MIRA INFORM REPORT
|
Report Date : |
02.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
VOLTAS LIMITED |
|
|
|
|
Registered
Office : |
Voltas House,
"A", Dr. Babasaheb Ambedkar Road, Chinchpokli, Mumbai - 400033,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
06.09.1954 |
|
|
|
|
Com. Reg. No.: |
11-009371 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 330.746
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29308MH1954PLC009371 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV07842C MUMV07713G NGPV00559G MUMV04539D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV2809D |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The Business of Engineering Product Services for Mining, Water Management And Treatment, Construction Equipments and Textile Industry. |
|
|
|
|
No. of Employees
: |
8862 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 59000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exit |
|
|
|
|
Comments : |
Subject is a part of TATA Group. It is a well established and reputed
company having good track record. There appears an increase in its sales turnover
as well as net profitability during 2013. The general financial position of the company seems to be strong.
Liquidity of the company is good. Performance capacity of the company appears
to be high. Subject gets good support from its holding company. 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 business dealings 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.
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund Based Limit = AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
March 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non Fund Based Limit = A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
March 2013 |
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 : |
Voltas House,
"A", Dr. Babasaheb Ambedkar Road, Chinchpokli, Mumbai - 400033,
Maharashtra, India |
|
Tel. No.: |
91-22-56656666/
46102000/ 22618131 |
|
Fax No.: |
91-22-56656311/
22/ 46102331/ 22618504 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Thane Plant: 2nd |
|
Tel. No.: |
91-22-67920111 |
|
Fax No.: |
91-22-25343258 |
|
|
|
|
Factory 2 : |
Uttarakhand Plant (EM AND RBG) Plot No.1, Sector 8,, I.I.E. Pant Nagar Industrial Area, District |
|
Tel. No.: |
91-5944-250006 / 8 |
|
|
|
|
Factory 3 : |
Dadra Plant (EM AND RBG) Shreenath Industrial Estate, C Building, Survey No.197, Near Dadra
Check Post, Dadra – 396 230, |
|
Tel. No.: |
91-260-6619999 / 2669648 |
|
Fax No.: |
91-260-2669647 |
|
|
|
|
Factory 4 : |
Uttarakhand Plant (UPBG) Plot Nos.2-5, Sector 8 I.I.E. Pantnagar Industrial Area, District
Udham Singh Nagar, Rudrapur - 263 145, |
|
Tel. No.: |
91-5944-250009 |
|
|
|
|
Overseas Office 1 : |
Tata Limited ( 18, |
|
Tel. No.: |
44-207-2358281 / 8 (Board Line) |
|
Fax No.: |
44-207-2358727 |
|
E-Mail : |
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Overseas Office 2 : |
Voltas Limited ( |
|
Tel. No.: |
00971 (0) 2 6504511 (Board Line) |
|
Fax No.: |
00971 (0) 2 6504341 00971 (0) 2 6504361 |
|
E-Mail : |
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|
|
|
Overseas Office 3 : |
Saudi Ensas Company for Engineering Services WLL P O Box No. 8292, Salama Centre, Tower 5B, 3rd Floor, Prince Sultan Street, Jeddah 21482 Kingdom
of Saudi Arabia |
|
Tel. No.: |
9662 6831466, 6165957 / 8 / 9 (Board Line) |
|
Fax No.: |
9662 69115400 |
|
E-Mail : |
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|
Overseas Office 4 : |
Voltas Limited ( 4th Floor, Zayani House 419, Road 1705, Diplomatic Area, |
|
Tel. No.: |
9731-7581979 |
|
Fax No.: |
9731-7581320 |
|
E-Mail : |
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|
|
|
Overseas Office 5 : |
Voltas Limited ( Al |
|
Tel. No.: |
974 44569941 / 6 / 7 (Board Line) |
|
Fax No.: |
974 44551268 |
|
E-Mail : |
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|
Overseas Office 6 : |
Voltas Limited ( |
|
Tel. No.: |
+ 966 2 6831466 |
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|
|
|
Overseas Office 7 : |
Voltas Limited ( |
|
Tel. No.: |
65 - 63366778 (Board Line) |
|
Fax No.: |
65 - 63366766 |
|
E-Mail : |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Ishaat
Hussain |
|
Designation : |
Chairman cum
Managing Director |
|
Date of Birth |
02.09.1947 |
|
Qualification |
Chartered
Accountant, |
|
Date of
Joining |
26.04.1999 |
|
Other
Directorship |
|
|
|
|
|
Name : |
Mr. Sanjay Johri |
|
Designation : |
Managing Director |
|
Date of Birth |
10.02.1953 |
|
Qualification |
Masters in Economics – Delhi School of Economics |
|
Date of
Joining |
23.04.2010 |
|
Other
Directorship |
Simto Investment Company Limited |
|
|
|
|
Name : |
Mr. Nasser Munjee |
|
Designation : |
Director |
|
Date of Birth: |
18.11.1952 |
|
Qualification: |
Masters in Economics – London School of Economics, U.K. |
|
Date of
Appointment: |
29.12.1997 |
|
List of other
public limited companies in which Directorship held as on 20th May, 2013 |
|
|
Chairman/Member of
the Committees of the Board across all public companies of which he is a
Director as on 20th May, 2013 |
Audit Committee – Chairman
Audit Committee – Chairman
Audit Committee – Chairman
Audit Committee – Chairman
Audit Committee – Chairman
Audit Committee – Member
Audit Committee – Member
Audit Committee – Member
Audit Committee – Member |
|
|
|
|
Name : |
Mr. N.N Tata |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.N. Menon |
|
Designation : |
Director |
|
Date of Birth |
20.09.1946 |
|
Qualification |
M.A. (History), Delhi University Hubert H. Humphery North-South Fellowship under the Fulbright Programme – University of Minnesota, USA |
|
Date of
Joining |
22.09.2008 |
|
Other
Directorship |
|
|
|
|
|
Name : |
Mr. Nani Javeri |
|
Designation : |
Director |
|
Date of Birth: |
04.04.1946 |
|
Qualification: |
B.A. History (Hons.) |
|
Date of
Appointment: |
29.10.2009 |
|
List of other
public limited companies in which Directorship held as on 20th May, 2013 |
|
|
Chairman/Member of
the Committees of the Board across all public companies of which he is a
Director as on 20th May, 2013 |
Audit Committee – Chairman
Audit Committee – Member |
|
|
|
|
Name : |
Mr. R.N. Mukhija |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vinayak Deshpande |
|
Designation : |
Director |
|
Date of Birth |
21.07.1957 |
|
Qualification |
B.Tech (Chemical Engineering) IIT, Kharagpur |
|
Date of
Joining |
14.02.2012 |
|
Other Directorship |
|
|
|
|
|
Name : |
Mr. Thomas T. Mathew |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. V. P.
