Business
information report
1. Summary Information
|
|
|
Country |
|
|
Company Name |
ESCORTS LIMITED |
Principal Name 1 |
Mr. Rajan Nanda |
|
Status |
Good |
Principal Name 2 |
Mr. Nikhil Nanda |
|
|
|
Registration # |
55-039088 |
|
Street Address |
SCO -232, 1st Floor, Sector – 20, Panchkula – 134109,
Haryana |
||
|
Established Date |
17.10.1944 |
SIC Code |
-- |
|
Telephone# |
91-172 - 4416938 |
Business Style 1 |
Manufacturers |
|
Fax # |
91-172 - 4416938 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Agri Machinery |
|
|
# of employees |
5338 [Approximately] |
Product Name 2 |
Auto-Components |
|
Paid up capital |
Rs. 1023, 100,000/- |
Product Name 3 |
Railway Equipment |
|
Shareholders |
Promoter Shareholding (27.67%) Public Shareholding (72.33%) |
Banking |
Andhra Bank |
|
Public Limited Corp. |
Yes |
Business Period |
68 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (63) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Joint
Venture |
-- |
Hughes
Communications India Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
30.09.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
9057,100,000 |
Current Liabilities |
8819,000,000 |
|
Inventories |
3273,600,000
|
Long-term Liabilities |
3726,000,000 |
|
Fixed Assets |
14618,800,000 |
Other Liabilities |
796,300,000 |
|
Deferred Assets |
164,400,000 |
Total Liabilities |
13,341,300,000 |
|
Invest& other Assets |
4211,900,000 |
Retained Earnings |
16961,400,000 |
|
|
|
Net Worth |
17984,500,000 |
|
Total Assets |
31,325,800,000 |
Total Liab. & Equity |
31,325,800,000 |
|
Total Assets (Previous Year) |
29,041,900,000 |
|
|
|
P/L Statement as of |
30.09.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
32101,500,000 |
Net Profit |
1200,900,000 |
|
Sales(Previous yr) |
27457,300,000 |
Net Profit(Prev.yr) |
1375,500,000 |
MIRA
INFORM REPORT
|
Report Date : |
22.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
ESCORTS LIMITED |
|
|
|
|
Registered
Office : |
SCO -232, 1st Floor, Sector – 20, Panchkula – 134109,
Haryana |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
30.09.2011 |
|
|
|
|
Date of
Incorporation : |
17.10.1944 |
|
|
|
|
Com. Reg. No.: |
55-039088 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 1023.100 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899HR1944PLC039088 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELE00069G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACE0074B |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturers of
Agri Machinery, Auto-Components and Railway Equipment. |
|
|
|
|
No. of Employees
: |
5338 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 71000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed 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 normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
SCO 232, 1st Floor, Sector 20, Panchkula - 134109, |
|
Tel. No.: |
91-172 - 4416938 |
|
Fax No.: |
91-172 - 4416938 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Corporate Office : |
15/5, |
|
Tel. No.: |
91-129-2250222 |
|
Fax No.: |
91-129-2250058 |
|
|
|
|
Administrative Office and Components Plants: |
Auto Suspension
Product Division |
|
|
18/4, Mathura Road, Faridabad-121007, |
|
Tel. No.: |
91-129-2284911 |
|
Fax No.: |
91-129-2264939 |
|
|
|
|
Engineering
Division: |
Railway
Equipment Division |
|
|
Plot No. 115, Sector-24, Faridabad-121005, |
|
Tel No.: |
91-129-2232371 |
|
Fax No.: |
91-129-2232146 |
|
|
|
|
Tractor
Assembly, Transmission and Engine Plant: |
Plot No. 2 and 3, Sector 13, |
|
Tel No.: |
91-129-2291230 |
|
Fax No.: |
91-129-2250009 |
|
|
|
|
Factory: |
Plot No.9, Sector 1, Integrated Industrial Estate, Pant Nagar,
District – Rudrapur, Udham Singh Nagar, Uttaranchal – 263145, |
DIRECTORS
As on 30.09.2011
|
Name |
Mr. Rajan Nanda |
|
Designation |
Chairman and Managing Director |
|
Age |
59 Years |
|
Qualification |
Senior |
|
Experience |
41 Years |
|
Date of Joining |
03.04.1970 |
|
Previous Employment |
Harparshad & Company Limited - Director |
|
|
|
|
Name |
Mr. Nikhil Nanda |
|
Designation |
Executive Director and COO |
|
Age |
30 years |
|
Qualification |
BBA |
|
|
|
|
Name |
Dr. P. S. Pritam |
|
Designation |
Director |
|
Qualification |
M. A., LLB, Ph. D. |
|
|
|
|
Name |
Dr. S. A. Dave |
|
Designation |
Director |
|
Qualification |
M.A. [Economics] Ph.D. |
|
Other
Directorships |
1. HDFC Limited 2. Crisil Limited 3. SBI Gilts Limited 4. Future Software Limited 5. GIIC 6. Phoenix Township Limited 7. Captech Online Private Limited 8. Quantum Information Services Limited 9. Centre for Monitoring Indian Economy Private Limited 10. Merchant Media Limited 11. Indo National Limited 12. Spice Corporation Limited 13. Spice Net Limited |
|
|
|
|
Name |
Mr. S C Bhargava |
|
Designation |
Director |
|
|
|
|
Name |
Dr. M. G. K. Menon |
|
Designation |
Director |
|
Qualification |
B.Sc., M.Sc., Ph.D., D.Sc [h.c.], F.R.S. |
|
Other
Directorships |
Indfos Industries Limited |
|
|
|
|
Name |
Mr. Hardeep Singh |
|
Designation |
Director |
KEY EXECUTIVES
|
Name |
Mr. G. B. Mathur |
|
Designation |
Vice President –
Law and Company Secretary |
|
Qualification |
B. Sc. ACS, LLB |
|
|
|
|
Name |
Mr. O. K. Balraj |
|
Designation |
Vice President and Group Chief Financial
Officer |
|
|
|
|
Name |
Mr. Ishan Mehta |
|
Designation |
Executive Vice President, HR and ER |
|
|
|
|
Name |
Mr. S. Sridhar |
|
Designation |
Chief Executive Officer |
|
|
|
|
Name |
Mr. Kanwal Kishore Vij |
|
Designation |
ED and Chief Executive Officer |
|
|
|
|
Name |
Mr. Vikram Singhal |
|
Designation |
ED and Business Head |
|
|
|
|
Name |
Mr. Lalit K Phawa |
|
Designation |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
1409377 |
1.33 |
|
Bodies Corporate |
27816934 |
26.34 |
|
Sub Total (A)
(1) |
29.226311 |
27.67 |
|
2. Foreign |
|
|
|
Total
Shareholding of Promoter and Promoter Group (A) |
29.226311 |
27.67 |
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
12258872 |
11.61 |
|
Financial Institutions / Banks |
3124292 |
2.96 |
|
Insurance Companies |
1531867 |
1.45 |
|
Foreign Institutional Investors |
17380034 |
16.46 |
|
Sub Total (B)
(1) |
34295065 |
32.47 |
|
|
|
|
|
2. Non Institutions
|
|
|
|
Bodies Corporate |
8321000 |
7.88 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
24137791 |
22.85 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
9637869 |
9.13 |
|
Sub Total |
42096660 |
39.86 |
|
Total Public
Shareholding (B) |
76391725 |
72.33 |
|
Total (A) + (B) |
105618036 |
100.000 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
|
|
|
1 )
Promoter and Promoter Group |
-- |
-- |
|
2)
Public |
-- |
-- |
|
Sub
Total |
-- |
-- |
|
Total (A) + (B) +(C) |
105618036 |
100.000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Agri
Machinery, Auto-Components and Railway Equipment. |
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|
Products : |
|
PRODUCTION STATUS (As
on 30.09.2011)
|
Particulars |
|
Unit |
Installed
Capacity* |
Actual
Production |
|
**Agriculture Tractors |
|
Nos |
98,940 |
63744 |
|
**Internal Combustion Engine **Engine for Agricultural Tractors |
|
Nos |
98,940 |
66821 |
|
Round and Fiat Tubes Heating Elements (Meters) |
|
Meters |
180,000 |
59665 |
|
Double Acting hydraulic Shock Absorbers for railway Coaches |
|
NOs |
36,000 |
19098 |
|
Centre Buffer Copiers |
|
Nos |
1,200 |
476 |
|
Automobile Shock Absorbers Telescopic Front Fork McPherson struts |
|
Nos |
4,000,000 |
1867369 |
|
Brake Block |
|
Nos |
1,800,000 |
699714 |
|
All types of brakes used by Railways |
|
Nos |
36,000 |
7472 |
Notes :
*(a) As certified by
the management and not verified by the auditors, being a technical matter.
