MIRA
INFORM REPORT
|
Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
GREAVES COTTON LIMITED |
|
|
|
|
Registered
Office : |
Industry Manor Off Appasahabmarathe Marg, Prabhadevi, Mumbai – 400025,
Maharashtra |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
29.03.1922 |
|
|
|
|
Com. Reg. No.: |
000987 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.488.400 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1922PLC000987 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
The company manufacturing of engines, and contraction equipment and
trading of power tillers, motor graders etc. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 2597000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well established and reputed company having a good track
record. Financially company appears to be strong. Liquidity position of the company is good.
The performance capability seems to be high. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. 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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long Term Rating AA |
|
Rating Explanation |
Having very low default risk. It indicate very strong capacity for
payments of financial commitment. |
|
Date |
December 2011 |
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/corporate Office : |
Industry Manor, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025,
Maharashtra, India |
|
Tel. No.: |
91-22-24397575 |
|
Fax No.: |
91-22-24377730 |
|
E-Mail : |
|
|
Web Site : |
|
|
|
|
|
Factory : |
Maharashtra Chakan, Pune Chinchwad, Pune Chiklthana, Aurangabad Shendra, Aurangabad Waluj, Aurangabad Tamil Nadu Gummidipoondi Ranipet |
|
|
|
|
Regional Office : |
Located : ·
Mumbai ·
Ahmedabad
·
New
Delhi ·
Kolkata
·
Jharkhand
·
Bangalore ·
Chennai ·
Cochin ·
Hyderabad |
DIRECTORS
As on 31. 03.2012
|
Name : |
Karan Thapar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Sunil Pahilajani |
|
Designation : |
Managing Director and CEO (Effective November 5, 2011) |
|
|
|
|
Name : |
Vijay Rai |
|
Designation : |
Director |
|
|
|
|
Name : |
Suresh N. Talwar |
|
Designation : |
Director |
|
|
|
|
Name : |
Vikram Tandon |
|
Designation : |
Director |
|
|
|
|
Name : |
Sukh Dev Nayyar |
|
Designation : |
Director |
|
|
|
|
Name : |
Clive Hickman |
|
Designation : |
Director |
|
|
|
|
Name : |
Prabhakar Dev |
|
Designation : |
Managing Director and CEO (Up to November 4, 2011) |
|
|
|
KEY EXECUTIVES
|
Name : |
K. K. Saraf |
|
Designation : |
Executive Vice President and Company Secretary |
|
|
|
|
Name : |
Ashok Kumar Sonthalia |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Anil Gole |
|
Designation : |
Chief Human Resources Officer |
|
|
|
|
Name : |
Sanjiv Kumar |
|
Designation : |
Chief Executive Officer
(Automotive Engine Business) |
|
|
|
|
Name : |
Ramachandran Nandagopal |
|
Designation : |
Chief Executive Officer (Construction Equipment) |
|
|
|
|
Name : |
Vinay Khanolkar |
|
Designation : |
Chief Executive Officer (Aftermarket) |
|
|
|
|
Name : |
C.M. Ashok Muni |
|
Designation : |
Chief Executive Officer (Farm Equipment Business) |
|
|
|
|
Name : |
Prakash Bhalekar |
|
Designation : |
Chief Executive Officer (Engine Component Technologies, Industrial
Engine Business and Auxiliary Power Business) |
|
|
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1000 |
0.00 |
|
|
125920566 |
51.56 |
|
|
125921566 |
51.56 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
125921566 |
51.56 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
36985283 |
15.15 |
|
|
265316 |
0.11 |
|
Insurens companies |
29087742 |
11.91 |
|
|
20614117 |
8.44 |
|
|
86952458 |
35.61 |
|
|
|
|
|
|
8010411 |
3.28 |
|
|
|
|
|
|
19020235 |
7.79 |
|
|
2291547 |
0.94 |
|
|
2010578 |
0.82 |
|
|
775000 |
0.32 |
|
|
1197133 |
0.49 |
|
|
38445 |
0.02 |
|
|
31332771 |
12.83 |
|
Total Public shareholding (B) |
118285229 |
48.44 |
|
Total (A)+(B) |
244206795 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
|
0 |
0 |
|
Total (A)+(B)+(C) |
244206795 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company manufacturing of engines, and contraction equipment and trading
of power tillers, motor graders etc. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||
|
|
|
|||||||||
|
Bankers : |
·
State Bank of India ·
Bank of India ·
ICICI Bank ·
HDFC Bank ·
Royal Bank of Scotland N.V. |
|||||||||
|
|
|
|||||||||
|
Facilities : |
(Rs.
In Millions)
Note : Cash Credit and Short
Term Finance from Banks are secured by hypothecation of all stock-in-trade,
spares, tools and book debts, present and future, of the Company. The charges
on these assets also extend to letters of credit and bank guarantees upto Rs.
