|
Report Date : |
30.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
TATA ADVANCED SYSTEMS LIMITED (w.e.f.18.02.2008) |
|
|
|
|
Formerly Known
As : |
|
|
|
|
|
Registered
Office : |
Plot No. 21, 22 and 23, Pragathi Industrial Area, Kushaiguda, ECIL Post,
Hyderabad – 500062, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.09.2006 |
|
|
|
|
Com. Reg. No.: |
01-077939 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 4153.152
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U72900AP2006PLC077939 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT13406B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCT5245K |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturing of Helicopter Cabins and also providing
services for Defence and Security projects. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 13100000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Tata Sons and it is a well established and reputed
company having a satisfactory track record. There appear an accumulated losses recorded by the company during
2013. Directors are reported as experienced and respectable businessmen. However, rating takes into consideration the strong percentage and
long standing experience of the promoters and Brand name. Trade relations are reported as fair. Business is active. Payments are
reported to be slow but correct. The company can be considered normal 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 – June 30, 2012
|
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.
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
MANAGEMENT NON-COOPERATIVE [91-11-23341585 / 91-40-27131751]
LOCATIONS
|
Registered Office : |
Plot No. 21, 22 and 23, Pragathi Industrial Area, Kushaiguda, ECIL
Post, Hyderabad – 500062, Andhra Pradesh, India |
|
Tel. No.: |
91-40-27131751 |
|
Fax No.: |
91-40-27131754 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400001,
Maharashtra, India |
|
Tel. No.: |
91-40-66447400/ 66658282 |
|
|
|
|
Corporate
Office: |
Thapar House, Eastern Wing, Third Floor, 124 Janpath, New
Delhi – 110001, India |
|
Tel. No.: |
91-11-66222666/ 23341585 |
|
Fax No.: |
91-11-23241585 |
|
Email : |
|
|
|
|
|
Plant : |
Precision
Engineering Industries, Plot No.1/A in Sy No. 656, Aditya Nagar C/o APIIC,
SEZ for Aerospace and Adibatla Village, Ibrahimpathnam Mandal, District Ranga
Reddy – 501510, Andhra Pradesh, India |
DIRECTORS
AS ON 22.08.2013
|
Name : |
Mr. Ramadorai Subramanian |
|
Designation : |
Director |
|
Address : |
Flat No. 1, First Floor, Wyoming, Little Gibbs Road, Malabar Hill,
Mumbai - 400006, Maharashtra, India |
|
Date of Birth/Age : |
06.10.1944 |
|
Qualification : |
Bachelors degree
in Physics from Delhi University, a Bachelor of Engineering Degree in
Electronics and Telecommunications from the Indian Institute of Science,
Bangalore and a Masters Degree in Computer Science from the University of
California-UCLA (USA) in 1983, Ramadorai attended the school Sloan School of
Management’s highly acclaimed Senior Executive Development Program. |
|
Date of Appointment : |
13.11.2009 |
|
DIN No.: |
00000002 |
|
|
|
|
Name : |
Mr. Prakash Manjanath Telang |
|
Designation : |
Director |
|
Address : |
313, 13th Floor, Samudra Mahal, DRAB Road, Worli, Mumbai - 400018,
Maharashtra, India |
|
Date of Birth/Age : |
21.06.1947 |
|
Qualification : |
Mechanical
Engineer, did his MBA from IIM Ahmedabad and joined the Tata Group in 1972 through
the prestigious Tata Administrative Service (TAS) cadre |
|
Date of Appointment : |
16.09.2009 |
|
DIN No.: |
00012562 |
|
|
|
|
Name : |
Mr. Sukaran Singh |
|
Designation : |
Director |
|
Address : |
Flat No. 101, Gitanjali Gardens, 1st Floor, 68E Nepeansea
Road, Rungta Lane, Mumbai - 400006, Maharashtra, India |
|
Date of Birth/Age : |
14.05.1969 |
|
Qualification : |
MBA in Finance
and Marketing and MA Economics from University of Oxford in the UK, and his
BA Economics |
|
Date of Appointment : |
11.07.2007 |
|
DIN No.: |
01485745 |
KEY EXECUTIVES
|
Name : |
S R Venkatesan |
|
Designation : |
Secretary |
