MIRA
INFORM REPORT
|
Report Date : |
07.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
TD POWER SYSTEMS LIMITED |
|
|
|
|
Registered
Office : |
No. 27, 28 and 29, KIADB Industrial Area, Dabaspet, Nelamangala
Taluka, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
16.04.1999 |
|
|
|
|
Com. Reg. No.: |
08-025071 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 332.376 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31103KA1999PTC025071 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of A.C. Generators. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 18450000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having a fine track record. There appears dip in profitability of the company during the financial
year 2013. However, the ratings reflect TDPS’s strong position in the
low-capacity-generator, large net worth, low gearing and strong debt
protection metrics. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered for 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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’s current
account deficit or CAD in April-June widened to 4.9 % of gross domestic product.
High imports of gold and oil led to a worsening of the trade deficit, resulting
in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in
the corresponding quarter of the previous financial year. The government aims
to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2
billion in 2012/13.
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new
government will present the fiscal Budget.
The Supreme Court
has barred clinical trials for new drugs till a monitoring mechanism is put in
place to protect the lives of people on which the drugs are tested.
Mumbai has been named
the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top
spot for the world’s most honest city while Lisbon, the capital of Portugal,
proved to be the least honest. The survey put hundreds of people to test
in four continents to find out just how honest they were by dropping wallets
and seeing how many would be returned.
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million
Estimated average spending by companies across the globe including India, on
social media this year, according to a global study by information technology
major Tata Consultancy Services. This will rise to $ 24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali expenditure by 40 % and
on average spend nearly 25 % of their monthly salary on Diwali, according to a
survey by Assochem.
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT
or tourism that are dependent on Visa clearances.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A+ (Long Term Rating) |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
08.05.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
08.05.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
Management non co-operative
LOCATIONS
|
Registered Office/ Plant/ Head Office : |
No. 27, 28 and 29, KIADB Industrial Area, Dabaspet, Nelamangala
Taluka, Bangalore – 562 111, Karnataka, India |
|
Tel. No.: |
91-80-22995700 / 66337700 / 27734432 |
|
Fax No.: |
91-80-22995718 |
|
E-Mail : |
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|
Website : |
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Tel. No.: |
81-3-5783-5380 |
|
Fax No.: |
81-3-5783-5381 |
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|
|
|
City Office
: |
“RMJ Mandoth Towers” #37, 7th Cross, Vasanthnagar, Bangalore – 560052, Karnataka, India |
|
Tel. No.: |
91-80-22017800 |
|
Fax No.: |
91-80-22017850 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Mohib N Khericha |
|
Designation : |
Chairman |
|
Address : |
711 – Mahakant, Opposite Hospital Ashram Road, Ahmedabad – 380006,
Gujarat, India |
|
Date of Birth/Age : |
04.08.1952 |
|
Date of Appointment : |
22.02.2000 |
|
|
|
|
Name : |
Mr. Hithoshi Matsuo |
|
Designation : |
Whole Time Director |
|
Address : |
5-1-20-306, Miniamidai, |
|
Date of Birth/Age : |
04.02.2004 |
|
Qualification : |
M.E. |
|
Date of Appointment : |
01.07.2002 |
|
|
|
|
Name : |
Mr. Nikhil Kumar |
|
Designation : |
Managing Director |
|
Address : |
21, 17th Cross Malleswaram, |
|
Date of Birth/Age : |
17.08.1967 |
|
Qualification : |
B.E. |
|