278.500 million (Previous Period Rs.807.700 million) and Rs.42.100 million
(Previous Period Rs. 62.900 million) respectively. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Walker, Chandiok and Company Chartered Accountants |
|
|
|
|
Associates : |
·
Bharat Starch Products Limited ·
DBH Consulting Limited ·
DBH Global Holdings Limited ·
DBH International Private Limited ·
DBH Investments Private Limited ·
DBH Stephan Limited English Indian Clays Limited ·
Karun Carpets Private Limited ·
Pembril Industrial & EngineeringCompany
Private Limited ·
Premium Stephan B.V.,Netherlands ·
Premium Transmission Cooperatie UA ·
Premium Transmission Limited |
|
|
|
|
Subsidiary of
Greaves Cotton Netherlands B.V. : |
·
Ascot International FZC |
|
|
|
|
Wholly Owned Subsidiary
of Greaves Leasing Finance Limited : |
·
Dee Greaves Limited |
|
|
·
|
|
Wholly Owned
Subsidiary : |
·
Greaves Auto Limited ·
Greaves Cotton Netherlands B.V. ·
Greaves Leasing Finance Limited |
|
|
|
|
Wholly Owned Subsidiary
of Greaves Cotton Netherlands B.V. : |
·
Greaves Farymann Diesel GmbH |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs.2/- each |
Rs. 500.000 Million |
|
2500000 |
Preference Shares |
Rs.100/- each |
Rs. 250.000 Million |
|
|
Total |
|
Rs. 750.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
244206795 |
Equity Shares |
Rs.2/- each |
Rs.488.400
Million |
|
Name of the shareholder |
31.03.2012 |
|
|
|
Number of shares held in the Company |
Percentage of shares held ( %
) |
|
DBH International
Private Limited |
98537502 |
40.35 |
|
Reliance Capital
Trustee Company Limited |
14815042 |
6.07 |
|
Bharat Starch
Products Limited |
13775865 |
5.64 |
|
Karun Carpets
Private Limited |
13657899 |
5.59 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
488.400 |
488.400 |
488.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6005.300 |
4772.100 |
3924.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6493.700 |
5260.500 |
4412.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
22.900 |
3.700 |
|
|
2] Unsecured Loans |
201.700 |
3.600 |
47.900 |
|
|
TOTAL BORROWING |
201.700 |
26.500 |
51.600 |
|
|
DEFERRED TAX LIABILITIES |
299.600 |
263.600 |
245.000 |
|
|
|
|
|
|
|
|
TOTAL |
6995.000 |
5550.600 |
4709.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
32951.000 |
2641.300 |
2378.000 |
|
|
Capital work-in-progress |
167.800 |
92.900 |
281.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
1114.200 |
838.400 |
1301.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1699.700
|
1868.400 |
1532.900 |
|
|
Sundry Debtors |
2559.200
|
2580.900 |
2024.800 |
|
|
Cash & Bank Balances |
702.500
|
601.800 |
218.500 |
|
|
Other Current Assets |
18.600
|
26.900 |
0.000 |
|
|
Loans & Advances |
1359.300
|
1157.600 |
1003.400 |
|
Total
Current Assets |
6339.300
|
6235.600 |
4779.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1935.500
|
2141.000 |
2452.600 |
|
|
Other Current Liabilities |
822.600
|
1082.000 |
247.00 |
|
|
Provisions |
1163.300
|
1034.600 |
1331.900 |
|
Total
Current Liabilities |
3921.400
|
4257.600 |
4031.500 |
|
|
Net Current Assets |
2417.900
|
1978.000 |
7481.00 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6995.000 |
5550.600 |
4709.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
17534.400 |
12521.700 |
13472.100 |
|
|
|
|
Other Income |
59.800 |
123.800 |
68.500 |
|
|
|
|
TOTAL |
17594.200 |
12645.500 |
13540.600 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of material consumed |
12054.500 |
8167.400 |
|
|
|
|
|
Purchase of stock-in-trade |
424.000 |
580.900 |
|
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(151.700) |
(62.800) |
|
|
|
|
|
Employee benefit |
1275.100 |
831.500 |
|
|
|
|
|
Other expenses |
1567.300 |
1071.400 |
|
|
|
|
|
TOTAL |
15169.200 |
10588.400 |
11407.200 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2425.00 |
2057.100 |
21334.00 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES |
34.800 |
10.500 |
129.100 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
2390.200 |
2046.600 |
2004.300 |
||
|
|
|
|
|
|
||
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
317.300 |
209.800 |
270.300 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX |
2072.900 |
1836.800 |
1734.000 |
||
|
|
|
|
|
|
||
|
Add |
EXCEPTIONAL
ITEMS |
432.900 |
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX |
2505.800 |
1836.800 |
1734.000 |
||
|
|
|
|
|
|
||
|
Less |
TAX |
650.900 |
564.000 |
554.300 |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX |
1854.900 |
1272.800 |
1179.700 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
202.000 |
116.800 |
169.500 |
|
|
|
|
Components and Spare Parts |
679.200 |
1005.100 |
552.700 |
|
|
|
|
Capital Goods |
143.700 |
90.400 |
275.700 |
|
|
|
TOTAL IMPORTS |
1024.900 |
1212.300 |
997.900 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
a) Export of goods on F.O.B. basis ( including foreign branch) |
522.500 |
192.100 |
275.700 |
|
|
|
|
b) Direct Sales Compensation (including foreign branch) |
4.300 |
6.400 |
18.100 |
|
|
|
TOTAL
EARNINGS |
256.800 |
198.500 |
293.800 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
7.60 |
5.21 |
4.83 |
||
QUARTERLY RESULTS
|
PARTICULARS (Rs. Millions) |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Audited/
Unaudited |
1ST
Quarter |
2nd Quarter |
3rd
Quarter |
|
Net sales |
4115.800 |
4501.300 |
5157.800 |
|
Total Expenditure |
3619.000 |
3924.800 |
4440.800 |
|
PBIDT (Excl ol) |
496.800 |
576.500 |
717.000 |
|
Other Income |
29.400 |
20.400 |
68.500 |
|
Operating Profit |
526.200 |
596.900 |
785.500 |
|
Interest |
3.100 |
1.600 |
2.200 |
|
Exceptional items |
0.000 |
(34.300) |
(141.800) |
|
PBDT |
523.100 |
561.000 |
641.500 |
|
Depreciation |
88.900 |
94.000 |
98.600 |
|
Profit Before Tax |
434.200 |
467.000 |
542.900 |
|
Tax |
118.700 |
131.400 |
199.300 |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
315.500 |
335.600 |
343.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
10.54 |
10.06 |
0.81 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.29 |
14.67 |
18.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.38 |
20.69 |
24.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38 |
0.35 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.03 |
0.00 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.62 |
1.46 |
1.18 |
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 |
NO |
|
4] |
Premises details |
|
|
5] |
Type of Business |
NO |
|
6] |
Line of Business |
NO |
|
7] |
Promoter's background |
NO |
|
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 |
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 |
YES |
Unsecured Loan :
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
Interest-Free Sales Tax Loan And Special Incentive Loan |
1.700 |
3.600 |
|
Short term From Others |
200.00 |
0.000 |
|
Total |
201.700 |
3.600 |
Note :
Interest-free Sales Tax Loan, Maharashtra-
Deferment of five years sales tax liability from May 1995 to May 2000.
GENERAL
INFORMATION :
Subject is engaged in manufacturing of engines and construction equipment
and trading of power tillers, motor graders etc. The Company has manufacturing
facilities in the states of Maharashtra and Tamil Nadu. The products are mainly
sold in India with some export to Middle East, Africa and South East Asia
Region. The Company has four direct and two indirect subsidiaries having
operations in India, Netherlands, Germany and Sharjah.
