MIRA
INFORM REPORT
|
Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
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Registered
Office : |
3 Walchand Terrace, Opposite Air Conditioned Market, Tardeo, Mumbai –
400 034, |
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Country : |
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Financials (as
on) : |
30.09.2012 |
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Date of
Incorporation : |
25.11.1908 |
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Com. Reg. No.: |
11-000291 |
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Capital
Investment / Paid-up Capital : |
Rs. 76.140 Millions |
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CIN No.: [Company Identification
No.] |
L74999MH1908PLC000291 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMW02073B |
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PAN No.: [Permanent Account No.] |
AAACW0541M |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
The company's principal activities are engineering, fabrication and manufacture of machineries for sugar plants, cement plants and boilers, heavy duty gears, mineral processing, special and general engineering equipments. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 10000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having a satisfactory
track record. There appears dip in its sales and profitability seems to be
low. However, networth of the company is strong. The promoter seems to be
experienced businessmen. Trade relations are reported to fair. Business is active. Payments are
reported to be slow. The company can be considered for normal business dealings at usual trade
terms and condition. |
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 |
|
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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: A+ |
|
Rating Explanation |
Having adequate degree of safety regarding timely servicing of
financial obligation. It carry low credit risk. |
|
Date |
December, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
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 : |
3 Walchand Terrace, Opposite Air Conditioned Market, Tardeo, Mumbai –
400 034, |
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Tel. No.: |
91-22-23630097/ 40287109/ 23692295 |
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Fax No.: |
91-22-23634527 |
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E-Mail : |
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Website : |
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Pune Office : |
Walchand House,
15/1/B-2, Kothrud, Pune – 411038, |
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Factory 1 : |
Walchandnagar,
District Pune, |
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Factory 2 : |
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Tel. No.: |
91-2163-227201 /
227316 |
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Fax No.: |
91-2163-227205 |
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E-Mail : |
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Factory 3 : |
Attikola,
District Dharwad - 580003, |
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Tel. No.: |
91-836-2448565/
2447359/ 2442382 |
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Fax No.: |
91-836-2448508 |
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E-Mail : |
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Marketing and Project Office: |
Walchand House, 167A, 2/8+2/9, |
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Tel. No.: |
91-20-30252400 |
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Oil and Gas : |
215- Raikar Chambers, Govandi (East), Mumbai – 400 088, |
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Tel. No.: |
91-22-25502807/25502808 |
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Fax No.: |
91-22-25502804 |
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E-mail : |
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Branch Office : |
Located at: ·
Hyderabd ·
Chennai ·
Kolkata |
DIRECTORS
As on: 30.09.2012
|
Name : |
Mr. Chakor Lalchand Doshi |
|
Designation : |
Chairman |
|
Address : |
Neela House, 2nd Floor, M. L. Dahanukar Marg, Mumbai – 400
026, |
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Date of Birth/Age : |
15.09.1948 |
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Date of Appointment : |
15.05.1979 |
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DIN No.: |
00210949 |
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Name : |
Dr. Prahlad Kumar Basu |
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Designation : |
Director |
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Address : |
The Retreat, Bungalow No. 460, Sector 15A, Noida (Uttar Pradesh), Off |
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Date of Birth/Age : |
16.12.1931 |
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Date of Appointment : |
18.12.1990 |
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DIN No.: |
01293663 |
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Name : |
Mr. Dilip Jayantikumar Thakkar |
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Designation : |
Director |
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Address : |
12, Acropolis-B, Little |
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Date of Birth/Age : |
01.10.1936 |
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Date of Appointment : |
10.03.2003 |
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DIN No.: |
00007339 |
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Name : |
Mr. Arjun Uttamchand Rijhsinghani |
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Designation : |
Director |
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Address : |
172-B, Shivalik, Near Malviya Nagar, |
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Date of Birth/Age : |
13.11.1932 |
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Date of Appointment : |
19.04.1994 Additional Director 24.04.2006 |
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DIN No.: |
00177091 |
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Name : |
Dr. Anil Purushottam Kakodkar |
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Designation : |
Director |
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Address : |
5/1104, Accolade Co-Operative Housing Society, Hajuri Dargah Marg, Behind
LIC, Thane (West) – 400 604, |