(b) Sales and
production pertain to finished goods only. Opening and Closing stocks include
partly executed contracts but exclude stocks held by the consuming/selling
divisions.
(c) In item no. 3
Installed capacities and actual production are in meters, rest are in numbers.
**(d) Opening and
Closing stocks of items of Research and Development have been excluded.
(e) Opening and
Closing stocks are inclusive of Work-in-Progress.
(f) Item no. 2 is not included in trading/finished stock.
GENERAL INFORMATION
|
No. of Employees : |
5338 [Approximately] |
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Bankers : |
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Facilities : |
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|
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Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
S N Dhawan and Company Chartered Accountants |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Grant Thornton Chartered Accountant |
|
|
|
|
Consultants
& Advisors: |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Subsidiary
Company Domestic : |
Adress: Plot No. 2, Sector-13,
Faridabad-121007, Tel No.: 91-129-2283073/ 2286694 Fax No.: 91-129-2283065
|
|
Subsidiary
Company Overseas : |
Address: UL, Preezemyslowa 11,
11-700 Tel No.: 91-48-89-7412202 Fax No.: 91-48-89-7413633
Address: Post Box-1139, 111, Tel No.: 91-252-8234151 Fax No.: 91-252-8234576 |
|
|
|
|
Others Domestic
: |
|
|
|
|
|
Others Overseas
: |
|
CAPITAL STRUCTURE
As on 30.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
120,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1200.000 millions |
|
73,000,000 |
Unclassified Shares |
Rs. 100/- each |
Rs. 7300.000 millions |
|
|
Total |
|
Rs.
8500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
105,618,036 |
Equity Shares |
Rs. 10/- each |
Rs. 1056.200 millions |
|
|
Less : Amount receivables from Escort Employees Benefit and Welfare
Trust (face value of 3313,612 shares allotted to Trust) |
|
Rs. 33.100 millions |
|
|
Total |
|
Rs.1023.100 millions |
NOTE:
Paid-up Capital includes:
(i) 18,700 Equity Shares
(previous year - 18,700) allotted as fully paid-up for consideration other than
cash pursuant to contracts.
(ii) 10,505,306
(previous year - 10,505,306) fully paid Equity Shares of Rs.10/- each issued to
the members of Hardship Committee appointed by Hon'ble High Court,
(iii) 4,195,878
(previous year - 4,195,878) fully paid Equity Shares of Rs.10/- each issued on
conversion of 61,455 4.25%
Secured
Convertible Debentures issued by the Company to the QIBs in terms of Clause 5.1
(B)(i) of Section XII of the Placement Document dated 29th June, 2007 pursuant
to Chapter XIII-A of SEBI DIP Guidelines.
(iv) 268,000
(previous year - 268,000) fully paid Equity Share of Rs. 10/- each issued to
employees (through Escorts Employees Benefit and Welfare Trust) pursuant to an
Employee Stock Option Scheme 2006.
