MIRA
INFORM REPORT
|
Report Date : |
29.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
BATLIBOI LIMITED |
|
|
|
|
Registered
Office : |
Bharat House, 5th Floor, 104, |
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|
|
Country : |
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|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
06.12.1941 |
|
|
|
|
Com. Reg. No.: |
11-003494 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.191.213
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L52320MH1941PLCC003494 |
|
|
|
|
IEC No.: |
0388097167 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMBI2649A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB44082 |
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|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer and Exporter of Machine Tools, Air Conditioning Machines
and parts thereof. |
|
|
|
|
No. of Employees
: |
594 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2277000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
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|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established
company having satisfactory track. Trade relations are reported as fair.
Business is active. Payments are reported to be usually correct 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/ Corporate Office/ International Division : |
Bharat House, 5th Floor, 104, |
|
Tel. No.: |
91-22-66378200 |
|
Fax No.: |
91-22-22644430/ 22675601 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1: |
P.O. Fateh Nagar, |
|
Tel No.: |
91-261-2890551/ 2890435 |
|
Fax No.: |
91-261-2890832 |
|
E-Mail : |
|
|
Location : |
Owned |
|
|
|
|
Factory 2: |
Plot No.24, III Main, Veerasandra Industrial Area, |
|
Tel No.: |
91-80-27833216/ 27834203 |
|
Fax No.: |
91-80-27833218 |
|
E-Mail : |
|
|
|
|
|
Overseas office : |
Mukarovska 26, 100 00 |
|
Tel No.: |
+420 777272222 |
|
E-Mail : |
|
|
|
|
|
Sales and
Service Offices : |
Located at: v
v
v
v
Kolkata v
v
v
v
Pune v
v
v
v
v
v
Chennai v
Tirupur v
Trichy v
v
|
|
|
|
|
Tech Centre : |
Located at: v
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Pratap Bhogilal |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Nirmal Bhogilal |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/ Age : |
61 Years |
|
Recognition or
awards : |
B. Sc. (Engg), Chemical Engg ( Committee Member – CII National Council |
|
|
|
|
Name : |
Mr. Vijay R. Kirloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Subodh Bhargava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. E.A. Kshirsagar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ameet Hariani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ulrich Duden |
|
Designation : |
Director |
|
Date of Appointment : |
28.07.2007 |
|
|
|
|
Name : |
Mr. George Verghese |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Corporate Management : |
|
|
Name : |
Mr. Nirmal Bogilal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Daniel Vaz |
|
Designation : |
Chief Operating Officer Textile Air Engineering Group |
|
|
|
|
Name : |
Mr. Edwyn Rodrigues |
|
Designation : |
Chief Executive Officer Textile Machinery Group |
|
|
|
|
Name : |
Mr. Pradeep Pradhan |
|
Designation : |
Chief Executive Officer Air Conditioning and Refrigeration Group |
|
|
|
|
Name : |
Mr. Sanjiv Joshi |
|
Designation : |
Chief Executive Officer Environmental Engineering Group |
|
|
|
|
Name : |
Mr. Vineet Goel |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Gaurang Shah |
|
Designation : |
Chief Corporate Counsel and Company Secretary |
|
|
|
|
Name : |
Mr. Ashok Joshi |
|
Designation : |
Chief Human Resource Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
21,984,490 |
76.65 |
|
|
1,459,000 |
5.09 |
|
|
23,443,490 |
81.73 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
23,443,490 |
81.73 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
900 |
- |
|
|
350 |
- |
|
|
600 |
- |
|
|
1,850 |
0.01 |
|
|
|
|
|
|
722,633 |
2.52 |
|
|
|
|
|
|
3,187,836 |
11.11 |
|
|
404,171 |
1.41 |
|
|
922,570 |
3.22 |
|
|
75,600 |
0.26 |
|
|
846,970 |
2.95 |
|
|
5,237,210 |
18.26 |
|
Total Public shareholding (B) |
5,239,060 |
18.27 |
|
Total (A)+(B) |
28,682,550 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
28,682,550 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Machine Tools, Air Conditioning Machines
and parts thereof. |
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||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Capacity* |
Production** |
|
|
Licensed |
Installed |
|
||
|
a) Machine Tools |
Nos. |
634 |
634 |
536@@ |
|
b) Installations for Humidification and Air Control and Compressors |
Nos. |
450 |
450 |
**3750 |
|
c) Exhaust Fans and Similar Duct Works |
Nos. |
600 |
600 |
1334 |
|
d) Water Pollution Control Installations |
Nos. |
50 |
**** |
- |
|
e) Equipments for Air Pollution Control |
Nos. |
640 |
**** |
- |
|
f) Files |
Doz. |
90000 |
**** |
- |
|
g) Tool Bits |
Doz. |
10000 |
10000 |
- |
|
h) C.I. and Alloy Castings |
M.T. |
5400 |
3600 (Double Shift) |
1714 |
|
i) S G Iron Castings |
M.T. |
*** |
*** |
- |
|
j) Aluminum Castings |
M.T. |
*** |
*** |
16@ |
@ Includes for captive consumption as under:
|
|
Unit |
2010-11 |
|
|
|
Qty. |
|
C.I. Castings |
M.T. |
1695 |
|
Aluminium Castings |
M.T. |
16 |
|
S.G. Iron Casting |
M.T. |
NIL |
|
Hmd and A/ctr and Comprs |
Nos. |
NIL |
* Capacity Figures
are on annual basis
** Includes
production of parts of equipments. Nos. 3750; and Production of equipments 1334
Nos.
