MIRA INFORM REPORT

 

 

Report Date :

11.06.2012

 

IDENTIFICATION DETAILS

 

Name :

TECPRO SYSTEMS LIMITED

 

 

Registered Office :

106, Vishwadeep Towers, Plot No. 4, District Centre, Janakpuri,  New Delhi -110058

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

07.11.1990

 

 

Com. Reg. No.:

55-041985

 

 

Capital Investment / Paid-up Capital :

Rs. 504.738 Millions

 

 

CIN No.:

[Company Identification No.]

L74899DL1990PLC041985

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELT03519F

 

 

PAN No.:

[Permanent Account No.]

AABCT4355K

 

 

Legal Form :

A Closely Held Public Limited Liability Company 

 

 

Line of Business :

Subject Engaged in Designing, Engineering, Manufacturing, Supply, Installation and Erection of Material Handling Systems.

 

 

No. of Employees :

2000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (65)

 

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 27000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal 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)

India

A1

A1

 

 

 

 

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

106, Vishwadeep Tower, Plot No.4, District Centre, Janak Puri, New Delhi – 110058, India

Tel. No.:

91-11-45038735

Fax No.:

91-11-45038734

E-Mail :

legal_ggn@tecprosystems.com

tecprodel@techprosystems.com

Website :

http://www.tecprosystems.com

 

 

Corporate Office:

202-204, Pacific Square, Sector 15, Part II, Gurgaon-122001, Haryana, India

Tel. No.:

91-124-4343100

Fax No.:

91-124-4343243

Email:

investors@tecprosystems.com

 

 

Head Office:

Tecpro Towers, Plot No. 11-A17, 5th Cross Road, SIPCOT IT Park, Siruseri, Chennai-603103, Tamilnadu, India

Tel. No.:

91-44-37474747

Fax No.:

91-44-37443011

E-Mail :

info@tecprosystems.com

 

 

Factory 1:

Plot No. 2-4, 25-27, Sector 7, HSIIDC Growth Centre, Bawal, Distt. Rewari, Haryana, India

 

 

Factory 2:

SP-496-497, RIICO Industrial Area, Bhiwadi, Distt. Alwar -301019, Rajasthan, India

 

 

Factory 3:

Plot No. E-928, RIICO Industrial Area, Bhiwadi, Rajasthan, India

 

 

Factory 4:

Plot No. A-98, RIICO Industrial Area, Bhiwadi, Rajasthan, India

 

 

Design, Engineering and

Marketing offices:

Located at:

 

  • Chennai
  • Secunderabad
  • Bangalore
  • Gurgaon
  • Kolkata
  • Mumbai
  • Ahmedabad
  • Pune
  • Kolkata

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. Ajay Kumar Bishnoi

Designation :

Chairman and Managing Director

Address :

Flat No.5, Old No.48, New No.58, 3rd Main Road, Kasturibai Nagar, Adayar, Chennai – 600020, Tamilnadu, India

Date of Birth/Age :

01.06.1957

Qualification :

MBA, DMM

Experience :

31 Years

Date of Appointment :

06.04.2002

 

 

Name :

Mr. Amul Gabrani

Designation :

Vice Chairman and Managing Director

Address :

F B – 26, Tagore Garden, New Delhi – 110027, India

Date of Birth/Age :

31.12.1959

Qualification :

BE, MBA

Experience :

29 Years

Date of Appointment :

07.11.1990

 

 

Name :

Mr. Arvind Kumar Bishnoi

Designation :

Director

Address :

Flat No.5, Old No.48, New No.58, 3rd Main Road, Kasturibai Nagar, Adayar, Chennai – 600020, Tamilnadu, India

Date of Birth/Age :

29.11.1984

Experience :

2 Years

Date of Appointment :

01.04.2009

 

 

Name :

Mr. Aditya Gabrani

Designation :

Whole Time Director

Qualification :

BE

Date of Appointment :

10.11.2012

 

 

Name :

Mr. Amar Banerjee

Designation :

Whole Time Director

Qualification :

BE

Experience :

40 Years

Date of Appointment :

02.04.2010

 

 

Name :

Mrs. Achal Ghai

Designation :

Non Executive Director

Address :

Villa 6, Cluster 40, Jumeirah Islands, P O Box No.18264, Dubai – 018264

Date of Birth/Age :

30.08.1963

Date of Appointment :

17.07.2006

Other Directorship :
  • M J Biopharma Private Limited

Director

U29249MH1987PTC044458

 

  • Avigo Capital Partners Private limited

Director

U67190DL2005PTC141426

 

  • Avigo Trustee Company Private limited

Director

U74999DL2005PTC144251

 

  • Super Hoze Industries Private Limited

Director

U34300DL2005PTC133336

 

 

Name :

Mr. Suresh Kumar Goenka

Designation :

Director

Address :

P – 119, CIT Road, Scheme VIM, Fulbagan, Kolkata – 700054, West Bengal, India

Date of Birth/Age :

23.08.1956

Date of Appointment :

26.09.2007

Other Directorship :
  • Midas Touch Health Care Private Limited

Director

U85110WB2004PTC100165

 

 

Name :

Mr. Brij Bhushan Kathuria

Designation :

Director

Address :

6704 DLF, Phase – IV, Gurgaon – 122002, India

Date of Birth/Age :

11.04.1956

Date of Appointment :

26.09.2007

 

 

Name :

Mr. Satvinder Jeet Singh Sodhi

Designation :

Director

Address :

A-4, MCD Officer Flat Soami Nagar, New Delhi – 110017, India

Date of Birth/Age :

04.10.1952

Date of Appointment :

20.06.2007

 

 

Name :

Mr. Anunay Kumar

Designation :

Director

Address :

9 Mekon Colony, O S Doranda P IO Hinu Ranchi – 834002, Jharkhand, India

Date of Birth/Age :