|
Address : |
Plot No.38, Out Colony, Sainkpuri, |
|
Date of Birth/Age : |
20.08.1957 |
|
Date of Appointment : |
07.10.2010 |
|
PAN No.: |
AMOPS6911J |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 22.08.2013
|
Names of Shareholders |
|
No. of Shares |
|
Tata Sons Limited, India |
|
415315194 |
|
Tata Sons Limited, India Jointly with K R Bhagat |
|
1 |
|
Tata Sons Limited, India Jointly with Sukaran Singh |
|
1 |
|
Tata Sons Limited, India Jointly with Masood Hussainy |
|
1 |
|
Tata Sons Limited, India Jointly with E N Kapadia |
|
1 |
|
Tata Sons Limited, India Jointly with A V S Prasad |
|
1 |
|
Tata Sons Limited, India Jointly with Praveen Kumar Chikkala |
|
1 |
|
|
|
|
|
Total |
|
415315200 |
AS ON 22.08.2013
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
|
|
Bodies
corporate |
100.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Helicopter Cabins and also providing
services for Defence and Security projects. |
||||
|
|
|
||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
· State Bank of India, M-47, Commercial Branch, Connaught Circus, New Delhi - 110001, India Kotak Mahindra Bank
Limited, 6-3-1109/ 1/ P202, 2nd Floor, Jewel Pavani Tower, Rajbhavan Road,
Somajiguda, Hyderabad - 500082, Andhra Pradesh, India Axis Bank Limited,
Credit Management Centre, 4/10, OPG House, Asaf Ali Road, New Delhi - 110002,
India |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M A Parikh and Company Chartered Accountants |
|
Address : |
Yusuf Building, 2nd Floor, 43, Mahatma Gandhi
Road, Fort, Mumbai – 400001, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAAFM1433H |
|
|
|
|
Holding company : |
Tata Sons Limited, India [U99999MH1917PLC000478] |
|
|
|
|
Subsidiary company
: |
· Nova Integrated Systems Limited [U74990MH2008PLC183426] Tara
Aerospace Systems Limited [U74990AP2008PLC077969] Tata
Lockheed Martin Aerostructures Limited [U29268AP2010PLC077940] Avana
Integrated Systems Limited [U72900MH2008PLC188713] TASL
Aerostructures Private Limited [U29119MH2008PTC187825] HELA Systems
Private Limited [U31909AP2004PTC042753] Aurora Integrated
Systems Private Limited [U74120UP2006PTC032566] |
|
|
|
|
Fellow Subsidiary
company : |
· Tata Business Support Services Limited [U64200AP1995PLC044060] Tata
Aig General Insurance Company Limited [U85110MH2000PLC128425] Tata
Teleservices Limited [U74899DL1995PLC066685] Tata
Advanced Materials Limited [U85110KA1989PLC013224] TC
Travel And Services Limited [U63040MH2008PLC187559] Tata Consultancy
Services Limited [L22210MH1995PLC084781] Tata Industries Limited [U44003MH1945PLC004403] |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
700,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 7000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
415,315,200 |
Equity Shares |
Rs. 10/- each |
Rs. 4153.152
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 |
4153.152 |
4153.152 |
3286.052 |
|
(b) Reserves & Surplus |
(872.508) |
(879.459) |
(639.919) |
|
(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) |
3280.644 |
3273.693 |
2646.133 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
15.100 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
27.841 |
15.576 |
6.577 |
|
Total Non-current
Liabilities (3) |
42.941 |
15.576 |
6.577 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
129.012 |
142.307 |
0.000 |
|
(b) Trade payables |
182.417 |
88.111 |
76.452 |
|
(c) Other current
liabilities |
112.079 |
22.153 |
56.581 |
|
(d) Short-term provisions |
24.418 |
0.772 |
1.296 |
|
Total Current Liabilities
(4) |
447.926 |
253.343 |
134.329 |
|
|
|
|
|
|
TOTAL |
3771.511 |
3542.612 |
2787.039 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
420.708 |
462.159 |
476.291 |
|
(ii) Intangible Assets |
11.633 |
16.211 |
2.250 |
|
(iii) Capital
work-in-progress |
0.000 |
25.841 |
48.767 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2576.346 |
2134.097 |
1915.891 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
63.551 |
421.586 |
59.922 |
|
(e) Other Non-current
assets |
0.154 |
0.135 |
27.600 |
|
