MIRA
INFORM REPORT
|
Report Date : |
19.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
KEI INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
D-90, Okhla Industrial Area, Phase I, New Delhi-110020. |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
31.12.1992 |
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Com. Reg. No.: |
051527 |
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Capital Investment
/ Paid-up Capital : |
Rs. 133.875 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1992PLC051527 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELK05368G DELK05577F |
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PAN No.: [Permanent Account No.] |
AAACK0251C |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing of Cables, Non-Ferrous Metals and Jelly
Filled Telecom Cables. |
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|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be slow but correct. 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
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
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 |
|
Off-credit |
D |
LOCATIONS
|
Registered and Corporate Office
: |
D-90, Okhla Industrial Area, Phase I, New Delhi-110020, |
|
Tel. No.: |
91-11-26818840/8642/0242 |
|
Fax No.: |
91-11-26817225/26811959 |
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E-Mail : |
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Website : |
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Factory 1 : |
SP-919/920/922 RIICO Industrial Area, Phase - III, Bhiwadi,
District Alwar - 301019, |
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Tel. No.: |
91-1493-220106/221731 |
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Fax No.: |
91-1493-221731 |
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E-Mail : |
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Factory 2 : |
99/2/7, Madhuban Industrial Estate, Village Rakholi,
Silvassa - 396230, Dadra and Nagar Haveli, |
|
Tel. No.: |
91-0260-2644404/2630944 |
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Fax No.: |
91-0260-2645896 |
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E-Mail : |
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Factory 3 : |
Plot No.A-280/281/282/283/284 RIICO Industrial Area
(Chopanki), District Alwar -301019, |
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Tel. No.: |
90-1493-260202/06 |
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Fax No.: |
91-1493-260203 |
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E-Mail : |
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Overseas Office : |
Post Box No. 261739, Jebel Ali Free Zone, Tel: +97148812310/ +971502112013 Fax: +97148812311 e-mail: dubai@kei-ind.com |
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Branch Offices : |
Mumbai (Marketing Office) 101/102, Vastu Shilp, Vastu Enclave, Andheri Pump House,
Andheri (East), Mumbai-400093, Tel: 91-22-28239673, 28375642. Fax: 91-22-28258277 e-mail: mumbai@kei-ind.com
Jaipur Tel: 91-0141-5179279, 91-9829036095 Fax No.: 91-141-2221707 Email : jaipur@kei-ind.com
Pune Tel: 91-9822048426/ 91-20-30526258/ 30524765 Email : pune@kei-ind.com
Tel: 91-0265-6539719 / 2341831 Fax: 91-265-2334161 e-mail: baroda@kei-ind.com
Tel: 91-80-23466260 e-mail: bangalore@kei-ind.com
Chennai Tel: 91-44-42009120. Fax: 91-44-42009130 e-mail: chennai@kei-ind.com
Tel: 91-40-20064358 Fax: 91-40-24024260 e-mail: hyderabad@kei-ind.com
Kolkata 33, Tel: (033)-22866696,
09831806270 Fax: 22866697 E-mail: kolkata@kei-ind.com SCO 84, 1st Floor,
SwastikVihar, Sector-5, Panchkula-134109 Tel: (0172)-4416301 Fax: 4416300 E-mail: chandigarh@kei-ind.com S-13, Thada Ram Complex,
M.P.NagarZone-l, Tel: 09752531145 E-mail: bhopal@kei-ind.com Bhubaneshwar C/21, Palashpalli,
NearN.C.C. Office, Bhubaneswar-751012 Tel: 09238396638 E-mail: bhubneshwar@kei-ind.com Chhatisgarh Soubhagya, 72/10, Nehru
Nagar(West), Bhilai-490020, Chhattisgarh Tel: 09630019494, E-mail: chhatisgarh@kei-ind.com 8/6, F.M. Colony, Civil Lines, Kanpur-208001 Tel: 09839081711 Email: kanpur@kei-ind.com F-1, Shetye Apartments,
Antilpeth, Bicholim, Goa-403504 Tel: 09765394685 E-mail: goa@kei-ind.com 103, Misal Layout, Nagpur-440014 Tel: 09822473774 E-mail: nagpur@kei-ind.com 36/2853, Nagawallil, Tel: 09846004702 E-mail: cochin@kei-ind.com 136, Tel: 09843399964 E-mail: coimbatore@kei-ind.com 102 First Floor, Saran
