MIRA
INFORM REPORT
|
Report Date : |
15.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ALSTOM INDIA LIMITED (w.e.f. 06.06.2012) |
|
|
|
|
Formerly Known
As : |
ALSTOM PROJECTS INDIA LIMITED |
|
|
|
|
Registered Office
: |
The International, 5th Floor, 16, Marine Lines, Cross Road No. 1, Off
Maharshi Karve Road, Churchgate, Mumbai – 400020, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
02.09.1992 |
|
|
|
|
Com. Reg. No.: |
11-068379 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 672.300 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74140MH1992PLC068379 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The company engaged in engineering, procurement, manufacturing, construction and servicing etc. of power plants and power equipment and transportation systems covering traction, signaling and train control for the railways and metros. |
|
|
|
|
No. of Employees
: |
4505 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 27000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having good track
record. Financially company has performed well. Performance capacity seems to
be good. Liquidity position of the company is strong. 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 dealing at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 |
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 : |
The International, 5th Floor, 16, Marine Lines, Cross Road No. 1, Off
Maharshi Karve Road, Churchgate, Mumbai – 400020, Maharashtra, India |
|
Tel. No.: |
91- 22- 22000487 / 490 / 528 / 22051256 |
|
Fax No.: |
91-22- 22000324 / 22086905 |
|
E-Mail : |
pradeepta.puhan@power.alstom.com
|
|
Website : |
|
|
|
|
|
Corporate Office : |
IHDP Building, Plot No.7, Sector – 127, Noida – 201301, Uttar Pradesh,
India |
|
|
|
|
Head Office /
Manufacturing Facility : |
Erda Road, GIDC, Maneja, Vadodara - 390 013, Gujarat, India |
|
Tel. No.: |
91-265-6613000 |
|
Fax No.: |
91-265-6613081 |
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|
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|
Factory : |
|
|
|
|
|
Marketing / Other
Offices : |
Located At:
|
|
|
|
|
Branch Office : |
KG Masterpiece, 1st Floor – 144, Nelson Manickkam Road,
Mehta Nagar, Aminjikarai, Chennai - – 600029, Tamilnadu, India |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Sunand Sharma |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
62 Years |
|
Qualification : |
Mechanical Engineer |
|
Experience : |
40 Years |
|
DIN No. : |
00275238 |
|
|
|
|
Name : |
Mr. Francois Carpentier |
|
Designation : |
Vice Chairman and Managing Director |
|
DIN No. : |
03124495 |
|
|
|
|
Name : |
Mr. S.M. Momaya |
|
Designation : |
Whole-Time Director and Chief Financial Officer |
|
DIN No. : |
00017199 |
|
|
|
|
Name : |
Mr. Dominique Pouliquen |
|
Designation : |
Director |
|
DIN No. : |
02462113 |
|
|
|
|
Name : |
Mr. K. Vasudevan |
|
Designation : |
Director |
|
DIN No. : |
00018023 |
|
|
|
|
Name : |
Mr. A. K. Thiagarajan |
|
Designation : |
Director |
|
DIN No. : |
00292757 |
|
|
|
|
Name : |
Dr. Uddesh Kohli |
|
Designation : |
Director |
|
Date of Birth/Age : |
71 Years |
|
Qualification : |
Degree in Engineering (IIT, Roorkee), Post Graduate in Management (Manchester) and Doctorate in Economics (Delhi School of Economics). |
|
Experience : |
46 Years |
|
DIN No. : |
00183409 |
KEY EXECUTIVES
|
Name : |
Mr. Pradeepta Puhan |
|
Designation : |
Company Secretary |
|
|
|
|
MANAGEMENT TEAM |
|
|
Name : |
Mr. Francois Carpentier |
|
Designation : |
Vice Chairman and Managing Director |
|
|
|
|
Name : |
Mr. S.M. Momaya |
|
Designation : |
Country Finance Director |
|
|
|
|
Name : |
Mr. Amaresh Singh |
|
Designation : |
Country Human Resources Director |
|
|
|
|
Name : |
Ms. Rachana Panda |
|
Designation : |
Country Communication Director |
|
|
|
|
Name : |
Mr. Hiren Vyas |
|
Designation : |
Country Legal Director |
|
|
