1. Summary Information
|
|
|
Country |
|
|
Company Name |
KIRLOSKAR
BROTHERS LIMITED |
Principal Name 1 |
Mr. Sanjay Kirloskar |
|
Status |
Good |
Principal Name 2 |
Mr. Gautam Kulkarni |
|
|
|
Registration # |
11-00670 |
|
Street Address |
Udyog Bhavan, |
||
|
Established Date |
15.01.1920 |
SIC Code |
-- |
|
Telephone# |
91-20-24440770 |
Business Style 1 |
Manufacture |
|
Fax # |
91-20-24440824 |
Business Style 2 |
Exporter |
|
Homepage |
Product Name 1 |
Centrifugal Pumps |
|
|
# of employees |
2960 (Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.158,676,902/- |
Product Name 3 |
-- |
|
Shareholders |
Promoters Holding 62.87 % Public
Shareholding : 37.13 % |
Banking |
Bank of |
|
Public Limited Corp. |
YES |
Business Period |
92 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A
(60) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
|
Gondwana Engineers Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
14,463,610,000 |
Current Liabilities |
10,251,702,000 |
|
Inventories |
1,927,488,000 |
Long-term Liabilities |
3,486,990,000 |
|
Fixed Assets |
2,756,438,000 |
Other Liabilities |
115,398,000 |
|
Deferred Assets |
-- |
Total Liabilities |
13,854,090,000 |
|
Invest& other Assets |
2,072,272,000 |
Retained Earnings |
|
|
|
|
Net Worth |
7,365,718,000 |
|
Total
Assets |
21,219,808,000 |
Total
Liab. & Equity |
21,219,808,000 |
|
Total Assets (Previous Year) |
20,785,672,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
19,417,972,000 |
Net Profit |
613,600,000 |
|
Sales(Previous yr) |
20,178,370,000 |
Net Profit(Prev.yr) |
1,175,178,000 |
MIRA INFORM
REPORT
|
Report Date : |
31.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
KIRLOSKAR BROTHERS LIMITED |
|
|
|
|
Registered Office
: |
Udyog Bhavan, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
15.01.1920 |
|
|
|
|
Com. Reg. No.: |
11-000670 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.158.679 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29113PN1920PLC000670 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEK0011E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACK7300E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacture and Exporter of Centrifugal Pumps. |
|
|
|
|
No. of Employees
: |
2960 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 29000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part
of Kirloskar Group, a well established and diversified industrial house.
Available information indicates high financial responsibility of the company.
Trade relations are fair. Financial position is healthy. Fundamentals are
strong and healthy. The company is doing very well. It can be
considered good for any normal business dealings. The company can
be regarded as a promising business partner in a medium to long run. |
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 : |
Udyog Bhavan, |
|
Tel. No.: |
91-20-24440770 / 24444455 / 24444444 / 24402189 |
|
Fax No.: |
91-20-24440824 / 24444198/ 24442780 / 24440156 / 24434198 / 24440822 /
24270879 / 24402083 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
“YAMUNA”, Survey No. 98 (3-7),
Baner, Pune-411045, |
|
Tel. No.: |
91-20-27214598 / 27214444 |
|
Fax No.: |
91-20-27211136 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Kirloskarvadi , Dewas, Shirwal, Kondhapuri-416308, Dist. |
|
Tel. No.: |
91-2346-222301 – 05 |
|
|
|
|
Factory 2 : |
Opposite Railway Station, |
|
Tel. No.: |
91-7272-227402/ 227341 |
|
|
|
|
Factory 3 : |
Gat No. 252/2 + 254/2, Kondhapuri Tal : Shirur, Dist. Pune
– 412208, |
|
Tel. No.: |
91-2137-270217/ 270116/ 270140 |
|
|
|
|
Factory 4 : |
Shirval 4. Gat No.