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Date of Birth/Age : |
11.11.1942 |
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Date of Appointment : |
Additional Director 27.12.2010 |
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DIN No.: |
03057596 |
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Name : |
Mr. Ghyanendra Nath Bajpai |
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Designation : |
Director |
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Address : |
131, Shaan Apartemnts, Kashinath Dhuru Marg, |
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Date of Birth/Age : |
06.07.1942 |
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Date of Appointment : |
Additional Director 27.12.2010 |
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DIN No.: |
00946138 |
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Name : |
Mr. Jaysing Laxmanrao Deshmukh |
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Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
185, Mahatma Housing Society, Kothrud, Pune – 411 029, |
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Date of Birth/Age : |
03.05.1949 |
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Date of Appointment : |
01.04.2004 |
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DIN No.: |
00267467 |
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Name : |
Mr. G. K. Pillai |
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Designation : |
Managing Director and CEO |
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Name : |
Mr. Chirag Chakor Doshi |
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Designation : |
Managing Director |
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Address : |
Neela House, 4th Floor, M. L. Dahanukar Marg, Mumbai – 400
026, |
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Date of Birth/Age : |
22.04.1974 |
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Date of Appointment : |
25.11.2007 |
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DIN No.: |
00181291 |
KEY EXECUTIVES
|
Name : |
Mr. Giriraj Sharan Agrawal |
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Designation : |
Company Secretary |
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Address : |
40, Walchand Terraces, |
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Date of Birth/Age : |
04.12.1959 |
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Date of Appointment : |
30.01.2009 |
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PAN No.: |
AACPA6619H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
|
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|
|
|
|
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|
80280 |
0.21 |
|
|
15471923 |
40.64 |
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|
386410 |
1.01 |
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|
386410 |
1.01 |
|
|
15938613 |
41.87 |
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|
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|
5000000 |
13.13 |
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|
5000000 |
13.13 |
|
Total shareholding
of Promoter and Promoter Group (A) |
20938613 |
55.00 |
|
(B) Public
Shareholding |
|
|
|
|
|
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|
6500 |
0.02 |
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|
182890 |
0.48 |
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|
12000 |
0.03 |
|
|
1962476 |
5.15 |
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|
11925 |
0.03 |
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|
2175791 |
5.72 |
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|
|
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|
1696273 |
4.46 |
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|
|
|
|
|
12289489 |
32.28 |
|
|
282081 |
0.74 |
|
|
687958 |
1.81 |
|
|
474027 |
1.25 |
|
|
6630 |
0.02 |
|
|
187006 |
0.49 |
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|
5870 |
0.02 |
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|
14425 |
0.04 |
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|
14955801 |
39.28 |
|
Total Public shareholding
(B) |
17131592 |
45.00 |
|
Total (A)+(B) |
38070205 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
38070205 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company's principal activities are engineering, fabrication
and manufacture of machineries for sugar plants, cement plants and boilers,
heavy duty gears, mineral processing, special and general engineering
equipments. |
PRODUCTION STATUS (AS ON : 30.09.2011)
|
Particulars |
Unit |
Installed
|
Production
|
|
Heavy Engineering Division |
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|
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|
Sugar Mill
Machinery |
Units |
-- |
2 |
|
High Speed
Centrifugals |
Units |
-- |
57 |
|
Gear & Gear
Boxes |
Sets |
-- |
63 (MT 1148) |
|
Water Tube
Boilers |
Units |
-- |
2 |
|
Cement Making
Plants |
Units |
-- |
3 |
|
Foundry Division : |
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|
|
|
Castings |
M.T |
9000 |
5502 |
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Precision Instruments Division : |
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|
|
Pressure/Temperature
Gauges |
Nos. |
-- |
606912 |
(D) (i) (a) The installed capacity of Heavy Engineering
Division covers various items and hence given in terms of machine hours
capacity based on double or triple shift as the case may be.
|
Particulars |
Unit |
Installed
Capacity |
|
Lathe |
Per annum |
182529 |
|
Boring and Hobbing |
Per annum |
192321 |
|
Drilling |
Per annum |
162792 |
|
Gear Cutting and Grinding |
Per annum |
50949 |
|
Slotting |
Per annum |
26163 |
|
Planning |
Per annum |
32742 |
|
Milling |
Per annum |
39474 |
|
Furnace |
Per annum |
105264 |
|
Other Machine Tools |
Per annum |
189108 |
(b) Installed capacity of Foundry Division
Workshops other than for Castings covers various items and hence given in terms
of machine hours capacity based on the shifts.
|
Particulars |
Unit |
Installed
Capacity |
|
Lathe |
Per annum |
210432 |
|
Boring and Hobbing |
Per annum |
93023 |
|
Drilling |
Per annum |
146688 |
|
Gear Cutting and Grinding |
Per annum |
9792 |
|
Slotting |
Per annum |
9792 |
|
Planning |
Per annum |
19488 |
|
Milling |
Per annum |
137088 |
|
Furnace |
Per annum |
53856 |
|
Other Machine Tools |
Per annum |
73152 |
Note: The installed capacity is as certified by
the Management and accepted by the Auditors, this being a technical matter.