Date of Appointment : |
01.10.2001 |
|
|
|
|
Name : |
Mr. Tadao Kuwashima |
|
Designation : |
Director – Technical |
|
Address : |
G 12/1, |
|
Date of Birth/Age : |
21.05.1947 |
|
Qualification : |
B.E. |
|
Date of Appointment : |
01.02.2002 |
|
|
|
|
Name : |
Mr. Salil Baldev Taneja |
|
Designation : |
Director (up to May 17, 2013) |
|
|
|
|
Name : |
Mrs. Nandita Lakshmanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Arjun Kalyanpur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nitin Bagamane |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. N. Srivatsa |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. K. G. Prabhakar |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6985524 |
21.02 |
|
|
6026433 |
18.13 |
|
|
3382175 |
10.18 |
|
|
3382175 |
10.18 |
|
|
16394132 |
49.32 |
|
|
|
|
|
|
4235254 |
12.74 |
|
|
4235254 |
12.74 |
|
Total shareholding of Promoter and Promoter Group (A) |
20629386 |
62.07 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1552672 |
4.67 |
|
|
6708853 |
20.18 |
|
|
8261525 |
24.86 |
|
|
|
|
|
|
1758785 |
5.29 |
|
|
|
|
|
|
229908 |
0.69 |
|
|
881541 |
2.65 |
|
|
1476443 |
4.44 |
|
|
20131 |
0.06 |
|
|
23386 |
0.07 |
|
|
556656 |
1.67 |
|
|
876270 |
2.64 |
|
|
4346677 |
13.08 |
|
Total Public shareholding (B) |
12608202 |
37.93 |
|
Total (A)+(B) |
33237588 |
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) |
33237588 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Any OtherBUSINESS DETAILS
|
Line of Business : |
Manufacturer of A.C. Generators. |
||||
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||||
|
Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Generators |
Nos. |
360 |
341 |
|
Motors |
Nos. |
60 |
1 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Bank of Baroda, Corporate Financial Services Branch, No.72, 1st Floor, Nitesh Lexington, Avenue, Brigade Road, Bangalore – 560025, Karnataka, India ·
Standard Chartered Bank, Raheja Towers, 26/27, M
G Road, Bangalore-560001, Karnataka, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
B.K. Ramadhyani and Company Chartered Accountants |
|
Address : |
4 – B, Chitrapura Bhavan, No. 68, 8th Main, 15th
Cross, Malleswaran, |
|
|
|
|
Subsidiaries : |
DF Power Systems Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33237588 |
Equity Shares |
Rs.10/- each |
Rs. 332.376
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
332.376 |
332.376 |
243.704 |
|
(b) Reserves & Surplus |
4281.501 |
3999.471 |
1531.436 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
4613.877 |
4331.847 |
1775.140 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.197 |
238.993 |
|
(b) Deferred tax liabilities (Net) |
141.242 |
87.759 |
72.912 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
18.706 |
29.264 |
26.844 |
|
Total Non-current Liabilities (3) |
159.948 |
117.220 |
338.749 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
269.932 |
342.633 |
533.784 |
|
(b) Trade payables |
861.118 |
929.961 |
896.520 |
|
(c) Other current
liabilities |
801.243 |
1013.237 |
974.868 |
|
(d) Short-term provisions |
98.656 |
104.453 |
82.871 |
|
Total Current Liabilities (4) |
2030.949 |
2390.284 |
2488.043 |
|
|
|
|
|
|
TOTAL |
6804.774 |
6839.351 |
4601.932 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1984.061 |
1302.342 |
1119.749 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
161.750 |
126.422 |
20.437 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
209.689 |
204.125 |
204.125 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
406.870 |
451.663 |
98.389 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
2762.370 |
2084.552 |
1442.700 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
530.461 |
829.533 |
777.166 |
|
(c) Trade receivables |
1289.248 |
1431.452 |
1194.725 |
|
(d) Cash and cash
equivalents |
1814.831 |
2025.586 |
909.508 |
|
(e) Short-term loans and
advances |
407.864 |
468.228 |
277.833 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
4042.404 |
4754.799 |
3159.232 |
|
|
|
|
|
|
TOTAL |
6804.774 |
6839.351 |
4601.932 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4237.981 |
6252.120 |
4878.801 |
|
|
|
Other Income |
258.365 |
156.821 |
69.431 |
|
|
|
TOTAL (A) |
4496.346 |
6408.941 |