117, Shindevadi Tal. Khandala, Dist. Satara-412801, |
|
Tel. No.: |
91-2169-244360 / 244370 |
|
|
|
|
Factory 5 : |
Printing Press, Kirloskar Kisan Compound, 13A, |
|
Tel. No.: |
91-20-5412471-4 |
|
|
|
|
Branch Office 1 : |
New |
|
Tel. No.: |
91-22-22020828 |
|
Fax No.: |
91-22-22026267 |
|
|
|
|
Branch Office 2 : |
|
|
Tel. No.: |
91-11-23341484 / 23347233 / 23347234 |
|
|
|
|
Sales Office : |
Located
at:
|
|
|
|
|
Overseas Office : |
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Sanjay Kirloskar |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
Bachelor of Science (M.E), Illinois Inst. Of Tech. |
|
Date of Appointment : |
02/05/1983 |
|
|
|
|
Name : |
Mr. Gautam Kulkarni |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Vikram Kirloskar |
|
Designation : |
Director |
|
Qualification : |
Bachelor of Science (Mech.) |
|
Date of Appointment : |
06/06/2001 |
|
|
|
|
Name : |
Mr. M. S. Kirloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. N. Inamdar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rahul Kirloskar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. U. V Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. K. Srivastava |
|
Designation : |
Whole Time Director |
|
Age : |
|
|
Qualification : |
M. Tech (LIT. |
|
Experience : |
|
|
Date of Appointment : |
15/05/1989 |
|
|
|
|
Name : |
Mr. P S Jawadekar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. R. Sapre |
|
Designation : |
Whole Time Director |
|
Qualification : |
Bachelor of Science |
|
Date of Appointment : |
01.04.2002 |
|
|
|
|
Name : |
Mr. A. N. Alawani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Lalita D Gupte |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pratap B. Shirke |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. G. P Kulkarni |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholder |
Total No. of
Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3,633,697 |
38.61 |
|
|
19,250,141 |
24.26 |
|
Sub
Total |
49.883,838 |
62.87 |
|
|
|
|
|
Total
Shareholding of Promoter and Promoter Group (A) |
49,883,838 |
62.87 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
6,102,688 |
7.69 |
|
|
91,143 |
0.11 |
|
|
4,012,375 |
5.06 |
|
|
1,507,824 |
1.90 |
|
Sub
Total |
11,714,030 |
14.76 |
|
|
|
|
|
|
3,621,996 |
4.57 |
|
|
|
|
|
|
|
|
|
|
11,774,899 |
14.84 |
|
|
2,177,347 |
2.74 |
|
|
|
|
|
|
167,591 |
0.21 |
|
|
138,868 |
0.18 |
|
|
28,723 |
0.04 |
|
Sub
Total |
17,741,833 |
22.36 |
|
Total
Public Shareholding (B) |
29,455,863 |
37.13 |
|
Total
(A) + (B) |
29,455,863 |
100.00 |
|
|
|
|
|
(C) Shares held by Custodians and agains which Depository
Receipts have been issued |
|
|
|
(1) Promoter and Promoter Group |
-- |
-- |
|
(2) Public |
-- |
-- |
|
Sub
Total |
-- |
-- |
|
|
|
|
|
Total (A) + (B) + (C)
|
17,741,833 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacture and Exporter of Centrifugal Pumps. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Power Driven Pumps |
Nos. |
194,000 |
194,000 |
@ 314,677 |
|
Metal Cutting
including Grinding Machines |
Nos. |
736 |
736 |
-- |
|
Reduction Gear
Units |
Nos. |
1,200 |
1,200 |
-- |
|
Valves |
Nos. |
70,070 |
70,070 |
31,123 |
|
Ploughs |
Nos. |
3,216 |
3,216 |
-- |
|
Alloy Iron
Castings including Steel Castings |
M.T. |
* 120 |
* 120 |
-- |
|
Cast Iron
Castings |
M.T. |
2,500 |
2,500 |
-- |
|
Cast Iron
Castings including Alloy Steel Castings for Automotive purposes |
M.T. |
5,000 |
5,000 |
937 |
|
Turbines |
Nos. |
|
|
5 |
|
Electric Motors |
Nos. |
|
|
@@ 17,788 |
@ Includes 56 (80)
for own use.
@@ Includes 11
(12) for own use.
* Per annum on
single shift basis.
Notes
a) Licensed
Capacity includes registered capacities for activities existing prior to the Industries
(Development Regulation) Act, 1951, but does not include licenses held for
captive capacities.
b) It is not
practicable to indicate precisely installed capacity of each type of product
manufactured by the Company, as the capacity of various facilities available is
overlapping for each product. Besides, the Company manufactures a very large
range amongst the licensed products which, in turn, is decided by actual demand
from time to time. Also the Company buys components, parts and other services from
outside. The installed capacities as indicated above are estimates as certified
by the Managing Director and accepted by the Auditors.
c) In terms of
notification no. 477E dated 25.07.1991 issued by Department of Industrial
Development, industrial licenses are not required for the products manufactured
by the Company except centrifugal pumps manufactured at Dewas below 10 cm x 10
cm which are reserved for small scale sector. Revalidation of industrial
license in this range of pumps is under process.
GENERAL INFORMATION
|
No. of Employees : |
2960 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Auditors : |
|
|
Name : |
P. G. Bhagwat Chartered Accountants |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Enterprises over
which key managerial personnel or their relatives exercise significant
influence |
|
|
|
|
|
Joint Ventures :
|
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.2/- each |
Rs,500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
79338451 |
Equity Shares |
Rs.2/- each |
Rs.158.677
Millions |
|
|
|
|
|
- 123,750 (123,750) equity shares of Rs.2/- (Rs.2/-) each were allotted as fully paid up pursuant to contract for consideration other than cash.