10.04.1946

Date of Appointment :

20.06.2007

 

 

Name :

Mr. Shakti Kumar Banarjee

Designation :

Director

Date of Appointment :

15.11.2007

 

 

Name :

Mr. Subrata Kumar Mitra

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Pankaj Tandon

Designation :

Company Secretary and Compliance Officer

 

 

Committee of Directors:

Mr. Ajay Kumar Bishnoi

Mr. Amul Gabrani

Mr. Arvind Kumar Bishnoi

Mr. Aditya Gabrani

Mr. Amar Banerjee

 

 

Audit Committee

Mr. Suresh Kumar Goenka, Chairman

Mr. Satvinder Jeet Singh Sodhi

Mr. Brij Bhushan Kathuria

Mr. Amul Gabrani

 

 

Shareholders’ Grievance Committee:

Mr. Brij Bhushan Kathuria, Chairman

Mr. Amul Gabrani

Mr. Aditya Gabrani

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2012

 

Names of Shareholders

Total No. of Shares

Total Shareholding as a % of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

19022556

37.69

Bodies Corporate

7540784

14.94

Sub Total

26563340

52.63

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

26563340

52.63

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

3513829

6.96

Financial Institutions / Banks

13320

0.03

Venture Capital Funds

705557

1.40

Foreign Institutional Investors

734871

1.46

Foreign Venture Capital Investors

5169147

10.24

Sub Total

10136724

20.08

(2) Non-Institutions

 

 

Bodies Corporate

1403605

2.78

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

1992334

3.95

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

177132

0.35

Any Others (Specify)

 

 

Trusts

10852

0.02

Non Resident Indians

1437496

2.85

Clearing Members

59379

0.12

Hindu Undivided Families

98042

0.19

Sub Total

8594887

17.03

Total Public shareholding (B)

23910451

47.37

Total (A)+(B) +(C)

50473791

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject Engaged in Designing, Engineering, Manufacturing, Supply, Installation and Erection of Material Handling Systems.

 

 

Products :

Item code No.

Products Description

84313910

Idlers and Pulleys

73089090

Structure

84742010

Crusher Components

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Unit

Installed Capacity*

Actual Production#@

Idlers

Nos.

120000

76783

Pulley

Nos.

2500

1971

Structure

Nos.

2400

1406

Crusher

Nos.

50

46

Crusher Component

Nos.

1000

929

Conveyor Systems

Nos.

5

--

Conveyor Component

Nos.

14300

8858

Feeder

Nos.

150

83

Feeder Component

Nos.

130

129

Screen

Nos.

90

62

Screen Component

Nos.

4200

3917

Iron and Steel Casting

MT.

1200

514

Ash Handling Plants

Nos.

7**

21316

Traveling Water Screens, Trash Cleaning Machines (Mechanical Cleaning Rakes) Allied Equipment and Accessories

Nos.

20***

3229

 

Note:

 

  • *As certified by management and relied upon by the auditors, as this is a technical matter.
  • # Excluding production capacities of job workers.
  • @Actual production includes production for captive consumption.
  • **Depending on the size of the plant according to the customers specification
  • ***Depending on the size as per customers specification and application.

 

 

GENERAL INFORMATION

 

No. of Employees :

2000 (Approximately)

 

 

Bankers :
  • Punjab National Bank, MID Corporate Branch, JMD Pacific Squre, Sector – 15, Part – II. Gurgaon – 122001, Haryana, India
  • State Bank of India, Leather International Branch, MVJ Tower, 177/1, P H Road, Kilpauk, Chennai – 600010, Tamilnadu, India
  • Vijaya Bank, Raja Garden, New Delhi – 110015, India
  • Standard Chartered Bank
  • Central Bank of India
  • IDBI Bank Limited
  • Yes Bank Limited
  • DBS Bank Limited
  • IndusInd Bank Limited.
  • ICICI Bank Limited.
  • Bank of India

 

 

Facilities :

Secured Loan

As on 31.03.2011

(Rs. In Millions)

As on 31.03.2010

(Rs. In Millions)

From Banks

 

 

Term Loan

738.098

874.632

Export Packing Credit

226.628

240.795

Cash Credit

4624.302

1750.348

Short Term Loans

(Repayable within one year)

1123.018

250.000

Buyers Credit

(Repayable within one year)

181.938

117.251

Bills Discounting

520.660

1585.546

Car Loan

8.679

5.318

From Others

Car Loan

45.293

34.043

Total

7468.616

4857.933

 

 

Unsecured Loan

As on 31.03.2011

(Rs. In Millions)

As on 31.03.2010

(Rs. In Millions)

Short Term Loans and Advances

(Repayable within one year)

 

 

From Bank

0.000

10.003

Total

0.000

10.003

 

Note:

 

  1. Term Loans include loan taken from State Bank of India amounting to Rs. 133.223 Millions for office of the Company at Siruseri, Chennai is secured by way of equitable mortgage over the leasehold rights of the Company’s land and building constructed thereon for office and also further secured by the current assets of the Company. Amount repayable within a year Rs. 42.373 Millions.

 

  1. 2 Term Loans include Corporate Loan from State Bank of India amounting to Rs.280.928 Millions for part funding of escalation in cost of construction of Company’s office at Siruseri, Chennai and for meeting the working capital requirements and is secured by way of charge on the entire current assets and fixed assets of the Company on a pari passu basis. Amount repayable within a year Rs. 136.688 Millions.