PERFORMANCE
OVERVIEW
The
financial year began on a positive note. However, the economy started
witnessing a rise in inflationary trend during the second half of the year
which together with tightening of the monetary policy and a widening trade
deficit resulted in a slow-down in the overall demand scenario. This affected
the performance of almost all business segments in which Greaves operates. The
Company achieved gross revenue of Rs.17594.200 million and Profit after Tax
(excluding exceptional items) of Rs.1444.000 million for the financial year
ended March 31, 2012 as against Rs.12645.5000 million and Rs.1272.8000 million
respectively, for the previous financial period (nine months). On a comparative
basis (April to March period) the Revenue and the Profit after Tax before
exceptional items registered a growth of 8.7% and drop of 6.9% respectively.
The profits were lower due to higher material costs and certain one-off items
of expenditures/write-offs. The Company commissioned in October 2011, its new
unit at Shendra (Aurangabad) for manufacture of Light Diesel Engines. This
together with the ongoing expansion at the Ranipet Unit, will enhance the production
capacity of Light Diesel Engines for automotive applications to 5,25,000 nos.
per annum.
During
the year the Company sold its land at Thoraipakkam, Chennai, for a
consideration of Rs.800.000 millions thus making a gain amounting to Rs.694.000
millions, net of tax.
SUBSIDIARIES
1.
Greaves Farymann Diesel GmbH, Lampertheim, Germany (GFD)
The
entire share capital of GFD is held by the Company’s wholly owned subsidiary
viz. Greaves Cotton Netherlands B.V.
GFD reported
improved performance for the financial year ended March 31, 2012 with a total
income of Euro 5.541 million and loss of Euro 0.033 million. The Company has
taken certain strategic moves in order to improve the performance of GFD.
2.
Greaves Cotton Netherlands B.V. (GCN)
The
entire equity capital of GCN is held by Greaves Cotton Limited. GCN acts as an
investment Company in Netherlands B.V. During the financial year under review,
the Company invested a further sum of Euro 35,000 in the ordinary shares of
GCN. GCN reported a Loss of Euro 35,410 for the year ended March 31, 2012.
3.
Ascot International FZC (Ascot), Sharjah
The
entire share capital of Ascot is held jointly by Greaves Cotton Netherlands
B.V. (90%) and Greaves Cotton Limited (10%). Ascot is engaged in the
distribution of Greaves products, largely DG sets. Ascot earned total revenue
of AED 2.926 million and incurred a loss of AED 0.367 million for the year
ended March 31, 2012. The Company has initiated various steps to improve the
business of Ascot on the back of extensive service network for the products
sold by Ascot. These measures are expected to improve Ascot’s performance
substantially in the coming years.
4.
Greaves Leasing Finance Limited (GLFL)
GLFL
is a wholly- owned subsidiary of the Company. GLFL is engaged in leasing and
finance activities confined only to Greaves Group. It reported total revenue of
Rs. 44.700 millions and Profit after Tax of Rs.27.200 millions for the
financial year 2011-12.
5. Dee
Greaves Limited (DGL)
DGL is
a wholly owned subsidiary of GLFL. During the financial year 2011-12, it did
not do any business. It earned a marginal profit presenting interest income,
net of expenses.
6.
Greaves Auto Limited (GAL)
GAL is
a wholly owned subsidiary of Greaves Cotton Limited. GAL is yet to commence any
business activity. GAL earned marginalprofit on account of interest income net
of administrative expenses.
Promoter Group
The
Promoter Group holding in the Company currently is 51.58% of the Company’s Equity
Capital. The Members may note that the Promoter Group companies, are controlled
by Mr. Karan Thapar, comprising of the following Companies (1) English Indian
Clays Limited (2) Premium Transmission Limited (3) Pembril Industrial &
Engineering Company Private Limited (4) DBH International Private Limited (5)
Karun Carpets Private Limited (6) Greaves Leasing Finance Limited (7) Dee
Greaves Limited (8) Bharat Starch Products Limited (9) DBH Global Holdings
Limited (10) DBH Investments Private Limited (11) Greaves Farymann Diesel GmbH
(12) DBH Consulting Limited (13) Greaves Auto Limited (14) Greaves Cotton
Netherlands B.V. (15) Ascot International FZC (16) Premium Transmission
Cooperatie UA (17) DBH Stephan Limited. and (18) Premium Stephan B.V., Netherlands.
COMPANY OVERVIEW
During
the year the Company’s performance mirrored the apparent decelerated growth
across vital sectors of the Indian economy. However, demand from Small
Commercial Vehicle (SCV) segment facilitated the Company to achieve net sales
at 17594.2000 millions a growth of 8.7 % on a comparative basis (April to March
period). The PAT (before exceptional items) stood at 1444.0000 millions down by
6.9 % compared to previous 12 months period. Many economic indicators affected
businesses at large, with high interest rates in particular impacting the
construction equipment business.
AUTOMOTIVE ENGINE BUSINESS
Industry Overview
Despite
near flat growth of Indian Automobile Sector during financial year 2011-12 (FY12),
Small Commercial Vehicle (SCV) segment grew at a robust rate of 27 %, albeit on
a small base. Connecting nooks and corners of Indian hinterland through last
mile transportation SCVs recorded impressive growth. Sales of three-wheeled
diesel vehicles recorded a modest growth of 5% as compared to 18% in the
previous year, while four wheeled vehicles maintained a growth of 32%. Courtesy
the competitive advantages that SCV’s bring, the demand from the cargo segment
picked up demonstrating an increasing adoption of the hub and spoke model.
Business Overview
Greaves
Cotton’s Automotive Engine Business manufactures a wide range of
single-cylinder and twin-cylinder diesel and gasoline engines. These highly
fuel efficient, lightweight and compact engines cater to the Original Equipment
Manufacturers (OEMs) of three-wheeled and small four-wheeled (sub one tonne
category) commercial vehicles.
One of
the world’s largest manufacturers of single-cylinder diesel engines, Greaves
Cotton continues to be a preferred engine manufacturer to leading automobile
companies in India including Piaggio, Tata Motors and Mahindra & Mahindra
(M&M), amongst others. Greaves Cotton’s engines command leadership with
over 80% market share in the three-wheeled segment and are gradually
penetrating into the four wheeled segment. Though still at a nascent stage, the
Small Commercial Vehicle (SCV) holds tremendous potential of accelarated growth
considering the growing adoption of hub-and-spoke model in logistics sector
coupled with rapid urbanization of semi urban geographies. Greaves engines’
market share in the four wheeled SCV segment rose to around 9% in FY12, from
less than 3% in FY11. The Business aims to emerge as the second largest supplier
of engines to this segment in coming three to five years.