Malhotra |
|
Designation : |
General Manager –
Taxation and Company Secretary |
|
|
|
|
Audit
Committee : |
|
|
|
|
|
Remuneration Committee : |
|
|
|
|
|
Shareholders/
Investors Grievance Committee : |
|
|
|
|
|
Corporate
Management : |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
99753480 |
30.15 |
|
|
99753480 |
30.15 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
99753480 |
30.15 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
16337658 |
4.94 |
|
|
851521 |
0.26 |
|
|
67551639 |
20.42 |
|
|
59963380 |
18.12 |
|
|
144704198 |
43.73 |
|
|
|
|
|
|
15912537 |
4.81 |
|
|
|
|
|
|
63208555 |
19.10 |
|
|
1390464 |
0.42 |
|
|
5915506 |
1.79 |
|
|
89850 |
0.03 |
|
|
3524196 |
1.07 |
|
|
2301460 |
0.70 |
|
|
86427062 |
26.12 |
|
Total Public shareholding (B) |
231131260 |
69.85 |
|
Total (A)+(B) |
330884740 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
330884740 |
0.00 |
Shareholding belonging to the category
"Promoter and Promoter Group"
|
Sl. No. |
Name of the
Shareholder |
|
|
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
|||
|
1 |
Tata Sons Limited |
88131780 |
26.64 |
26.64 |
|
2 |
Tata Investment Corporation Limited |
9462330 |
2.86 |
2.86 |
|
3 |
Ewart Investments Limited |
1925950 |
0.58 |
0.58 |
|
4 |
Tata Power Company Limited |
233420 |
0.07 |
0.07 |
|
|
Total |
99753480 |
30.15 |
30.15 |
Shareholding belonging to the category
"Public" and holding more than 1% of the Total No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
1 |
Life Insurance Corporation of India |
29672394 |
8.97 |
8.97 |
|
2 |
Government Pension Fund Global |
15312143 |
4.63 |
4.63 |
|
3 |
Birla Sun Life Insurance Company Limited |
8015630 |
2.42 |
2.42 |
|
4 |
Eastspring Investments India Equity Open Limited |
6097930 |
1.84 |
1.84 |
|
5 |
Vidya Investment And Trading Co Private Limited |
5645741 |
1.71 |
1.71 |
|
6 |
LIC of India Market Plus 1 Growth Fund |
4948019 |
1.50 |
1.50 |
|
7 |
General Insurance Corporation of India |
4708591 |
1.42 |
1.42 |
|
8 |
ICICI Prudential Discovery Fund |
4522009 |
1.37 |
1.37 |
|
9 |
Merrill Lynch Capital Markets ESPANA S A S V |
3971500 |
1.20 |
1.20 |
|
10 |
New India Assurance Company Ltd |
3923682 |
1.19 |
1.19 |
|
11 |
British Columbia Investment Management Corporation A/c Emerging Markets Equity Fund |
3433425 |
1.04 |
1.04 |
|
|
Total |
90251064 |
27.28 |
27.28 |
Shareholding belonging to the category
"Public" and holding more than 5% of the Total No. of Shares
|
Sl. No. |
Name(s) of the
shareholder(s) and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of
Total No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
1 |
Life Insurance Corporation of India and PAC |
43012742 |
13.00 |
13.00 |
|
2 |
ICICI Prudential Mutual Fund and Asset Management and PAC |
21089375 |
6.37 |
6.37 |
|
|
Total |
64102117 |
19.37 |
19.37 |
BUSINESS DETAILS
|
Line of Business : |
The Business of Engineering Product Services for Mining, Water Management And Treatment, Construction Equipments and Textile Industry. |
GENERAL INFORMATION
|
No. of Employees : |
8862 (Approximately) |
||||||||||||||||||
|
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|
||||||||||||||||||
|
Bankers : |
Overseas
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Messrs Deloitte
Haskins and Sells Chartered Accountants |
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Joint Ventures : |
|
|
|
|
|
Promoter holding together with its subsidiary more than 20% |
Tata Sons Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
600000000 |
Equity Shares |
Re.1/- each |
Rs.600.000
millions |
|
4000000 |
Preference Share |
Rs.100/- each |
Rs.400.000
millions |
|
|
Total |
|
Rs.1000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
330884740 |
Equity Shares |
Re.1/- each |
Rs.330.885
millions |
|
|
Less: Calls in Arrears |
|
Rs.0.139 million |
|
|
Total |
|
Rs.330.746 Millions |
(a) Equity Shares: The Company has one class of equity shares having a par value of Rs.1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding and are subject to preferential rights of the Preference shares (if issued).