Chamber-2, Tel: +91 8765588797 Email: up@kei-ind.com |
DIRECTORS
As on 15.09.2011
|
Name : |
Mr. Anil Gupta |
|
Designation : |
Chairman cum Managing Director |
|
Qualification : |
B.Com |
|
Date of Appointment : |
31.12.1992 |
|
|
|
|
Name : |
Mr. Sunil Gupta |
|
Designation : |
Director |
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|
Name : |
Mrs. Archana Gupta |
|
Designation : |
Director |
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|
Name : |
Mr. Pawan Bholusaria |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K G Somani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay Bhartia |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Vijay Bhushan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajeev Gupta |
|
Designation : |
Executive Director (Finance) |
|
Qualification : |
Chartered Accountant |
|
Date of Appointment : |
14.12.1993 |
KEY EXECUTIVES
|
Name : |
Mr. Kishore Kunal |
|
Designation : |
Company Secretary |
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KEY MANAGERIAL PERSONAL |
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|
Name : |
Mr. Manoj Kakkar |
|
Designation : |
Sr. Vice President (Marketing) |
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|
Name : |
Mr. P.K. Aggarwal |
|
Designation : |
Vice President |
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|
Name : |
Mr. K.C. Sharma |
|
Designation : |
Vice President (Operation) |
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|
|
|
Name : |
Mr. Arvind Shrowty |
|
Designation : |
Corporate Advisor |
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|
|
|
Name : |
Mr. A.K.Maity |
|
Designation : |
Sr. GM (Works) |
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|
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|
Name : |
Mr. N.K. Bajaj |
|
Designation : |
Sr. GM-Marketing (Wires & Flexibles) |
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|
Name : |
Mr. Chirag Garg |
|
Designation : |
Sr. G.M (EPC) |
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|
|
|
Name : |
Mr. Mukesh Sethi |
|
Designation : |
GM-Marketing (EHV) |
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|
|
|
Name : |
Mr. Munishvar Gaur |
|
Designation : |
GM (Head-North Marketing Cables) |
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|
|
Name : |
Mr. Alok Saha |
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Designation : |
GM (Marketing) |
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|
Name : |
Mr. M.V. Gananath |
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Designation : |
GM-Sales & Marketing |
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Name : |
Mr. Keshav K. Mitra, |
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Designation : |
GM-Sales & Marketing |
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|
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|
Name : |
Mr. Deepak Manchanda |
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Designation : |
GM (Business Development) |
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|
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|
Name : |
Mr. Ajit Dinesh Durve, |
|
Designation : |
GM (International Business) |
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|
Name : |
Mr. Naval Singh Yadav |
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Designation : |
GM (Technical) |
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|
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|
Name : |
Mr. Dilip Barnwal |
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Designation : |
GM (Works- Silvassa) |
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|
Name : |
Mr. Dayanand Sharma |
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Designation : |
GM ( Works - Chopanki) |
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|
Name : |
Mr. Ajay Mehra |
|
Designation : |
GM (Works-Bhiwadi) |
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|
Name : |
Mr. Gaurav Sahi |
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Designation : |
Head -Corporate Communication |
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|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
