MIRA INFORM REPORT
|
Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
EWAC ALLOYS LIMITED |
|
|
|
|
Registered
Office : |
L & T House, Ballard Estate, Mumbai – 400001, Maharashtra |
|
|
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|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
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|
|
|
Date of
Incorporation : |
04.04.1962 |
|
|
|
|
Com. Reg. No.: |
11-012315 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 82.944 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U74999MH1962PLC012315 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACE2470R |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
Line of Business
: |
Manufacturer of Special Welding Electrodes,
Gas Brazing Rods And Fluxes, Welding Torches And Accessories, Atomised Metal
Powder Alloys, Flux Cored Continuous Wires and Wire Feeders, Polymer
Compounds and Wear Resistant Plates. |
|
|
|
|
No. of Employees
: |
Information declined by management |
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 2290000 |
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|
|
|
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 company having a good track record. The company sales and profit margin are increasing over the years. The
company has indicated high growth performance in 2012. Trade relation are fair. Business is active. Payment terms are
reported as regular. The company can be considered for business dealing 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.
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 |
CARE |
|
Rating |
Long term facilities : “AA+” |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
January, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term facilities : “A1+” |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
January, 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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-22-22685656)
LOCATIONS
|
Registered Office : |
L & T House, Ballard Estate, Mumbai – 400001, Maharashtra, India |
|
Tel. No. : |
91-22-67525656 |
|
Fax No. : |
91-22-67525893 |
|
E-Mail : |
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|
Website : |
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|
|
|
|
Factory : |
Dr. Rene Wasserman Centre, Plot No.7917,
GIDC, Ankleshwar – 393002, Gujarat, India |
|
|
|
|
Regional Office : |
L & T Business Park, Tower – B, TC –
II, 5th Floor, L&T Gate No.5, Powai Campus, Saki Vihar Road,
Powai, Mumbai – 400072, Maharashtra, India |
DIRECTORS
As on 18.06.2012
|
Name : |
Mr. Jagdish Pandurang Nayak |
|
Designation : |
Director |
|
Address : |
Gilder House, 2nd Floor, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
13.11.1943 |
|
Qualification : |
BE (MECH), PGD IN PROD ENGG |
|
Date of Appointment : |
10.08.1999 |
|
DIN No. : |
00001644 |
|
|
|
|
Name : |
Mr. Vipin Jyotindra Shukla |
|
Designation : |
Director |
|
Address : |
501, Palm Beach CHS Limited, Gandhigram Road, Juhu, Vile Parle, Mumbai – 400049, Maharashtra, India |
|
Date of Birth/Age : |
21.04.1950 |
|
Qualification : |
B.COM , ACA |
|
Date of Appointment : |
14.07.2005 |
|
DIN No. : |
00010544 |
|
|
|
|
Name : |
Mr. Raghavan Sadagopan |
|
Designation : |
Director |
|
Address : |
Flat No.302, Emerald, Green Apartment, 108, 6th Main, 8th Cross, Malleswaram, Bangalore – 560003, Karnataka, India |
|
Date of Birth/Age : |
25.03.1946 |
|
Qualification : |
LME, AMIE, M.A. |
|
Date of Appointment : |
30.08.2008 |
|
DIN No. : |
00002647 |
KEY EXECUTIVES
|
Name : |
Mr. Ananthkrishnan Shivkumar |
|
Designation : |
Manager |
|
Address : |
202, Garden View Building, Greenfield Society, Ghatla Road, Chembur,
Mumbai – 400071, Maharashtra, India |
|
Date of Birth/Age : |
12.12.1955 |
|
Date of Appointment : |
02.07.2011 |
|
PAN No.: |
AADPA3840P |
|
|
|
|
Name : |
Mr. Subhodh Ravindranath Shetty |
|
Designation : |
Secretary |
|
Address : |
B-501/502, Gajanan Tower CHS Limited, M. Karve Road, Dombivili (West),
Mumbai – 421202, Maharashtra, India |
|
Date of Birth/Age : |
15.06.1977 |
|
Date of Appointment : |
14.02.2007 |
|
PAN No.: |
AKYPS0719G |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 18.06.2012
|
Names of Shareholders |
|
No. of Shares |
|
Larsen and Toubro Limited, India |