@@ Includes SPM
production
*** Spare capacity
available at Udhana for production of C.I.Castings was utilized for the
production of items under i and j above.
**** Since plant was sold, disclosure is no more required.
GENERAL INFORMATION
|
No. of Employees : |
594 (Approximately) |
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Bankers : |
v
Bank of v
Punjab National Bank , PNB House v
Canara Bank v
Royal Bank of v
ABN Amro Bank, v
IndusInd
Bank Limited, Nariman Point v
Barclays Bank PLC, Worli v
The Shamrao Vithal Co-operative Bank Limited |
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Facilities : |
Borrowings and Security: a. Security for Bank
Borrowings: i. Working
Capital Borrowings from Bank of Baroda led consortium banks on cash
credit/overdraft/short term loan and non-fund based facilities are secured by
way of first pari passu charge by hypothecation of stock of raw materials,
goods in process, finished goods, stores and spares, books debts, outstanding
monies, receivables, claims etc. pertaining to the manufacturing division at
Udhana and the marketing branches situated all over India, both present and
future; besides Second pari passu charge by way of registered mortgage on the
immovable property of the company together with plant and machinery attached
to the earth or permanently fastened to anything attached to the earth
situated at free-hold land at Udhana, Gujarat. Working capital limits of
amalgamated SPM division (erstwhile “Batliboi SPM Private Limited”)
sanctioned by Canara Bank are secured by hypothecation of Book Debts and
Inventories of SPM Division. Canara Bank also has first charge on land and
building of SPM Division situated at ii. A specific
guarantee facility of Rs.28.800 millions (Previous year Rs.28.800 millions)
of BEEL from a bank, is secured by first pari passu charge by way of an
equitable mortgage of the immoveable properties of the company situated at
leasehold land at Deonar, Mumbai. b. Rupee Term
Loans from a Co-operative Scheduled Bank is secured by first charge on the
fixed assets financed by these term loans and Second Charge on the Company’s
immovable and movable property at Udhana, c. Rupee Term
Loan from a bank is secured by first pari passu charge on the entire fixed
assets of the Company situated at Udhna, d. Foreign
Currency Term Loans and other Rupee Term Loan are secured by first pari passu
charge on the entire fixed assets of the Company situated at Udhna, Foreign currency long term loan includes: (i) Canadian Dollar
(CAD) 1701000 i.e. Rs.78.229 millions against which the company has not taken
any forward cover as at balance sheet date. (ii) EURO 316575
i.e. Rs.20.065 millions against which the company has not taken any forward
cover as at balance sheet date. The company has natural hedge against
commission receivable. (iii) USD 288384
i.e. Rs.12.860 millions against which the company has no forward cover or
natural hedge. (iv) The company has no exposure by way of derivative contracts.