Category of Shareholders
|
No. of shares
|
Percentage (%)
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19,668,466 |
29.38 |
|
|
8,180,000 |
12.22 |
|
|
27,848,466 |
41.60 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
27,848,466 |
41.60 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
200,244 |
0.30 |
|
|
200,244 |
0.30 |
|
|
|
|
|
|
17,097,891 |
25.54 |
|
|
|
|
|
|
18,256,635 |
27.27 |
|
|
2,461,228 |
3.68 |
|
|
1,072,974 |
1.60 |
|
|
585,059 |
0.87 |
|
|
487,315 |
0.73 |
|
|
600 |
- |
|
|
38,888,728 |
58.10 |
|
Total Public shareholding (B) |
39,088,972 |
58.40 |
|
Total (A)+(B) |
66,937,438 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
66,937,438 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Cables, Non-Ferrous Metals and Jelly
Filled Telecom Cables. |
||||||||||
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|
||||||||||
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Products : |
·
Electrical Cables ·
House wires ·
Stainless Steel Wires ·
Control Cables ·
Rubber Cables ·
Winding Wires ·
EPC Business |
||||||||||
|
Brand Names: |
· Conflame · Banfire ·
Empower |
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity* |
Actual
Production |
|
Cables |
Kms. |
N.A. |
65600.000 |
45787.590 |
|
Stainless Steel Wires |
Kgs. |
N.A. |
4800000 |
3916194.910 |
|
Winding, Flexible and House Wires |
Kms. |
N.A. |
270000.000 |
103377.074 |
·
Installed capacity has
been certified by Chairman cum Managing Director and relied upon by Auditors.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Dena Bank · Punjab National Bank · ING Vysya Bank ·
State Bank of · Yes Bank Limited · Standard Chartered Bank · ICICI Bank · HSBC Bank · HDFC Bank · RBS (earlier ABN Amro Bank) ·
State Bank of · IndusInd Bank Limited |
||||||||||||||||||||||||||||||||||||
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||||||||||||||||||||||||||||||||||||
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Jagdish Chand and Company Chartered Accountant |
|
Address : |
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Associates/Subsidiaries : |
KEI International Limited |
|
|
|
|
Other Related
Parties: |
·
Projection Financial and Management Consultants
Private Limited ·
Subh Laxmi Motels and Inns Private Limited ·
Soubhagya Agency Private Limited ·
Dhan Versha Agency Private Limited ·
KEI Cables Private Limited ·
KEI Power Limited |
CAPITAL STRUCTURE
As on31.03.2011
Authorized Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
110000000 |
Equity Shares |
Rs.2/- each |
Rs.220.000 millions |
|
300000 |
Preference Shares |
Rs.100/-each |
Rs.30.000 millions |
|
|
|
|
|
|
|
Total |
|
Rs.250.000
millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
66937438 |
Equity Shares |
Rs.2/- each |
Rs.133.875
millions |
|
|
|
|
|
Note: 8716215 Equity Shares of Rs.2/- each were
Allotted to as Fully Paid Shares as Per Scheme of Amalgamation without Payment
Being Received in Cash.
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 |
133.875 |
127.875 |
121.875 |
|
|
2] Equity Share warrants |
0.000 |
49.000 |
0.000 |
|
|
3] Reserves & Surplus |
2245.313 |
2049.290 |
1843.877 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2379.188 |
2226.165 |
1965.752 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2830.940 |
2576.282 |
2307.022 |
|
|
2] Unsecured Loans |
787.711 |
794.634 |
1372.165 |
|
|
TOTAL BORROWING |
3618.651 |
3398.370 |
3679.187 |
|
|
DEFERRED TAX LIABILITIES |
280.012 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6277.851 |
5624.530 |
5644.939 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3016.795 |
2654.400 |
2727.346 |
|
|
Capital work-in-progress |
103.183 |
124.220 |
66.752 |
|
|
|
|
|
|
|
|
INVESTMENT |
30.817 |
1.040 |
1.039 |
|
|
DEFERREX TAX ASSETS |
243.330 |
0.000 |
1.209 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2822.649
|
2026.820
|
1574.689 |
|
|
Sundry Debtors |
2635.617
|
2600.690
|
2506.561 |
|
|
Cash & Bank Balances |
123.325
|
50.770
|
230.211 |
|
|
Other Current Assets |
28.655
|
136.060
|
19.913 |
|
|
Loans & Advances |
526.119
|
396.710
|
467.245 |
|
Total
Current Assets |
6136.365
|
5211.050 |
4798.619 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2969.074
|
2199.262
|
1805.939 |
|
|
Other Current Liabilities |
246.455
|
140.196
|
116.505 |
|
|
Provisions |
