and, with a more aggressive RBI, are expected to
continue to rise in coming quarters. There has also been a continued fall in
investment.
Latest
numbers for WPI based inflation show that headline inflation in March 2011
stands at 8.98%. Annual inflation rate for 2010-11 also highlights the
continuous pressure the economy faces on the prices front. Overall inflation for
2010-11 stands at 9.4 percent and is much above what the RBI considers as the
‘growth promoting inflation rate’ and which is about 5 percent.
The
Core Sector recorded an overall growth of around 5.7 %. Growth has been powered
by sectors like crude oil, steel and power. However, performance of the coal
sector is a reason for worry.
SEGMENT-WISE
PERFORMANCE
During
the financial year 2010 - 2011, the Company has achieved a Turnover of
Rs.11772.090 Millions as against Rs.10463.700 Millions in the previous year,
which shows a growth of 12.50% over the previous year.
The
Turnover of Gear Division has increased to Rs.5246.400 Millions from
Rs.4259.200 Millions in the previous year, which shows an increase of 23.17%.
The
Turnover of MHE Division has increased to Rs.6525.690 Millions as against
Rs.6204.500 Millions in the previous year, which shows an increase of 5.17%.
The
Profit before Tax has increased to Rs.1206.900 Millions from Rs.903.170 Millions
in the previous year resulting into a increase of 33.63 %.
The
Profit after Tax has increased to Rs.879.21 Millions from Rs.661.75 Millions,
resulting into a increase of 32.86%, over the previous year.
OUTLOOK
Investment,
particularly fixed capital investment, is yet to recover to pre-crisis levels,
inflation has been high and, while moderating, will not succumb in the case of
food prices. Agricultural growth continues to be erratic, industry and
infrastructure display volatility and waning momentum, except for some robust
sectors like automobiles. The saving–investment gap is still large, leading to
historically high current account deficits. Core sector growth is weak.
Despite
all this, the economy is expected to grow by 9% in 2011-12, give or take one
quarter of a percentage point. And the case for fiscal consolidation is strong.
The
international environment is fraught. The high levels of public and private
debt in the developed countries make the recovery they have made all the more
tenuous. Luckily, India has diversified its trade linkages away from these
economies and now has extensive commerce with developing countries and this
offers some cushion against a still possible double dip in the advanced
countries.
Against
the backdrop of heightened uncertainty on the global economic front, spiraling
global crude oil prices providing upward pressure to the persistent inflation
and high interest rates, the Indian economy will grow during FY 12, gaining
traction especially, during the second half of the fiscal year due to improvement in private domestic demand
conditions, moderating inflation towards the end of the fiscal year and
anticipation of recovery gathering pace in the global economy during the second
half of the fiscal year. Moreover, robust industrial activity is also expected
to drive economic growth and the IIP is likely to grow by around 9.0% during
FY12. However, the investment activity is expected to improve only marginally
during FY12, weighed down by the high inflation and elevated interest rates.
Given that a relentless rise in inflation does have the potential to impact
growth considerably, the challenge before the RBI would be to manage the policy
rates in such a way that it does not disrupt the growth prospects.
DEVELOPMENT IN
HUMAN RESOURCES/INDUSTRIAL FRONT
It has
been the tradition of the Company to maintain excellent industrial relations at
all levels. This has ensured a very healthy level of enthusiasm within the
employees. This has enabled the Company to maintain its growth despite
competition and economic slackness. The number of employees as on 31st March,
2011 was 1197 as against 1069 as on 31st March, 2010.