|
829434 |
|
Nayak Pandurang Jagdish Jointly with Larsen and Toubro Limited, India |
|
1 |
|
Shukla Jyotindra Vipin Jointly with Larsen and Tourbro Limited, India |
|
1 |
|
Sadagopan Raghavan Jointly with Larsen and Tourbro Limited, India |
|
1 |
|
N Hariharan Jointly with Larsen and Tourbro Limited, India |
|
1 |
|
P. Ramakrishnan Jointly with Larsen and Tourbro Limited, India |
|
1 |
|
Prasad V. Shanbhag Jointly with Larsen and Tourbro Limited, India |
|
1 |
|
Total |
|
829440 |
As on 18.06.2012
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Bodies corporate |
99.99 |
|
Directors or relatives of Directors |
0.01 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Special Welding
Electrodes, Gas Brazing Rods And Fluxes, Welding Torches And Accessories, Atomised
Metal Powder Alloys, Flux Cored Continuous Wires and Wire Feeders, Polymer
Compounds and Wear Resistant Plates. |
||||||||
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|
||||||||
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity * |
Actual
Production |
|
Special Welding Electrodes and Gas Welding Rods |
Tonnes |
600 |
741 |
|
Welding Fluxes - Powai |
Tonnes |
15 |
31 |
|
Welding Torches and Accessories |
Nos. |
300 |
101 |
|
Atomized Metal Powder Alloys |
Tonnes |
68 |
5 |
|
Flux-cored continuous Electrodes |
Tonnes |
360 |
306 |
|
Cold repair Compounds |
Tonnes |
30 |
3 |
|
Wear Plates/ Parts |
Sq. metres |
7500 |
6545 |
|
Manual Metal Arc Welding Electrodes and Gas Rods |
Tonnes |
240 |
345 |
Note:
Licensed capacity per annum not indicated due to the abolition of Industrial Licenses as per Notification No. 477 (E) dated 25th July, 1991 issued under the Industries (Development and Regulation) Act, 1951.
*As Certified by the Management and accepted by the Auditors.
GENERAL INFORMATION
|
No. of Employees : |
Information declined by management |
|
|
|
|
Bankers : |
Bank of Baroda, Corporate Financial Services Branch, 3, Walchand
Hirachand Marg, Ballard Pier, Mumbai – 400001, Maharashtra, India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sharp and Tannan Chartered Accountants |
|
Address : |
Ravindra Annexe, 194 Churchgate Reclamation, Dinshaw Vachha Road, Mumbai – 400020, Maharashtra, India |
|
PAN No. : |
AAAFS2967E |
|
|
|
|
Holding company : |
Larsen and Toubro Limited, India CIN No.: L99999MH1946PLC004768 |
|
|
|
|
Associate : |
· Larsen and Toubro Limited (upto 13th December, 2010) · Eutectic Corporation, USA (upto 13th December, 2010) · MEC Holding GmbH (upto 13th December, 2010) |
|
|
|
|
Fellow
Subsidiaries: : |
· Tractor Engineers Limited (w.e.f. 14th December, 2010) · Larsen and Toubro Infotech Limited (w.e.f. 14th December, 2010) · L&T Finance Limited (w.e.f. 14th December, 2010) |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000 |
Equity Shares |
Rs.100/- each |
Rs. 150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
829440 |
Equity Shares |
Rs.100/- each |
Rs. 82.944 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
82.944 |
82.944 |
|
(b) Reserves & Surplus |
|
489.301 |
403.920 |
|
(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) |
|
572.245 |
486.864 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
80.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
16.876 |
23.385 |
|
(c) Other long term
liabilities |
|
0.000 |
0.000 |
|
(d) long-term
provisions |
|
8.383 |
5.344 |
|
Total Non-current
Liabilities (3) |
|
105.259 |
28.729 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
0.000 |
0.000 |
|
(b) Trade
payables |
|
587.181 |
264.004 |
|
(c) Other
current liabilities |
|
317.408 |
60.004 |
|
(d) Short-term
provisions |
|
383.042 |
16.681 |
|
Total Current
Liabilities (4) |
|
1287.631 |
340.689 |
|
|
|
|
|
|
TOTAL |
|
1965.135 |
856.282 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
|
169.409 |
153.800 |
|
(ii)
Intangible Assets |
|
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
|
332.330 |
0.451 |
|
(iv)
Intangible assets under development |
|
4.428 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
71.412 |
5.636 |
|
(e) Other
Non-current assets |
|
7.528 |
0.200 |
|
Total Non-Current
Assets |
|
585.107 |
160.087 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
81.965 |
68.120 |
|
(b)
Inventories |
|
616.195 |
254.094 |
|