During the year
under consideration, Greaves commenced supplies of its new G600 WIII single
cylinder engines to Tata Motors for their sub one tone SCVs, Ace Zip and Magic
Iris which have gained market acceptance. It also commissioned its5th Light
Engines Plant at Shendra, Aurangabad, during the year. With an initial
investment of Rs.50.000 million, this plant has an installed capacity of 87,000
engines annually and will manufacture single-cylinder engines for supply to SCV
manufacturers. This facility is environment friendly with keen focus on, energy
efficiency and conservation, rain water harvesting etc.
To address the
growing demands of the Industry, the Company has taken up a brownfield
expansion at the Ranipet unit to double its installed capacity to 300,000
engines annually. The expansion will be completed in the first quarter of FY13.
Upon its completion, the total annual installed capacity of engines for the
Automotive Engine Business will go up to 525,000.
Automotive Engine
Business recorded a 14% growth over the number of engines produced in the last
fiscal on an annualized basis. The growth compares very well with the Industry
growth of just 6% achieved in FY12. It achieved the highest ever monthly
production and despatch of about 41,000 engines in the month of November 2011.
It is actively pursuing newmarket development and has initiated various steps
to strengthen its competitive position in the four-wheeled SCV segment besides
exploring applications beyond the auto segment. It is also identifying
opportunities in export markets. Through a dedicated Research & Development
(R&D) team at its Technology Centre, the Automotive Engine Business is also
proactively working on achieving BS-IV emission compliance for its engines well
ahead of April 2015, the stipulated implementation schedule as of date. In view
of the Government mandating the use of alternate fuels in major metro cities,
Greaves Cotton initiated steps to design/manufacture Air–cooled petrol engine
for alternate fuel i.e. CNG/LPG on three/four wheeled SCVs.
Outlook
While the market
for three wheeled SCVs is expected to grow at a slower rate, the market for
four wheeled sub one tonne SCVs seem to be moving to a high growth trajectory. These
segments require engines with proven capability and performance. Customised
engines, technology transfers and contract manufacturing could well become
catalysts in growing this business.
The increasing
cost of finance to buy vehicles impacted the demand, especially during the last
two quarters of FY12. With peaking of interest rate and early signs of rate
reversal witnessed recently, Automotive Engine Business expects demand growth
to pick up in the months to follow. Growing urbanisation, improving spending
power & consumption pattern, faster adoption of hub & spoke model – all
augur well for continued growth of SCV
segment.
AUXILIARY POWER BUSINESS
Industry Overview
Uninterrupted
and reliable power supply is of paramount importance to all the key constituents
of economy. India, with a considerable power deficit, in peak as well as
off-peak periods, leaves much to be addressed impacting businesses at large.
Gensets are stable and reliable alternative to unreliable grid power and also
as a back-up to it.
The
financial year 2011-12 saw sluggish demand scenario caused by macro economic
factors, higher cost of borrowing, tightened liquidity, macroeconomic headwinds
and slowing down of the decision making process across private and public
sectors which decelerated the growth momentum for the sector as a whole and the
Company in particular. The Diesel Generating (DG) set Industry witnessed a drop
of around 10% during financial year 2011-12. The Industry consolidated the move
towards Single Window Concept for sales and Aftermarket support to the
customers.
Business Overview
Auxiliary
Power Business manufactures a range between 25-500 KVA Silent Diesel Gensets
and control panels, provides Installation & Commissioning services and
Aftermarket support to its customers through its nationwide presence of
distributors. It caters to demand from customers across the segments such as
retail, hospitality, healthcare, real estate, infrastructure, manufacturing,
pharma, etc. The Business relocated its manufacturing unit to Chakan, near
Pune, from the existing location at Chinchwad in Pune as a cost saving measure,
aiming to become a low cost manufacturer supplying bestin- class Diesel
Gensets.
The
slowdown in markets due to macro economic factors led to low demand which
triggered price wars in the markets putting pricing pressure on Business.
Company’s LHP range (25 to 125 KVA) of Gensets performed well, achieving a
growth of 18% over the previous year.
Greaves
Cotton decided to approach this slowdown as an opportunity to get back to the
drawing board and revisit its business strategy for a better future. It has
taken various initiatives which include strengthening distribution network by
roping in large distributors with Pan India presence, launching of new compact
design sub-15 KVA DG sets, developing new DC DG sets, having tremendous energy
saving potential for Telecom Towers and Initiating a slew of customer
engagement programmes like Customer Bridge, Key Account Management, and Voice
of Customer to ensure that customers are serviced better.
Greaves
Cotton also plans to expand its footprints into higher KVA segment and emerge
as a one stop-shop for varying customer needs.
Aiming
to produce best-in-class cost effective products, Auxiliary Power Business is
leveraging the power of Information Technology (IT) in overall supply chain
management from demand forecast to complete order management. It is planning to
initiate a focused leadership development program and aims to tap the
underlying growth potential in Aftermarket segment including those in Spares,
Annual Maintenance Contracts, and lubricants / Coolant business.
Outlook
The
growth of Auxiliary Power Business is linked with the economy in general and
telecom, real estate and infrastructure sectorsin particular. Likely softening
of interest rate, pickup in infrastructural investment and faster
implementation of Government plans, should help in reviving the sector. Given
the backdrop of chronic power shortages, growing industrialisation, revival of
investment cycle and improved lifestyle, the Company expects demand for lower
HP Gensets i.e. less than 15KVA and the range above 750 KVA to grow much
faster.
Aided
by multiple initiatives taken during financial year 2011-12, the Auxiliary Power
Business is poised to grow its revenues at a healthy rate during financial year
2012-13 and expects the growth momentum to continue in years to come.
FARM EQUIPMENT BUSINESS
Industry Overview
Over
the last several years, the agricultural topography has undergone several
changes. In its endevour to empower farmers and transform rural productivity,
the Government awarded subsidies, improved power availability and facilitated
easy financing under priority sector lending by banks. Added to this, better
crop realisations, and good monsoon increased productivity and yield. All these
factors gave fillip to the agriculture sector and thereby the resultant demand
for Farm Equipment in India However, FY12 turned out to be a testing year. The
year saw bumper kharif and rabi crop leading to lower realisations, which
unexpectedly slowed agricultural growth and in turn the Farm Equipment
Industry.
