MIRA
INFORM REPORT
|
Report Date : |
01.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN ELECTRONICS LIMITED |
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Registered
Office : |
D-11, Road No.28, Wagle Industrial Estate, Thane – 400 604, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
21.01.1964 |
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Com. Reg. No.: |
11-012835 |
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Capital
Investment / Paid-up Capital : |
Rs.169.360
millions |
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CIN No.: [Company Identification
No.] |
L99999MH1964PLC012835 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNEA05229A |
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PAN No.: [Permanent Account No.] |
AABCA0832C |
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Legal Form : |
Public Limited Liability Company. The Company’s Share are Listed on Stock
Exchanges. |
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Line of Business
: |
Design and
Manufacturing of Energy Conservation products – specializing in energy
efficient lighting solutions. |
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No. of Employees
: |
250 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (12) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a established company having moderate track. There appear
huge accumulated losses recorded by the company. However, trade relations are
reported to be fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and
secured 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced controls
on foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of
persistently high inflation and interest rates and little progress on economic
reforms. High international crude prices have exacerbated the government's fuel
subsidy expenditures contributing to a higher fiscal deficit, and a worsening
current account deficit. Little economic reform took place in 2011 largely due
to corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available RBI Defaulters’ list and the details of the
same are as under :
|
Borrowers’ Name : |
ASIAN ELECTRONICS LIMITED |
|
Address : |
D-11, Road No.28, Wagle Industrial Estate,
Thane-400604, Maharashtra, India |
|
Name of Individual : |
·
Ananthakrishnan
Sankaranarayanan ·
Arun Babulal Shah ·
Haresh Gunvantrai Desai ·
Haresh Gunvantrai Desai ·
Sohrab Rustom Framjee |
|
Name of Credit Grantors / Bank & Branch: |
SBI Global Factors |
|
Amount (Rs. In Millions) : |
24.700 |
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
D-11, Road No.28, Wagle Industrial Estate, Thane – 400 604, |
|
Tel. No.: |
91-22-25835504 - 09 |
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Fax No.: |
91-22-25827636 |
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E-Mail : |
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Website : |
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Corporate Office : |
1219, Maker Chambers V, Nariman Point, Mumbai – 400 021, |
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Lighting
Group HQ : |
50 Community Center, 2nd Floor, Naraina
Industrial Area, Phase - I, |
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Tel. No.: |
91-11-25894910/ 25894912 |
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Fax No.: |
91-11-25894911 |
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E-Mail : |
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Factory 1 : |
Plot No. 68, MIDC Industrial Area, Satpur, Nashik – 422 007, |
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Tel. No.: |
91-253-2365000-02 |
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Fax No.: |
91-253-2365010 |
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E-Mail : |
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Factory 2 : |
DTA Unit: Plot No.2, Survey No.1B/2C, Near Octroi Naka, Vilholi, Nashik – 422
010, |
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Factory 3 : |
EOU: Survey No.15, Plot No.1, |
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Tel. No.: |
91-253-2401971/72 |
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Factory 4 : |
HP Unit : Hadbast No.932, Khasra No.228, Village Jakhroda, P.O. Partha, Panchayat
– Narayani, Tehsil Kasauli, District Solan, Himachal Pradesh, India |
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Factory 5 : |
Silvassa Unit: Survey No.113/2/6, Tirupati Industrial Estate, Near |
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Branch Office : |
Located at: v Ahmedabad v
v Kolkata v Chennai v
v
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DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Arun B. Shah |
|
Designation : |
Executive Chairman |
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Name : |
Mr. Haresh G. Desai |
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Designation : |
Director |
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Name : |
Dr. Deepak Divan |
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Designation : |
Director |
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Name : |
Mr. Suresh Sharma |
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Designation : |
Alternate Director to Dr. Deepak Divan |
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Name : |
Mr. Dipankar De |
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Designation : |
Nominee Director of IDBI Bank Limited (upto 18.6.2010) |
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Name : |
Mr. D.G. Prasad |
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Designation : |
Director |
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Name : |
Mr. Hemendra Srivastava |
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Designation : |
Nominee Director of IDBI Bank Limited (upto 31.10.2010) |
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Name : |
Mr. S. Ananthakrishnan |
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Designation : |
Nominee Director of IDBI Bank Limited (upto 28.6.2011) |
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Name : |
Mr. S. Neelakanta Iyer |
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Designation : |
Executive
Director and Joint Chief Executive Officer (Manufacturing Operations) [w.e.f.