|
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|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V. Sankar Aiyar and Company Chartered Accountants |
|
Address : |
2-C, Court Chambers, 35 New Marine Lines, Mumbai – 400 020, |
|
Tel. No.: |
91-22-22004465/ 22067440 |
|
Fax No.: |
91-22-22000649 |
|
Email : |
|
|
Website : |
|
|
|
|
|
Subsidiary
Companies : |
v
Queen Projects ( v
Vanderama Holdings Limited- v
Pilatus View Holdings AG- v
Quickmill Inc.-Canada v
Aesa Air Engineering SA-France v
Aesa Air Engineering SPA-Italy v
Aesa Air Engineering PTE Limited- v
Aesa Air Engineering Limited- v
Aesa Air Engineering Limited- v
Aesa Air Engineering Private Limited- v
|
|
|
|
|
Entities over
which key management personnel are able to exercise significant influence: |
v
Batliboi Environmental Engineering Limited v
Batliboi International Limited v
Batliboi Impex Limited v
Batliboi Enexco Private Limited v
Sustime Pharma Limited v
Spartan Electricals |
|
|
|
|
Entities in
which management personnel are trustees : |
v
Bhogilal Leherchand Foundation v
Leherchand Uttamchand Trust Fund |
CAPITAL STRUCTURE
As on 29.07.2011
Authorised Capital : Rs.300.100 millions
Issued, Subscribed & Paid-up Capital : Rs.212.661
millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
46170400 |
Equity Shares |
Rs.5/- each |
Rs.230.852 millions |
|
692480 |
Preference Shares |
Rs.100/- each |
Rs.69.248 millions |
|
|
Total
|
|
Rs.300.100
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
28682550 |
Equity Shares |
Rs.5/- each |
Rs.143.413
millions |
|
478000 |
5% - 5 Year
Redeemable Non-cumulative Preference shares |
Rs.100/- each |
Rs.47.800
millions |
|
|
Total
|
|
Rs.191.213 millions |
Notes:
Of the above:
Equity Shares
a) The face value
of equity shares of the company of Rs.10/- each has been sub-divided into
equity shares Rs.5/- each w.e.f. 4th October, 2007.
b) 35,00,000
Equity Shares of Rs.5/-each were issued as fully paid up in 1982 to the
shareholders of erstwhile Batliboi and Company Limited as per scheme of amalgamation.
c) 56,000 Equity
Shares of Rs.5/-each were allotted in earlier years as fully paid Bonus Shares
by way of Capitalisation of Reserves.
d) 16,80,000
Equity Shares of Rs.5/- each were issued as fully paid up this year to the
shareholders of erstwhile Batliboi SPM Private Limited as per the Scheme of
Amalgamation.
Preference Shares
a) 4,78,000, 5%
Non Cumulative Preference Shares of Rs.100 each are allotted during the year and
are redeemable at the end of 5 years. The earliest date of redemption is 27th
March, 2016.
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 |
191.213 |
143.413 |
135.013 |
|
|
2] Preference Share Application Money |
11.400 |
0.000 |
0.000 |
|
|
3] Share Capital Suspense A/c |
0.000 |
0.000 |
8.400 |
|
|
4] Reserves & Surplus |
366.692 |
313.867 |
355.349 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
569.305 |
457.280 |
498.762 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
372.392 |
508.240 |
516.553 |
|
|
2] Unsecured Loans |
12.200 |
0.000 |
15.466 |
|
|
TOTAL BORROWING |
384.592 |
508.240 |
532.019 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
2.103 |
2.103 |
|
|
|
|
|
|
|
|
TOTAL |
953.897 |
967.623 |
1032.884 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
479.021 |
492.147 |
505.839 |
|
|
Capital work-in-progress (including Capital Advances) |
33.310 |
26.872 |
28.173 |
|
|
|
|
|
|
|
|
INVESTMENT |
297.846 |
281.303 |
291.166 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
294.140
|
196.392
|
217.627 |
|
|
Sundry Debtors |
381.562
|
311.432
|
308.982 |
|
|
Cash & Bank Balances |
21.245
|
30.550
|
22.662 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
90.863
|
107.747
|
120.952 |
|
Total
Current Assets |
787.810
|
646.121
|
670.223 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
325.322
|
243.001
|
243.572 |
|
|
Other Current Liabilities |
246.835
|
169.753
|
145.388 |
|
|
Provisions |
71.933
|
66.066
|
73.557 |
|
Total
Current Liabilities |
644.090
|
478.820
|
462.517 |
|
|
Net Current Assets |
143.720
|
167.301
|
207.706 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
953.897 |
967.623 |
1032.884 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
1243.626 |
925.482 |
975.303 |
|
|
|
Other Income |
40.531 |
38.761 |
36.378 |
|
|
|
TOTAL (A) |
1284.157 |
964.243 |
1011.681 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales, Job Contracts and Services |
728.350 |
541.843 |
567.612 |
|
|
|
Employees’ Remuneration |
227.028 |
196.096 |
226.500 |
|
|
|
Other Expenses |
238.621 |
182.509 |
234.055 |
|
|
|
Extraordinary Items [Income/ (Loss)] |
(33.629) |
13.594 |
(52.306) |
|
|
|
TOTAL (B) |
