MIRA INFORM REPORT
|
Report Date : |
22.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
KILBURN ENGINEERING LIMITED |
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Registered
Office : |
4, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
07.09.1987 |
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Com. Reg. No.: |
21-042956 |
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Capital
Investment / Paid-up Capital : |
Rs.132.558
Millions |
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CIN No.: [Company Identification
No.] |
L24232WB1987PLC042956 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is in the business of process design, engineering,
manufacturing, project management, installation and commissioning of equipment
and systems for various process plants. |
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No. of Employees
: |
144 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (41) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3670000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. Company has incurred loss from its operation in 2013. However,
liquidity position of the company appears to be good. Rating also takes into consideration strong parentage of willamson
magor group and reputed client base. Trade relations reported to be fair. Business is active. Payment terms
are reported to be slow but correct. The company can be considered for business dealing 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Cash Credit: “BB+” |
|
Rating Explanation |
Inadequate credit quality and high credit risk. |
|
Date |
February, 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 PARTED BY
|
Name : |
Mr. Bhakta |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-2522-204086 |
|
Date : |
18.10.2013 |
LOCATIONS
|
Registered Office : |
4, Mangoe Lane, Surendra Mohan Ghosh
Sarani, Kolkata – 700001, West Bengal, India |
|
Tel. No.: |
91-33-22313337
/ 3450 |
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Fax No.: |
91-33-22314768 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office / Factory: |
Plot No.6, MIDC Industrial Area, Saravati, Kalyan, Bhiwandi Road, Thane – 421311, Maharashtra, India |
|
Tel. No.: |
91-2522-241800 / 662200 / 204086 |
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Fax No.: |
91-2522-281026 / 280166 91-22-25917632 |
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E-Mail : |
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Regional Office : |
Located at: · Mumbai · Kolkata · New Delhi Secunderabad |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Deepak Khaitan |
|
Designation : |
Non-Executive Chairman |
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|
Name : |
Mr. Supriya Mukherjee |
|
Designation : |
Managing Director |
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|
Name : |
Mr. Subir Ranjan Dasgupta |
|
Designation : |
Director |
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Date of Birth/Age : |
10.10.1945 |
|
Qualification : |
B. A. Economics |
|
Date of Appointment : |
01.11.2004 |
|
Other Directorship : |
· Eveready Industries India Limited · McNally Bharat Engineering Company Limited · McNally Sayaji Engineering Limited · China Town Properties Private Limited · Cairnhill Development Private Limited · Cairnhill Stud Firm Private Limited · Calsin Overseas Private Limited · Space Olympia Properties Private Limited · Cairnhill Infrastructure Private Limited · Olympia Cairnhill Development Private Limited · Trans Global PLC · Transglobal Group Limited UK · Waterbright PTE Limited, Singapore · Novener SAS · Uniross SA · MBE Cologne Engineering Gmbh · MBE Coal and Minerals Technology GmbH · MBE Mineral Technologies Pte. Limited · Hatyward Tyler Group Plc |
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|
Name : |
Mr. Amritanshu Khaitan |
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Designation : |
Director |
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Date of Birth/Age : |
07.11.1982 |
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Qualification : |
B. Com (Hons), MBA from London Business School |
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Date of Appointment : |
27.05.2005 |
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|
|
|
Name : |
Mr. Manmohan Singh |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Padam Kumar Khaitan |
|
Designation : |
Director |
|
Date of Birth/Age : |
24.05.1953 |
|
Qualification : |
B. Com., Attorney at Law |
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Date of Appointment : |
11.08.2011 |
|
Other Directorship : |
· Ramkrishna Forgings Limited · Rungamattee Tea and Industries Limited · Williamson Magor and Company Limited · Cheviot Company Limited · R. V. Investment and Dealers Limited · Khaitan Consultants Limited · GJS Hotels Limited · Asian Hotels (East) Limited · McNally Sayaji Engineering Limited · Manjushree Plantations Limited · Time Leverage Instruments (Private) Limited · Auro Holdings Private Limited · Auro Investments Private Limited · ITSA Warehouses Private Limited · NOTT Investments Private Limited · Upper Ganges and Sugar Industries Limited · Trans Global Plc · Novener SAS · Uniross SA. |
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|
|
Name : |
Mr. Gobind Saraf |
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Designation : |
Director |
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Date of Birth/Age : |