1.06.2011] |
|
|
|
|
Name : |
Mr. Rajesh Mehta |
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Designation : |
Executive
Director and Joint Chief Executive Officer (Technology and Finance) [w.e.f
1.06.2011] |
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|
|
Name : |
Mr. Rasik D Goradia |
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Designation : |
Executive Director
(Non Board Member) (Ceased to be Company Secretary and Compliance Officer
w.e.f. 31.3.2011) |
KEY EXECUTIVES
|
Name : |
Mr. Charudatta A. Kulkarni |
|
Designation : |
AGM (Finance and Legal) and Company Secretary (w.e.f. 01.04.2011) |
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|
Name : |
Mr. Atul Raj Yadav |
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Designation : |
Senior Area Manager, Jaipur |
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Name : |
Mr. Jinendra Shah |
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Designation : |
Co-Executive Director-Operations |
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Name : |
Mr. Snehal J. Shah |
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Designation : |
Joint Chief Financial Officer (Ceased to be Joint Chief Financial
Officer w.e.f. 31.7.2011) |
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|
Name : |
Mr. Suresh H. Shah |
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Designation : |
Chairman and
Managing Director |
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|
Name : |
Mr. Ashok Sharrna |
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Designation : |
Co-Executive
Director-Operations |
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Name : |
S. Neelakanta Iyer |
|
Designation : |
Joint Chief Executive Officer -
Manufacturing Operations, Executive Director |
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|
Name : |
Mr. Rajesh Mehta |
|
Designation : |
Joint Chief
Executive Officer - Technology and Finance, Executive Director |
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Name : |
P.S. Ahuja |
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Designation : |
Senior General
Manager-Chandigarh |
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Name : |
S. Bardhan |
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Designation : |
Assistant
General Manager, Kolkatta |
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|
Name : |
Anjan Chatterjee |
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Designation : |
Assistant
General Manager, Kolkatta |
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Name : |
R.K. Kaushik |
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Designation : |
Assistant
General Manager, |
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Name : |
M.K Nair |
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Designation : |
Senior General
Manager, Mumbai |
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|
Name : |
Mr. Santosh Singh |
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Designation : |
Assistant
General Manager, Gurgaon |
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|
Name : |
V.M. Sundaram |
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Designation : |
Senior General
Manager, Chennai |
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|
Name : |
Mr. Amit Kumar Sen |
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Designation : |
Assistant
Regional Manager, Guwahati |
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Name : |
Mr. Subash Soni |
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Designation : |
Vice President, |
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Name : |
Mr. D. R. Shetty |
|
Designation : |
Senior General Manager - Silvassa |
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|
Name : |
Mr. Deepak Marriya |
|
Designation : |
Chief Operation
Officer - Solan |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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|
Individuals / Hindu Undivided Family |
3320549 |
9.37 |
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Sub Total |
3320549 |
9.37 |
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(2) Foreign |
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|
Total shareholding of Promoter and Promoter Group (A) |
3320549 |
9.37 |
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(1) Institutions |
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Mutual Funds / UTI |
3200 |
0.01 |
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Financial Institutions / Banks |
2420 |
0.01 |
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Foreign Institutional Investors |
9000 |
0.03 |
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Sub Total |
14620 |
0.04 |
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(2) Non-Institutions |
|
|
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|
7419640 |
20.93 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
19789053 |
55.82 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
2967556 |
8.37 |
|
Any Others (Specify) |
1940741 |
5.47 |
|
|
692291 |
1.95 |
|
|
1248450 |
3.52 |
|
Sub Total |
32116990 |
90.59 |
|
Total Public shareholding (B) |
32131610 |
90.63 |
|
Total (A)+(B) |
35452159 |
100 |
|
|
0 |
0 |
|
(1) Promoter and Promoter Group |
0 |
0 |
|
|
0 |
0 |
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|
0 |
0 |
|
Total (A)+(B)+(C) |
35452159 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Design and
Manufacturing of Energy Conservation products – specializing in energy
efficient lighting solutions. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
CFL |
Nos. |
46,80,000 |
6,91,210 |
|
Ballast |
Nos. |
24,96,000 |
2,25,639 |
|
Streetlight and Highbay |
Nos. |
1,56,000 |
29,933 |
|
Retrofit and Conventation |
Nos. |
15,60,000 |
9,27,124 |
|
Retrofit Systems and Parts thereof (Export) |
Nos. |
3,12,000 |
1,48,205 |
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|
|
|
|
Notes:
1. The quantity of actual production is inclusive of goods produced by
processors.
2. Installed capacity and quantitative information regarding product
wise Sales, Opening and Closing Stocks and Production is as certified by
Directors and accepted by the Auditors as correct.