(ii) The break-up
of Production is :
|
Particulars |
Unit |
Actual
Production |
|
Captive |
MT |
300 |
|
Outstanding Customer’s Castings |
MT |
5202 |
(iii) The nature
of products under Heavy Engineering Division is such that it is not possible to
evaluate the quantitative data in exact terms.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· State Bank of India · Bank of India · ING Vysya Bank Limited · The Hongkong and Shanghai Banking Corporation Limited |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
K.S. Aiyar and Company Chartered Accountant |
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Enterprises over
which any person described in (i) or (ii) above are able to exercise significant
influence : |
• Bombay Cycle and Motor agency Limited • Vinod Shashank Chakor Private Limited • Walchand Great achievers Private Limited • Chirag Enterprises • Walchand Kamdhenu Commercials Private Limited • Indpro Electronic System (India) Private Limited. • Walchand Chiranika Trading Private Limited • Walchand Engineers Private Limited • Chiranika Enterprises • Walchand Projects Private Limited • Chiranika Corporation • Walchand Power Systems Private Limited • Chiranika Properties • Walchand Oil and Gas Private Limited • Walchand Botanicals Private Limited • Walchand Leisure Realty Private Limited • Rodin Holdings Inc. • Walchand BMH Private Limited • olsson Holdings Inc. • Walchand Solar Private Limited |
CAPITAL STRUCTURE
As on: 30.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.2/- each |
Rs. 240.000 Millions |
|
50000 |
10% Cumulative Preference Shares |
Rs.100/- each |
Rs. 5.000 Millions |
|
50000 |
Preference Shares |
Rs.100/- each |
Rs. 5.000 Millions |
|
|
Total |
|
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38070205 |
Equity Shares |
Rs.2/- each |
Rs. 76.140
Millions |
|
|
|
|
|
(a) Reconciliation of number of shares outstanding:
|
Equity Shares of Rs. 2 each |
Number of Shares |
Amount in
Millions |
|
At the beginning of the year |
38070205 |
76.140 |
|
Movements during the year |
-- |
-- |
|
At the end of the year |
38070205 |
76.140 |
(b) Terms and Rights
Attached To Equity Shares
The Company has only one class of equity shares having par value of Rs. 2 per share. Each shareholder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to approval of the shareholders in the ensuing Annual General meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(c) Aggregate Number
of Bonus Shares Issued, Shares Issued for Consideration other than Cash During
the Period of Five years Immediately Preceding the Reporting Date:
|
Particular |
Number of Shares |
|
Equity shares issued as bonus shares out of Share Premium, General reserve and Capital reserve |
15022530 |
|
Equity shares allotted to the allottees of the warrant on Preferential basis upon exercise of conversion option by them (inclusive of 4,000,000 equity shares issued as bonus and included in Sr. No. 1 above) |
8000000 |
|
Equity Shares issued under employee Stock Purchase Scheme, 2008 (ESPS) at par to the permanent employees |
25145 |
(D) Details of
Shareholders Holding More Than 5% In The Company
|
(Equity shares of Rs. 2 each fully paid up) |
Number of Shares |
% of holding |
|
Walchand Kamdhenu Commercials Private Limited |
9869673 |
25.91 |
|
Walchand Great Achievers Private Limited |
5260160 |
13.82 |
|
Rodin holdings inc. |
3000000 |
7.88 |
|
Olsson holdings inc. |
2000000 |
5.25 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2012 |
30.09.2011 |
30.09.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
76.140 |
76.140 |
76.140 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3950.290 |
3993.499 |
4034.096 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4026.430 |
4069.639 |
4110.236 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1192.598 |
929.737 |
888.922 |
|
|
2] Unsecured Loans |
674.337 |
439.999 |
150.300 |
|
|
TOTAL BORROWING |
1866.935 |
1369.736 |
1039.222 |
|
|
DEFERRED TAX LIABILITIES |
33.710 |
48.287 |
58.973 |
|
|
|
|
|
|
|
|
TOTAL |
5927.075 |
5487.662 |
5208.431 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3022.095 |
2944.160 |
2814.473 |
|
|
Capital work-in-progress |
219.530 |
438.143 |
585.199 |
|
|
|
|
|
|
|
|
INVESTMENT |
198.974 |
186.476 |
467.574 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT |
15.674 |
0.000 |
0.000 |
|