Total Non-Current Assets |
3072.392 |
3060.029 |
2530.721 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
264.059 |
209.148 |
149.588 |
|
(c) Trade receivables |
123.930 |
124.166 |
1.743 |
|
(d) Cash and cash
equivalents |
102.566 |
60.892 |
4.658 |
|
(e) Short-term loans and
advances |
72.816 |
64.551 |
100.329 |
|
(f) Other current
assets |
135.748 |
23.826 |
0.000 |
|
Total Current Assets |
699.119 |
482.583 |
256.318 |
|
|
|
|
|
|
TOTAL |
3771.511 |
3542.612 |
2787.039 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
833.840 |
245.815 |
15.588 |
|
|
|
Other Income |
20.764 |
25.603 |
0.402 |
|
|
|
TOTAL (A) |
854.604 |
271.418 |
15.990 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
155.965 |
37.784 |
44.368 |
|
|
|
Purchases of stock-in-trade |
9.976 |
30.092 |
9.144 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
13.814 |
(102.444) |
(39.966) |
|
|
|
Employee benefit expense |
311.063 |
244.169 |
131.138 |
|
|
|
Other expenses |
250.524 |
208.096 |
163.814 |
|
|
|
TOTAL (B) |
741.342 |
417.697 |
308.498 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
113.262 |
(146.279) |
(292.508) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
19.752 |
10.293 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
93.510 |
(156.572) |
(292.508) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
86.559 |
82.968 |
41.619 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
6.951 |
(239.540) |
(334.127) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
6.951 |
(239.540) |
(334.127) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
(879.459) |
(639.919) |
(305.792) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(872.508) |
(879.459) |
(639.919) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
615.372 |
92.551 |
0.000 |
|
|
|
Professional and Consultation fees |
153.504 |
44.546 |
0.000 |
|
|
|
Other Earnings |
3.062 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
771.938 |
137.097 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
195.432 |
46.875 |
78.888 |
|
|
|
Capital Goods |
1.717 |
16.361 |
29.097 |
|
|
TOTAL IMPORTS |
197.149 |
63.236 |
107.985 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
0.02 |
(0.68) |
(3.09) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.81
|
(88.26)
|
(2089.60) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.83
|
(97.45)
|
(2143.49) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.58
|
(17.32)
|
(40.63) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
(0.07)
|
(0.13) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.04
|
0.04
|
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
1.90
|
1.91 |
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) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10376908 |
28/08/2012 |
150,000,000.00 |
STATE BANK OF INDIA |
M-47, COMMERCIAL BRANCH, CONNAUGHT CIRCUS, NEW DELHI - 110001, INDIA |
B58272212 |
|
2 |
10365999 |
27/06/2012 |
100,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
6-3-1109/1/P202, 2ND FLOOR, JEWEL PAVANI TOWER, RAJBHAVAN ROAD, SOMAJIGUDA, HYDERABAD - 500082, ANDHRA PRADESH, INDIA |
B43884816 |
|
3 |
10307269 |
26/08/2011 |
287,500,000.00 |
AXIS BANK LIMITED |
CREDIT MANAGEMENT CENTRE, 4/10, OPG HOUSE, ASAF ALI ROAD, NEW DELHI - 110002, INDIA |
B20999272 |
Note:
The registered office of the company has been shifted from 1st
Floor, Name Estates, 1 Gunrock Enclave, Secunderabad – 500009, Andhra Pradesh, India
to the present w.e.f. 28.02.2012
CORPORATE INFORMATION
Subject was
incorporated in the year 2006, with its main object to engage in and conduct
business of scientific, technical and research and development activities,
manufacturing, testing and experimenting equipment, components, etc, in the
field of Advanced Defence Technologies, Security Systems, Aerospace and
Aerostructures, among others. During the year it was engaged:
(i) In assembly and
supply of helicopter cabins at Aerospace and Precision Engineering Special
Economic Zone at Adibatla, Hyderabad and supply thereof to Sikorsky Aircraft
Corporation.