FIXED ASSETS
·
Land (Freehold)
·
Buildings
·
Plant and Machinery
·
Electrical Installations
·
Electrical Fittings
·
Office Equipments
·
Air Conditioning Plant
·
Sundry Equipments
·
Furniture and Fixtures
·
Vehicles
·
Site Office Equipment
UNAUDITED
FINANCIAL RESULT FOR THE QUARTER ENDED 31ST MARCH, 2012
(Rs. in millions)
|
Particulars |
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
(Audited) |
(Unaudited) |
(Audited) |
|
|
Quarter Ended |
Year Ended |
||
|
Standalone |
|||
|
Income from operations |
|
|
|
|
a. Net Sales/ Income from Operations (net of excise duty)
|
4390.459 |
2976.260 |
13200.322 |
|
b. Other Operating Income |
29.305 |
23.669 |
116.397 |
|
Total Income |
4419.764 |
2999.929 |
13316.719 |
|
Expenditure |
|
|
|
|
a. cost of material Changes |
2633.977 |
1926.604 |
8731.634 |
|
b. Purchase of traded goods |
-- |
-- |
-- |
|
c. Changes in inventories of finished goods,
work-in-progress and Stock-in-trade |
410.806 |
36.639 |
70.731 |
|
d. Employees benefit Expenses |
207.479 |
189.443 |
730.881 |
|
e. Depreciation and amortization expenses |
110.393 |
106.721 |
423.808 |
|
f. Other Expenditure |
528.368 |
367.710 |
1756.011 |
|
Total Expenses |
3891.023 |
2627.117 |
11713.065 |
|
Profit from operations before other income, Finance Cost
and exceptional Items |
528.741 |
372.812 |
1603.654 |
|
Other income |
14.503 |
11.614 |
74.279 |
|
Profit before Finance Cost and exceptional Items |
543.244 |
384.426 |
1677.933 |
|
Finance Cost |
150.099 |
146.044 |
579.581 |
|
Profit
after Finance Cost but before Exceptional Items |
393.145 |
238.382 |
1098.352 |
|
Exceptional Items |
-- |
-- |
-- |
|
Profit
(+)/Loss(-) from Ordinary Activities before tax |
393.145 |
238.382 |
1098.352 |
|
Tax expense |
154.234 |
86.102 |
402.360 |
|
Net
Profit (+)/Loss(-) from Ordinary Activities after tax |
238.911 |
152.280 |
695.992 |
|
Extraordinary
Items (Net of Tax Expenses) |
-- |
-- |
-- |
|
Net
Profit / (Loss) for the period |
238.911 |
152.280 |
695.992 |
|
Share of Profits of Associates |
-- |
-- |
-- |
|
Minority Interest |
-- |
-- |
-- |
|
Net profit / (loss) after taxes, Minority Interest and
Share of Profits of Associates |
238.911 |
152.280 |
695.992 |
|
Paid up equity share capital (Face value of Rs.2/- per
share) |
185.723 |
185.723 |
185.723 |
|
Reserves excluding revaluation reserves as per balance
sheet of previous accounting year |
4262.011 |
-- |
4262.011 |
|
Earning
per share (EPS) before Extraordinary items (of Rs.2/-) ( not annualized) |
|
|
|
|
(a)
Basic |
2.57 |
1.64 |
7.49 |
|
(b)
Diluted |
2.57 |
1.64 |
7.49 |
|
Earning
per share (EPS) after Extraordinary items (of Rs.2/-) ( not annualized) |
|
|
|
|
(a)
Basic |
2.57 |
1.64 |
7.49 |
|
(b)
Diluted |
2.57 |
1.64 |
7.49 |
|
Public
shareholding |
|
|
|
|
Number of
shares |
50152791 |
50152791 |
50152791 |
|
Percentage
of shareholding |
54.01 |
54.01 |
54.01 |
|
Promoters
and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
8874850 |
8874850 |
8874850 |
|
Percentage of shares (as a % of total shareholding of the promoter
and promoter group) |
20.78 |
20.78 |
20.78 |
|
Percentage of shares (as a % of total share capital of the
company) |
9.56 |
9.56 |
9.56 |
|
b) Non Encumbered |
|
|
|
|
Number of shares |
33833869 |
33833869 |
33833869 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
79.22 |
79.22 |
79.22 |
|
Percentage of shares (as a % of total share capital of the
company) |
36.43 |
36.43 |
36.43 |
|
Particulars |
31.03.2012 |
|
|
3 Months Ended |
|
INVESTORS COMPLAINTS |
|
|
Pending at the beginning
of the quarter |
Nil |
|
Received during the
quarter |
4 |
|
Disposed off during the
quarter |
4 |
|
Remaining unresolved at the
end of the quarter |
Nil |
NOTE:
1. The aforesaid financial results were reviewed by the Audit Committee at its meeting held on May 12, 2012 and approved by the Board of Directors at its Meeting held on the same date.