(b) A reconciliation
of the number of shares outstanding at the beginning and at the end of the
reporting period:
|
Particulars |
Numbers |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
33,08,84,740 |
330.885 |
|
Shares outstanding at the end of the year |
33,08,84,740 |
330.885 |
(c) Shares in the Company
held by each shareholder holding more than 5 percent shares specifying the
number of shares held in the Company:
|
Particulars |
No. of Shares held |
% of Holding |
|
Tata Sons Limited |
8,81,31,780 |
26.64% |
|
Life Insurance Corporation of India |
2,96,72,394 |
8.97% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
330.746 |
330.744 |
|
(b) Reserves & Surplus |
|
14495.337 |
13305.944 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
|
14826.083 |
13636.688 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
274.916 |
191.570 |
|
(d) long-term provisions |
|
774.479 |
743.538 |
|
Total Non-current
Liabilities (3) |
|
1049.395 |
935.108 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
2119.676 |
1777.941 |
|
(b) Trade payables |
|
15257.646 |
13522.275 |
|
(c) Other current liabilities |
|
5469.198 |
6119.081 |
|
(d) Short-term provisions |
|
1751.053 |
1741.992 |
|
Total Current
Liabilities (4) |
|
24597.573 |
23161.289 |
|
|
|
|
|
|
TOTAL |
|
40473.051 |
37733.085 |
|
|
|
|
|
|
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
1682.942 |
1533.108 |
|
(ii) Intangible Assets |
|
77.975 |
106.411 |
|
(iii) Capital work-in-progress |
|
0.052 |
40.330 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
2417.982 |
2460.749 |
|
(c) Deferred tax assets (net) |
|
244.577 |
261.463 |
|
(d) Long-term Loan and Advances |
|
1531.644 |
1078.015 |
|
(e) Other Non-current assets |
|
853.135 |
1035.755 |
|
Total Non-Current
Assets |
|
6808.307 |
6515.831 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
3180.443 |
2213.334 |
|
(b) Inventories |
|
8327.377 |
7537.651 |
|
(c) Trade receivables |
|
11682.619 |
10073.126 |
|
(d) Cash and cash equivalents |
|
2585.854 |
2053.815 |
|
(e) Short-term loans and advances |
|
1703.311 |
1971.492 |
|
(f) Other current assets |
|
6185.140 |
7367.836 |
|
Total Current Assets |
|
33664.744 |
31217.254 |
|
|
|
|
|
|
TOTAL |
|
40473.051 |
37733.085 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
330.743 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
12386.648 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
12717.391 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
939.055 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
939.055 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
13656.446 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
1835.380 |
|
|
Capital work-in-progress |
|
|
6.086 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
3934.716 |
|
|
DEFERREX TAX ASSETS |
|
|
169.636 |
|
|
Other Non-Current Assets |
|
|
997.215 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
7547.574 |
|
|
Sundry Debtors |
|
|
9065.530 |
|
|
Cash & Bank Balances |
|
|
4250.646 |
|
|
Other Current Assets |
|
|
7579.790 |
|
|
Loans & Advances |
|
|
2585.913 |
|
Total
Current Assets |
|
|
31029.453 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
13239.836 |
|
|
Other Current Liabilities |
|
|
8167.729 |
|
|
Provisions |
|
|
2908.475 |
|
Total
Current Liabilities |
|
|
24316.040 |
|
|
Net Current Assets |
|
|
6713.413 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
13656.446 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
55654.318 |
51697.633 |
51483.997 |
|
|
|
Other Income |
969.649 |
1108.064 |
601.973 |
|
|
|
TOTAL (A) |
56623.967 |
52805.697 |
52085.970 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of raw materials, cost of jobs and services |
26820.413 |
24913.211 |
22874.488 |
|
|
|
Purchase of traded goods |
17350.522 |
14271.714 |
15662.019 |
|
|
|
(Increase) / Decrease in finished goods, work-in-progress and stock-in-trade |
(429.142) |
(195.270) |
(1260.305) |
|
|
|
Employee benefits expenses |
5670.372 |
5519.692 |
5145.036 |
|
|
|
Other expenses |
4308.014 |
4168.585 |
4594.751 |
|
|
|
Exceptional Items |
(83.184) |
1509.527 |
(448.009) |
|
|
|
TOTAL (B) |
53636.995 |
50187.459 |
46567.980 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2986.972 |
2618.238 |
5517.990 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
339.126 |
259.040 |
130.811 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2647.846 |
2359.198 |
5387.179 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
222.101 |
285.733 |
164.546 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2425.745 |
2073.465 |
5222.633 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
625.006 |
554.759 |
1687.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1800.739 |
1518.706 |
3535.333 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1590.168 |
886.762 |
820.554 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
200.000 |
2700.000 |
|
|
|
Dividend |
529.416 |
529.416 |
661.769 |
|
|
|
Tax on Dividend |
89.974 |
85.884 |
107.356 |
|
|
BALANCE CARRIED
TO THE B/S |
2571.517 |
1590.168 |
886.762 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of Export |
318.753 |
264.486 |
474.056 |
|
|
|
Commission Earnings |
49.916 |
71.920 |
135.651 |
|
|
|
Other Earnings |
72.806 |
98.526 |
50.438 |
|
|
TOTAL EARNINGS |
441.475 |
434.932 |
660.145 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
115.522 |
353.658 |
232.394 |
|
|
|
Finished Goods |
4553.940 |
7742.867 |
4515.394 |
|
|
|
Stores & Spares |
3536.269 |
4632.956 |
2159.162 |
|
|
|
Capital Goods |
26.709 |
26.228 |
3.478 |
|
|
TOTAL IMPORTS |
8232.440 |
12755.709 |
6910.428 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.44 |
4.59 |
10.68 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.19 |
2.88 |
6.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.36 |
4.01 |
10.14 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.41 |
5.92 |
15.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.15 |
0.41 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.14 |
0.13 |
0.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.37 |
1.35 |
1.28 |
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 |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
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 |
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
DETAILS OF LITIGATION
Case Details
Bench-Bombay
Stamp No.: AOST/19306/2013
Filing Date: 15.07.2013
Stamp No.: AOST/19306/2013
Petitioner: Raymond Limited Respondent:
M/S Voltas Limited
Petn. Adv: Wadia Bhandy and Company
District: Mumbai
Bench: Single
Status: Pre- Admission
Last Date: 22.07.2013
Last Coram: Registrar (Judicial)
Act: C.P.C. – (Interlocutory Order)
PRESS RELEASE
May 20, 2013 Mumbai: The Board of Directors of Voltas Limited, a global air conditioning and engineering services provider of the Tata Group have today announced the Consolidated Audited Financial Results and Segment Report for the year ended March 31, 2013.
Quarter ended 31st
March, 2013:
The consolidated Sales/Income from operations for the quarter ended 31st March, 2013 was Rs.15920.000 millions as compared to Rs.15730.000 millions in the corresponding quarter last year. Operating Profit for the quarter was Rs.780.000 millions as compared to Rs.1380.000 millions in the corresponding quarter last year. The Profit before tax (after exceptional items and additional charge of Rs 960.000 millions towards the onerous contract) was Rs. 140.000 millions for the current quarter as compared to Rs.1410.000 millions in the corresponding quarter last year. As a result, Net Profit after Minority interest for the current quarter was lower at Rs.90.000 millions as compared to Rs.1040.000 millions in the corresponding quarter last year.