(v) Bonus Shares:
19,434,125 Equity Shares allotted before 1988 as fully paid-up bonus shares by
capitalising Share Premium of Rs. 2.200 millions and General Reserve of Rs,
192.100 millions.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1023.100 |
1022.800 |
907.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
16961.400 |
16355.500 |
13534.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
17984.500 |
17378.300 |
14441.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3598.700 |
2837.800 |
2537.900 |
|
|
2] Unsecured Loans |
127.300 |
148.200 |
114.700 |
|
|
TOTAL BORROWING |
3726.000 |
2986.000 |
2652.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
21710.500 |
20364.300 |
17094.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14618.800 |
14497.100 |
14569.000 |
|
|
Capital work-in-progress |
535.200 |
194.300 |
107.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
3658.000 |
3658.000 |
2358.000 |
|
|
DEFERREX TAX ASSETS |
164.400 |
50.900 |
278.400 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3273.600
|
2955.000
|
1994.900
|
|
|
Sundry Debtors |
3405.300
|
3326.200
|
3291.500
|
|
|
Cash & Bank Balances |
2871.900
|
1744.100
|
1648.000
|
|
|
Other Current Assets |
71.400
|
8.200
|
150.700
|
|
|
Loans & Advances |
2708.500
|
2588.600
|
1222.000
|
|
Total
Current Assets |
12330.700
|
10622.100
|
8307.100
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
7451.300
|
5572.300
|
3474.400
|
|
|
Other Current Liabilities |
1367.700
|
1738.000
|
3792.700
|
|
|
Provisions |
796.300
|
1367.300
|
1312.200
|
|
Total
Current Liabilities |
9615.300
|
8677.600
|
8579.300
|
|
|
Net Current Assets |
2715.400
|
1944.500
|
(272.200)
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
18.700 |
19.500 |
54.200 |
|
|
|
|
|
|
|
|
TOTAL |
21710.500 |
20364.300 |
17094.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
32101.500 |
27457.300 |
21577.700 |
|
|
|
Other Income |
413.400 |
189.400 |
223.100 |
|
|
|
Income from Investments |
0.000 |
1.000 |
15.400 |
|
|
|
TOTAL (A) |
32514.900 |
27647.700 |
21816.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing, Material and Operating Expenses |
24105.500 |
19518.300 |
15065.600 |
|
|
|
Sales and Administration Expenses |
3384.900 |
2924.000 |
2371.500 |
|
|
|
Personnel Expenses |
3279.200 |
2892.400 |
2384.300 |
|
|
|
Amortization of Misc. Expenditure |
09.400 |
49.300 |
113.100 |
|
|
|
TOTAL (B) |
30779.000 |
25384.000 |
19934.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1735.900 |
2263.700 |
1881.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
255.100 |
117.400 |
472.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1480.800 |
2146.300 |
1409.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
379.700 |
385.400 |
378.400 |
|
|
|
|
|
|
|
|
|
|
Exceptional
Items |
94.900 |
(119.300) |
(79.900) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1006.200 |
1880.200 |
1110.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(194.700) |
504.700 |
213.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1200.900 |
1375.500 |
897.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
60.000 |
68.800 |
22.400 |
|
|
|
Debenture Redemption Reserve |
0.000 |
0.000 |
261.300 |
|
|
|
Proposed Dividend |
158.400 |
162.000 |
90.700 |
|
|
|
Tax on Dividend |
25.700 |
26.900 |
15.400 |
|
|
BALANCE CARRIED
TO THE B/S |
956.800 |
1117.800 |
507.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
2152.800 |
638.100 |
1542.900 |
|
|
|
Other Earnings |
98.900 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
2251.700 |
638.100 |
1542.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
85.700 |
130.700 |
104.000 |
|
|
|
Components & Spare Parts |
294.400 |
85.700 |
213.600 |
|
|
|
Capital Goods |
178.600 |
48.300 |
14.700 |
|
|
TOTAL IMPORTS |
558.700 |
264.700 |
332.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
11.74 |
14.67 |
9.89 |
|
|
|
Diluted |
11.66 |
14.42 |
9.64 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
31.12.2011 |
31.03.2012 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
8297.730 |
7950.740 |
|
Total Expenditure |
|
7963.880 |
7512.760 |
|
PBIDT (Excl OI) |
|
333.850 |
437.980 |
|
Other Income |
|
0.000 |
101.830 |
|
Operating Profit |
|
333.850 |
539.810 |
|
Interest |
|
114.210 |
209.740 |
|
Exceptional Items |
|
(18.380) |
3.360 |
|
PBDT |
|
201.270 |
333.430 |
|
Depreciation |
|
97.320 |
96.240 |
|
Profit Before Tax |
|
103.950 |
237.190 |
|
Tax |
|
(4.700) |
55.910 |
|
Provisions and Contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
108.650 |
181.280 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustment |
|
0.000 |
0.000 |
|
Net Profit |
|
108.650 |
181.280 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2011 |
30.09.2010 |
30.09.2009 |
|
PAT / Total Income |
(%) |
3.69
|
4.97
|
4.11
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.13
|
6.85
|
5.15
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.71
|
7.48
|
4.85
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.11
|
0.08
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.28
|
0.67
|
0.78
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.22
|
0.97
|
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 |
No |
|
Designation of Contact person |
No |
|
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 |
FINANCIAL PERFORMANCE
The Company’s Net
Revenue increased 17.6 per cent to Rs. 32514.900 Millions in 2010-11 from Rs.
27647.700 Millions in 2009-10. The sale of tractors increased 5.5 percent to
63,420 in 2010-11 from 60,086 in 2009-10.
Earnings before Interest,
Depreciation, Amortisation (EBITDA) stood at Rs 1745.300 Millions in 2010-11 as
against Rs. 2313.000 Millions in 2009-10.
Profit Before Tax
(PBT) stood at Rs. 1006.200 Millions in 2010-11 as against 1880.200 Millions in
2009-10 and Profit After Tax (PAT) stood at Rs. 1200.900 Millions as against
Rs. 1375.500 Millions in the previous year. Earnings per share stands at `
11.74 for the current year vis a vis ` 14.67 last year.
SEGMENT PERFORMANCE
The Escorts Agri Machinery
division grew 19.3 per cent to Rs. 29511.800 Millions in 2010-11 from Rs.
24737.900 Millions in 2009-10. The sale of tractors increased by 5.5 percent to
63,420 from 60,086 in the previous year. The EBIT in this division stood at Rs.
1765.600 Millions against Rs. 2233.600 Millions in the last year.
The Escorts Auto
Products division grew 11 per cent to Rs. 1230.400 Millions in 2010-11 from Rs.
1108.900 Millions in 2009-10. The EBIT stood at ` (172.400) Millions against `
(173.300) Millions last year.
The Escorts
Railway Products division registered sales of Rs. 1922.700 Millions against Rs.
1977.600 Millions in the last year. The EBIT stood at Rs.241.500 Millions
against Rs. 228.400 Millions last year. The EBIT margins improved from last
year at 11.5 per cent to 12.6 percent in the current financial year.
COMPANY’S PERFORMANCE
In line with its
consistent focus on Indian agricultural growth, the Company invested
significant (over one year) engineering and product development effort to
launch the Escorts ‘Jai Kisan Series’. This is a path-breaking initiative that
recognises the new market order for varied needs of the Indian farmer, changing
tractor usage for specialised applications and use of modern and heavy-duty
implements and attachments, thereby offering wider options for agricultural,
infrastructure as well as specialised applications for land development
activities.
Promoting the
thought behind this innovation through its slogan ‘Ab kaam jaisa, tractor
waisa’, the new initiative has been launched in the markets of
The Company’s
Railway division has signed an exclusive agreement for the supply of disc brake
systems for railway coaches with the Czech Republic based DAKO-CZ a.s. , a
globaly renowned company in railway braking equipment systems. This partnership
will enable Escorts to offer cutting-edge technology and world-class disc
braking systems for LHB design ‘High Speed Passenger Coaches’ of the Indian
Railways.
Today, the Company
is investing in critical technology-oriented tasks to introduce new products
and provide complete solutions to realise the modernisation plans of Indian
Railways. The agreement with DAKO-CZ will unleash new business streams for
Escorts in the domain of high-end disc braking system. It will give the
organisation an edge over competition, both in terms of quality of products as
well as price.
In the
construction equipment division, the Company has launched various models to
suit customer needs. It has introduced new variants of its Pick-n-Carry cranes
in Rajasthan – HYDRA 1242 (12T capacity crane with 13m reach with option of 3
part standard boom and 3 part slotted boom) and HYDRA 1665 (16T capacity crane
with 19m reach). These models will cater to the rising market demand for
high-end cranes. Keeping the need and requirements of the hiring segment, the
Company also introduced HYDRA 14 (with straight axle).