4948.232 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
1748.420 |
2757.803 |
2578.722 |
|
|
|
Purchase for Project Business |
953.746 |
1779.563 |
1146.908 |
|
|
|
Employee benefits expenses |
417.482 |
469.190 |
368.258 |
|
|
|
Other Expenses |
388.309 |
536.089 |
386.619 |
|
|
|
Changes in inventories of Finished goods, work in progress and stock
in trade |
293.236 |
(27.628) |
(304.823) |
|
|
|
TOTAL (B) |
3801.193 |
5515.017 |
4175.684 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
695.153 |
893.924 |
772.548 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
34.149 |
65.679 |
66.866 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
661.004 |
828.245 |
705.682 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
122.538 |
89.987 |
78.911 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
538.466 |
738.258 |
626.771 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
181.722 |
240.077 |
210.367 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
356.744 |
498.181 |
416.404 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1142.359 |
1495.366 |
471.723 |
|
|
|
Other Earnings |
0.094 |
3.363 |
0. 270 |
|
|
TOTAL EARNINGS |
1142.453 |
1498.729 |
741.723 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
229.636 |
495.070 |
376.590 |
|
|
|
Capital Goods |
101.420 |
74.316 |
10.559 |
|
|
TOTAL IMPORTS |
331.056 |
569.386 |
387.149 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
10.73 |
16.94 |
37.55 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
7.93
|
7.77 |
8.42 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.71
|
11.81 |
12.85 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.37
|
11.34 |
14.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.17 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.06
|
0.08 |
0.44 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.99
|
1.99 |
1.27 |
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 |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
VIEW INDEX OF
CHARGES
|
S. No |
Charge ID |
Date of Charge Creation /Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN |
|
1 |
10353809 |
19/04/2012 |
200,000,000.00 |
Standard Chartered Bank |
Branch Office: Raheja Towers, 26 / 27, M.
G. Road, Bangalore, Karnataka - 560001, India |
B38974481 |
|
2 |
10070492 |
17/10/2008 * |
113,700,000.00 |
Bank Of Baroda |
Corporate Financial Services Branch, H J S
Chambe |
A49987449 |
|
3 |
90192621 |
16/02/2012 * |
2,130,000,000.00 |
Bank Of Baroda |
Corporate Financial Services Branch,
No.72, 1st Floor, Nitesh Lexington Avenue, Brigade Road,
Bangalore, Karnataka - 560025, India |
B34190702 |
|
4 |
90192574 |
05/07/2002 |
10,000,000.00 |
The Shamrad Vithal Co-Operative Bank
Limited |
Malleswaram Branch, 5th Cross; Malleswaram,
Bangalore, Karnataka - 560003, India |
- |
|
5 |
90198023 |
25/01/2002 * |
30,000,000.00 |
M/S Karnataka State Financial Corporation |
No. 1/1; Thimmaiah Road, Bangalore,
Karnataka, India |
- |
|
* Date of charge modification |
||||||
OPERATIONS
The highlights of the Company’s performance for the year are as under:
·
Revenue from operations and other income was lower
by 30% at Rs 4496.346 Millions (Rs. 6408.941 Millions)
·
273 (308) Generators of various ranges up to 52 MW were
manufactured.
·
Earnings Before interest, tax, depreciation and
amortization (EBITDA) lower by 22.71% at Rs. 695.154 Millions (Rs. 893.925
Millions)
·
Profit after tax decreased by 29 % to Rs. 356.744
Millions (Rs. 498.182 Millions)
The negative
macroeconomic environment including slowdown of the economy, liquidity
contraction, rising interest rates and the resulting slowdown in investment,
resulted in lower order book and revenues.
Expected
improvements in markets during the last quarter January to March 2013 were
belied. It is expected that the capex cycle will revive if there is a cut in
the interest rates by the Reserve Bank of India. The pending orders as of March
2013 is about Rs. 3150.000 Millions which is expected to improve significantly
on the back of both domestic and overseas orders resulting from successful
qualification as vendors to large overseas electrical equipment manufacturers
which will enable the company to sustain its top line and maintain margins in
the financial year 2013-14.