|
|
Name : |
Mr. Ashish Ohri |
|
Designation : |
Regional Director, India, End User Service and Support |
|
|
|
|
Name : |
Mr. Nirmal Jha |
|
Designation : |
Vice President Area India, Thermal Services |
|
|
|
|
Name : |
Mr. Bertrand Constensoux |
|
Designation : |
Vice President India, Nuclear Business |
|
|
|
|
Name : |
Mr. Jojo Alexander |
|
Designation : |
Managing Director Transport, India, Asia Pacific Region |
|
|
|
|
Name : |
Alain Spohr |
|
Designation : |
Managing Director Hydro India |
|
|
|
|
Name : |
Mr. Peter Kunz |
|
Designation : |
Vice President Gas Region MEI |
|
|
|
|
Name : |
Debes Kumar Bhattacharya |
|
Designation : |
Managing Director Environment Control System, India |
|
|
|
|
Name : |
Mr. Rajeev Sharma |
|
Designation : |
Vice President Power Automation Control India and ME |
|
|
|
|
Name : |
Mr. Sanjeev Agarwal |
|
Designation : |
Managing Director Auxiliaries, India |
|
|
|
|
Name : |
Mr. Michael Keroulle |
|
Designation : |
Managing Director Boiler India |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
46088294 |
68.56 |
|
|
46088294 |
68.56 |
|
Total shareholding of Promoter and Promoter Group (A) |
46088294 |
68.56 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5776601 |
8.59 |
|
|
2432673 |
3.62 |
|
|
259742 |
0.39 |
|
|
1631712 |
2.43 |
|
|
847847 |
1.26 |
|
|
10948575 |
16.29 |
|
|
|
|
|
|
2060333 |
3.06 |
|
|
|
|
|
|
7252578 |
10.79 |
|
|
597106 |
0.89 |
|
|
280585 |
0.42 |
|
|
14048 |
0.02 |
|
|
9854 |
0.01 |
|
|
8383 |
0.01 |
|
|
230220 |
0.34 |
|
|
18080 |
0.03 |
|
|
10190602 |
15.16 |
|
Total Public shareholding (B) |
21139177 |
31.44 |
|
Total (A)+(B) |
67227471 |
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) |
67227471 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company engaged in engineering, procurement,
manufacturing, construction and servicing etc. of power plants and power
equipment and transportation systems covering traction, signaling and train
control for the railways and metros. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
4505 (Approximately) |
|
|
|
|
Bankers : |
Not Available |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
|
|
|
Holding Company: |
ALSTOM Holdings |
|
|
|
|
Parent Company : |
ALSTOM |
|
|
|
|
Immediate
Holding Company: |
ALSTOM Finance BV |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Fellow Subsidiaries
: |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
195000000 |
Equity Shares |
Rs.10/- each |
Rs.1950.000 Millions |
|
40500000 |
Preference Shares |
Rs. 100/- each |
Rs.4050.000 Millions |
|
|
Total |
|
Rs.6000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
67227471 |
Equity Shares |
Rs.10/- each |
Rs.672.300 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 |
672.300 |
670.200 |
670.242 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6264.700 |
5202.800 |
4294.714 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6937.000 |
5873.000 |
4964.956 |
|
|
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 |
7.700 |
0.000 |
|
|
Construction contracts in progress, liabilities |
16601.800 |
17584.100 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
23538.800 |
23464.800 |
4964.956 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3731.300 |
3533.100 |
3414.944 |
|
|
Capital work-in-progress |
954.900 |
447.400 |
540.677 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.500 |
0.000 |
0.036 |
|
|
DEFERRED TAX ASSETS |
124.500 |
0.000 |
65.850 |
|
|
Construction contracts in progress, assets |
4751.600 |
6108.100 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
739.700
|
415.200 |
2033.533 |
|
|
Sundry Debtors |
10331.500
|
6811.400 |
6151.285 |
|
|
Cash & Bank Balances |
2272.200
|
7360.600 |
5980.600 |
|
|
Other Current Assets |
388.700
|
73.800 |
6737.436 |
|
|
Loans & Advances |
6527.300
|
3875.500 |
3285.710 |
|
Total
Current Assets |
20259.400