2. The Board of Directors have recommended a dividend of Rs. 1.80 (@ 90 %) per equity share of Rs. 2.00 each. (Excl. Dividend .Distribution Tax)
3. Other Income for the year and quarter ended March 31,2012 includes Profit on Sale of Investments of Rs. Nil (Corresponding year ended March 31,2011 was Rs. 206.960 Millions and quarter ended March 31, 2011 includes Profit on Sale of Investments of Rs. 1.500 Millions.)
4. Figures for the quarter ended March 31,2012 and March 31,2011 are, in accordance with recent amendment to Listing Agreement(s), the balancing figures between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the respective financial years; figures would need to be interpreted / analysed accordingly,
5. Benziers Italia s.r.l., a wholly owned step down subsidiary of the Company was incorporated in Italy during the year.
6. The consolidated financial results Include the financial results of One Wholly Owned Subsidiary, Eleven Step-down Subsidiaries, Two Joint Venture Companies and the share of profit / (loss) of Eight Associate Companies.
7. Previous quarters'/year's figures have been regrouped / rearranged / recasted wherever necessary to make it comparable with the current quarter's/ year's figures.
SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
(Audited) |
(Unaudited) |
(Audited) |
|
|
Quarter Ended |
Year Ended |
||
|
Standalone |
|||
|
SEGMENT REVENUE |
|
|
|
|
Material
Handling Equipment |
2954.834 |
1644.085 |
7945.494 |
|
Transmission
Equipment |
1541.465 |
1468.303 |
5739.219 |
|
Others |
-- |
-- |
-- |
|
Total |
4496.299 |
3112.388 |
13684.713 |
|
Less:
inter Segment Revenue |
76.535 |
112.459 |
367.994 |
|
Net Sales / Income from Operations |
4419.764 |
2999.929 |
13316.719 |
|
|
|
|
|
|
SEGMENT PROFIT / (LOSS) BEFORE TAX
and INTEREST |
|
|
|
|
Material
Handling Equipment |
391.779 |
204.759 |
1045.432 |
|
Transmission
Equipment |
243.755 |
218.664 |
855.290 |
|
Others |
-- |
-- |
-- |
|
Total |
635.534 |
423.423 |
1900.722 |
|
Less; |
|
|
|
|
a) Finance
Cost |
150.099 |
146.044 |
579.581 |
|
b)
Unallocated Corporate Expenses (net of
unallocable Income) |
92.290 |
38.997 |
222.789 |
|
Total Profit before Tax |
393.145 |
238.382 |
1098.352 |
|
|
|
|
|
|
CAPITAL EMPLOYED |
|
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
|
a) Segment wise Capital
Employed |
|
|
|
|
Material Handling Equipment |
5375.055 |
4863.205 |
5375.055 |
|
Transmission Equipment |
4248.528 |
4635.292 |
4248.528 |
|
Others |
-- |
-- |
-- |
|
b)
Unallocated Capital Employed |
-- |
-- |
-- |
|
Total Capital Employed |
9623.583 |
9498.497 |
9623.583 |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
31.03.2012 |
|
(Audited) |
|
|
Year Ended |
|
|
Standalone |
|
|
EQUITY AND LIABILITIES |
|
|
Shareholders' funds |
|
|
(a) Share
Capital |
185.723 |
|
(b) Reserves and
Surplus |
4262.011 |
|
(c) Money
received against share warrants |
-- |
|
Sub-total
- Shareholders' fund |
4447.734 |
|
Share application money pending
allotment |
|
|
Minority Interest |
|
|
Non-current
liabilities |
|
|
(a) Long -
term borrowings |
1068.747 |
|
(b)
Deferred tax liabilities (net)- |
446.728 |
|
(c) Other
long-term liabilities |
198.405 |
|
(d)
Long-term provisions |
39.745 |
|
Sub- total- Non-current
liabilities |
1753.625 |
|
Current liabilities |
|
|
(a) Short-term
borrowings |
3660.374 |
|
(b) Trade
payables |
4547.505 |
|
(c) Other
current liabilities |
2160.441 |
|
(d) Short-term
provisions |
223.946 |
|
Sub-total
- Current liabilities |
10592.266 |
|
|
|
|
TOTAL -
EQUITY AND LIABILITIES |
16793.625 |
|
|
|
|
ASSETS |