16.08.1944 |
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Qualification : |
B. Com |
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Date of Appointment : |
30.03.2009 |
KEY EXECUTIVES
|
Name : |
Mr. A. Suresh |
|
Designation : |
VP Finance and CFO |
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|
Name : |
Mr. Sraban Kumar Karan |
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Designation : |
Company Secretary |
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|
Name : |
Mr. Bhakta |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2013
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
16601 |
0.13 |
|
|
7550537 |
56.96 |
|
|
7567138 |
57.09 |
|
(2) Foreign |
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
7567138 |
57.09 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
900 |
0.01 |
|
|
1800 |
0.01 |
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|
2700 |
0.02 |
|
|
|
|
|
|
589403 |
4.45 |
|
|
|
|
|
|
3480720 |
26.26 |
|
|
1534452 |
11.58 |
|
|
81355 |
0.61 |
|
|
2205 |
0.02 |
|
|
79150 |
0.60 |
|
|
5685930 |
42.89 |
|
Total Public shareholding (B) |
5688630 |
42.91 |
|
Total (A)+(B) |
13255768 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
13255768 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is in the business of process design, engineering,
manufacturing, project management, installation and commissioning of
equipment and systems for various process plants. |
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Products : |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
· USA · UK · China |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
China |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
GENERAL INFORMATION
|
Customers : |
End Users · Wolverine Proctor and Schwartz, UK · Tata Chemicals Limited · Nirma Limited · Gujarat Alkalies and Chemicals Limited · Indian Petrochemical Corp. Limited · Johnson Matthey Chemicals India Private Limited · Formosa Plastic · Tci Sanmar · Reliance Industries Limited · Finolex Limited · Baroda Rayon · Larsen and Toubro Limited · Essar Offshore Subsea Limited |
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No. of Employees : |
144 (Approximately) |
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Bankers : |
· United Bank of India · Union Bank of India · The Federal Bank Limited · IDBI Bank Limited · HDFC Bank Limited ·
The Karur Vysya Bank Limited |
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Facilities : |
NOTE: LONG TERM
BORROWINGS DETAILS OF TERMS OF
REPAYMENT AND SECURITY PROVIDED : Secured by pledge of 850,000 shares of Mcnally Bharat Engineering Company Limited and further secured by cross default arrangement on securities offered by Group Companies; Terms of Repayment: Payable in eight equal installments of Rs. 12.500 Millions on quarterly basis, commencing from June, 2012 to March, 2014. Rate of Interest: 475 basis points below the Long Term Borrowing Monthly Rate (LTBMR)of IL&FS. The rate varied from 14% p.a. to 15.25% p.a. SHORT TERM BORROWINGS DETAILS OF
SECURITY: 1. Equitable Mortgage created by way of Deposit of Title Deed on the Company’s immovable property situated at Plot No.6, Kalyan Bhiwandi Industrial Area, Thane. 2. Hypothecation of present and future stocks of raw
materials, semi-finished goods, finished goods and book debts by way of first
charge and also by hypothecation of movable plant and machinery by way of
first charge. |
|
Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Mumbai, Mumbai, Maharashtra, India |
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|
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|
Company having
significant influence : |
Williamson Magor and Company Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21747900 |
Equity Shares |
Rs.10/- each |
Rs. 217.479 Millions |
|
8252100 |
Redeemable preference shares |
Rs.10/- each |
Rs. 82.521 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 300.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13255768 |
Equity Shares |
Rs.10/- each |
Rs. 132.558 Millions |
|
|
|
|
|
Note :
Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the reporting
period:
|
Particulars |
Opening Balance |
Issue / Buy back |
Closing Balance |
|
Equity shares with voting rights |
|
|
|
|
Year ended 31st March, 2013 |
|
|
|
|
- Number of shares |
1,32,55,768 |
-- |
1,32,55,768 |
|
- Amount (Rs. In Millions) |
132.558 |
-- |
132.558 |
Details of shares
held by each shareholder holding more than 5% shares:
|
Class of shares /
Name of shareholder |
As at 31st March, 2013 |
|
|
Number of shares held |
% holding |
|
|
Equity shares with voting rights |
|
|
|
Williamson Magor and Company Limited |
43,19,043 |
32.58 |
|
Metal Centre Limited |
43,19,043 |
10.97 |
|
United Machines Limited |
9,29,126 |
7.01 |
|
Mcleod Russell India Limited |
8,48,168 |
6.4 |
Aggregate number and
class of shares bought back in the period of 5 years immediately preceding the
Balance Sheet date:
|
Particulars |
Aggregate number of shares |
||||
|
As at 31st March, 2013 |
As at 31st March, 2012 |
As at 31st March, 2011 |
As at 31st March, 2010 |
As at 31st March, 2009 |
|
|
|
Nil |
Nil |
Nil |
1,95,294 |
44,738 |
The Company has only one class of shares referred to above as Equity Shares having par value of Rs.10/-. Each holder of equity share is entitled to one vote per share.