|
OTHER NON CURRENT ASSETS |
13.700 |
13.700 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3143.934
|
2897.482
|
2231.490
|
|
|
Sundry Debtors |
4390.913
|
3976.673
|
3572.506
|
|
|
Cash & Bank Balances |
185.379
|
295.188
|
347.232
|
|
|
Other Current Assets |
2.944
|
1.902
|
2.911
|
|
|
Loans & Advances |
1357.814
|
1768.039
|
1686.555
|
|
Total
Current Assets |
9080.984
|
8939.284
|
7840.694 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2233.629
|
2523.446
|
2557.394 |
|
|
Other Current Liabilities |
4292.522
|
4429.331
|
3877.719
|
|
|
Provisions |
97.731
|
81.324
|
64.396
|
|
Total
Current Liabilities |
6623.882
|
7034.101
|
6499.509 |
|
|
Net Current Assets |
2457.102
|
1905.183
|
1341.185
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5927.075 |
5487.662 |
5208.431 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
30.09.2012 |
30.09.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operation |
|
8787.545 |
9576.735 |
|
|
|
Other Income |
|
137.078 |
66.377 |
|
|
|
TOTAL (A) |
|
8924.623 |
9643.112 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
|
5160.598 |
5901.277 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
Stock-in-trade |
|
(190.311) |
(682.739) |
|
|
|
Employee benefit expenses |
|
936.797 |
784.360 |
|
|
|
Other expenses |
|
2325.054 |
3024.852 |
|
|
|
Exchange Currency Fluctuation (Gain)/Loss |
|
67.845 |
138.247 |
|
|
|
Exceptional items |
|
52.902 |
0.000 |
|
|
|
TOTAL (B) |
|
8352.885 |
9165.997 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
571.738 |
477.115 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
222.863 |
148.629 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
348.875 |
328.486 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
179.788 |
158.944 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
169.087 |
169.542 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
47.823 |
41.564 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
121.264 |
127.978 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
1273.378 |
1145.400 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
1394.642 |
1273.378 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
2807.926 |
1294.720 |
|
|
|
Others |
|
5.661 |
17.004 |
|
|
|
Ethiopia |
|
173.122 |
58.886 |
|
|
TOTAL EARNINGS |
|
2986.709 |
1370.610 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
118.618 |
215.192 |
|
|
|
Stores & Spares |
|
220.929 |
189.619 |
|
|
|
Capital Goods |
|
14.011 |
178.614 |
|
|
TOTAL IMPORTS |
|
353.558 |
583.425 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
3.19 |
3.36 |
|
|
|
PARTICULARS |
|
|
30.09.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
6723.711 |
|
|
|
Other Income |
|
|
163.459 |
|
|
|
Exchange Currency Fluctuation Gain |
|
|
49.619 |
|
|
|
TOTAL (A) |
|
|
6936.789 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material and Components Consumed |
|
|
3963.226 |
|
|
|
Payment to and provision for employees |
|
|
616.181 |
|
|
|
Manufacturing, Administrative and Selling Expenses |
|
|
2011.639 |
|
|
|
Exchange Currency Fluctuation Loss |
|
|
0.000 |
|
|
|
Expenditure Capitalized |
|
|
(1.006) |
|
|
|
Exceptional Items |
|
|
11.277 |
|
|
|
Decrease / (Increase) in Stock |
|
|
(91.909) |
|
|
|
TOTAL (B) |
|
|
6509.408 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
|
427.381 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
|
74.901 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
352.480 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
133.520 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
|
218.960 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
|
(3.931) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
|
222.891 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
|
989.191 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
|
|
22.289 |
|
|
|
Dividend |
|
|
38.070 |
|
|
|
Tax on Dividend |
|
|
6.323 |
|
|
BALANCE CARRIED
TO THE B/S |
|
|
1145.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
|
511.193 |
|
|
|
Other Earnings |
|
|
88.275 |
|
|
|
Ethiopia |
|
|
0.000 |
|
|
TOTAL EARNINGS |
|
|
599.468 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
|
76.952 |
|
|
|
Components and Spares Parts |
|
|
270.454 |
|
|
|
Capital Goods |
|
|
7.281 |
|
|
TOTAL IMPORTS |
|
|
354.687 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