Manufacture of new generation generators
During the year,
the Company, has commenced construction of a manufacturing facility in close
proximity to the existing facility, which will manufacture new generation
generators with a capacity of 54 to 200 MW. The manufacturing facility is
expected to be completed during December 2013 and is expected to be
commissioned in the last quarter of this financial year.
SUBSIDIARIES
During the year
ended March 31, 2013, the performance of the Company’s wholly owned subsidiary
DF Power Systems Private Limited was impacted due to the weakness in order
inflow resulting in lower revenues and profits for the year ended March 31,
2013. The Gross Profit for the year is Rs. 139.325 Millions as against Rs.
260.911 Millions in the previous year and the net profit is Rs. 92.242 Millions
as compared to Rs.173.231 Millions for the previous year.
The directors of
the subsidiary company have recommended a dividend of Rs 3.00 per share for the
financial year ended March 31, 2013 amounting to Rs.18.000 Millions subject to
approval of the shareholders at its Annual General meeting.
US SUBSIDIARY
A wholly owned
subsidiary in the name TD Power Systems (USA) Inc. has been incorporated on
February 20, 2013 as a Delaware corporation in the United States of America
(USA).The operations of the company shall be located at Richfield, OHIO which
is strategically located to the major industrial areas as well as the highways
network.
JAPAN SUBSIDIARY
A wholly owned
subsidiary in the name TD Power Systems Japan Limited has been incorporated on
March 19, 2013 in Tokyo, Japan.
Both the US and Japan subsidiaries are yet to commence business
operations.
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY’S BUSINESS
They are one of the
leading manufacturers of AC Generators with the capability to manufacture
generators with output capacities ranging from 1 MW – 55 MW which is being
enhanced to 200 MW. They focus on manufacturing engineered -to-order generators
for their customers based across the world and have a diverse product range
which includes, steam turbine generators, horizontal and vertical hydro
generators, diesel engine generators, wind turbine generators, gas engine
generators, gas turbine generators, high voltage motors and generators for Geo
Thermal and Solar thermal applications. The company’s customer base primarily
comprises companies operating in the industrial sector and includes cement,
steel, paper, chemical, metals, sugar co-generation, bio-mass power plants, hydro-electric
power plants and Independent Power Plant companies. They cater to both
conventional and renewable fuel based power plants.
The company’s
in-house design and development team focuses on absorption of technology
available from their technology partners and evolving optimal solutions to meet
the varied needs of the customers. Over the years, the company honed the
capability to design products to meet exacting performance standards. The
company is committed to provide high quality products that meet the
expectations of both Indian and international customers
Their technology
relationships with the leading power equipment manufacturers enables them to
design and manufacture a complete range of generators required to cater to the
renewable fuel based segment of the power generation market.
The company has a
world class manufacturing facility consisting of two manufacturing units
located in Dabaspet,
Industrial Area on
the outskirts of Bangalore equipped with advanced machinery and equipment. They
have developed a reliable and quality based subcontracting and vendor network
supporting their operations. The company’s strong project management abilities
enable it to control costs and achieve efficient operations.
In addition to
manufacturing AC Generators their Company also executes Turbine Generator
island projects for steam turbine power plants with output capacity up to 55 MW
using a Japanese turbine combined with their generator. The scope of work of
the TG island projects consists of design services, procurement and supply of
equipment, assembly, installation and commissioning.
Their Subsidiary,
DF Power Systems Private Limited, is in the business of Engineering,
Procurement and Construction, executing Boiler-Turbine Generator island
projects and the balance of plant portion for steam turbine power plants with
output capacity up to 150 MW. The scope of work for the EPC Business comprises
of design services, procurement and supply of equipments, assembly and
installation and commissioning.
In line with their
overseas market strategy, two overseas subsidiaries have been incorporated in
Fiscal 2013 – one in the USA and the other in Japan, to establish presence and
grow in the American, South Asian and South East Asian markets. This will also
enable direct interface with existing and potential customers and OEM’s which
is very critical to marketing efforts in these markets.