 

  1. Term loan and Corporate loan from State Bank of India mentioned in note no. 1 and 2 above are also collaterally secured by:

 

a)       Hypothecation of movable fixed assets owned by the Company and equitable mortgage over certain assets of certain directors (includes a relative of a director) of the Company on pari passu basis.

b)       Equitable mortgage over (i) certain factory land and buildings located at Bawal, Haryana and Bhiwadi, Rajasthan; (ii) factory land and building located at Bhiwadi, Rajasthan and certain properties located at Kasarwadi, Pune. The properties mentioned in (i) are also mortgaged in favour of other bankers on pari passu basis.

c)       Corporate loan is further collaterally secured by equitable mortgage over land on which office is constructed at Siruseri, Chennai, alongwith building constructed thereon belonging to the Company.

 

  1. The term loans and facilities from State Bank of India are also secured by corporate guarantee given by Fusion Fittings (I) Limited and pledge of certain shares by certain directors of the Company.

 

  1. Term loans also include loan taken from Yes Bank Limited amounting to Rs.323.946 Millions which is secured by subservient charge on all current assets (present and future) of the Company. Amount repayable within a year Rs. 163.946 Millions.

 

  1. Cash credit amounting to Rs. 4195.944 Millions, export packing credit amounting to Rs. 226.628 Millions short term loans amounting to Rs. 360.781 Millions and buyers credit amounting to Rs. 181,938,570 are secured by first charge on the current assets of the Company on pari passu basis. The charge on the current assets have further been extended to bills discounting amounting to Rs. 520,660 Millions Of the above:

 

  1. Cash credit, short term loans and buyers credit from certain banks are further primarily / collaterally secured by way of hypothecation of moveable fixed assets of the Company on a pari passu basis other than those specifically funded through term loans and charged to State Bank of India and by way of equitable mortgage over certain assets of certain directors (includes a relative of a director) of the Company on pari passu basis.

 

  1. Cash credit, short term loans, export packing credit, buyers credit and bills discounting mentioned in note 6 above are further secured by first charge in favour of all the banks under multiple banking arrangement* along with State Bank of India on pari passu basis over factory land and building at Bawal, Haryana and Bhiwadi, Rajasthan belonging to the Company and further collaterally secured by equitable mortgage over certain assets of certain directors (includes a relative of a director) of the Company. The properties mentioned in note 1 and 3(b) (ii) are mortgaged exclusively in favour of State Bank of India. 8 Cash credit from banks also include an amount of Rs. 428.358 Millions taken by erstwhile Tecpro Ashtech Limited secured by a pari-passu charge on present and future goods, books debts, all other moveable assets, outstanding monies, claims, Investments etc. of erstwhile Tecpro Ashtech Limited in terms of the deed of hypothecation and further secured by corporate guarantee given by Fusion Fittings (I) Limited, holding Company of erstwhile Tecpro Ashtech Limited and collaterally secured by hypothecation of movable fixed assets owned by the Company and equitable mortgage over certain assets of certain directors (includes a relative of a director) of the Company.

 

  1. Short term loans also include loans taken from IndusInd bank and DBS Bank amounting to Rs. 250.000 Millions and Rs. 512.237 Millions respectively secured by retention monies receivable from certain debtors of the Company.

 

  1. Car loans are secured by way of hypothecation of the respective vehicles.

 

  1. All the above loans except car loans are also guaranteed by certain directors either by themselves and / or together with a relative of a director.

* Secured loans mentioned in note 6 and 7 above are under multiple banking arrangement along with State Bank of India for which equitable mortgage over the immovable properties belonging to the Company was created on 29 March 2010 by State Bank of India by way of deposit of title deeds and was confirmed by State Bank of India by issue of Memorandum of Entry dated 10 May 2010.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

BSR and Company

Chartered Accountants

Address :

Building No. 10, 8th Floor, Tower B, DLF City, Phase III, Gurgaon – 122002, Haryana, India

Tel. No.:

91-124-2549191

Fax No.:

91-124-2549101

 

 

Associates/Subsidiaries :
  • Tecpro Energy Limited
  • Tecpro Trema Limited
  • Ajmer Waste Processing Company Private Limited
  • Bikaner Waste Processing Company Private Limited
  • Microbase Infosolution Private Limited
  • Tecpro Systems (Singapore) Pte. Limited
  • Tecpro International FZE

 

 

Enterprises over which key

management personnel exercise  significant influence:

  • Vasundhra Technologies (India) Private Limited
  • Tecpro Engineers Private Limited
  • Tecpro Paints Private Limited
  • Hythro Power Corporation Limited
  • Tecpro Stones Private Limited
  • Fusion Fittings (I) Limited
  • Shriram Cement Limited
  • BESL Infra-Projects Limited

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2011)

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

127900000

Equity Shares

Rs. 10/- each

Rs. 1279.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

50473791

Equity Shares  

Rs.10/- each

Rs. 504.738 Millions

 

 

 

 

 

 

Note:

 

[Of this, 140,000 shares have been allotted as fully paid up pursuant to a contract without payments being received in cash]

 

[Of this, 22,437,750 shares have been allotted as fully paid up by way of bonus shares out of share premium account]

 

[Of this, 16,526,291 shares have been allotted as fully paid up pursuant to the scheme of amalgamation]

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

504.738

442.237

276.975

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

6278.750

3079.559

1324.002

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

6783.488

3521.796

1600.977

LOAN FUNDS

 

 

 

1] Secured Loans

7468.616

4857.933

905.671

2] Unsecured Loans

0.000

10.003

91.908

TOTAL BORROWING

7468.616

4867.936

997.579

DEFERRED TAX LIABILITIES

0.000

0.000

5.746

 

 

 

 

TOTAL

14252.104

8389.732

2604.302

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1328.126

1208.340

267.245

Capital work-in-progress

283.749

110.060

544.689

 

 

 

 

INVESTMENT

369.610

94.181

228.078

DEFERREX TAX ASSETS

25.798

11.911

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1398.938
1061.457

793.151

 

Sundry Debtors
14073.388
9175.852

3874.860

 