1160.370 |
934.042 |
975.861 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
123.787 |
30.201 |
35.820 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
54.042 |
52.719 |
58.183 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
69.745 |
(22.518) |
(22.363) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
15.590 |
18.341 |
20.005 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
54.155 |
(40.859) |
(42.368) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1.075 |
0.339 |
(8.560) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
53.080 |
(41.198) |
(33.808) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
98.026 |
139.224 |
165.877 |
|
|
|
|
|
|
|
|
|
|
Add : Amount Transferred on amalgamation |
|
|
|
|
|
|
Balance of Profit & Loss Account as on 01.04.2007 |
0.000 |
0.000 |
6.164 |
|
|
|
Profit after Tax for Financial Year 2007-08 |
0.000 |
0.000 |
0.991 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Capital Redemption Reserve |
9.560 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
141.546 |
98.026 |
139.224 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Commission/ Other Income |
58.432 |
58.860 |
55.011 |
|
|
TOTAL EARNINGS |
58.432 |
58.860 |
55.011 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
59.883 |
49.759 |
39.568 |
|
|
|
Purchases for Trading |
3.402 |
0.773 |
0.564 |
|
|
|
Capital Goods |
5.202 |
0.000 |
3.248 |
|
|
TOTAL IMPORTS |
68.487 |
50.532 |
43.380 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
1.85 |
(1.45) |
(1.18) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
267.150 |
313.530 |
301.080 |
|
Total Expenditure |
257.740 |
312.190 |
299.270 |
|
PBIDT (Excl OI) |
9.410 |
1.340 |
1.810 |
|
Other Income |
5.690 |
0.700 |
0.700 |
|
Operating Profit |
15.100 |
2.040 |
2.510 |
|
Interest |
11.360 |
11.770 |
11.430 |
|
Exceptional Items |
5.220 |
15.550 |
10.770 |
|
PBDT |
8.960 |
5.820 |
1.850 |
|
Depreciation |
3.700 |
3.850 |
3.990 |
|
Profit Before Tax |
5.260 |
1.970 |
(2.140) |
|
Tax |
0.980 |
0.470 |
(0.430) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
4.290 |
1.500 |
(1.710) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
4.290 |
1.500 |
(1.710) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.13
|
(4.27)
|
(3.03) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.35
|
(4.41)
|
(4.34) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.27
|
(3.59)
|
(3.60) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
(0.09)
|
(0.08) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.81
|
2.16
|
1.99 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
1.35
|
1.45 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE AND
OUTLOOK:
Buoyant economy
and sustained growth in GDP led to increased industrial production and consequential
higher demand for capital goods during the year. The Company posted improved
results during the year by turning around the operations, on the back of
growing demand for capital goods and improved textile industry scenario.
Various measures taken by the Company such as cost reduction, enhancing market
share by developing and launching new products, also contributed to the
performance.
On standalone
basis, the gross turnover including indirect sales grew by more than 23% over
the previous year. The operations resulted in Profit before Tax of Rs.20.500
millions, against a loss of Rs.27.300 millions during the previous year. On a
post tax basis including exceptional items, the profit was Rs.53.000 millions
as compared to a post tax loss of Rs.41.100 millions in the previous year.
The performance of
foreign subsidiaries showed mixed results as capital spending in
The Company has a
healthy order book and with the continued growth in industrial production,
renewed investments in power and infrastructure sector and encouraging
prospects for textile industry, the Company expects further improvement in its
performance. The Company is taking several actions such as capacity expansion
to reduce lead time, introduction of new products, R and D initiatives etc., to
further strengthen the business operations.
SUBSIDIARIES:
Quickmill Inc.
Quickmill Inc.
headquartered in
The year has been
disappointing as the performance was affected by the continued economic down
turn and recession in key markets like North America and
The Company has
chalked out definitive plan for turning around the operations and has
restructured the business to reduce costs and widen the market base. It has
also taken steps to increase its presence in
AESA Air
Engineering
AESA is engaged in
the business of Air-conditioning and filtration in textile, tobacco, chemical,
non-woven and glass and fiberglass industry.