Business Overview
Greaves
Cotton’s Farm Equipment Business deals in a wide range of agricultural
equipment like Power Tillers, Paddy Reapers, Brush Cutters, Sprayers, Weeders
and Transplanters etc. These equipment help small and marginal farmers to
increase productivity by mechanising various farming processes like soil
preparation, seeding & transplanting, irrigation, plant protection &
harvesting.
It
also manufactures lightweight, portable pumpsets in the range of 1.5-10 HP and
portable eco-friendly silent Gensets in its ISO 9001 certified manufacturing
unit located at Gummudipoondi, Chennai. The Business leverages on Greaves
Cotton’s strong brand equity that has been built over decades. It continues to
offer value-for-money products backed by a well established
pan-India service network and a huge base of satisfied customers.
In order to usher in techno-farm productivity, the
Business launched new products that have gained market acceptance. Weeder, being the case in point. In order to
maximise benefits from the growing demand in the years ahead and to address
increasing competition, the Company has undertaken a few initiatives which
include setting up a dedicated R&D centre for widening product portfolio
through product indigenization as well as product upgrade. It plans to leverage
its vast dealer network by adding aftermarket services
through authorized service centres. It aims to seek sustained growth on the
principle of 4 A’s – Awareness, Acceptance,
Availability and Affordability.
Outlook
Mechanisation in
India is still at a nascent stage and farmers continue to rely on primitive
tools and methods of farming. In the 12th five year plan, the Government has
set a high growth target of 4% for agriculture which would be tough to achieve
without further mechanization of the sector.
Both structural
and cyclical factors should continue to support the sector. Increasing farm
wages, labour shortages, central and state subsidies, higher food prices,
changing dietary habits and increasing per capita income should keep the demand
for Farm Equipment high. An 18% increase for financial year 2012-13 in Central
Government’s outlay, shall provide desired boost in farm credits and interest
subvention should provide additional fillip to the demand of farm equipment.
Demand for Farm
Equipment is also likely to increase on back of demand from additional avenues
like custom hiring/providing machines on rentcoupled with various strategic
initiatives undertaken, Greaves Cotton is cautiously optimistic of the
performance of the Business in FY13 and years ahead.al basis which is being
promoted by the Government to increase mechanisation. With this industry
outlook
INDUSTRIAL ENGINE BUSINESS
Industry Overview
Industrial
engines are used for a wide range of stationary as well as mobile applications.
The industrial engines market is very diverse & well spread out. The market
for these engines comprises of construction equipment
for
concrete & road making applications, earthmoving, mining equipment,
agriculture equipment, marine, fire fighting pumps & other pumps,
compressors, railway applications, Defence & power generation.
In
financial year 2011-12, the Industrial engine market witnessed modest growth.
Deceleration in India’s growth, high cost of capital, delays in land
acquisition and environmental clearances coupled with overall depressionary
sentiments impacted the pace of execution and appetite for expansion. As a
result, the industrial sector also did not perform in line with expectation.
Slowdown was witnessed in most of the user industries of Industrial Engines
including Mining, Marine, Construction and Oil & Gas.
Business Overview
Greaves
Cotton’s Industrial Engine Business (IEB) thrives on development of specific
applications of its engines and offers customised products for various
industries like Construction, Marine, Fire Control, Mining, Material Handling,
Rail Cars, Defence and Power. It manufactures high-horsepower engines at its
unit located at Pune and sources low-horsepower engines from the Company’s
Agriculture Equipment and Automotive Engine Business. Greaves engines have been
well accepted for firefighting pumps and marine applications.
Since
the creation of this Business in 2009, Greaves has adopted a much focused
approach to develop markets for these engines. With less than two percent share
of the estimated market size of 40.00000 millions it has potential to grow
manifold over the next few years.
With a
strong market share of 25%, Greaves Cotton has established itself as a
recognised player in fire fighting pumps segment. With fire safety guidelines
becoming more stringent, this segment is expected to grow annually in the range
of 12-15 % over coming years. The Business has also made significant inroads in
Marine, Small Construction Equipment and Offshore Cranes segment.
Despite
the Industrial slowdown and tough economic environment, Industrial Engine
Business grew at a healthy rate during the year under review, albeit from a
small base. Industrial Engine Business also made inroads into new applications
for its engines, selling its products to manufacturers of Transit Mixers,
Harvesters, Soil Compactors, Pavers, Road Sweepers, Concrete Pumps, Fishing
trawlers & Marine Gensets. Industrial Engine Business also initiated many
cost reduction and efficiency improvement measures by adding processes like
heat treatment and induction hardening and commissioned a high-pressure
moulding line during the year.
Industrial
Engine Business came out with a contemporary product in the range of 15 HP to
200 HP that has applications across most of the markets. The Business plans to
further enhance its technological prowess in high-horsepower (>200hp)
segment and has begun work for launching a technologically advanced new series
of engines in this range. IEB increased resources in R&D and application
engineering marketing to garner a higher share of market. The engines are designed
and tested at its state-of-the-art technology centre at Chinchwad, Pune. This
testing facility is among the best in the Industry and is equipped with
emission measurement capabilities, integrated digital controls, conditioned
air, fuel conditioning and water temperature control for testing engines up to
2MW. It is also capable of testing gas engines.
Outlook
With interest
rates already peaking and early signs of reversal, business sentiments are
slated to improve, going forward. This will also help improve the investment
appetite of Industrial segments. With fire safety measures and its
implementation getting stringent, demand for firefighting pumps shall continue
to grow at a healthy rate. The Government’s thrust on infrastructure
development; project execution will accelerate the demand for the Industrial
Engine Business products. Riding on these factors, Industrial Engine Business
is likely to continue its fast paced growth and has a promising outlook.
INFRASTRUCTURE
EQUIPMENT SEGMENT
CONSTRUCTION EQUIPMENT BUSINESS
Industry Overview
India
is one of the fastest growing markets for construction equipment and also the
second largest in Asia after China. Confederation of Indian Industries (CII)
estimates the Indian Construction Equipment sector to grow from USD 3.3 billon
in 2010 to USD 20-25 billion by 2020 at a CAGR of 19-22%.
The
growth of Construction Equipment sector is intrinsically linked to the growth
in infrastructure development. Owing to a slowdown in key sectors like infrastructure,
mining, real estate, etc. coupled with higher interest rates, Construction
Equipment industry countered a difficult year in financial year 2011-12.