37.110
|
26.722 |
27.582 |
|
Total
Current Liabilities |
3252.639
|
2366.180
|
1950.026 |
|
|
Net Current Assets |
2883.726
|
2844.870
|
2848.593 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6277.851 |
5624.530 |
5644.939 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11592.858 |
9092.453 |
9696.790 |
|
|
|
Other Income |
88.658 |
153.705 |
320.443 |
|
|
|
TOTAL (A) |
11681.516 |
9246.158 |
10017.233 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/(Decrease)in Stock |
(695.550) |
(255.749) |
620.261 |
|
|
|
Materials |
9789.802 |
7360.980 |
7503.619 |
|
|
|
Manufacturing, Selling and Other Expenses |
1364.756 |
1178.103 |
1190.074 |
|
|
|
Increase/(Decrease) Excise Duty on Stock |
18.944 |
10.958 |
(91.097) |
|
|
|
Payments to and Provision for Employees |
275.386 |
188.538 |
173.551 |
|
|
|
TOTAL (B) |
10753.338 |
8482.83 |
9396.409 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
928.178 |
763.328 |
620.824 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
583.210 |
443.960 |
566.145 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
344.968 |
319.368 |
54.679 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
166.100 |
146.763 |
115.749 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
178.868 |
172.605 |
(61.070) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
73.072 |
29.800 |
(84.454) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
105.796 |
142.805 |
23.384 |
|
|
|
|
|
|
|
|
|
Less/ Add |
Taxation for
earlier years |
|
|
|
|
|
|
Current Tax |
0.214 |
0.176 |
10.459 |
|
|
|
Fringe Benefit Tax |
0.000 |
0.303 |
0.458 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1160.611 |
1033.197 |
1034.988 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
13.387 |
12.787 |
12.187 |
|
|
|
Provision for Taxation on Proposed
Dividend |
2.172 |
2.123 |
2.071 |
|
|
BALANCE CARRIED
TO THE B/S |
1250.634 |
1160.613 |
1033.197 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sales (Exports) |
1034.471 |
936.260 |
1620.881 |
|
|
|
Interest earned on FDR |
0.000 |
0.000 |
0.017 |
|
|
TOTAL EARNINGS |
1034.471 |
936.260 |
1620.898 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
395.544 |
188.191 |
255.605 |
|
|
|
Stores, Spares and Consumables |
1.491 |
25.881 |
0.098 |
|
|
|
Capital Goods |
80.218 |
1.777 |
282.693 |
|
|
|
Packing Material |
0.000 |
3.013 |
6.431 |
|
|
TOTAL IMPORTS |
477.253 |
218.862 |
544.827 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
1.64 |
0.20 |
7.33 |
|
|
|
Diluted |
1.30 |
0.17 |
5.40 |
|
QUARTERLY / SUMMARISED
RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
3344.100 |
3942.720 |
4571.440 |
5367.660 |
|
Total Expenditure |
3062.260 |
3604.990 |
4171.890 |
4885.740 |
|
PBIDT (Excl OI) |
281.840 |
337.730 |
399.550 |
481.920 |
|
Other Income |
1.280 |
0.680 |
0.020 |
7.850 |
|
Operating Profit |
283.130 |
338.410 |
399.570 |
489.770 |
|
Interest |
191.580 |
209.630 |
273.030 |
281.240 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
91.550 |
128.780 |
126.540 |
208.530 |
|
Depreciation |
46.120 |
48.350 |
49.740 |
51.240 |
|
Profit Before Tax |
45.430 |
80.430 |
76.800 |
157.290 |
|
Tax |
19.090 |
25.960 |
20.540 |
51.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
26.340 |
54.470 |
56.270 |
106.190 |
|
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 |
26.340 |
54.470 |
56.270 |
106.190 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.20
|
1.54 |
0.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.54
|
1.89 |
(6.29) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.95
|
2.19 |
(0.81) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.07 |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.88
|
2.58 |
2.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.88
|
2.20 |
2.46 |
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 |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
No |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
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 |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
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
Expansion at Chopanki
Plant:
During the second half of financial
year 2010-11, Company had completed expansion at its Chopanki Plant for
manufacturing of Extra High Voltage (EHV) Cables ranging from 66kV to 220kV.