Cash & Bank Balances
2991.576
1820.128

955.033

 

Other Current Assets
1363.322
1985.402

316.271

 

Loans & Advances
3570.688
741.097

196.227

Total Current Assets
23397.912
14783.936

6135.542

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditor
9418.274
6138.764

3696.530

 

Other Current Liabilities
1205.472
1235.439

452.636

 

Provisions
529.345
444.493

422.086

Total Current Liabilities
11153.091
7818.696

4571.252

Net Current Assets
12244.821
6965.240

1564.290

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

14252.104

8389.732

2604.302

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

7587.926

7712.761

5817.617

 

 

Contract Revenue

10817.804

6311.780

759.011

 

 

Service Income

1278.616

524.735

493.199

 

 

Other Income

171.926

209.169

90.682

 

 

TOTAL                                     (A)

19856.271

14758.445

7160.509

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Sold

14486.303

10876.291

5336.617

 

 

Personal Costs

913.077

628.281

370.305

 

 

Administrative Expenses

1022.937

782.810

472.811

 

 

TOTAL                                     (B)

16422.317

12287.382

6179.733

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

3433.954

2471.063

980.776

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1230.968

714.272

130.783

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2202.986

1756.791

849.993

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

102.785

73.283

31.198

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2100.201

1683.508

818.795

 

 

 

 

 

Less

TAX                                                                  (H)

737.962

587.058

311.922

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1362.239

1096.450

506.873

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1252.582

431.977

137.815

 

 

 

 

 

 

PROFIT / LOSS BROUGHT FORWARD OF THE TRANSFEROR COMPANY FOR THE YEAR ENDED 31 MARCH 2009

0.000

2.099

0.000

 

ADJUSTMENT IN PROFIT AND LOSS ACCOUNT ON AMALGAMATION

0.000

(13.080)

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

136.224

109.645

50.688

 

 

Interim Dividend

0.000

0.000

138.487

 

 

Dividend Tax

0.000

0.000

23.536

 

 

Proposed Dividend

151.421

132.671

0.000

 

 

Proposed Dividend Tax

24.564

22.548

0.000

 

BALANCE CARRIED TO THE B/S

2302.612

1252.582

431.977

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

183.217

256.274

213.835

 

 

Drawing and Designing

6.864

37.203

0.000

 

TOTAL EARNINGS

190.081

293.477

213.835

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

202.202

251.734

88.878

 

 

Capital Goods

22.226

43.560

15.818

 

TOTAL IMPORTS

224.428

295.294

104.696

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic (Rs.)

28.85

25.22

18.86

 

Diluted (Rs.)

28.85

25.19

18.62

 

 

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

3497.560

4531.460

6266.540

11007.370

 Total Expenditure

3084.130

4011.700

5657.550

8842.650

 PBIDT (Excl OI)

413.430

519.760

608.990

2164.720

 Other Income

23.760

37.550

19.490

28.490

 Operating Profit

437.190

557.310

628.480

2193.210

 Interest

330.480

400.380

367.890

635.990

 Exceptional Items

0.000

0.000

0.000

0.000

 PBDT

106.710

156.930

260.590

1557.220

 Depreciation

26.810

30.100

37.430

40.600

 Profit Before Tax

79.900

126.830

223.160

1516.620

 Tax

26.120

41.010

76.340

553.740

 Provision and Contingencies

0.000

0.000

0.000

0.000

 Reported PAT

53.770

85.820

146.820

962.890

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

53.770

85.820

146.820

962.890

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
6.86
7.43

7.08

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
27.68
21.83

14.07

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.49
10.53

12.79

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.31
0.48

0.51

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.75
3.60

3.48

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
2.10
1.89

1.34

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check list by info Agents

Available in Report (Yes/ No)

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the Firm

Yes

Premises details

No

Type of Business

Yes

Line of Business 

Yes

Promoter’s Background 

Yes

No. of Employees

Yes

Name of Person Contacted

Yes

Designation of Contact person

Yes

Turnover of Firm for last three years

Yes

Profitability for last three years

Yes

Reasons for variation <> 20%

---------

Estimation for coming financial year

No

Capital in the business

Yes

Details of sister concerns

Yes

Major Suppliers

No

Major Customers

No

Payments Terms

No

Export/ Imports Details (If applicable)

No

Market Information

------------

Litigations that the firm/ Promoters Involved in

------------

Banking details

Yes

Banking Facility Details

Yes

Conduct of the Banking Account

-------------

Buyer visit details

------------

Financials, if provided

Yes

Incorporation details is applicable

Yes

Last Accounts filed at ROC

Yes

Major Shareholders, if available

No

 

 

Industry Structure and Overview

The growth of the Material Handling industry is predominantly dependent on capital investments in user industries.

The main user industries for companies providing material handling solutions include power, steel, cement, mining and ports. The growth of these industries in turn relies on the growth in the economy and infrastructure investments in the country.

 

Power Industry

 

The Government of India is committed to its slogan of “Power for All”. At the beginning of the XI Five-Year Plan

Period (2007-12), the government had set a target for adding 78,577 MW of power which was later revised downward to 62,000 MW by the Planning Commission, citing reasons such as the slow progress in ordering of equipment, resulting in cascading delays in the supply of these items. The Government has again set an ambitious target of 1,00,000 MW of power capacity addition in the upcoming XII Plan (2012-17).

 

The power capacity addition would result in demand of Balance of Plant segment of a power plant in which the Company operates. A power plant is mainly divided into two parts, one is Boiler, Turbine and Generator (“BTG”) and the other is Balance of Plant (“BoP”). It is estimated that BoP segment of a power plant would attract investments worth Rs.1.6 trillion over the next five years which translates into a CAGR of 15%. BoP segment mainly comprises of five packages out of which Coal handling plant (CHP), Ash handling plant (AHP) and civil works account for 70-80% of total investments in BoP segment and the balance is water treatment, chimney, cooling towers and others.