Business Overview
Greaves
Cotton is one of the few Indian Companies to offer products across core
Construction Equipment segment of compaction, concreting and earthmoving. It
manufactures a wide range of equipment at its plants in Gummidipoondi, near
Chennai. Greaves Cotton’s products are rated amongst the best in the Industry
and are marketed through its wide distribution network across the Country. Its
products in Road segment are supported by the world class technology from
BOMAG, a prominent global player.
Compaction Equipment
Greaves
manufactures a range of compaction equipment like single-drum vibratory
rollers, tandem vibratory rollers and pneumatic tyred rollers. These equipment
are used for compaction of soil and asphalt and primarily used in development
of new roads.
Well
below forecasts and targets, road construction in India is lagging behind; with
the total road addition of 1591 Kms against the target of 4582 Kms. Despite the
adverse impact of the slowdown on the Company’s business in this segment, the
Construction Equipment Business went ahead with its plans to expand the road equipment
portfolio by adding Milling Machines and Pavers in its product portfolio and
strengthened its positioning as an integrated player offering complete
solutions to the road construction Industry.
With
the order backlog with the Government of 2991 Kms and a proposed target of
awarding contracts for another 8000 Kms of roads to be built in the fiscal year
2012-13, the outlook for this segment appears quite positive.
Concreting Equipment
Greaves
Cotton manufactures various concreting equipment like Batching Plants, Transit
Mixers, Concrete Pumps and truck mounted Metro Pumps. Besides the slowdown in
real estate sector, the concrete equipment Industry did not perform to
expectations given the background of less than expected industrial development
across India, specially roads.
During
the year under review, the Company added 60 cubic meter Batching Plant to its
portfolio. Having launched new products, Construction Equipment Business plans
to grow and strengthen its product portfolio to emerge as a leading
infrastructure player. It also plans to augment its revenues through additional
streams like rental and trading services. Going forward the aim is to enhance
share of wallet in the concreting industry by offering integrated solutions
including power solutions with its batching plants.
Outlook
Increasing
cost as well as an absolute shortage of labour will encourage faster
mechanisation and the same augurs well for the growth of the Construction
Equipment segment. As per CII study, the volume of construction equipment sales
is expected to increase from over 60,000 units in 2010 to 330,000 units in
2020. The huge infrastructure deficit juxtaposed with high growth aspirations
provides an optimistic outlook for the construction sector, and the
Construction Equipment segment in particular appears promising in
medium-to-long-term. Government’s plan of doubling the infrastructure
expenditure outlay to USD 1 trillion for the 12th five year plan (2012-2017)
shall provide further fillip to the demand in this segment. Government’s thrust
on road projects, cooling down of interest rates and improved availability of
long-term credit bode well for the road-making sector.
INTERNATIONAL BUSINESS
Greaves
Cotton’s International Business is currently focused on fast growing
geographies of Middle East, Africa, South Asia and Southeast Asia. It is also
focusing on growing sales of Greaves Gensets in the Middle East and
construction equipment in the South Asian region. Despite political
uncertainties holding back growth in first half of the year, FY12 proved to be
a good year for International Business with its revenues growing by 172 %.
Following
a region-specific approach, it has identified & developed products relevant
for each of these regions and is accordingly developing its network and sales
strategy. Last year, the Company acquired one of its distributor firms, M/s.
Ascot International FZC (Ascot) in Sharjah with the prime objective of serving
its network in the Middle East. Despite strong macroeconomic headwinds,
International Business is confident of strong growth in these markets.
Outlook
With
improving global sentiments and growth in the Middle East & North Africa
(MENA) region, Greaves International Business expects a further improved
performance in FY13. With gradual political stabilization in most of the areas
of its operations, backed by increase in income from high crude oil and mineral
prices, IOD expects substantially improved performance in coming years.
INFORMATION TECHNOLOGY
Information
Technology (IT) is a vital element of Greaves Cotton’s business strategy and is
being used across Businesses to automate processes, share information and
minimise redundancies. Greaves has been consistently investing in IT to
leverage its potential and to address the fast changing needs of its
stakeholders.
With
passage of time, the boundaries have blurred, mobility has increased and the
employees have got location independent. For the very same reasons, Greaves
Cotton moved its enterprise email application to Cloud.
During
the year, the Company upgraded its SAP application that is used across
Businesses for material requirement planning & procurement application
(MRP). It automated certain processes to facilitate a better control over
movement and accounting of materials. In order to share best practices across
Businesses, IT also launched a comprehensive knowledge management portal for
manufacturing services and added several employee engagement applications to HR
processes in its Intranet.
UNAUDITED STAND-ALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS
ENDED DECEMBER 31, 2012
Rs. in Millions
|
|
Particulars |
Quarter
Ended |
Nine
Months Ended |
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
|
1. |
Net Sales/Income
from Operations |
5143.700 |
4494.300 |
13730.000 |
|
|
Other operating
income |
14.100 |
7.000 |
44.900 |
|
|
Total Income |
5157.800 |
4501.300 |
13774.9 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
3531.700 |
3084.200 |
9299.900 |
|
|
Purchase
of stock in trade |
94.000 |
88.800 |
241.100 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
(1.800) |
(28.500) |
97.500 |
|
|
Employee
benefits expenses |
375.900 |
359.000 |
1100.500 |
|
|
Depreciation
and amortization expenses |
98.600 |
94.000 |
281.500 |
|
|
Other
expenses |
441.000 |
421.300 |
1245.600 |
|
|
Total Expenses |
4539.400 |
4018.800 |
12266.100 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
618.400 |
482.500 |
1508.800 |
|
|
|
|
|
|
|
4. |
Other
Income |
68.500 |
20.400 |
118.300 |
|
|
|
|
|
|
|
5. |
Profit
from Ordinary Activities Before Finance costs and Exceptional Items (3+4) |
686.900 |
502.900 |
1627.100 |
|
|
|
|
|
|
|
6. |
Finance
costs |
2.200 |
1.600 |
6.900 |
|
|
|
|
|
|
|
7. |
Profit
from Ordinary Activities After Finance
costs Exceptional Items (5-6) |
684.700
|
501.300 |
1620.200 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
(141.800) |
(934.300) |
(176.100) |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
542.900 |
467.000 |
1444.100 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
199.300 |
131.400 |
449.400 |
|
|
|
|
|
|
|
11. |
Net Profit
from Ordinary Activities after Tax (9-10) |
343.600 |
335.600 |
994.700 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
- |
- |
- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
343.600 |
335.600 |
994.700 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Re. 2/- Each) |
488.400 |
488.400 |
488.400 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
- |
- |
- |
|
|
|
|
|
|
|
16. |
EARNINGS PER SHARE (EPS) |
|
|
|
|
|
(a) Basic EPS before & after Extraordinary Items (Not
Annualized) -Rs. |
1.41 |
1.37 |
4.07 |
|
|
(a) Basic EPS before & after Extraordinary Items (Not
Annualized) -Rs. |
1.41 |
1.37 |
4.07 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
118285229 |
118234529 |
118285229 |
|
|
-
Percentage of Shareholding |
48.44 |
48.44 |
48.44 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
- |
- |
- |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
- |
- |
- |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
- |
- |
- |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
125921566 |
125972266 |
125921566 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100.00 |
100.00 |
100.00 |
|
|
- Percentage
of Shares (as a % of the Total Share Capital of the Company) |
51.56 |
51.58 |
51.56 |
|
Particulars (Nos.) |
Quarter Ended 31.12.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unresolved at the end of the
quarter |
Nil |
SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND
NINE MONTHS ENDED 31ST DECEMBER 2012
|
|
Particulars |
Quarter
Ended |
Nine
Months Ended |
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
|
|
Segment Revenue |
|
|
|
|
|
a. Engines |
4577.700 |
4083.000 |
12284.100 |
|
|
b.