GENERAL INFORMATION
|
Customers : |
·
ITC Kakatiya Sheraton ·
Hotel Jeevandha Private Limited ·
Hotel Chalukya ·
Jaipur Golden Hospital ·
Medilink Hospital ·
Citycare Hospital and Research Centre (Private)
Limited ·
Supreme Woolen Mills ·
Birla Textile Mills Limited ·
Dharam Synthetics Limited ·
AP Secretariate ·
BSNL ·
Nuclear Power Corporation ·
Karnataka Power Corporation ·
Bharat Sanchar Nigam Limited ·
Brooks Laboratories Limited ·
Torrent Pharmaceuticals Limited ·
Adonis International Limited ·
I.T.I. Limited ·
Videsh Sanchar Nigam Limited ·
Tata Cummins Limited ·
National Thermal Power Corporation ·
Eveready Industries Limited ·
SRF Limited ·
The Kamal Co-operative Sugar Mills ·
Kothari Sugars and Chemicals ·
Modern Food Industries ·
Parle Product Limited ·
Mangalam Cements Limited ·
Associated Cement ·
Bihar Caustic and Chem ·
Deccan Mechanical and Chemical Inds Company
Limited ·
Citizen Bank ·
Reserve Bank of India ·
Kolkata Port Trust ·
Apollo Tyres Limited ·
D.A.V. College ·
Adesh Medical Institute |
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No. of Employees : |
250 (Approximately) |
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Bankers : |
v
Bank of v HDFC Bank Limited v UCO Bank v The Hongkong and Shanghai Banking Corporation Limited v IDBI Bank Limited v
State Bank of |
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Facilities : |
Notes: 1. Rupee term loan
of Rs.0.985 million (Previous year Rs.18.464 millions) from IREDA is secured
by [1] First charge
by way of hypothecation of assets acquired out of IREDA’s loan and Company’s
own funds under the scheme, both existing and future. [2] Second
charge on the immovable properties of the Company at [3] Personal
guarantee of the then Chairman. [4] Corporate
guarantee of a group Company [5] Pledge of
fixed deposit receipt of Rs. NIL (Previous Year Rs.18.166 millions) [6]
Hypothecation of receivables from state electricity boards of amount not
exceeding Rs.180.000 millions 2. Term Loan of
Rs.30.000 millions (Previous year Rs.60.867 millions) from UCO Bank is
secured by : [1] Assignment
of Letter of Credit of MSEDCL and hypothecation of receivables arising out of
MSEDCL lease rentals. [2] Exclusive
charge on ESCO receivables subject to first prior charge of IREDA to the
extent Rs 180.000 millions. [3] Exclusive
first mortgage charge on immovable properties and hypothecation charge on
movable fixed assets of the company excluding charge created in favour of
IREDA. [4] Pari-Passu
second charge on company’s current assets excluding ESCO receivables and
MSEDCL receivables. 3. Short term
loan of Rs.54.955 millions (Previous Year Rs.54.957 millions) from Bank of
India is secured by first charge by way of Equitable Mortgage on the
immovable properties of the Company at Thane. 4. Working
Capital Facilities of Rs.1528.185 millions (Previous year Rs.1145.418
millions) are secured by : [1] Hypothecation
of current assets except Esco receivables. [2] Second charge on immovable properties at 68, MIDC, Satpur,
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Sorab S. Engineer and Company Chartered Accountants |
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Solicitors : |
Legasis Partners |
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Subsidiary : |
v
AEL Projects Private Limited (w.e.f. 22.7.2010) v
AEL ESCO Private Limited (w.e.f. 21.7.2010) |
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Joint Venture : |
v
Midcom Magnetics Management Private Limited v
Asian Retail Lighting Limited (upto 23rd
March, 2011) |
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|
|
Associate : |
v
Unique Waste Plastic Management and Research
Company Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.5/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35453259 |
Equity Shares |
Rs.5/- each |
Rs. 177.266
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35452159 |
Equity Shares |
Rs.5/- each |
Rs. 177.261
Millions |
|
|
Less: Amount Recoverable from ESOP Trust |
|
Rs. 7.901
millions |
|
|
Total |
|
Rs. 169.360 Millions |
|
|
|
|
|
Note:
Subscribed and
Paid up capital includes:
i)
90,25,606 equity shares of Rs.5 each allotted as fully
paid bonus shares by capitalisation of Securities Premium Account Rs.37.331
millions and general reserve Rs.7.797 millions
ii)
During the year 2005-06, the Company has approved a
Scheme of Arrangement (‘the Scheme’) between Asian Raymold Lighting Private
Limited (‘ARLPL’) and the Company vide Board Resolution dated June 29, 2005 and
shareholders’ approval dated September 26, 2005. The said Scheme has been
approved during the year 2006-07 by the Honourable High Court, Mumbai and
Honourable High Court, Chennai respectively and the scheme has become effective
and consequently the Company has issued 8,00,000 Equity Shares of Rs.5/- each
to the shareholders of ARLPL, i.e. Asian Raymold Lighting Private Limited other
than the Company
AS ON 22.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80000000 |
Equity Shares |
Rs.5/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital : Rs. 198.161 Millions
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 |
169.360 |
149.503 |
145.337 |
|
|
2] Stock Options Outstanding |
0.000 |
44.303 |
0.000 |
|
|
3] Equity Share Warrants |
0.000 |
23.117 |
0.000 |
|
|
4] Reserves & Surplus |
2227.714 |
2088.818 |
2030.255 |
|
|
5] (Accumulated Losses) |
(771.106) |
0.000 |
0.000 |
|
|
NETWORTH |
1625.968 |
2305.741 |
2175.592 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1632.597 |
1279.956 |
1840.639 |
|
|
2] Unsecured Loans |
53.441 |
56.602 |
547.889 |
|
|
TOTAL BORROWING |
1686.038 |
1336.558 |
2388.528 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3312.006 |
3642.299 |
4564.120 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
334.587 |
378.387 |
423.589 |
|
|
Capital work in progress including capital advances |
77.916 |
113.665 |
110.002 |
|
|
|
|
|
|
|
|
INVESTMENT |
1108.896 |
1108.696 |
478.347 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
836.469
|
950.597
|
834.695 |
|
|
Sundry Debtors |