AESA made recovery
during the year on the back of booming textile market in
It has good order
backlog for the current year and is taking various steps such as Product
re-engineering and innovations, increasing market share worldwide with thrust
on
ISSUE OF
PREFERENCE SHARES
The Company had
issued 6,92,480 - 5% Redeemable Non cumulative Preference shares of Rs.100/-
each, aggregating to Rs.69.300 millions, to the promoters on preferential basis
after obtaining requisite approval from the members of the Company pursuant to
Section 81 (1-A) of the Companies Act, 1956. Out of this, 4,78,000 Preference
shares amounting to Rs.47.800 millions were allotted during the year.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
SEGMENTWISE
PERFORMANCE AND OUTLOOK
Batliboi Machine
Tool Group (BMTG)
Business structure
The machine Tool
Group manufactures and trades various types of machine tools.
Manufacturing: The
range includes General purpose machines, CNC machines and Special Purpose
Machines. General Purpose machines (GPMs) include Radial drilling machines from
32mm drill to 100mm drills, Milling Machines of size I, II and III. CNC
machines include CNC turning centers, Vertical Machining centers and Drilling
centers. Special Purpose Machines (SPMs) which are custom built machines to meet
specific needs of mass producers like automobile component industry for
milling, boring, facing and centering and drilling applications as per the
specific needs of the customers.
Trading: The
Company represents as agents of machine tool companies from
Developments and
performance
As per data
available from the Indian Machine Tool Manufactures Association, the machine
tool industry had an overall increase in demand in 2010-2011. Demand for GPMs
increased by 35% and for CNC is increased by 59%. For SPMs too, the trend was
encouraging as the auto sector grew by more than 20% and investment in the
Power sector and Heat exchanger market also grew. Machine Tool Udhna (MTU)
division overall order booking increased by 80 % with GPM growth of 52% and CNC
growth of 103%. The revenue grew by 30%.
1. Introduction of
new products in market segments of education and vocational training.
2. Introduction of
new products for infrastructure and power industries.
3. Introduction of
new low cost turning centers for automobile and bearings industry.
4. Improvements in
quality and technical specifications of existing machines to meet with customer
requirements.
Growth in order
booking at SPM increased by 105% and revenue grew by 118%. The increase was on
the back of orders from the auto component industry and the manufacturers of
Power equipment and the Oil and gas industries. On the trading side, there was
growth in order booking of 70% and revenue by 14%.
Opportunities,
threats and outlook
MTU
Growth in the
automobile, infrastructure and vocational training markets will continue to be
the key drivers in the year 2011-2012. New products are being added to cater to
the expanding markets. Development of untapped geographical areas is also
planned to expand the market reach.
In view of
requirements to reduce lead time, investments are planned in sophiscated
machine tools to manufacture heavy components.
The division has
an extremely healthy order backlog and therefore is expected to have
substantial growth in 2011-2012. New products to expand the range of turning,
milling and drilling machines is also planned in 2011-2012.
SPM
High growth in Power,
General Engineering and Auto sector would be the key drivers for the growth of
SPM in 2011-2012.
With support from
the Quickmill subsidiary in
Trading
Hereto, the growth
in the power sector (thermal and wind power) and Infrastructure will continue
to be the key drivers for growth. However due to intense competition amongst
international players, margins are under pressure and will continue to be so in
the current year as well.
Division has
planned to add more products into product basket as well as have focused
approach to increase business volumes and ensure growth during 2011-2012.
The main threat to
business in 2011-2012 would be the negative impact, if any, on the investment
climate due to increasing costs of capital and borrowing. Competition both
domestic and foreign will continue to be severe and therefore with increasing
costs of raw material, margins will continue to be under pressure.
Batliboi Textile
Engineering Group
Business Structure
The Textile
Engineering Group comprises of Textile Machinery and Textile Air Engineering.
In Textile Air Engineering (TAE) the Company is a leader in manufacture and
supply of climate control equipment for textile mills covering spinning,
weaving and knitting sectors.
In the Textile
Machinery business (TMB) the Company represents as Agents of International
Textile Machinery manufacturers covering a range of spinning, knitting,
processing and garmenting machinery.
Developments and
performance
TAE
The textile
industry showed positive signs of improvement throughout the financial year.
Spinning yarn production as well as off-take was high, with yarn prices
providing reasonable profits to the mills. Overall the mills performed well
with increasing profits. However, in the last quarter of the financial year,
cotton prices increased considerably with yarn prices not increasing
proportionately.
The business
environment continues to be highly competitive, with overseas competitors
reducing prices and with margins under pressure due to increasing costs of raw
material. The manufacturing of products for the Company’s subsidiary AESA, also
added to the revenue growth of the division. The division had a growth of 80%
in order booking, 57% in revenue and therefore a much improved profitability.