- 66,374,981 (66,374,981) equity shares of Rs.2/- (Rs.2/-) each were allotted as fully paid up bonus shares by capitalisation of General Reserve and Share Premium
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 |
158.677 |
158.667 |
211.529 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7207.041 |
6905.154 |
6787.799 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7365.718 |
7063.821 |
6999.328 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1663.012 |
774.287 |
1808.662 |
|
|
2] Unsecured Loans |
1823.978 |
2798.099 |
1395.683 |
|
|
TOTAL BORROWING |
3486.990 |
3572.386 |
3204.345 |
|
|
DEFERRED TAX LIABILITIES |
46.735 |
79.525 |
65.086 |
|
|
Employee Stock Options Outstanding |
68.663 |
69.941 |
92.068 |
|
|
|
|
|
|
|
|
TOTAL |
10968.106 |
10785.673 |
10360.827 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2756.438 |
2712.730 |
2051.337 |
|
|
Intangible Assets |
40.312 |
13.914 |
9.945 |
|
|
Capital work-in-progress |
358.698 |
213.978 |
704.733 |
|
|
|
|
|
|
|
|
INVESTMENT |
1673.262 |
1902.990 |
3383.751 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1927.488
|
1790.312
|
1556.655 |
|
|
Gross
amount due from customers for project related contract work |
3274.087
|
2570.500
|
2244.318 |
|
|
Sundry Debtors |
4734.163
|
5997.515
|
6126.484 |
|
|
Cash & Bank Balances |
579.135
|
965.908
|
99.949 |
|
|
Other Current Assets |
1504.157
|
648.483
|
437.060 |
|
|
Loans & Advances |
4372.068
|
3969.342
|
3238.063 |
|
Total
Current Assets |
16391.098
|
15942.06 |
13702.529 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5944.993
|
5511.600 |
5837.628 |
|
|
Other Current Liabilities |
3146.439
|
3036.785
|
2454.907 |
|
|
Gross amount
due to customers for project related contract work |
520.249
|
708.009
|
681.147 |
|
|
Provisions |
640.021
|
743.605
|
517.786 |
|
Total
Current Liabilities |
10251.702
|
9999.999 |
9491.468 |
|
|
Net Current Assets |
6139.396
|
5942.061
|
4211.061 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10968.106 |
10785.673 |
10360.827 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19417.972 |
20178.370 |
18309.448 |
|
|
|
Other Income |
131.486 |
479.471 |
359.135 |
|
|
|
TOTAL (A) |
19549.458 |
20657.841 |
18668.583 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
13423.863 |
14986.907 |
13999.548 |
|
|
|
Payments and benefits to employees |
1351.465 |
895.284 |
943.817 |
|
|
|
Operating and Other Expenses |
3151.883 |
2447.688 |
2237.392 |
|
|
|
Expenses Capitalized |
(8.242) |
(2.057) |
(4.927) |
|
|
|
TOTAL (B) |
17918.969 |
18327.822 |
17175.830 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1630.489 |
2330.019 |
1492.753 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
299.535 |
335.636 |
303.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1330.954 |
1994.383 |
1189.553 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
300.144 |
264.767 |
207.350 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1030.810 |
1729.616 |
982.203 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
417.210 |
554.438 |
311.916 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
613.600 |
1175.178 |
670.287 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
905.060 |
529.688 |
506.879 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
277.685 |
436.319 |
211.529 |
|
|
|
Additional Tax on Dividend |
37.146 |
63.486 |
35.949 |
|
|
|
Transfer to General Reserve |
61.360 |
300.000 |
400.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1142.469 |
905.060 |
529.688 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of goods exported |
1510.874 |
1547.154 |
2165.886 |
|
|
|
Services rendered/Civil work |
315.730 |
146.597 |
0.000 |
|
|
|
Profit on |
0.000 |
224.794 |
0.000 |
|
|
|
Other Earnings |
6.622 |
1.858 |
0.000 |
|
|
TOTAL EARNINGS |
1833.226 |
1920.403 |
2165.886 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Components and Spares Parts |
1979.700 |
4998.590 |
1883.493 |
|
|
|
Stores & Spares |
46.297 |
74.094 |
200.926 |
|
|
TOTAL IMPORTS |
2025.997 |
5072.684 |
2084.419 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
7.73 |
14.81 |
6.34 |
|
|
|
- Diluted |
7.73 |
14.81 |
6.34 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
4311.660 |
4139.740 |
4205.930 |
|
Total Expenditure |
4056.880 |
3981.660 |
3856.910 |
|
PBIDT (Excl
OI) |
254.780 |
158.080 |
349.020 |
|
Other Income |
350.940 |
33.960 |
5.740 |
|
Operating
Profit |
605.720 |
192.040 |
354.760 |
|
Interest |
65.260 |
82.850 |
105.950 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
540.460 |
109.190 |
248.810 |
|
Depreciation |
73.500 |
78.630 |
73.220 |
|
Profit
Before Tax |
466.960 |
30.560 |
175.590 |
|
Tax |
105.000 |
1.000 |
48.800 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
361.960 |
29.560 |
126.790 |
|
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 |
361.960 |
29.560 |
126.790 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.14
|
5.69
|
3.59 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.31
|
8.57
|
5.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.38
|
9.27
|
6.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.24
|
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.87
|
1.92
|
1.81 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.60
|
1.59
|
1.44 |
LOCAL AGENCY FURTHER INFORMATION
SUBSIDIARY COMPANIES
The Company has incorporated a Wholly Owned Subsidiary - Kirloskar Systech Limited on August 9, 2010. Kirloskar Systech Limited is primarily engaged in system engineering, designing and support services.