Year Ended 31st
March, 2013:
The consolidated Sales/Income from operations for the year 2012-13 was higher at Rs 55140.000 millions as compared to Rs 51750.000 millions in the previous year. However, due to difficult global economic conditions and uncertainties, coupled with high interest rates, inflation, increase in input costs, most of the businesses were adversely impacted and the Operating Profit was at Rs 2680.000 millions for the year under review as compared to Rs 3700.000 millions last year. After exceptional items including additional charge of Rs 960.000 millions on the onerous contract, Profit before tax was Rs 2800.000 millions and Net Profit (after Minority Interest) was Rs 2080.000 millions as compared to Rs 2190.000 millions and Rs 1620.000 millions, respectively in the previous year.
The Board has recommended dividend of Rs 1.60 per share of Re. 1/- each (160%) for the year ended 31st March, 2013.
Electro - Mechanical
Projects and Services:
Segment's revenue was higher at Rs 32000.000 millions as compared to Rs 31830.000 millions last year. However, profitability of this segment, especially on account of overseas projects, was significantly impacted and lower at Rs 510.000 millions as compared to Rs 1720.000 millions last year.
As earlier reported, execution of Sidra Medical and Research Centre hospital project in Qatar (Onerous contract) has been facing several impediments and constraints arising from delay in designs, frequent changes in architectural/interior layouts, ceiling height restrictions and abortive engineering/ rework. The Company had, in line with the requirements of Accounting Standard (AS) 7, accounted for Rs 2770.000 millions in the previous year, based on a techno-commercial review by the Management taking cognizance of cost incurred and to be incurred, to complete this project based on information available at that time. However, considering the further elongated schedule of completion recently intimated by the Main Contractor, including certain subsequent developments, additional net cost overruns of Rs 960.000 millions have been accounted for on this Onerous contract in 2012-13. Nevertheless, the risk of uncertainties continues to exist on variations/ additional revenue claims and costs to come till the completion of the project due to the complex nature of the 'design and build' project.
Domestic Project
Business:
The Domestic projects business also had its share of challenges primarily on account of external factors which has impacted both, turnover and profitability of this business. Despite the subdued investment climate, the domestic electromechanical projects business was able to secure orders at reasonable gross margins/ profit ability.
The Order Book of the Electro - Mechanical Projects and Services Segment stood at Rs.37190.000 millions as at 31st March, 2013 as compared to Rs. 42920.000 millions as at the end of the previous year.
Engineering Products
and Services:
Both Textile Machinery and Mining & Construction businesses have performed well on the strength of fresh orders, new offerings and their customer-centric approach. The fate of this business is intertwined, and gets impacted, by changes in interest rates, availability of electricity and government policies. Revenues and Results of this segment were at Rs. 4310.000 millions and Rs. 840.000 millions respectively as compared to Rs. 4120.000 millions and Rs. 690.000 millions, respectively, last year.
Unitary Cooling
Products for Comfort and Commercial use:
Despite intense competition / new players entering the market, unfavorable climatic conditions and subdued consumer sentiments, Voltas sustained its No. l market position in the Unitary Cooling Products business for most part of the year. Though the AC industry witnessed de-growth in sales volumes in 2012-13, the Segment's Revenue increased by 19% and was Rs.18360.000 millions for the year under review as compared to Rs.15390.000 millions last year. Profit was also higher at Rs.1730.000 millions as compared to Rs.1300.000 millions last year.
OPERATIONS
In terms of both domestic and global economic growth, momentum was slower than anticipated. The much awaited economic recovery was delayed, with an extensive bottoming-out phase. The Indian Rupee sank to new lows due to excessive volatility in exchange rates. Although there was some respite, interest rates and inflation continued to pose serious challenges for major parts of the year. Capital investments in Projects in India were at levels as low as at the year 2004, according to some reports. The pace of execution also posed enormous challenges, leading to cost overruns and margin dilution in projects. Dampened sentiment impacted consumer behavior, with the Room AC industry reporting ade-growth. Despite an overall depressed environment, the Consolidated Sales and Income from Operations for the financial year 2012-13 was higher by 7% at Rs. 55840.000 millions compared to Rs. 52190.000 millions in the previous year. Consolidated Profit after Tax and Minority Interest was also higher by 28% at Rs. 2080.000 millions, as against Rs. 1620.000 millions, last year.
The performance of electro-mechanical projects business, both in international and domestic geographies, was below par, also symptomatic of the endemic downtrend in the Projects industry. Execution of projects has been plagued by elongated schedules and delayed clearances. These problems were especially severe in the Company’s project for the Sidra Medical and Research Centre, under execution at Qatar. Revenue from variations is foreseen, and will be accounted in subsequent periods based on their realization. Nevertheless, the Company continues to deal objectively with the challenges faced, and frame a longer-term business strategy for future growth opportunities.
Similar adversity was faced by the Domestic Projects business, coupled with delayed payments, putting strain on working capital and cash flows. Several mitigation efforts are under way, including measures laid down in the previous year to reduce operational and administrative costs. The business has also adopted various IT initiatives and process changes to curb the dilution of margins that is now endemic across the Projects Industry landscape.
The Domestic Projects business continues its endeavour to extract synergies from the Water business and Rohini Industrial Electricals Limited (RIEL), under the integrated banner of the Domestic Projects Group (DPG). There have, however, been a number of challenges. The low-margin ‘legacy’ orders have again impacted RIEL’s performance. The Management has conservatively written down the value of investment in this business to the extent of Rs.170.000 millions. Nevertheless, the business continues to aggressively pursue profitable orders in its consolidated DPG identity.
The consolidated order book for the Projects Business stands at Rs. 37190.000 millions, yielding healthy visibility for the coming year.
The Engineering Products business too suffered its fair share of challenges. Most severe of all has been the ongoing ban on mining activities in several States in India, which deeply cut into the Mining and Construction Equipment business. Such problems have added impetus to the business’ efforts to seek greener pastures overseas. By leveraging its existing client relationships, the business has been successful in converting opportunities arising from overseas pursuits of existing customers. The ongoing Mozambique venture continues to be lucrative, providing a natural hedge against domestic setbacks. Strategically, the Company is investing substantially in expanding and reinforcing its credentials in product support, as well as its Operations and Maintenance capability.
