MIRA INFORM REPORT

 

 

Report Date :

16.05.2012

 

IDENTIFICATION DETAILS

 

Name :

GEI INDUSTRIAL SYSTEMS LIMITED

 

 

Registered Office :

26-A, Industrial Area, Govindpura, Bhopal – 462 023, Madhya Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

28.12.1993

 

 

Com. Reg. No.:

10-008029

 

 

Capital Investment / Paid-up Capital :

Rs.843.913 Millions

 

 

CIN No.:

[Company Identification No.]

L28112MP1993PLC008029

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BPLG00553A

 

 

PAN No.:

[Permanent Account No.]

AABCG1403B

 

 

Legal Form :

A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturers and Marketers of Industrial Machinery.

 

 

No. of Employees :

691 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 7500000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well 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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCATIONS

 

Registered Office /Factory :

26-A, Industrial Area, Govindpura, Bhopal – 462 023, Madhya Pradesh, India

Tel. No.:

91-755-2586691 / 2586692 / 258669 / 2586695

Fax No.:

91-755-2587678 / 2586619

E-Mail :

cs@geiind.com

jcsanghavi@geiind.com

ssanand@geiind.com

hbsoni@geiind.com

zaid@safewaylic.com 

Website :

http://www.geiind.com

 

 

Corporate Office :

501, Central Plaza, 5th Floor, 166, CST Road, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India

 

 

Regional Office :

Located at:

 

  • Mumbai
  • New Delhi

 

 

Overseas Local Representative Offices :

Located at :

 

·         South East Asian Region

·         Singapore

·         Middle East Asia

·         Sultanate of Oman

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. C.E. Fernandes

Designation :

Chairman and Managing Director

Qualification :

Diploma in Business Management

Date of Appointment :

28.12.1993

 

 

Name :

Mr. Bernard John

Designation :

Joint Managing Director

Qualification :

Diploma in Mechanical Engineering

Date of Appointment :

09.03.1994

 

 

Name :

Mr. Pannalal Mundhra

Designation :

Whole Time Director

 

 

Name :

Mrs. Everlyn Fernandes

Designation :

Whole Time Director

Qualification :

Metric

Date of Appointment :

10.01.2002

 

 

Name :

Mr. D. Laxminarayan

Designation :

Executive Director

Qualification :

B.E. (Mechanical)

Date of Appointment :

18.10.1997

 

 

Name :

Mr. S.C. Duggal

Designation :

Independent - Non Executive Director

 

 

Name :

Mr. Vijay Khanna

Designation :

Independent - Non Executive Director

 

 

Name :

Dr. Sudarshan Synghal

Designation :

Independent - Non Executive Director

 

 

Name :

Mr. K. Nandakumar

Designation :

Independent- Non Executive Director

 

 

Name :

Mr. Sanjiv Singhal

Designation :

Non Executive Director (Nominee of BTGC)

 

 

Name :

Mr. Bharat Banka

Designation :

Independent - Non Executive Director (Additional Director)

 

 

KEY EXECUTIVES

 

Name :

Mr. Sudeep Jain

Designation :

Company Secretary

 

 

Name :

Mr. P.V. Sundaram

Designation :

President (Corporate Management)

Name :

 

Name :

Mr. N.K. Katare

Designation :

Sr. Vice President (Corporate H.R.)

 

 

Name :

Mr. Robinson Fernandez

Designation :

Sr. Vice President (Applications)

 

 

Name :

Mr. Raghu Nair

Designation :

Sr. Vice President (Project Management)

 

 

Name :

Mr. Shankar R. Malani

Designation :

Sr. Vice President (Production)

 

 

Name :

Mr. Prafulla Gang

Designation :

Sr. Vice President (finance and commercial)

 

 

Name :

Mr. J.C. Sanghvi

Designation :

Vice President (Marketing)

 

 

Name :

Mr. G.S. Tiwari

Designation :

Vice President (MM and SCX)

 

 

Name :

Mr. Alok Jagani

Designation :

Vice President (Finance)

 

 

Name :

Mr. Rajesh Vohra

Designation :