OUTLOOK
a). Agri machinery
Industry research
projects domestic tractor sales to increase at 8-10 per cent CAGR from 2010-11
to 2015-16 as against 12 per cent CAGR from 2004-05 to 2009-10. The overall
decadal average for tractors has been 6-7 per cent over the last three decades.
The experts estimate this average to be higher going ahead, with reducing
replacement cycles, stable farm income and increased focus of government on
agri and rural development. The exports are also expected to surge by about
40-45 per cent in 2010-11 and record a CAGR of 17-18 per cent by 2014-15,
chiefly on account of increasing demand from the African countries, coupled
with recovery in the
b). Auto suspension
Auto sales
continued to be healthy across the industry notwithstanding the signs of
expected slowdown, rising interest rates, tightening credit, commodity
inflation (translating into higher vehicle prices) and higher fuel prices. Cars
are the only segment, which witnessed weak growth YoY, dragged down by few
large OEMS.
The industry is
positive on the automobile component sector, driven by strong OEM volume growth
(passenger cars, commercial vehicles and 2-wheelers) as well as its significant
capacity expansion plans over the ensuing two years. The auto component
manufacturers would have a higher bargaining/ pricing power, supported by high
replacement demand and superior technology and RandD.
The Company’s Auto
Products Division is well aware of the challenges in the wake of increasing
competition, and is equipped to handle those challenges. They believe that the
following measures that they have undertaken will keep us ready for the changes
going forward:
Rejuvenating our
brand
Escorts’ brand
rejuvenation is going to be achieved through business vertical of consumable
product division, enabling the flag bearers in the field to enter into any auto
shop and sell at least one product to every shop owner.
Advertising and
internet marketing efforts
Traditionally,
this market is dominated by personal selling mode of promotion. Advertising and
publicity creates very low tremors, whenever applied by top end brands at consumption
levels. The scenario will encounter slow change in favour of internet selling
through cataloguing. The Indian version of web portal Tecdoc (ESCOMP) will be
launched by Escorts and is expected to play a dominant role in 2014-15.
Supply chain
revamping
The supply chains
are being designed to meet GST loaded One India Market with Delivery time of
48-72-96 hours at retail outlet from the warehouse on hub and spoke network.
Adoption of latest
technology
Inventory software
will be in place for better demand forecasting models with inventory controls
and global standard warehousing facility to develop an expertise, which forces
incoming global giants to opt for Escorts facility for selling and distribution
network.
c). Railway equipment
The Company is one
of the key suppliers to the Indian Railways for products including brake
systems, couplers and shock absorbers, among others. The wide product range,
combined with in-house RandD capabilities will enable the Company to capture
the immense opportunity from the Indian Railways capital outlay over the next
decade.
The majority of
Railway components division is aimed at Indian Railways, with more than 90 per
cent of the total turnover coming from the Indian Railways supplies. This
division is into three aspects of Indian railways --- safety, comfort and
environment. The bulk of our supplies are into safety aspect like brake
systems, couplers and brake blocks. Quality is the main deciding factor in this
segment and Indian Railways is never known for any compromise on quality, when
it comes to safety segment. Thus assuring quality and at the same time ensuring
our brand association with quality will be marketing formula. Indian Railways
has always been a quality-focused customer and because of the same reason the
main priority of Railway Division’s marketing plan is to associate quality with
Escorts brand image.
d). Construction equipment
Following a surge
in the infrastructure industry, the construction equipment market is expected
to grow as there is a direct link between construction equipment and
infrastructure development. Government of
The construction
equipment market will foresee a significant demand from sectors, such as power,
road, railways, irrigation, port, airport and real estate. A majority of this
demand has been created due to the initiative and investment made by the
government.
Some of the awards
and accolades won by the Company are as follows:
a). Greentech
Environment Excellence Award-2011:
The Company is
pleased to announce that ESCORTS LIMITED – Knowledge Management Centre (KMC) has
bagged the Gold Category award in Engineering Sector instituted by Greentech
Foundation,
b). Escorts Agri
Machinery (EAM) wins accolades at INSSAN:
Employees of EAM
participated in various competitions organised by the Indian National
Suggestion Scheme Association New Delhi (INSSAN) at ESSEX farms, Convention
Centre,
c). Escorts won
Flower Festival Awards 2011 organised by Haryana Urban Development Authority.
d). Recognition of
Escorts RandD Centre renewed for next five years i.e. up to 31st March 2016
based on RandD Projects under taken during last three years.
e). Y our Company
was the First Winner in Solid Model Contest 2011- this award is about the focus
on 3D imaging and predictive analysis to reduce the number of physical
prototype to save time, cost and energy consumption.
f). Escorts Limited
receives prestigious Haryana State Safety Awards.
MANAGEMENT DISCUSSION AND ANALYSIS
Key Economic
Trends
Against the
backdrop of a benign macro-economic environment in
The agricultural
sector has grown 7.5 per cent in the quarter ended March 2011 vis-à-vis a
growth of 9.9 per cent registered in the previous quarter, driven primarily by
bumper Rabi harvest. The agricultural sector grew by 1.1 per cent during the
same period of last year. The quarter ending June 2011 grew 3.9 per cent
against 2.4 per 2011-12 cropping season. The total foodgrain production is estimated
at 123.9 MT as compared to 120.2 MT in 2010-11, a 3.1 per cent increase.
Domestic tractor
sales grew by about 20 per cent in 2010-11. The robust growth rate can be
attributed to normal monsoons in most states, strong farm output with high MSPs
(Minimum Support Prices), increase in farm incomes and steady availability of
finance. In addition, schemes such as NREGA (National Rural Employment
Guarantee Act) led to a shortage of agricultural labour, encouraging tractor
use. Besides, government initiatives like Bharat Nirman helped in boosting
rural infrastructure, thereby encouraging non-farm tractor use.
Sustained income
and relatively low penetration led to a strong growth in the southern and
western regions. In the northern region, the growth was subdued due to
floodlike situations in Haryana and
The MSPs for
2011-12 are estimated to remain at 2010-11 levels. Crop output is expected to
be higher during the year, aided by normal rainfall, increased availability of
finance, coupled with favourable government initiatives in the form of higher
agricultural credit. This would lead to an increase in farm income (value of
crop output) and drive sector’s growth. Escalating demand and government policy
are favourable factors that will drive tractor demand.
According to
CRISIL estimates, the domestic tractor sales are expected to grow by about
11-14 per cent in 2011-12, owing to an increase in farm income, improving MSPs
and higher farm output. Credit availability will also be stable with NBFCs
increasing focus on tractor financing. The key drivers of rural farm incomes
are estimated to grow by 16 percent in 2010-11, which will lead to another year
of stable growth, further aiding tractor sales. Government initiatives towards
rural development and usage patterns of farmers represent the major drivers
that influence rural demand.