The textile industry in India suffered the ill-effects of highly volatile cotton prices, combined with high inflation and interest rates, severe power shortages in South India and of course, the depressed global market. However, in the last few months of the year, the industry showed signs of revival, thanks to rising global and national demand for loom, coupled with the prospect of investment-friendly Governmental policy initiatives. Overall, the Textile Machinery business was well able to sustain its performance and even strengthen its presence in non-spinning segments.
In the Unitary Cooling business, the Company enjoyed the No.1 market position for most of the year, attributable largely to brand development and communications based on extensive market research. Along with substantial growth in both volume and market share of Room ACs, the business has benefited from better traction in Commercial Refrigeration products through sizable OEM orders. Growth in the Unitary Cooling business was achieved in the face of markedly more intense competition, as well as unfavorable climatic conditions and poor consumer sentiment. These factors did take a toll on the industry overall, which suffered aggregated sales volume de-growth of around 5%, according to GFK Report.
As part of its strategy to focus on core competencies, the Company has, during the year , hived off its subsidiary, Simto Investment Company Limited. In view of the transfer of the Materials Handling business to a JV with Kion in the previous year, the Company divested its investment in the JV to the Kion Group, thus exiting the business entirely.
TATA BUSINESS
EXCELLENCE MODEL (TBEM)
In line with the decision taken at the Group level in respect of TBEM assessments, the Company is focusing on carrying out relevant integration activities and findings of past TBEM assessments are being reviewed. The intention is to participate in the TBEM External Assessments in a unified manner i.e. at Company level and not at individual Business Unit level, as hitherto in the past. In addition, the Company has undertaken several ‘Continual Improvement Projects’ with the objective of improving operational efficiencies in areas critical to the respective Business Units/Functions. The Company’s unified participation is proposed for the Group Level External Assessment to be held in the next financial year.
To support its Business Excellence journey, the Company continues to develop a pool of trained TBEM assessors, and also provides trained assessors for the Group-level TBEM Assessment Process. The Company currently has over 70 TBEM Champions, of whom more than 30 are certified in the most up-to-date TBEM Criteria. During the year, 13 assessors participated in the Group level TBEM assessments and their contribution won the formal recognition at the Group-level Business Excellence Convention held in December 2012.
IT INITIATIVES
The Management continued its drive to improve organizational efficiency and productivity by developing appropriate IT-based solutions. During the year, the focus was on automation of business processes, including Project Accounting, Payroll, HR and Customer Relationship Management (CRM).
The Project Result Analysis process for Domestic Projects has yielded benefits in terms of better control over project costs, revenue and profitability. The integration of Payroll with the Human Capital Management (HCM) system for overseas employees helped in seamless payroll processing. CRM software was further refined for Unitary Products business, with expectations of quicker closure of dealer and franchisee payments and better customer service.
Due to increased emphasis on Compliance and Risk Mitigation, all SAP roles were redesigned and users were properly authorized through SAP’s Governance and Risk Compliance (GRC) Access Control tool. This has minimized the risks and conflicts within the SAP environment, with a suitable strategy for control and mitigation for each conflict identified.
In view of critical role of IT in all operations, many improvements were carried out to increase performance, reliability and security of underlying systems. These included: redesign and redeployment of the Disaster Recovery system for all crucial servers; clean-up of Master Data for Customers and Vendors; putting in place new policies and processes for network and end-user security and deployment of IDEA, a software tool to assist the Internal Audit Department for data analysis.
GLOBAL COMPACT AND
CARBON DISCLOSURE PROJECT
The Company is a signatory to the UN Global Compact and continues its commitment to adhere to the principles of the Global Compact. The Communication on Progress (COP) for the financial year 2012-13 has been uploaded along with the Letter of Support, on the Global Compact website.
OVERVIEW
The Company continued to face difficult macroeconomic conditions both at home and abroad in the financial year 2012-13. The domestic situation remained discouraging, marked by liquidity crunch, high inflation and foreign exchange rate fluctuations, leading to low business confidence and deferral of capital investments. Accordingly, the pace of progress was slow, and consumer demand stayed muted. Despite signs of economic stabilization in the US and China, the Euro area continued to give cause for concern. Against this back drop, the Company’s performance was by and large in line with the expectations.
The Products business was more resilient in its quest to sustain performance and prepare for future growth opportunities. The Unitary Cooling business retained its leadership in market share through most of the year and increased its revenue by 16%, while sowing the seeds of future growth through its ‘All-weather’ brand positioning.
The Engineering Products segment also overcame various hurdles to sustain its performance, largely through timely introduction of new offerings and leveraging its customer-centric strengths. This business continues to expand its portfolio through new principals and products, as well as other strategic tie-ups to cater to the varied needs of more diverse customers.
The Domestic projects business, leveraging its diversified offerings and focusing on select opportunities in the Industry and Urban Infrastructure segments was able to grow their order book by 17.5% over last year. In addition, the Company also completed the execution of some large orders, such as the Chennai Airport and Kolkata International Airport, to the satisfaction of the Client.
However, the adverse environment did take a toll on the projects businesses, causing a drop in their performance, both in terms of profitability and order growth for overseas projects. Such setbacks were most strikingly evident in the International Business and notably in Qatar on the Sidra Medical and Research Centre project, given its design-and-build complexities and its completion schedule getting further extended.
While keeping up the efforts to improve the order inflow and develop new geographies, the Company adhered to its margin criteria. In order to contend with intensifying competition, the Management adopted a well thought out response strategy to leverage its track record, strengths and reputation built over the last four decades. New leadership is in place where required and business boundaries have been drawn in terms of both margin thresholds and geographies. With these measures, the Projects businesses are consolidating their interests and looking ahead at improving profitability.
Despite the disheartening economic climate, the Company kept alive its vision and direction towards ‘Engineering Solutions for a Greener Tomorrow’, which was framed on a foundation of Tata values. This was evidenced by the continued focus on developing ‘Star-rated’ energy-efficient room ACs, and the growing pursuit of projects designed for ‘Green Mark’ and ‘LEED’ certification. Water business is building up its strengths and resources as a potential provider of ‘green’ solutions in the water-conscious future.
Revenue and Operating Profits (Profit before exceptional items) of Voltas (standalone and consolidated) for the period between financial year 2007-08 and 2012-13 are given below:
The business segments of Voltas (Standalone and Consolidated) are:
‘A’ - Electro-mechanical Projects and Services
‘B’ - Engineering Products and Services
‘C’ - Unitary Cooling Products for Comfort and Commercial use
‘D’ – Others
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
Domestic
The addressable market for domestic projects showed slow growth at 5%, testimony to the significantly more challenging environment facing the industry, marked by intensifying competition, low margins, rising input costs, uncertainty in cash flows and increasingly risk-averse clients who shied away from making new investments. Even finalized projects were prone to delays in awarding and execution.