Vice President (Mumbai)

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2012

 

Category of Shareholder

Total No. of Shares

% of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

6884525

41.41

Sub Total

6884525

41.41

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

6884525

41.41

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

39592

0.24

Financial Institutions / Banks

1000

0.01

Foreign Institutional Investors

1703900

10.25

Sub Total

1744492

10.49

(2) Non-Institutions

 

 

Bodies Corporate

1244433

7.49

Individuals

 

 

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

2527390

15.20

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

2285205

13.75

Any Others (Specify)

1938535

11.66

Clearing Members

44571

0.27

Non Resident Indians

231102

1.39

Overseas Corporate Bodies

500

-

Foreign Corporate Bodies

1661362

9.99

          Trust

1000

0.01

Sub Total

7995563

48.09

Total Public shareholding (B)

9740055

58.59

Total (A)+(B)

16624580

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

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

16624580

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Marketers of Industrial Machinery.

 

 

Products :

·         Power Plant
        · Combined cycle steam based and gas turbine based owner plants.
        · Nuclear power plant.
        · Hydroelectric power plants.
        · Gas and diesel engine based power plants.

·         Petroleum refineries

·         LNG terminals

·         Petrochemical and chemical plants

·         Oil and gas fields

·         Off shore gas processing platforms

·         CNG filling station

·         Electrical locomotives

·         Fertilizers plants

·         Metallurgical industry

·         Cement plants

·         Power utilizing equipments  

 

Item Code No.

Product Description

841950.90

Air Cooled Heat Exchangers

841990.90

Finned Tubes

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity *

Actual Production *

1. Heat Exchangers

MT

40000

20095

2. Finned Tubes

R.Mtrs

7920000

3380303

a) For captive consumption

 

 

3310850

b) For sales

 

 

69453

 

* Installed capacity and Production quantities have been certified by the management and not verified by the auditors, being technical matters.

 

 

GENERAL INFORMATION

 

Customers :

·         Oil and Natural Gas Corporation Limited

·         Indian Oil Corporation Limited

·         Reliance Industries Limited

·         Atlas Copco India Limited

·         Solar Turbine, USA

·         Bharat Heavy Electricals Limited 

·         Essar Oil Limited

·         Petronet LNG Limited 

 

 

 

No. of Employees :

691 (Approximately)

 

 

 

 

Bankers :

·         Axis Bank Limited

·         ICICI Bank Limited

·         IDBI Bank Limited

·         Kotak Mahindra Bank Limited

·         Standard Chartered Bank

·         State Bank of India

·         Yes Bank Limited

·         Barclays Bank PLC

 

 

 

 

 

Facilities :

SECURED LOAN

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

Working Capital

 

 

ICICI Bank Limited

169.800

165.931

IDBI Bank Limited 

176.796

126.047

State Bank of India

179.521

69.190

Barclays Bank PLC

100.000

66.757

Yes Bank Limited

67.571

60.000

Kotak Mahindra Bank Limited

48.175

115.000

Standard Charted Bank

50.000

0.000

Total

791.863

602.925

Term Loans

ICICI Bank Limited

0.000

10.886

IDBI Bank Limited 

70.928

100.969

Hire Purchase Loans

10.933

6.066

L and T Finance Limited

0.760

49.391

Madhya Pradesh Financial Corporation

23.772

29.688

Reliance capital Limited

45.140

0.000

Sub Total

151.533

197.000

Total

943.396

799.925

 

NOTES:

ICICI Bank Limited, IDBI Bank Limited, State Bank of India, Yes Bank Limited and Barclays Bank PLC are hereinafter collectively referred to as "the ICICI Consortium". It has been agreed by and between the ICICI Consortium and the Company that the primary security for the Working Capital Limits sanctioned by ICICI Consortium will be first charge on the Current Assets of the Company comprising Raw Materials, Components, Stock in Process, Finished Goods, Consumable Stores and Spares, Packing material, at their factory premises, or at such other places as may be permitted by the ICICI Bank Consortium in their discretion from time to time including goods in transit/shipment, book debts, outstanding monies, receivables, claims and bills etc. both present and future, wherever situated. Charges on the Current Assets rank pari passu among the member Banks of the Consortium. The Working Capital Loan is also secured by second charge rank pari passu on all fixed assets of the Company, immovable properties situated on Plot No. 1, 2, 24, 24-A, 24-B, 25, 26, 27, 28, A Sector, Industrial Area, Govindpura, Bhopal.