5.85 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.12.2012 |
|
Type |
|
|
1st Quarter |
|
Net Sales |
|
|
1650.400 |
|
Total Expenditure |
|
|
1759.500 |
|
PBIDT (Excl OI) |
|
|
(109.100) |
|
Other Income |
|
|
4.900 |
|
Operating Profit |
|
|
(104.200) |
|
Interest |
|
|
77.700 |
|
Exceptional Items |
|
|
(24.200) |
|
PBDT |
|
|
(206.100) |
|
Depreciation |
|
|
45.500 |
|
Profit Before Tax |
|
|
(251.600) |
|
Tax |
|
|
(82.400) |
|
Provisions and contingencies |
|
|
000 |
|
Profit After Tax |
|
|
(169.200) |
|
Extraordinary Items |
|
|
000 |
|
Prior Period Expenses |
|
|
000 |
|
Other Adjustments |
|
|
000 |
|
Net Profit |
|
|
(169.200) |
KEY RATIOS
|
PARTICULARS |
|
30.09.2012 |
30.09.2011 |
30.06.2010 |
|
PAT / Total Income |
(%) |
1.36
|
1.33 |
3.21 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.92
|
1.77 |
3.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.39
|
1.43 |
2.05 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.04 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.46
|
0.34 |
0.25 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.37
|
1.27 |
1.21 |
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 |
Yes |
|
8] |
No. of employees |
No |
|
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 |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
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 |
Yes |
PERFORMANCE FOR THE
YEAR IN RETROSPECT:
During the year, the revenue for the year 2011-12 declined by 7.5% as compared to the previous year. However, there is a rise in the PBT margins largely on account of the following:
• Higher contribution on account of the reduction in the material costs and better value additions
• Better realization on export sales
EXPORTS AND OVERSEAS
PROJECTS:
During the year, the Company achieved an export turnover of Rs. 2980.000 Millions as against Rs. 1370.000 Millions, in the previous year. The export orders on hand as on 30.09.2012 are at Rs. 2500.000 Millions. During the year, the Company executed Cement machinery in Tanzania and Malavi.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC OVERVIEW
The Indian economy continued to witness a slowdown during the year 2011-12 due to a weakening demand for goods combined with a loss of investor confidence owing to fiscal policies. Inflation continues to remain a concern and has added to the pressures on pricing at the consumer level which in turn affected household consumption at various levels. The capital goods sector was affected adversely making the climate for investment in new projects less attractive. The Government has recently initiated some favourable changes in the monetary polic, however, these changes are expected to yield positive results only in the subsequent year.
FINANCIAL OVERVIEW
Sales and
Profitability
|
Particulars |
FY 2011-12 |
FY
2010-11 |
|
Total Income |
8924.600 |
9643.100 |
|
EBIDTA (Before Exceptional
Items and Exchange Currency fluctuations) |
692.500 |
615.200 |
|
EBIDTA (After
Exceptional Items and Exchange Currency fluctuations) |
571.800 |
477.000 |
|
Profit Before Tax (PBT) |
169.100 |
169.500 |
|
Profit After Tax (PAT) |
121.300 |
128.000 |
|
Cash Profit |
301.100 |
286.900 |
|
Fully diluted EPS |
3.19 |
3.36 |
Although, the revenue for the year 2011-12 has shown a decline of 7.50% over the previous year, there is a rise in the EBIDTA and PBT margin on account of the following:
• Higher contribution on account of the reduction in the material costs and better value addition.
• Better realization on export sales.
ORDER BOOK
The Company has been selective in booking orders during the year and has not compromised on the quality of orders despite the subdued market conditions and intense competition prevailing in the domestic market place in the sugar, boiler, cement, mineral and bulk handling project sectors. The Company has expanded its geographical footprint into the export market and has taken a number of initiatives which are expected to yield good results in the forthcoming year. The Order Book of the Company remains at a reasonable level with the outstanding orders at Rs. 14810.000 Millions as on September 30, 2012. Following are the highlights of the order book:
• It includes order for steam generation package and process house equipments at Tendaho Sugar Factory, Ethiopia which is under execution.