During the year, the Company has transferred its 100% shares of two of the subsidiary companies viz. Pressmatic Electro Stampings Private Limited (PESPL), Quadromatic Engineering Private Limited (QEPL) to its wholly owned subsidiary Hematic Motors Private Limited (HMPL). Further, a Scheme of Amalgamation of Company’s step down subsidiaries, PESPL and QEPL with Company’s wholly owned subsidiary - HMPL was filed with the Honourable Bombay High Court by the said companies.
The same has been approved by the Honourable Court vide its orders dated April 8, 2011 and the scheme has been made effective on April 25, 2011. As a result, with effect from the appointed date i.e. January 1, 2011 under the scheme, the PESPL and QEPL have been merged with HMPL on and from appointed date.
On January 1, 2011, the company has transferred the shares
held in its Wholly Owned Subsidiary Kirloskar Brothers (
The performance of the domestic and overseas subsidiary companies has been good, except in respect of a few subsidiary companies. The company is in the process of aligning the operations of its subsidiary companies.
As a way forward, the company would concentrate on streamlining the operations of companies involved in manufacturing and take strategic decisions in respect of companies which are in the project / EPC business.
The Financials of subsidiaries are appearing elsewhere in this annual report.
On November 22, 2010, the Company made an application to the
Central Government under section 212(8) of the Companies Act, 1956 for
exemption from attaching the annual accounts of the subsidiary companies. On
February 8, 2011 the Government of
The consolidated financial statement of subsidiaries prepared as per applicable provisions and duly audited by the statutory auditors, is presented elsewhere in this annual report. As per the said general exemption, instead of the annual accounts of the subsidiary companies, they have attached certain information in respect of Company’s subsidiaries for the respective financial years.
Further, they hereby undertake that annual accounts for the subsidiary companies and the related detailed information will be made available to the Shareholders, seeking such information. The annual accounts of the subsidiary companies will also be kept open for inspection for Shareholders.
MANAGEMENT DISCUSSION AND ANALYSIS
WORLD ECONOMY
International Monetary
Fund estimates World Economy to grow by 4.4% in 2011. Commodity prices are
expected to continue to rise in 2011, but the International Monetary Fund warns
that inflation could become a problem. The triple shock of earthquake, tsunami
and nuclear disaster in
Indian Economy
Gross Domestic Product (GDP) of Indian Economy is estimated
to have grown at 8.6 % in 2010-11 in real terms. The Asian Development Bank in
its Development Outlook Report, 2011, has stated that concerns over high food
prices will now shift to oil, as elevated international oil prices will put
pressure on inflation. Monetary policy measures taken by the Reserve Bank of
Global Pump Market
Outlook and Growth Drivers
World pump demand is forecast to
rise 6.5 % annually. Three-fifths of all new fluid handling pump demand
generated during the 2009-14 period will be attributable to the Asia Pacific
region. Several Asian countries are projected to record impressive gains,
including
Centrifugal pumps will account for over 70% of the revenues. Municipal waste water will be the largest application segment followed by municipal drinking water. Refineries will be the third largest segment and power will rank fourth. The factors affecting the growth of the global pump industry are:
- Amidst concerns of global warming, climate change and rising energy cost, energy-efficient and robust pumping solutions can be the growth drivers for the industry.
- The stringent environmenta regulations will help generate demand for more efficient and better performing fluid handling pumps, such as seal - less centrifugal models like KBL’s innovative Chemical Process (i- CP) pump.
- The market may witness the reduction in pump sales for conventional oil and gas and refining applications and the growth of sales in non-traditional applications.
- Desalination and various filtration technologies are witnessing huge demand globally.
- Proper selection of pump based on the application, may lead to amore consultative sales approach.
Strategy and Policy
The challenges in the market on account of rising oil and commodity prices and political disturbance were addressed by reviewing there strategy and policy. There company will focus on profit driven sales with good cash flow. They were selective with sales orders and execution to improve sales mix, which resulted in share of own product sales to total sales going up as against previous year but resulted in a fall in sales. However, quality of sales was better. Project management was organized with delegation of more control to the site controllers for timely closure of projects.