|
18536.500 |
24188.564 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2705.200
|
2249.300 |
12031.574 |
|
|
Other Current Liabilities |
1656.800
|
1637.000 |
10119.320 |
|
|
Provisions |
1921.400
|
1274.000 |
1094.221 |
|
Total
Current Liabilities |
6283.400
|
5160.300 |
23245.115 |
|
|
Net Current Assets |
13976.000
|
13376.200 |
943.449 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
TOTAL |
23538.800 |
23464.800 |
4964.956 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
18671.300 |
15742.000 |
20427.251 |
|
|
|
Other Income |
601.500 |
471.800 |
401.192 |
|
|
|
TOTAL
(A) |
19272.800 |
16213.800 |
20828.443 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material cost and erection services |
10392.900 |
8142.400 |
|
|
|
|
Changes in inventories of finished goods and
stock in trade |
(15.100) |
(3.500) |
|
|
|
|
Employee benefit expense |
3600.900 |
2726.900 |
17926.972 |
|
|
|
Transfer from revaluation reserve |
(1.500) |
(1.500) |
|
|
|
|
Other expenses |
2946.800 |
2025.000 |
|
|
|
|
TOTAL (B) |
16924.000 |
12889.300 |
17926.972 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2348.800 |
3324.500 |
2901.471 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
6.500 |
6.800 |
1.244 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2342.300 |
3317.700 |
2900.227 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
422.900 |
410.200 |
417.124 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1919.400 |
2907.500 |
2483.103 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
241.900 |
1218.500 |
810.597 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1677.500 |
1689.000 |
1672.506 |
|
|
|
|
|
|
|
|
|
|
Adjustment on account of amalgamation & treatment of derivatives |
37.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3257.500 |
2513.800 |
1792.645 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
167.800 |
168.900 |
167.251 |
|
|
|
Proposed Dividend |
672.300 |
670.200 |
670.242 |
|
|
|
Corporate dividend tax |
109.100 |
106.200 |
113.908 |
|
|
|
Earlier year’s provision no longer
required |
(53.100) |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
4076.100 |
3257.500 |
2513.750 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
4880.800 |
2701.600 |
4505.481 |
|
|
|
Deemed exports |
192.300 |
208.400 |
269.666 |
|
|
|
Goods/services supplied/rendered locally against foreign exchange remittance |
3504.300 |
330.100 |
635.408 |
|
|
|
Erection and other services |
737.700 |
951.800 |
1353.591 |
|
|
|
Global sourcing services |
17.900 |
3.600 |
29.575 |
|
|
|
Service income |
78.700 |
19.600 |
37.327 |
|
|
TOTAL EARNINGS |
9411.700 |
4215.100 |
6831.048 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2276.200 |
2010.300 |
3388.522 |
|
|
|
Components & maintenance spare parts |
180.500 |
833.500 |
979.677 |
|
|
|
Capital Goods |
177.900 |
37.800 |
751.359 |
|
|
|
Project items |
1896.700 |
223.400 |
408.090 |
|
|
TOTAL IMPORTS |
4531.300 |
3105.000 |
5527.648 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.95 |
25.20 |
24.99 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net sales |
4413.600 |
7416.600 |
4893.900 |
|
Total expenditure |
4287.700 |
6784.100 |
5240.700 |
|
PBDIT |
125.900 |
632.500 |
(346.800) |
|
Other income |
193.300 |
305.400 |
263.600 |
|
Operating profit |
319.200 |
937.900 |
(83.200) |
|
Interest |
9.100 |
0.600 |
4.100 |
|
Exceptional items |
0.000 |
0.000 |
0.000 |
|
PBDT |
310.100 |
937.300 |
(87.400) |
|
Depreciation |
119.500 |
122.900 |
132.200 |
|
Profit before tax |
190.600 |
814.400 |
(219.600) |
|
Provision and contingencies |
61.800 |
268.800 |
(73.700) |
|
Profit after tax |
0.000 |
0.000 |
0.000 |
|
Extraordinary items |
128.800 |
545.600 |
(145.900) |
|
Prior period expenses |
0.000 |
0.000 |
0.000 |
|
Other adjustment |
0.000 |
0.000 |
0.000 |
|
Net profit |
0.000 |
0.000 |
0.000 |
|
|
128.800 |
