MIRA INFORM REPORT
|
Report Date : |
24.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT BIJLEE LIMITED |
|
|
|
|
Registered
Office : |
Electric Mansion, 6th Floor, Appasaheb Marathe Marg,
Prabhadevi, Mumbai – 400025, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
22.06.1946 |
|
|
|
|
Com. Reg. No.: |
11-005017 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 56.516
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300MH1946PLC005017 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB11178G / MUMB11087G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB2900K |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Selling of Transformers, Motors, Drives,
Elevator Systems and Execution of Turnkey Projects. |
|
|
|
|
No. of Employees
: |
1362 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 12480000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having a good track record. Even though company has incurred loss during 2013. The overall
financial position of the company appears to be sound and healthy. The
liquidity of the company seems to be good. The company’s established experience and proven brand recognition in
the transformer and motor manufacturing business, the robust liquidity
profile of the company as reflected by large liquid investments as well as
low gearing levels with borrowings restricted only for meeting the working
capital requirements. Trade relations are reported as fair. Business is active. Payments are
reported as regular and as per commitments. 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 – 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
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years respectively.
By 2020, emerging Asia will become the world’s largest consuming block,
overtaking North America.
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 India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term fund based limits: AA- |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
November 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term fund based limits: A1+ |
|
Rating Explanation |
Strong degree of safety and carry lowest
credit risk. |
|
Date |
November 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Bansi S. Mehta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Nikhil J. Danani |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
B.E.(Mech) and M.B.A. (U.S.A) |
|
Experience : |
39 Years |
|
|
|
|
Name : |
Mr. Nakul P. Mehta |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
Bachelor Degree in Science and also a Bachelor and Master
of Science Degree in Mechanical Engineering. |
|
Experience : |
25 Years |
|
|
|
|
Name : |
Mr. Shome N. Danani |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Jaisingh R. Danani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mukul Harkisondass |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prakash V. Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anand J. Danani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjiv N. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jairaj C. Thacker |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Harish Chandra Mishra |
|
Designation : |
Additional Director (w.e.f.19.10.2012) |
KEY EXECUTIVES
|
Name : |
D.N. Nagarkar |
|
Designation : |
Company Secretary
and Senior General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category
of Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
829742 |
14.68 |
|
|
1191492 |
21.08 |
|
|
2021234 |
35.76 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
2021234 |
35.76 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
238398 |
4.22 |
|
|
884959 |
15.66 |
|
|
13971 |
0.25 |
|
|
1137328 |
20.12 |
|
|
|
|
|
|
298359 |
5.28 |
|
|
|
|
|
|
1898049 |
33.58 |
|
|
152778 |
2.70 |
|
|
143812 |
2.54 |
|
|
143812 |
2.54 |
|
|
2492998 |
44.11 |
|
Total Public
shareholding (B) |
3630326 |
64.24 |
|
Total (A)+(B) |
5651560 |
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) |
5651560 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Transformers, Motors, Drives,
Elevator Systems and Execution of Turnkey Projects. |
||||||
|
|
|
||||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
1362 (Approximately) |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
· Bank of India · IDBI Bank Limited · Citibank N.A. · Standard Chartered Bank ·
HDFC Bank Limited |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name
: |
Dalal and Shah Chartered Accountants |
|
|
|
|
Solicitors : |
Malvi Ranchoddas and Company |
|
|
|
|
Enterprises over which any of (A) or (B) can exercise control or significant
influence : |
· Danmet Chemicals Private Limited ·
Nasivan Investments Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
|
200000 |
12% Non-Convertible Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 80.000 Millions |
|
|
Total |
|
Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5651560 |
Equity Shares |
Rs. 10/- each |
Rs. 56.516
Millions |
|
|
|
|
|
(a)
Details of shares held by shareholders holding more than 5% of the aggregate
shares in the Company
|
|
No of Shares |
% of holding |
|
1 Life Insurance Corporation of India |
507815 |
8.99 |
|
2 Danmet Chemicals Private Limited |
459777 |
8.14 |
|
3 Gayatri Education Medical and Research
Foundation Private Limited |
450165 |
7.97 |
(b) Rights, preferences and restrictions
attached to shares
Equity
Shares: The Company has one class of equity
shares having a par value of Rs 10 per share. Each shareholder is eligible for
one vote per share held. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend . In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their shareholding.
