MIRA INFORM REPORT
|
Report Date : |
12.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
HARI MACHINES LIMITED |
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Registered
Office : |
Rajgangpur, Sundergarh – 770017, Orissa |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
13.07.1948 |
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Com. Reg. No.: |
15-000713 |
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Capital
Investment / Paid-up Capital : |
Rs. 50.000 millions |
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CIN No.: [Company Identification
No.] |
L29299OR1948PLC000713 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BBNH00045D |
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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
: |
Manufacturer of Refractory Equipment’s, Crushing and Grinding
Equipment, Mixing Equipment- counter Current Mixer, Boiler Equipment’s, Steel
Plants and Cement Plants, Mineral Beneficial Equipment’s, etc. |
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No. of Employees
: |
400 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
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 2290000 |
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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 the year 2013. However, company gets strong parentage support from Dalmia Group.
Rating also takes into consideration well diversified portfolio across
various industries. Trade relations are reported to be fair. business is active. Payments
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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs 1,000
denominations, pushing the deadline to January 1, 2015. A day before dates for
the Lok Sabha polls were announced, the government decided to hike interest
rates on fixed deposit schemes offered by post offices up to 0.2 per cent. The
new rates will be effective April, 1. The Supreme Court will resume hearing on
March, 11 Nokia’s appeal against a ruling over transferring ownership of its
local mobile phones plant which is the subject of a tax dispute to Microsoft
Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limits: “BBB-” |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
August 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non-fund based limit: “A3” |
|
Rating Explanation |
Moderate degree of safety and high credit risk. |
|
Date |
August 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. Shambhu Prasad |
|
Designation : |
Accounts Department |
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Contact No.: |
91-6624-220141 |
|
Date : |
09.04.2014 |
LOCATIONS
|
Registered Office/ Factory : |
Rajgangpur, Sundergarh – 770017, |
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Tel. No.: |
91-6624-220141 / 161 |
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Telefax No. : |
91-6624-220151 |
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E-Mail : |
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Website : |
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Corporate Office : |
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Tel. No.: |
91-33-40174100 to 4109 |
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Telefax No. : |
91-33-40174110 |
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E-Mail : |
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4, Scindia House, |
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Tel. No.: |
91-11-23312706 / 2873 |
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Telefax No. : |
91-11-23325160 / 23315762 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Raghu Hari Dalmia |
|
Designation : |
Chairman |
|
Address : |
No.1 Tees January Marg, |
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Date of Birth/Age : |
14.01.1950 |
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Qualification : |
B. Tech (Hons), Mech. Engg |
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Date of Appointment : |
01.10.1980 |
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Other Directorship: |
· Debikay Systems Limited · Himalayan Natural Products Limited |
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Name : |
Mr. Gaurav Dalmia |
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Designation : |
Vice Chairman |
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Name : |
Mr. Sabyasachi Mishra |
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Designation : |
Managing Director |
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Date of Birth/Age : |
46 Years |
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Qualification : |
BE Electrical |
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Name : |
Mr. |
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Designation : |
Director |
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Name : |
Mr. Sushil Kumar Chhawchharia |
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Designation : |
Director |
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Date of Birth/Age : |
17.10.1944 |
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Qualification : |
B.Com, L.L.B., FCA |
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Date of Appointment : |
15.05.2009 |
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Other Directorship: |
· Ceeta Industries Limited · Budge Budge Company Limited |
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Name : |
Mr. Ravinder Kumar Gilani |
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Designation : |
Director |
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Name : |
Mr. Amit Kedia |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Kailash Kumar Agrawal |