545.600 |
(145.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
8.70
|
10.42 |
11.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.28
|
18.47 |
12.16 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.00
|
12.17 |
10.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.50 |
0.50 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.22
|
3.59 |
1.04 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
No |
|
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 |
No |
|
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 |
CORPORATE
RESTRUCTURINGS
MERGER OF ALSTOM
HOLDINGS (INDIA) LIMITED IN TO THE COMPANY:
During the year, the Hon’ble High Courts of Delhi and Bombay have sanctioned the scheme of amalgamation amongst ALSTOM Projects India Limited, ALSTOM Holdings (India) Limited (a group Company) and their respective shareholders on February 23, 2012 and 31 March 2012, respectively, under Sections 391 to 394 of the Companies Act, 1956, hence the merger between the two companies has been completed.
ALSTOM Holdings (India) Limited (the Amalgamating Company), was a public Company limited by shares incorporated under the Companies Act, 1956 on March 29, 1995 and having its registered office at New Delhi. The Amalgamating Company was a part of the ALSTOM group of companies and a wholly owned subsidiary of ALSTOM Holdings, France. The Amalgamating Company was registered with the Reserve Bank of India (the “RBI”) as a non-deposit taking Non-Banking Financial Company (“NBFC”) under Section 45-IA of the Reserve Bank of India Act, 1934, and was engaged in the business of making and holding investments in ALSTOM group companies.
The above amalgamation was carried out as a measure of group restructuring of the ALSTOM group in India. It will reduce the shareholding tiers and rationalize investments. Further, the amalgamation will make the entities administratively more efficient and reduce administrative and management costs and would benefit the entities, the employees, the shareholders and other third parties related to these entities.
The effect of the amalgamation has been given in the books of accounts of the Company for the year ended on 31 March 2012 with effect from the Appointed Date i.e. 01 April 2011.
DEMERGER OF BOILER
BUSINESS
ALSTOM Holdings had entered into a letter of binding intent with Shanghai Electric Group of China on 20 April 2011 to combine both partners’ activities in the boiler market for power plants. As intimated to the Company, ALSTOM Holdings and Shanghai Electric expect to set-up the joint Company once their agreements will be finalised and after the completion of the social and regulatory process.
In pursuance of the above, ALSTOM Holdings (the holding Company of the ALSTOM group of companies) had requested the Company to consider transfer of its boiler business to a newly incorporated wholly owned subsidiary through a scheme of demerger under Sections 391 to 394 of the Companies Act, 1956.
The Board of Directors of the Company in its meeting held on 25 October 2011 had considered the said request of ALSTOM Holdings and thereafter, subject to approval of the shareholders and creditors and the High Court(s), approved the demerger of the Boiler Business of the Company into a wholly owned subsidiary Company viz. ALSTOM Boilers India Limited (“ABIL”). On the basis of the valuation undertaken by an independent valuer, the Board had further granted its approval to the share swap ratio of 1:1, meaning that every shareholder of the Company holding 1 (one) fully paid-up equity shares of Rs.10 (Rupees ten) each in the Company as on the record date (as may be determined in terms of the Scheme of Demerger) shall, upon sanction of the Scheme of Demerger and upon its becoming effective, be entitled to receive 1 (one) fully paid-up equity shares of Rs.5 (Rupees five) each in ABIL.
