MIRA INFORM REPORT
|
Report Date : |
18.04.2014 |
DENTIFICATION DETAILS
|
Name : |
BGR ENERGY SYSTEMS LIMITED |
|
|
|
|
Formerly Known
As : |
GEA ENERGY SYSTEM INDIA LIMITED |
|
|
|
|
Registered
Office : |
Plot No. A-5, Panamgadu Industrial Estate, Ramapuram Post, Sullurpet
(T), Nellore – 524401, Andhra Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
18.02.1985 |
|
|
|
|
Com. Reg. No.: |
01-5318 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.721.600 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L40106AP1985PTC005318 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDG01305D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer
of Capital Equipments for Power Plants, Petrochemical Industries, Refineries,
Process Industries and Undertakes Turnkey Balance of Plant (BOP) and Erection
Procurement and Construction (EPC) Contracts for Power Plants. |
|
|
|
|
No. of Employees
: |
2418 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 48800000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having satisfactory track. There is a dip in profit of the company in the year 2013. However,
overall financial position of the company is decent. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may grow
4.7 % in the current financial year, lower than the official estimate of 4.9 %,
Fitch Rating said. The global rating agency expects the economy to pick up in
the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs.7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limit: BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
January, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non Fun based limits: A2 |
|
Rating Explanation |
Strong degree of safety and low credit risk.
|
|
Date |
January, 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
MANAGEMENT NON CO-OPERATIVE
Contact No.: 91-44-24335958
LOCATIONS
|
Registered Office : |
Plot No. A - 5, Panamgadu Industrial Estate, Ramapuram Post, Sullurpet
(T), Nellore – 524401, Andhra Pradesh, India |
|
Tel. No.: |
91-44-27948549/ 27900181 |
|
Fax No.: |
91-44-27948359/ 27948249 |
|
E-Mail : |
|
|
Website : |
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|
Overseas Office : |
BFR Energy Systems Limited 610036, Room 1, 4th Floor, Unit 1, 4th Building
in Ming Yuan, Jing Cheng Yuan Garden, No.289 Shuhan Road, Chengdu, China |
|
Tel. No.: |
86-28-87583520 |
|
|
|
|
Corporate Office : |
443, Anna Salai, Teynampet, Chennai – 600018, Tamilnadu, India |
|
Tel. No.: |
91-44-24335958/ 24334940/ 24326171 |
|
Fax No.: |
91-44-24338775/ 24360576/ 24364656 |
|
E-Mail : |
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|
Website : |
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Regional
Office : |
Located at: ·
·
Mumbai ·
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|
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|
Principal Office
Divisions |
Power Projects Division Captive Power Division Oil and Gas Equipment Division Air Fin Cooler Division Environment Engineering Division Electrical Projects Division Infrastructure Division |
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|
|
|
Factory : |
304 / 305 Anna Salai Teynampe, Chennai – 600018, |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. B. G.
Raghupathy |
|
Designation : |
Chairman and
Managing Director |
|
|
|
|
Name : |
Mr. V. R.
Mahadevan |
|
Designation : |
Director –
Technologies and HR |
|
|
|
|
Name : |
Mr. A. Swaminathan |
|
Designation : |
Director Sales and Marketing |
|
|
|
|
Name : |
Mr. Swarnamugi Karthik |
|
Designation : |
Director – Corporate Strategy |
|
|
|
|
Name : |
Mr. K. Chandrashekar |
|
Designation : |
Director – Projects |
|
|
|
|
Name : |
Mr. M. Gopalakrishna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. A. Bohra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. R. Tagat |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. S. Sundara
Rajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gana
Rajasekaran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Heinrich Bohmer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Sasikala