The Company had inaugurated its Extra-High Voltage (EHV) Cable manufacturing
facility at its Plant at Chopanki, District. Alwar Rajasthan on November 02,
2010.
This facility is under a
Technical Collaboration Agreement with M/s. Brugg Kabel AG, Switzerland - a
pioneer in manufacturing high voltage / extra high voltage cables - along with
jointing and cable accessories up to 500kV voltage grade. The Technical
Collaboration agreement will allow the Company complete know-how transfer which
shall include design, testing, techniques, training of its manufacturing /
design personnel in manufacturing of cables along with jointing techniques as
also complete EHV system design of EHV Cables. With this technology back-up,
the collaboration will also help the Company making its presence in extra high
voltage segment by securing contracts from various public utilities
(Central/State) as also private segment.
Engineering, Procurement
and Construction (EPC):
The Company has marked its
presence into Engineering, Procurement and Construction (EPC) space by bagging various
prestigious orders for survey, supply of materials, erection, testing &
commissioning of 33kV & 11kV substation and distribution lines in power
distribution segment.
Under this segment, Company
will be tapping both Government and Private Sector clients on turn-key basis
however there will be more focus in Government Power Utility.
FUTURE OUTLOOK
With Company's successful
venture into Extra High Voltage (EHV) Cables and presence in Engineering,
Procurement and Construction (EPC) space, Company has an edge in the Cable
Industry. The Company has specific tie-ups in this segment i.e. Foreign
Technical Collaboration with Brugg Kabel AG, Switzerland which will help the
Company to capitalize its proven presence in the Cable and EPC business.
COMPANY OVERVIEW
KEI Industries Limited
("the Company" / "KEI") is engaged in the business of
manufacturing and marketing power cables - Low Tension (LT), High Tension (HT)
and Extra High Voltage (EHV), control and instrumentation cables, specialty cables,
rubber cables, submersible cables, flexible and house wires, winding wires and
stainless steel wires that address the cabling requirements of a wide spectrum
of sectors such as power, oil refineries, railways, automobiles, cement, steel,
fertilizers, textile and real estate, amongst others. The Company has also
ventured into Engineering, Procurement and Construction (EPC) space by bagging
various prestigious orders / contract for survey, supply of materials, design,
erection, testing & commissioning on turn-key basis.
Featuring amongst the top
three cable manufacturing companies in India, the Company's diverse, cost
effective, reliable and quality product offerings coupled with vast sectoral
coverage, flexible manufacturing facilities, higher capacities and presence
across cabling solutions up to 220 kV, positions the Company favorably to
harness the immense opportunities and growth prospects emanating from the power
utilities, core infrastructure, industrial and real estate projects across the
country. The Company's prudent foray into the EPC services for power sector
projects space further expands its opportunity matrix and revenue enhancing
channels. The Company has also enhanced its presence in the retail market by
appointing various channel partners and dealers / distributors. Company has
diversified business model characterized by its presence in both the domestic
and international market, servicing both the retail and institutional segment,
catering to both private and public sector clients and offering one-stop
products basket. Further, Company's collaboration with M/s. Brugg Kabel AG,
Switzerland for manufacturing of EHV Cables ranging from 66kV to 220kV has
proved to be a milestone in KEI's history. During the year sales of EHV Cables
was 140.000 millions and expects a significant growth in the turnover of EHV
Cables in the ensuing years. There is significant demand coming for EHV Cables
in all major cities for replacement of overhead lines with underground EHV
Cables. Even though the cost of replacement of overhead lines with under ground
EHV Cable is higher, State utilities / State Government are going for
replacement of the same due to better commercial use of the unused land and
difficulty for right of the way. Further, there are enormous opportunities in EHV
Cable due to being early entrant into this segment as the Company is only third
player to enter into this segment. During the second half of the financial year
2010-11, there has been improvement in the demand scenario of the Industry
which has resulted in the significant growth of turnover compared to previous
year. In the export market, although the global market has not fully recovered
from the aftermath of the financial crisis, the Company has exported Cables to
various countries.