Growing need for
farm power per hectare and increasing substitution of manual and animal labour
for various farming operations continue to drive the structural growth for
tractor sales. Increasing finance penetration with more affordable finance
rates have enabled a larger number of farmers to own tractors. Concurrently,
the economics of tractor operation improved owing to increasing custom hiring
for agricultural and other purposes, including transit of farm produce, and
transport of people and materials for road construction and other
infrastructure projects. However, a sharp growth rate is unlikely to continue
because of the narrowing gap between current and potential penetration levels
in some states. Besides, problems or perceptions related to credit quality or
inadequate irrigation would continue to constrain growth in less penetrated
states.
Region-wise tractor sales for the industry
The Northern
region forms the largest Indian market. It comprises Punjab, Haryana, UP and
INDUSTRY STRUCTURE
Market Size
The automotive
component industry’s output in 2010-11 increased 36 per cent over 2009-10 to
USD 30 billion.
The major Indian
auto parts makers are on track to report a strong growth, on the back of robust
after-sales demand and growing exports. The revenue growth rate of auto
ancillary companies is expected to be in line with auto OEMs. In the first half
of the fiscal, production by all OEMs in the auto industry had demonstrated
positive growth, compared to the corresponding period of last year, resulting
in corresponding growth in customer demand.
Suspension Industry
Global Automotive
Industry Trends The global auto component demand is expected to grow from
Rs.660.000 Millions to Rs. 1010.000 Millions at a CAGR of 4 per cent during the
period 2009-20.
Western Europe and
Within the auto
component industry, body & structural, engine & exhaust and electronics
& electrical systems are the largest component segments, each accounting
for ~20 per cent of the total market. Suspension and braking segment accounts
for ~11 per cent of the total auto component demand and is expected to grow
from Rs. 70.000 Millions to Rs.110.000 Millions during the period 2009-20.
Auto Suspension Industry
Indian Auto
Suspension market (including railway suspension) is worth ` 5,300 crore (in
year 2011). The OEM segment accounts for approx 90 per cent of this market and
rest being replacement industry. Two wheelers form the largest segment and
account for 60 per cent of the total suspension market followed by passenger
vehicles (35 per cent).
The Auto
Suspension market is growing at a CAGR of 13 per cent, in line with the strong
growth in vehicle production. This large and fast growing industry is
fragmented with a significant number of small and medium sized companies
serving it. Several players also have multi-site operations due to factors such
as customer needs, proliferation of tax exempted zones and varying labor laws
and policies across states. The top five players (Munjal Showa, Gabriel,
Endurance, Tenneco and Escorts) account for approx 58 per cent of the total
market while around 100 small and regional players hold 22 per cent market
share.
Indian Railways:
Upcoming modernisation and expansion Indian Railways in its roadmap, Vision
2020, outlined its growth strategy, wherein it proposes a ` 14,000 bn
investment over the next 10 years towards modernization and network expansion.
Indian Railways is also expected to increase its capacity by adding additional
lines as well as doubling existing lines over the next decade. It plans to lay
2,500 km of new lines and double or multiple of around 30,000 km rail route by
2020.
The major
priorities of the Indian Railways under the XI Five Year Plan comprise:
1. Building
capacity through network augmentation by constructing new lines including
dedicated freight corridors, gauge conversion and doubling of congested routes.
2. Enhancing
capacities on high density network and other line capacity improvement works
and traffic facilities.
3. Augmenting
capacity for rolling stock production and increased procurement of rolling
stock including wagons, EMUs, among others
4. Technological
upgradation and modernisation of fixed infrastructure and rolling stock,
upgradation of routes for heavy axle load movement.
5. Modernisation
of freight and passenger terminals, developing world class stations.
- Increasing investment in infrastructure
development will lead to the growth in the construction market
- Construction industry in
- The Government of India has allocated `
2.14tn (2011-12) to infrastructure growth, indicating strong commitment to
the development of infrastructure in
- With the development in infrastructure,
construction equipment market is expected to witness a rapid growth. It is
expected that with the implementation of large projects, demand for
specialised construction equipment will increase, which includes crawler
excavators, wheeled loaders, crawler dozers and compaction equipment.
- Development of infrastructure will be
supported by the Indian government. Recently, it has been forwarded that
the government will invest ` 46 tn in infrastructure by 2020. Bulk of this
investment will be for construction equipment in areas, such as roads,
irrigation and mining.
LEADERSHIP TEAM
Mr. Rajan Nanda, Chairman and Managing Director,
An alumnus of
Mr. Nikhil Nanda Joint
Managing Director
Mr. Nikhil Nanda,
Joint Managing Director, alumnus of
Dr. M. G. K. Menon, Director,
Dr. M. G. K.
Menon, Director, recipient of Padma Shri, Padma Bhushan and Padma Vibhushan, is
a distinguished scientist of international repute. A former minister, Mr Menon
has also served as a Member of the Planning Commission, scientific adviser to
the Prime Minister, secretary to various departments of the Government of India
for 12 years, President of the Indian Statistical Institute, a member and
Chairman of various bodies in
Dr. S. A. Dave, Director
Dr. S. A. Dave,
Director, is an economist of international repute. He has a rich experience
across multiple facets of financial and capital markets. Former Executive
Director of IDBI, former Chairman of UTI and the first Chairman of SEBI, Mr Dave
is acting Chairman of the Centre for Monitoring Indian Economy, Mumbai and is
also the Director of HDFC Limited, and many other reputed companies.
Dr. P. S. Pritam
Dr. P. S. Pritam,
Director, has held important managerial positions in mammoth financial
institutions for over four decades with diverse functional expertise — Legal
and Mortgage, Finance and Accounts, Insurance Underwriting and Claims and all
aspects of Client Servicing. He retired as the Executive Director (Marketing
and International Operations) of LIC India, worked as the National Head (Sales
and Marketing) for Allianz Bajaj Life Insurance and served on the Board of
Bihar State Financial Corporation, Gujarat State Financial Corporation, Bihar
State Housing Federation and various other companies.
Mr. S. C. Bhargava
Mr. S. C.
Bhargava, Director, is an eminent personality with a rich experience in all
facets of Finance and Insurance. He possesses extensive knowledge in the field
of securities market, treasury operations and investments, among others. Mr.
Bhargava, Senior Fellow member of the
Mr. Hardeep Singh, Director
Mr. Hardeep Singh,
Director, is a graduate in Economics from
Mr. G B Mathur, Executive VP, Law and Company
Secretary
Mr. G B Mathur,
Executive VP, Law and Company Secretary, is an ACS and LLB by profession. He
has more than three decades of rich experience in the field of Corporate Law.
He is part of all the major restructuring and all other important corporate
decisions taken by the company from time to time. Before joining the Escorts
Group he was working with Chambal Fertilisers and Chemicals Limited.
