MIRA INFORM REPORT
|
Report Date : |
08.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
HONEYWELL AUTOMATION INDIA LIMITED (w.e.f. March 24, 2005) |
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Formerly Known
As : |
TATA HONEYWELL LIMITED |
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Registered
Office : |
56 and 57, Hadapsar Industrial Estate, Pune – 411 013, |
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Country : |
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Financials (as
on) : |
31.12.2012 |
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Date of
Incorporation : |
13.01.1984 |
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Com. Reg. No.: |
11-017951 |
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Capital
Investment / Paid-up Capital : |
Rs. 88.400 Millions |
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CIN No.: [Company Identification
No.] |
L29299PN1984PLC017951 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNET00043B |
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PAN No.: [Permanent Account No.] |
AAACT3904F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged primarily in business of Process Control and Management Systems field on turnkey basis and otherwise. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
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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 28000000 |
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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.
There appears slight dip in its profitability. However, general financial position of the company seems to be strong.
Liquidity position is good. There appears no external borrowing. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 DENIED BY
|
Name : |
Mr. Kulkarni |
|
Designation : |
Finance Department |
|
Date : |
07.06.2013 |
LOCATIONS
|
Registered Office / Head Office : |
56 and 57, Hadapsar Industrial Estate, Pune – 411 013, |
|
Tel. No.: |
91-20-66039400 / 26870445 / 26870446 / 26872170 / 26870153 /
66008187 / 66072725 |
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Fax No.: |
91-20-66039800 / 26872205 / 26875957 / 66039979 |
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E-Mail : |
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Website : |
http://www.honeywell.com |
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Regional Offices : |
Located at: ·
·
·
Chennai ·
·
·
Kolkata ·
Mumbai ·
·
|
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Madhukar Narayan Bhagwat |
|
Designation : |
Chairman and Independent Director |
|
Address : |
62, Blue Haven, 14, |
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Date of Birth/Age : |
04.06.1932 |
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Qualification : |
M .Mechanical Engineering |
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Date of Appointment : |
02.11.2004 |
|
DIN No.: |
00036692 |
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|
Name : |
Mr. Surendra Laxminarayan Rao |
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Designation : |
Independent Director |
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Address : |
D1, Chartered Cottage, |
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Date of Birth/Age : |
22.01.1936 |
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Qualification : |
B.Com, M.A in Economic |
|
Date of Appointment : |
24.01.2002 |
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DIN No.: |
00005675 |
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|
Name : |
Gerard Milton Willis |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
27.12.1953 |
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Qualification : |
MA International Affairs, BA |
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Date of Appointment : |
01.01.2006 |
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DIN No.: |
02696947 |
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|
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Name : |
Shane Shahrooz Tedjarati |
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Designation : |
Director |
|
Address : |
# 58, Le Chateau 2000, |
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Date of Birth/Age : |
16.11.1962 |
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Qualification : |
MBA |
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Date of Appointment : |
14.10.2008 |
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DIN No.: |
02396256 |
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|
|
|
Name : |
Norman Lee Gilsdorf |
|
Designation : |
Director |
|
Address : |
Flat # 20, Dorchester House, 8, Strand Drive, Richmond Survey, United