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 |
132.558 |
132.558 |
132.558 |
|
(b) Reserves & Surplus |
784.411 |
952.524 |
946.263 |
|
(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) |
916.969 |
1085.082 |
1078.821 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
50.000 |
100.000 |
|
(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 |
28.820 |
30.536 |
37.422 |
|
Total Non-current
Liabilities (3) |
28.820 |
80.536 |
137.422 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
262.376 |
330.181 |
198.460 |
|
(b) Trade
payables |
241.757 |
231.907 |
245.422 |
|
(c) Other
current liabilities |
251.549 |
236.974 |
114.925 |
|
(d) Short-term
provisions |
32.801 |
32.036 |
92.777 |
|
Total Current
Liabilities (4) |
788.483 |
831.098 |
651.584 |
|
|
|
|
|
|
TOTAL |
1734.272 |
1996.716 |
1867.827 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
682.413 |
712.393 |
168.099 |
|
(ii)
Intangible Assets |
0.774 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
1.347 |
0.000 |
412.231 |
|
(iv)
Intangible assets under development |
2.976 |
2.662 |
0.000 |
|
(b) Non-current Investments |
191.049 |
212.636 |
20.737 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
12.076 |
|
(d) Long-term Loan and Advances |
51.703 |
55.010 |
59.565 |
|
(e) Other
Non-current assets |
1.957 |
6.486 |
21.922 |
|
Total Non-Current
Assets |
932.219 |
989.187 |
694.630 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
125.452 |
160.197 |
167.121 |
|
(c) Trade
receivables |
223.113 |
212.925 |
384.229 |
|
(d) Cash
and cash equivalents |
59.072 |
52.753 |
266.152 |
|
(e)
Short-term loans and advances |
219.497 |
314.472 |
318.428 |
|
(f) Other
current assets |
174.919 |
267.182 |
37.267 |
|
Total
Current Assets |
802.053 |
1007.529 |
1173.197 |
|
|
|
|
|
|
TOTAL |
1734.272 |
1996.716 |
1867.827 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
736.167 |
965.761 |
1259.433 |
|
|
|
Other Income |
21.240 |
71.418 |
39.383 |
|
|
|
TOTAL (A) |
757.407 |
1037.179 |
1298.816 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
464.859 |
589.395 |
732.287 |
|
|
|
Employee benefits expense |
140.952 |
130.989 |
96.135 |
|
|
|
Other expenses |
190.770 |
185.858 |
302.106 |
|
|
|
Exceptional items |
0.000 |
13.896 |
39.487 |
|
|
|
Changes in inventories of finished goods and work-in-progress |
27.556 |
14.197 |
(42.162) |
|
|
|
TOTAL (B) |
824.137 |
934.335 |
1127.853 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
(66.730) |
102.844 |
170.963 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
68.177 |
63.203 |
27.920 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(134.907) |
39.641 |
143.043 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
33.203 |
21.304 |
9.617 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
(168.110) |
18.337 |
133.426 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
12.076 |
42.195 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(168.110) |
6.261 |
91.231 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
674.687 |
678.426 |
634.961 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend proposed to be distributed to equity shareholders |
0.000 |
0.000 |
33.139 |
|
|
|
Tax on dividend |
0.000 |
0.000 |
5.504 |
|
|
|
Transferred to General reserve |
0.000 |
0.000 |
9.123 |
|
|
BALANCE CARRIED
TO THE B/S |
516.574 |
684.687 |
678.426 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Calculated on FOB Basis |
228.133 |
259.983 |
411.273 |
|
|
|
Designing Fees |
1.963 |
1.664 |
2.479 |
|
|
|
Freight and other charges recovered |
0.000 |
3.773 |
2.035 |
|
|
TOTAL EARNINGS |
230.096 |
265.420 |
415.787 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1.773 |
83.497 |
34.198 |
|
|
|
Components and spare parts |
30.082 |
36.929 |
59.718 |
|
|
TOTAL IMPORTS |
31.855 |
120.426 |
93.916 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(12.68) |
0.47 |
6.88 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
205.800 |
|
Total Expenditure |
|
|
186.900 |
|
PBIDT (Excl OI) |
|
|
18.900 |
|
Other Income |
|
|
4.000 |
|
Operating Profit |
|
|
22.900 |
|
Interest |
|
|
13.700 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
9.200 |
|
Depreciation |
|
|
8.300 |
|
Profit Before Tax |
|
|
0.900 |
|
Tax |
|
|
0.200 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
0.700 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
0.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(22.20)