 

Mr. C E Fernandes, Mrs. Everlyn Fernandes and Mr. Bernard John, Directors of the Company have personally guaranteed the repayment of loans.

 

Further the Working Capital Facilities from State Bank of India is also secured by pledge of 6 Lacs Equity Shares of the Company held by Mr. C E Fernandes, Mrs. Everlyn Fernandes, Ms Irene Valentine and Ms Rachel Fernandes.

 

Term Loan from ICICI Bank Limited, are secured by way of first charge on equitable mortgage of immovable properties situated on plot no. 1, 2, 24, 24-A, 24-B, 25, 26, 27 and 28, A sector, Industrial Area, Govindpura, Bhopal and hypothecation of all the Fixed Assets of the Company situated thereon. The charge operates ranking pari-passu with the charges created / to be created in favour of the Company's Term Loan Lenders viz IDBI Bank Limited for Term Loan granted by them to the Company / to be granted by them in future under the loan agreement and Madhya Pradesh Financial Corporation for their Working Capital Term Loan. The loan is also secured by way of second charge on entire current assets of the Company, ranking pari-passu with Term Loan Lenders. Mr.C E Fernandes, Mrs. Everlyn Fernandes and Mr Bernard John, Directors of the Company have personally guaranteed the repayment of loans.

 

Further the above loan from ICICI Bank Limited is also secured by pledge of 1 Lac Equity Shares of the Company held by Mr. C E Fernandes

 

Corporate Loan of Rs.50.000 millions, Term Loan of Rs.100.000 millions and Funded Interest Term Loan along with the interest accrued and funded from IDBI are secured by equitable mortgage of immovable properties situated on plot no. 1, 2, 24, 24-A, 24-B, 25, 26, 27 and 28, A sector Industrial Area, Govindpura, Bhopal and hypothecation of all the fixed assets of the Company. The charge operates as first charge ranking pari-passu with the charges created / to be created in favour of the Company's Bankers viz ICICI Bank Limited for term loan and Working Capital facilities granted by them to the Company / to be granted by them in future under the loan agreement and Madhya Pradesh Financial Corporation for their Working Capital Term Loan. Mr.C E Fernandes, Mr. P.L. Mundhra and Mrs. Everlyn Fernandes Directors of the Company have personally guaranteed the repayment of loans.

 

Further both the above loans from IDBI Bank Limited are also secured by pledge of 13 lac Equity Shares of the Company held by Mr. C E Fernandes, Mrs. Everlyn Fernandes and Mr. P L Mundhra.

 

Working Capital Term Loan from Madhya Pradesh Financial Corporation, Indore is secured by equitable mortgage of immovable properties situated on Plot No. 1, 2, 24, 24-A, 24-B, 25, 26, 27 and 28, A Sector, Industrial Area, Govindpura, Bhopal and hypothecation of all the fixed assets of the Company situated thereon. The charge operates as first charge ranking pari-passu with the charges created in favour of IDBI Bank Limited for their term loans and funded interest and ICICI Bank Limited for their Working Capital Term Loan, Term Loan and funded interest and Mr. C E Fernandes, Mr. P L Mundhra, Mrs Everlyn Fernandes and Mr. Bernard John, Directors of the Company have personally guaranteed the repayment of loans. The above loan is collaterally secured by the entire fixed assets of the GEI Foods Limited.

 

Hire Purchase Loan from Finance Companies are secured by the assets financed.

 

Loans from L and T Finance Limited are secured by the assets financed.