Kingdom, TW94DX |
|
Date of Birth/Age : |
18.12.1953 |
|
Qualification : |
Chemical engineering degree, MBA in international business and finance |
|
Date of Appointment : |
06.02.2009 |
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DIN No.: |
02558302 |
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|
|
|
Name : |
Mr. Anant Hari Maheshwari |
|
Designation : |
Managing Director |
|
Address : |
73, |
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Date of Birth/Age : |
07.04.1973 |
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Qualification : |
MBA, MS Economics, BE |
|
Date of Appointment : |
01.03.2010 |
|
DIN No.: |
02963839 |
KEY EXECUTIVES
|
Name : |
Ms. Sneha Prashant Padve |
|
Designation : |
Company Secretary |
|
Address : |
Building I, Flat # 8, Parmar Nagar, Fatima Nagar, Pune – 411 013,
Maharashtra, India |
|
Date of Birth/Age : |
19.04.1967 |
|
Qualification : |
LLB, B commerce |
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Date of Appointment : |
14.08.1996 |
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PAN No.: |
AEVPP7162B |
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SENIOR MANAGEMENT TEAM: |
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|
Name : |
Mr. Ananthanarayanan K. V. |
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Designation : |
Head - Lega |
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|
Name : |
Mr. Bagaitkar Ravi |
|
Designation : |
Head - Honeywell Operating System |
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|
Name : |
Mr. Bansal Rohit |
|
Designation : |
Head - Sensing and Controls |
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|
Name : |
Mr. Bhatia Vivek |
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Designation : |
Head - Global Services |
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Name : |
Mr. Biswas Amitava |
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Designation : |
Head - Process Solutions |
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|
Name : |
Mr. Chadha Vikas |
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Designation : |
Head - Building Solutions |
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|
Name : |
Mr. Kamal Asad |
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Designation : |
Head - Strategy and Marketing |
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|
Name : |
Mr. Kelkar Anant |
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Designation : |
Head - Integrated Supply Chain |
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Name : |
Mr. Limaye Prasad |
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Designation : |
Head - Audit and Internal Controls |
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Name : |
Mr. Mitter Kaushik |
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Designation : |
Head - Human Resources |
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Name : |
Mr. Patil Ajay |
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Designation : |
Chief Financial Officer |
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|
Name : |
Mr. Pradhan Ninad |
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Designation : |
Head - Environment and Combustion Controls |
SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category of
Shareholder |
Number of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
6631142 |
75.00 |
|
|
6631142 |
75.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
6631142 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1066523 |
12.06 |
|
|
1234 |
0.01 |
|
|
285 |
0.00 |
|
|
37544 |
0.42 |
|
|
1105586 |
12.50 |
|
|
|
|
|
|
192734 |
2.18 |
|
|
|
|
|
|
859305 |
9.72 |
|
|
50942 |
0.58 |
|
|
1814 |
0.02 |
|
|
1114 |
0.01 |
|
|
700 |
0.01 |
|
|
1104795 |
12.50 |
|
Total Public shareholding (B) |
2210381 |
25.00 |
|
Total (A)+(B) |
8841523 |
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) |
8841523 |
0.00 |
Shareholding belonging
to the category "Promoter and Promoter Group"
|
Sr. No. |
Name of the
Shareholder |
Details of Shares held |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
|
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
|
|
1 |
Honeywell Asia Pacific Inc |
66,31,142 |
75.00 |
75.00 |
|
|
Total |
66,31,142 |
75.00 |
75.0 |
Shareholding
belonging to the category "Public" and holding more than 1% of the Total
No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares
assuming full conversion of warrants and convertible securities) as a % of
diluted share capital |
|
1 |
Birla Sun Life Trustee Company Private Limited A/c Birla Sun Life Tax Relief 96 |
161358 |
1.83 |
1.83 |
|
2 |
Reliance Capital Trustee Company Limited A/c Reliance Regular Savings Fund Equity Option |