Raghupathy |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R. Ramesh
Kumar |
|
Designation : |
President – Corporate and Secretary |
|
Address : |
W – 3, |
|
Date of Birth/Age : |
15.05.1962 |
|
Date of Appointment : |
20.11.1992 |
|
|
|
|
Name : |
Mr. P. R. Easwar Kumar |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2013)
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
26872770 |
37.24 |
|
|
27248400 |
37.76 |
|
|
54121170 |
75.00 |
|
|
|
|
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
54121170 |
75.00 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1471346 |
2.04 |
|
|
69531 |
0.10 |
|
|
268194 |
0.37 |
|
|
1830171 |
2.54 |
|
|
3639242 |
5.04 |
|
|
|
|
|
|
|
|
|
|
2068474 |
2.87 |
|
|
|
|
|
|
|
|
|
|
8477448 |
11.75 |
|
|
869499 |
1.20 |
|
|
2985727 |
4.14 |
|
|
802492 |
1.11 |
|
|
359879 |
0.50 |
|
|
198 |
0.00 |
|
|
1804057 |
2.50 |
|
|
18851 |
0.03 |
|
|
250 |
0.00 |
|
|
14401148 |
19.96 |
|
|
|
|
|
Total Public shareholding (B) |
18040390 |
25.00 |
|
|
|
|
|
Total (A)+(B) |
72161560 |
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) |
72161560 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Capital Equipments for Power Plants, Petrochemical Industries, Refineries,
Process Industries and Undertakes Turnkey Balance of Plant (BOP) and Erection
Procurement and Construction (EPC) Contracts for Power Plants. |
GENERAL INFORMATION
|
No. of Employees : |
2418 (Approximately) |
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Bankers : |
·
State Bank of India ·
State Bank of Hyderabad ·
State Bank of Travancore ·
State Bank of Patiala ·
State Bank of Bikaner and Jaipur ·
State Bank of Mysore ·
IDBI Bank Limited ·
Indian Bank ·
Corporation Bank ·
Punjab National Bank ·
Bank of India ·
Axis Bank ·
The Karur Vysya Bank Limited ·
Vijaya Bank Limited ·
Indian Overseas Bank ·
Central Bank of India ·
Allahabad Bank ·
Syndicate Bank ·
Andhra Bank ·
ING Vysya Bank Limited ·
Export Imports Bank of India ·
ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name: |
Manohar Chowdhary
and Associates Chartered Accountants |
|
Address: |
#27, Subramaniam
Street, Abirampuram, Chennai – 600018, Tamilnadu, India |
|
Tel. No.: |
91-44-42903333 |
|
Fax No.: |
91-44-42903350 |
|
Email : |
|
|
|
|
|
Internal Auditors |
· J V Associates Chartered Accountants · V Krishnan and Company Chartered Accountants · Ramachandran and Murali Chartered Accountants · Brahmayya and Company Chartered Accountants · Venkatesh and Company Chartered Accountants |
|
|
|
|
Subsidiaries : |
·
Progen Systems and Technologies Limited ·
BGR Boilers Private Limited ·
BGR Turbines Company Private Limited ·
Sravanaa Properties Limited |
|
|
|
|
Other Companies: |
·
GEA Cooling Tower Technologies ( · GEA BGR Energy System India Limited ·
Germanischer Lloyd Industrial Services ( · Mega Funds India Limited · Sasikala Estate Private Limited · Schmitz India Private Limited ·
Cuddalore Powergen Corporation Limited ·
ANI Constructions Private Limited ·
Nannilam Property Private Limited ·
Pragathi Computers Private Limited ·
BGR Odisha Powergen Limited |
|
|
|
|
Joint Venture: |
·
Mecon – GEA Energy System ( |
CAPITAL STRUCTURE
(AS ON 31.03.2013)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Share |
Rs.10/- Each |
Rs.1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
72161560 |
Equity Shares |
Rs.10/- each |
Rs.721.616
Millions |
|
|
|
|
|
a.
Reconciliation of the number of shares outstanding at the beginning and at the
end of the reporting year
|
Equity Shares |
As
at March 31, 2013 |
|
|
|
No. of Shares |
Rs. In Millions |
|
|
|
|
|
Outstanding at the beginning of the year |
72161560 |
721.600 |
|
Outstanding at the end of the year |
72161560 |
721.600 |
|
|
|
|
b.
Terms/rights attached to equity shares
The
company has one class of shares referred to as equity shares having a par value
of Rs.10/-. Each holder of equity shares is entitled to one vote per share.
c.
54000000 (54000000)
Shares out of the issued, subscribed and paid up share capital were allotted as
bonus shares in the last five years by capitalization of profits.
d.