Mr. O K Balraj, Executive VP, Group Chief Financial
Officer
Mr. O K Balraj,
Executive VP, Group Chief Financial Officer, possesses an advanced
degree/diploma from the
Mr. Ishan Mehta, Executive VP, HR and ER
Mr. Ishan Mehta,
Executive VP, HR and ER, alumnus of
Xavier’s Labour Research Institute
(XLRI), possesses over 31 years of
experience in HR and ER strategies, organisational
effectiveness and workplace improvement.
He previously worked with DCM
Limited, Ballarpur industries, Eicher Group
and East India Hotels (EIH).
Mr. S Sridhar, CEO
Mr. S Sridhar,
CEO, Escorts Agri Machinery, agriculture engineer, possesses rich experience in
engineering, automotive industry and manufacturing. Mr. Sridhar started his
career at Mahindra and Mahindra Limited’s tractor division business and
acquired vast experience in TVS – Suzuki. He was the former CEO (2 wheeler) and
then the President (Motorcycle Division) of Bajaj Auto Limited.
Mr. Kanwal Kishore Vij, ED and CEO
Escorts
Construction Equipment Limited, mechanical engineer, has completed advanced
courses in Marketing and Management from Harvard, IIM (A) and
Mr. Vikram Singhal, ED and Business Head
Mr. Vikram
Singhal, ED and Business Head, Escorts Railways Products, is a mechanical
engineer with over three decades of rich and varied experience in business
re-engineering, sales and marketing, international business, manufacturing,
turnaround, conceptualization and execution of strategic initiatives. He has
previously worked with Alfa Laval (Swedish), Danfoss (Danish), Amtek Auto and
the Eicher Group.
Mr. Lalit K Phawa, CEO
Mr. Lalit K Phawa,
CEO, Escorts Auto Products, BE
(Mech), MBA (Symbiosis Pune), possesses
over 30 years of experience of which
16 years he has shouldered different
responsibilities as CEO and MD of engineering,
manufacturing and automation businesses.
He has vast experience in identifying
and executing M & As, JVs and business
alliances as a part of growth and turn
around strategies for midsized Indian and
global companies. He has worked with Jervis
B Webb, American Axle Inc and the Tata
Group, where he turned-around a very
stressed company and strategised and managed
rapid growth of others.
UNAUDITED
FINANCIAL RESULTS [STANDALONE] FOR THE SECOND AND SIX MONTHS ENDED 31.03.2012
Rs. in Millions
|
Sr. No. |
Particular |
Quarter Ended |
Six Months Ended |
|
|
|
|
31.03.2012 (Unaudited) |
31.12.2011 (Unaudited) |
31.03.2012 (Unaudited) |
|
1. |
Income from
Operations |
|
|
|
|
|
Net Sales/Income from Operations |
7912.301 |
8230.786 |
16143.087 |
|
|
Other
operating income |
38.440 |
23.718 |
62.158 |
|
|
Total
Income from Operations (NET) |
7950.741 |
8254.504 |
16205.245 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Consumption
of raw materials |
5572.268 |
5816.986 |
11389.254 |
|
|
Purchase
of traded goods |
156.565 |
426.038 |
582.603 |
|
|
Changes
in inventories of finished goods, work in progress and stock-in-trade |
(134.175) |
(179.510) |
(313.685) |
|
|
Employee
cost |
920.535 |
926.690 |
1847.225 |
|
|
Depreciation
/ Amortisation |
96.238 |
95.041 |
191.279 |
|
|
Other
expenditure |
997.566 |
998.765 |
1996.331 |
|
|
Total expenditure |
7608.997 |
8084.010 |
15693.007 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and Exceptional
Items (1-2) |
341.744 |
170.494 |
512.238 |
|
|
|
|
|
|
|
4. |
Other Income |
101.830 |
114.804 |
216.634 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
443.574 |
285.298 |
728.872 |
|
|
|
|
|
|
|
6. |
Interest |
209.743 |
190.271 |
400.014 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
233.831 |
95.027 |
328.858 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
(3.359) |
(8.921) |
(12.280) |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
237.190 |
103.948 |
341.138 |
|
|
|
|
|
|
|
10. |
Tax Expense |
55.908 |
(4.700) |
51.208 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
181.282 |
108.648 |
289.930 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
181.282 |
108.648 |
289.930 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
1056.180 |
1056.180 |
1056.180 |
|
|
Less: Amount recoverable from Exports Employee Benefit and
Welfare Fund |
33.136 |
33.136 |
33.136 |
|
|
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
1023.044 |
1023.044 |
1023.044 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
1.77 |
1.06 |
2.83 |
|
|
b) Basic and diluted EPS after extraordinary items |
1.77 |
1.06 |
2.83 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
76391725 |
76392725 |
76391725 |
|
|
- Percentage of Shareholding |
72.33 |
72.33 |
72.33 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
NIL |
5600000 |
NIL |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
NIL |
19.16 |
NIL |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
NIL |
5.30 |
NIL |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
29226311 |
23625311 |
29226311 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00 |
80.84 |
100.00 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
27.67 |
22.37 |
27.67 |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in millions)
|
Particulars |
As on 31.03.2012 |
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
1023.044 |
|
2] Reserves & Surplus |
17208.941 |
|
Sub- Total
Shareholders Funds |
18231.985 |
|
|
|
|
2 Non-current Liabilities |
|
|
(a) Long-term borrowings |
1940.765 |
|
(c) Other long-term liabilities |
70.000 |
|
(d) Long-term provisions |
121.313 |
|
Sub-total-
Non-current Liabilities |
2132.078 |
|
|
|
|
3 Current Liabilities |
|
|
(a)Short-term borrowings |
1629.385 |
|
(b) Trade payables |
6258.618 |
|
(c) Other current liabilities |
1691.807 |
|
(d) Short-term provisions |
1903.306 |
|
Sub-total-Current Liabilities |
11483.116 |
|
TOTAL- EQUITY AND LAIBILITIES |
31847.179 |
|
|
|
|
ASSETS |
|
|
1 Non-Current
assets |
|
|
(a) Fixed Assets |
15329.464 |
|
(b) Non current Investments |
3715.581 |
|
(c) Deferred tax Assets (Net) |
202.610 |
|
(d) Long-term Loans and advances |
499.784 |
|
(e) Other non-current assets |
1002.101 |
|
Sub-total- Non Current assets |
20749.540 |
|
|
|
|
2 Current Assets |
|
|
(a) Current Investments |
|
|
(a) Inventories |
4007.541 |
|
(b) Trade receivables |
3221.170 |
|
(c) Cash and Cash equivalents |
1211.620 |
|
(d) Short-term loans and advances |
2633.728 |
|
(e) Other current assets |
23.580 |
|
Sub-total-
Current assets |
11097.639 |
|
TOTAL ASSETS |
31847.179 |
SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
Rs.