ECONOMIC OVERVIEW, INDUSTRY
STRUCTURE, OPPORTUNITIES AND THREATS
Indian economy is expected
to grow at 8% this year and importantly our economy shall by the end of this
year be a 2 trillion USD economy. In fact, today India is an engine of growth
for the global economy alongside China and the other major emerging markets.
With the opening up of the
Infrastructure sector, investments of one trillion USD are planned over the
next five years. It is anticipated that the foreign direct investments into
India will finance around 250 billion USD, the balance 750 billion USD will be
mobilized locally. Presently China is the only substantial market which is
growing more rapidly than India. However, leading firms such as Morgan Stanley,
PWC and Goldman Sachs forecast that India's growth rate will overtake that of
China's growth rate between the years 2015 to 2017 and thus emerge as the
fastest growing economy in the world. India's strength lies in its young
population, 50% of who are in the age group of 25 years and below. These are the
people who will ensure that what China has done yesterday, India shall do
tomorrow.
The above macro indices of
growth hold true for the cable industry in India as well. The power sector in
India is growing as there is acute shortage of power in the country. The
planned addition to generating capacity of 78,700 MW in the Indian government's
11th five year plan covering the period 2007-2012 is not expected to be met but
it is encouraging that the capacity addition in the last financial year ending
March 31, 2011 has exceeded 15000 MW, the highest ever increase in capacity in
any one year till date. This augurs well for achievement of the target of
100,000 MW capacity addition set for the 12th five year plan covering the
period 2012 - 2017. This is all the more bolstered by the fact that 60% of the
capacity additions in this plan are expected from private companies, whose
entry into the power sector is already giving renewed impetus to growth. This
expected growth of 20 GW per annum is second only to China which plans an
addition of 30 GW annually for the next few years.
Even greater investments
have been allocated to the transmission and distribution areas. Double digit
growth is expected in the installation of 400 kV lines and HVDC lines above 500
kV with the highest growth being charted for transmission lines of 765 KV and
above. The distribution targets include electrification of 100,000 villages
which do not presently have any electricity. The outlay in the distribution
segment is expected to increase from USD 30 billion over the past 5 years, to
approx USD 90 billion in the next 5 years. This shall greatly enhance demand
for MV and LV cables from utilities.
The energy cable market in
India was estimated at USD 3 billion in 2010 increasing at a compounded annual
growth rate of over 10%. This can be broadly divided into following segments:-
·
High
voltage HV (> 132 KV): USD 300 million
·
Medium
voltage MV (11 to 66 KV): USD 900 million
·
Low
voltage LV: USD 1.8 billion
The fastest growing segment
is that of high voltage cables which is projected to be double in the next
three years. Presently, most of the demand for 132 KV, 220 KV and 400 KV XLPE
cables are met through import. In addition to the projected growth in power
generation and transmission, the rapid pace of urbanization is also expected to
contribute to enhanced demand for underground high voltage cable installations
in place of overhead lines.
In the medium and low
voltage power cable field, the growth is fuelled by the boom in the power,
industrial, realty and construction sectors.