 

UNSECURED LOAN

As on

31.03.2011

(Rs. in

Millions)

As on

31.03.2010

(Rs. in

Millions)

ICD and Others

456.135

61.334

Total

456.135

61.334

 

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

A.K. Khabya and  Company

Chartered Accountant

Address :

Bhopal, Madhya Pradesh, India

 

 

 

CAPITAL STRUCTURE

 

After As on 30.09.2011

 

Authorised Capital : Rs. 900.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs. 824.913 millions

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

23125000

Equity Shares

Rs.10/- each

Rs.231.250 millions

3000000

9% Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.30.000 millions

2555000

5 %Cumulative Redeemable Preference Shares

Rs.250/-each

Rs.638.750 millions

 

Total

 

Rs.900.000 millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

16624580

Equity Shares

Rs.10/- each

Rs.166.246 millions

2000000

9% Cumulative Redeemable Preference Shares

Rs.10/- each

Rs.20.000 millions

 

Add : Share application money

 

Rs.638.667 millions

 

Add : Warrant application money

 

Rs.19.000 millions

 

Total

 

Rs.843.913 millions

 

 

 

sFINANCIAL 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

843.913

196.246

178.761

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1049.308

830.071

578.012

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1893.221

1026.317

756.773

LOAN FUNDS

 

 

 

1] Secured Loans

943.396

799.925

641.623

2] Unsecured Loans

456.135

61.334

1.334

TOTAL BORROWING

1399.531

861.259

642.957

DEFERRED TAX LIABILITIES

36.200

35.000

32.500

 

 

 

 

TOTAL

3328.952

1922.576

1432.230

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

471.766

408.265

393.344

Capital work-in-progress

0.000

0.000

26.770

 

 

 

 

INVESTMENT

272.989

152.889

20.363

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1622.111
1065.293

864.404

 

Sundry Debtors
1407.281
788.186

630.586

 

Cash & Bank Balances
727.205
203.574

123.563

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
261.112
177.852

158.363

Total Current Assets
4017.709

2234.905

1776.916

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
658.761
389.392

318.016

 

Other Current Liabilities

652.340

488.096

472.457

 

Provisions
125.110

 

 

Total Current Liabilities
1436.211

877.488

790.473

Net Current Assets
2581.498
1357.417

986.443

 

 

 

 

MISCELLANEOUS EXPENSES

2.699

4.005

5.310

 

 

 

 

TOTAL

3328.952

1922.576

1432.230

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

3740.184

2493.803

2134.902

 

 

Other Income

20.549

7.959

10.529

 

 

TOTAL                                     (A)

3760.733

2501.762

2145.431

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Manufacturing & Other Expenses

2773.140

1673.818

1482.511

 

 

Employees Remuneration & Benefits

219.762

164.253

146.256

 

 

Directors’ Salary and Remuneration

35.580

34.465

32.924

 

 

Administrative Expenses

185.150

130.459

121.885

 

 

Selling Expenses

63.173

65.641

43.975

 

 

Deferred Revenue Expenses w/off

1.305

1.305

0.608

 

 

Prior Period Adjustments

14.522

3.100

0.388

 

 

Increase/Decrease in Stock

(94.364)

79.901

15.001

 

 

TOTAL                                     (B)

3198.268

2152.942

1843.548

 

 

 

 

 

Less

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

562.465

348.820

301.883

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

172.557

120.698

112.727

 

 

 

 

 

 

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

389.908

228.122

189.156

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

22.627

20.257

18.129

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

367.281

207.865

171.027

 

 

 

 

 

Less

TAX                                                                  (I)

123.321

65.000

67.356

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

243.960

142.865

103.671

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

327.325

209.856

124.641

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend on Preference Shares

1.800

3.900

1.500

 

 

Dividend on Equity Shares

16.625

17.683

14.275

 

 

Corporate Tax on Dividend

2.989

3.813

2.681

 

BALANCE CARRIED TO THE B/S

549.872

327.325

209.856

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods value

40.814

150.623

NA

 

TOTAL EARNINGS

40.814

150.623

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

192.511

66.893

151.138

 

 

Stores & Spares

16.650

9.811

0.510

 

 

Oil Lubricants

5.202

3.786

1.116

 

 

Repair and Maint. Machinery

0.000

0.000

0.986

 

 

Machinery

0.000

0.000

3.178

 

TOTAL IMPORTS

214.363

80.490

156.928

 

 

 

 

 

 

Earnings Per Share (Rs.)