• It also includes order for 12 Co-Gen Power Projects aggregating to 183 MW and Sugar plant modernization/ expansion from Tamilnadu State Electricity Board (TNEB), which is under execution.
• The order book underlines the strong engagement of the Company in the Nuclear Power sector with the orders for core machinery and components for 700 MW Nuclear Power Projects of NPCIL.
KEY EVENTS
Discussions with
Atomenergomash, Russia
Pursuant to the MOU signed with Atomenergomash (AEM) in 2011, discussions have taken place at various levels during the course of the year, to explore the possibility of manufacturing a number of Nuclear Power Plant (NPP) equipments in India. These discussions are making good progress and a detailed business plan is being prepared jointly. Due to the Fukushima incident and consequent activism against nuclear power, there has been some slow down in this segment of business but the nuclear business is expected to gather momentum soon.
Manufacturing –
Missile Division
The esteemed Company is involved in India’s program for development of one of the most advanced surface to air missile systems in the world. In order to cater to this requirement, a state of the art manufacturing facility has been established bringing all operations under one roof.
The Company was entrusted with the manufacture of the Metallic Motor Hardware for these missiles which was accomplished successfully by the Company. The product went through many rigorous acceptance tests and initial production runs have been completed with a high level of quality standard, consequent to which, the Company has received repeat orders. The Company is planning to invest further to augment the existing manufacturing capacity of this division as this segment holds very good potential for growth.
SEGMENT REVIEW
Heavy Engineering
For the year under consideration, the Sales of the Heavy Engineering Division decreased by 9% as compared to the previous year. The profitability in the manufacturing sector is encouraging and is expected to continue but the profit margins on the project business remains to be tight and extremely competitive. The profitability margins however improved during the later part of the year due to better realizations on export projects and because of reduction in material costs resulting from better efficiencies in procurement.
FOUNDRY
The business of Foundry Division is divided mainly into:
• Automotive sector where the division supplies the heavy grey and SG Iron dies for the automotive industry.
• Industrial machinery and equipment. Although the Foundry Division has made a loss during the year 2011-12, it has been able to reverse the downward trend and achieved break even operating levels in the last quarter of the year.
PRECISION INSTRUMENT
DIVISION
The Precision Instrument Division of the Company manufactures pressure and temperature gauges and sector mechanisms required for a range of process industry applications as well as automotive applications. The division grew at a rate of 12% and is on the pedestal of high growth trajectory in the coming years. This was possible due to the efforts and initiatives taken internally to improve the productivity to effectively use the available infrastructure and capital and in house design and engineering effort.
PROJECT MANAGEMENT
AND CONTRACT PERFORMANCE
As mentioned above, the Company has started executing more projects on a turnkey basis. The size of the projects is also increasing as compared to the past. This, on one hand, enhances the opportunity to attain scale economies and other benefits, but it exposes the Company to a larger value of retentions and guarantees. In such a scenario, Contract Management and Performance Risk Management assume a much greater significance, than any time in the past. This entails three primary things:
• Robust estimation process.
• Strong execution process encompassing engineering, procurement, manufacturing and site installation.
• Effective Project and Contract Management.
The Company has strengthened the existing processes and increased the management bandwidth in these areas.
LIQUIDITY AND
FINANCIAL PRUDENCE
Management of liquidity assumes even more importance when the size of the projects being handled goes up. This is to ensure adequate supply of funds for execution of the projects and entails the complete management of net working capital. The Company is giving significant emphasis on this aspect with specific efforts to track receivables, inventories and payment to supply base. Further, the Company firmly believes that financial prudence is the key to survival in difficult times as well as sustained growth. Despite all the constraints faced during the year, the Company has maintained key financial parameters at a prudent level, where debt equity ratio is maintained at a healthy ratio of 0.76. The Company has free cash flow of Rs 291.900 Millions on its books, which is invested in safe instruments such as liquid/liquid plus mutual funds and fixed deposits of the reputed banks.
TECHNOLOGY
UP-GRADATION
The key to sustained competitiveness is the availability of contemporary technologies. The Company, over the years, has entered into collaboration arrangements with some of the world’s renowned technology providers in its core field of activities. These included ongoing technology inputs as well as project specific technology support.