175000 |
1.98 |
1.98 |
|
3 |
Reliance Capital Trustee Company Limited A/c Reliance Vision Fund |
163928 |
1.85 |
1.85 |
|
4 |
Reliance Capital Trustee Company Limited A/c Relianceequity Opportunities Fund |
125900 |
1.42 |
1.42 |
|
|
Total |
626186 |
7.08 |
7.08 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged primarily in business of Process Control and Management Systems field on turnkey basis and otherwise. |
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Products : |
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PRODUCTION STATUS (As on 31.12.2011)
|
Particulars |
Unit |
Actual
Production |
|
Systems |
Nos |
399 |
|
Transmitters |
Nos. |
37933 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
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Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Price Waterhouse and Company Chartered Accountants |
|
Address : |
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PAN No.: |
AADFP9359C |
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Holding Company
: |
Honeywell Asia -Pacific Inc. |
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Ultimate Holding
Company : |
Honeywell International Inc. |
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Fellow Subsidiaries
: |
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CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8841697 |
Equity Shares |
Rs.10/- each |
Rs.88.400
Millions |
|
|
|
|
|
Rights, preferences
and restrictions attached to the shares
Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Reconciliation of
shares:
|
Particular |
Number of shares |
Rs. In Millions |
|
Equity shares |
|
|
|
Balance as at the beginning and end of the year |
8841523 |
88.400 |
Shares held by holding company and subsidiary of holding company
|
Particular |
Number of shares |
Rs. In Millions |
|
Equity shares |
|
|
|
Honeywell Asia Pacific Inc. (Holding company) |
6,631,142 |
66.300 |
Number of shares held by shareholders holding more than 5% of the
aggregate shares in the Company
|
Particular |
Number of shares |
Percentage |
|
Equity shares |
|
|
|
Honeywell Asia Pacific Inc. (Holding company) |
6,631,142 |
75.00% |
a) 6,631,142 (December 31, 2011 : 7,182,475) Equity Shares constituting 75% (December 31, 2011 : 81.24%) of the paid-up capital of the Company are held by Honeywell International Inc., the ultimate holding company, through its 100% subsidiary, Honeywell Asia Pacific Inc.
b) The Company has not allotted any shares as fully paid up bonus shares or pursuant to contract(s) neither payment being received in cash during 5 years immediately preceding December 31, 2012
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
88.400 |
88.400 |
88.415 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6963.100 |
6214.100 |
5245.428 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7051.500 |
6302.500 |
5333.843 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7051.500 |
6302.500 |
5333.843 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
717.000 |
741.700 |
753.143 |
|
|
Capital work-in-progress |
3.700 |
27.200 |
8.772 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
423.100 |
403.600 |
308.868 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1036.700
|
834.600 |
788.267 |
|
|
Sundry Debtors |
3754.800
|
3478.100 |
3215.054 |
|
|
Contracts in progress |
0.000
|
0.000 |
1010.354 |
|
|
Cash & Bank Balances |
1487.700
|
1765.600 |
2111.825 |
|
|
Other Current Assets |
2724.200
|
2648.300 |
28.850 |
|
|
Loans & Advances |
1688.000
|
1362.300 |
1022.703 |
|
Total
Current Assets |
10691.400
|
10088.900 |
8177.053 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3272.500
|
3508.700 |
2721.773 |
|
|
Other Current Liabilities |
795.100
|
679.100 |
541.000 |
|
|
Provisions |
716.100
|
771.100 |
651.220 |
|
Total
Current Liabilities |
4783.700
|
4958.900 |
3913.993 |
|
|
Net Current Assets |
5907.700
|
5130.000 |
4263.060 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7051.500 |
6302.500 |
5333.843 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
16607.300 |
16130.400 |
13547.084 |
|
|
|
Other Income |
111.900 |
163.200 |
90.571 |
|
|
|
TOTAL (A) |
16719.200 |
16293.600 |
13637.655 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
8362.000 |
8448.600 |
12118.866 |
|
|
|
Purchases of traded goods |
1514.300 |
1293.700 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(201.400) |
(39.900) |
|
|
|
|
Employee benefits expense |
2972.900 |
2835.500 |
|
|
|
|
Other expenses |
2734.900 |
2142.000 |
|
|
|
|
TOTAL (B) |
15382.700 |
14679.900 |
12118.866 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1336.500 |
1613.700 |
1518.789 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3.400 |