(ii) In sale of
defence equipment and systems.
In pursuance of
its business objectives the Company has entered into joint ventures (JVs) with
(i) Sikorsky
Aircraft Corporation - for manufacturing and assembly of cabin components,
parts and derivatives thereto, for delivery in the form of ship sets;
(ii) Lockheed
Martin Aeroframe Corporation - for manufacture and assembly of Aircraft
Structural articles;
(iii) AG
Technologies Holding Limited - for Homeland Security solutions
(iv) ELTA Systems
Limited - a subsidiary of Israel Aerospace Industries Limited for assembly,
manufacturing and supply of components used in products for defence supplies
and
The Company
remains invested with majority shareholding interest in these JVs as a part of
its business objectives.
Further, the
Company has formed wholly owned subsidiary company namely Nova Integrated
Systems Limited, which is engaged in the business of defence and aerostructure.
During the year
the Company acquired shareholding interest in Aurora Integrated Systems Private
Limited (AIS) which is focused in development and manufacture of Unmanned
Aerial Vehicles (UAVs), its subsystems and provides services related thereto.
AIS is a subsidiary by virtue of rights attached to the shares acquired by the
Company in accordance with the Share Subscription and Investor Rights Agreement
(SSIRA) governing the acquisition of such shares.
FINANCIAL RESULTS
During the year, the Company has recorded a net profit of Rs. 7.000 Millions a major financial milestone, against previous year’s loss of Rs. 239.500 Millions. Consolidated, the net loss is recorded at Rs. 449.000 Millions for the year as against a loss of Rs. 729.600 Millions recorded in the previous year. Among aerospace and aero structure initiatives, S 92 was the only unit in operation for full year which; has done 31 installs on fuselages of helicopters and 23 fuselages. Tara Aerospace Systems Limited (Tara) and Tata Lockheed Martin Aero structures Limited (TLMAL), where major investments have been made have commenced commercial operations during the year.
HIGHLIGHTS
TASL standalone
On a standalone basis, TASL has recorded a year-on-year (YoY) growth of 3.4x. Fuselage of S92 helicopters led the growth with a full year operation while D and S vertical with continued efforts on responding to RFP’s made deliveries during the year on the RFPs won. Technical services and training reflect capability build-up on aspects relevant to Aerospace and Aero Structure Business. Reporting an operating profit of Rs. 92.500 Millions 11.1% of revenues, the Company has recorded net profits of Rs. 7.000 Millions for the year.
OPERATIONS
Capability Build Up – D and S Vertical
Being a player in the Defence industry, the Company is focusing on the establishment of strategic partnerships and capability buildup.
In pursuance to the MoU signed with ITT Exelis (Exelis) in March 2013 for the manufacture of 3rd Generation Night Vision Devices (NVD) to address the Indian market, Exelis has obtained approval from US Govt. for full assembly and sub-assembly of the devices. The space for the assembly facility has been finalized at Noida and setup is planned in the current year. The sub assembly work is likely to get started in Aug 2013.