DEMAND CYCLICALITY
Demand cyclicality is a generic risk applicable almost across the spectrum. In case of the Company, this risk assumes significance since most of the end users of the Company follow an economic cycle of their own. This results in variation in the revenue drawn from different end user segments from year to year. The Company’s approach to mitigate this risk continues to be:
• Technology up-gradation and moving up the value chain.
• Diverse yet synergistic revenue model.
• Focus on core and less cyclical industries such as Nuclear Power, Aerospace, Missiles and Defence.
• Growing focus on overseas business.
OUTLOOK AND
CONCLUSION
Revenue
While the revenues of the Company declined by 7.50% in the year 2011-12 over the previous year, the Company looks to be poised for good growth in the next year because of the following:
• Adequate order book as on September 30, 2012, which stands at Rs. 14810.000 Millions
• Strong business outlook in the Aerospace, Missiles, Defense and Nuclear power segment. This business lends long term sustainability to the revenue model of the Company.
• A number of initiatives for developing the export market were made during the year 2011-12 which are expected to yield good results in the coming year.;
• Since the US Dollar is becoming strong, value of Rupee realisation from exports is expected to be remunerative and Company will be giving thrust for export market.
• Continued focus and efforts to build on the current order book position of the Company.
Further, the Company has strong fundamentals for a sustainable growth:
• Well diversified yet synergistic business model.
• Strong manufacturing capability.
• In house design engineering capability.
• Project management capability.
• Technology tie-up sin critical areas.
This would augur well for the Company’s long term sustainable growth.
UNSECURED LOAN
(Rs in Millions)
|
Particular |
As
on 30.09.2012 |
As
on 30.09.2011 |
|
Working capital loans – Foreign currency and INR |
674.337 |
439.999 |
|
Total |
674.337 |
439.999 |
|
|
|
|
CONTINGENT
LIABILITIES:
|
Particular |
30.09.2012 |
30.09.2011 |
|
Counter Guarantees by the Company in respect of guarantees given by banks (including guarantee on account of erstwhile Machine Tool Division of Rs. 0.355 Millions) |
3009.582 |
3101.692 |
|
Estimated amount of Contracts remaining to be executed on Capital accounts not provided for (Net of advance) |
42.927 |
13.729 |
(a) Demand of Non agricultural (Na) Tax of Rs. 8.661 Millions is raised by Tahshildar, Indapur (Previous Year Rs.8.661 Millions) out of which Rs. 2.000 Millions is paid under protest by the Company. During the year, a demand of Na tax of Rs. 7.476 Millions has been raised by the concerned authorities. No provision has been made in the accounts as the Company has not accepted the liability and the matter is sub-judice.
(b) The Central Excise authorities have raised a demand of Rs. 26.619 Millions (Previous Year Rs. 26.619 Millions) (Net of Cenvat reversal and payment) denying the exemption from the excise duty on non-conventional energy devices/systems supplied by the Company. The Company has disputed the demand and has preferred an appeal which is pending before ‘CESTAT, Mumbai’. on the basis of a legal opinion, the Company does not accept any liability.
(c) The Central Excise authorities have raised a demand of Rs. 8.245 Millions (Previous Year Rs. 7.998 Millions) on bought out items supplied for Centrifugals, which has already suffered duty at manufactures end. The Company has disputed the demand and has preferred an appeal which is pending before Supreme Court, Delhi.on the basis of legal opinion; the Company does not expect any liability.
(d) The Sales Tax authority, Maharashtra has raised demand of Rs. 15.983 Millions as per Section 6(2) of the Central Sales Tax act, 1956. The Company has disputed the demand and has preferred an appeal before The Sales Tax appellate Commissioner. on the basis of legal opinion the Company does not expect any liability.
(e) Service Tax demand of Rs. 36.265 Millions on sale of bought out items has been raised by the concerned authorities. The Company has paid an amount of Rs. 2.876 Millions under protest and has preferred an appeal which is pending before the CESTAT.
(f) Bond issued to customs department for export obligations amounting to Rs. 136.345 Millions (Previous Year Rs. 136.345 Millions)
FIXED ASSETS
·
·
Building
·
Plant and Machinery
·
Laboratory Equipments
·
Furniture, Fixtures, Office Equipments and
Electrical Fittings
·
Patens
·
Vehicles
·
Road, Water Works and Drainage
·
Intangible Assets – Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No 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. 54.44 |
|
|
1 |
Rs. 83.78 |
|
Euro |
1 |
Rs. 71.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
UDS |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.