OUTLOOK
From nearly
double-digit growth before the global recession India’s economic growth has
slumped to around 5% during the last fiscal. Sliding Rupee, high interest
costs, low corporate investments, high inflation and high fiscal and trade
deficits continue in this fiscal which has forced a dismal growth forecast for
the fiscal 2014 going forward. Measures are needed by the government to
kick-start the investment cycle growth. There is no visibility of a sustained
Global recovery and Eurozone economic sluggishness continues unabated affecting
India’s economic growth.
A failing economy,
low industrial growth, unfavourable investment climate have resulted in the
company’s domestic order book reflecting sluggishness as in Fiscal 2013. The
general weakness across all industries continues and all sectors are reflecting
a great deal of uncertainty in the market for capital expenditure and capital
goods. However, the company’s efforts in various new developments based on
technology partnerships with global leaders have enabled the company to enhance
product offerings leading to significant overseas orders. Exports will
contribute significantly as a growth driver for the company. The company’s
investments as planned for generators below 15 megawatt out of the proceeds of
the initial public offer are complete. Investments for manufacture of 2 pole
generators- larger generators between 59 megawatt to 200 megawatt will be
completed in this fiscal -for which they have already received orders for
delivery in fiscal 2015. By ensuring timely investments in enhancing both its
product offerings and manufacturing facilities, the company is well prepared to
harness the emerging opportunities in the power sector in India and globally.
The pending orders as of March 2013 is about Rs.3150.000 Millions which is
expected to improve significantly on the back of both domestic and overseas
orders resulting from successful qualification as vendors to large overseas
electrical equipment manufacturers and will enable the company to sustain its
top line and maintain margins in the financial year 2013-14.
The yen
appreciation as well as the dismal economic conditions has resulted in lack of
orders in the project business and for the fiscal 2014 the contribution from
this business will be subdued.
The EPC business
too is facing weakness in order inflow due to gloomy economic scenario though the
order slack is not specific to the company alone. The weakness in order inflow
experienced in fiscal 2012 and in first 3 quarters of fiscal 2013 will have an
impact on the revenues in the fiscal 2014. The enquiries in the market are
largely for small captive power projects i.e. sub 50MW range and for waste to
energy projects which is divergent from traditional business of the company,
i.e., 50MW and above conventional thermal power projects in BTG space. However,
the initiatives taken in fiscal 2012 and fiscal 2013, including realigning the
business to dynamics of market place is expected to translate into sustaining
the operations in fiscal 2014 and eminently poise the company to take up surge
in opportunities when the economy revives. Competition is fierce both from
domestic players as well as overseas players especially from China. The
depreciation of the Rupee against the US dollar also adds challenge to them in
project costing as well as adversely affecting the market sentiment for
imported power equipment which they offer. During the last quarter of the
fiscal 2013, two significant EPC contracts were bagged totalling to about
Rs.3400.000 Millions for captive power plants to be set up for reputed
corporates in South and North East of India. A strategically important order
from a private sector steel giant for waste gas fired package boilers valued at
about Rs.90.000 Millions was also received. The EPC order book as on March 31,
2013 stands at Rs.3613.100 Millions. While this EPC order inflow will translate
into ability to sustain operations and performance in fiscal 2014, it is
expected to revive growth and performance in fiscal 2015. In order to improve
the EPC order book, opportunities are being pursued in waste to energy sector
in which breakthrough is expected during this fiscal. In the current fiscal the
execution of the 27 MW EPC project for large cement group is expected to
commence.
In view of the above, the company is hopeful of sustaining the operating
performance this fiscal, as in the fiscal 2013.
OPERATIONS PERFORMANCE
A challenging
economic environment marked by slowdown of the economy, liquidity contraction,
rising interest rates and the resulting slowdown in investment have resulted in
lower order book, revenues and profits. However, the operating and financial
performance has been satisfactory and reassuring considering the severity of
the economic and market conditions. The domestic market suffered unprecedented
shrinkage – nearly 50% over fiscal 2012 thus enlarging competition by manifolds.