Infrastructure Equipment |
430.200 |
318.800 |
1103.900 |
|
|
c. Others |
164.200 |
110.600 |
415.900 |
|
|
|
5172.100 |
4512.400 |
13803.900 |
|
|
Less: Inter-Segment revenue |
14.300 |
11.100 |
29.000 |
|
|
Net sales/Income from operations |
5157.800 |
4501.300 |
13774.900 |
|
|
|
|
|
|
|
2 |
Segment Results |
|
|
|
|
|
(Profit before Tax, Interest & Finance charges |
|
|
|
|
|
a. Engines |
778.000 |
663.700 |
2025.300 |
|
|
b. Infrastructure Equipment |
(14.100) |
(30.000) |
(28.500) |
|
|
c. Others |
29.600 |
24.700 |
65.000 |
|
|
total |
796.200 |
658.400 |
2032.500 |
|
|
Less: Unallocable Expenditure |
|
|
|
|
|
(i) Interest & Finance charges |
2.200 |
1.600 |
6.900 |
|
|
(ii) Other
expenditure (Net of Other Income) |
109.300 |
155.500 |
405.400 |
|
|
(iii)Exceptional Items (Refer Note 1) |
141.800 |
34.300 |
176.100 |
|
|
Profit before Tax |
542.900 |
467.000 |
1444.100 |
|
3 |
Capital Employed |
|
|
|
|
|
(Segment Assets
-Segment Liabilities) (Based on estimates in terms of available data) |
|
|
|
|
|
a. Engines |
4754.600 |
4228.200 |
4754.600 |
|
|
b. Infrastructure Equipment |
1100.900 |
1124.800 |
1100.900 |
|
|
c. Others |
(13.800) |
(8.400) |
(13.800) |
|
|
Total Capital Employed in Segments |
5841.700 |
5344.600 |
5841.700 |
|
|
Add: Unallocable
Corporate Assets including Investments net of Liabilities |
1447.500 |
1714.700 |
1447.500 |
|
|
Total Capital Employed in the Company |
7289.200 |
7059.300 |
1447.500 |
Note:
1. Exceptional items constitute:
|
|
Quarter Ended 31-12-2012 |
Nine Months Ended 31-12-2012 |
|
|
(Unaudited) |
(Unaudited) |
|
a) Profit on sale of Land and Building |
- |
- |
|
b) Devaluation of Inventories |
- |
- |
|
c) Provision for diminution in value of Investment in a subsidiary |
(141.800) |
(141.800) |
|
d) Employee separation compensation |
- |
(34.300) |
|
Total |
(141.800) |
(176.100) |
2. The Board of
Directors declared a Third Interim Dividend of ` 0.40 per share of face value of
` 2/-each (Cash outgo ` 1120.00 Lacs). Thus, including First and Second Interim
Dividend, as declared on 6th September 2012 and 2nd November 2012 of ` 0.30 and
` 0.40 per share of face value ` 2/- each respectively, the total interim
dividend would be ` 1.10 per share of face value ` 2/- each for the financial
year 2012-13.
3. Figures for the
previous periods have been regrouped/reclassified, wherever necessary, to make
them comparable with the figures of the current period.
4. The above
financial results were subjected to limited review by the statutory auditors.
There are no qualifications in the limited review report issued in respect of
the above financial results.
5. The above
financial results were reviewed and recommended by the Audit Committee at its
meeting held on
29th January 2013
and then approved by the Board at its meeting held on 30th January 2013
CONTINGENT
LIABILITIES:
|
|
As at 31.03.2012 |
As at 31.03.2011 |
|
a) Sales Tax liability that may arise in respect of matters in appeal |
64.100 |
74.400 |
|
b) Excise Duty liability that may arise in respect of matters in
appeal |
23.100 |
22.100 |
|
c) Income Tax liability that may arise in respect of matters in appeal |
28.400 |
28.400 |
|
d) Claims made against the Company, not acknowledged as debts |
148.000 |
139.800 |
|
e) Wage demand not acknowledged by the Company in respect of matter in
appeal |
- |
33.700 |
|
f) Bonds executed in favour of Collector of Customs/Central Excise |
88.900 |
88.800 |
|
g) Guarantees given on behalf of a subsidiary company |
139.100 |
130.100 |
Notes:
1. The Company does not expect any reimbursement in respect of the above
contingent liabilities.
2. It is not practical to estimate the timing of cash outflows, if any,
in respect of matters (a) to (e)
Above, pending resolution of the appellate proceedings.
PRESS RELEASES:
GREAVES
LAUNCHES ‘USTAD’
April
15, 2013
…Forays into the mini- tractor 11-12 HP range Adds new products to augment Farm Equipment product portfolio….
Valsad, Gujarat, April 15, 2013: Greaves
Farm Equipment Business, part of Greaves Cotton Limited, one of India's leading
engineering companies, today launched its first –ever, compact, mini - tractor,
‘Ustad’. Greaves Ustad is present in the 11-12 HP range of entry level tractors
and caters to a land holding size of 3-5 acres. This smart working mini -
tractor comes with a variety of unique features. Designed primarily for farming
operations, Ustad lends itself to multiple operations such as haulage,
cultivator, seed drill, pesticide sprayer, rotavator etc.