|
|
Non-current assets |
|
|
(a) Fixed
assets |
4469.001 |
|
(b)
Goodwill on consolidation* |
-- |
|
(c) Non -
current investments |
351.100 |
|
(d) Differed tax assets
(net) |
-- |
|
(e) Long -
term loans and advances |
273.906 |
|
(!) Other
non-current assets |
597.934 |
|
Sub-total
- Non-current assets |
5691.941 |
|
Current assets |
|
|
(a) Current investments |
|
|
(b)
Inventories |
2881.508 |
|
(c) Trade
receivables |
7282.981 |
|
(d) Cash
and cash equivalents |
115.955 |
|
(e) Short
- term loans and advances |
781.067 |
|
(e) Other
Current assets |
40.173 |
|
Sub-total
- Current assets |
11101.684 |
|
TOTAL - ASSETS |
16793.625 |
BUSINESS
DESCRIPTION
Subject is an India-based manufacturer of material handling equipments.
The Company is also engaged in manufacturing of industrial gears and power
transmission products in India. The Company operates in two segments: material
handling equipment and transmission equipment. The Company’s product range
includes design, engineering, manufacture, supply, erection and commission of
wagon tipplers, bucket wheel stacker/reclaimers, barrel-type blender
reclaimers, fertilizer reclaiming scrapers, limestone pre-homegenizing and
blending plants, single and twin bucket wheel bridge-type reclaimers,
crawler-mounted rippers, stationary and shiftable conveying systems for open
cast lignite mines, integrated coal handling plants for power stations,
underground mining conveyors, open-cast conveying systems, and ferrous and
non-ferrous foundry products. The gear division manufactures helical and bevel
helical gear boxes, worm gear boxes and elevator tractor machines. For the nine
months ended 30 September 2010, Elecon engineering Company Limited's revenues
increased 17% to RS8.15B. Net income increased 65% to RS643.6M. Revenues
reflect, an increase in income from Material Handling Equipment segment, higher
income from transmission equipment division and the presence of other income.
Net income also reflects a decrease in interest expenses and an increase in
gross & operating profit margins.
Prayasvin B. Patel
(Non-Independent Executive Chairman of the Board, Chief Executive Officer,
Managing Director)
Shri. Prayasvin B. Patel is Non-Independent Executive
Chairman of the Board, Chief Executive Officer, Managing Director of Elecon
Engineering Co Limited He has 35 years of experience in Engineering industry.
He started his career as Sales Director of Prayas Casting Private Limited,
Vallabh Vidyanagar. Thereafter, he joined Elecon Engineering Company Ltd as
Joint Managing Director on 1st July 1983. From 1st July 1993, he has taken over
the responsibility of the Managing Director of the Company. On joining the
organization, Shri Prayasvin Patel took charge of the entire responsibility of
both the Gear and MHE divisions of the business. His keenness to improvise,
hands on approach and his active participation has seen the Gear Division rise
to become Asia’s manufacturer of Industrial Gears. He is also Managing Director
of Eimco (Elecon) India Limited He holds B.E. (Mech.) M.B.A (U.S.A). His other
Directorship includes: Eimco Elecon India Limited. Power Build Limited. Narmada
Travels Limited Kirloskar Power Build Gears Limited Marck Biosciences Limited.
Prayas Engineering Limited Elecon Information Technology Limited Akaaish
Mechatronics Limited. Eimco Elecon Electricals Limited Madhuban Prayas Resorts
Limited DRA (India) Limited. K.B. Investment Private Limited Bipra Investment
and Trusts Private Limited Devkishan investment Private Limited Jamko
Consultants Private Limited.