14.39

8.32

7.14

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

600.250

1281.640

994.990

Total Expenditure

500.930

1170.190

867.040

PBIDT (Excl OI)

99.320

111.450

127.950

Other Income

3.210

1.900

4.65

Operating Profit

102.530

113.35

132.600

Interest

48.810

51.490

69.100

Exceptional Items

0.000

0.000

(3.28)

PBDT

53.720

61.860

60.220

Depreciation

5.690

6.370

6.130

Profit Before Tax

48.030

55.490

54.090

Tax

15.590

18.010

13.690

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

32.440

37.480

40.400

Net Profit

32.440

37.480

40.400

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
6.49
5.71

4.83

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
9.82
8.34

8.01

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.18
7.86

7.88

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.19
0.20

0.23

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.50
1.69

1.89

 

 
 
5.71

4.83

Current Ratio

(Current Asset/Current Liability)

 
2.80
 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business•

Yes

7) Promoter’s background

Yes

8) No. of employees

Yes

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

No

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

No

17) Major suppliers

No

18) Major customers

Yes

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter

--

23) Banking Details

Yes

24) Banking facility details

No

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

 

Accomplishments

 

Oil and Gas Sector:

 

·         Secured order from Gas Authority India Limited (GAIL) for supply of Air Cooled Heat Exchangers for Petrochemical Complex-II at Vijaypur (M.P.). Engineers India Limited (EIL) are the Engineering Consultant for the Project.

 

·         Secured order from Lanco Infratech Limited for the supply of Air Cooled Heat Exchangers for 1500 TPA Polysilicon Plant at Rajnandgaon, Chhatisgarh which is the first of its kind in the country. This product is a key raw material for making solar panels and electronic chips. Flour Daniel India is the Engineering Consultant for the Project.

 

·         Secured order from Indian Oil Corporation Limited (IOCL) Mathura for the supply of Air Cooled Heat Exchangers for Revamp of Fluid Catalytic Converter Unit (FCCU) and Propylene Recovery Unit (PRU). Tecnip is the Project Management  Consultant.

 

Power Sector:

 

·         Secured orders for Air Cooled Vacuum Steam Condensers (ACSC) totalling 1332 MW during the year.

 

·         Expanded their client base for ACSC - KVK Nagai Power, Simhadri Power, Shree Virangana Steels, Sravanthi Infratech, Tata Projects, Ultratech Cements etc.

 

·         Successfully commissioned ACSC for 150 MW Unit of Shree Mega Power at Beawar (Rajasthan). This is the first ACSC unit of such capacity installed in India.

 

·         Successfully commissioned 12 units of ACSCs at different locations totalling 300 MW.

 

 

Future Prospects

 

The Company caters to the entire spectrum of industries in the Energy Sector viz. Oil and Gas, Petroleum Refining, Power Generation, Transmission/ Distribution etc. and has emerged as one of the largest Air Cooled Heat Exchanger Company in Asia, providing innovative engineering systems and solutions.

 

The Company has enhanced its product and service offerings through a technology tie up with Innospin AG of Switzerland and will continue to target specific industrial segments having high growth potential as well as pursue opportunities in key global markets.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Economic overview

 

The world economy continued its recovery from the financial crisis of 2008-09. The growth rate was better than

expected but at varying speeds for different regions- USA 3.25%, Eurozone 1%, Japan 2.5% and emerging/

developing economies 6.75%.

 

India too weathered the global financial crisis well and its domestic demand has powered the vigorous recovery. The country’s growth rate (around 8%) remains among the strongest in the world. With the anticipated average annual compounded growth rate of 8.5%, India’s GDP is expected to be USD 1.4 trillion by 2017 and USD 5.0 trillion by 2025.