1316.787
|
1815.814
|
3047.295 |
|
|
Cash & Bank Balances |
37.531
|
96.870
|
56.719 |
|
|
Other Current Assets |
1.347
|
0.822
|
0.719 |
|
|
Loans & Advances |
662.893
|
713.355
|
729.477 |
|
|
MSEDCL Receivables |
0.000
|
0.000
|
411.409 |
|
Total
Current Assets |
2855.027
|
3577.458
|
5080.314 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
819.659
|
1341.421
|
1243.754 |
|
|
Other Current Liabilities |
230.381
|
183.842
|
275.720 |
|
|
Provisions |
14.884
|
11.138
|
8.658 |
|
Total
Current Liabilities |
1064.924
|
1536.401
|
1528.132 |
|
|
Net Current Assets |
1790.103
|
2041.057
|
3552.182 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.504 |
0.494 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3312.006 |
3642.299 |
4564.120 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
1454.902 |
2244.057 |
2117.929 |
|
|
|
Other Income |
18.269 |
34.137 |
22.378 |
|
|
|
TOTAL (A) |
1473.171 |
2278.194 |
2140.307 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Consumed |
1636.760 |
1706.391 |
1270.698 |
|
|
|
(Increase)/ Decrease in Inventories |
(26.298) |
(145.159) |
70.380 |
|
|
|
Personnel Expenses |
78.253 |
105.733 |
134.118 |
|
|
|
Manufacturing, Administrative and Other Expenses |
205.449 |
233.724 |
422.265 |
|
|
|
Exceptional Items |
80.463 |
44.303 |
(69.829) |
|
|
|
TOTAL (B) |
1974.627 |
1944.992 |
1827.632 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(501.456) |
333.202 |
312.675 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
247.197 |
281.180 |
213.012 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(748.653) |
52.022 |
99.663 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
43.985 |
43.916 |
46.082 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(792.638) |
8.106 |
53.581 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.005 |
3.304 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(792.638) |
8.101 |
50.277 |
|
|
|
|
|
|
|
|
|
Add |
EXCESS PROVISION
OF INCOME TAX OF EARLIER YEARS W/BACK |
-- |
21.295 |
-- |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER PRIOR PERIOD ITEMS AND TAX |
(792.638) |
29.396 |
50.277 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
21.532 |
(7.864) |
(58.141) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(771.106) |
21.532 |
(7.864) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports at FOB value |
83.995 |
207.146 |
85.267 |
|
|
TOTAL EARNINGS |
83.995 |
207.146 |
85.267 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
43.964 |
46.896 |
270.618 |
|
|
|
Capital Goods |
0.000 |
0.000 |
38.571 |
|
|
TOTAL IMPORTS |
43.964 |
46.896 |
309.189 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(24.48) |
0.97 |
1.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
150.900 |
419.500 |
121.200 |
|
Total Expenditure |
209.700 |
580.100 |
177.800 |
|
PBIDT (Excl OI) |
(58.800) |
(160.600) |
(56.600) |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
(58.800) |
(160.600) |
(56.600) |
|
Interest |
62.700 |
66.200 |
45.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(121.500) |
(226.800) |
(102.000) |
|
Depreciation |
10.800 |
10.200 |
11.500 |
|
Profit Before Tax |
(132.300) |
(237.000) |
(113.500) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(132.300) |
(237.000) |
(113.500) |
|
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 |
(132.300) |
(237.000) |
(113.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(53.80)
|
0.35
|
2.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(54.48)
|
0.36
|
2.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(24.85)
|
0.20
|
0.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.49)
|
0.00
|
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.69
|
1.24
|
1.80 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.68
|
2.33
|
3.32 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
No |
|
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 |
Yes |
|
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 |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
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 |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
OPERATIONS
During the year, the Company has achieved gross revenue of Rs.1473.200
millions as against Rs.2278.200 millions in the previous year.
Sales of lighting products comprises of domestic sales and export sales.
DOMESTIC SALES
The Company’s sales suffered significantly for want of working capital
and delayed recoveries from markets. The trading activities have yielded
marginal returns but in the process have used some of the inventories.
EXPORT SALES
The Export Sales was to the tune of Rs.84.000 millions for the year as
compared to Rs.207.100 millions in the previous year. The Company has
consciously focused on this segment and taken steps to grow exponentially
during the coming years. New products like the Power Products and the LED
Products were introduced to new customers in this year. During the year, a
patented Product ‘E2T5’ was exclusively developed complying to European
specifications. The Power Products and LED related special designs are likely
to cater to both the Export and Domestic markets and will play a major role in
the business prospects of the Company in the coming years.
FINANCE
As advised during the last report, the Company had approached its
lenders for rescheduling the debt over a longer period. The Company’s finances
further deteriorated due to lower capacity utilization, higher interest and
reduced margins. Faced with defaults, the Company approached CDR through its
largest creditor, IDBI Bank in Jan 2011. The proposal is pending approval of
the requisite number of creditors. The Board of Directors is of the opinion
that the Company’s survival solely depends on the approval of such a package.
The management is still in negotiation for such approval. In the meantime, the
Company is facing law suits from LIC Mutual Fund and from HSBC for recoveries
of their dues.
The enclosed statement forming part of the report gives details such as
Financial Position at a glance, Distribution of Income etc.