The redeeming feature, in all the gloom, was that the company’s efforts in
overseas markets have yielded significant results and exports contributed
almost 31% of the manufacturing revenues during the fiscal. Their global
footprint now extends to 60 countries which will give them a wide reference
list in their overseas market foray.
The yen
appreciation as well as the dismal economic conditions has resulted in
significantly lower revenues from this business during this fiscal 2013.
The EPC business
too faced weakness in order inflow due to gloomy economic scenario and
unprecedented market shrinkage on the back of high interest rates, policy
hurdles and infrastructure bottle necks. The weakness in order inflow
experienced in fiscal 2012 impacted the revenues in the fiscal 2013.
In view of the
above, the Revenue from operations and other income was lower by 30% at
Rs.4496.346 Millions (Rs. 6408.941 Millions), the Earnings Before interest,
tax, depreciation and amortization lower by 22.71% at Rs. 695.154 Millions (Rs.
893.925 Millions) and the Profit after tax decreased by 29% to Rs. 356.744
Millions (Rs. 498.182 Millions)
FINANCIAL REVIEW
The financial
statements have been prepared in accordance with the requirements of the
Companies Act, 1956 and Generally Accepted Accounting Principles (GAAP). There
are no material departures in adoption of the prescribed accounting standards.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent liabilities as the date of
the financial statements and the reported amounts of revenue and expenses
during the reporting period. The estimates and judgments relating to the
financial statements have been made on a reasonable basis, so that the
financial statements reflect the form and substance of transactions in a true
and fair manner, and reasonably represent the Company’s state of affairs and
profit for the year.
FIXED ASSETS
· Free Hold Land
· Lease Hold Land
· Buildings
· Plant and Machinery
· Office Equipments
· Furniture and Fixtures
· Computers
· Communication Equipments
· Motor Vehicles
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND PERIOD ENDED JUNE 30, 2013
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
|
|
|
30.06.2013 (Unaudited) |
|
1. |
Income from
Operations |
|
|
|
Net Sales |
650.358 |
|
|
Other Operating Income |
0.000 |
|
|
Net Sales/Income
from Operations |
650.358 |
|
|
|
|
|
2. |
Expenditure |
|
|
|
Cost of Material Consumed
|
442.228 |
|
|
Purchase for Project Business |
48.676 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
(43.584) |
|
|
Employee Benefits Expenses |
118.606 |
|
|
Depreciation and Amortization Expenses |
33.984 |
|
|
Other Expenses |
85.042 |
|
|
f) Total |
684.952 |
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
(34.594) |
|
|
|
|
|
4. |
Other Income |
137.329 |
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
102.735 |
|
|
|
|
|
6. |
Interest |
7.066 |
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
95.669 |
|
|
|
|
|
8. |
Exceptional Items |
-- |
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
95.669 |
|
|
|
|
|
10. |
Tax Expense |
34.560 |
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
61.109 |
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
61.109 |
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
4324.609 |
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
a) Basic and diluted EPS before extraordinary items |
1.84 |
|
|
b) Basic and diluted EPS after extraordinary items |
1.84 |
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
-Number of Shares |
12608202 |
|
|
- Percentage of Shareholding |
37.93 |
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
- Number of Shares |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
- Number of Shares |
20629386 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
62.07 |
|
Particulars
|
As on 30.06.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES
1.
The said financial results have been subject to a
limited review by the statutory auditors in terms of Clause 41 of the listing
agreement .There are no qualifications in the limited review report issued by
the statutory auditors. The said financials results were reviewed by the Audit
Committee in it’s meeting held on August 5, 2103 and then approved by the Board
of Directors in its meeting held on August 5, 2013.
2.
Previous years/periods figures have been
re-grouped/rearranged wherever required in conformity with current period
presentation.
3.