 

Industry Structure and Developments

 

The industrial production is an important indication of GDP growth in a developing economy like India. The core

sector comprising six major industries - crude oil, petroleum refinery products, coal, electricity, cement and steel

and having 26.68 percentage weight in the Index of Industrial Production (IIP), represents the industries they cater

to. In the year 2010-11, the core sector posted a growth of 5.90% as compared to 5.50% in the previous year. The outlook for the engineering and capital goods industry in which the Company operates remains positive.

 

Opportunities

 

Infrastructure investment has grown rapidly in India over the past few years and the government plans to double

the outlay on this sector from USD 500 billion in the five years ending 2011-12 to USD 1 trillion in the next five years. Private participation is expected to be around half of the total investment.

 

India is the world’s fifth biggest energy consumer and KPMG’s Oil and Natural Gas Overview, 2010 predicts rising

demand. At present, the country accounts for only 4% of global energy consumption though it has over 17% of

global population. The resultant increased demand for power is expected to be met by a combination of Thermal,

Nuclear, Solar and other plants as well as increased activity in the Oil and Gas sector.

 

Oil and Gas sector

 

The crude prices are expected to remain high in the near to medium term and consequently, prospects for Greenfield and brownfield projects in all segments of the Oil and Gas Sector are bright.

 

Power sector

 

The Twelfth Plan (2012-17) envisages a capacity addition of 1,05,000 MW with special focus on super critical

technology for thermal power plants and renewable energy.

GEI, through its innovative offerings is well positioned to benefit from the emerging opportunities in the energy sector as mentioned above. The Company has enhanced its product and service offerings through technology tie up with Innospin AG of Switzerland and will continue to target specific industrial segments having high growth potential as well as pursue opportunities in key global markets.

 

 

PERFORMANCE HIGHLIGHTS

 

The highlights of the financial performance of the Company for the year ended 31st March 2011 are as follows:

 

(i). Gross Turnover Rs. 4160.831 Millions, a rise of 54 % as compared to the previous year.

(ii). EBIDTA at Rs. 578.292 Millions, higher by 64 % over the previous year.

(iii). Net Profit (PAT) at Rs. 243.960 Millions, higher by 71 % over the previous year.

 

 

Credit Rating

 

Credit Analysis and Research Limited (CARE) has assigned the following credit rating for the Company

(a) For Short Term Debt Instruments: CARE A2 + (Single A Two Plus) (Strong degree of safety regarding timely

payment of financial obligations; carry low credit risk)

(b) Long/ Medium Term Debt Instruments: CARE A– (Single A Minus) (Adequate degree of safety regarding timely

servicing of financial obligations; carry low credit risk)

The ratings have helped the Company to obtain reduction in the interest rates from Banks/Financial Institutions.

 

 

 

UNAUDITED RESULTS (PROVISIONAL) FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2011

 

(Rs. in millions)

 

 

Particulars

 

Stand-Alone

Quarter ended 31.03.2011

(Unaudited)

Year ended 31.03.2011

(Unaudited)

1. (a) Gross Sales/Income from Operations

1007.286

2991.008

Less: Taxes and Duties

89.968

242.743

Net Sales/Income from Operations

917.319

2748.265

b) Other Operating Income

77.678

128.626

Total

994.996

2876.920

2. Expenditure

 

 

a) (Increase)/decrease in stock in trade and work in progress

(33.496)

(111.070)

b) Consumption of raw material

693.349

2046.110

c) Employees cost

73.848

222.774

d) Depreciation

6.134

18.198

e) Other Expenditure

133.340

380.345

f) Total

873.175

2556.357

 

 

 

3. Profit from Operations before Other Income, Interest and Exceptional Items (1-2)

121.821

320.534

4. Other Income

4.650

9.756

5. Profit before Interest and Exceptional Items (3+4)

126.471

330.291

6. Finance Charges

69.104

169.405

7. Profit after Interest but before Exceptional Items (5-6)

57.367

160.885

8. Exceptional items- Misc. Expenses W/o including prior period adjustments

(3.279)

(3.279)