 

Delays notwithstanding, this presents a huge opportunity for established players in the BoP space as infrastructure remains a vital sector for India’s growth story. With the Government substantially increasing the allocation for infrastructure projects and private corporate investment displaying signs of recovery, the capital goods sector is bullish about demand prospects in the forthcoming fiscal. The Union Budget 2011-12 continued to lay stress on infrastructure development, as the allocation for the sector has been increased by 23% YoY to Rs 2140000.000 Millions which is 48.5% of the planned expenditure.

 

Cement Industry

 

It was a subdued year for the cement industry as the demand growth for the year has been the lowest in the last 10 years at about 5.3%. Further, the industry has added 28 MT in FY11 in addition to 60 MT in the preceding fiscal year which has led to a surplus situation. Also the cement demand was hampered by the general slowdown in the infrastructure and real estate sectors due to rising cost of finance. Therefore, the capacity utilization is expected to remain low in FY12 also but is anticipated to improve in FY13 as the pace of capacity addition slows down and demand recovers.

In spite of the slowdown, the cement industry offers a unique, new exciting opportunity in which only a few players in the Indian market like Tecpro Systems can capitalize on. This opportunity lies in the Waste Heat Recovery (WHR) space which is a recent concept and currently being deployed by the cement industry where the exhaust gases produced during cement production are used as fuel to produce power. Considering the shortage of coal, most cement producers are looking at the WHR model as a reliable low cost solution. The market prospects of the WHR space look promising given that every cement manufacturer would like to move to this mode of energy generation where there is no cost of raw material.

 

Steel Industry

 

Given the growth of core sectors like construction and infrastructure, power automobile and oil and gas, the Steel industry is expected to witness huge demand in the next couple of years. According to CRISIL data the demand for steel is expected to grow at CAGR of 10- 12% over next 5 years. Domestic demand for steel is expected to rise to 90.7 million tonnes in FY15E, as compared to 52.8 million tonnes in FY10.

 

The strong demand for steel seen in the last 5 years coupled with cheap availability of domestic iron ore and strong prospects for future demand growth has incited steel majors to take on major capital expansion plans. As per the announced capital expansion plans, around 51 MT of steel making capacity is scheduled to be added over the next 5 years. With the aim of increasing and modernizing its facilities, SAIL has planned a capex of Rs. 560 billion to expand its capacity from 14.4 MT to 26.2 MT. Other players in the Steel industry have similar expansion plans. About 32 million tonnes of capacity is expected to be added in the industry and capital investments of Rs. 1.1 trillion are expected in steel industry over the next five years, of which Rs. 40 billion are expected to be invested in material handling equipment.

 

1. Economic Review

 

The Indian economy continued to outperform most emerging markets during 2010-11 retaining its position as the second fastest growing economy, after China, amongst the G-20 countries. China and India contributed nearly a quarter of the incremental world output. GDP growth decelerated to 7.8 per cent in Q4 of 2010-11 from 8.3 per cent in the previous quarter and 9.4 per cent in the corresponding quarter a year ago. For the year as a whole, GDP growth in 2010-11 was 8.5 per cent.

 

Growth had moderated in the preceding two years as the global economy slowed down as a result of global financial crisis. The YoY IIP growth moderated to 6.3 per cent in April 2011, growth in capital goods production at 14.5 per cent was buoyant. The growth was majorly driven by the inherent strength of domestic demand in the Country, stimulus packages offered by the Government and the monetary policies of the Reserve Bank of India. However, the high degree of integration with the global economy, recent global macroeconomic developments pose some risks to domestic growth.

 

Currently the major threat is the growing inflation from rising global commodity prices as well as domestic core inflationary pressures. In spite of certain adverse conditions at the global level, India is expected to grow at healthy levels thanks to the large investment plans of the Government of India across various sectors, rising per capita income and increase in rural and urban spending. Hardening of international crude oil prices on the back of geo-political concerns pose risks to current account balance during 2011-12. Higher growth in software exports and robust transfer receipts may provide some cushion. Financing of the current account, however, may not be a problem as capital flows are likely to improve considering India’s long run growth prospects and policies supporting FDI, as also larger FII investments in debt markets.

 

  1. Company Overview

 

Tecpro Systems Limited (“Tecpro”) started its material handling operations in 2001 and currently occupies a leadership position in material handling, coal handling and ash handling in the country. Today, Tecpro has in-house capabilities for providing comprehensive solutions in material and ash handling systems and it designs, engineers, manufactures, sells, commissions and services a range of systems and equipment to provide turnkey projects for the core infrastructure related sectors like power, steel, cement and other industries.

 

Tecpro has kept adding to its skills and expanded across the value chain by entering into Balance of Plant (BoP) and Engineering, Procurement and Construction (EPC) contracts. In BoP, its scope includes design and engineering, manufacturing and sourcing of equipment and packages, project management and commissioning. The company got its first BoP contract worth Rs. 993 crore by the Chhattisgarh State Power Generation Company for a 1x500 MW thermal power plant at Korba West in August 2009 through a consortium. It has also won two bids for BoP of 600 MW each from APGENCO located at Kakatiya and Rayalseema in financial year 2010-11. This year it has also entered into WHR segment which has huge potential in the Cement Sector.

 

The Company has a pan-India presence with its head office in Chennai and design, engineering and marketing offices at Gurgaon, Chennai, Kolkata, Mumbai, Hyderabad, Pune, Ahmedabad and Bangalore. Through its subsidiaries Tecpro International FZE in Dubai, UAE and Tecpro Systems (Singapore) Pte in Singapore and marketing office in Johannesburg, South Africa, it caters to the needs of Middle East, South-East Asia and African markets. Tecpro has four manufacturing facilities in India, of which, three are at Bhiwadi, Rajasthan and one at Bawal, Haryana.