Kirloskar Systech Limited was formed to address the requirements of system engineering, designing and support services. This step was taken in alignment with there stated objectives of offering integrated fluid management solutions. In order to achieve operational excellence across the company, all the factories are now covered under QMS 2008 and OHSAS.
They have made strategic investments to address market
opportunities. The Kaniyur village, Karumathampatti – PO,
International
Business Strategy
The export business achieved Rs.1827 million in turnover.
They have successfully executed projects inSenegal,
Water Resource
Management
Water supply and sanitation facilities are presently a focused area of business due to urbanization coupled with scarcity of water. Government through the Jawaharlal Nehru National Urban Renewal Mission and Urban Infrastructure Development Scheme for small and medium towns scheme, is providing adequate funds to finance 11th five year plan’s target of providing 100% water supply for the entire urban population. Still 24x7 water supply, quality of water supplied and partial treatment of sewage are major areas of concern. Undersuch circumstances there is demand for efficient water management practices with latest technologies and Lowest Life Cycle cost options, which they are focusing upon.
Some of the prestigious orders executed during the year 2010–11 include:
- Pimpri Chinchwad Municipal Corporation’s (PCMC) Ravet Water Supply Pumping Station (Electro Mechanical Package) which was completed in five months
- 73 Million Litres Daily (MLD) Water Supply Scheme for Kerala Water Authority consisting of intake pump house, water reatment plant and clear water pumping station
- 285 Million Litres Daily (MLD) Vasna Sewerage Pumping Station for Ahmedabad Urban Development Authority
- 102 Million Litres Daily (MLD) Vinzol Sewerage Pumping Station Ahmedabad Urban Development Authority
- 8.5 Million Litres Daily (MLD) Sewage Treatment Plant for Vadodara Municipal Corporation
- 125 Million Litres Daily (MLD) Water Treatment Plant for Coimbatore Municipal Corporation
Kirloskar Brothers and its JV partner were successful in getting the prestigious 585 Million Litres Daily (MLD) water supply scheme order from the Bangalore Water Supply and Sewerage Board worth ` 439 Crores. KBL’s portion is of ` 219 Crores which includes 30 numbers of high head horizontal split case pumps. The order is under fast track execution. They have also received there first order for 100 Million Litres Daily (MLD) desalination plant at Chennai and the Kalyan Dombivli Corporation has placed a major refurbishment order for the143 Million Litres Daily (MLD) water treatment plant at Barve and Titwale.
Irrigation
The business sector’s focus was on site management, closure
of sites and strengthening the tendering process. These efforts would go a long
way in solving the market and business challenges. Monitoring by a well
experienced team has led to improvement in the quality of site management. The
decentralization of project execution led to close customer interaction, cost
savings, faster execution and site closures. The measures were aptly
demonstrated in the fast execution of project in
The business sector bagged the first Engineering,
Procurement and Construction (EPC) order in
Power
The business sector was successful in completing a series of large projects in the Indian power industry by providing customized solutions to customers, focused on developing innovative pumping products. There resolve to serve the emerging nuclear energy market is aptly reflected in initiatives like The American Society of Mechanical Engineers (ASME) - Nuclear Stamp Certification process, which has commenced at Kirloskarvadi factory with the help of Lloyds Register. They have received approvals from all leading global Engineering, Procurement and Construction (EPC) companies for pumps and pumping systems for nuclear power projects.
The notable achievements are:
- The largest horizontal split-case pumps for circulating water (CW) application for the Pipavav Thermal Power Project.
- The largest circulating water pump (CWP) system in the world for a power plant which includes 10 sets of concrete volute pumps each of 63,000 m³ per hour for the 5x800 MW Coastal Gujarat Power Limited (CGPL), Mundra Ultra Mega Power Project of Tata Power Limited Largest size butterfly valve for thermal power plant in India. 3600 mm diameter for sea water application for 2x660 MW Essar Power Salaya Thermal Power Project
- The largest indigenously developed condensate extraction pump for 2 x 800 MW Krishnapattanam Thermal Power Project of Andhra Pradesh Power Development Corporation Limited
- The largest butterfly valve of 3600 Successful commissioning of 2 Sets of CW pumps for 370 MW Central Thermoelectric Santa
- Maria project at Coronel in Chile of Colbun SA – bowl pull out design pumps for sea water application. Millimeter for seawater application of Salaya Power Project of Essar Power
- The largest Vertical Turbine pumps for circulating water (CW) pump application for Tiroda Thermal Power Project of Adani Power each of capacity 40,000 m³ per hour consisting 12 pump sets
- The secondary heat transfer pumps for the 500 MW prototype fast breeder reactor at Kalpakkam.
On the international front, they successfully completed the
erection of circulating/cooling water (CW) pumps for Colbun project,
There hydro business offers hydro turbine solutions for turnkey projects on a ‘Concept to Commissioning’ framework. Being an established and proven player in the field of fluid handling, they are well placed to focus there attention on hydro turbines.