Chirayu R. Amin (Non-Executive Independent Director)
Shri Chirayu R. Amin is
Non-Executive Independent Director of Elecon Engineering Company Limited He has
been appointed as Director of Alembic Limited on 20-8-1967. He was appointed as
Managing Director in Alembic Limited in 1983. At present, he is Chairman cum-
Managing Director of Alembic Limited. In addition to this, a lot of restructuring
has been done in respect of manpower planning and business strategy of
introducing new products and concentrating on some selected brands for
achieving sustainable competitive edge. He holds M.B.A. (U.S.A.). His other
Directorship includes: Alembic Limited Alembic Exports Limited Alembic
Pharmaceuticals Limited Shreno Limited Nirayu Private Limited Paushak Limited
AGI Developers Limited United Phosphorus Limited Sierra Investments Limited
Sierra Healthcare Limited Quick Flight Limited Panasonic Energy India Company
Limited.
Prashant C. Amin
(Executive Director)
Shri. Prashant C. Amin has been appointed as an Executive
Director of Elecon Engineering Company Ltd w.e.f. June 01, 2011. He was
Non-Independent Non-Executive Director of the Company. He has 30 years of
experience in founding various new ventures in different geographies and
operating small enterprises with leadership and operational direction. His
business acumen and ‘hands on’ approach has been the key to his success with
companies he has founded and nurtured. A true entrepreneur and a visionary,
Shri Prashant Amin has taken the responsibility of driving Elecon to new
heights of growth and social responsibility since joining as Group Director in
Oct 2006. He intends to bring the agility of small enterprise and merge it with
the legacy and culture of ELECON Group to make the group ready for the next
stage of development and growth. On completion of his MBA, he spent 3 years as
a Cost Estimator, at Sargent Industries, where he proved his financial acumen
in manufacturing planning and pricing. He returned to India in 1983, to start
his first venture, a container/packaging Company. He founded Caltronics, a
California, USA based Company specializing in printed circuit board manufacture
and turnkey solutions for the high tech electronics industry. Under his
leadership as the COO, Caltronics grew from a five people Company, to a forty
people employer with annual revenues exceeding $10M. He holds M.B.A. (Finance)
(U.S.A.) and M.B.A. (Engineering and Management). His other directorships
includes: Eimco Elecon (India) Limited Emtici Eng. Limited Power Build Limited
Prayas Engineering Limited Ringspann Elecon (India) Limited Akaaish
Mechatronics Limited Emtici Engineering Limited Elecon Information Technology Limited.
Pradip M. Patel
(Non-Independent Non-Executive Director)
Shri. Pradip M. Patel is Non-Independent Non-Executive Director of Elecon Engineering Company Limited He is associated with the Bearing Industry for over three decades. Joined ABC Bearing Limited on 7th September, 1973 Director in ABC Bearings Limited since 1st August,1976 Managing Director of ABC Bearings Limited since 1st August, 1981. He holds M.B.A. (U.S.A.). His other Directorship includes: ABC Bearing Limited Eimco Elecon India Limited Power Build Limited NSK-ABC Bearing Limited Manoway Investments Private Limited Ziwani Properties Private Limited Mipco Investments Private Limited Maple Investments Company Private Limited Emsons Leasing Company Private Limited Taveta Properties Private Limited.
PRESS RELEASE
ELECON ENGINEERING
WINS PRESTIGIOUS ORDER WORTH RS. 70.000 MILLIONS
Anand, 11th June,
2012
Elecon Engineering Company Limited, one of the India’s largest Material Handling Equipments and Transmission Products manufactures, announced that their MHE Division has procured a prestigious order of Rs. 7 crores from MANIKGARH CEMENT UNIT-II (A division of Century Textile and Inds. Limited) for Design, Engineering, Manufacturing and Supply of various pipe conveyors.
Information of order received:
Name of Client: MANIKGARH CEMENT UNIT-II
Type of Order: Design, Engineering, Manufacturing and Supply of various pipe conveyors
Total Value of Order: Rs.70.000 Millions
Mr. Prayasvin Patel, Chairman and Managing Director, Elecon Engineering said,
“We are pleased to have procured an order worth Rs.70.000 Millions .Elecon
Engineering has always been at the forefront of innovations and technology in
the manufacturing and engineering sector. It is a big achievement for all at
Elecon as we continue to maintain a healthy order book month on month.”