Pending order
position is healthy and with the expected further improvement in the textile
sector, 2011-2012 is expected to show further growth and improvement.
TMB
The year 2010-2011
witnessed one of the extreme fluctuations in the fortunes of different sectors
of the Textile Industry. The result of this was better than targeted
performance for some product line and disappointing for others.
Spinning Product
line - On account of an unprecedented demand for cotton yarn coupled with a
worldwide shortage of cotton, the prices of both these commodities rose
sharply. Spinners decided to increase capacity to meet the increased demand
that resulted in a very high level of booking for spinning equipment.
Consequently, the spinning activities of this division doubled its targeted
booking and billing.
Knitting and
Processing Product line- The scenario was almost opposite. The rise in the
input costs mainly of yarn and auxiliaries put pressure on margins making it
nearly impossible for customers to execute orders in their hands at the price
contracted. This resulted in nonfulfillment of contracts and consequently
reduced demand for knitting and processing machines.
One of the major
markets, Tirupur, suffered another major set back with the High Court ordering
closure of all polluting dyeing units in Tirupur.
This is one of the
main markets for knitting and resulted the drying up of orders from that
market. However, orders were available from other geographical regions but with
their Principal’s inability to fulfill customer’s delivery requirements,
reduced their ability to book all the expected business. All these reasons
resulted in lower than budgeted performance of both these product line.
Opportunities,
threats and outlook
TAE
The textile
industry continues to grapple with issues such as higher indirect taxes,
increased power costs, high interest rates, unfavorable labor laws, export of cotton
and high cost of this raw material. However, domestic demand has seen an
upsurge and the industry is likely to see another year of good performance on
the back of more expansions and green field projects.
Per capita
consumption of fabric is very low, in
TMB
During the year,
several modernization proposals were postponed because of delay in clearance of
TUF scheme by Government
The strong order
book position will enable the division to once again show good results in
Spinning activities. Knitting activities also has began the year with a good
pending order position and prospects in the first two months show the trend to
be positive enough to achieve good results for the year. In Processing also new
products which were added in the previous year are likely to provide good sales
and bottom line for the division.
The main thrust
during this year would be to obtain new products in the Spinning and Processing
sectors in order to provide broader avenues for business growth.
Air-conditioning
and Refrigeration Group
Business
Structure, developments and performance
The group provides
turnkey solutions to large industries in the manufacturing, service and
hospitality field.
Business
Environment for industrial clients showed a recovery from slow phase
experienced till March 2010.
Demand for package
air-conditioning from clients in steel and refinery sector continued during the
year. However due to longer cycle time for culmination of technical
discussions, finalistion of specifications and techno commercial negotiations
into orders, order booking during the year was lower than previous years.
Division had
focused on completion of longer period pending projects and debt recovery. Some
of the old debts being in dispute were written off during this year.
Performance was
therefore affected and division ended with a loss.
Opportunities,
threats and outlook
There are good
opportunities in the current market scenario. Large PSU’s in steel and refinery
sector have expansions planned for next 3/4 years. Division is gearing up to
improve its operating skills and build a contract execution team to ensure
timely execution of contracts. This would provide an opportunity for the
division to turn the corner and recover from the financial setback.
Quickmill Inc
Business
Structure, Developments and Performance
The Company’s
wholly owned subsidiary is head quartered in
The performance of
Quickmill continued to be severely effected in 2010-11 due to the continued
global economic slowdown in the world but primarily in the North American
market. The South America Markets were sluggish as many key projects where
delayed due to elections in the late 2nd quarter 2010-11 causing
many government projects to be put on hold. The
The Company
launched Quickdrill range of machines in
Opportunities,
Threats and Outlook
It is planned in
2011-12 to explore the European markets to widen the geographical base.
Strategic focus on key market segments in boiler applications, heavy off road
equipment and some aerospace sectors where there has been earlier success is
also planned.
Competition from
the Taiwanese companies offering machines at lower prices will continue to put
pressure on margins. To offset the strong Canadian dollar and increase in steel
prices, focus will be to locate new suppliers, offshore purchasing of key
components and some volume base purchases on components to lower costs.
Quickmill
restructured its operations in February 2011 to significantly reduce cost. It
invested $271,076 CAD in research and development in fiscal 2011. With these
initiatives, the Company is expected to improve its overall performance in
2011-2012 and return to profitability.