|
0.60 |
7.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(22.84)
|
1.90 |
10.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(10.92)
|
1.03 |
9.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.18)
|
0.02 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.29
|
0.35 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02
|
1.21 |
1.80 |
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
Yes |
|
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
80019803 |
31/01/2011 * |
1,300,000,000.00 |
UNITED BANK OF INDIA |
25, SIR P M ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA |
B05595400 |
* Date of charge modification
CORPORATE INFORMATION
Subject is in the business of process design, engineering, manufacturing, project management, installation and commissioning of equipment and systems for various process plants across the world.
REVIEW OF OPERATIONS
2012 – 2013
The Company is primarily engaged in designing, manufacturing and commissioning customized equipment/ systems for diverse applications. The macroeconomic challenges adversely impacted capital goods sector and as a result considerably restricted the order inflow of the Company both from the domestic and export markets. A number of reputed customers either deferred or cancelled their CAPEX programme during the year. As a result, Sales of the Company plummeted to Rs. 790.000 Millions during the year as against Rs. 1000.000 Millions in the preceding financial year. The decline in sales coupled with higher input/ interest costs and depreciation charges severely affected the Company’s bottom line.
FUTURE OUTLOOK
PROCESS EQUIPMENT
With the likely upturn of global/ Indian economy, the Company is expected to improve its order book both from the export and domestic markets, for its diverse range of customized Process Equipment. The Company’s proven track record of supplying various customized equipment/ systems both offshore and onshore and its renewed efforts to explore export markets are expected to result in much higher sales from the current year and onwards.
The Company started receiving last six months value added orders for its Process Equipment from Domestic and Export Markets namely USA, UAE, Netherlands, Egypt, Africa, South Korea and Spain. Considering these Process Equipment related orders and steady sales growth of Tea Dryers, the Company is hopeful of achieving substantially higher sales in 2013-14. Barring unforeseen circumstances, the Company expects positive operating results in 2013-14. In view of the product quality and other competitive advantages that the Company enjoys, they expect sustainable sales growth in the years ahead.
FOOD PROCESSING
EQUIPMENT
The Company is a Market Leader in Tea Dryers. The improved Phase VI Dryer launched during 2011-12 has been very well accepted by the market both domestic and export. During 2012-13 the Company posted substantial growth in sales of tea dryers both in domestic and export markets as compared to 2011-12. The Company expects to maintain the improved trend of sales growth in this segment.
The Company has supplied Paddy Drying Systems to some rice millers in India and based on the results achieved, the Company has redesigned a new cost effective drying system for various categories of millers.
MANAGEMENT DISCUSSON
AND ANALAYSIS REPORT
ECONOMIC OVERVIEW :
The Company is primarily engaged in designing, manufacturing and commissioning customized equipment/systems for diverse applications. Macroeconomic challenges in several parts of the globe including India gave rise to risk aversion and low level of confidence resulting in postponement of a number of investment decisions for new, expansion and modernization projects. In India, several manufacturing sectors critical to the Company’s business have deferred their CAPEX decisions and thereby order inflow was adversely impacted. In the midst of this overall economic downturn, some of the export markets are going ahead with their investment decisions and they have recognized the inherent strengths and competitive advantages of Indian companies having global standard manufacturing set-up within the country. The Company has started receiving value added orders more particularly from the export market and has also started receiving increasing number of business enquiries both from the export and Indian markets.