ELECON ENGINEERING
BAGS PRESTIGIOUS ORDER WORTH RS. 2723.300 MILLIONS FROM NTPC
Anand, 14th
May, 2012
Elecon Engineering Company Limited, one of the India’s largest Material Handling Equipments and Transmission Products manufactures, announced that their MHE Division has procured a prestigious order of Rs. 272.33 crores from National Thermal Power Corporation Limited (NTPC) for Ex-works supply of Coal Handling Plant Package and for Erection and Commissioning of Coal Handling Plant Package for Mouda Super Thermal Power Project Stage II (2x660MW).
Information of order
received:
Name of Client: National Thermal Power Corporation Limited (NTPC)
Type of Order: Ex-works supply of Coal Handling Plant Package and for Erection and Commissioning of Coal Handling Plant Package for Mouda Super Thermal Power Project Stage II (2x660MW)
Total Value of Order: Rs. 2723.300 Millions
Mr. Prayasvin Patel, Chairman and Managing Director, Elecon Engineering said, “We are pleased to have procured a prestigious order worth Rs. 2723.300 Millions and look forward to a long—term mutually beneficial association with NTPC. This win is a big achievement for all of us at Elecon as we continue to maintain a healthy order book month on month.”
About Elecon Engineering Company Limited:
Established in 1951, Elecon Engineering Company Limited of Vallabh Vidyanagar, Gujarat, India, pioneered the manufacture of material handling equipment http://www.elecon.com. During these six decades, Elecon has designed and implemented several landmark projects in India as well as abroad. From a modest start of design and manufacture of Elevators and Conveyors from which incidentally, the company derives its corporate identity. viz. "Elecon". It has grown over the years to be known as a pioneer of the concept of mechanized way of Bulk Material Handling Equipment in India. During the span of more than 6 decades, Elecon has encompassed all the major core sectors through its supplies of highly sophisticated equipment bearing ample testimony of the symbolic mark of Elecon's unbeatable technology. Elecon has thus, made its presence felt through consistent and satisfactory performance of its equipment in such core sectors as fertilizer, cement, coal/power generation, chemical, steel plant and port mechanization etc., across the country.
PERFORMANCE OF ELECON
ENGINEERING COMPANY LIMITED
12TH MAY,
2012
NOTE
STANDALONE
FOR THE FY 12
(Rs. In Millions)
|
Particulars (TURNOVER) |
FY12 |
FY11 |
Growth (%) |
|
Material
Handling Equipments |
7580.000 |
6520.000 |
16 |
|
Gear |
5740.000 |
5220.000 |
10 |
|
Total |
13320.000 |
11740.000 |
13 |
|
Particulars |
FY12 |
FY11 |
Growth (%) |
||
|
Turnover |
13320.000 |
11740.000 |
13 |
||
|
PBT |
1098.000 |
1204.000* |
997.000** |
(9)* |
10** |
|
PAT |
696.000 |
879.000* |
672.000** |
(21)* |
4** |
*FY11 – PBT and PAT including gain on sale of investments Rs. 2070.000 Millions
**FY11 – PBT and PAT excluding gain on sale of investments Rs.2070.000 Millions
ORDER BOOKED DURING
THE YEAR