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 |
56.516 |
56.516 |
56.516 |
|
(b) Reserves & Surplus |
3064.266 |
3129.479 |
2756.966 |
|
(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) |
3120.782 |
3185.995 |
2813.482 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
152.710 |
137.161 |
134.733 |
|
(b) Deferred tax liabilities (Net) |
14.420 |
47.403 |
45.023 |
|
(c)
Other long term liabilities |
10.440 |
9.578 |
0.000 |
|
(d)
long-term provisions |
27.302 |
34.738 |
40.997 |
|
Total
Non-current Liabilities (3) |
204.872 |
228.880 |
220.753 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
650.473 |
363.846 |
41.000 |
|
(b)
Trade payables |
1387.660 |
1451.611 |
1574.800 |
|
(c)
Other current liabilities |
380.882 |
546.113 |
364.745 |
|
(d)
Short-term provisions |
144.198 |
282.649 |
237.420 |
|
Total
Current Liabilities (4) |
2563.213 |
2644.219 |
2217.965 |
|
|
|
|
|
|
TOTAL |
5888.867 |
6059.094 |
5252.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
951.146 |
869.033 |
703.467 |
|
(ii)
Intangible Assets |
17.663 |
29.827 |
8.975 |
|
(iii)
Capital work-in-progress |
24.906 |
50.230 |
122.383 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
40.233 |
40.233 |
42.492 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
559.857 |
219.957 |
163.662 |
|
(e)
Other Non-current assets |
8.189 |
12.339 |
7.451 |
|
Total
Non-Current Assets |
1601.994 |
1221.619 |
1048.430 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
200.109 |
55.033 |
181.346 |
|
(b)
Inventories |
952.375 |
981.669 |
844.109 |
|
(c)
Trade receivables |
1883.529 |
2138.424 |
1916.659 |
|
(d)
Cash and cash equivalents |
75.231 |
171.450 |
339.952 |
|
(e)
Short-term loans and advances |
1051.517 |
1378.862 |
722.764 |
|
(f)
Other current assets |
124.112 |
112.037 |
198.940 |
|
Total
Current Assets |
4286.873 |
4837.475 |
4203.770 |
|
|
|
|
|
|
TOTAL |
5888.867 |
6059.094 |
5252.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Revenue From
Operations |
5425.273 |
7177.789 |
7030.677 |
|
|
|
Other Income |
174.534 |
195.967 |
86.101 |
|
|
|
TOTAL (A) |
5599.807 |
7373.756 |
7116.778 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials
consumed |
4068.492 |
5345.426 |
5097.053 |
|
|
|
Purchases of
stock in trade |
136.135 |
151.130 |
101.599 |
|
|
|
Changes in
inventories |
3.697 |
(100.999) |
(11.118) |
|
|
|
Employee benefits |
672.949 |
696.849 |
621.655 |
|
|
|
Other expenses |
569.268 |
652.166 |
543.352 |
|
|
|
Exceptional Item [Profit on Sale of Long Term Investments] |
0.000 |
(260.892) |
(338.067) |
|
|
|
TOTAL
(B) |
5450.541 |
6483.680 |
6014.474 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
149.266 |
890.076 |
1102.304 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
124.206 |
133.748 |
89.684 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
25.060 |
756.328 |
1012.620 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
106.993 |
96.077 |
89.335 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(81.933) |
660.251 |
923.285 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(33.250) |
123.528 |
188.032 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(48.683) |
536.723 |
735.253 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
682.342 |
364.829 |
293.786 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
55.000 |
500.000 |
|
|
|
Dividend |
14.129 |
141.289 |
141.289 |
|
|
|
Tax on Dividend |
2.401 |
22.921 |
22.921 |
|
|
BALANCE CARRIED
TO THE B/S |
617.129 |
682.342 |
364.829 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Direct Exports on F O B basis |
231.455 |
305.347 |
53.810 |
|
|
|
Other Earnings |
0.000 |
0.000 |
0.019 |
|
|
TOTAL EARNINGS |
231.455 |
305.347 |
53.829 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
244.275 |
249.734 |
140.760 |
|
|
|
Components and Spare parts |
0.018 |
2.293 |
0.085 |
|
|
|
Capital Goods |
9.084 |
44.388 |
56.451 |
|
|
TOTAL IMPORTS |
253.377 |
296.415 |
197.296 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
including exceptional items |
(8.61) |
94.97 |
130.10 |
|
|
|
excluding exceptional items |
(8.61) |
48.81 |
70.28 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
10.515 |
|
Total Expenditure |
|
|
11.261 |
|
PBIDT (Excl OI) |
|
|
(0.746) |
|
Other Income |
|
|
0.360 |
|
Operating Profit |
|
|
(0.386) |
|
Interest |
|
|
0.267 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
(0.653) |
|
Depreciation |
|
|
0.268 |
|
Profit Before Tax |
|
|
(0.921) |
|
Tax |
|
|
(0.144) |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