Details of shareholders holding more than 5% shares in the company.
|
Name of
Shareholders |
As
at March 31, 2013 |
|
|
|
No. of Shares |
% held |
|
|
|
|
|
Mr. B G Raghupathy |
19712160 |
27.32 |
|
Mrs. Sasikala Raghupathy |
11579120 |
16.05 |
|
Priya Securities Private Limited |
8640000 |
11.97 |
|
BGR
Investment Holdings Company Limited |
8640000 |
11.97 |
|
Vani Securities Private Limited |
5428080 |
7.52 |
|
Arjun Securities Private Limited |
4540320 |
6.29 |
e. The company has reserved issuance
of 285858 (291100) Equity shares of Rs.10/- each for offering to eligible
employees of the company and its subsidiary under the Employee Stock Option
Scheme - 2007.
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 |
721.600 |
721.600 |
721.600 |
|
(b) Reserves & Surplus |
11473.800 |
10424.100 |
8776.000 |
|
(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) |
12195.400 |
11145.700 |
9497.600 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
130.900 |
424.200 |
435.600 |
|
(b) Deferred tax liabilities (Net) |
4242.700 |
4013.500 |
3116.800 |
|
(c) Other long term
liabilities |
8405.700 |
6512.100 |
7842.700 |
|
(d) long-term
provisions |
2219.500 |
2044.600 |
1702.700 |
|
Total Non-current
Liabilities (3) |
14998.800 |
12994.400 |
13097.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
21880.000 |
17025.700 |
12823.700 |
|
(b) Trade
payables |
10502.500 |
13084.400 |
11944.400 |
|
(c) Other
current liabilities |
4514.900 |
3619.400 |
4158.600 |
|
(d) Short-term
provisions |
701.300 |
654.500 |
934.100 |
|
Total Current
Liabilities (4) |
37598.700 |
34384.000 |
29860.800 |
|
|
|
|
|
|
TOTAL |
64792.900 |
58524.100 |
52456.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1917.300 |
1838.900 |
1500.300 |
|
(ii)
Intangible Assets |
112.000 |
100.100 |
124.000 |
|
(iii)
Capital work-in-progress |
73.500 |
45.100 |
129.600 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
3637.100 |
2358.500 |
1368.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2495.000 |
2586.000 |
1784.900 |
|
(e) Other
Non-current assets |
5955.500 |
6885.800 |
563.500 |
|
Total Non-Current
Assets |
14190.400 |
13814.400 |
5470.300 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
298.900 |
295.600 |
383.600 |
|
(c) Trade
receivables |
28600.000 |
26155.900 |
31025.100 |
|
(d) Cash
and cash equivalents |
9151.600 |
7582.300 |
9448.100 |
|
(e)
Short-term loans and advances |
4557.200 |
5247.200 |
5834.200 |
|
(f) Other
current assets |
7994.800 |
5428.700 |
294.900 |
|
Total
Current Assets |
50602.500 |
44709.700 |
46985.900 |
|
|
|
|
|
|
TOTAL |
64792.900 |
58524.100 |
52456.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
31071.700 |
34470.500 |
47502.900 |
|
|
|
Other Income |
54.400 |
52.600 |
191.200 |
|
|
|
TOTAL (A) |
31126.100 |
34523.100 |
47694.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
16933.600 |
21727.900 |
34484.200 |
|
|
|
Cost of Manufacturing and Construction |
6003.300 |
4475.600 |
4045.200 |
|
|
|
Other Direct Cost |
626.700 |
619.600 |
634.700 |
|
|
|
(Increase) / Decrease In Work In Progress |
(64.700) |
1.700 |
(32.600) |
|
|
|
Employee Benefits Expense |
1963.100 |
1710.500 |
1431.200 |
|
|
|
Other Expenses |
1276.300 |
1204.200 |
1538.600 |
|
|
|
TOTAL (B) |
26738.300 |
29739.500 |
42101.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4387.800 |
4783.600 |
5592.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1747.100 |
1354.200 |
604.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2640.700 |
3429.400 |
4988.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
185.700 |
161.100 |
168.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE
TAX (E-F) (G) |
2455.000 |
3268.300 |
4820.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
818.300 |
1033.100 |
1577.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
1636.700 |
2235.200 |
3242.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sales |
848.200 |
4545.100 |
11222.500 |
|
|
|
Services |
0.600 |
0.000 |
26.500 |
|
|
TOTAL EARNINGS |
848.800 |
4545.100 |
11249.00 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Components, Consumables and
Spares Parts |
2188.100 |
6529.800 |
18906.200 |
|
|
|
Capital Goods |
56.900 |
178.200 |
110.200 |
|
|
TOTAL IMPORTS |
2245.000 |
6708.000 |
19016.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
22.68 |
30.98 |
44.97 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.26
|
6.47 |
7.18 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.90