(c) Trade
receivables |
|
533.214 |
288.223 |
|
(d) Cash
and cash equivalents |
|
93.668 |
40.647 |
|
(e)
Short-term loans and advances |
|
54.986 |
45.111 |
|
(f) Other
current assets |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
1380.028 |
696.195 |
|
|
|
|
|
|
TOTAL |
|
1965.135 |
856.282 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
82.944 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
358.429 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
441.373 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
24.576 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
465.949 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
158.890 |
|
|
Capital work-in-progress |
|
|
0.257 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
196.309 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
224.027 |
|
|
Sundry Debtors |
|
|
262.260 |
|
|
Cash & Bank Balances |
|
|
31.589 |
|
|
Other Current Assets |
|
|
0.000 |
|
|
Loans & Advances |
|
|
152.529 |
|
Total
Current Assets |
|
|
670.405 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
194.177 |
|
|
Other Current Liabilities |
|
|
33.589 |
|
|
Provisions |
|
|
332.146 |
|
Total
Current Liabilities |
|
|
559.912 |
|
|
Net Current Assets |
|
|
110.493 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
465.949 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3512.137 |
1844.808 |
1397.095 |
|
|
|
Other Income |
8.759 |
11.654 |
33.010 |
|
|
|
TOTAL (A) |
3520.896 |
1856.462 |
1430.105 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1061.895 |
457.817 |
|
|
|
|
Purchases of stock-in-trade |
1393.369 |
730.614 |
|
|
|
|
Employee benefit expense |
264.745 |
112.477 |
|
|
|
|
Other expenses |
302.465 |
169.572 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(349.787) |
(35.627) |
|
|
|
|
TOTAL (B) |
2672.687 |
1434.853 |
1057.561 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
848.209 |
421.609 |
372.544 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.485 |
1.167 |
1.366 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
846.724 |
420.442 |
371.178 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
28.514 |
15.392 |
14.800 |
|
|
|
|
|
|
|
|
|
|
PROFITBEFORE TAX
(E-F) (G) |
818.210 |
405.050 |
356.378 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
265.291 |
132.266 |
115.014 |
|
|
|
|
|
|
|
|
|
|
PROFITAFTER TAX
(G-H) (I) |
552.919 |
272.784 |
241.364 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
69.086 |
51.594 |
22.835 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
402.278 |
194.918 |
161.740 |
|
|
|
Tax on Dividend |
65.260 |
32.374 |
26.863 |
|
|
|
General Reserve |
56.000 |
28.000 |
24.000 |
|
|
BALANCE CARRIED
TO THE B/S |
98.467 |
69.086 |
51.594 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods (on FOB basis) |
47.597 |
40.787 |
35.045 |
|
|
|
Commission |
16.791 |
22.699 |
23.561 |
|
|
TOTAL EARNINGS |
64.388 |
63.486 |
58.606 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
|
|
27.362 |
26.740 |
|
|
|
Spare parts |
|
0.658 |
0.000 |
|
|
|
Capital Goods |
|
1.481 |
0.153 |
|
|
|
Trading goods |
|
443.843 |
306.914 |
|
|
TOTAL IMPORTS |
703.033 |
473.344 |
333.807 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
666.62 |
328.88 |
291.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
15.70
|
14.69 |
16.88 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
23.30
|
21.96 |
25.51 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
50.25
|
47.33 |
42.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.43
|
0.83 |
0.81 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.14
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.07
|
2.04 |
1.20 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF LONG TERM DEBTS
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Current maturities of long-term debt |
80.000 |
0.000 |
NA |
|
|
|
|
|
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
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 |
YEAR IN RETROSPECT/
PERFORMANCE OF THE COMPANY
The profit before tax (after interest and depreciation charges) is Rs.818.2000 millions and profit after tax is Rs.552.900 millions for the financial year as against Rs. 405.100 millions and Rs.272.800 millions respectively for the previous year.