SUBSIDIARY
COMPANIES
In furtherance of the various objectives as mentioned in the last year’s
Report, the Company has effective from 1st October, 2009 transferred the
following Divisions to two 100% subsidiaries (SPVs) as under:
a. Business of ESCO Division, i.e. financing of Projects / Products to
customers on energy saving basis, and all activities related thereto together
with all related assets, liabilities and entitlements at book values as at the
time of transfer, on a going concern basis. The name of this 100% subsidiary is
AEL ESCO PRIVATE LIMITED.
b. Business of Projects Division, i.e. State Electricity Board Projects
and all activities related thereto together with all related assets,
liabilities and entitlements at book values as at the time of transfer on a
going concern basis. The name of this 100% subsidiary is AEL PROJECTS PRIVATE
LIMITED.
The Accounts for the year ended 31st March, 2010 and 31st
March, 2011 have incorporated all such transactions at the book value at the
time of transfer and the difference between the book values of identified
assets and liabilities of ESCO Division amounting to Rs.517.434 millions and of
Project Division amounting to Rs.112.915 millions are shown as investment in
the proposed subsidiaries.
The Company is looking out for strategic partners in these activities
once the fate of CDR is known.
RIGHT ISSUE
The Company has received the Observation Letter from SEBI bearing No.
CFD/DIL/ISSUES/SP/VB/17386/2010 dated 25th August, 2010. The
validity of the said SEBI Observation Letter was for one year from the date of
issuance ie. upto 24th August, 2011.
SEBI has directed Lead Manager M/s. Vertex Securities Limited, to update
the Draft Letter of Offer as per the observations enumerated by it in the said
Observation letter.
In the meanwhile, in order to get the approval of the Bankers to the
Company for the Company’s proposal for Corporate Debt Restructuring (CDR), the
issue size is proposed to be increased to Rs.689.000 millions. No sooner the
approval for proposed CDR is received, the updation of the Draft Letter of
Offer will be undertaken by the Company to ensure that the Rights Issue is
completed at the earliest.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
BUSINESS REVIEW
Asian Electronics has not only been the pioneer in the energy efficient
lighting industry but has also emerged as a premium quality brand with strong
brand leadership and a robust distribution channel. The business prospects of
the Company appeal even more when viewed in the backdrop of the new age Indian
consumer who demands quality products from a respected brand even if he has to
pay a premium for it. We, at Asian, strive to ensure that the trust shown by
their customers in them is not only maintained but further strengthened at any
cost. Quality wise, they are proud to proclaim that they are at par with the
products of the global leaders in the power saving lighting industry.
OPPORTUNITIES
IN INDIAN MARKET:
Their vast
marketing network, which has presence across the length and breadth of the
country, has taken the brand of the Company right into the hearts of the
customers. They feel that the performance of their vast marketing network can
be augmented significantly if certain factors hindering its performance are
addressed satisfactorily. These factors have been discussed in detail later in
this Report. The Company is stressing on increasing its range of product
offerings, which it believes, has immense business potential going forward.
With the huge populace becoming aware of the benefits of energy efficient
lighting, the industry in which they operate assures a stable and sustainable
growth over a long term.
IN INTERNATIONAL
MARKETS:
The products of
the Company have presence in the developed markets of US and
THREATS:
The business is subject to a set of hostilities arising out of the
following:
DEBT BURDEN OF SECURED AND UNSECURED LENDERS:
The Company has
been facing scarcity of working capital for quite some time. It has been
hindering the overall operations of the Company. After a long and protracted
spell of discussions, the Company’s financiers chose to explore Corporate Debt
Restructuring (CDR) mechanism to find an amicable solution. However, this is
yet to reach its conclusion. The Company sincerely hopes for the CDR proposal
to be approved without much delay failing which the Company would struggle to
survive the financial crunch it finds itself into.
MEETING CUSTOMER EXPECTATIONS:
In the industry
that the Company operates in, prompt deliveries are the order of the day. The customers
do not have mercy for “delayed” deliveries in the competitive world. The
paucity of Working Capital cycle has impacted business of the Company badly.
RECOVERIES OF OLD DUES:
Huge receivables
of the Company have been locked into litigations. The Company is pursuing the
recoveries vigorously and is hopeful of recovering them. However, the response
to legal process of recovery has been very slow and not likely to yield results
quickly.
GOVERNMENT AND SEMI-GOVERNMENT DUES:
Huge funds had got
stuck with various Municipal Corporations under the ESCO model of business and
the Maharashtra State Electricity Board in respect of the Capacitor Panels
under
GLOBAL EVENTS:
Chances of a
slowdown of the World Economy, mainly European economy, is quite possible for
the short term due to current global developments. As the Company is having
substantial share of its exports business concentrated in
COST OF RAW MATERIAL:
The volatility in
the prices of all the major raw materials may adversely affect profit margins
of the Company. The Company has adopted various measures to hedge itself from
impact of the price rise to minimize the effect of escalating prices of raw
materials.
FOREIGN EXCHANGE:
With the ever
increasing focus of the Company on export markets, any adverse movement in the
foreign exchange rates shall affect the margins of the Company. The Company has
adopted various measures to hedge itself from any such adverse movements.
ENTERING INTO NEW MARKETS OR NEW PRODUCTS:
As discussed they
have been entering into new geographies which will have its own challenges.
They are also planning to launch new products which may need new policies. The
new initiatives will bring new challenges in near future. They believe that
they have sufficient management bandwidth to pass through these cycles with
past experiences. They are also putting in place various safeguards to ensure
that they do not encounter any unexpected surprises.
