MIRA
INFORM REPORT
|
Report Date : |
05.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
HINDUSTAN
AERONAUTICS LIMITED |
|
|
|
|
Registered
Office : |
15/1, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
16.08.1963 |
|
|
|
|
Com. Reg. No.: |
08-001622 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1205.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U35301KA1963GOI001622 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRB00692G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB5987A |
|
|
|
|
Legal Form : |
Government of |
|
|
|
|
Line of Business
: |
Manufacturer of
Upgrade and Overhaul of Fighters, Trainers, Helicopters etc. |
|
|
|
|
No. of Employees
: |
32659 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 450000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is wholly owned by Government of
India. It has a memorandum of understanding with the Ministry of Defence Department
of Defence Production and Supplies. Financial position of the company appears
to be strong and healthy. The management of
the company reported to be experienced and well managed people. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AAA (Fund Based Limit) |
|
Rating Explanation |
Having highest degree of safety regarding timely servicing of
financial obligation. It carry lowest
credit risk. |
|
Date |
September - 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Corporate Office : |
15/1, |
|
Tel. No.: |
91-80-22266901/ 8758/ 22865197/ 1258
/ 8629/ 22866701/ 902-908/ 4636 / 22864930 / 22866578/ 22320701/
22320903/ 22320376/ 22320001 / 22320358 / 22320008 |
|
Fax No.: |
91-80-22320140 / 22268758
/ 22577533 / 22867140 / 22862334 / 22867361 / 22865275 / 22320361 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Located at : v
Chakeri,
P. B. No. 225, v
v
v
Koraput v
Nashik v
Korwa Engine Division:
Tel. No.
91-80-2526 5201 / 2528 3117 Fax No.
91-80-2527 9564 Design Complex
Vimanapura, P. B.
No. 1789, HAL Complex, Tel. No.
91-80-2526 5201 / 1020 Contact Person:
Dr. C. R. Ramanja Char (General Manager) |
|
|
|
|
Plant : |
Engine Division –
Koraput, P.O. Sunabeda – 763 002, District Koraput, |
|
Tel. No. : |
91-6853-220200 |
|
Fax No. : |
91-6853-220004/220217 |
DIRECTORS
As on 26.09.2012
|
Name : |
Mr. R.K. Tyagi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P.V Deshmukh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.K. Jha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Soundara Rajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. M. Chamola |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Naresh Babu |
|
Designation : |
Managing Director
(Bangalore Complex) and Additional.Charge Director (Corporate Planning &
Marketing |
|
|
|
|
Name : |
Dr. A. K. Mishra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T.
Suvarna Raju |
|
Designation : |
Director |
|
|
|
|
|
|
|
Name : |
Mr. V. K.
Misra |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. N. K. Naik |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ajay
Shankar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Surendra Kumar |
|
Designation : |
Director |
|
|
|
|
Name : |
Prof. (Dr.) R. Venkata Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. V.
R. Sastry |
|
Designation : |
Director |
|
|
|
|
Name : |
|
|
Designation : |
|
KEY EXECUTIVES
|
Name : |
Mr. Manoj Saunik |
|
Designation : |
Joint Secretary
(Aerospace) Ministry of Defence |
|
|
|
|
Name : |
Mr. Ashok Tandon |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. P.K. Kataria |
|
Designation : |
Additional FA and Joint Secretary of Ministry
Defence (Finance Wing) |
|
|
|
|
Management Committee: |
· Mr. R.K. Tyagi · Mr. P.V Deshmukh · Mr. S.K. Jha · Mr. P. Soundara Rajan · Mr. V. M. Chamola · Mr. K. Naresh Babu · Dr. A. K. Mishra · Mr. T. Suvarna Raju |
|
|
|
|
Audit Committee: |
· Mr. V. K. Misra · Dr. N. K. Naik · Mr. Surendra Kumar · Mr. V. V. R. Sastry ·
Mr. Manoj Saunik ·
Mr. P.K. Kataria |
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Upgrade and Overhaul of Fighters, Trainers, Helicopters etc |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
32659 (Approximately) |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
·
State
Bank of India ·
State
Bank of Mysore ·
State
Bank of Hyderabad ·
State
Bank of Travancore ·
State
Bank of Patiala ·
State
Bank of Bikaner and Jaipur ·
Punjab
National Bank ·