TASL is in the advanced stages of creating strategic partnership for Missile systems with the reputed Global OEMs and is in discussion for similar partnerships for Tactical Radios and Radars.
There is an ever increasing emphasis imposed by Government of India (GOI) on preference of indigenous design, development and manufacturing of defence equipment through public and private participation. Therefore, building indigenous capability in the core areas is expected to help the Company gain eligibility for participation in the future Defence programs. The Company targets to realize these capabilities through its own developed Technology Centre (Tech Centre) in addition to the strategic partnerships with Global OEMs. The engineering team at the Tech Centre is working on integration and interoperability, development of interfaces between disparate technologies, encryption and embedded systems, configuration of communication networks including synchronization and NMS functionalities among others. The capability demonstrator designed and fabricated by this team has helped the Company secure a major strategic Request for Proposal (RFP) on Mobile Communication Terminals (MCT) from Defence Research Development Organisation (DRDO), which will also be a precedence in securing similar business opportunities in future. The Company has been shortlisted for Integrated Platform Management System (IPMS) based on the capability demonstrated to Indian Navy.
Tech Centre team has supported the successful implementation in the development phase of Combat Management System (CMS) project awarded to Nova Integrated System Limited (NOVA - a wholly owned subsidiary of the Company) for MRSAM Missile systems with the designing, integration, testing and acceptance of initial systems order to Research Centre Imarat (RCI), DRDO. Tech Centre team has developed the Radio Frequency (RF) Planning Tool and Network Management System Tool as a capability built up and self-reliance which has also resulted in reducing the costs of development work incurred by the subsidiary company towards the project.
In order to build capability for developing Mini UAV for the Indian market, during the year the Company has invested in a UAV focused company named Aurora Integrated Systems Private Limited (AIS), which is developing Indigenous UAVs for a portfolio of products to address Indian Defence, Para-Military Forces and state Police organizations.
To cater to the need of the Ministry of Defence and Global OEMs, D and S unit has initiated the CMMI Level 3 Implementation during the year and is targeted for completion by the end of current financial year.
BUSINESS AND OUTLOOK
TASL D and S business vertical responded to RFPs worth Rs. 727.000 Millions during FY 2013 in addition to the RFPs worth Rs. 156.000 Millions carried forward from FY 2012, main customers being DRDO Labs, Northern and South Western Commands of Army, Eastern Air Command, Training Command and Maintenance Command and IAF. Projects are in the domain of Information and Communication Technology, Virtual Reality, Command and Control and Night Vision Devices. Out of these, RFPs worth INR 560.000 Millions have been deferred to FY 2014 on account of non-completion of technical and commercial evaluation process planned to be conducted by Defence customers during the year. RFPs worth Rs. 80.000 Millions were retracted for various reasons and as a result, D and S vertical has been able to realize revenue of Rs. 15.300 Millions in FY 2013. There is an order booking of Rs. 6.700 Millions from DRDO Labs as approved vendor for Missile parts and order worth Rs. 39.000 Millions under process for Revenue realization in FY2014. The Company targets revenue of Rs. 162.700 Millions in the current financial year from D and S vertical.
S - 92 ACTIVITIES
TASL has exceeded the target of 22 cabins for FY 2013 and has successfully delivered 23 cabins in the financial year. This was achieved by the determination and dedication of the team to focus on schedule, quality and consistency. It also completed the target of 31 installs in FY 2013 against the odds of uncertain installs kit deliveries by Sikorsky, pulling in 5 cabins to cover the previous gap in the month of February. The month of March was a month of celebration with TASL delivering the 25th cabin.
Production progressed as per plan and following significant achievements were accomplished
1. The monthly cabin production was ramped up to 3 in February from a 2 in the month of June and has been sustained
2. The TAKT time for every jig was brought down from 20 days to 7 days and has been stabilized at 7 days. This was done through dedicated focus on on-time delivery and lean techniques of Kaizens, Poka-yoke and Total Operational Performance (TOP).