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Designation : |
Chief Financial Officer |
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Name : |
Mrs. Sudha Agarwal |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Names of Shareholders |
No. of Shares |
|
M H Dalmia and Abha Dalmia |
8.63 |
|
Abha Dalmia and M H Dalmia |
8.13 |
|
R H Dalmia and Padma Dalmia |
3.75 |
|
Padma Dalmia and R H Dalmia |
13.00 |
|
Sabyasachi Mishra |
4.46 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Refractory Equipment’s, Crushing and Grinding
Equipment, Mixing Equipment- counter Current Mixer, Boiler Equipment’s, Steel
Plants and Cement Plants, Mineral Beneficial Equipment’s, etc. |
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Products : |
· Refractory Equipments · Engineering Equipments · Sponge Iron Equipments · Engineering Equipments and Spares · Screening and Separating Machines · Mixing Equipments – Counter Current Mixer |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
Indonesia |
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Imports : |
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Products : |
Raw Material |
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Countries : |
· Germany · China |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C |
GENERAL INFORMATION
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Customers : |
Manufacturer |
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No. of Employees : |
400 (Approximately) |
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Bankers : |
·
State Bank of ·
UCO Bank ·
Axis Bank Limited ·
Union Bank of India ·
ICICI Bank Limited ·
Bank of Baroda |
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Facilities : |
NOTE: LONG TERM
BORROWINGS a) Term Loan Prom UCO Bank carries interest @ 15% p.a to 15.5% p.a; The Loan is repayable in further 2 Quarterly installments @ Rs. 1.400 Millions per quarter, The Loan is secured by 1st mortgage and hypothecation charge over the land and building, plant and machinery and other immovable and movable fixed assets both existing and future) Of the company on pari-passu basis with SBI. b) Term Loan from State Bank of India carries interest @ 15% p.a to 15.5% p.a. The Loan is repayable in further 11 Quarterly Installments @ Rs. 2.300 Millions per quarter. The Loan is secured by EM of land and building and charge over other fixed assets of the company, on paripassu basis with other term lenders. c) Term Loan from Bank of Baroda carries interest @ 13% p.a to 14% p.a. The Loan is repayable in 20 Quarterly installments @ Rs. 11.500 Millions per quarter to be started from 01.10.2013. The Loan is secured by EM of land and building and charge over other fixed assets of the company, on pari-passu basis with other term lenders. SHORT TERM BORROWINGS a) Cash Credit from Banks carries interest @ 13.25% p.a to 15.5% p.a The Loan is repayable on demand. The Loans are secured against hypothecation of stock of raw materials, stores and spares, packing materials including other consumables, finished and semi-finished goods, book debts and all other current assets of the company present and future on pari-passu basis with all consortium members. b) WCDL from State Bank carries interest @ 9.95% pa. The loan is sanctioned for 6 months and it is within the FBWC limit. The Loans are secured against hypothecation of stock of raw materials, stores and spares, packing materials including other consumables, finished and semi-finished goods, book debts and all other current assets of the company present and future on pari-passu basis with all consortium members, c) FSLC from ICICl Bank carries interest @ 12.00%-12.50%
p.a. The Loan is repayable on demand. The Loans are secured against
hypothecation of stock of raw materials, stores and spares, packing materials
including other consumables, finished and semi-finished goods, book debts and
all other current assets of the company present and future on pari-passu
basis with all consortium members. |
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Banking
Relations : |
-- |
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Statutory Auditor : |
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Name : |
K D Lath and Company Chartered Accountant |
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Address : |
Narmada, Udit Nagar, Rourkela – 769 012, |
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Internal Auditor : |
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Name : |
Vimal and Seksaria Chartered Accountants |
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Address : |
31, Ganesh Chandra Avenue, 1st Floor, Kolkata – 700001,
West Bengal, India |
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Associate and Joint Venture : |
· Pro Minerals Private Limited · Steel Plantech Engineering India Private Limited |
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Enterprises over which key management personnel are able to exercise
significant influence (with whom transactions has taken place during the
year): |
· OCL India Limited · Konark Investment Limited · Grandeur Tours and Travels Private Limited · Dapel Investments Limited · Satya Miners and Transport Limited · All Mineral Asia Private Limited · Hazemag India Private Limited · Kiran Resources Private Limited · Cemtec India Private Limited · Dalmia Agency Private Limited · Khaitan Udyog Private Limited · Nobel Consultancy Private Limited · Mridu Hari Dalmia Pariwar Trust · R.H. Dalmia Family Private Trust |
CAPITAL STRUCTURE
As on 28.09.2013
Authorised Capital : Rs. 260.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.