(0.777) |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
(0.777) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.87)
|
7.28 |
10.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.51)
|
9.20 |
13.13 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.41)
|
11.06 |
18.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.03)
|
0.21 |
0.33 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.26
|
0.19 |
0.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.67
|
1.83 |
1.90 |
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
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 |
No |
|
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 |
80026583 |
20/05/2010 * |
3,950,000,000.00 |
BANK OF INDIA (LEAD BANK) |
MUMBAI LARGE CORPORATE BRANCH, BOI BUILDING, 4TH FLOOR, 70-80, M.G. ROAD, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA |
A86787124 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Fixed Deposits |
|
|
|
- From Related
Party |
3.250 |
3.250 |
|
- From Public |
149.460 |
133.911 |
|
|
|
|
|
Total |
152.710 |
137.161 |
GENERAL INFORMATION
Subject is one of the
leaders in the electrical engineering industry in India. A multi-product,
multi-divisional organisation, its main products are transformers, projects,
electric motors, elevator systems and drives. The Company has a well
established all-India marketing network that ensures responsive pre and after
sales service.
OPERATIONS
Income from Sales and Service for the Company declined from Rs. 7810.000
Millions in the previous year to Rs. 5940.000 Millions, a drop of 24%. Revenues
of the Power Systems as well as the Industrial Systems segments reduced
significantly due to sluggish market demand and reduced price realizations.
The company incurred a loss before exceptional items and tax of Rs.
81.900 Millions as against a profit before exceptional items and tax of Rs.
399.400 Millions in the previous year mainly due to reduced volumes and poor
price realizations in the Transformer and Motor businesses and cost overruns in
Project operations.
FINANCE
In spite of tight money market conditions, adverse liquidity and
substantial erosion in profitability, the focus of the Company upon on the
efficient management of short-term and long-term funds through rigorous
monitoring of deployment towards working capital, a comprehensive evaluation
and execution process for capital expenditure, and prudent deployment of
surplus funds helped it generate positive cash flow from operations. Although
the Company incurred interest and finance costs of Rs.124.200 Millions, it also
earned income of Rs. 146.600 Millions from deployment of surplus funds and
treasury operations.
The Company’s free reserves as on 31st March, 2013 decreased by Rs.
65.213 Millions to Rs. 3064.266 Millions.
As on 31st March, 2013, the Company had Fixed Deposits aggregating to Rs
194.981 Millions. Out of the Fixed Deposits which matured for payment prior to
31st March, 2013, 56 deposits aggregating to Rs 1.725 Millions were neither
renewed nor claimed till 31st March, 2013. Of these 10 deposits aggregating to
Rs 0.260 Million have since been renewed or refunded on receipt of requests
from the deposit holders. The balance 46 deposits aggregating to Rs 1.465
Millions have been neither claimed nor renewed till date of this Report, in
spite of the Company’s intimation to the deposit holders. There has been no
default or delay in meeting any maturity payment obligations.
During the year Rs 0.391 Million was transferred to the Investor
Education and Protection Fund.
MANAGEMENT DISCUSSION AND ANALYSIS
Economic uncertainties continued to prevail in both global and domestic
markets during the year. The Company’s products mainly cater to domestic
industrial and infrastructure sectors, which are key drivers of the Indian
economy. The state of the Indian economy, therefore, has a strong linkage to
the business environment for their products.
During the previous year, low growth, high inflation, the burgeoning
fiscal deficit and a phase of perceived policy paralysis impaired business
confidence and resulted in low capital formation. The growth in the Index of
Industrial Production (IIP) also witnessed a slowdown to 0.9% largely due to
infrastructure and input constraints. Further, the latest consensus estimates
of India’s GDP growth for the current year have been revised downward to around
5.5%.
The Reserve Bank of India’s recent macro-economic outlook acknowledges
that growth has been hobbled by structural bottlenecks on the supply side.