The Company had a Selling Agency Agreement (SAA) with Larsen and Toubro Limited (the ‘L&T’) till June 30, 2011. As per the terms of the agreement, the L&T, through their Welding Products Business Unit (WPBU), were authorised to purchase and sell the products in accordance with the prices and other conditions stipulated therein. The Company, effective July 1, 2011 acquired the WPBU from L&T alongwith all the employees on an asset transfer basis. WPBU now functions as the marketing arm of the Company. The integration of marketing division (WPBU) with the Company is in line with the strategic restructuring of the Company’s business and is aimed at consolidating the welding products business.
The “L&T” had advised the Company to relocate the Company’s manufacturing facilities since the lease of the land at Powai (by L&T to the EWAC) had long since expired and could not be renewed. Hence, the Company had promised to vacate the premises by March 31, 2012. In any case the Company found the Powai location inadequate for further expansion. The Company had therefore undertaken expansion of its facilities at Ankleshwar and has decided to close its manufacturing operations at Powai, Mumbai with a view to consolidating all its manufacturing operations at one place.
Accordingly, the Company has closed its operations at its Powai Works, Mumbai as at the end of the current year (ending March 31, 2012) and in consultation with L&T, agreed to transfer all the unionised employees of the Company for redeployment by L&T at its Powai Works. The said employees have also agreed to such redeployment and hence, no provision is required to be made on this account. As regards the fixed assets, since majority of the moveable assets existing at Powai Works as at March 31, 2012 are being shifted to Ankleshwar, impairment, if any, will be considered after completing the shifting and re-installation, which is expected to be completed in the month of June, 2012.
UNSECURED LOANS
|
Particulars |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
In Millions) |
|
Long term
borroings |
|
|
|
Rupee term loans from others |
80.000 |
0.000 |
|
Total |
80.000 |
0.000
|
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
Sales tax liabilty that may arise in respect of matters in appeals |
33.858 |
17.581 |
|
|
|
|
Note:
1. It is not practicable to estimate the timing of cash outflows, if any, in respect of above matter pending appellate procedings.
2. The Company does not expect any reimbursements in respect of above contingent liabilities.
(a)The Company had a Selling Agency Agreement (SAA) with Larsen & Toubro Limited (the ‘L&T’) till June 30, 2011. As per the terms of the agreement, the L&T, through their Welding Products Business Unit (WPBU), were authorised to purchase and sell the products in accordance with the prices and other conditions stipulated therein. The Company, effective July 1, 2011 acquired the WPBU from L&T alongwith all the employees on an asset transfer basis. WPBU now functions as the marketing arm of the Company. Pursuant to the transfer of WPBU to the Company, the SAA with L&T stands terminated.
(b) The Company has closed its operations at its Powai Works, Mumbai as at the end of the current year (ending March 31, 2012) and in consultation with L&T, agreed to transfer all the unionised employees of the Company for redeployment by L&T at its Powai Works.The said employees have also agreed to such redeployment and hence, no provision is required to be made on this account. As regards the fixed assets, since majority of the moveable assets existing at Powai Works as at March 31, 2012 are being shifted to Ankleshwar, impairment,if any, will be considered after completing the shifting and re-installation, which is expected to be completed in the month of June, 2012.
FIXED ASSETS
·
Land
·
Buildings
· Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
·
Other Equipments
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.60.80 |
|
|
1 |
Rs.91.95 |
|
Euro |
1 |
Rs.80.37 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--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.