During the year, the Company had initiated necessary actions to implement the aforesaid decision of the Board of Directors of the Company
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
OVERVIEW
The Indian economy has continuously recorded high growth rates and has become an attractive destination for investments. India’s economic growth is expected to remain robust in 2012 and 2013.
The Ministry of Power has set a goal – Mission 2012, ‘power for all’. A comprehensive blueprint for Power Sector development has been prepared encompassing an integrated strategy for the sector development with certain objectives namely (i) sufficient power to achieve GDP growth rate of 8%; (ii) reliable of power; (iii) quality power; (iv) optimum power cost; (v) commercial viability of power industry; and (vi) power for all. This aggressive strategy of the government will pave the way for the market players including the Company to increase its footprints in the power sector. Total demand for electricity in the country continues to rise and is outpacing increases in capacity.
One of the key objectives of Government of India in 2012-13 is to address supply bottlenecks in agriculture, energy and transport sectors – particularly in coal, power, national highways, railways and civil aviation.
The performance of the Indian economy created a buoyant market and through innovative policies of Indian Government, a lot of opportunities are likely to be created and world-class railway transport infrastructure will become a reality in the Country.
OPERATING RESULTS OF
THE COMPANY
Orders received during the year were worth Rs.27506.000 millions.
Major orders received during the year for hydro mechanical products was Tehri for Rs.6047.000 Millions, Tashiding for Rs.1080.000 millions, Dikchu for Rs.805.000 Millions and Khatima (retrofit) for Rs.752.000 millions and export orders of Itezhi Tezhi, Revin and Salamonde for Rs.1439.000 Millions, Rs.587.000 Millions and Rs.397.000 millions respectively. Further, the orders for heat recovery steam generators from Tuymenskaya (Russia) for Rs.1811.000 millions, for supply of Environmental Control Systems from NALCO Angul for Rs.441.000 millions, Rastriya Ispat Nigam, Vizag for Rs.374.000 millions. The Transport segment won contract for Train control Systems for Jaipur Metro for Rs.487.000 millions. In addition to the above, the company won the orders relating to the Tanjung Bin (Malaysia) project for auxiliaries and Environment control systems for Rs.1892.000 millions.
Sales at Rs.24121.000 millions reflect execution schedule of orders in hand.
FINANCE
The Company continues to focus on optimizing its working capital. Project reviews with a focus on cash flows have aided in maintaining a surplus cash position during the entire year. Effective deployment of surplus funds, coupled with further hardening of the interest rates in the economy gave the Company an interest income of Rs. 428.000 Millions in the year vis a vis Rs.387.000 Millions in the previous year despite a lower cash position.
The net cash position at the end of the year was Rs.2181.000 Millions after payment of Rs.774.000 Millions as dividend (including Corporate Dividend Tax) and capital expenditure of Rs.955.000 Millions. In addition, the Company has also given Inter Corporate Deposit amounting to Rs.2558.000 Millions at the end of the year.
A prudent and conservative hedging policy for significant exposures helped the Company tide over the year without any significant real Foreign Exchange fluctuation losses in a volatile foreign exchange market.
The Long Term Credit Rating of the Company for Fund Based and Non Fund Based limits is ICRAAA with negative outlook which means high degree of safety regarding timely servicing of financial obligations and such instruments carry very low credit risk. For short term the credit rating has been assigned as ICRA A1+ which means very strong degree of safety regarding timely payment of financial obligations and such instruments carry lowest credit risk.
OUTLOOK
India is the fifth largest producer of electricity preceded by Russia, Japan, US and China. India is ranked 150 in per capita terms. Annual per capita electricity consumption is 650-700 kWh in India, which is one fourth of the world’s average. Given the very low per capita consumption it is foreseen that the demand for electricity will continue to stay and grow further.