Amidst the
adversity as above, the management has kept a simple goal of building current
businesses as the first priority and has achieved the following:
a. Created an island
of customers to service with their own support of Working Capital in overseas
and local markets.
b. built
commercially viable business opportunities in new products.
c. took recovery
of stuck assets as a special project and survive the rot.
d. reduced
overheads to almost negligible in relation to size of the business.
The markets too
have seen violent fluctuations in material prices and hence availability.
However, the
menace of unorganized trade (cheaper imported products) seems to be on wane. This
development has been heartening for the Company. But the Company cannot let its
guard down.
Their aim is to
bring in stability in short run and be an established contract manufacturer in
due course of time.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
|
PARTICULARS |
31.03.2011
(Rs. In millions) |
31.03.2010
(Rs.
In millions) |
|
Claims against the Company not acknowledged as debts – Note (a) |
107.720 |
99.059 |
|
Guarantees given by the bankers on behalf of the Company |
116.902 |
165.171 |
|
Corporate Guarantee given by the Company on behalf of a third party |
30.000 |
30.000 |
|
Bills/LC discounted with banks |
65.726 |
71.685 |
|
Disputed income tax demand – Note (b) |
297.357 |
151.525 |
|
Disputed Sales tax demand |
0.000 |
7.705 |
|
TOTAL |
617.705 |
525.145 |
Notes:
a.
The above claims include a dispute with a finance
company relating to lease transactions entered in the year 1997. These disputes
were under arbitration. During the year 2005-2006, awards were given by the
arbitrator directing the Company to compensate the finance company for the
losses suffered by them due to disallowances of certain claims. The award also
stipulated that the finance company should refund the amount to the Company on
succeeding in further appeals. The Company’s Arbitration Petition in the High
Court of Bombay for setting aside the award passed by the Honourable Arbitrator
on 23rd March 2006 has been dismissed. Aggrieved by the said order the Company
has preferred an appeal in the Second Bench of the Honourable High Court of
Mumbai, which was also dismissed.
Aggrieved by the said order of the 2nd Bench of the High Court, the Company
has filed Special Leave Petitions (Civil) No. 14865/2007 and No. 15093/2007.
The Honourable Supreme Court granted an interim stay on the impugned orders on
deposit of Rs.20.000 millions with the Supreme Court Registry which the Company
has deposited. The matter is pending in the Supreme Court.
b.
The Company has not provided for disputed tax
liability of Rs.297.357 millions (Previous year - Rs.151.525 millions) arising
from disallowances made in assessments which are pending with Appellate
Authorities for its decision.
UNAUDITED
FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED 31ST DECEMBER 2011
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Cumulative Up to
December |
|
|
|
|
31.12.2011 (Unaudited) |
30.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
1. |
(a) Net Sales/Income from Operations |
120.300 |
417.900 |
687.300 |
|
|
(b) Other Operating Income |
0.900 |
1.600 |
4.300 |
|
|
Total Revenue |
121.200 |
419.500 |
691.600 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
(Increase) / Decrease in Stock in Trade |
(59.700) |
29.500 |
(1.600) |
|
|
Consumption of Raw Materials |
68.100 |
61.100 |
169.500 |
|
|
Purchase of Traded Goods |
115.000 |
381.600 |
566.100 |
|
|
Employees Cost |
15.900 |
17.600 |
53.600 |
|
|
Depreciation |
11.500 |
10.200 |
32.500 |
|
|
Other Expenditure |
38.500 |
90.300 |
180.00 |
|
|
Total |
189.300 |
590.300 |
1000.100 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
(68.100) |
(170.800) |
(308.500) |
|
|
|
|
|
|
|
4. |
Other Income |
-- |
-- |
-- |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
(68.100) |
(170.800) |
(308.500) |
|
|
|
|
|
|
|
6. |
Interest |
45.400 |
66.200 |
174.300 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
(113.500) |
(237.000) |
(482.800) |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
(113.500) |
(237.000) |
(482.800) |
|
|
|
|
|
|
|
10. |
Tax Expense |
-- |
-- |
-- |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
(113.500) |
(237.000) |
(482.800) |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
(113.500) |
(237.000) |
(482.800) |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
169.400 |
169.400 |
169.400 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
(3.20) |
(6.68) |
(13.62) |
|
|
b) Basic and diluted EPS after extraordinary items |
(3.20) |
(6.68) |
(13.62) |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
32131610 |
32131610 |
32131610 |
|
|
- Percentage of Shareholding |
90.63% |
90.63% |
90.63% |
|
|
|
|
|
|
|
18. |
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 Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
3320549 |
3320549 |
3320549 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
9.37% |
9.37% |
9.37% |
Notes:
1. As per approval of the shareholders of the Company under Section 293 (1) (a) of the Companies Act, 1956, obtained through postal ballot on 22nd May, 2010, the Company has effective from 1st October, 2009 transferred the businesses of two divisions to two 100 % subsidiaries, subject to requisite approvals being obtained from the concerned Statutory Authorities and the Company’s lenders and creditors. The company had applied for approvals of secured/unsecured lenders. However one of the lenders has informed the Company that they are not agreeable to the transfer of the businesses of the two divisions to the two 100% subsidiaries and has declined to give its approval. Besides, the Lead bank of the Consortium for Working Capital has informed the Company not to proceed with hiving-off of assets without the written consent of the Consortium Banks. Consequently, the Company continues to be liable to the lenders for the Term Loans and Unsecured Redeemable Non-Corivertable Debentures transferred to the subsidiary companies. The Company has not provided interest on the above for the quarter. Therefore, the company will continue to be liable to the lenders for the Loans/Unsecured Debentures transferred to the two 100% subsidiaries together with interest thereon. Final decision of the CDR Empowered Group on the restructuring proposal of the Company is awaited.