(Rs. In Millions)
|
Division |
Up to 11th May 2012 For FY 12-13 |
For FY 11-12 |
For FY 10-11 |
|
Material
Handling Equipments |
3360.000 |
6800.000 |
10850.000 |
|
Gear |
450.000 |
530.000 |
6140.000 |
|
Total |
3810.000 |
1210.000 |
16990.000 |
UNEXECUTED ORDERS AS
ON
(Rs. In Millions)
|
Division |
As on 11th May 2012 |
As on 31st March 2012 |
As on 31st March 2011 |
|
Material
Handling Equipments |
12160.000 |
9130.000 |
10590.000 |
|
Gear |
3060.000 |
2990.000 |
3250.000 |
|
Total |
15220.000 |
12120.000 |
13840.000 |
QUARTERWISE
ORDERBOOKING
(Rs. In Millions)
|
Division |
Mar-09 |
Jun-09 |
Sep-09 |
Dec-09 |
Mar-10 |
Jun-10 |
Sep-10 |
Dec-10 |
Mar-11 |
Jun-11 |
Sep-11 |
Dec-11 |
Mar-12 |
|
MHE |
450.000 |
660.000 |
750.000 |
810.000 |
890.000 |
4140.000 |
960.000 |
2870.000 |
2880.000 |
3290.000 |
1160.000 |
1260.000 |
1090.000 |
|
Gear |
840.000 |
810.000 |
1170.000 |
1120.000 |
1270.000 |
1850.000 |
1360.000 |
1360.000 |
1570.000 |
1500.000 |
1240.000 |
1060.0000 |
1500.000 |
|
Total |
1290.000 |
1470.000 |
1920.000 |
1930.000 |
2160.000 |
5990.000 |
2320.000 |
4230.000 |
4450.000 |
4790.000 |
2400.000 |
2320.000 |
2590.0000 |
QUARTERWISE
UNEXECUTED ORDERS
(Rs. In Millions)
|
Division |
Mar-09 |
Jun-09 |
Sep-09 |
Dec-09 |
Mar-10 |
Jun-10 |
Sep-10 |
Dec-10 |
Mar-11 |
Jun-11 |
Sep-11 |
Dec-11 |
Mar-12 |
|
MHE |
1388.000 |
12690.000 |
11770.000 |
11050.000 |
6740.000 |
9300.000 |
8430.000 |
9620.000 |
10590.000 |
12280.000 |
11700.000 |
11180.000 |
9130.000 |
|
Gear |
2390.000 |
2230.000 |
2470.000 |
2570.000 |
2460.000 |
3290.0000 |
3350.000 |
3250.000 |
3250.000 |
3760.000 |
3450.000 |
3060.000 |
2990.000 |
|
Total |
16270.000 |
14920.000 |
14240.000 |
13620.000 |
9200.000 |
12590.000 |
11780.000 |
12870.000 |
13840.000 |
16040.000 |
15150.000 |
14240.000 |
12120.000 |
CONSOLIDATED
FINANCIALS ARE AS UNDER:-
Consolidated
(Rs. In Millions)
|
Particulars
(TURNOVER) |
FY12 |
FY11# |
|
Material Handling Equipments |
7540.000 |
6500.000 |
|
Gear |
8290.000 |
6020.000 |
|
Others |
300.000 |
320.000 |
|
Total |
16130.000 |
12840.000 |
(Rs. In Millions)
|
Particulars |
FY12 |
FY11# |
|
|
Turnover |
16130.000 |
12840.000 |
|
|
PBT |
1032.000 |
1227.000* |
1020.000** |
|
PAT |
611.000 |
900.000* |
693.000** |
# FY 11 Consolidated data includes 4 months financial of BR Group and 12months financials of other companies.
*FY11 – PBT and PAT including gain on sale of investments Rs. 207.000 Millions of Elecon.
**FY11 – PBT and PAT excluding gain on sale of investments Rs.207.000 Millions of Elecon.
The Company is having live enquiries of more than Rs.60000.000 Millions as on 30th April, 2012.
In the year under review Rs. 870.000 Millions have been capitalized as Fixed Assets. Out of which Rs. 560.000 Millions is pertaining to MHE and Rs. 310.000 Millions is pertaining to Gear.
The Board of Directors at its meeting held on 12th May, 2012 recommended dividend of Rs.1.80 per Equity Share of Rs.2 each.
Major Orders in the FY 11 – 12
|
Customers |
Description |
Value (Rs.
