MIRA
INFORM REPORT
|
Report Date : |
18.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
EVEREST KANTO CYLINDER LIMITED |
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Registered
Office : |
204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point,
Mumbai – 400 021, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
24.06.1978 |
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Com. Reg. No.: |
11-020434 |
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Capital
Investment / Paid-up Capital : |
Rs.214.315 Millions |
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CIN No.: [Company Identification
No.] |
L29200MH1978PLC020434 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of widest range of High Pressure Gas
Cylinders. |
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No. of Employees
: |
1200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 18000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. Company has recorded loss from its operation in 2013. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealing with some caution. |
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
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says the
latest India Development Update report released by the World Bank. The report
says that the adverse effects of rupee depreciation are likely to be offset by
the gains in the exports performance due to improved external competitiveness.
Since May this year, the local currency has depreciated substantially and fell
to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Rs.3682 Million Term Loan=BB+ |
|
Rating Explanation |
Inadequate credit quality and high credit
risk. |
|
Date |
09.07.2013 |
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 PARTED BY
|
Name : |
Mr. Kishor Thakkar |
|
Designation : |
Finance Controller |
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Contact No.: |
91-22-22850777 |
|
Date : |
12.12.2013 |
LOCATIONS
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Registered/ Head Office : |
204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point,
Mumbai – 400021, Maharashtra, India |
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Tel. No.: |
91-22-30268300-01 (30 Lines) |
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Fax No.: |
91-22-22870718/ 0720 |
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E-Mail : |
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Website : |
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Plant 1: |
Survey No. 141/1 and 141/2, Village Varsana, Near NH 8A East, P.O Box
Gopalpuri, Taluka – Anjar, Gandhidham, Kutch – 370240, |
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Plant 2: |
Plot No. 525 to 542, 618, 619, 627 and 628, Sector – New Extended Area,
Kandla Special Economic Zone, Gandhidham, Kutch – 370230, Gujarat, India |
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Plant 3: |
N – 62, MIDC Industrial Area, Kumbhavali Naka, Tarapur – 401506, |
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Plant 4: |
E – 22, MIDC Area, Chikalthana, |
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Branch Office 1: |
No.9, Mota Chambers, Milier Road, |
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Tel No: |
91-80-22280457/ 4202 |
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Fax No: |
91-80-22284201 |
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Branch Office 2: |
B- 69/ 2, Wazirpur Industrial Area, |
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Tel No: |
91-11-42474916/ 4917 /4919/ 4920 |
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Fax No: |
91-11-27377530/ 91-11-42474918 |
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Branch Office 3: |
Located at: · Kolkata |
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Branch Office 4: |
Plot No. M 03130, P.O |
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Tel No: |
971-4-8832796/ 8832707/ 8832799 |
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Fax No: |
971-4-8832799 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. P.K. Khurana |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Pushkar Khurana |
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Designation : |
Non - Executive
Director |
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Email : |
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Name : |
Mr. Puneet Khurana |
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Designation : |
Whole - Time
Director till September 30, 2012 |
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Email : |
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Name : |
Mr. P.M. Samvatsar |
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Designation : |
Whole - Time
Director |
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Name : |
Mr. Krishen Dev |
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Designation : |
Independent
Director |
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Name : |
Mr. Naresh Oberoi |
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Designation : |
Independent
Director |
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Name : |
Mr. Mohan Jayakar |
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Designation : |
Independent
Director |
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Name : |
Mr. Vyomesh Shah |
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Designation : |
Independent
Director |
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Name : |
Mr. Gurdeep Singh |
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Designation : |
Independent
Director |
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Name : |
Mr. Shailesh Haribhakti |
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Designation : |
Independent
Director till May 30, 2012 |
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Name : |
Mr. Varun Bery |
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Designation : |
Non-Executive
Non-Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Kanika Sharma |
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Designation : |
Company Secretary and Compliance Officer |
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Name : |
Mr.