228.000 Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
|
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|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
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|
Note: Of the above 4800000 equity share of Rs. 10 each, fully paid up have been issued as bonus shares by capitalization of the general reserve in the FY-2009-10.
Reconciliation of the
shares outstanding at the beginning and at the end of the FY-2012-2013
|
Particulars |
31st March 2013 |
|
|
Number |
Rs. in Millions |
|
|
Shares outstanding at the beginning of the year |
50 |
50.000 |
|
Shares issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
50 |
50.000 |
Term / Right attached
to equity shares
The company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.
Details of
shareholders holding more than 5% shares in the company
|
Name of
Shareholders |
31st March 2013 |
|
|
No. of Shares held |
% of Holding |
|
|
M H Dalmia and Abha Dalmia |
8.63 |
17.25 |
|
Abha Dalmia and M H Dalmia |
8.13 |
16.25 |
|
R H Dalmia and Padma Dalmia |
3.75 |
7.50 |
|
Padma Dalmia and R H Dalmia |
13.00 |
26.00 |
|
Sabyasachi Mishra |
4.46 |
8.93 |
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 |
50.000 |
50.000 |
50.000 |
|
(b) Reserves & Surplus |
521.514 |
537.160 |
529.372 |
|
(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) |
571.514 |
587.160 |
579.372 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
213.447 |
25.800 |
39.200 |
|
(b) Deferred tax liabilities (Net) |
7.384 |
14.553 |
11.155 |
|
(c) Other long term
liabilities |
1.341 |
1.465 |
1.445 |
|
(d) long-term
provisions |
6.630 |
5.186 |
6.623 |
|
Total Non-current
Liabilities (3) |
228.802 |
47.004 |
58.423 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
735.337 |
752.132 |
799.728 |
|
(b) Trade payables |
470.366 |
414.975 |
262.588 |
|
(c) Other
current liabilities |
1522.291 |
465.066 |
318.164 |
|
(d) Short-term
provisions |
19.703 |
12.477 |
155.090 |
|
Total Current
Liabilities (4) |
2747.697 |
1644.650 |
1535.570 |
|
|
|
|
|
|
TOTAL |
3548.013 |
2278.814 |
2173.365 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
336.981 |
346.032 |
338.371 |
|
(ii)
Intangible Assets |
3.184 |
5.715 |
4.754 |
|
(iii) Capital
work-in-progress |
278.155 |
17.980 |
45.443 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.050 |
5.050 |
5.050 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
37.853 |
53.037 |
15.592 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
656.223 |
427.814 |
409.210 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2102.665 |
1129.666 |
844.010 |
|
(c) Trade
receivables |
527.294 |
616.745 |
575.308 |
|
(d) Cash
and cash equivalents |
26.838 |
12.123 |
13.168 |
|
(e)
Short-term loans and advances |
226.634 |
87.349 |
186.254 |
|
(f) Other
current assets |
8.359 |
5.117 |
145.415 |
|
Total
Current Assets |
2891.790 |
1851.000 |
1764.155 |
|
|
|
|
|
|
TOTAL |
3548.013 |
2278.814 |
2173.365 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1051.548 |
1213.108 |
1481.471 |
|
|
|
Other Income |
24.754 |
51.254 |
11.909 |
|
|
|
TOTAL (A) |
1076.302 |
1264.362 |
1493.380 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
815.183 |
969.383 |
975.323 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(173.643) |
(188.969) |
(94.469) |
|
|
|
Employees benefits expense |
145.061 |
123.186 |
114.285 |
|
|
|
Other expenses |
176.762 |
201.771 |
268.083 |
|
|
|
TOTAL (B) |
963.363 |
1105.371 |
1263.222 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
112.939 |
158.991 |
230.158 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
112.272 |
121.956 |
110.788 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
0.667 |
37.035 |
119.370 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
23.481 |
25.268 |
23.131 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
(22.814) |
11.767 |
96.239 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(7.169) |
4.861 |
33.075 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(15.645) |
6.906 |
63.164 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(3.13) |
1.38 |
12.63 |
|
Expected Sales (2013-2014) : Rs. 1440.000 Millions
The above information has been parted by Mr. Shambhu Prasad (Accounts Department).