Shortages of power, coal, and natural gas, and interruptions to mining
activities have been a major constraining factor for industrial growth. This
has resulted in underperformance in core industries. Some of the key industries
that have been affected are power, water resources, railways, petrochemicals
and cement: sectors that directly impact the Company’s key business segments of
Power and Industrial Systems.
Going forward, they believe that policy and implementation issues
related to land acquisition, fuel availability, regulatory/ statutory clearances,
and a coordinated governance mechanism are key to propelling supply-side
growth. The Government’s effectiveness in implementing the next phase of
reforms are, therefore, likely to be closely watched.
Against this backdrop they expect overcapacity and margin pressures to
continue in their key businesses in the near future. They continue to evaluate
options and take all possible steps to address the current challenges while
building capabilities for the future.
SEGMENT ANALYSIS
The Company operates in two Business Segments, viz. “Power Systems” and
“Industrial Systems”.
POWER SYSTEMS:
The Power Systems segment comprises Power Transformers upto 200 MVA, 220
KV voltage class, EPC projects for electrical substations upto 400 KV; and
marketing of maintenance products.
Their transformer business is tightly linked to power sector
investments, especially in transmission and distribution; a significant
proportion of these investments occur at State level. There was evidence of
steps being taken in respect of SEB restructuring and tariff revisions in
various States during the previous year, and they are hopeful that these will
translate into a more conducive business environment. However, they expect
intense competition and depressed price realizations to continue due to the
ongoing overcapacity in the Indian market. Apart from efforts to expand the
domestic customer base, they have taken steps to increase their focus on
international business for their transformers. This will not only help them
address a larger market but also help to diversify market risk.
The Projects business continues to see a good flow of enquiries from
both the private and public sectors. However, they are cognizant of the fact
that the uncertain economic environment could hamper timely project completion
and payments. They have endeavored to be prudent and selective about their
project portfolio, and continue their focus on execution quality and timely
completion.
INDUSTRIAL SYSTEMS:
This segment comprises the marketing, engineering, design and
manufacture of a full range of LT industrial AC electric motors, synchronous
gearless machines for elevators, and AC variable speed drives and drive
systems.
The Motors business has experienced downward pressures on volumes, price
realizations and margins over the last three quarters. While they expect no
significant demand pick-up during the course of this year, they continue to
concentrate on market reach and customer focus. During the last two years, they
have innovatively strengthened their supply-chain efficiencies and are ready to
cater to the demands of an increasingly competitive market. During the year,
the Company also delivered its first Medium Voltage motor. This is an important
milestone in their ongoing focus on continuously expanding their product
portfolio.
The Drives business presently caters to highly engineered application
segments. During the year they have commissioned a new facility for production
of a range of AC drives at their Airoli Works. This will help them reduce
costs, widen the customer and application segments that they cater to, and to
offer better after-sales service to their customers.
Sales of AC permanent-magnet gearless machines for the elevator industry
continue to see robust growth. They continue to maintain their leadership
position in this market and have increased production capacities to sustain the
growth momentum.
FUTURE OUTLOOK
Unfavourable business conditions are likely to continue in the current year.
Overcapacity and intense competition will result in margin pressures. While
they do not expect demand for their businesses to worsen substantially from the
current levels they will need to be watchful.