In spite of the prevailing economic sluggishness, the Company’s domestic Projects business achieved order-book growth of around 17.5% by securing several large orders in IT/ITES industry and urban infrastructure and had a carry forward order book position of over Rs. 16000.000 millions at the year end. These included a fresh package for Tata Steel at Kalinganagar (value over Rs. 1820.000 millions) including a Raw Water Treatment plant of 96 MLD capacity (valued at Rs. 820.000 millions) and Chennai Metro Rail (Rs. 1250.000 millions), various projects for TCS valued at over Rs. 1000.000 millions and a modern automated solution for complete water management for Gujarat International Finance Tec-City.
The new orders came on the heels of successful completion of several projects during the year, including Chennai Airport (Rs. 1230.000 millions), Kolkata’s Netaji Subhash Chandra Bose International Airport (Rs. 1470.000 millions), Tata Steel 3MT expansion project with overhead yard utility piping at Jamshedpur (Rs. 500.000 millions) and many projects in the IT/ ITES sector. Also noteworthy was the Company’s success in establishing its execution capabilities as a prominent player in water treatment, as it continues execution of water systems for Tata Steel Kalinganagar plant worth Rs. 1650.000 millions, SAIL Rourkela, an effluent treatment plant for Bokaro Steel and effluent treatment with zero liquid discharge for Matix Fertilisers.
In spite of successful job completions and new orders being received at reasonable margins, the unpredictable costs of inputs and other resources often lead to budget overruns, impacting profitability. Consequently, the Company took several steps to improve and protect the bottom line for future projects, by focusing on mid-sized and large MEP projects with definite timelines; unifying HVAC, Electrical and Water Management businesses; and improving penetration of Products.
On the Products front, the Company made several significant advances. These included:
- Improved profitability and turnover compared to the previous year.
- Improved penetration in the chiller package segment.
- Introduction of ductable split units and scroll chiller package using micro-channel heat exchangers and R-410A refrigerant.
- Development of energy-efficient water-cooled screw chillers with Variable Frequency Drive.
- Development of solar-based Vapour Absorption Chillers.
- AHRI, CE and EN 1886 certification to HVAC equipment.
Rohini Industrial Electricals Limited (RIEL) continues to experience challenges in improving profitability and has reported a loss in 2012-13. Given the external environment, the progress in execution of carried-forward orders was slow impacting its turnover and delaying the closure of unprofitable legacy orders. Nevertheless, with integration of RIEL with the larger Domestic Projects business of the Company, RIEL has built up a healthy order book position. RIEL has also reduced its overhead costs and is closely monitoring progress across various performance improvement measures.
INTERNATIONAL
The global economic recession continued its impact on the construction market in the Middle East. Business confidence remained depressed, with a lingering tendency to postpone investment decisions, with several targeted projects in Kingdom of Saudi Arabia (KSA), Abu Dhabi and Muscat, awaiting decisions.
Nevertheless, the Middle East construction market showed some signs of recovery in 2012-13 and in terms of construction contracts being awarded, the Construction markets in UAE, Qatar and KSA, have recorded improvements in value of awards as compared to the previous year.
Despite these positive trends, operating margins continued to dwindle across the industry, under pressure from intensifying competition for smaller slices of the pie. Further, construction and development firms faced constraints in the availability of credit. These proved to be barriers to entry into the emerging opportunities, leading them to turn to pursuing government projects instead, where capital requirements were more manageable. Compounding the difficulty were a host of other systemic challenges: intense and often illogical competition, rising input costs, increasingly risk-averse clients reluctant to make large-scale commitments, reluctance to grant mobilization advances, extended delays in project awarding and execution, and a tendency to dispute legitimate contractor claims and variations.
The Company’s international projects business therefore revisited its posture and instituted a new approach that stressed: immediate focus on execution of existing projects, to hasten their contractual and financial closure; not to bid for low margin jobs in congested segments; focus on the quality of the order book; claiming of entitlements; and partnering with competitors in strategic segments and projects.
In keeping with the new direction, the Company made significant progress towards completion of several projects in UAE and Qatar, such as the Rs. 8000.000 millions Central Market Redevelopment project in Abu Dhabi and a Rs. 3600.000 millions Utility Complex project in Riyadh. Following its pursuit of advantageous alliances, the Company formed a project specific JV at Qatar for execution of the prestigious North Gate Mall, valued at Rs. 3600.000 millions.
The Iconic Sidra Medical and Research Centre project in Qatar is well over 90% complete. There have been some delays in the project, in terms of achievement of the earlier targeted milestones, most of which would not be wholly attributable on part of the Company. Considering the revised elongated project schedule, the Management has reviewed the earlier estimates, verifying that Accounting Standards (AS-7) were met. In view of upward revision in the estimated costs, the Company has, during the year made further provision in accordance with the requirements of AS-7. However, uncertainties exist due to the complex nature of the ‘design and build’ project, changes in design made by the client and delay in completion of the project. Further, the Company is closely monitoring the progress on this project. At the same time, the Company has lodged its claims for various contract entitlements, change requests including prolongation, disruption and acceleration claims which are /negotiations with the Client/Main Contractor. Revenue from the aforesaid claims/change requests, etc. would be recognized and accounted for once the amounts are certified and/or agreed upon by the Client/Main Contractor. In the interim, work proceeds with commitment, since by accomplishing a project of such iconic nature, the Company would strengthen its prospects when contracts are floated for the FIFA World Cup to be held in the year 2022. It would also add substantially to its credentials in the healthcare sector, a fast-growing opportunity area in the region.
For the third consecutive year, the Company won the coveted ‘MEP Middle East Contractor of the Year’ award, shared with consultant Atkins, for Abu Dhabi’s Yes Water World. It was a repeat of earlier victories, in the year 2011 for Dubai’s Etihad Towers, and 2010 for Abu Dhabi’s Ferrari World. The MEP awards, which are known as the industry’s most sought after tribute in the region, were in acknowledgement of the Company’s proven reliability, strengths and performance as seen in numerous iconic projects in the Middle East and elsewhere.