8.500 |
0.843 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1333.100 |
1605.200 |
1517.946 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
139.900 |
148.100 |
128.990 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
1193.200 |
1457.100 |
1388.956 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
341.500 |
385.700 |
338.496 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
851.700 |
1071.400 |
1050.460 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4794.700 |
3933.100 |
3090.810 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
85.200 |
107.100 |
105.046 |
|
|
|
Dividend |
88.400 |
88.400 |
88.415 |
|
|
|
Tax on Dividend |
14.300 |
14.300 |
14.685 |
|
|
BALANCE CARRIED
TO THE B/S |
5458.500 |
4794.700 |
3933.124 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Export |
2921.300 |
2166.000 |
2112.510 |
|
|
|
Services |
2467.100 |
2724.900 |
2327.678 |
|
|
|
Reimbursements |
616.200 |
487.500 |
378.741 |
|
|
|
Others |
957.200 |
670.800 |
430.529 |
|
|
TOTAL EARNINGS |
6961.800 |
6049.200 |
5249.458 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
10.600 |
22.300 |
24.292 |
|
|
|
Raw Materials |
5453.300 |
4629.400 |
3679.173 |
|
|
TOTAL IMPORTS |
5463.900 |
4651.700 |
3703.465 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
96.33 |
121.180 |
118.81 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
31.03.2013 |
|
Net Sales |
|
|
|
3854.100 |
|
Total Expenditure |
|
|
|
3614.500 |
|
PBIDT (Excl OI) |
|
|
|
29.600 |
|
Other Income |
|
|
|
21.500 |
|
Operating Profit |
|
|
|
261.100 |
|
Interest |
|
|
|
00.200 |
|
Exceptional Items |
|
|
|
0.000 |
|
PBDT |
|
|
|
260.900 |
|
Depreciation |
|
|
|
35.200 |
|
Profit Before Tax |
|
|
|
225.700 |
|
Tax |
|
|
|
72.900 |
|
Provisions and contingencies |
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
152.800 |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
152.800 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
PAT / Total Income |
(%) |
5.09
|
6.58 |
7.70 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.18
|
9.03 |
10.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.46
|
13.45 |
15.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.23 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.23
|
1.36 |
2.09 |
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 |
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 |
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 |
No |
OPERATIONS:
- Honeywell Process Solutions (HPS) – business
serves core industrial sectors of Refining, Oil and Gas, Pulp and Paper,
Metal and Cement etc.
- Honeywell Building Solutions (HBS) – business
provides solutions and services for facilities such as Commercial and
Industrial Buildings, IT and ITES industry, Hospitals, Hotels, Airports,
Mass Rapid Transit (MRT) etc.
- Environment and Combustion Control (ECC) – Through multi
channels and multiple brands, offers environmental and combustion products
and solutions to commercial, hospitality and industrial segments.
- Sensing and Control (SandC) – Products business provides various
sensors and switches to manufacturing and automobile industry. This
business serves primarily OEMs in various manufacturing industries such as
auto, medical instrumentation, IT, etc.
- Exports Business Group (EBG) – Addresses manufacturing and
engineering services needs of Honeywell long with some other non Honeywell
customers across the globe, leveraging the cost, skills and knowledge
arbitrage.
INDUSTRY OUTLOOK AND
OPPORTUNITIES
The Company's operating results are significantly influenced by macro-economic trends such as Industrial Production, Capital Spending on Process and Building Automation, Commercial and Infrastructure Construction, Commodity prices and Foreign Exchange variations.
During the year Indian economy grew at a rate significantly lower compared to that in the prior year. This impacted capital expenditure cycle and high inflation kept interest rates higher which slowed down investments. More specifically, the industrial and infrastructure sectors served by the Company saw significant slow-down during the year, which impacted both, new order inflow and also revenue recognition due to slow progress on existing backlog of long-cycle projects won in previous years. This was coupled with continued cost escalation on delayed projects. Economic and industry conditions regarding Environment, Security and Safety and Regulations for fire safety standards, security specifications for buildings etc., also have an impact on the Company's operation. Some of the important market conditions were:
- Government spending is critical for development of core
infrastructure like Roads, Ports, Airports, Mass Transportation Systems etc.