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(1.45) |
0.55 |
4.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.17) |
0.97 |
6.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.70) |
0.52 |
4.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.04) |
0.02 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.66 |
1.32 |
1.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.05 |
1.13 |
1.15 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particulars |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
50.000 |
50.000 |
50.000 |
|
Reserves & Surplus |
529.372 |
537.160 |
521.514 |
|
Net
worth |
579.372 |
587.160 |
571.514 |
|
|
|
|
|
|
long-term borrowings |
39.200 |
25.800 |
213.447 |
|
Short term borrowings |
799.728 |
752.132 |
735.337 |
|
Total
borrowings |
838.928 |
777.932 |
948.784 |
|
Debt/Equity
ratio |
1.448 |
1.325 |
1.660 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1481.471 |
1213.108 |
1051.548 |
|
|
|
(18.115) |
(13.318) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1481.471 |
1213.108 |
1051.548 |
|
Profit |
63.164 |
6.906 |
(15.645) |
|
|
4.26% |
0.57% |
(1.49%) |
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
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 |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
Loans and advances from related parties 12% Inter corporate Loan repayable on demand |
60.000 |
60.000 |
|
Total |
60.000 |
60.000 |
REVIEW OF OPERATIONS
During the year, Net Sales of the Company was Rs. 1076.302 Millions as against Rs. 1264.362 Millions for FY 2011-12 (a decrease of 14.87%) and Net Loss was Rs.15.645 Millions as against Rs. 6.906 Millions for FY 2011-12 (a decrease of 326.54%).
The Key factors responsible for decrease in sales and productivity is the recession in the Indian Economy. The basic raw material for the Heavy Engineering Industry i,e; Coal, lron Ore etc. are not available at competitive rates currently. The cost of coal has increased considerably over the years and there are supply constraints. lron Ore mines have closed in the last few years due to reasons attributable to environment.
During the year the Company has extended offerings to waste heat recovery & steam generation solution, utilizing various low cabrific value fuels like washery rejects, dolochar, biomass etc. Now Hari Machines Ltd., equipped with knowledge of latest combustion technology like Atmospheric Fluidized Bed Combustion, Circulating Fluidized bed Combustion etc, has already supplied number of WHRB & AFBC boilers for the power plant in sponge iron, steel, coke-oven and cement industries.
The Company is also offering complete power solution to industries in association with the leading EPC solution providers in India under partnership arrangement. They have already participated in five EPC projects along with their EPC partners.
HML has associated with one of the leading Overseas Thermal Engineering consultant agency Ur-TDE, Kempen, Duesseldorf, Germany, as their Design Engineering Advisor for WHR, HRSG, Oil/Gas Fired and AFBC Boilers.
PROSPECTS
The Company is geared up to offer CFBC Boiler technology in the range of 60 tph to 450 tph with 164 bar ressure and 560 Deg C under Design engineering and technology from RAFAKO S.A. Poland (Largest boiler manufacturing company in Europe) suitable for combustion of low calorific value fuels like washery ejects, dolochar, F-grade Coal with high ash contents and Biomass. In this regard, their marketing and sales department along with representatives of RAFAKO, SA, Poland have met leading power plant consultants and medium and large customers, big business houses in four regions of India. As a result of this initiative, they have received enquiries and quoted to eight projects.