Indian
Bank ·
Indian
Overseas Bank ·
Bank
of Baroda ·
Exim
Bank ·
Syndicate
Bank ·
Union
Bank of India |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
------ |
|
|
|
|
Auditors : |
|
|
Name : |
M/s. Dagliya and Company Chartered Accountants |
|
Address : |
Bangalore |
|
|
|
|
Branch Auditors: |
·
M/s. Khanna Thaker and Company Chartered Accountants ·
M/s. Samria and Company Chartered Accountants ·
M/s. S. Daga and Company Chartered Accountants ·
M/s. Radhika and Company Chartered Accountants ·
M/s. K. D. Lath and Company , Chartered Accountants ·
M/s. S. N. Saha and Company Chartered Accountants ·
M/s. Agarwal and Saxena, Chartered Accountants ·
M/s. Parimal Ram and Pattabhi, Chartered Accountants ·
M/s. B.S. Reddy and Company Chartered Accountants ·
M/s. Balu and Anand Chartered Accountants ·
M/s. S. K. Jindal and Company Chartered Accountants ·
M/s. B. S. Prakash and Company Chartered Accountants ·
M/s. V. Ramaswamy Iyer and
Company Chartered Accountants ·
M/s. SSB and Associates Chartered Accountants ·
M/s. G. V. Acharya and Company Chartered Accountants ·
M/s. Vimal and Company
Chartered Accountants ·
M/s. Ranga and Company Chartered Accountants ·
M/s. B. N. Subramanya and
Company Chartered Accountants ·
M/s. Mallya and Mallya Chartered Accountants ·
M/s. J. Srinivasan Chartered Accountants |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
160000000 |
Equity Shares |
Rs.10/- each |
Rs.1600.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120500000 |
Equity Shares |
Rs.10/- each |
Rs. 1205.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1205.000 |
1205.000 |
1205.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
112180.989 |
96247.224 |
80030.226 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
113385.989 |
97452.224 |
81235.226 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
50.455 |
53.004 |
0.000 |
|
|
TOTAL BORROWING |
50.455 |
53.004 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
14769.763 |
14855.529 |
15052.868 |
|
|
DEFERRED TAX LIABILITIES (Net) |
0.000 |
0.000 |
1.820 |
|
|
TOTAL |
128206.207 |
112360.757 |
96289.914 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
19382.813 |
18600.514 |
14655.024 |
|
|
Capital work-in-progress |
699.787 |
1184.198 |
2123.740 |
|
|
|
|
|
|
|
|
INVESTMENT |
5274.504 |
3975.107 |
29782.531 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
2306.560 |
|
|
|
|
|
0.000 |
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
160858.332
|
173757.848 |
136600.348
|
|
|
Sundry Debtors |
38724.924
|
23066.260 |
18580.350
|
|
|
Cash & Bank Balances |
219325.192
|
200992.860 |
186576.356
|
|
|
Other Current Assets |
70733.731
|
72049.353 |
0.000
|
|
|
Loans & Advances |
38051.975
|
29956.899 |
50733.840
|
|
Total
Current Assets |
527694.154
|
499823.220 |
392490.894 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
13510.489
|
12541.335 |
30636.563
|
|
|
Other Current Liabilities |
380363.316
|
374805.011 |
318236.667
|
|
|
Provisions |
30971.246
|
23875.936 |
15857.873
|
|
Total
Current Liabilities |
424845.051
|
411222.282 |
364731.103
|
|
|
Net Current Assets |
102849.103
|
88600.938 |
27759.791
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
19662.268 |
|
|
|
|
|
|
|
|
TOTAL |
128206.207 |
112360.757 |
96289.914 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
142110.596 |
131237.326 |
114558.212 |
|
|
|
Other Income |
25104.612 |
22873.120 |
19536.961 |
|
|
|
TOTAL (A) |
167215.208 |
154110.446 |
134095.173 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
56113.126 |
113905.942 |
|
|
|
|
Purchase of stock in trade |
1499.586 |
3818.312 |
|
|
|
|
Changes in inventories |
15090.980 |
(33339.008) |
|
|
|
|
Employee benefit expense |
27617.858 |
22462.825 |
|
|
|
|
Provision |
7392.936 |
4865.888 |
|
|
|
|
Other expense |
10459.514 |
10068.658 |
|
|
|
|
Direct input to WIP/expense capitalized |
6720.021 |
2898.888 |
|
|
|
|
Capital and other account |
1812.897 |
(7114.299) |
|
|
|
|
TOTAL (B) |
126706.918 |
117567.206 |
105550.532 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
40508.290 |
36543..240 |
28544.641 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.045 |
0.344 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
40508.290 |
36543.195 |
28544.297 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7223.135 |
8147.957 |