3. Quality has been a key achievement with average DRs (discrepancies) per Cabin coming down to 20 per cabin for TASL created DRs by the end of the year. The team started the year with more than double the number of DRs today.
4. The number of crabs raised by Sikorsky during the buy off has decreased to less than 5 per cabin from a significant number of 72 at the beginning of the year.
5. The process six sigma value (calculated as actual defects vs. total opportunities for defects) was 4.8 for the cabins delivered at the end of the year a world class performance.
6. DR Turnaround time in Solumina (Sikorsky portal) was at average of 5 days in March 13, from 22.8 days in April 12.
7. The Supplier Health Assessment Audit was completed by an external auditor from United Technologies Corporation (UTC) and TASL has achieved the Gold level. The team is now reaching closer to its aim of UTC Supplier Gold.
8. The shop floor has implemented Visual Factory principles where nothing is hidden from view and progress on metrics of Safety, Quality, Throughput and Cost displayed across the shop floor
9. Financial Targets are in accordance with the approved budget and Annual Operating plan.
10. All procurement parts have been sourced and cost reduction has been achieved through the establishment of Long Term Agreements (LTAs) with suppliers and localization efforts.
11. TASL was audited by the FAA (Federal Aviation Administration), USA as a supplier for the S-92 program. The audit was completed with zero Non Conformances.
12. The Global transition team of TASL and Sikorsky received the Augusta Westland Fellowship Award by the American Helicopter Society International (AHA) for the most significant contribution to international vertical flight cooperation.
SUBSIDIARY COMPANIES
NOVA INTEGRATED SYSTEMS LIMITED
Nova Integrated System (100% subsidiary of TASL) won a bid against PSU competition to supply subsystems hardware with applicable spares for the System Integration Lab (SIL) to the DRDO, as part of the Medium Range Surface to Air Missile programme being undertaken by India. Towards this multi-year programme, Nova Integrated Systems Limited (Nova) during the year earned revenue of Rs. 42.400 Millions for sale of subsystem hardware of System Integration Lab (SIL) unit and revenue to the tune of Rs. 15.000 Millions from quality services provided to Israel Aerospace Industries Limited (IAI). Revenues of NOVA totaled Rs. 108.100 Millions for the year as against Rs. 66.700 Millions the year before. The company has reported a loss of Rs. 100.700 Millions for the year as against Rs. 299.800 Millions for the previous year.
During the year the company has completed assembly and supply of 70 Electro Optic Payloads to IAI, Israel’s largest defence company and has negotiated and received the purchase order for another 150 units of EO 250 H integration to be executed in FY 2014 and FY 2015.
As part of its Command Management System order from DRDO for the MRSAM missile, Nova successfully delivered the first unit to Research Centre Imarat (RCI), DRDO, Hyderabad after ratification of DRDO and IAI.
Business development
· Nova got an in-principle approval from Raytheon to build missile parts and subsystems in India for export. Detailed negotiations for the supply contract have started and are expected to be closed in by 3Q FY2014.
Nova received RFP for major Radar programs opened for private organizations and has planned to submit bid for the Surface Surveillance Radar program for Indian Navy which is expected to be closed by 2Q of FY2014
HELA SYSTEMS PRIVATE LIMITED
HELA Systems Private Limited (HELA) (74/26 JV with Elta Systems Limited in radars) has recorded revenues at Rs. 627.200 Millions for the year as against Rs. 681.700 Millions for FY 2012. The reduction of Rs. 54.500 Millions is due to lower sale of Dual Transmit Receive Module (DTRM). The Company has earned a profit after tax of Rs. 46.300 Millions as compared to Rs. 57.200 Millions for the previous year
The Company has successfully negotiated and signed a new contract on July 07, 2012 for 13,000 DTRM modules aggregating Rs 41.130 Mn USD.