The Company strongly believes that Customer satisfaction can be achieved only through an optimum solution of steam generation backed up by Technology, Quality, Excellent manufacturing facility, on time execution and total customer support, the project being executed at Ispat Damodar Limited and Niros Ispat Private Limited amply exemplified their project and construction management capabilities which have generated delighted customer reference station.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY TREND AND
DEVELOPMENT
The Engineering Industry is the largest segment of the overall industrial sectors in India, accounting for 3% of India's GDP. With advanced economies expected to record only a slight improvement in growth and depleted domestic investment pipeline, India's GDP growth in 2013-14 will be dependent on the revival of private consumption growth. Overall, India's GDP growth is expected to pick-up to 6.7 per cent in 2013-14, from 5.5 per cent projected for 2012-13.
The Engineering Division could not sustain its earlier growth levels due to the key segment in which it operates, Heavy Machinery, which on account of global slowdown suffered deferred delivery schedules by customers and also sluggish demand. As the nation's industrial production indexes indicate, Engineering Exports, as a whole, have been significantly impacted, while the Division has strived to maintain its top line by generating business in sectors which yield relatively low margins. The capital goods industry has perforce, to revive in the near future, as other feed-sectors have necessarily to grow for production of goods of vital consumption, both industrial and otherwise. On a broader view, therefore the current slump and slow growth is a passing phase, though of a longer term and demand should pick up in the near future.
OUTLOOK
The Engineering sector's future outlook is promising. Drivers like power projects, other infrastructure development activities, industrial growth and favorable policy regulations will drive growth in manufacturing. The Indian engineering industry has been witnessing significant level of capability enhancement over the years. As export markets open up, this will help India develop a strong presence in global engineering exports.
Emerging trends such as outsourcing of engineering services can provide new opportunities for quantum growth. Engineering and design services such as new product designing, product improvement, maintenance and designing manufacturing systems are increasingly getting outsourced to countries like lndia and China.
The Company is geared up to offer CFBC Boiler technology in the range of 60 tph to 450 tph with 164 bar pressure and 560 Deg C under design engineering & technology from RAFAKO S.A. Poland (largest boiler manufacturing Company in Europe) suitable for combustion of washery rejects, dolochar, F-grade coal with high ash contents and biomass, HML has also associated with one of the leading Overseas Thermal Engineering consultant agency called Ur-TDE, Kempen, Duesseldorf, Germany as design engineering consultant for WHR, HRSG, Oil/Gas Fired and AFBC Boilers. The Company has plans to provide EPC solution for supply of Power Plant on Turnkey basis in the next 3-4 years. The Company is also set to offer design engineering solution for process heat recovery from Carbon Black, Copper smelters, Glass furnace etc.
The Company has started offering waste heat recovery and steam generation solution with latest combustion technology like Atmospheric Fluidized Bed Combustion and Circulating Fluidized Bed Combustion Boilers, utilizing various low calorific value fuels like washery rejects, dolochar, biomass etc and supplied number of WHRB & AFBC boilers for the power plant in sponge iron, steel, coke- oven, cement industries and process industry.