Industry
This business sector has focused on lowest life cycle cost
(LLC) concept or products which have the lowest total cost of ownership (TCO).
Based on this concept, they have sold there range of LLC pumps to National
Peroxide as well as steel companies and chemical manufacturers. There is an
export focus on process industries where the sector has made headway with
orders from Japan Gas Company (JGC) and Chiyoda
Oil and Gas
The Oil and Gas business sector maintained its leadership position in fire fighting pump business with prestigious orders from ONGC’s Mangalore Refinery and Petrochemicals Limited and Gujarat State Petroleum Corporation Limited. The sector also received orders for cooling water applications from Gactel Turnkey Projects Limited and Bharat Heavy Electricals Limited. The sector is trying to promote Under writers’ Laboratories , Incorporation (UL) and/or Factory Mutual Research Corporation (FM/UL) approved fire fighting sets and valves for utility application in oil refineries and petrochemical industries. The move will assist in developing business opportunities in the upcoming as well as replacement market.
Building and
Construction
The sector has established itself as a system supplier creating awareness for space saving concepts, user friendly low maintenance design and energy saving coatings. Major approvals were received from regional and national consultants and customers like Delhi Metro Railway Corporation, Bangalore Metro Railway Corporation, GVK Industries Limited, GMR Group and Larsen and Toubro. The demand for the products and packages from Original Equipment Manufacturers (OEM) and contractors increased owing to the availability of products and customer relationship management of KBL.
Marine and Defense
This business sector continues to offer customized solutions to the Defense and Marine segments. After obtaining plant approval from the Directorate General of Quality Assurance (DGQA),they enhanced there qualification further when the Indian Register of Shipping (IRS) accreditation for the Kirloskarvadi foundry and the factory was obtained. They have received new orders for the forthcoming survey vessels of Indian Navy through shipyard. They are developing portable submersible pumps for Indian Navy and have also received similar orders from the Coast Guard. This has helped in breaking monopoly of the competitors and led to deeper market penetration. They have also received prestigious order from Defence Research and Development Organization (DRDO) for design and system engineering of the Water Mist System on – board a nuclear submarine. For on-shore establishments they received a turnkey order for the Garden Reach Shipbuilders and Engineers (GRSE) modernization project. They were successful in getting repeat order for underwater valves with Det Norske Veritas (DNV) certification for merchant vessels built by Mazgaon Dock.
Domestic and
Agriculture
The Domestic and Agriculture business focused on market segmentation in view of changing market conditions. This segmentation ledtobetter commercial policies which were well received helping enhance the overall customer experience. New dealers were appointed and dealer friendly service and replacement policy created confidence in there channel partners. Dealer capability programs helped in the growth of business. Promotional programs like mandi activation and mukhiya, and dealer panel meets, conferences and mystery shopping which focused towards generating sales had a positive impact. They contacted more industrial customers as a part of the marketing activity. Customer visits and other marketing measures have improved there visibility in the market. Product gaps were analyzed for market potential. New product development process was established from market brief to product clinics.
Focused energy audits have yielded encouraging results. These audits have promoted the concept of energy efficiency and conservation without losing sight of the business opportunity.
Kirloskarvadi
Kirloskarvadi plant is continually striving to reduce the impact of organization’s activitieson environment, occupational health and safety of employees through implementation of management systems as per ISO -14001 and OHSAS -18001. They have integrated Environment, Health and Safety Management System to focus and align the system in line with sustainability reporting guidelines and the ‘CII code for ecologically sustainable business growth’.
The company provides refresher training on safety to all employees so that safety is not ignored at any point in time. In order to improve engagement of employees at all levels, they have developed Department Safety Councils in addition to the statutory Safety Committee. They celebrate ‘Safety and Energy Week’ to enhance awareness of the environment, health and safety issues.
They were successful in getting approvals of the
Kirloskarvadi facility from international customers like Kemper County USA, JGC
Corporation Japan, IHI Corporation
The steel foundry’s capacity enhanced to 100 tons per month. This would help meet the demand for products having exotic material of construction especially for process pumps in the industry sector. Similarly non-destructive test facilities were upgraded to retain there position in the power sector and create differentiation in the market. There is added thrust to utilize ‘Replicast’ casting technology. They have built a state-of-the-art testing and packaging facility for FM/UL pumps.
Kirloskarvadi factory received the National Energy Conservation Award- 2010 for Energy Conservation efforts and Golden Peacock Award for Corporate Social Responsibility for the year 2010. Kirloskarvadi factory achieved Level – 2 in Total Cost Maturity (TCM) model by Confederation of Indian Industry.
The development of the secondary heat transfer pump is an event of national importance for the country’s fast breeder nuclear reactor program. During the year, there Company filed 6 patents (under scrutiny) for innovation. They have initiated the process for ‘N Stamp’ to enhance there nuclear pump business.