Vipin Chandok |
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Designation : |
Chief
Financial Officer |
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Name : |
Mr. Kishor Thakkar |
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Designation : |
Finance Controller |
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BOARD COMMITTEES |
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Audit Committee: |
· Mr. Vyomesh Shah (Chairman) · Mr. Naresh Oberoi · Mr. Krishen Dev ·
Mr. Puneet Khurana |
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Shareholders’/ Investors’ Grivances Redressal and Share Transfer
Committee: |
· Mr. Mohan Jayakar (Chairman) · Mr. Puneet Khurana ·
Mr. P.M. Samvatsar |
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Remuneration Committee: |
· Mr. Krishen Dev (Chairman) · Mr. Mohan Jayakar · Mr. Naresh Oberoi ·
Mr. P.K. Khurana |
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Allotment Committee: |
· Mr. P.K. Khurana (Chairman) · Mr. Puneet Khurana ·
Mr. P.M. Samvatsar |
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Management Committee: |
· Mr. P.K. Khurana (Chairman) · Mr. Puneet Khurana ·
Mr. P.M. Samvatsar |
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Investment Committee: |
· Mr. P.K. Khurana (Chairman) · Mr. Shailesh Haribhakti · Mr. Krishen Dev ·
Mr. Puneet Khurana |
SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
Individuals / Hindu Undivided Family |
45159257 |
42.14 |
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|
19852203 |
18.53 |
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|
65011460 |
60.67 |
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|
|
|
|
|
1100911 |
1.03 |
|
|
1100911 |
1.03 |
|
Total shareholding of Promoter and Promoter Group (A) |
66112371 |
61.70 |
|
(B) Public Shareholding |
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|
|
|
|
|
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|
3124900 |
2.92 |
|
|
2600 |
0.00 |
|
|
4135418 |
3.86 |
|
|
7262918 |
6.78 |
|
|
|
|
|
|
5431347 |
5.07 |
|
|
|
|
|
|
17384726 |
16.22 |
|
|
1075370 |
1.00 |
|
|
9890950 |
9.23 |
|
|
785582 |
0.73 |
|
|
1064154 |
0.99 |
|
|
8036714 |
7.50 |
|
|
4500 |
0.00 |
|
|
33782393 |
31.53 |
|
Total Public shareholding (B) |
41045311 |
38.30 |
|
Total (A)+(B) |
107157682 |
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) |
107157682 |
0.00 |
(1) Indian
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Khurana Gases Private Limited |
1,50,52,203 |
14.05 |
|
Suman Khurana |
1,44,06,334 |
13.44 |
|
Prem Kumar Khurana |
1,22,18,000 |
11.40 |
|
Medical Engineers India Limited |
48,00,000 |
4.48 |
|
Premkumar Khurana & Sons - HUF |
48,00,000 |
4.48 |
|
Pushkar Prem Kumar Khurana |
53,36,537 |
4.98 |
|
Puneet Prem Kumar Khurana |
51,66,297 |
4.82 |
|
Vandana Khurana |
15,00,000 |
1.40 |
|
Varun Khurana |
16,02,000 |
1.49 |
|
Shyam Sunder Khurana |
12,20,000 |
1.14 |
|
Nishita Khurana |
10,000 |
0.01 |
|
Pooja Khurana |
1,000 |
0.00 |
|
Total |
6,61,12,371 |
61.70 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than 1%
of the total number of shares
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Brightwill Limited |
4836714 |
4.51 |
|
Beacon India private Equity Fund |
3634865 |
3.39 |
|
TVG India Investment Holdings Limited |
3200000 |
2.99 |
|
Reliance Capital Trustee Company Ltd A/c Reliance Regular saving Fund
- Equity Option |
3124900 |
2.92 |
|
Total |
14796479 |
13.81 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of widest range of High Pressure Gas
Cylinders. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Seamless gas cylinders |
Nos |
672000 |
672000 |
543767 |
GENERAL INFORMATION
|
No. of Employees : |
1200 (Approximately) |
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Bankers : |
· State Bank of Hyderabad · Citibank N.A. · ICICI Bank Limited ·
Standard Chartered Bank ·
Yes Bank Limited ·
Exim Bank of India |
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Facilities : |
NOTES: Long Term Borrowings: ·
Term Loan of US$ 5.00 Mn. from a bank is secured
by way of first pari passu charge on movable fixed assets of the plant at
Kandla SEZ up to 125% of the loan amount and non-disposal undertaking of the
shareholding of the Company in the subsidiary in China. The loan is repayable
in bullet in May 2014. The interest rate of the Borrowings is 6 Months’ LIBOR