Further, specialty cables
have started to become a significant market with the growth in sophisticated
applications in many vital sectors of the Indian economy. The government of
India's thrust on non-conventional power generation such as wind, solar and
nuclear power has led to a big push in demand of special cables required for
these applications. The current installed capacity of 4560 MW for nuclear power
is planned to grow by 3400 MW by 2017 and by a further 8000 MW till 2022. In
the nuclear power area, the country is poised for the construction of a large
number of power plants in a phased manner. Similarly there is a major thrust on
capacity expansion in wind energy envisaging addition of 22500 MW in the 10
years to 2022. For wind power, the number of major players such as Suzlon,
Enercon and Vestas is being augmented by entry of other big players such as
Siemens and Gamesa. The other areas contributing to the increased demand for
special cables are the growth of mechanized mining and material handling,
railways, oil & gas and shipbuilding industries. These areas require the
use of flexible cables often designed for use in hazardous conditions. KEI is
one of the manufacturers for specialty cables.
In this growth scenario,
multinational cable companies are increasingly entering the Indian market. In
the High Voltage field some companies have set up joint ventures or technical
collaborations. The cable industry continues to be fragmented with about 125
players in the organized sector and many more in the unorganized sector. There
is need for consolidation to achieve economies of scale and bring in technology
and quality improvements which have sometimes been sacrificed under the current
intense competitive pressure and consequent low margins which are plaguing in
the industry. This situation is not conducive to the long term health of Cable
industry. Further, a large segment of low voltage cables is composed of
building wires whose market is conservatively estimated at USD 800 million.
Here the industry is composed of a few large units with thousands of small
units in the unorganized sector. In this area, there is a pressing need for
upgraded wiring systems and modern manufacturing technology to cater to safety and
reliability in this fast expanding market. An encouraging sign is the emergence
of more discerning customers with each passing year.
SEGMENT
WISE PERFORMANCE
Gross Sales of the Company for the financial year 2010-11 stood at 12538.591 millions as compared to ` 9725.237 millions in the previous financial year. Gross Sales of the Company has grown by almost 29% in comparison to previous year. The segment wise revenue comparison is given below:
(Rs.
in lakhs)
|
Segment |
Gross
Sales 2012-11 |
Gross Sales 2009-10 |
Growth |
|
Cables (including EHV Cable) |
98995.96 |
77341.11 |
28.00% |
|
Stainless Steel Wire |
8713.38 |
5696.88 |
52.95% |
|
Winding, Flexible and House wires |
15733.52 |
12365.64 |
27.24% |
|
Others |
1943.05 |
1848.74 |
5.10% |
|
|
|
|
|
|
Total |
125385.91 |
97252.37 |
28.93% |
Cable sale during financial year was ` 140.000 millions. The
Company expects to achieve significant increase in sales in the EHV segment in
the coming years.
RETAIL
– DOMESTIC HOUSE WIRES
KEI has developed a strong reputation and has established
a clear positioning of a “specialist cable manufacturer”. The company’s product
and quality offering, specialist positioning and continuous brand enhancing
activities and strengthening of the distribution & dealership network has
paid off well, with the domestic house wires business showing strong revenue
growth of 27% in the fiscal year 2010-11 as compared to previous year. Besides
establishing a strong brand recall with ongoing marketing activities, the
company continued to maintain excellent relations with realty developers,
building contractors, large dealers and architects. The company used practical,
cost-effective yet impactful advertising and marketing avenues tapping various
outdoor advertising mediums across the country. The company has a pan-India
presence, backed with adequate supply chain management ability to reach
products to distributors on time. The company continued to focus on augmenting
its distribution network in unrepresented areas and appointed additional 130
number of dealer / distributors across India with continued focus on its brand
building activities. The business segment also saw recruitment of additional
marketing staff to strengthen presence and servicing capabilities.
EXPORTS
The company exports products to over 45 countries across the globe,
focusing primarily on the oil & gas and utilities segment. Competitive
pricing and ability to offer customized solutions and speciality cables
provides KEI a niche in the export market. With the complete meltdown witnessed
in the company’s key markets of presence in Middle East and Africa, a sharp revenue
erosion was witnessed in the previous year. With the global recovery underway
and a definite spurt in demand, the export market is expected to slowly and
steadily improve in the next year. The Company has achieved Export Sales of `
1034.471 millions during financial year 2010-11 as compared to ` 936.260
millions during previous year, showing a growth of 10%. The Company has been
awarded “Trading House” status based on its export performance. The company
utilized the downturn as an opportunity to strengthen and build on
prequalification parameters, achieving approvals for large projects with local
companies in Middle East and appointed channel partners & agents to further
entrench into markets. Showcasing a strong commitment to grow its presence in the
overseas market, KEI participated in various international exhibitions to
establish new linkages across key targeted markets. The company continued to
bid in projects that were announced, and at the same time explored
opportunities to foray into different promising sectors where opportunities are
expected to pick up in the future.