 

This year is special and memorable for the Company since it had a successful listing on the stock exchanges. Through this IPO, Tecpro raised a total of Rs. 2.2 billion and issued 6.250 million shares (12% dilution) at a price of

Rs. 355 per share (at Rs. 338 per share to its employees). The Company raised the capital to meet the growing working capital requirement of the business.

 

The Company has recorded exponential growth over the last few years and given the strong order inflows continuously accruing, it will continue to expand at a rapid pace in the future.

 

4. Review of Operations

 

Tecpro has developed in-house manufacturing and design and engineering capabilities with an established track record of executing turnkey projects in the power, steel and cement industries. These capabilities have been the main drivers that give it an edge in executing large projects in areas of material handling solutions, ash handling solutions, BoP and EPC contracts for thermal power projects, in a timely and cost effective manner.

 

Strategy

 

The Company is focusing on the opportunities available in the material and ash handling solutions as well as undertaking BoP and EPC contracts in the power sector. The strategy for large projects in the BoP and EPC space will be based on consortium bidding where Tecpro will successfully bid for and jointly execute large projects and build a versatile track record.

The company intends to increase its product range of Material Handling equipments like stacker reclaimers of different sizes and gradually reducing its dependence on external manufacturers and suppliers. This strategy would enable the company to enhance its capability to execute projects in a timely manner and improve profitability.

Going forward, the Company intends to move towards providing more value-added engineering services and improving the manufacturing and project execution capabilities. The Company plans to foray into the supply and commissioning of water treatment plants, coal washeries, port handling operations and other projects in the infrastructure sector. In order to acquire technical expertise in manufacturing such water treatment plants, cooling towers or coal washeries, the company may enter into technical collaborations or strategic tie-ups with international companies with advanced manufacturing technologies or acquire existing companies with such technical expertise.

 

Order Booking for 2010-11

 

During the year the Company bagged two prestigious orders from APGENCO worth Rs. 19780.000 Millions for Rayalaseema Thermal Power Project Stage IV (1x600 MW) and Kakatiya Thermal Power Project – StageII (1x600 MW). These orders have signaled its entry as one of the leading players in the BoP space. In addition to these orders, Tecpro also bagged an EPC order worth Rs. 2080.000 Millions from Kohinoor Power Private Limited for design, engineering, project management and supply of a 66 MW power plant in Jamshedpur. This order augments its efforts of establishing itself as a major EPC supplier and we will aggressively bid for bigger orders in this space. It has also recently bagged orders worth Rs. 2029.700 Milliions from UltraTech Cement Limited (Aditya Birla Group) for engineering, supply and erection of Waste Heat Recovery based Power Plant at Chhattisgarh and Karnataka and an order worth Rs. 208.200 Millions from Shree Cement Limited for engineering, supply and erection of Waste Heat Recovery Boiler for their plant at Rajasthan. The WHR space is being viewed highly optimistically and is expected to show strong traction going forward. The Company has bagged several other orders during the year which are being executed satisfactorily.

 

Order inflows for the year stood at Rs. 43530.000 Millions, the highest the Company has ever recorded. The order book position for the Company is very strong and the order backlog as on March 31, 2011 stood at Rs. 4 3710.000 Millions which provides good revenue visibility for the next few years and we are very positive of winning new orders on a timely basis. BoP contributed 48%, while Material Handling and Ash handling segments accounted for 43% and 9% respectively of the total order backlog.

 

New Initiatives

 

The Company has entered into collaboration with Nanjing Triumph Kaineng Environment and Energy Co. Limited (NTK) of China for Waste Heat Recovery (WHR) power projects. WHR is new concept to the Indian Cement Industry, wherein the exhaust gases produced during production of cement are used as fuel to produce power. Hence, this model of alternative energy for cement plants can generate between 2-25 MW of power. Tecpro recently bagged orders worth Rs. 2240.000 Millions in WHR, including the design, engineering and supply of equipment and machines for a WHR-based power plant for Ultratech Cement. This plant is likely to have a 13.85 MW net power generation capacity.

 

The company also entered into a License Agreement with Pneuplan Oy of Finland to undertake projects involving Dense Phase Pneumatic Conveying for Fly Ash and Allied Materials. Pneuplan has agreed to give exclusive rights to Tecpro to use the technology for Pneumatic Extraction and Conveying Systems developed or to be developed by Pneuplan including the information required for design and selection, as well as technical know-how and drawings required to manufacture specialized products, provide information and assistance for the manufacture and testing of Dense Phase Pneumatic Conveying System.

 

Technology tie-ups like these provide the Company with the competitive edge and reduce R and D costs and time, to market for new technologies. Over the years Tecpro has acquired the ability to offer comprehensive solutions, and earned a reputation for accomplishing varied projects in a timely and cost effective manner through its extensive application knowledge and technology.