CONTINGENT LIABILITIES
(As on 31.03.2012)
a) Demand raised by sales tax and excise authorities levying sales tax / works contract tax / excise duty in cases of disputes regarding divisibility of contracts with the customers for supply and erection / installation of goods and other matters - Rs. 367.800 millions (previous year – Rs. 250.600 millions)
b) Various other claims not acknowledged as debts Rs. 1.500 millions (previous year – Rs. 1.300 millions).
Based on the favorable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a) and (b) above and hence no provision there against is considered necessary.
FIXED ASSETS
- Factory
buildings
- Other
buildings
- Plant
and machinery
- Furniture
and fixtures
- Motor
vehicles
WEBSITE DETAILS
PRESS RELEASE:
ALSTOM-BHARAT FORGE
JOINT VENTURE TO SUPPLY THREE TURBINE ISLANDS FOR COAL-FIRED POWER PLANTS IN
INDIA
12.02.2013
Alstom Bharat Forge Power Limited (ABFPL), the joint venture company between Alstom and Bharat Forge, has secured in India an order worth over €350 million (Rs. 22510.000 Millions). ABFPL will supply three units of 660 MW supercritical coal turbine islands to Nabinagar Power Generating Company Private Limited, a joint venture between NTPC and Bihar State Electricity Board in Nabinagar, located in the state of Bihar. Alstom’s share of the contract amounts to around €185 million.
ABFPL’s scope of work includes engineering, manufacturing, supply, erection and commissioning of three 660 MW supercritical units. This order is part of the NTPC bulk tender for the supply of eleven 660 MW turbine generator islands. This award follows the €250 million order won by ABFPL in April 2012 for the supply of two 660 MW supercritical units to NTPC Limited’s Solapur site in Maharashtra, India.
Alstom’s supercritical technology uses steam with very high temperatures and pressure, resulting in a much higher efficiency (above 40 per cent) than conventional sub-critical coal fired plants. This means that a supercritical unit burns much less coal, generating less emission per megawatt of power output. This meets India’s needs to increase electricity production for their development whilst limiting CO2 emissions.
“The Solapur and Nabinagar orders confirm our commitment to further expand on the local steam market in India. Thanks to its strong expertise, technology, product portfolio, Alstom, together with its JV partner Bharat Forge, is well positioned to address the power requirements of the fast growing country,” commented, Andreas Lusch, Senior Vice President of Alstom’s Steam business.
About Alstom in India
Alstom is a global leader in power generation, power
transmission and rail infrastructure. Present in India since 1911, Alstom has
strong capabilities in engineering, manufacturing, project management and
supply of products and solutions for infrastructure. Alstom has four R and D
centres in India: Transport in Bengaluru, Hydro Global Technology Centre in
Vadodara and Grid R and D centre in Hosur and Padappai. It has two engineering
centres for Power in Noida and Kolkata and eleven manufacturing units dedicated
to: Power - Hydro in Vadodara, Boilers in Durgapur, auxiliary components and
air-pre heaters in Shahabad, Steam turbines in Mundra (upcoming), Transport at
Coimbatore and Sri City and Grid in Padappai, Pallavaram, Hosur, Vadodara and
Naini.
About Alstom-Bharat Forge Power
Alstom Bharat Forge Power Limited is a joint venture between Alstom and Bharat Forge Limited, created to participate in the Indian market of turbines islands (steam turbines and generators, heat exchangers and all associated equipment). Alstom has a majority stake in this joint venture. This JV company has set the cornerstone of its new manufacturing facility in India. The main orders for machine tools for this manufacturing facility have already been placed and the construction is on-going. The JV manufacture 300-800MW subcritical and supercritical equipment with an annual capacity of 5000 MW.
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 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.54.44 |
|
|
1 |
Rs.81.33 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
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 |
|
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.