in Millions
|
Sl. No. |
|
Particulars |
Quarter Ended |
Six Months Ended |
|
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
a) Agri
Machinery Products |
7184.784 |
7726.178 |
14910.962 |
|
|
|
b) Auto Ancillary Products |
400.333 |
310.910 |
711.243 |
|
|
|
c) Railway Equipments |
404.382 |
303.376 |
707.758 |
|
|
|
d) Unallocable |
17.583 |
12.517 |
30.100 |
|
|
|
Total |
8007.082 |
8352.981 |
16360.063 |
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
59.827 |
57.458 |
117.285 |
|
|
|
Net Sales / Income
from Operation |
7947.255 |
8295.523 |
16242.778 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
a) Agri
Machinery Products |
550.408 |
466.258 |
1016.666 |
|
|
|
b) Auto Ancillary Products |
(28.691) |
(54.442) |
(83.133) |
|
|
|
c) Railway Equipments |
28.402 |
(19.950) |
8.452 |
|
|
|
Total |
550.119 |
391.866 |
941.985 |
|
|
|
Less :Interest |
209.743 |
190.271 |
400.014 |
|
|
|
Less: Exceptional Items |
(3.359) |
(8.921) |
(12.280) |
|
|
|
Less : Other Unallocable Expenses and Extra Ordinary Items |
106.545 |
106.568 |
213.113 |
|
|
|
Net Profit (+) /
Loss(-) before Tax |
237.190 |
103.948 |
341.138 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed (Segment Assets - Segment
Liabilities) |
|
|
|
|
|
|
a) Agri
Machinery Products |
9411.413 |
9206.841 |
9411.413 |
|
|
|
b) Auto Ancillary Products |
579.106 |
556.856 |
579.106 |
|
|
|
c) Railway Equipments |
909.132 |
865.664 |
909.132 |
|
|
|
d) Unallocable |
9464.412 |
9707.227 |
9464.412 |
|
|
|
Total |
20364.063 |
20336.588 |
20364.063 |
NOTES:
- The above results have been subjected
to limited review by the statutory auditors. After review by the Audit
Committee, these results have been approved and taken on record by the Financial
Results Committees of the board of Directors at its meeting held on 10th
May 2012.
- During the quarter the company has made additional investments of Rs. 0.576 Millions (PLN 3.5 Millions) in Farmatrac Tractors Europe Sp. Z.O.O. Polland, wholly owned Subsidiary of the company to enhance its investments is Rs. 0.835 Millions (PLN 9.5 Millions).
- The
Board of Directors in their meeting held on 14th February had
approved the Scheme of Arrangement and Amalgamation of Escorts
Construction Equipments Limited, and Escotrac Finance and Investments
Private Limited and Escorts Finance Investments and Leasing Private
Limited with Escorts Limited and their respective shareholders and
creditors. (here in after referred as the Scheme) the scheme has been
filed in the High Court of Punjab and Haryana at
- The current period figures in this statement have been reported in the amended format as per the SEBI circular dated 16th April 2012. Accordingly previous period/ year figures have also been regrouped/ reclassified to confirm with the current period presentation.
FIXED ASSETS:
- Land
- Buildings
- Plant and
Machinery
- Vehicles
- Furniture and
Fixtures
- Leasehold
Improvements
- IT Equipments
- Technical
Know-how
- Software
Development
CONTINGENT
LIABILITIES:
|
|
Rs.
In Millions ) 30.09.2011 |
Rs.
In Millions ) 30.09.2010 |
|
I) Estimated amounts of contracts remaining to be executed on capital
account and not provided for |
619.100 |
526.100 |
|
II) * Claims not acknowledged
as debts |
05.100 |
5.200 |
|
III) There is a
Contingent liability of : |
|
|
|
* (a) Excise duty/Customs duty demands not acknowledged as liability |
89.800 |
465.700 |
|
* (b) ESI additional demand not acknowledged as liability |
41.400 |
41.400 |
|
* (c) Sales Tax demand not acknowledged as liability |
67.300 |
97.500 |
|
* (d) Pending Legal Cases |
|
|
|
- Personnel |
32.100 |
41.100 |
|
- Others |
798.700 |
300.400 |
|
* (e) Demand raised
by Faridabad Municipal Corporation for external development charges where the
Company is in litigation |
23.800 |
23.800 |
|
(f) Guarantees
given to banks under Channel Finance Program |
281.800 |
425.200 |
|
(g) Guarantees executed in favour of Others |
95.900 |
83.300 |
|
(h) Demand
raised by Income Tax Department, disputed by the Company and pending in
appeal |
1305.200 |
144.400 |
NOTE:
* The amounts indicated
as contingent liability or claims against the Company only reflect the basic
value. Interest, penalty if any or legal costs, being indeterminable are not
considered.
IV) During the
period 2004-05, Escorts Limited (EL) sold its entire share holding in Escorts
Heart Institute and Research Center Limited (EHIRCL) vide Sale Purchase
Agreement dated 25th September, 2005. There were certain pending disputed
Income Tax Demands of Rs. 523.300 Millions and interest thereon amounting to
Rs. 291.600 Millions on EHIRCL and in terms of the agreement EL has undertaken
to indemnify the purchaser to the extent of Rs.650.000 Millions plus one-third
of any amount in excess of Rs.650.000 Millions, in case the appeal is decided
against EHIRCL. In view of the above, in terms of Share Purchase Agreement an
amount of Rs. 649.900 Millions has been kept in an Escrow Account as fixed
deposit, which after renewal amounts to Rs. 828.000 Millions as on 30th
September 2011.
AS PER WEBSITE DETAILS
PROFILE
The Escorts Group, is among
Having pioneered farm mechanization in the country, Escorts has played a
pivotal role in the agricultural growth of
A leading material handling and construction equipment manufacturer, they
manufacture and market a diverse range of equipment like cranes, loaders,
vibratory rollers and forklifts. Subject today is the world's largest Pick 'n'
Carry Hydraulic Mobile Crane manufacturer.
Subject has been a major player in the railway equipment business in
In the auto components segment, Subject is a leading manufacturer of auto
suspension products including shock absorbers and telescopic front forks. Over
the years, with continuous development and improvement in manufacturing
technology and design, new reliable products have been introduced.
The Escort Group has also been operating in the ITES and financial
services sectors.
Throughout the evolution of Subject, technology has always been its greatest
ally for growth. In the over six decades of their inception, Subject has been
much more than just being one of India's largest engineering companies. It has
been a harbinger of new technology, a prime mover on the industrial front, at
every stage introducing products and technologies that helped take the country
forward in key growth areas. Over a million tractors and over 16,000
construction and material handling equipment that have rolled out from the
facilities of subject , complemented by a highly satisfied customer
base, are testimony to the manufacturing excellence of subject. Following
the globally accepted best manufacturing practices with relentless focus on
research and development, subject is today in the league of premier corporate
entities in
Technological and business collaboration with world leaders over the years,
Globally competitive indigenous engineering capabilities, over 1600 sales and
service outlets and footprints in over 40 countries have been instrumental in
making Escorts the Indian multinational. At a time when the world is looking at
India as an outsourcing destination, Subject
is rightly placed to be the dependable outsourcing partner of world's
leading engineering corporations looking at outsourcing manufacture of engines,
transmissions, gears, hydraulics, implements and attachments to tractors, and
shock absorbers for heavy trailers and armored tanks.