plus 5.50% pa. ·
Term Loan from another bank up to Rs.3250.000
Millions is secured by way of (a) first pari passu charge on all the fixed
assets of the Company, excluding a specific immovable property (b) second pari passu charge on the current assets of the Company (c) pledge of 29.99% of the shares of the Company held by the
promoters (d) pledge of all the shares of the subsidiaries held by the Company (e) personal guarantees from promoter directors and (f) exclusive charge on certain residential and commercial immovable
properties owned by the Company, promoters, group companies/firms. The loan
is repayable in quarterly unequated installments commencing from January 2015
and ending in October 2020. The interest rate of the Borrowing is 12.75% pa. Short
Term Borrowings: Working Capital
facilities from banks are secured by way of (i)
first pari passu charge in the form of
hypothecation of stocks and book debts of the Company and (ii)
Second pari passu charge on all the fixed assets
(excluding specific fixed assets) of the Company. One of the banks has been
provided additional security over a specific immovable property of the
Company. |
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Banking
Relations : |
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Auditors : |
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|
Name : |
Dalal and Shah Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Other related parties where control exists: |
·
Medical Engineers (India) Limited ·
Khurana Fabrication Industries Private Limited ·
Khurana Exports Private Limited ·
Everest Industrial Gases Private Limited ·
Khurana Charitable Trust ·
Khurana Education Trust ·
G.N.M.Realtors Private Limited ·
Ukay Valves & Founders Private Limited |
|
|
|
|
Subsidiary Companies : |
·
EKC Industries ( · EKC International FZE, UAE ·
EKC Industries (Thailand) Company Limited,
Thailand · Calcutta Compressions and Liquefaction Engineering Limited (CC and L) |
|
|
|
|
Step
Down Subsidiary Companies : |
·
EKC
Hungary Kft, Hungary ·
EKC
Europe GmbH, Germany · CP Industries Holdings Inc., USA |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Re. 2/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
107157682 |
Equity Shares |
Re. 2/- each |
Rs.214.315 Millions |
|
|
|
|
|
|
|
|
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|
a.
Reconciliation of the number of shares
|
Equity Shares |
Number
of Shares |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
107157682 |
214.315 |
|
Shares
outstanding at the end of the year |
107157682 |
214.315 |
b.
Rights, Preferences and Restrictions attached to
Shares
The Company has
one class of Equity Shares having a par value of ` 2/- 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. 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 the shareholding.
c.
Details of shares held by shareholders holding more
than 5% of the aggregate shares in the Company
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
P. K. Khurana (Promoter) |
12218000 |
11.40 |
|
Suman Khurana (Promoter) |
14213715 |
13.26 |
|
Khurana Gases Private Limited (Promoter) |
14550628 |
13.58 |
|
Reliance Capital Trustee Company Limited |
7000000 |
6.53 |
|
Total |
47982343 |
44.77 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
214.315 |
214.315 |
214.315 |
|
(b) Reserves & Surplus |
3505.601 |
4866.352 |
4998.590 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
3719.916 |
5080.667 |
5212.905 |
|
|
|
|
|
|
(3) Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
3059.510 |
198.524 |
1922.694 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
112.108 |
138.723 |
|
(c) Other long term liabilities |
2.400 |
1.150 |
1.150 |
|
(d) long-term provisions |
8.101 |
9.241 |
9.772 |
|
Total Non-current Liabilities (3) |
3070.011 |
321.023 |
2072.339 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term borrowings |
668.027 |
1020.733 |
432.852 |
|
(b) Trade payables |
490.600 |
329.964 |
524.651 |
|
(c) Other current
liabilities |
517.944 |
2288.224 |
456.943 |
|
(d) Short-term provisions |
26.892 |
35.991 |
192.021 |
|
Total Current Liabilities (4) |
1703.463 |
3674.912 |
1606.467 |
|
|
|
|
|
|
TOTAL |
8493.390 |
9076.602 |
8891.711 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3061.228 |
3248.078 |
2224.852 |
|
(ii) Intangible Assets |
13.476 |