STATEMENT OF UNAUDITED
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 30TH JUNE, 2013
[Rs. in Millions]
|
PART
- I |
|
|
|
Particulars |
Three Months Ended 30.06.2013 (Unaudited) |
|
|
1 |
Income
from Operations a) Net Sales/Income from Operations (Net
of excise duty) b) Other Operating Income |
1043.500 8.000 |
|
|
Total
Income from operations (net) |
1051.500 |
|
2 |
Expenditure a) Cost of materials consumed b) Purchase of traded goods |
765.900 57.000 |
|
|
c) Change in inventories of finished goods,
work in progress and stock in trade |
23.200 |
|
|
d) Employee benefits expense e) Depreciation and Amortisation f) Other expenditure |
170.000 26.800 110.000 |
|
|
Total
Expenditure : (a + b + c + d + e + f) |
1152.900 |
|
3 |
Profit/(Loss)
from Operations before Other Income and Finance Costs (1-2) |
(101.400) |
|
4 |
Other
Income |
36.000 |
|
5 |
Profit/(Loss)
from Ordinary Activities before Finance Costs (3+4) |
(65.400) |
|
6 |
Finance
Costs |
26.700 |
|
7 |
Profit/(Loss)
from Ordinary Activities before Tax (5-6) |
(92.100) |
|
8
9 |
Tax
Expense Current
Tax Deferred
Tax - Debit/(Credit) Short/(Excess
)Provision for Tax for earlier years Net
Profit/(Loss) from Ordinary Activities after Tax (7-8) |
-- (14.400) -- (77.700) |
|
10 |
Paid-up
Equity Share Capital (Face value of Rs.10/- per share) |
56.500 |
|
11 |
Reserves
Excluding Revaluation Reserves |
|
|
12 |
Basic
and Diluted Earnings per Share (Rs.) |
(13.75) |
|
PART
- II |
||
|
SELECT
INFORMATION FOR THE THREE MONTHS ENDED 30TH JUNE, 2013 |
||
|
Particulars |
Three Months Ended 30.06.2013 (Unaudited) |
|
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
1 |
Public
Shareholding - Number of Shares - Percentage of Shareholding |
3630326 64.24 |
|
2 |
Promoters
and Promoter group shareholding a) Pledged / Encumbered - Number of Shares - Percentage of shares ( as a % of
the total shareholding of promoter and promoter group ) - Percentage of shares ( as a % of
the total share capital of the Company ) b) Non-Encumbered - Number of Shares - Percentage of shares ( as a % of
the total shareholding of promoter and promoter group ) - Percentage of shares ( as a % of
the total share capital of the Company ) |
-- -- -- 2021234 100.00 35.76 |
|
PARTICULARS |
Three Months Ended 30.06.2013 |
|
B INVESTOR COMPLAINTS Pending
at the beginning of the quarter Received
during the quarter Disposed
of during the quarter Remaining
unresolved at the end of the quarter |
Nil 4 4 Nil |
SEGMENTWISE
REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
FOR THE THREE MONTHS ENDED 30TH JUNE, 2013
[Rs. in Millions]
|
Particulars |
Three Months Ended 30.06.2013 |
|
|
(Unaudited) |
|
1.
Segment Revenue (net of Excise Duty) |
|
|
Net
Sales/Income from operations (net of Excise Duty) |
|
|
a)
Power Systems |
488.500 |
|
b)
Industrial Systems |
555.000 |
|
Net
Sales/Income from operations |
1043.500 |
|
2.
Segment Results |
|
|
Profit
/(Loss) before Finance Costs & Tax |
|
|
a)
Power Systems |
(57.800) |
|
b)
Industrial Systems |
33.900 |
|
Total |
(23.900) |
|
Less: |
|
|
i. Finance Costs |
26.700 |
|
ii. Unallocable Expenses net of un-allocable
income |
41.500 |
|
Profit/(Loss)
before Tax |
(92.100) |
|
3.
Capital Employed |
|
|
(Segment
Assets - Segment Liabilities) |
|
|
a) Power Systems |
1232.800 |
|
b) Industrial Systems |
889.700 |
|
Total
Capital Employed in Segments |
2122.500 |
|
Add:
Unallocable Assets less Liabilities |
920.400 |
|
Total Capital Employed in
the Company |
3042.900 |
Segments
are identified as under:
Power
Systems = Transformers, Turnkey Projects for electrical sub stations and
Maintenance Products
Industrial
Systems = Electric Motors, AC Variable Speed Drives and Gearless Machines
Notes:
1.
The above statement of Financial Results has been reviewed by
the Audit Commitee and taken on record by the Board of Directors at its meeting
held on 25th July, 2013. The Statutory Auditors have carried out Limited Review
of the above Financial Results.
2.
Previous year's/period's figures have been regrouped / recast
/ reclassified, wherever necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
|
|
|
|
Disputed Sales Tax Demands |
18.990 |
8.855 |
|
Disputed Excise Duty Demands |
42.360 |
42.360 |
|
Disputed Custom Duty Demand |
19.112 |
19.112 |
|
Disputed Income Tax Demands |
16.203 |
22.629 |
|
Claims against the Company not acknowledged as debts |
0.000 |
0.130 |
|
|
|
|
|
Total |
96.665 |
96.665 |
FIXED ASSETS:
TANGIBLE ASSETS
· Leasehold Land
· Buildings Incl. Roads
· Plant and Machinery
· Furniture and Fixtures
· Office Equipment
· Motor Vehicles
INTANGIBLE ASSETS
· Application Software
· Technical Knowhow
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. 62.52 |
|
|
1 |
Rs. 100.26 |
|
Euro |
1 |
Rs. 84.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
65 |
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.