|
9.48 |
10.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.02
|
5.82 |
9.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.29 |
0.51 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.80
|
1.57 |
1.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35
|
1.30 |
1.57 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
721.600 |
721.600 |
721.600 |
|
Reserves & Surplus |
8776.000 |
10424.100 |
11473.800 |
|
Net worth |
9497.600 |
11145.700 |
12195.400 |
|
|
|
|
|
|
long-term borrowings |
435.600 |
424.200 |
130.900 |
|
Short term borrowings |
12823.700 |
17025.700 |
21880.000 |
|
Total borrowings |
13259.300 |
17449.900 |
22010.900 |
|
Debt/Equity ratio |
1.396 |
1.566 |
1.805 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
47502.900 |
34470.500 |
31071.700 |
|
|
|
(27.435) |
(9.860) |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
47502.900 |
34470.500 |
31071.700 |
|
Profit |
3242.100 |
2235.200 |
1636.700 |
|
|
6.83% |
6.48% |
5.27% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
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 |
COMPANY OVERVIEW
Subejct is a public limited
company incorporated under the provisions of the Companies Act, 1956. Its
equity shares are listed on Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE). The company is a manufacturer of capital equipments for Power
Plants, Petrochemical Industries, Refineries, Process Industries and undertakes
turnkey Balance of Plant (BOP) and Erection Procurement and Construction (EPC)
contracts for Power plants. The Company has been achieving its objectives
through its five business units: Power projects, Electrical projects, Oil and
Gas equipment, Environmental engineering and Air Fin Coolers.
PERFORMANCE REVIEW
The Company successfully
bid for a BoP Contract from Odisha Power Generation Corporation Limited and the
resulting contract is expected to be received shortly in the current financial
year. The Company has achieved progress in the implementation of all ongoing
EPC and BoP project contracts viz., Kalisindh (2 X 600 MW EPC), Marwa (2 x 500
MW BoP), Mettur (1 X 600 MW EPC), Chandrapur (2 x 500 MW BoP), Nawapara (2 X
300 MW EPC), Krishnapatnam (2 X 660 MW BoP).
In respect of break-through
contracts in Super Critical technology space secured through NTPC’s bulk tender
process for supply of 6 units of 660 MW steam generators to Solapur (2 X 660),
Meja (2 x 660) and DVC-Raghunathpur (2 X 660), the company is executing
engineering works and commenced manufacturing activities in collaboration with
BGR Boilers Private Limited and Hitachi Power Europe. Similarly, the contract
for supply of 2 x 800 MW Steam Turbine and Generator to Lara project is being
executed in collaboration with BGR Boilers Private Limited and Hitachi Japan.
During the year, Electrical
Project Division has commissioned all 4 units of 33 MW Hydroelectric project
for NHPC at Teesta, Siliguri, West Bengal as e-BoP contractor and this is the
first hydroelectric project carried out by the Company. The Division has
completed over 4750 KM of OPGW stringing under LIVE-LINE conditions on EHV
transmission lines rated up to 400 KV which was spread over 10 States of India.
This Division is executing e-BoP contract for 4 units of 700 MW Nuclear
projects of Nuclear Power Corporation. The company has taken steps to qualify
for e-BoP projects including EHV switchyards for Ultra Mega Power projects for
which tenders are being floated by clients.
Air Fin Cooler division has
achieved growth in profit by 38% compared to the previous financial year and
this is the second consecutive year to achieve more than 30% growth in profit.
The company received major orders from IOCL for Paradip Refinery and BPCL,
Siemens for NMDC project in Chattisgarh. The company supplied equipment to
International clients/markets, including GPS, Al-Hassan, Toledo, Dodsal, CCC,
SiadMi and AlKhorayef. The company has successfully completed IBR Tube Bundles
for IOCL – Paradip with shortest lead time of 5 months. Opportunities in Indian
market have been very poor as no new refineries came up in the year 2012-13.
However, there are signs of improvement with expansion of two major refineries viz.,
BPCL and Reliance Jamnagar and they are expected to open up good business in
the current financial year. The company would lay focus on business prospects
in new markets like Nigeria, South East Asia and North Africa and repeat orders
from clients.