18.392 |
23.054 |
|
(iii) Capital
work-in-progress |
264.990 |
244.059 |
1285.635 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
409.783 |
1092.648 |
1082.421 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
256.685 |
846.330 |
684.999 |
|
(e) Other Non-current assets |
2.787 |
8.459 |
1.579 |
|
Total Non-Current Assets |
4008.949 |
5457.966 |
5302.540 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
692.724 |
0.177 |
341.303 |
|
(b) Inventories |
1768.474 |
2274.799 |
1529.223 |
|
(c) Trade receivables |
565.875 |
635.963 |
694.436 |
|
(d) Cash and cash
equivalents |
132.776 |
127.204 |
121.758 |
|
(e) Short-term loans and
advances |
1149.877 |
460.808 |
718.327 |
|
(f) Other current assets |
174.715 |
119.685 |
184.124 |
|
Total Current Assets |
4484.441 |
3618.636 |
3589.171 |
|
|
|
|
|
|
TOTAL |
8493.390 |
9076.602 |
8891.711 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
2470.265 |
3113.246 |
3791.160 |
|
|
|
Other Income |
113.856 |
122.989 |
92.490 |
|
|
|
TOTAL (A) |
2584.121 |
3236.235 |
3883.650 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1733.983 |
2060.858 |
1904.634 |
|
|
|
Purchases of Stock-in-Trade |
4.511 |
104.650 |
24.389 |
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress and
Stock-in-Trade |
(89.911) |
(304.558) |
406.016 |
|
|
|
Employee Benefits Expense |
212.607 |
237.432 |
262.364 |
|
|
|
Other Expenses |
658.070 |
690.394 |
691.735 |
|
|
|
Own Goods Capitalised |
(6.954) |
(24.125) |
(24.500) |
|
|
|
Foreign Exchange Variation (Gain)/ Loss (Net) |
98.556 |
306.058 |
(9.146) |
|
|
|
TOTAL (B) |
2610.862 |
3070.709 |
3255.492 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(26.741) |
165.526 |
628.158 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
331.872 |
125.596 |
31.484 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(358.613) |
39.930 |
596.674 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
225.432 |
238.710 |
241.902 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(584.045) |
(198.780) |
354.772 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(109.071) |
(76.615) |
129.597 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(474.974) |
(122.165) |
225.175 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
746.763 |
900.063 |
970.717 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
100.000 |
|
|
|
Proposed Dividend |
21.432 |
26.789 |
160.737 |
|
|
|
Tax on Dividend |
3.642 |
4.346 |
35.092 |
|
|
BALANCE CARRIED
TO THE B/S |
246.715 |
746.763 |
900.063 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
244.655 |
644.438 |
1215.888 |
|
|
|
Exports of consumables / RM Pipe on FOB basis |
87.241 |
0.000 |
0.000 |
|
|
|
Commission for bank guarantee |
4.333 |
3.583 |
5.135 |
|
|
|
Interest on loans given |
25.243 |
22.163 |
20.101 |
|
|
|
Others |
0.000 |
0.403 |
0.000 |
|
|
TOTAL EARNINGS |
361.472 |
670.587 |
1241.124 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
937.612 |
2136.223 |
1356.011 |
|
|
|
Stores & Spares |
1.540 |
2.678 |
5.737 |
|
|
|
Capital Goods |
0.000 |
0.000 |
111.649 |
|
|
TOTAL IMPORTS |
939.152 |
2138.901 |
1473.397 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(4.43) |
(1.14) |
2.13 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(18.38)
|
(3.77)
|
5.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(23.64)
|
(6.38)
|
9.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.73)
|
(2.57)
|
5.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.16)
|
0.04
|
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.00
|
(0.16)
|
0.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.63
|
0.98
|
2.23 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT
MATURITY OF LONG TERM DEBT:
(Rs.
In Millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
- Foreign Currency Convertible Bonds |
0.000 |
1790.478 |
|
|
- External Commercial Borrowings |
0.000 |
204.626 |
|
|
- Sales Tax Deferment Loan (Interest Free) |
33.681 |
4.703 |
|
|
Interest Accrued but not due on Borrowings |
34.838 |
6.299 |
[Not Available] |
|
Unclaimed Dividends # |
1.108 |
1.004 |
|
|
Advances from Customers |
374.771 |
178.701 |
|
|
Deposits |
3.262 |
3.513 |
|
|
Other Liabilities |
70.284 |
98.900 |
|
|
|
|
|
|
|
|
517.944 |
2288.224 |
|
# There
are no amounts due for payment to the Investor Education Protection Fund under
Section 205C of the Act as at the year end.