In today's Global Market Place, Subject is fast on the path of an internal
transformation, which will help it to be a key driver of manufacturing
excellence in the global arena. For this they are going beyond just adhering to
prevailing norms, they are setting their own standards and relentlessly
pursuing them to achieve their desired benchmarks of excellence.
HISTORY
The genesis of
Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda and Mr. Yudi
Nanda, launched a small agency house, Escorts Agents Limited in
1944 - Launch
of Escorts (Agents) Limited
1948 - Pioneered
farm mechanization in the country by launching Escorts Agricultural Machines
Limited, with a franchise from the
1949 -
Franchise of Massey Ferguson tractors for northern
1951 - Escorts
established
1953 -Escorts
(Agents) Limited and Escorts (Agriculture and Machines) Limited merged to form
Escorts Agents Private Limited
1954 - 1st
industrial venture of Escorts to manufacture piston rings in collaboration with
Goetze of Germany, in an era when joint ventures of Indian firms with foreign
companies were virtually unheard of.
1958 - Started
importing Massey Ferguson tractors from
1959 -
Collaboration with Mahle of Germany to manufacture pistons. Soon, Escorts
became the largest producer of piston assemblies in
1960 - Set up
of Escorts Limited
1961- Setting
up of manufacturing base at
1969 - Escorts
Tractors Limited was born. A technical and financial joint venture with the
global giant Ford Motor Company,
Escorts Institute of Farm Mechanisation
(EIFM) established at
Escorts Employees Ancillaries
Limited. (EEAL), a unique venture in industrial democracy comes into being.
1971 - 1st February,
the first tractor FORD 3000 rolled out of the factory.
Escorts diversifies and starts
manufacturing construction equipment.
1974 - Crossing
national boundaries, Escorts exports for the first time. After winning a global
tender, 400 tractors were exported to
1976 - FORD
3600, an advancement in Farm Mechanisation launched. Trial production of
in-plant manufacturing of engine parts (Block & Head).
1977 - Escorts
enters the world of self-developed technology by setting up its first
independent
1979 -
Collaboration with JCB Excavators Limited,
1980 - Foray
into healthcare,
1983 - Escorts
Tractors Limited (ETL) established a state-of-the-art research and development
centre to spearhead newer breakthroughs in Farm Mechanisation and to maintain
industry leadership. Line concept introduced for engine block machining. 11,000
ton floating dry-dock Escorts I launched.
1984 - JV
Escorts - Yamaha to manufacture motorcycles
1984 - Signing
of agreement with the Japanese bike giant Yamaha to manufacture motorcycles
with Yamaha technology. Collaboration with Jeumont Schneider of
1985 - Escorts
Tractors Limited (ETL) offered its first Bonus Issue (1:1).
1988 - Escorts
Heart Institute and Research Centre (EHIRC), a world class cardiac care
facility launched in
1989 - Joint
Venture with Claas of Germany to manufacture harvester combines.
1990-91 - First
Public Issue in February 1991, over-subscribed four times. Shares listed on
1993 - FORD
3620 tractor launched.
1996 -
Disengagement of joint venture collaboration with New Holland and launch of
FARMTRAC Tractor.
1997 - Joint
Venture with Carraro of Italy for manufacturing and marketing of transmission
and axles.
Joint Venture with First Pacific Company of
1998 -
POWERTRAC series of tractors launched.
MoU was signed with Long Manufacturing Company,
1999 - MoU for
Joint Venture with a Polish Company POL-MOT was signed for assembly,
manufacturing and marketing of Farm Machinery.
2004 - Divested
Escotel Mobile Telecommunications to Idea Cellular
TS16949 certification for Agri Machinery Group.
2005 – Divested
Escorts Heart Institute and Research Centre (EHIRC) to Fortis Healthcare.
2006 - Divested
in Carraro India Limited
PRESS REALESE:
ESCORTS SECOND QUARTER NET PROFIT AT Rs. 181.000 MILLIONS
Second Quarter operating income at 7950.000 Millions
EBIDTA at 438.000 Millions, up 65 per cent on
sequential basis
Escorts Limited today reported a Net Profit of
Rs.181.000 Millions for the second quarter of the 2011-12 financial year,
ending March 31, 2012. Net profit stood at Rs.181.000 Millions as against
109.000 Millions in the previous quarter. Escorts Limited follows an
October-September fiscal year and the reported quarter is the second quarter of
fiscal 2011-12.
While the company increased its market share for the
quarter at 11.9 per cent, sales dipped by 3.9 per cent on a sequential basis.
The tractor industry has continued to slide in the first four months of calendar
2012. Despite the constrained market situation, Escorts improved its margins on
the back of reduced expenditure and favourable realizations from customers in
the period November 2011 to April 2012. EBIDTA for the quarter stood at 438.000
Millions as compared to 265.500 Millions in the preceding quarter, a gain of 65
per cent. The Agri Machinery division recorded sales of 7950.000 Millions in
the quarter. The Auto Parts Division and the Railway Equipment Division also
improved their sequential performance.
Speaking on the results, Chairman and Managing
Director Mr. Rajan Nanda said,
"Despite a profitable quarter and growth over the
immediate two preceding quarters, the industry environment is far from healthy
with tractor sales for the industry down between 2 per cent and 9 per cent over
the past four months. These have had an obvious impact on our performance both
on the topline and the bottomline. However, there are some important positives
to take away from the last quarter: Escorts grew its tractor market share, the
Auto and Railways divisions performed better; they managed to hold down costs
and they increased our profitability over the previous two quarters. The second
half of the year is traditionally better for the industry and they are expanding
our reach and product portfolio to enter new markets and new market segments.
They are also looking forward to the completion of our merger process within
the financial year which would change the dynamics of the Escorts Group for its
shareholders, customers and associates."
According to Mr. Nikhil
Nanda, Joint Managing Director, "The Company
is today rolling out in the market a lot of what they had planned over the
years. Escorts today is focused on building profitability by taking a higher
share of the top end of the tractors market by launching higher HP tractors.
Further, we are creating significant presence in the South while shoring up our
portfolio in the North and West. We see the current phase as one of investment
and expansion and we believe that we shall reap the rewards on the upturn of
the market as the industry continues to be optimistic about an 8 per cent
annual growth."
The reviewed accounts of the second quarter of
2011-12, ending March 31, 2012, has been approved by the Board of Escorts
Limited.
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. 56.99 |
|
|
1 |
Rs. 88.97 |
|
Euro |
1 |
Rs. 71.57 |
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 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.