AESA Air
Engineering SA
Business
Structure, developments and performance
The Company’s
subsidiary AESA is headquartered in
After difficult
2009-10, AESA and all its subsidiaries made a recovery in 2010-11 by posting
marginal profit.
Opportunities,
threats and outlook
With booming
market in
Growth in
With heavy
restructuring of business operations in
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF: (AS ON 31.03.2011)
a) Claims against
the company not acknowledged as debts: Rs.14.972 millions.
b) Disputed sales
tax/Excise demands under appeal Rs.7.630 millions.
c) Corporate
Guarantees given to banks and financial institutions for credit facilities/
performance guarantees extended by them to Batliboi Environmental Engineering
Limited (BEEL), a related party: Rs.269.000 millions. Balance outstanding as on
31.03.2011: Rs.236.026 millions.
d) Guarantees
given on behalf of the Company by its bankers and outstanding Rs.131.805
millions. Out of the above, Guarantees of Rs.22.464 millions given by Company’s
bankers and outstanding in respect of contracts of Batliboi Environmental
Engineering Limited (BEEL), a related party.
e) In respect of
guarantees given by the company to the bankers of Batliboi Environmental
Engineering Limited (BEEL), a related party, BEEL has given counter guarantees
on behalf of the Company and extended charge on its current assets to secure
the financial assistance availed by the Company from banks/financial
institutions
f) Company has
given Corporate Guarantee to others on behalf of its step down subsidiary
Quickmill Inc amounting to CAD 0.74 Million equivalent to Rs.33.987 millions.
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2011
(Rs.
in millions)
|
Particulars |
STANDALONE |
||
|
Quarter Ended |
9 Months Ended |
||
|
31.12.2011 (Un-Audited) |
30.09.2011 (Un-Audited) |
31.12.2011 (Un-Audited) |
|
|
INCOME |
|
|
|
|
Gross Sales / Income
from Operations |
318.258 |
327.722 |
921.312 |
|
Less: Excise
Duty |
(24.323) |
(23.067) |
(64.995) |
|
Net Sales /
Income from Operations |
293.935 |
304.655 |
856.316 |
|
Other Operating
Income |
7.147 |
8.872 |
25.442 |
|
TOTAL OPERATING
INCOME |
301.082 |
313.526 |
881.759 |
|
EXPENDITURE |
|
|
|
|
(a) (Increase) /
Decrease in Stock-in-trade and Work in Progress |
12.015 |
4.700 |
(20.502) |
|
(b) Consumption
of Raw Materials |
135.869 |
150.101 |
445.093 |
|
(c) Purchase of
Traded Goods |
31.531 |
37.905 |
96.872 |
|
(d) Employees
Cost |
57.253 |
66.359 |
183.119 |
|
(e) Depreciation
and Amortisation |
3.989 |
3.854 |
11.542 |
|
(f) Other
expenditure |
62.616 |
53.114 |
164.619 |
|
TOTAL |
303.274 |
316.034 |
880.743 |
|
PROFIT FROM OPERATIONS
BEFORE OTHER INCOME, INTEREST & EXCEPTIONAL ITEM |
(2.192) |
(2.508) |
1.016 |
|
Other Income |
0.703 |
0.699 |
7.091 |
|
PROFIT BEFORE
INTEREST & EXCEPTIONAL ITEMS |
(1.489) |
(1.809) |
8.107 |
|
Interest |
11.425 |
11.770 |
34.551 |
|
PROFIT AFTER
INTEREST BUT BEFORE EXCEPTIONAL ITEMS |
(12.914) |
(13.579) |
(26.444) |
|
Exceptional
Items - Expense/(Income) |
(10.770) |
(15.549) |
(31.542) |
|
PROFIT / (LOSS)
FROM ORDINARY ACTIVITIES BEFORE TAX |
(2.144) |
1.970 |
5.098 |
|
Tax Expenses (Net)
|
(0.430) |
0.473 |
1.020 |
|
NET PROFIT /
(LOSS) FROM ORDINARY ACTIVITIES AFTER TAX |
(1.714) |
1.497 |
4.078 |
|
Extraordinary
Items |
-- |
-- |
-- |
|
NET
PROFIT/(LOSS) FOR THE PERIOD |
(1.714) |
1.497 |
4.078 |
|
Paid-up Equity Share
Capital (Face value Rs.5/- per share) |
143.413 |
143.413 |
143.413 |
|
Reserves
Excluding Revaluation Reserves As per Balance
Sheet of Previous Accounting period) |
-- |
-- |
-- |
|
Basic &
Diluted EPS for the Period (Rs. Per Share)
(not annualized
) |
(0.06) |
0.05 |
0.14 |
|
Aggregate of
Public shareholding: |
|
|
|
|
a) Nos. of
Shares |
52,39,060 |
52,39,060 |
52,39,060 |
|
b) Percentage of
Shareholding |
18.27% |
18.27% |
18.27% |
|
Promoters and
promoter group Shareholding |
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
- Number of
Shares |
NIL |
NIL |
NIL |
|
- Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
NIL |
NIL |
NIL |
|
- Percentage of shares
(as a % of the total shareholding of the company) |
NIL |
NIL |
NIL |
|
b)
Non-Encumbered |
|
|
|
|
- Number of
Shares |
2,34,43,490 |
2,34,43,490 |
2,34,43,490 |
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
- Percentage of
shares (as a % of the total shareholding of the company) |
81.73% |
81.73% |
81.73% |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs.