Such spending supports volume growth of Buildings Solutions and ECC
business groups of the Company. Such spending is slowed downed as several
large projects are behind schedule.
- For Process Solutions Business, delayed incremental investments in Refining, Power Generation, Transmission and Distribution, Oil Exploration projects coupled with delayed decisions in Oil Marketing and Distribution investments and private investments in Chemicals, Mining, Paper and other Small and Medium Enterprises (SME) Process Industries.
- For S and C business, the general slowdown in industrial and infrastructure construction sectors, meant significant shrinkage of available opportunities.
- During the year there have been significant economic and competitive pressures caused due to slow down in developed markets. Overall geographic mix of global business is also shifting from North America and Western Europe earlier, to other countries in Asia, Middle-east, South America and Eastern Europe - these changes significantly reduce the cost benefit of sourcing services from India by Honeywell entities. Competitive pressures especially from developing nations in Eastern Europe and Central Asia are ever increasing with comparable options available to customers closer to their geographies. In order to sustain competitiveness as well to respond to prevailing economic conditions, billings rates for export services were rationalized with effect from January 1, 2012. A communication to this effect was released in Q4, 2011. Such changes in billing rates has helped in maintaining business volumes originating from Honeywell companies around the world.
FINANCIALS:
Despite challenges noted above, overall Net Sales at Rs.16604.100 Millions (Net revenue from operations Rs.16607.300 Millions), is up 3% compared to previous year. The exports segment of the business registered growth of 11.5%. This growth was achieved amidst competitive challenges on pricing and adverse order backlog mix affecting sales volumes. The domestic business growth declined by 1.4%, driven by an economic slowdown in the segment.
Overall Net Income was Rs. 851.700 Millions, decreased by 20.5%, primarily due to
- Marginal growth in revenue, driven by slowing Indian economy coupled with higher costs due to high inflation and
- wage increases.
- Weaker Indian rupee impacted import cost structure causing cost of production to go up during the year. Some of this impact was offset by the strong performance of exports segment.
- Corporate allocation is higher by Rs. 208.100 Millions, impacted due to significantly weaker rupee as invoicing of allocation is in US Dollars, besides, marginal increase in allocation compared to prior year based on inflation and general increases. Allocations represent the Company's fair share of expenses allocated by Honeywell International Inc. to all its affiliate companies worldwide in compliance with global Transfer Pricing regulations. Also refer to Note 42 of financial statement, page 50.
- Competitive pressure on margins in the project and product businesses driven by lower selling prices as a result of the competitive market environment, offset partially by favorable revenue mix driving overall decrease in cost of goods sold by 200 bps.
- Competitive pressure on margins in the project and product businesses driven by lower selling prices as a result of the competitive market environment.
- The Company continues to invest in attracting top talent and also to remain a preferred employer. During the year, manpower expense was higher by 5%. The average headcount for the year stood lower by 4% over prior year.
- Pressure due to delayed payments from customers and increased working capital cycles for delayed projects. These were driven by tight money market conditions and a very challenging business and economic environment, which caused the Company to take higher charge on account of Provision for doubtful debts and Bad debt by 26% year on year.
CONTINGENT
LIABILITIES AS ON 31.03.2012
(Rs. in Millions)
|
Particular |
31.12.2012 |
31.12.2011 |
|
Income Tax claims against the Company |
617.200 |
563.575 |
|
Excise duty claims against the Company |
0.400 |
1.475 |
|
Sales tax refunds/claims against the Company |
233.600 |
196.221 |
|
Customs duty claims against the Company |
29.200 |
3.553 |
|
Claims against the Company not acknowledged as debts |
179.000 |
-- |
FIXED ASSETS:
Tangible Assets
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Furniture and Fixtures
·
Office Equipments
·
Vehicles
Intangible Assets
·
Product Distribution Rights HSPL
·
Oracle License
·
Software
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.56.74 |
|
|
1 |
Rs.88.53 |
|
Euro |
1 |
Rs.75.20 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.