Taking a longer view, the Company’s Management adopted several institutional measures to leverage the strengths and reputation built over the last four decades in pursuit of growth. New leadership was put in place where required, operating structures and processes were reorganized, business boundaries were drawn in terms of both, margin thresholds and geographies and the practice of leveraging local JVs and partnerships was prioritized. With these measures, the International Projects business is consolidating its interests and looking ahead at improving its profitability.
The Company’s JV and subsidiaries made some notable strides. Universal Voltas LLC in Abu Dhabi delivered an operating profit of AED 24.559 million. The Olayan-Voltas JV effectively executed the Al Bustan project in KSA, delivering Saudi Riyals 11.667 million in profits in its second year. The JV will focus on entrenching its presence in KSA, so as to be poised to seize the significant business opportunities now emerging; Saudi Ensas delivered a turnaround profit of Saudi Riyals 0.317 million and looks forward to a strong order book and exciting opportunities on the horizon; Weather maker has a number of new product offerings under development to speed up its recovery in the Projects segment; Voltas Oman won a number of smaller orders, of up to OMR 3 million, whereby it has established its presence in the Omani MEP space. The Company is now recognized as a quality contractor and there is every expectation of securing further business with larger contract values.
OPPORTUNITIES AND
OUTLOOK
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
Domestic
The investment downturn is likely to continue its adverse impact on the domestic electro-mechanical projects business, given that fewer investments were made in the financial year 2012-13 as compared to previous few years.
Nevertheless, the Company sees opportunities worth pursuing in certain areas. Principally, these are:
- Metro-rail, airports and other infrastructure projects.
- IT/ITES sectors, with the Company’s proven record of successes, as well as its base of satisfied clientele.
Water supply and sewerage are becoming increasingly crucial. Also, with the reuse and recycling of water in industrial and urban sectors being recommended in the National Water Policy of 2012, there is a growing focus on improving urban water supplies and sanitation, coupled with industry’s trend towards effluent recycling and reuse and zero liquid discharge. The Company’s Water Management Business is well placed to leverage its expertise in this domain, with attractive opportunities arising in water and sewerage projects with external funding (e.g. ADB, JICA or World Bank).
International
In the Middle East, government spending has shown a steady pattern of increase. Governments such as those of Oman, Qatar, KSA and the UAE, have outlined several small-to-large scale projects to realize their aspirations of building world-class social infrastructure in sectors such as education, health care, municipal services, power and utilities. Additionally, the upcoming FIFA 2022 World Cup in Qatar is likely to call for significant investment in sports infrastructure.
A key driver of such investment is the expected continuation of significant oil-based budget surpluses in many countries. These plans represent significant opportunities that the Company and its JVs/subsidiaries, are strategically and operationally gearing up to seize.
ENGINEERING PRODUCTS
AND SERVICES
Several upcoming governmental policy initiatives announced by Gujarat, Maharashtra and MP, and the reinstatement of the Textile Up gradation Fund, are positive prospects for increased investment in textile plant and machinery. The demand for yarn is on a growth trajectory in both export and domestic markets, which is expected to extend through the financial year 2013-14, stimulating capacity expansion of spinning mills and holding promise of good business for the Company’s textile machinery business.
The spinning industry is likely to benefit from the increasing per capita consumption of cloth and the permitting of FDI in the retail sector. Substantial growth can be anticipated, subject to the judicial settlement of certain environmental controls.
The Company’s entry into Mineral Beneficiation represents a good growth opportunity, given the growing demand for improving mineral grades and for recycling or conserving water. Further, the easing of the bans imposed on iron ore mining activity also augur well for the business.
The Company has tied up with Belaz, from Belarus, for dump trucks, with the prospect of good orders from Coal India Limited.
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
Low market penetration (at 3.8%) has historically been the biggest opportunity area for India’s AC industry. Additionally, improving consumer sentiment will whip up some demand in the ‘second ownership’ and ‘replacement’ segments, encouraging a shift to Split ACs.
With growing consumer consciousness of energy efficiency, spurred by rising energy costs, 3 and 5 Star ACs are expected to contribute more than 75% of the total market. With its initial lead in Star-rated ACs, and constant R and D-based up gradation, the Company is at an advantageous position in this category.
New demand is arising in tier-2 and tier-3 towns, representing a substantial and growing opportunity. The Company accordingly intends to pursue channel expansion to a much larger number of touch points.
In Commercial Refrigeration, there is a growing need for quality products in retail, dairy, brewer and cold chain user segments. With its superior product development capabilities, strong brand and good relationships with leading manufacturers, the Company is well placed to enhance its leadership position.
ENGINEERING PRODUCTS
AND SERVICES
The businesses in this segment are vulnerable to investment slowdown, non-availability of electricity and government policy related changes. Further, the long term side effects of the mining ban along with continuing delays in environmental clearances pose serious threats to the mining and construction equipment business.
CONTINGENT
LIABILITIES NOT PROVIDED FOR
Guarantees on behalf of other companies:
Limits Rs. 2282.948 Millions (31-3-2012: Rs. 2263.929 Millions) against which amount outstanding was Rs. 1499.539 Millions (31-3-2012: Rs. 1462.144 Millions).
Claims against the Company not acknowledged as debts:
In respect of various matters aggregating Rs. 2359.238 Millions (31-3-2012: Rs. 2689.856 Millions), net of tax Rs. 1593.783 Millions (31-3-2012: Rs. 1817.132 Millions) against which a provision has been made for contingencies Rs. 112.500 Millions (31-3-2012: Rs. 112.500 Millions). In respect of a contingent liability of Rs. Nil (31-3-2012: Rs. 508.636 Millions), the Company has a right to recover the same from a third party.
(Rs. In Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
|
|
|
|
Taxes, Cess and Duties (other than income tax |
1703.417 |
1839.658 |
|
Contractual matters in the course of business |
583.174 |
434.731 |
|
Real Estate Disputes and Demands |
0.000 |
351.976 |
|
Ex-employees matters Others |
37.213 |
24.863 |
|
Others |
35.434 |
38.628 |
|
|
2359.238 |
2689.856 |
Contractual matters under arbitration: Amount indeterminate.
Income tax demands:
In respect of matters decided in Company’s favour by appellate authorities where the department is in further appeal Rs. 111.573 Millions (31-3-2012: Rs. 135.036 Millions).