AVANA INTEGRATED SYSTEMS LIMITED
Revenues from Avana Integrated Systems Limited (Avana) (51/49 JV with AGT in homeland security) reflect reduced volume of activities during the year. There has been downsizing in On-The-Job (OJT) business from 85 resources to 41 resources. While revenues for the year dropped, Avana successfully completed the integrated security system project for the Babrala chemical plant of Tata Chemicals. Avana has been in commercial discussions with Tata Steel for the last 2-3 years for implementing the integrated security system of the Jamshedpur plant of Tata Steel. Avana’s revenues totaled Rs. 366.000 Millions for FY 2013 against Rs. 885.400 Millions for the last year. The Profit for the year is Rs 20.800 Millions vis-a-vis Rs 115.800 Millions for the previous year.
During the year the company had successfully completed a unique Integrated Security Solutions (ISS) project for the Babrala plant of Tata Chemicals Limited (TCL).
The company had successfully completed three years of profitable operations. This is one of the prime qualification parameter for any government business.
TARA AEROSPACE SYSTEMS LIMITED
Tara Aerospace Systems Limited (Tara) (74/26 JV with Sikorsky), manufacturing detailed parts for aerostructures (and sells to the S-92 Assembly plant), began commercial production during the year. And have recorded revenues of Rs. 52.500 Millions for delivery of first cabin kit (partial though) during the last quarter of the year. The Company has incurred a loss of Rs 173.600 Millions during the financial year as compared to the previous year loss of Rs 108.800 Millions. The company had started commercial production during year and produced 8 cabin kits (partial). Tara was successful in manufacturing the in house parts during the year while there was a delay in receiving the composites and certain frames which were outsourced.
During the year the company had received four National Aerospace and Defence Contractors Accreditation Program (Nadcap) certifications for services as (i) Chemical Processing, (ii) Heat Treating, (iii) Non-Destructive Testing and (iv) Welding. Also the Company had received Achieving Competitive Excellence (ACE) Bronze Certificate from Sikorsky.
The company also received Foreign Investment Promotion Board (FIPB) approval to undertake Defence business in India.
TATA LOCKHEED MARTIN AEROSTRUCTURES LIMITED (TLMAL)
Tata Lockheed Martin Aerostructures Limited (TLMAL) (74/26 JV with Lockheed Martin) began commercial operations during the year, as per plan. Revenue at Rs. 421.000 Millions for supply of eight (8) ship sets (SS) of Centre Wing Box (CWB) and CWB tooling is recognized for the year as against no revenue the year before.
The Company has successfully implemented SAP - went live on SAP during the year.
AURORA INTEGRATED SYSTEMS PRIVATE LIMITED (AIS)
AIS have earned revenues of Rs. 3.400 Millions for the period from the date of acquisition (Oct 5, 2012) by TASL to March 31, 2013 the financial year end and has recorded a loss of Rs. 9.800 Millions for the period. The company is focussing on the development of UAV relevant to the Infantry tender to be floated by MoD in the near future.
TASL AEROSTRUCTURES PRIVATE LIMITED
The Company has not generated any revenue during the year and is on the look out for a suitable project.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
(a) Claims for refund of service tax |
0.095 |
1.866 |
|
(b) Corporate Guarantee for borrowings made by a
Subsidiary Company |
0.000 |
11.500 |
|
(c) Claims made against the company not acknowledged as
debt |
7.310 |
1.093 |
|
|
|
|
|
Total |
7.405 |
14.459 |
FIXED ASSETS:
· Land
Buildings
Office building
Plant and equipment
Other plant and equipment
Vehicles
Furniture and fixtures
Motor vehicles
Office equipment
Computer equipments
Other equipments
Leasehold improvements
Computer 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.62.39 |
|
|
1 |
Rs. 102.06 |
|
Euro |
1 |
Rs. 84.97 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
SDA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
47 |
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.