in millions)
|
Particulars |
STANDALONE |
||
|
Quarter Ended |
9 Months Ended |
||
|
31.12.2011 (Un-Audited) |
30.09.2011 (Un-Audited) |
31.12.2011 (Un-Audited) |
|
|
1. Segment
Revenue |
|
|
|
|
Textile
Engineering |
122.438 |
107.461 |
347.634 |
|
Machine Tools |
168.395 |
192.885 |
487.712 |
|
Air-conditioning
& Refrigeration |
5.737 |
8.752 |
32.587 |
|
Other
unallocable Sales & Income |
4.512 |
4.428 |
13.825 |
|
Net Sales/Income
from Operations |
301.082 |
313.526 |
881.759 |
|
2. Segment
Results |
|
|
|
|
Profit / (Loss)
before interest and tax |
|
|
|
|
Textile
Engineering |
8.280 |
4.836 |
20.535 |
|
Machine Tools |
(11.701) |
(9.118) |
(30.430) |
|
Air-conditioning
& Refrigeration |
(4.041) |
(2.799) |
(8.119) |
|
Total Segment
Results |
(7.461) |
(7.081) |
(18.013) |
|
Less: Interest |
(11.425) |
(11.770) |
(34.551) |
|
Add: Other
unallocable Income net of un-allocable expenses |
16.743 |
20.822 |
57.662 |
|
Total Profit /
(Loss) before Tax |
(2.144) |
1.970 |
5.098 |
|
3. Segment wise
Capital Employed (Segment Assets
Less Segment Liabilities) |
|
|
|
|
Textile
Engineering |
20.672 |
25.479 |
20.672 |
|
Machine Tools |
326.545 |
330.506 |
326.545 |
|
Air-conditioning
& Refrigeration |
11.996 |
14.983 |
11.996 |
|
Unallocable
assets less unallocable liabilities |
224.048 |
214.065 |
224.048 |
|
Net Capital Employed in Company |
583.261 |
585.033 |
583.261 |
Notes:
1)
(Rs. in millions)
|
Particulars |
STANDALONE |
||
|
Quarter Ended |
9 Months Ended |
||
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
Gross Value of
Total Business Handled (Including Agency Business |
890.988 |
915.637 |
2554.148 |
2) Provision for Taxation
has been made u/s 115JB of the Income Tax Act, 1961 (MAT).
3) Deferred Tax,
if any, will be accounted at the year end.
4) There are no
pending investors’ complaints as at 31st December, 2011. The Company
had received and resolved 1 investors' complaints during the quarter.
5) Exceptional
Items for the quarter includes notional exchange fluctuation restatement gain
of Rs.10.770 millions. (P.Y. Corresponding Quarter gain Rs.1.421 millions)
6) The above
results have been reviewed by the Audit Committee and approved and taken on
record by the Board of Directors of the Company at its meeting held on 27th
January, 2012.
7) Figures of the previous periods have been regrouped and reclassified
wherever necessary and feasible, in order to make them comparable.
FIXED ASSETS:
v
Land (Freehold)
v
Land (Leasehold)
v
Buildings
-
On
-
On
v
Plant and Machinery
v
Office Equipments/ Computers etc.
v
Furniture, Fixtures, Fans and Electrical Fittings
v
Vehicles
v
Intangible Assets -Technical Know how
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.50.92 |
|
|
1 |
Rs.81.21 |
|
Euro |
1 |
Rs.67.85 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.