1659.973 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
33285.155 |
28395.239 |
26884.324 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7890.834 |
7252.661 |
7210.211 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
25394.321 |
21142.578 |
19674.113 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
15933.800 |
16217.000 |
2999.500 |
|
|
|
Dividend |
8140.000 |
4231.200 |
935.322 |
|
|
|
Tax on Dividend |
1320.600 |
694.400 |
668.723 |
|
|
BALANCE CARRIED TO
THE B/S |
7325.921 |
(0.022) |
15070.568 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3260.435 |
2217.082 |
1766.406 |
|
|
|
service |
222.904 |
156.772 |
249.262 |
|
|
|
Other earning |
0.000 |
0.000 |
37.176 |
|
|
TOTAL EARNINGS |
3483.339 |
2373.854 |
2052.844 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
38454.202 |
96229.035 |
NA |
|
|
|
Stores and spares parts |
13691.549 |
14965.518 |
NA |
|
|
|
Capital Goods |
590.442 |
558.996 |
NA |
|
|
|
Special tools |
3685.670 |
1625.807 |
NA |
|
|
TOTAL IMPORTS |
56421.863 |
113379.356 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
210.74 |
175.46 |
163.27 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
15.18
|
13.72
|
14.67
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
23.42
|
21.65
|
23.47
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.08
|
6.03
|
6.60
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.29
|
0.33
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.75
|
4.37
|
4.49
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.10
|
1.08
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
No |
|
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 |
OPERATING
RESULTS
During the year, Company
has registered a record turnover of Rs.142042.100 Millions, with a growth of
8.30 per cent over the previous year and Profit Before Tax of Rs. 33285.200
Millions as compared to Rs. 28395.200
Millions in the previous year. The net worth of the Company has gone up from
Rs.97452.200 Millions to Rs.113386.000 Millions in 2011-12 registering an
increase of 16.35 percent
AWARDS AND RECOGNITIONS
The Company has received
the following awards/ recognitions during the year:-
1.
Company
level
·
"MOU
Excellence Award" for the year 2009-10 (Top Ten Public Sector
Enterprises). The Company has been receiving this award consecutively since
2001-02.
·
"Regional
Export Award" from EEPC India for the year 2009-10.
·
"Best
Exporter Award 2011 in special category (Gold)" from the Federation of
Karnataka Chambers of Commerce & Industry (FKCCI).
2.
Divisional
level
·
Avionics
Division, Korwa: Raksha Mantri's award for
Excellence 2009-10 in the category of Import substitution.
·
Aerospace
Division, Bangalore: Gold
Medal award by the Society of Aerospace Manufacturing Engineers (SAME),
Trivandrum, for the year 2010 for outstanding contributions in the field of
Aerospace Manufacturing.
·
Overhaul
Division, Bangalore: "UTTAMA
SURAKSHA PURASKARA" award from the National Safety Council -Karnataka
Chapter, in recognition of best safety performance and management system for
the year 2009-10.
·
Foundry
and Forge Division, Bangalore:
- First Prize for the
Best Exhibition Stall in the International Conference and Exhibition
(INCAL) on Aluminium, held from 6th to 8th December, 2011 at Hyderabad
for displaying high-end technologies, capabilities and its products.
- The Quality Circle team
"Superfinish" won "Distinguished award" in ICQCC 2011
(International Convention on Quality Control Circles) held in Japan in
October, 2011.
- Four Quality Circles
won the "Gold Category" award from CCQC-Bangalore Chapter.
·
Avionics
Division, Hyderabad: The
Quality Circle team "Novel" won "Distinguished award" in
ICQCC 2011 (International Convention on Quality Control Circles) held in Japan
in October, 2011.
·
Composite
Manufacturing Division, Bangalore: The
Quality Circle team "Pragathi" won "Distinguished award" in
ICQCC 2011 (International Convention on Quality Control Circles) held in Japan
in October, 2011.
SIGNIFICANT ACHIEVEMENTS
The significant
achievements during the year are as follows:-
- The Company produced 78 aircraft
and helicopters along with engines and accessories. The production
includes Su-30MkI, Hawk, Advanced Light Helicopter (ALH), Dornier Do-228,
Chetak, PTA and Limited Series Production (LSP) of the Light Combat
Aircraft (LCA) and Intermediate Jet Trainer (LIT).