Dewas and Shirwal
The Dewas and Shirwal factories worked to optimize production cost of small pumps and motors and provide innovative products of international quality. The concept of energy efficiency has been taken up in a major way. More than 120 models are already Star labelled by the Bureau of Energy Efficiency and other models are under process. A radical path was undertaken by the Dewas factory to become responsive, flexible and agile in meeting the customer demand to eliminate stress on manufacturing and improve on time delivery.
The factory successfully completed a new layout for Single
Phase and
the productivity improvement. The new
Karad with 3,000 motors manufactured in February, 2011. This would be further enhanced.
An agreement was signed with the
Kondhapuri
Kondhapuri valve factory was nstrumental in developing a host of new products to address the demands of municipal, irrigation and power segments. New products developed include 1,500 millimeter rising or non-rising Spindle Sluice Valve and 3,600 millimeter Butterfly Valve. These valves are of the largest size so far produced by the factory. The tamper-proof Kinetic Air Valve range (50 millimeters to 200 millimeters) was developed to address the water pipeline applications.
The factory has taken measures to improve productivity as well as capacity. A Vertical Turret Lathe (VTL) of 4.5 meters was installed and a new Gauge Room and Tool Crib was set up. 7 sub zones of the factory qualified for 3 ‘S’ under 5’S’. The factory won the first prize for the i-Mission project and received a patent. It won the 1st runner up award in Kirloskar Group Energy Conservation (ENCON) competition. The factory took several initiatives for protecting the environment and energy conservation. This includes the commissioning of new sewage treatment plant and effluent treatment plant, installation of a Kirloskar solar panel system, completion of recycled water piping work and pump installation.
The factory organized training courses for its employees. The objective was competency and overall development of the employees. Energy conservation training for all employees was organized with the help of an external agency.
Global Marketing
The company launched a customer loyalty program in the form
of ‘Oldest Pumps Contest’ for pumps used for Industrial applications. The
response to the contest was overwhelming. They have conducted customer
perception surveys in
KBL’s communication team successfully crafted and introduced
advertisements and promotions meant for nuclear energy, thermal energy and
industrial market focused under the theme of ‘Reliable, Innovative and Cost
Effective’. The campaign also focused on the solution providing capability of
Kirloskar Brothers wherein pumping solutions led to the empowerment of people
in
Seminars were organized in
Financial Performance
Total sales are at Rs.19,418 million as against Rs.20,178 million in PY - drop of 4%.
KBL was selective with orders and execution to improve sales mix.
Composite material cost as % to sales has reduced from 74.3% in PY to 69.1% in CY.
Total expenditure including ERE and Depreciation is Rs.4,795 million as against Rs.3,606 million in PY.
Current year expenditure increase is mainly due to ERE ` 456 million and Subsidiary Company – Kirloskar Constructions and Engineers Limited’s advance written off – Rs.675 million.
Despite pressure on working capital throughout the year, interest cost has come down to Rs.300 million from Rs.336 million in PY.
PBT is at Rs.1,031 million as against Rs.1,730 million in PY – reduction is primarily due to the Kirloskar Constructions and Engineers Limited’s advance write-off.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED DECEMBER 31, 2011
Rs in Millions
|
Particulars |
Quarter Ended |
Nine
Months Ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
1. (a)Net sales/ Income from Operations |
4170.098 |
4121.685 |
12591.742 |
|
(b) Other operating income |
35.835 |
18.059 |
65.593 |
|
Total |
4205.933 |
4139.744 |
12657.335 |
|
Expenditure |
|
|
|
|
a) (Increase)/decrease in stock in trade and work in progress |
24.975 |
(154.063) |
(260.349) |
|
b) Consumption of raw materials |
2101.842 |
2173.356 |
6567.300 |
|
c) Purchase of Traded Goods |
719.297 |
1070.032 |
2709.615 |
|
d) Employees Cost |
369.826 |
330.568 |
1097.252 |
|
e) Depreciation |
73.223 |
78.634 |
225.355 |
|
f) Other expenditure |
640.966 |
561.771 |
1781.634 |
|
Total |
3930.129 |
4060.298 |
12120.807 |
|
3. Profit from operations before other income and Interest (1-2) |
275.804 |
79.446 |
536.528 |
|
4. Other income |
5.741 |
33.961 |
390.641 |
|
5. Profit before
interest (3+4) |
281.545 |
113.407 |
927.169 |
|
6. Interest |
105.953 |
82.849 |
254.062 |
|
7. Profit before
Tax (5-6) |
175.592 |
30.558 |
673.107 |
|
8. Tax Expenses |
48.800 |
1.000 |
154.800 |
|
9. Net profit
after tax (7-8) |
126.792 |
29.558 |
518.307 |
|
10. Paid up equity share capital (Face value of Rs.2/- each) |
158.679 |
158.679 |
158.679 |
|
11. Reserves
excluding revaluation reserve as per Balance Sheet of previous accounting
year |
-- |
-- |
-- |
|
12. Earnings Per Share (Not Annualized) (In Rs.) |
|
|
|
|
a) Basic Earnings Per Share |
1.60 |
0.37 |
6.53 |
|
b) Diluted Earnings Per Share |
1.60 |
0.37 |
6.53 |
|
13. Public shareholding |
|
|
|
|
- Number of shares |
29,455,863 |
29,858,464 |
29,455,863 |
|
- Percentage of shareholding |
37.13 |
37.63 |
37.69 |
|
14. Promoter and
Promoter Group Shareholding |
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
- Number of
Shares |
-- |
-- |
-- |
|
- Percentage of Shares
(as a % of total shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
-- |
-- |
-- |
|
b)
Non-Encumbered |
|
|
|
|
- Number of
Shares |
49,883,838 |
49,481,237 |
49,883,838 |
|
- Percentage of
Shares (as a % of total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of
Shares (as a % of total share capital of the Company) |
62.87 |
62.37 |
62.87 |
Notes:
1.