2. The reference for Corporate Debt Restructuring (CDR) has
been made recently under the CDR mechanism, instituted by Reserve Bank of
The salient features of the Restructuring Proposal submitted by the Company to CDR Cell which were discussed at the Joint Lenders Meeting held on 30th January, 2012 are as under:
a. The CDR Leaders will consider 1st October, 2011 as the cut-off date.
b.
The Liabilities appearing in the Company’s Balance
Sheet and on its wholly owned subsidiary's Balance Sheet of AEL ESCO Private
Limited (AEL ESCO) will be taken together for the exercise.
c.
The debt obligations will be discharged by way of
i)
"Upfront Payment" i.e. the payment due to
be paid at an aggregate amount of Rs. 730.600 Millions (excluding Term Loan of
Rs.665.000 Millions of AEL ESCO) over a period of 18 months without any further
interest.
ii)
Issue of Equity Shares up to Rs. 121.800 Millions
at the same price at which the new Investors will invest in the Company's fund
raising exercise.
iii)
Issue of Preference Shares redeemable at the end of
3 years for an aggregate amount of Rs. 355.400 Millions.
iv)
One Bank will opt for One Time Settlement (OTS) on
a separately agreed amount.
The above Debt repayment programme will result into reduction of the
Company’s Liability.
d.
The Company will implement the package by
approaching the High Court at Mumbai under Sections 391 to 394 of the Companies
Act, 1956 and will take all such steps as may be stipulated by law and the
package which will include:-
i)
Raising Equity/Debt or tong term Advances from
Buyers to meet with payment obligations.
ii)
Transferring Surplus Assets meant for disposal
(Thane Unit) to a SPV
iii)
Transferring other Assets like Doubtful
Receivables, Advances, Business Interest where the businesses have not been
operative, which may need separate administrative set up and efforts for
recovery to a SPV
iv)
Restructuring any other Liability or Asset.
e.
In addition to the CDR Lenders, the Company has
also approached a non-CDR Lender
who is a part of the consortium and two non-CDR Institutional lenders for a
repayment programme as envisaged in the CDR package which may result in
adjustments to the Assets and Liabilities of the Company.
The above proposals are yet to be approved by the CDR Empowered Group
which will have an effect on the Company's Financial Statements.
3. Due to current
mismatch of inflows' and outflows, compounded by delayed recoveries of certain
stressed assets, as enumerated in Note No. 4 below, the debt servicing by the
Company has been adversely affected. As a result, action has been initiated by
some of the lenders of the, Company. LIC Mutual Fund has filed a petition in
the Bombay High Court for winding up of the Company for nonpayment of its dues.
The matter is being heard and the Company is representing its case. Bank of
India has served upon the Company a Notice under Section 13(2) of The Securitization and
Reconstruction of Financial Assets and Enforcement of Security Act, 2002 for
repayment of dues. Also other banks have sent Demand Notices to the Company for
repayment of their dues. Final decision of the CDR Empowered Group is awaited.
4. Consequent to a
review made by the Management of the various Assets of the Company, the
Management is of the opinion that special efforts over a period of time would
be needed for recovery of the following stressed assets which would have an
impact on the results of the Company for the quarter:-
a.
Diminution in the value of investments in Foreign
Companies Rs. 0.777 Million, where the local Managements have deserted the
Companies and the businesses have been closed down.
b.
Diminution of value if any in the investments in
Unique Waste Plastic Management and Research Company Private Limited of Rs.
436.020 Millions where the pending disputes with minority shareholders need to
be resolved to recover the value of the investments held by the Company.
c.
Inventories of Rs. 793.015 Millions includes Rs.
613.015 Millions of old / unusable stocks, where the Product Lines are
discontinued.
d.
Sundry Debtors considered good includes Rs. 437.609
Millions of old Outstanding where the recovery may happen only after due legal
actions and settlements of counter claims, if any, which cannot be determined.
e.
Loans and Advances considered good includes Rs. 335.882 Millions of old
debit balances where the same may be recovered in the form of assets or will be
settled subject to counter claims, if any, which cannot be determined.
f.
Cash and Bank balances include old unreconciled
debits in certain bank, accounts which may not be recoverable /realisable.
Non or delayed recoverability of the above Stressed Assets and
inadequacy of accruals have adversely affected the debt servicing by the
Company and also led to operating losses and erosion of liquidity. The
management is of the view that the above stressed assets of various classes may
need provision in due course the extent of which cannot be determined at
present. Consequently they have been shown as considered good and no provision
has been made for the same.
The management is of the view that the future viability of the Company
and its 'going concern' assumption would depend on the timely approval of the CDR
to the Company's restructuring proposal.