CURRENT AND FUTURE
BUSINESS OUTLOOK :
These have been briefly outlined in the Directors’ Report. In respect of both the major product groups i.e. Process Equipment and Food Processing Equipment, the Company is expected to secure orders on a sustainable basis
in the years ahead to enable optimum utilization of its plant capacity. The Company has started 2013-14 with an order book of Rs. 860.000 Millions against Rs. 390.000 Millions as of 1st April, 2012. The Company is in an advanced stage of discussions for certain large orders.
While in the first half of 2012-13, Process Equipment orders received were quite insignificant, the Company secured in last 12 months Process Equipment orders worth Rs. 980.000 Millions (Export : Rs. 750.000 Millions and Domestic : Rs. 230.000 Millions). Most of these orders were received in last 6 months. These orders are in the process of being executed. Export orders in hand are from USA, UAE, Netherlands, Egypt, Africa, South Korea and Spain. Judging the orders in hand and expected order inflows, the Company expects to achieve substantially higher level of sales of Process Equipment in the current year. It may be noted that Orders for Process Equipment/ Systems received by the Company involve execution period ranging from 6 months to 18 months.
In respect of the Company’s Food Processing Equipment, primarily Tea Dryer, the Company achieved higher level of sales in 2012-13 as compared to 2011-12. The Company expects to maintain the trend of improved sales growth of Tea Dryer both in export and domestic markets during the current year. The Company is in the process of introducing a highly cost effective and technology based Continuous Withering System for the Tea industry. This system will greatly benefit the Tea industry in future.
Based on the responses from users from several regions, the Company has re-designed and commissioned acost effective and highly beneficial Paddy Drying System for medium and large millers. This system is expected to receive encouraging response from the rice mill industry. The Company has started receiving export orders for its sugar dryers.
During 2012-13 the Company has put in place a comprehensive setup of several Pilot Plants namely Paddle Dryer, Tray/ Band Dryer, Vibratory Fluid Bed Dryer and CT-Fluid Bed Dryer and a number of end user industries are having their products tested for new applications. The Company has also taken several steps to make a major breakthrough, in some selected export markets, for its coal drying system.
In order to have sustainable order inflow, the Company has undertaken renewed marketing efforts including strategic tie-ups and collaboration agreements. The Company has appointed number of agents for various export markets. Through these initiatives, the Company has received order from internationally reputed customer and several such prospects are expected to fructify in future.
The Company has taken a number of measures aimed at
improving shop floor performance including labour productivity, economizing
procurement costs, effecting several other cost control/ reduction measures.
These are expected to yield improved margins.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Letters of Credit outstanding as at the year end FDR of Rs.
35.688 Millions (previous year Rs. 44.812 Millions) pledged with
banks against the LCs and Bank Guarantees. |
37.755 |
38.007 |
|
Demand Notice from DGFT for non-fulfilling of export
obligations. The Company expects no liability on this account |
13.700 |
13.700 |
|
During the year, the Company has received an order from Deputy Commissioner of Sales Tax, Mumbai for the year 2008-09 raising demand for Rs. 3.075 Millions. The Company is in the process of filing appeal against the said order. |
3.075 |
0.000 |
|
The Company had received demand notice u/s 143(3) for the Assessment year 2009-10 from Income Tax Authorities. The Company has filed appeal before CIT (A) after depositing Rs. 3.000 Millions under protest and expects the outcome of the appeal to be in its favour. CIT appeals order was received subsequently |
0.000 |
14.865 |
|
Other claims not acknowledged as debts |
0.080 |
0.080 |
FIXED ASSETS
v Tangible Assets
· Leasehold Land
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Leasehold Improvements
v
Intangible
assets
· 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.61.49 |
|
|
1 |
Rs.99.41 |
|
Euro |
1 |
Rs.84.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
41 |
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.