The above results have been reviewed by the Audit Committee and approved by the
Board of Directors at their respective meetings held on January 24, 2012.
2. The
limited review of the financial results for the quarter ended December 31,
2011, pursuant to clause 41 of the listing agreement, has been carried out by
the Statutory Auditors.
3.
During the quarter, 4 investors' complaints were received and redressed. There
was no investor complaint pending for redressal at the beginning and end of the
quarter.
4.
On December 30, 2011, Company has subscribed to 6% Cumulative Redeemable
Preference Shares of its wholly owned subsidiary viz. Kirloskar Constructions
and Engineers Limited at the aggregate cost of Rs.100.000 Millions.
5.
Figures related to Equity Share Capital, Earnings per share and public and
promoters shareholdings are after issue of shares under ESOS.
6.
Figures have been regrouped wherever necessary.
FIXED ASSETS
- Lands Free/ Lease Hold
- Buildings
- Railway Siding
- Plant and Machinery
- Furniture and Fittings
- Vehicles
PRESS
RELEASE
Kirloskar acquires a pump company in UK
Saturday, 08 November 2003
In the last couple of years, Kirloskar Group has worked
relentlessly to increase exports in sustainable way and also de-risk them by
concentrating on sales to OEMs and institutions. Once such breakthroughs are achieved, the
revenues are stable year after year.
Towards this objective, Kirloskar has positioned itself as cost
competitive producer of high quality products and is constantly on look out to
increase exports. A significant step in
that direction was announced today by Kirloskar – acquisition of certain assets
and businesses of SPP Pumps Ltd. in
SPP sells pumping packages in a variety of market segments
like construction, irrigation, fire-fighting, and water supply and sewage. In
fact SPP enjoys a dominant market share in the
Subject (KBL), the Kirloskar Group company in the business of providing fluid handling solutions, has had a 30 year relationship with SPP for supply of components required for pump manufacturing. Initially, in 1973 SPP signed an agreement with KBL for supply of castings and components for SPP designed pumps. Over the years KBL has supplied SPP with components for hundreds of thousands of such pumps, in addition to supplying a large number of the same pumps around the world.
In 1980s, KBL and SPP worked on the joint development of a
new range of split casing pumps for world markets. The pumps were jointly designed, and
manufacturing facilities were augmented at the Kirloskarvadi plant. These pumps
are currently exported all over the world, with the biggest export markets
being the
After the acquisition, SPP Pumps Limited. will be run as an independent company. Mr. Owen Shevlin has been appointed as the Managing Director. Mr Shevlin was formerly the Managing Director of SPP Pumps Limited.
Mr. Sanjay Kirloskar emphasised that “there is an explicit
understanding between the managements of KBL and SPP Pumps that SPP would be
run as an independent company and all transactions between the two companies
would be at an arms length basis.
Moreover, KBL will continue to maintain and protect the existing close
relationship with its own customers in
Mr. Atul Kirloskar said, “They believe that the current synergy between SPP and KBL would bring greater benefits to Customers worldwide. And that, this acquisition will help the Kirloskar Group grow globally”.
ICICI Securities Limited. were the advisors to KBL for the transaction.
The Kirloskar Group:
Rs. 24 billion engineering
group driving critical industries like power, construction and mining,
agriculture, industry and transport, oil and gas and environment protection
with a range of world class industrial products and turnkey services.
It comprises of five
companies in
The multi-unit,
multi-product, multi-location group is built on the plinth of Experience,
Expertise, Quality, Innovation and Values in the business and aims at creating
a new industrial order. All the Group companies are ISO 9001 certified since
1992 and some are ISO 14001 and QS 9000 certified.
The motto of the
Group is: “Invent before time, provide before it is needed and give life The
Cushion it needs”.
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 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.51.16 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.68.34 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
|
60 |
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.