They expect demand in the engineering sector to remain healthy primarily on account of the Government's increased thrust on infrastructure development. The continuing growth of the manufacturing sector and favourable regulatory policies would provide further boost to the sector's growth.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2013
(Rs. In Millions)
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
Income from
operations |
|
|
|
|
a. Net Sales/ Income from operation (Net of excise duty) |
196.083 |
145.853 |
544.450 |
|
b. Other Operating Income |
1.878 |
2.639 |
6.408 |
|
Total Income from Operations (Net) |
197.961 |
148.492 |
550.858 |
|
Expenditure |
|
|
|
|
a. Cost of Materials Consumed |
156.397 |
115.945 |
441.407 |
|
b. Purchase of Stock-in-Trade |
-- |
-- |
-- |
|
c. Changes in Inventories of Finished Goods & Stock in trade |
(5.744) |
(21.936) |
(40.653) |
|
d. Employee Benefits Expenses |
35.005 |
40.359 |
112.655 |
|
e. Depreciation and amortisation Expense |
5.567 |
5.627 |
16.956 |
|
f. Other Expenses |
49.739 |
47.668 |
142.243 |
|
Total Expenses |
240.964 |
187.663 |
672.608 |
|
Profit/ (Loss) from Operations before Other Income, Finance Costs & Exceptional Items (1-2) |
(43.003) |
(39.172) |
(121.750) |
|
Other Income |
2.325 |
4.151 |
8.834 |
|
Profit/ (Loss) Before from ordinary activities before Finance Costs & Exceptional Items (3+4) |
(40.678) |
(35.020) |
(112.916) |
|
Finance Costs |
29.372 |
28.451 |
80.607 |
|
Profit/ (Loss) Before from ordinary activities after Finance Costs but before Exceptional Items (3+4) |
(70.051) |
(63.472) |
(193.523) |
|
Exceptional Items |
-- |
-- |
-- |
|
Profit/ (Loss) from ordinary activities before Tax (7-8) |
(70.051) |
(63.472) |
(193.523) |
|
Tax Expense |
-- |
-- |
-- |
|
Net Profit/ (Loss) from ordinary activities after Tax (9-10) |
(70.051) |
(63.472) |
(193.523) |
|
Extraordinary items (Net of tax expenses) – Rs. Nil |
-- |
-- |
-- |
|
Net Profit/ (Loss) for the period (11-12) |
(70.051) |
(63.472) |
(193.523) |
|
Paid up Equity Share Capital (Face Value of Rs.2/- Each) |
5.000 |
5.000 |
5.000 |
|
Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year |
|
|
|
|
Earnings Per Share (EPS) (Rs.) |
|
|
|
|
(a) Basic and Diluted before Extra – ordinary items |
(14.01) |
(12.69) |
(38.70) |
|
(b) Basic and Diluted after Extra – ordinary items |
(14.01) |
(12.69) |
(38.70) |
|
|
|
|
|
|
|
|
|
|
|
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
Public shareholding |
|
|
|
|
|
a. |
Number of shares (Rs. 10 each) |
1483000 |
1483000 |
1483000 |
|
b. |
Percentage of shareholding |
29.66 |
29.66 |
29.66 |
|
|
|
|
|
|
|
Promoters and promoter group shareholding |
|
|
|
|
|
|
|
|
|
|
|
a. |
Pledged/Encumbered |
|
|
|
|
Number of shares (Rs. 10 each) |
-- |
-- |
-- |
|
|
|
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 (Rs. 10 each) |
3517000 |
3517000 |
3517000 |
|
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
70.34 |
70.34 |
70.34 |
|
|
Percentage of shares (as a % of the total share capital of the Company) |
100 |
100 |
100 |
|
Particulars |
Quarter ended 31.12.2013 |
|
B INVESTOR COMPLAINTS (Nos.) |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTE:
· The figures of the previous periods have been regrouped wherever necessary.
· The company is operating in only one segment i.e. Heavy Engineering.
· The company has issued and allotted 1780000, 2% Compulsory Fully Convertible Preference Shares during the nine months ended 31st December, 2013.
· The above have been reviewed by Audit Committee, subjected to review by Statutory Auditors and approved by the Board of Directors in their meeting held on 11.02.2014.
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
Claims against the
Company not acknowledged as debts, under dispute |
|
|
|
a)
Demands for Central and State Sales Tax and Entry
Tax pending in appeal |
145.966 |
14.340 |
|
b)
Bank Guarantee issued in favour of customers |
169.852 |
169.058 |
|
c) Corporate Guarantee given to bank in favour of Joint Venture Company |
571.513 |
587.159 |
|
d)
Arbitration case in S.E.C.L. Dhanpuri |
0.933 |
0.933 |
|
e)
Demand for service tax |
1.222 |
1.021 |
|
f)
Income Tax |
0.530 |
1.510 |
FIXED ASSETS
v
Tangible
Assets
· Land
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Library
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.60.27 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.83.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
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 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--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 |
|
42 |
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.