- Further, during the year, the
Company has produced 127 New (Category A) Engines, Overhauled 213
Aircraft/ Helicopters and 460 Engines.
- Eight Dornier-228 Aircraft
were upgraded with new avionics. The Transport Aircraft Division, Kanpur,
delivered the aircraft ahead of the schedule.
- On the Design and Development
front, major milestones were achieved with the first flight of Light
Combat Helicopter (LCH) Technology Demonstrator-2 (TD-2) and Light Combat
Aircraft (LCA) LSP-7.
- First flight of LCH-TD-2 was
carried out on 28th June, 2011. TD-2 is built with weight-reduced parts
and optimized transmission system and also incorporates several
improvements based on flight evaluation of TD-1 and Design reviews carried
out.
- LCA LSP-7 made its maiden flight
on 9th March, 2012. The Aircraft was built, incorporating the resolution
of Request for Actions (RFAs) arising out of Customer observations and
Design changes. The Aircraft will be used by the IAF for user trials.
- Significant milestone was
achieved towards certification of weaponised version of the ALH by
completing all flight trials for Turret Gun and Rocket
.
- Significant progress has been
made in design and development activities on Light Utility Helicopter
(LUH) with the completion of detailed design and analysis for all the
structural parts and analysis for structural assembly. Design of assembly
jigs also completed.
- To enhance self-reliance and to overcome
obsolescence, 3,204 types of spares and equipment of
aircraft/engine/accessories were indigenised during the year. The
projected Foreign Exchange saving is of the order of Rs. 572.4 millions.
MANAGEMENT DISCUSSION AND
ANALYSIS REPORT
INDUSTRY SCENARIO
- Owing to the global turn of
events like European sovereign debt crisis, fiscal deficit challenges in
the United States and other European countries, the global Aerospace and
Defence (A&D) industry may not see any visible growth in the year
2012, but will be in line with the performance of 2011. While the
commercial aircraft industry is looking up with higher production numbers
and enhanced order collections, parts of the defence industry are
declining due to decreased military spending principally in the United
States and Europe.
- It may be noted that US and
European countries account for approximately 70% of the global defence
expenditure. This change in the global perspective is forcing the major
OEMs of the industry to change their business strategy towards expanding
and strengthening their positions in the emerging markets like India, Brazil,
South Korea, Saudi Arabia, UAE etc. It is assessed that due to this shift
in focus on the emerging markets, the market would witness more aggressive
competition and further streamlining of its cost structure.
- In line with the trend in the
emerging markets worldwide the A&D industry in India is on its
expansion cycle driven by the Modernisation Plans, increased focus on Home
Land Security and India's growing attractiveness as a "Home
Market" defence sourcing hub. With a total defence allocation of Rs.
19.4 Lakh Millions for the year 2012-13, India is currently the 9th
largest defence spender and has the 3rd highest growth rate, with an
estimated 2.5% share in the global defence expenditure.
- The defence industry in the
country was until recently, dominated by the Defence Public Sector
Undertakings (DPSUs). The private sector was mainly involved in supply of
raw materials, semi finished products, parts and components to defence
PSUs and OFBs. The industry is undergoing a paradigm shift with the
opening up of the industry for private sector participation.
- During the last decade, the
government has introduced a series of policy changes in the defence sector
to create a strong industrial base combining both public and private
sector, to promote indigenisation, to foster investments and promote the
growth of the Indian defence industry. These include :-
- 100% participation of the
private sector subject to licensing from the Department of Industrial
Policy and Promotion
- Foreign Direct Investment of
upto 26%
- Upto 80% funding in Research
and Development costs
- Assured orders and long term
partnerships
- Transparency in the Defence
Procurement Procedures
- The introduction of the
concept of "Offsets" in the Defence Procurement Policy 2006 and
reinforced in subsequent revisions has opened up new vistas with huge
business potential to the Public and the Private sector companies in the
country.
- The thrust given by the
government has yielded results and many major industrial houses in the
country, have diversified into the A and D sector. News of collaborations
and tie-ups between the Foreign OEMs who are the technology providers and
the Indian companies is common. The Indian defence Industry is also on the
expansion cycle and augurs well for the establishment of a strong
industrial base and enhancement in self reliance.