The figures of the last quarter represent the
difference between the audited figures in respect of the full financial year
and published year to date figures up to the previous quarter.
4.
Statement of utilization of IPO proceeds :
|
Sl. No. |
Expenditure Items |
IPO Proceeds (Total estimated cost) (Rs.) |
Transfer to object No 6 (Refer note 1) (Rs. In Millions) |
Utilization as of 30.06.2013 (Rs. In Millions) |
**Balance to be utilized (Rs. In Millions) |
Remarks (Refer
note 2 below) |
|
|
Amount received from IPO |
|
|
|
|
|
|
1 |
Finance the expansion of our manufacturing plant in Dabaspet |
1027.360 |
-- |
1027.360 |
-- |
|
|
2 |
Construction of a project office in Bangalore City |
289.090 |
-- |
-- |
-- |
Rs. 2890.90 transferred to object No.06** |
|
3 |
Repayment of debt |
328.070 |
-- |
274.157 |
-- |
Balance Rs. 539.13 ## transferred to object No. 06*** |
|
4 |
Funding working capital requirements of our Company |
400.000 |
-- |
-- |
-- |
Rs. 4000.00 Transferred to object No. 06** |
|
5 |
General corporate purposes |
225.480 |
-- |
139.082 |
-- |
Balance Rs. 863.98 ## transferred to object No. 06*** |
|
6 |
Finance our manufacturing facility for 2 pole generators ranging from 54MW to 200MW |
-- |
829.401 |
321.659 |
507.742 |
|
|
|
Total |
2270.000 |
829.401 |
1762.268 |
507.742 |
|
The balance in the IPO proceeds have been in the interim invested in
term deposit with Nationalized Bank
Note 1 ** are the amounts completely unutilized as on June 30, 2012
Note 1 *** are the amounts utilized for stated objects as on June 30, 2012
Note 1 ## are the amounts representing savings from stated objects transferred
to 6 above vide note 2 below.
Note 2 In terms of the
approval of the shareholders’ at the Annual general meeting held on July 12,
2012, the IPO proceeds relating to following objects of issue may be utilized
for objects other than the said objects, including setting up of a new
manufacturing facility for manufacture of advanced AC generators-2pole. The
company has commenced deployment of the funds accordingly in setting up a
manufacturing facility near the current facility and shall report utilization
of funds thereof periodically.
UNAUDITED SEGMENT
WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
|
|
30.06.2013 |
||
|
|
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
Manufacturing |
584.549 |
|
|
|
Project Business |
65.955 |
|
|
|
Engineering,
Procurement and Construction (EPC) |
-- |
|
|
|
|
|
|
|
|
Total |
650.504 |
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
0.147 |
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
650.357 |
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
Manufacturing |
74.246 |
|
|
|
Project Business |
59.038 |
|
|
|
Engineering,
Procurement and Construction (EPC) |
-- |
|
|
|
|
|
|
|
|
Total |
133.284 |
|
|
|
|
|
|
|
|
Less :Interest |
7.066 |
|
|
|
Less : Depreciation |
33.984 |
|
|
|
Less : Un-allocable Income Net |
(3.435) |
|
|
|
|
|
|
|
|
Total Profit Before
Tax |
95.669 |
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
Manufacturing |
3096.849 |
|
|
|
Project Business |
(22.706) |
|
|
|
Engineering,
Procurement and Construction (EPC) |
-- |
|
|
|
Un-allocable Segment |
1600.842 |
|
|
|
|
|
|
|
|
Total |
4674.985 |
Note:- In Accordance
with AS 17 - “Segment reporting”. The Company on Standalone basis has two
reportable segments i.e. Manufacturing and Projects business. However, the consolidated
segment reporting contains one more reportable segment relating to the
Engineering, Procurement and Construction (EPC) of power plants undertaken by
their wholly owned subsidiary DF Power Systems Private Limited.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.92 |
|
UK Pound |
1 |
Rs. 99.59 |
|
Euro |
1 |
Rs. 83.63 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
52 |
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.