Environment Engineering
Division has bagged a prestigious order from Dodsal for 2 x 700 MW Deaerator
Package for Khakrapara- NPCIL project. This, when executed, will be the largest
Deaerator in India surpassing the earlier largest one supplied by your Company
to NPCIL. During FY 2012-13, the company firmly established itself as a
significant market player in Condensate Polishing Units. Oil and Gas Equipment
division posted muted performance due to competition and constraints in bidding
for large projects due to lack of pre-qualification. The Company has adopted
strategy to tie-up with global technology majors and bid for large EPC and LSTK
projects. The benefits of this market approach will be realized in the years to
come.
INDIAN POWER SECTOR
SCENARIO
The Policy emphasis laid by
the Govt. of India to the power sector in the preceding years, has facilitated
setting up of additional power generation capacity in the country. Bulk tenders
invited by NTPC for 11 units of 660 MW and 9 units 800 MW Super-critical Steam
Generators and Steam Turbine Generators have played a critical role in
catalyzing the sector.
Some of the major
challenges affecting the Power sector generation capacity addition are:
1. Availability of land
2. Lack of firm commitment on
fuel supply and unpredictable pricing of imported fuel (coal/gas)
3. Slow and tedious process
of environmental clearances linked with clearance for coal mines
4. Deteriorating financial
health of State Power Utilities
There is a significant back
log of new power projects which are held up for either grant of fuel linkages
or for conversion of assured linkages to firm Fuel Supply Agreements. Some of
these projects (without Fuel Supply Agreements) are already under advanced
stages of construction. Even many completed projects are awaiting fuel supply
to start generation. It is being reported that around 7-8% of the installed
base of the country 223 GW is idle because of either lack of fuel (coal and
gas) or evacuation challenges. Most of the IPPs on the planning stage which had
called for bids have either shelved their plans or have put them on hold due to
the reasons mentioned above. The combined effect of all the above created
serious short term concerns for the entire power sector and all its stake holders.
As an immediate impact the market size for new power projects has shrunk and as
a result competition has become very intense impacting margins of contracts for
new power projects.
Mounting losses of the
State Utility/Discom companies have severely impacted the cash flow of projects
under implementation. This also adversely impacts financing of new power
projects. The Financial Restructuring Plan implemented by the Central
Government in late 2012 is expected to improve financial health of the State Utility/
Discoms and could become harbinger for overall improvement of Power sector.
Despite the huge challenges
and shrinking market size, the company has closed the year with healthy order
book of over Rs.110000.000 Millions.
FUTURE OUTLOOK, THE YEAR
AHEAD
The challenges in Power
sector are still persisting. However, considering the fact that power being the
most crucial component of economic growth and sustenance the current challenges
are expected to be resolved sooner than later. Thermal power projects will
constitute almost 2/3rd of the new power projects in the next decade and almost
all coal based power projects will be based on super-critical technology.
The Company will continue to play a
significant role in its area of strength and in the short term the company will
focus projects which are free of present bottlenecks and is confident of
securing large value BoP and equipment contracts and in the near term keep
itself agile to the supercritical technology based power projects.
The company’s design and
Engineering strength and proven execution track record will help the Company to
weather the current market conditions and stay nimble footed so as to avail of
opportunities when the sector’s fortunes turn around. In this backdrop, the
company has taken initiatives to explore overseas power project prospects, with
a specific emphasis on Middle East markets, where a number of gas power
projects are coming up.
The underlying aspects of
the slow growth phase bottoming out and promise of latent power demand in the
country are the silver lining for the sector and the company will continue to
play a significant role in the development of the power infrastructure of the
country.
MANAGEMENT DISCUSSION &
ANALYSIS
HIGHLIGHTS OF FY 2012-13
During the year the Company
has received Notification of Award from NTPC/DVC for supply of 6 units of 660
MW Super Critical Steam Generator (Boiler) to Solapur, Meja and Raghunathpur
power stations. The company received a Notification of Award for supply of 2 x
800 MW Steam Turbines and Generators to Lara project.
In November, 2012 the
Company has signed a MOU with Government of Tamil Nadu to facilitate setting up
of manufacturing facilities (under JV with Hitachi Power Europe, Germany and
Hitachi Limited, Japan) for Boiler and Turbine units and to secure package of
concessions from the State Government.