- The Company has developed
capabilities in the field of Aeronautics which can be utilised to
diversify into civil aviation. So far 105 Nos. Dornier and 89 Nos. Avro
(HS-748) have been manufactured and are being supported for maintenance.
As per reports, the Civil Aviation traffic in India has increased nearly
six-fold from 13 million passengers to around 60 million passengers in the
last decade. It is expected that by 2030 nearly 1.2 billion passengers may
be handled by domestic airlines. The Indian aviation industry has been
growing at around 15-20% in the last two years. India is likely to become
world's third largest aviation market by 2030. Your Company is developing
strategy to support the Indian civil aviation market and diversifying into
Civil Aviation including MRO business.
- In India, the aerospace
sector has been spearheaded by HAL and is reckoned as the Flag Bearer of
Indian Aviation. Hindustan Aeronautics Limited, a Navratna PSU, a Premier
Aerospace Company is the biggest DPSU in the country. HAL is currently
ranked 36th for the year 2010 as per the Flight International Top 100
survey of aerospace manufacturing Companies.
OUTLOOK
- The Company with a vision
"To become a significant global player in the aerospace
industry" has chalked out plans and strategies to put itself into the
big league of global companies, while achieving the mission of becoming
self reliant in supporting the Indian Defence Services. HAL a
"Navaratna PSU" aspires to become a "Maharatna" PSU
and break into the top 20 Aerospace Companies in the world, in the near
future.
- HAL with a turnover of Rs.
14204.2.1 Millions in the year 2011-12, is aiming for a further higher
turnover in the year 2012-13.
- The Company has drawn a Long
Term Perspective Plan to realize its 'Vision' covering the period from
2012-2022 (i.e. up to the end of the 13th Plan). As per the Perspective
Plan, the Company would achieve a Sales of Rs. 272000.000 Millions by 2017. The
Perspective Plan outlines the roadmap for HAL's march towards the 'Vision'
through analysis of current position, defining strategies to be adopted to
overcome challenges and to sustain growth. Detailed Plans for Technology
Induction, Modernisation, Manpower, Collaborations etc., are being
prepared in line with the overall strategy.
· HAL is presently involved in the design and development of the Advanced Light Helicopter (ALH), the Light Combat Helicopter (LCH), the Light Utility Helicopter (LUH), the Intermediate Jet Trainer (LIT) and the Basic Trainer aircraft. Five years from now, HAL will have the ALH, the LCH, the LUH, the LIT and the Basic Trainer, fully certified in its product profile. HAL would have absorbed the state-of-the-art production technologies from the Medium Multi Role Combat Aircraft (MMRCA) project. HAL would have gained valuable design expertise in the design and development of fighter and transport aircraft and also absorbed the latest manufacturing technologies from the Russians in the Fifth Generation Fighter Aircraft (FGFA) and Multi-role Transport Aircraft (MTA) projects. HAL would be in a position to deliver homegrown products to the Indian Armed forces as well as export the above products in significant numbers against competition from the global OEMs. To sum it up, in the next five years, HAL will have the manufacturing capabilities to deliver high quality products and compete with the global OEMs along with the design capabilities to develop the next generation products
PRESS RELEASES
HAL Signs Contract for 42 Su-30 Supersonic Fighters with Rosobornexport
and MOD on the Eve of Russian President’s Visit to India
December 24, 2012:
Hindustan Aeronautics Limited (HAL) signed a contract for 42 numbers of Su-30 MKI frontline Fighter Aircraft with the Ministry of Defence and Russian firm Rosoboronexport in New Delhi today. “HAL’s total responsibility for this supersonic multirole aircraft has now gone up to 222. This will further boost our confidence and operations as we have already delivered 119 Su-30 aircraft to the Air Force. We will continue to contribute to the country’s defence preparedness”, says Dr. R. K. Tyagi, Chairman, HAL. The deal was inked by Dr. Tyagi on behalf of HAL with the Ministry of Defence. Mr. S. Subramanyan, Managing Director of HAL’s MiG Complex signed the contract with Mr. A. A. Mikheev, Deputy General Director of Rosobornexport.
One hundred fifty seven Indian vendors are involved in providing 13,350
components of the aircraft while another 19,450 components are manufactured at
HAL’s Nasik and Koraput Divisions, adds Dr. Tyagi.