9. Profit/ Loss (-) from Ordinary Activities before tax (7+8)

54.088

157.606

10. Tax expenses

13.690

47.282

11. Net Profit (+) / Loss (-) from Ordinary Activities after tax (9-10)

40.398

110.324

12. Extraordinary Items

0.000

0.000

13. Net Profit (+) I Loss (-) for the period (11-12)

40.398

110.324

14. Paid up Equity Share Capital (Face value of Rs. 10/- each)

166.246

166.246

15. Reserves excluding revaluation reserves

 

 

16. Earning Per Share (EPS)

 

 

Basic EPS before Extraordinary items

2.43

6.64

Diluted EPS after Extraordinary items

2.11

5.75

Basic EPS before Extraordinary items

2.43

6.64

Diluted EPS after Extraordinary items

2.11

5.75

17. Public Shareholding

 

 

- Number of shares

9741055

9741055

- Percentage of shareholding

58.59

58.59

18. Promoters arid promoter group Shareholding

6883525

6883525

a) Pledged/ Encumbered

 

 

-Number of shares

3000000

3000000

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

43.58

43.58

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

18.05

18.05

b) Non-encumbered

 

 

- Number of shares

3883525

3883525

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

56.42

56.42

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

23.36

23.36

 

Notes:

 

1.       The above financial results after review by the Audit Committee have been approved and taken on record by the Board of Directors at their meeting held on 3rd February 2012.

2.       The above results are subject to Limited Review by the Auditors.

3.       Consolidated financials include the provisional and unaudited results of GEI Power Limited, a wholly owned subsidiary of the Company.

4.       Previous year figures have been regrouped and rearranged where necessary to conform to the current period classification.

5.       The Accounting Standards (AS-17) relating to segment reporting has been complied with. As the gross income and profit from the other segments are below the norms prescribed in AS-17, separate disclosure is not required.

6.   Status of investor complaints: Opening Balance: Nil, Received during the quarter: 7 Disposed oft during the

      quarter 7, Closing balance: Nil

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2011

(Rs. in millions)

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at

their estimated value as under :

 

i) Guarantees and/or counter guarantees given by Banks

1147.018

ii) Corporate Guarantee given for M/s GEI POWER LIMITED

         IDBI Bank Limited

         Union Bank of India

         L and T Finance Limited

 

440.000

300.000

8.100

 

FIXED ASSETS:

 

·         Lease Hold Land

·         Building

·         Machinery

·         Auxiliary Equipment

·         Electrical Installation

·         Pattern

·         Furniture

·         Office Equipment

·         Computer

·         Vehicle

·         Software 

 

 

 

WEBSITE DETAILS

 

Company Overview

 

Subject was established in the year 1970 in the city of Bhopal in the Central Indian State of Madhya Pradesh.

 

Subject is today one of the leading Engineering and Manufacturing Company dealing with heat transfer equipments with a major thrust in Air Cooled Heat Exchangers and Air Cooled Steam Condensers. The Air Cooled Heat Exchangers are used for cooling of hot fluids using atmospheric air in the Oil and Gas Exploration, Production, Refining and Petrochemical Industry and also in the power plants as dry cooling tower as a replacement of conventional wet type cooling towers.

 

Air Cooled Vacuum Steam Condensers are revolutionary product being used in steam turbine power plants thereby eliminating Water Cooled Steam Condenser and Cooling Towers which consumes lot of water.

 

Subject has a total factory area of about 34.5 acres spread at two locations namely in Govindpura and Mandideep near Bhopal.

 

The total manpower strength of GEI is 650 which include qualified professional and experience workmen trained in various disciplines right from Basic Design, Detailed Design and Engineering, Procurement, Project Monitoring, Production Planning, Manufacturing, Quality Control, Logistics, Site Services and support functional like Finance, HR, Safety and Maintenance.

 

Subject holds U stamp certification, The National Board of Boilers and Pressure Vessel Inspector have provided R stamp certification and NB Marking. Heat transfer products designed manufactured and supplied by GEI have been installed at different locations around the Globe and are performing satisfactory at different locations in Africa, Europe, Middle East, South East and Far East Asian countries and in the Americas.

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

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

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.84

UK Pound

1

Rs.86.72

Euro

1

Rs.69.17

 

INFORMATION DETAILS

 

Report Prepared by :

DPK

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

49

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

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

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