5. Other
Expenditure includes Bad Debts written off Rs. 56.674 Millions
6. Segment
reporting as required under AS - 17 is not applicable for the year, as more
than 90% of the revenue comes from a single business segment of Lighting
Products / Systems. There is only one geographical segment.
7. The above Unaudited Financial Results for the quarter, were reviewed by
the Audit Committee and taken on record by the Board of Directors of the
Company at their respective Meetings held on 151h February, 2012.
8. There were no investor complaints pending at the beginning of the
quarter. 11 Complaints/Requests received during the quarter were duly attended.
There were no complaints pending at the end of the quarter.
FIXED ASSETS
Tangible Assets
v
Free
v Lease Hold
v
v Flat
v Plant and Machinery
v Furniture and Fixtures
v Vehicle / Cycle
Intangible Assets
v Goodwill
v Patents and Trademarks
v Product Development Cost
v Software
WEBSITE DETAILS:
HISTORY
- Established in 1964
- Management change in 1980
- Diversification into Lighting Industry in 1998
PROFILE
Subject is involved in Design and Manufacturing of Energy Conservation Products, specialising in energy efficient lighting solutions.
With its world-class Manufacturing
Facility at Nashik (
Subject was awarded the
AICPA award for being the most investor rewarding company in 1996.
Subject’s financial model of "Pay from savings" has been recognized
as one of the best by US Agency for International Development (USAID) in
conjunction with other official agencies. It is documented in their report on
"Strategies of Financing Energy Efficiency".
Subject with its global presence is propagating the use of energy efficient and
intelligently controlled lighting systems across the world.
MANUFACTURING
FACILITY
NASHIK UNIT:
Subject has a state of the art world class manufacturing
facility at Nashik, 160 kms (100 miles) from
The facility also houses the R and D unit carrying out intensive work to find better ways to save energy at lesser costs. Their strong focus on R and D has been a driving force to be a leading player in energy efficient lighting systems and solutions.
BUSINESS DESCRIPTION
Subject is an India-based company. The Company is engaged in designing and manufacturing of energy conservation products, specializing in energy efficient lighting solutions. It operates in a single segment, which includes the Lighting Products / Systems. The Company's businesses include domestic lighting, exports lighting and power products, ESCO funding, projects, and research and development. Its domestic lighting business has a retail network of over 800 counters and also operates through a joint venture with Future group. During the fiscal year ended March 31, 2010 (fiscal 2010), the light emitting device (LED) segment was added to the domestic lighting portfolio. As of March 31, 2010, the Company had tied up major contracts with Innovolt Inc, United States, for handling LED technology, and LED Company, United States, for the supply of parking, garage and street lights with base of LED. During fiscal 2010, E2T5 was developed based on European specifications. For the fiscal year ended 31 March 2010, subject's revenues totaled RS2.5B. Net loss totaled RS13.8M. Results are not comparable as the company has not reported the prior year financials. Subject is an India-based company engaged in designs, manufactures, installs and maintains energy conservation products specializing in energy efficient lighting solutions.
Manufacture and distribution of MFD capacitors, LT power capacitors, LT switched capacitors, HT capacitors and substation load management systems, multilayer metallised polypropylene film, polyester film and static energy meters.
BOARD OF DIRECTORS
Arun Babulal Shah
Executive Independent
Chairman of the Board
Mr. Arun Babulal Shah is Executive Independent Chairman of the Board of subject He is director of Indage Vintners Limited, Indage Restaurants and Leisure Limited., Sirus Capital Services Limited, Indage Hotels Limited, Himachal Indage Limited., Prime Securities Limited, Prime Broking Company (India) Limited, Cybertech Systems and Software Limited, Seabuckthorn Indage Limited, Prime Commodities Broking Company (India) Limited, Asian Retail Lighting Limited and Home Lighting India Limited.
Haresh Gunvarntrai
Desai
Non-Executive
Independent Director
Mr. Haresh Gunvarntrai Desai is Non-Executive Independent Director of subject Mr. Desai is a Chartered Accountant by profession and partner of A.V. Rajwade and company, noted Forex and Risk Management Consultants. His other Directorships are Indage Vintners Limited., Indage Restaurants and Leisure Limited, Arsh Owners and Advisors Limited
Deepak Divan
Non-Executive
Independent Director
Dr. Deepak Divan, Ph.D., is Non-Executive Independent
Director of subject. Dr. Divan is Founder and Chairman of Innovolt Inc., an
D.G. Prasad
Non-Executive
Independent Director
Mr. D. G. Prasad is Non-Executive Independent Director of
subject since August 29, 2009. Mr. Prasad is a Chartered Accountant and had
been a career banker for over 33 years. After being with Canara Bank for over 8
years, Mr. Prasad served Exim Bank for over 25 years having joined in 1983, in
its formative phase. In Exim Bank, he held various positions including as the
Chief General Manager heading Corporate Banking, Agri Business and SME Business
Groups of the Bank. He holds considerable in trade finance, international
finance, merchant banking, corporate strategies, mergers and acquisitions, loan
syndications, fbrfaiting, international negotiations and co-financing with
multilateral agencies. He was trained in 'Treasury Management' at Credit
Suisse,
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] 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. 52.69 |
|
|
1 |
Rs. 85.71 |
|
Euro |
1 |
Rs. 68.14 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
|
12 |
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.