The Su-30 MKI project provides solid platform to indigenous manufacturing and technical competence creating hundreds of direct and indirect jobs. HAL’s hand-holding with private entrepreneurs has also ensured creation of strong infrastructure and quality avionics products.
Su-30 MKI is a two-seater, highly manoeuvrable, supersonic, multirole aircraft
for day and night operations in all weather conditions. The aircraft is fitted
with two turbojet AL-31FP engines and is equipped with state-of-the-art
avionics from Russian, Western and indigenous sources.
The project has enabled HAL to master niche technologies of aircraft building
and absorb new technologies in manufacturing areas like machining, forming,
welding, assembly, testing and aircraft system checks. The aircraft airframes
are made at Nasik, engines at Koraput, accessories at Hyderabad (communication
and navigation), hydraulic, pneumatic and fuel aggregates and instruments at
Lucknow and avionic displays and INGPS at Korwa. Overhauling and repairs of
Su-30 MKI have already commenced in the dedicated lines set up at Nasik.
NEW
PROJECTS
MULTI -ROLE TRANSPORT
AIRCRAFT (MTA)
The Business Plan of
Multirole Transport Aircraft Limited (MTAL), set up in collaboration with the
Russians for co-design/ co-development of the Multi-role Transport Aircraft,
was finalised. Further, the partners agreed on the work share during Design and
Development phase.
A General Contract for MTA
was signed with the Russians containing inter-alia, the technical aspects, time
schedule, scope and broad terms and conditions for execution of the
co-design/development program. The Preliminary Design Phase (PDP) Contract will
be finalised during the year 2012-13. The Project is being executed by MTAL, a
Joint Venture Company of HAL and the Russian Partners.
FIFTH GENERATION FIGHTER
AIRCRAFT (FGFA)
The project for co-design/development
of Prospective Multi-Role Fighter aircraft (PMF), a Fifth Generation Fighter
Aircraft (FGFA) had been taken up in collaboration with the Russians namely
Sukhoi Design Bureau (SDB) and Rosoboronexport (ROE).
Further to conclusion of the
Preliminary Design Phase (PDP) Contract, the design activities are in progress.
Training in Special software to HAL Designers has been completed. FGFA Design
Wing at ARDC became operational in September 2011 and preliminary discussions
were held on RandD contract with the Russian Partners. Indian Specialist
Designers have been deputed to Sukhoi Design Bureau, Moscow for joint design
activities. Preliminary Design activities are planned to be completed by T0
+ 18M.
BASIC TURBOPROP TRAINER
AIRCRAFT (HTT-40)
The Company had approached
the Government of India for approval to undertake Design and Development of a
Basic Turboprop Trainer Aircraft designated as HTT-40 to replace the existing
HPT-32. Pending approval of the Ministry of Defence, the Company has launched
the programme and the following progress has been made:-
·
Aircraft
Configuration frozen and Numerical Master Geometry finalised.
·
Wind
tunnel model fabrication and testing completed.
·
IT
Infrastructure augmentation is under progress.
·
System
specifications are ready and Line Replacement Unit (LRU) list are being drawn
up.
·
RFP
will be issued shortly.
NEW PROGRAMS LAUNCHED
During the year, the
following new programs have been launched:-
·
Series
production of AL-55-I Engine at Engine Division, Koraput
·
Technology
development of Health and Usage Monitoring System(HUMS) by Avionics Division,
Korwa
·
Development
of Advanced Flight Data Analysis System (AFDAS) for MiG-27 Upgrade by Avionics
Division, Korwa
·
Flight
test facility modernisation at RWRDC, Bangalore
JOINT VENTURE COMPANIES
The Company has promoted
and established 11 Joint Venture Companies (JVCs) in collaboration with the
leading international aviation and / or Indian organisations with a view to develop
technologies, and new products with risk sharing. The JVCs support the
Company's endeavour towards upgradation of capabilities, acquisition of cutting
edge technologies in the field of design, manufacturing, product support,
information technology and other services. The Ministry of Defence has issued
certain guidelines for establishment of JVCs by Defence PSUs.
The Annual Accounts
contains relevant disclosures with regard to the Assets, Liabilities, Income
and other details of the JVCs. Out of 11 JVCs, 2 JVCs i.e., International
Aerospace Manufacturing Private Limited and Multirole Transport Aircraft
Limited are yet to commence commercial production. Total investment of Rs.
822.4 Millions has been made in the equity capital of the JVC and on 31.03.2012.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.84 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
SPN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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.