|
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 |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOAN:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Long Term Borrowings |
|
|
|
Sales Tax
Deferment Loan (Interest Free) |
177.884 |
198.524 |
|
Short Term Borrowings |
|
|
|
Working Capital Facility |
0.000 |
88.002 |
|
Loan from related
Parties |
42.140 |
0.000 |
|
|
|
|
|
Total |
220.024 |
286.526 |
NOTES:
Long Term Borrowings
The Interest-free Sales Tax Deferment Loan is repayable in six equal annual
installments, with the last installment falling due in financial year
2018-2019.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10418476 |
15/03/2013 |
3,250,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU
CENTRE, DISCOVERY OF INDIA, DR. |
B72616246 |
|
2 |
10384879 |
09/10/2012 |
3,250,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU
CENTRE, DISCOVERY OF INDIA, DR. |
B61523775 |
|
3 |
10351760 |
24/04/2012 |
261,150,000.00 |
EXPORT-IMPORT BANK OF INDIA |
EXPORT-IMPORT BANK OF
INDIA, WORLD TRADE CENTRE C |
B38229621 |
|
4 |
10310561 |
12/10/2011 |
150,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
B22700785 |
|
5 |
10153982 |
22/09/2012 * |
810,000,000.00 |
STATE BANK OF HYDERABAD |
CORPORATE FINANCE BRANCH, 11 C, MITTAL TOWERS, 1ST FLOOR, 210, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
B60264132 |
|
6 |
10009493 |
07/06/2010 * |
1,350,000,000.00 |
CITIBANK N.A. |
BANDRA KURLA COMPLEX, BANDRA, MUMBAI - 400021, MAHARASHTRA, INDIA |
A87282273 |
|
7 |
80021414 |
30/09/2005 |
150,000,000.00 |
CITIBANK NA |
BANDRA KURLA COMPLEX, MUMBAI - 400051, MAHARASHTRA, INDIA |
- |
|
8 |
90186859 |
29/06/2001 |
142,500,000.00 |
STATE BANK OF HYDERABAD |
11/C;MITTAL TOWER, 210; NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
- |
|
9 |
90186779 |
08/10/2001 * |
57,000,000.00 |
ICICI BANK LIMITED |
215; FREE PRESS HOUSE, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
- |
|
10 |
90186463 |
30/06/1997 |
100,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORPN. OF INDIA LIMITED |
163; BACKBAY RECLAMATION, BOMBAY - 400020, MAHARASHTRA, INDIA |
- |
* Date of charge
modification
PERFORMANCE REVIEW
The financial year
2012-13 continued to witness difficult and competitive business scenario and
conditions across all business segments and geographies of the Company, in tune
with the gradual slow-down of the Indian economy, quarter on quarter, in
general, and the automobile sector in particular, resulting in lower sales and
margins of the Company on standalone basis. The subsidiaries of the Company
operating in different geographies across the globe witnessed similar situation
and conditions due to various factors impacting each of them. The persistent
depreciation during the year of the Indian Rupee vis-ŕ-vis the US Dollars too
added to losses during the first half of the financial year. On standalone
basis, for FY 2012-13, revenues at Rs.2405.901 Millions were lower by around
21% over the previous year's revenues of Rs.3050.516 Millions and Net Loss at
Rs.(474.974) Millions was increase by around 289% over the previous year's net
profit of Rs.(122.165) Millions. On consolidated basis, revenues at Rs.5313.829
Millions were lower by around 21% over the previous year's revenues of
Rs.6694.764 Millions and Net Loss at Rs.(1318.230) Millions was increase by
around 2913% over the previous year's net profit of Rs.46.862 Millions. The
Standalone Net Loss is after considering Foreign Currency Loss of 98.556
Millions and the Consolidated Net Profit is after considering Foreign Currency
Losses of Rs.102.799 Millions and Provision for Doubtful Debts of Rs.402.674
Millions.
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
The Financial Year
2012-13 continued to be a challenging year for the world and domestic economy
as well as subject. The global economy, though improved slowly, did not grow to
the extent expected at the commencement of the year. The US economy improved,
though marginally, driven by the consumer and housing sector, with interest
rates continuing to remain at historic lows and the quantitative easing
measures at unprecedented highs. Many European countries faced recession with
high unemployment, low demand and weakened banking systems. China too
experienced slowdown in its growth, partly due to weak global demand and partly
due to the deliberate move of its government. In India, economic growth fell
sharply, touching a decade low, the industrial sector experienced severe slump,
the trade and current account deficit reached unprecedented risky levels and
the inflation remained stubbornly high during the major part of the year,
interest rates remained high and capital formation took a severe beating;
though, the fiscal deficit remained checked, within budgeted limits. The above
macro factors, especially those prevailing in India, adversely impacted demand
for the Company’s products and their realisation during the year, which
severely dented the operating margins.