FUTURE OUTLOOK
The commencement of the EHV
cable manufacturing along with the ability to offer turnkey EPC services, will provide
impetus to the institutional business segment where demand is fast expanding.
Some of the end-users of EHV cables include transmission companies, mega power
plants, metro cities, industries such as steel, cement, refineries,
petrochemicals, large realty projects such as IT Parks, large residential
complexes, etc. KEI's foray into the EHV segment will be aided by its Know-how
& Trademark License Agreement entered with Switzerland-based M/s Brugg
Kabel AG, Switzerland. This agreement would enable a faster entry into the
market and also help the company be in a position to offer designs, process
back-up services which are sought by end users. They are also specialists in
the area of turnkey systems/design of extra high voltage cable projects with
installations world over. Through this technical collaboration, KEI joins the
elite group of cable manufacturers worldwide equipped to manufacture cables
ranging from 66kV to 220kV at its facilities. This technical Collaboration
Agreement will entail complete know-how transfer, including designing,
manufacturing, testing techniques, training of its manufacturing/design
personnel in manufacturing of cables, etc. This technology will enable KEI to
establish a stronghold in the EHV cable segment and enable it to secure
contracts in the power segment from both the government and private sector.
Currently, India's requirement of 132kV / 220kV cables is primarily met through
imports. As the ability to procure local cables as against imports will result
in substantial cost saving, KEI foresees improved revenue visibility. KEI also
commenced execution of EPC contracts. The main services offered by the company
in the EPC segment include execution of:
·
Power
transmission projects of 66kV to 400kV
·
Substations
on turnkey basis
·
EPC
of EHV & HV Cables Systems
·
Electrical
balance of plant system for power plant
·
Electrical
industrial projects
QUALITY,
ENVIRONMENTAL AND OCCUPATIONALHEALTH & SAFETY MANAGEMENT SYSTEM STANDARD
Certification body, has awarded following accredited certification
to KEI’S Management System based on the periodical audits conducted by them.
ISO
9001:2008
ISO 9001 certification proves that the Company’s Quality
Management System has been certified against the best practices standard and is
found compliant. It provides a framework for focus on customer and product
requirements, process performance and effectiveness with emphasis on continual
improvement and objective measurement. It helps the Company to achieve
consistency, improve internal processes, fulfill contractual obligations and
gives a competitive advantage and increases customer confidence.
OHSAS
18001:2007
Certification to OHSAS 18001:2007 proves that the
Management System of the company ensures proactive protection of the health and
safety of the workforce. It shows Company’s commitments to the health and
safety of its employees, reduces overall liability, reduces occurrence of ill
health and injuries and provides assurance that legal compliance is effectively
managed.
OHSAS
14001:2004
An ISO 14001 Certification proves that the company’s Environment
Management System has been measured against the best practice standard and is
found compliant. It shows Company’s systematic approach in minimizing negative
impact on the environment and surrounding community. An effective environment
management system can significantly reduce the Company’s Environmental impact,
increase operational efficiency and identify opportunities for cost savings.
FIXED ASSETS
·
Land (Freehold)
·
Land (Lease Hold)
·
Building
·
Plant and Machinery
·
Electrical Fittings and Equipment
·
Furniture, Fixtures and Office Equipments
·
Vehicles
·
Assets Acquired Under Hire Purchase – Vehicles
·
Intangible Assets – Software
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.55.33 |
|
|
1 |
Rs.86.55 |
|
Euro |
1 |
Rs.67.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
NID |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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.