INDUSTRY OUTLOOK
The Indian power sector is
making slow but steady progress even with peak power deficit of 9% (around 12,000
MW) in 2012-13 and continuing concerns on environment, land and fuel
availability. Only a total of 20,662 MW of generation capacity was added during
the past year including 15,154 MW based on thermal source.
During the year, there has
been a drastic slowdown in new project announcement and delays in award of
contracts for large power projects by Central and State utilities and
Independent power producers on account of variety of reasons including
non-availability of natural gas, coal linkage, abnormal increase in price of
imported coal, land acquisition, environmental clearance and poor financial
health of State Discoms. These factors adversely affected the economics of
power generation, which in turn has drastically reduced the market potential for
power plant EPC contractors and equipment manufacturers in the last fiscal
year. This is the 3rd year in a row where orders from IPP and State
utilities have been deferred.
The Government of India,
State and Central utilities continue to give greater importance of adopting
Super critical technology in all fossil fuel based power plants to ensure high
efficiencies and lower emission. In 12th plan period, around 30% of the
targeted coal based power projects will be based on Super critical technology
and in the 13th plan period (2017-2022) all coal based projects are likely to
be based on super critical technology.
On the policy front,
Government of India has taken steps for speedy clearance for greenfield
projects, Financial restructuring scheme for discoms, introduction of
compensation tariff packages, pooling of domestic and imported coal prices.
These steps are expected to revive investment in new capacities in the coming
years.
In supercritical technology
based power projects, Engineering, Procurement and Construction (“EPC”) route
is expected to be the preferred route. It is also expected that clients will
prefer BOP Package over the multiple package route on account of the inherent
advantages in dealing with single vendor instead of multiple vendors.
With government thrust on
formulating policies to facilitate investments in power generation super
critical technologies expected to become the order of the day and experience
gained after execution on turnkey super critical projects, we expect good order
flow from the power sector in coming years.
OPERATIONAL PERFORMANCE
The BoP, EPC and
Construction segment has achieved a turnover of Rs.28680.000 Millions. The
Capital Goods Segment registered a turnover of Rs.2390.000 Millions during the financial year
2012-13.
As regards EPC contract of
1 x 600 MW Mettur TPS for TANGEDCO, synchronization is completed and full load
achieved with coal firing.
The project progress with
respect to BoP contracts of 2 x 500 MW Marwa TPP (CSPGCL), 2 x 500 MW Chandrapur
STPS (MAHAGENCO) and EPC contract of 2 x 600 MW Kalisindh STPS (RRVUNL) are
satisfactory and commissioning is expected during FY ‘14. Progress on 2 x 660
MW Krishnapatnam TPP (TPCIL) is as per schedule and commissioning is expected
during FY ‘15.
During the year, execution
of EPC contract of 2 x 300 MW TPP (TRN Energy) has commenced. The design
engineering work for NTPC Projects are progressing well. The Package orders for
Long lead items have also reached substantial progress. The site work for
Solapur and Meja projects have commenced. Being an EPC Organisation, Project
Management is of paramount importance and therefore, this year, They had
substantially strengthened their project management teams through induction of
senior level resources. The company has augmented various resources required
for timely completion of contracts including equipments and manpower.
Despite tough market
conditions, Air Fin Cooler division maintained the turnover achieved during FY
2011-12 with a significant jump in profit by 24% compared to last year. New
orders booked during the year were Rs.1120.000 Millions including first orders
received from various Middle East and Europe based EPC customers. Despite
slowing growth in world markets, the division has drawn up plans to maintain
its growth momentum during FY 2013-14 with specific focus on replacement market
and spares supply opportunities in India and export orders from Middle East and
Europe.
The progress on the NPCIL
contract being executed by Electrical Project Division (EPD) is satisfactory.
The OPGW market holds good opportunity for the next 3-4 years and EPD is
aggressively positioning itself to bag sizable orders during FY ’14. EPD has
taken steps to qualify for eBoP projects including EHV switchyards for Ultra
Mega Power projects.
Environmental Engineering
Division booked orders for Rs.680.000 Millions during FY 2012-13, registering a
growth of 88% over last financial year.
INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY
FIXED ASSETS:
·
Land
·
Buildings
·
Plant
and Equipment
·
Furniture
and Fixtures
·
Office
Fixtures
·
Office
Equipments
·
Electrical
Installations
·
Vehicles
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 records 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 : |
NYA |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES/NO |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.