Greaves Ustad is fitted with an emission compliant, easy to
service, economical and fuel-efficient Greaves G 600 W II engine with a Low
Diesel consumption of 1 lit./ hr. The 4 stroke direct injection single cylinder
engine offers a Maximum torque of 32 NM.
Greaves Ustad features forward - reverse with eight forward
and two reverse gears, completely sealed water proof mechanical brakes and a
pawl and ratchet type locking arrangement as a standard fitment. Ustad comes
with a combination of synchromesh, constant and sliding mesh gear shifting with
epicyclical planetary reduction gear that is suited for all agricultural
operations and haulage. Ustad presents a three point linkage allowing for
attachment of various implements like plough, cultivator, and harrow seed drill
and for movement of implements.
Speaking at the launch, Mr. Sunil Pahilajani, MD & CEO,
said, “The launch of Greaves Ustad is a testimony of our continuous focus on
new product development and innovation. It symbolizes our commitment of
providing the farming community a value for money product backed by a strong
after market support.”
“Our foray into the tractor segment completes the wide range
of existing farm offerings. Greaves Ustad is a smart mini- tractor option
available in the entry level 11 HP range. Farmers can now avail of a fuel
efficient, easily maneuverable mini- tractor that can perform multi tasks. Fuel
efficient features and advanced ergonomic design provide farmers a comfortable
driving experience coupled with functional superiority”, said Mr. C.M. Ashok
Muni, CEO, Farm Equipment Business. He added, “Our endevour is to provide
agricultural products that suit the Indian soil condition and crop pattern. The
newly launched Greaves Power Weeder and Paddy Weeder have received a positive
response in the market. We are confident that Ustad will also help in further
improving the lives of farmers through mechanized farming.”
About
Farm Equipment Business
Greaves Farm Equipment Business is one of the largest
suppliers of portable pumpsets in India. Aimed at providing happy and faster
harvesting experience, the business offers multiple solutions with fuel
variants, power variants and price variants to suit the farming requirements,
Indian soil type and crop pattern. As a single source for farm mechanization
equipment covering every stage of agriculture, the product offerings include petrol/kerosene
engines and pumpsets, diesel pumpsets, power tillers, paddy transplanters,
brush cutters, power reapers, power sprayers and mini combined harvesters. The
manufacturing facility is located at Gummudipoondi.
Greaves Automotive Engines Business, part of Greaves Cotton
Limited, one of India's leading engineering companies, has entered into a Long
Term Supply Agreement with Atul Auto Limited for supply of diesel engines for
their 3 wheeled diesel vehicles. The Agreement comes into force with immediate
effect and is for a period of seven years. Currently, Greaves engines power
Atul Smart, Atul Shakti and Atul Gem vehicles plying across the country.
Mr. Sanjiv Kumar, CEO - Automotive Engines Business, said
"Greaves engines have been driving vehicles from the Atul Auto stable for
almost three decades. This Agreement has reposed faith in each other and
strengthened the business relationship further. With a customer focused
approach, we believe that our technologically superior engines backed by a
strong after market network will compliment Atul Auto's business plans and will
together help grow the business."
Mr. JJ Chandra, CMD, Atul Auto added, "We enjoy a long
standing relationship with Greaves and they continue to be our preferred choice
of engine suppliers. Their understanding of customer requirements, commitment
to quality and highest service levels have catalysed and indeed partnered our
growth. With emerging categories in the auto segment we believe that new
vehicle platforms can be developed faster and more time efficiently with a
partner we can trust."
Greaves Automotive Engines Business has a wide portfolio in
automotive engines and in single cylinder engines they are among the largest
independent manufacturers with a production of over 4.5 lakh engines annually.
These eco-friendly light diesel engines are supplied to major automotive
players like Piaggio, M&M, Tata Motors, Scooters India among others.
The Company's manufacturing units, located at Ranipet in
Tamil Nadu and Aurangabad in Maharashtra, are ISO/TS 16949 certified. The
plants at both the locations are equipped with world class manufacturing
facilities. The company's state-of-the-art Technology Centre is located at
Aurangabad. The automotive diesel engines are also available for adaptation on
CNG/LPG usage. Greaves Cotton has an excellent after-market product support
infrastructure throughout India with a countrywide network of offices and over
1200 authorised dealers.
GREAVES
COTTON PLANS 3-PRONGED STRATEGY TO DERISK BIZ
April 17,2013
Auto industry body Society of Indian Automobile Manufacturers (SIAM)
says growth in FY14 will be among the low single-digits. So, an engineering
giant Greaves Cotton whose main focus was automotive segment has begun
taking steps at derisking its business. Steps like banking on products like the
mini-tractor, 'Ustad' to pull it back on the path of high growth.
The company is one of the largest suppliers
to the commercial vehicle business of Tata Motors and M&M and with projections that the
auto industry will not speed up anytime soon, it hopes to reduce its dependence
on its auto component vertical for revenues from the current 55 percent reports
CNBC-TV18's Sunanda Jayaseelan. However, vehicles like the Ustad are just one
part of a three-pronged strategy.
Commenting on their three-pronged strategy,
Sunil Pahilajani, MD & CEO, Greaves Cotton said, "The three dimensions
in which we are working is one is you extend your product range, second you
extend your market range and third is you extend your
geographies."
Extending market range includes entering and
strengthening its presence across the Middle East, South East Asia and South
Africa and increasing the contribution of exports from the approximate 1% right
now to 10% in the next 4-5years.
Ustad marks the start of an exercise to
strengthen its farm equipment portfolio. An expansion that will increase this
vertical's share of revenues from the current 15 percent and more new products
are expected to roll out soon.
"Challenges are of cyclic nature. The
industry is going through difficult period for most and growth is subdued. But
this is the right time when we should introspect and focus on several things
and our product strategy is one key element in that, added Pahilajani.
However Pahilajani is being
realistic when he says that any uptick in the farm equipment business may take
a couple of quarters more,
So, while the company waits for the market to pick up, it
will invest 100 crore rupees to build capacity across verticals.
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Freehold Building
·
Leasehold Building
·
Plant and Machinery
·
Office Equipment
·
Furniture and Fixture
·
Vehicles
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. 54.17 |
|
|
1 |
Rs. 82.45 |
|
Euro |
1 |
Rs. 70.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
63 |
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.