 

 

5. Financial Review

 

Tecpro has witnessed a robust revenue growth year on year over the last few years. Tecpro intends to maintain the current momentum going forward. The consistent growth in the order book position is a result of the company’s performance track record and ability to successfully market services to the existing and new clients. In line with the industry trend, the revenues of Tecpro are skewed towards the last quarter as a significant portion of the revenues are recognized in the last quarter of the financial year. This is in line with the accounting practices that are set, and the apportionment of indirect overheads, which are proportionately low during last quarter, so profitability is high in the last quarter hence, it is best to monitor the Company’s business on an annual basis. The financial highlights for financial year 2010-11 are as follows:

 

• The total revenues during the year stood at Rs. 1, 9857.300 Millions, registering a growth of 35%

• EBITDA was at Rs. 3007.000 Millions, up 52%

• Profit After Tax for the year stood at Rs. 1362.000 Millions, up 24%

 

6. Outlook

 

The Government of India is taking steps to increase investments in the infrastructure sector which will start showing results in the near future. Once the economy overcomes the temporary hurdles of rising inflation and political instability, the private sector players are likely to come forward with their plans of investment. With the Government’s focus and sustained budgetary allocation backed by increased funding by international and multilateral development financial institutions, the long term prospects for the infrastructure industry looks promising. Drivers like power projects, other infrastructure development activities, industrial growth and favorable policy regulations will drive growth in this industry. As global export markets open up, this will help India develop a strong presence in exports. Power sector is the largest contributor to their revenues. Going forward, with the Government clearing the blue print for adding 100,000 MW in the Twelfth five-year plan, there is high growth potential for companies operating in the BoP and EPC space. Emerging trends such as outsourcing of engineering services can provide new opportunities for quantum growth. Also, an improving economic scenario, continued government focus on infrastructure investment and pick-up in private capex augurs well for companies providing Material Handling solutions for the core sectors of the economy.

 

Tecpro has high-end engineering skills and a leading edge across all its service offerings. The Company has also forayed into the niche WHR segment in which there are only a few players present. The prospects for the sector look very encouraging and Tecpro Systems is expected to bag more business in this space.

 

With the industry showcasing high growth potential in the coming years, Tecpro is well poised to exploit its internal strengths, carry out its ambitious expansion plans and focus its presence in the power sector. There has been a continuous growth in the order book position over the past few years and the Company’s aggressive bidding approach to book new orders, effective and timely execution of awarded orders ensure that the Company is well placed to demonstrate high growth in the years to come and strengthen its leadership position in the Indian infrastructure space.

 

AMALGAMATION OF A SUBSIDIARY

 

During the year, the Company has filed a Scheme of Amalgamation with the Hon’ble High Court of Delhi for amalgamation of Microbase Infosolution Private Limited (“MIPL”), a wholly owned subsidiary of the Company with the Company (“the Scheme”). The Scheme shall be beneficial to the interests of the stakeholders of both the companies as well as public at large, as the amalgamation would create overall synergies, enhance the asset base of the company and would result in better administration and optimal utilization of resources of both the companies.

 

FIXED ASSETS:

 

  • Freehold Land
  • Leasehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fitting
  • Vehicles
  • Computers

 

 

STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED

31ST MARCH 2012

 

Rs. in Millions

Particular

Quarter Ended

 

Year Ended

 

31.03.2012

31.12.2011

31.03.2012

 

(Audited)

(Unaudited)

(Audited)

 

 

 

 

Net Sales / Income from operations

10992.351

6251.726

25250.441

Other Operating Income

15.021

12.240

46.178

Total Income

11017.372

6263.966

25296.619

 

 

 

 

Expenditure

 

 

 

Changes in inventories of Finished goods, work in progress and stock in trade project supplies

364.694

(170.398)

(803.932)

Consumption of raw materials

4895.679

3169.904

12703.673

Purchase of traded goods

1611.348

951.761

3329.707

Supplied to Fabrication / sites for fabrication

821.809

799.611

2636.863

Freight and forwarding

194.954

233.951

698.745

Employees cost

369.415

282.860

1209.055

Depreciation

40.595

37.428

134.927

Other expenditure

684.757

305.141

1588.881

Total

8883.257

5610.258

21497.919

Profit from operations before other income, interest and exceptional Items

2124.121

653.708

3798.700

Other income

28.494

22.066

115.604

Profit before interest and exceptional Items

2152.625

675.774

3914.304

Interest

635.989

452.618

1967.799

Profit after Interest but before Exceptional Items

1516.626

223.156

1946.505

Exceptional Items

--

--

--

Profit (+)/Loss(-) from Ordinary Activities before tax

1516.626

223.156

1946.505

Tax expense

553.735

76.340

697.206

Net Profit (+) / Loss (-) for the year period

962.891

1097.369

1249.299

Paid up equity share capital (Face value of Rs.10/- per share)

504.738

504.738

504.738

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

--

--

7069.892

Earning per share (EPS)

 

 

 

 (a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

19.08

2.91

24.75

(a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

19.08

2.91

24.75

Public shareholding

 

 

 

          Number of shares

23910451

23910451

23910451

          Percentage of shareholding

47.37

47.37

47.37

Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

2103033

2103033

2103033

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

7.92

7.92

7.92

Percentage of shares (as a % of total share capital of the company)

4.17

4.17

4.17

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

24460307

24460307

24460307

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

92.08

92.08

92.08

Percentage of shares (as a % of total share capital of the company)

48.46

48.46

48.46

 

 

Note:

 

1.       The above Financial result have been reviewed by Audit committee at their meeting held on 24 May 2012 and approved and taken on recorded by the Board of Directors at their meeting held on 24 May 2012. the Statutory auditors of the company have audited the financial results for the year ended 31 March 2012 and figures for the quarter ended 31 March 2012 as reported in these financial results are the balancing figures between audited figures in respect of the full financial year and the published year to date unaudit figures upto the end of the third quarter of the relevant financial year. An unmodified report has been issued and the same has been filed with the stock exchange and is available on the website of the company.

 

2.       The Board of Directors have recommended a dividend of Rs. 3/- on equity share of Rs. 10/- each i.e. @ 30%, subject to approval of shareholders at the ensuing annual general meeting.

 

3.       During the current quarter, the company has acquired 260000 equity share of Eversun Energy Private Limited EEPL representing 100% shareholding as per Share Purchase Agreement dated 24 February 2012 for an amount of Rs. 70.175 Millions, EEPL is engaged in the business of Engineering, Procurement and Construction EPC contracts.