in Millions) |
|
NMDC Limited Apr' 11 |
Downhill conveying system Engineering,
Design Manufacturing Procurement, Testing at works/site, Installation,
erection, testing, commissioning as per technical specification, For the
Kumaraswamy Iron Ore Project, Karnataka State. |
1764.900 |
|
BHEL,
Bangalore Nov '11 |
Supply of
CHP Machines , Ballary TPS UNIT-3 of 700 Mw |
393.900 |
|
Mundra Port and SEZ Limited April' 11 |
For Design and Engineering, and
supply of Materials Handling
System for Mundra Port
and Special Economy Zone Limited, Mundra |
298.200 |
|
BHEL,
Barauni Sept.'11 |
Design, Engineering, manufacture,
supply and Erection and Commissioning of Wagon Tippler, Side arm charger with
guide rails, Apron feeder with Dribble Conveyor, Crushers with GERB V I S,
Vibrating Screen and Stacker Cum Reclaimer |
297.200 |
|
BHEL-ISG
Banglore NMDC Steel Plant at Nagamar Sept'11 |
Supply
Erection and Commissioning of 4 sets wagon tippler with side arm charger and
commissioning spares for RHMS pkg. 1 project of
M/s. NMDC steel plant at Nagamar, C.G. |
281.600 |
|
Lanco Infratech Limited Jun '11 |
For Design, engineering
Manufacture, inspection and Testing at works, Transportation, supervision of
erection, testing, commissioning and performance of complete Wagon Tippler
packages along with side arm charges, Apron Feeder, dribble conveyor etc.
alongwith all Auxiliaries and Accessories for LVPL : 2*660 MW thermal Power
Plant at Mandav, District - Wardha Maharashtra. |
254.600 |
|
Ultra Tech
Cement Limited Sep' 11 |
Supply of 5
Nos Coal and Additives Stacker and Reclaimer for unit: Rajashree Cement works
- IV, Aditya Nagar, supply of 3 Nos Coal Stacker and
Reclaimer for Unit: Rawan Cement Works - II, Raipur, Chhattisgarh. |
234.900 |
|
BSBK
Engineers Private Limited Feb' 12 |
Supply of
Equipments for Augmentation of CHP 1*500 MW Kothagudam TPS,Stage -IV,Unit-11
of APGENCO |
180.000 |
|
Mcnally
Bharat Engg Co limited,-Kolkata Nov' 11 |
Supply Of
2 No.S Barrel Type Blender Reclaimers For BHEL NMDC Iron and Steel
Plant,Nagmar Project A/C MBE |
170.000 |
|
Reflecting
Blue Technologies Oct. '11 |
Six Turbo
winds T600-48DS. |
165.000 |
|
Shri Bajrang Power and Ispat Oct. '11 |
Supply of design engineering
manufacture and supply of stacker cum Reclaimer machines total 2 quantity price
per set 7,75,00,000 |
155.000 |
|
The Indure Private Limited Feb' 12 |
Transportation
and Erection and Commissioning of Reversible Stacker Cum Reclaimer for 2*525
MW Monnet Thermal Power Project, Angul, Orissa. |
129.500 |
|
Tec
Pro-Chennai Nov' 11 |
Supply of
1 No .Reversible Stacker -cum-Reclaimer With bucket wheel, Hydraulic and VVVf
Drives |
104.800 |
|
ADANI
Hazira Port Private Limited (AHPPL) Apr' 11 |
Design,
Engineering and Supply of Material Handling System (Supply of Pulleys, Idlers
and Internal) scrapper. |
98.000 |
|
UltraTech, Gujarat Sept.'11 |
Supply of Jetty Conveyor Material |
89.000 |
Recent Major Orders in the FY 12 - 13
|
Customers |
Description |
Value (Rs. in Millions) |
|
NTPC - Mauda
Super Thermal Power Project - May'12 |
Installation
services for main equipments, Structural Work, Civil works and Ex -
Manufacturing work of dispatch price for mandatory spares. |
2723.300 |
|
Cethar Limited-Tamilnadu Apr'12 |
Design,
Manufacturing, Supply and E and C of 2 nos. wagon tippler and accessories for
SKS power generation Limited, Raigarh - (4*300 MW ) |
194.500 |
|
Cethar Limited-Tamilnadu Apr'12 |
Design,
Manufacturing, Supply and E and C of 1 nos. stacker cum reclaimer for SKS power
generation Limited, Raigarh - (4*300 MW ) |
113.000 |
|
Shree Cement Limited Rajasthan -
Apr'12 |
Stacker and Reclaimer |
108.000 |
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.54.55 |
|
|
1 |
Rs.85.48 |
|
Euro |
1 |
Rs.68.70 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
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 |
|
66 |
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.