In respect of matters decided against the Company and where Company has appealed amounted to Rs. 201.797 Millions (31-3-2012: Rs. 51.751 Millions) and in respect of others Rs. Nil (31-3-2012: Rs. 94.103 Millions).
Staff demands under adjudication: Amount indeterminate.
Liquidated damages, except to the extent provided, for delay in delivery of goods: Amount indeterminate.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90244391 |
01/04/2005 |
48,000,000.00 |
BANK OF BARODA |
WALCHAND HIRACHAND MARG, BOMBAY, Maharashtra - 400 |
- |
|
2 |
90243287 |
27/06/1996 |
5,000,000.00 |
UNITED BANK OF INDIA |
25 SIR P M ROAD FORT, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
3 |
90240235 |
27/06/1996 |
21,000,000.00 |
UNITED BANK OF INDIA |
25 SIR P M ROAD FORT, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
4 |
90240223 |
22/05/1996 |
143,400,000.00 |
AMERICAN EXPRESS BANK LTD |
DR D N ROAD, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
5 |
90240218 |
08/05/1996 |
72,500,000.00 |
THE STATE BANK OF BIKANER AND JAIPUR |
D N ROAD BOSE, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
6 |
90243279 |
08/05/1996 |
124,000,000.00 |
STATE BANK OF BIKANER AND JAIPUR |
D N ROAD BOSE, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
7 |
90244219 |
02/06/1992 |
11,978,400.00 |
CENTRAL BANK OF INDIA |
CHANDER MUKHI, NARIMAN POINT, BOMBAY, Maharashtra |
- |
|
8 |
90239689 |
07/01/1992 |
650,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI TOWER CUFFE PARADE, BOMBAY, Maharashtra - 400005, INDIA |
- |
|
9 |
90239556 |
16/11/1990 |
8,700,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI TOWER CUFFE PARADE, BOMBAY, Maharashtra - 400005, INDIA |
- |
|
10 |
90239460 |
04/01/1990 |
10,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
IDBI TOWER CUFFE PARADE COLABA, BOMBAY, Maharashtra - 400005, INDIA |
- |
|
11 |
90239375 |
28/07/1997 * |
1,057,130,000.00 |
STATE BANK OF INDIA |
NARIMAN POINT, BOMBAY, Maharashtra - 400021, INDIA |
- |
|
12 |
90239297 |
26/04/1988 |
2,600,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
NARIMAN POINT, BOMBAY, Maharashtra - 400021, INDIA |
- |
|
13 |
90239158 |
02/09/1986 |
7,200,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA |
NARIMAN POINT, BOMBAY, Maharashtra - 400021, INDIA |
- |
|
14 |
90239130 |
24/06/2011 * |
10,970,000,000.00 |
STATE BANK OF INDIA |
CORPORATE ACCOUNTS GROUP - MUMBAI, NEVILLE HOUSE,3RD FLOOR, J N HEREDIA MARG, MUMBAI, Maharashtra- 400033, INDIA |
B15073190 |
|
15 |
90242927 |
12/03/1986 |
1,057,120,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH, BOMBAY, Maharashtra - 400023, INDIA |
- |
|
16 |
90244163 |
09/12/1985 |
50,000,000.00 |
THE INVESTMENT CORPORATION OF INDIA LTD |
HOMI MODY STREET, BOMBAY, Maharashtra - 400023, IN |
- |
|
17 |
90238210 |
26/06/1985 * |
90,000,000.00 |
THE INVESTMENT CORPORATION OF INDIA LTD |
HOMI MODY STREET, BOMBAY, Maharashtra - 400023, INDIA |
- |
|
18 |
90238209 |
26/06/1986 * |
50,000,000.00 |
THE INVESTMENT CORPORATION OF INDIA LTD |
HOMI MODY STREET, BOMBAY, Maharashtra - 400023, INDIA |
- |
|
19 |
90239114 |
27/11/1985 |
35,429,000.00 |
UNITED BANK OF INDIA |
25 SIR P M ROAD, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
20 |
90244141 |
08/08/1983 |
30,000,000.00 |
THE INVESTMENT CORPORATION OF INDIA LTD |
ROMI MODY STREET, BOMBAY, Maharashtra - 400023, INDIA |
- |
|
21 |
90241814 |
28/07/1997 * |
50,000,000.00 |
THE ENTRAL BANK EXECUTOR AND TRUSTEE CO LTD |
51 M G ROAD, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
22 |
90244130 |
10/07/1981 |
20,000,000.00 |
THE INVESTMENT CORPORATION OF INDIA LTD |
HOMI MODY STREET, BOMBAY, Maharashtra - 400023, INDIA |
- |
|
23 |
90244127 |
02/01/1981 |
50,000,000.00 |
THE INVESTMENT CORPORATION |
ROMI MODY STREET, BOMBAY, Maharashtra - 400023, INDIA |
- |
|
24 |
90238820 |
22/08/1977 |
2,500,000.00 |
UNITED BANK OF INDIA |
25 P M ROAD, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
25 |
90244072 |
23/03/1967 |
10,000,000.00 |
MR MANI ARDESHIR PALKHIVELA |
181 NETAJI SUBHAS ROAD, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
26 |
90238687 |
10/02/1967 |
10,000,000.00 |
STATE BANK OF BIKANER AND JAIPUR |
D NOWROJI ROAD, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
27 |
90238685 |
23/01/1967 |
5,000,000.00 |
BANK OF AMERICA |
18 BRUSE STREET FORT, BOMBAY, Maharashtra - 400001 |
- |
|
28 |
90238679 |
21/04/1966 |
2,500,000.00 |
BANK OF AMERICA |
M G ROAD FORT, BOMBAY, Maharashtra - 400001, INDIA |
- |
|
29 |
90244068 |
19/02/1964 |
10,000,000.00 |
SHRI NANI ARDESHIR PAIKHIVALA |
BOMBAY HOUSE, BOMBAY, Maharashtra, INDIA |
- |
FIXED ASSETS:
- Leasehold Land
- Freehold Land
- Building
- Plant and Machinery
- Furniture and Fittings
- Vehicles
- Intangible Assets: Manufacturing Rights and Technical Know-how
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. 60.74 |
|
|
1 |
Rs. 92.06 |
|
Euro |
1 |
Rs. 80.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
60 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.