 

4.       On March 6, 2012 search preceeding under Section 132 of the Income Tax Act, 1961 were undertaken in respect of the company. The search proceedings were effectively concluded vide last Panchnama drawn on May 03, 2012. At this stage, no tax demand has been determined pursuant to the present search proceedings.

 

5.       During the previous quarter the company has recognised recovery of Interest expense of Rs. 115.800 Millions pertaining to the period 1 April 2011 to 30 September 2011.

 

6.       Previous period figure have been regrouped /recast wherever necessary to make them comparables.

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

                                                                                                                                           Rs. in Millions

Particular

Quarter Ended

Quarter Ended

Year Ended

 

31.03.2012

31.12.2011

31.03.2012

 

(Unaudited)

(Unaudited)

(Audited)

 

 

 

 

Segment Revenue

 

 

 

Material handling systems

11001.058

6266.538

25296.618

Setting up of complete power plant on engineering, procurement and construction (EPC) basis

0.000

0.000

0.000

Waste processing

0.000

0.000

0.000

Power generation and distribution

0.000

0.000

0.000

Total

11001.058

6266.538

25296.618

Less: Inter Segment Revenue

0.000

0.000

0.000

Net Sales/ Income from Operation

11001.058

6266.538

25296.618

 

 

 

 

Segment Results

 

 

 

Profit/ Loss before tax and interest from each segment

 

 

 

Material handling systems

2006.837

571.555

3454.671

Setting up of complete power plant on engineering, procurement and construction (EPC) basis

0.000

0.000

0.000

Waste processing

0.000

0.000

0000

Power generation and distribution

0.000

0.000

0.000

Total

2006.837

571.555

3454.671

Less: Interest

522.057

367.892

1620.808

Add: Other Unallocable expenditure net off Unallocable income

(31.844)

(19.493)

(112.641)

Total Profit/ Loss before tax

1516.625

223.156

1946.505

 

 

 

 

Capital Employed (Segment Assets – Segment Liabilities)

 

 

 

Material handling systems

18163.947

16783.589

18163.947

Setting up of complete power plant on engineering, procurement and construction (EPC) basis

90.029

94.694

90.029

Waste processing

0.000

0.000

0.000

Power generation and distribution

0.000

0.000

0.000

Unallocated

(10609.267)

(10036.359)

(10609.267)

Total

7644.709

918.154

6783.489

 

Note:

 

  1. The segment have been identified in line with accounting standard (AS) 17 ‘Segment Reporting’, taking into account the risks and return, organization structure and internal reporting system.

 

  1. Segment revenue includes net sales (sale of manufactured goods and traded goods), service income and contract revenue directly identifiable to the segment. Segment results and capital employed includes amounts directly identifiable to each of the segment and which can be allocated on a reasonable basis. Unallocable income includes interest income and other income that are not identifiable to the segment. Unallocable expenditure includes corporate expenditure which is not identifiable to any of the segment. Unallocated capital employed includes assets and liabilities which are not specifically allocable to individual segments.

 

  1. Previous period figure have been regrouped /recast wherever necessary to make them comparables.

 

 

STATEMENT OF ASSETS AND LIABILITIES AS ON 31 MARCH 2012

 

Rs. in Millions

Particular

As on 31.03.2012

 

Audited

 

 

Shareholders Funds

 

Share Capital

504.738

Reserve and Surplus

7139.971

 

 

Share Application Money

0.000

Minority Interest

0.000

Loan Funds

 

Secured Loan

13006.381

Unsecured Loan

0.000

Deferred Tax Liabilities (Net)

1.138

Total

20652.228

 

 

Fixed Assets

2709.208

Investment

215.533

Deferred Tax Assets (Net)

0.000

 

 

Current Assets, Loans and Advances

 

Inventories

2313.485

Sundry Debtors

23318.514

Cash and Bank Balances

2285.041

Loans and Advances

2448.692

Other Current Assets

7876.566

Total

38242.298

 

 

Less: Current Liabilities and Provision

 

Current Liabilities

20063.920

Provision

450.891

Total

20514.811

 

 

Net Current Assets / Liabilities

17727.487

 

 

Total

20652.228

 

 

CONTINGENT LIABILITIES

 

Particulars

As on 31.03.2011

(Rs. In Millions)

As on 31.03.2010

(Rs. In Millions)

Claims against the company not acknowledged as debt : Sales tax matters

83.197

48.707

Claims against the company not acknowledged as debt : Entry tax matters

29.397

0.000

Claims against the company not acknowledged as debt : Income tax matters

0.347

0.000

Claims against the company not acknowledged as debt : Labour matters

1.200

1.200

Claims against the company not acknowledged as debt : Service tax matters

8.977

0.000

Demand for additional price/ enhancement cost in respect of factory plots situated in Bawal *

8.529

7.851

Sales tax liability against pending forms

1685.549

1169.182

 

 

*The factory plots belonging to the Company, situated at Bawal were allotted by the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDCL) in favour of the Company through Regular Letters of Allotment (RLA) letter dated 23 January 2004 and 9 July 2004. The Company has received notices dated 4 December 2007 and 29 December 2007 from HSIIDCL for additional price/ enhancement cost amounting to Rs. 8.529 Millions {including interest} (previous year Rs. 7.851 Millions {including interest}), in respect of factory plots situated in Bawal. The Company has filed a writ petition in the Punjab and Haryana High Court on 8 January 2008 and has obtained a stay order on 9 January 2008. This matter is under adjudication. Pursuant to above, Rs. 8.529 Millions (previous year Rs. 7.851 Millions) has been disclosed as ‘Contingent liability’ in the notes to the accounts.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 55.36

UK Pound

1

Rs. 85.64

Euro

1

Rs. 69.21

 

INFORMATION DETAILS

 

Report Prepared by :

ACH

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

65

 

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

 

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.