DOMESTIC BUSINESS
The sharp decline
during the year in the growth rate of the GDP and of the industrial production
in general and the automobile sector in particular adversely impacted the
demand for the high pressure seamless cylinders, due to the high co-relation of
the demand for the Company’s products with the macro economic situation. The
year continued to witness slow demand especially from the Original Equipment
Manufacturers and Retrofit segments of CNG cylinder business in India. The
demand for CNG cylinders was further impacted because of sudden hike in gas
prices in some states like Gujarat. The demand for Industrial cylinders too
witnessed a slight decline. Due to the competitive scenario and rupee
depreciation, there was pressure on realizations and margins. However, certain
positive signs are emerging, such as, the initiative taken by the Government of
India to rationalize the natural gas prices which is expected to increase the
supply of the natural gas and thus the demand for cylinders, the order of the Gujarat
High Court to the Government of Gujarat to convert all the four wheelers in the
state from petrol to CNG, etc.
INTERNATIONAL
BUSINESS
(a) Dubai
Operations
Due to the
continuing geo-political situation in the Middle- East Asia, sales to Iran,
which till 2010-11 accounted for a substantial portion of its business,
remained affected during the year, with concomitant effect on the operating
results. Pursuant to the initiative undertaken during the previous year to tide
over the situation, new markets, such as, South America, CIS countries, etc.
have been developed. A branch office has been opened in Colombia to cater to
the South American market timely and efficiently.
(b) USA Operations
Due to the
improved economic and business situation in the USA, the performance during the
year was stable and in consolidation phase, with near break-even at normalized
profit before tax level. On consolidation of accounts, the results however
continue to report a loss due to amortization of intangible assets acquired
during the business acquisition.
The order book
continuous to remain good during the current year, with focus on higher margin
business. The huge shale gas discovery in the USA with concomitant low natural
gas prices in the USA, the thrust on the increased usage of natural gas and its
promotion by the US Government augurs well for the business in the coming
years, which will also provide business support to the India, Dubai and China
operations, from where CNG cylinders will be sourced.
During the year, the
US subsidiary has set up a plant to manufacture Type IV composite cylinders for
which there is ever increasing preference and demand due to the light weight of
these cylinders. The plant is expected to commence operations in the second
quarter. When fully commissioned, the composite cylinders business will provide
annual turnover of about US$ 10 Mn. with much higher incremental margins.
The US subsidiary
is in the process of obtaining approvals for marketing of Industrial cylinders
in the US for which there is a good demand. The industrial cylinders will be
sourced from Indian plants of the Company.
(c) China
Operations
The China CNG
cylinders operations continue to remain affected due to high local competition and
price sensitive environment, which scenario is expected to continue. During the
latter half of the year, the China plant commenced manufacture of Type II
composite cylinders which command higher demand and realisation, and have lower
competition. These cylinders will boost volumes and margins. The Jumbo
cylinders segment has good business potential due to low competition and high
demand and growth prospects. The business thrust, going forward, will be on the
Jumbo cylinders segment.
(d) Europe
Operations
The Europe
subsidiary provided technical know-how and support to the US operations for
setting up the Type IV
Composite plant
and initiated efforts to develop the European markets for cylinders
manufactured by the Indian, Dubai and China plants.
FINANCIAL
PERFORMANCE VIS-A-VIS OPERATIONAL
PERFORMANCE
The last year has
again been very challenging for the Company on account of the continued
challenges presented by the economic environment, local as well as
international. The situation got aggravated due to the slump in the industrial
production in India and the more than expected fall in the GDP growth.
INTERNAL CONTROL
SYSTEM
Subject believes
in formulating adequate and effective internal control systems and implementing
the same strictly to ensure that assets and interests of the Company are
safeguarded and reliability of accounting data and accuracy are ensured with
proper checks and balances. The Internal control system is improved and
modified continuously to meet the changes in business conditions, statutory and
accounting requirements.
Subject has an
internal audit function, which is empoweredto examine the adequacy and the
compliance with policies, plans and statutory requirements. It is also
responsible for assessing and improving the effectiveness of risk management,
control and governance process. The management of the Company duly considers
and takes appropriate action on the recommendations made by the statutory
auditors, internal auditors and the independent Audit Committee of the Board of
Directors.
The prevailing
system of internal controls and internal audit are considered to be adequate
vis-a-vis the business requirements. In order to further strengthen the
internal control systems and with a view to automating the various processes of
the business, EKC is implementing an Enterprise Wide Resource Planning (ERP)
system.
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Electrical Installation
·
Plant and Machinery
· Vehicles
·
Office Equipments
·
Furniture and Fixtures
·
Computers
·
Gas Cylinders
·
Electrical Installation
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.61.96 |
|
|
1 |
Rs.101.14 |
|
Euro |
1 |
Rs.85.33 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
36 |
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.