MIRA
INFORM REPORT
|
Report Date : |
05.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
KEC INTERNATIONAL LIMITED |
|
|
|
|
Registered
Office : |
RPG House, 463, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
18.03.2005 |
|
|
|
|
Com. Reg. No.: |
11-152061 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.514.177
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L45200MH2005PLC152061 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMK11457F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACK4279J |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is primarily engaged in engineering,
procurement and construction (EPC) business. Subject designs, manufactures,
tests, supplies, and erects transmission lines on turnkey basis; it also manufactures
power cables, jelly filled telecom cables, and optical fiber cables; provides
end to end solutions in the design, manufacturing, and erection of telecom
towers to operators, and tower management companies and utilities. |
|
|
|
|
No. of Employees
: |
Approximately 5283
permanent employees (the KEC Group - including subsidiaries and joint
ventures) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 41288000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a
well-established and reputed company having a fine track record. Financial
position of the company seems to be decent. Trade relations
are reported to be fair. Business is active. Payment terms are reported to be
regular and as per commitment. 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
NEWS
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the share goes up further in the
coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes that many things such as apartment
sales, luxury products, etc. were largely bought with dirty money. And it is
now beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20%! Equities came in second with annualized
return of 15.5%! However, while these returns may seem mouthwatering, the fact
is that the return from equities adjusted for inflation came down to just 7.1
%.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs.10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Proposed commercial paper (CP) issue : A1 |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
13.05.2014 |
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
31-03-2014.
INFORMATION DECLINED
Management non-cooperative
(Tel. No.: 91-22-66670200)
LOCATIONS
|
Registered Office/ Power Transmission - International/ Power Systems/
Water Plant : |
1st Floor, RPG House, 463, Dr. Annie Besant Road, Worli,
Mumbai – 400 030, Maharashtra, India |
|
Tel. No.: |
91-22-66972777/ 28204045/ 66670200/ 66670297 |
|
Fax No.: |
91-22-66972799/ 28204052/ 66670299/ 66670287/ 66670260 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Transmission – South Asia/ Power Systems – South Asia /Railways
/Telecom Plant : |
8th Floor, Building No 9A, DLF Cyber City Phase III,
Gurgaon – 122 002, Haryana, India |
|
Tel. No.: |
91-124-6757555 |
|
|
|
|
Cables Plant : |
6th Floor, RPG House, 463, Dr. Annie Besant Road, Worli,
Mumbai – 400 025, Maharashtra, India |
|
Tel. No.: |
91-22-66670300/ 305 |
|
|
|
|
Tower Manufacturing Facilities (Plant 1) : |
Nagpur: B-190, M.I.D.C. Industrial Estate, Butibori, Nagpur – 441 108,
Maharashtra, India |
|
Tel. No.: |
91-7104-662209 |
|
|
|
|
Tower Manufacturing Facilities (Plant 2) : |
Jaipur: Plot No.14-15, Jhotwara Industrial Area, Jhotwara,
Jaipur – 302 012, Rajasthan, India |
|
Tel. No.: |
91-141-2340214/ 6700201 |
|
|
|
|
Tower Manufacturing Facilities (Plant 3) : |
Jabalpur: Deori Village, PO: Panagar, Jabalpur – 483 220,
Madhya Pradesh, India |
|
Tel. No.: |
91-761-2350024/ 25/ 40 |
|
|
|
|
Cable Manufacturing Facilities (Plant 1) : |
Thane: 2nd Pokhran Road, Thane – 400 601, Maharashtra, India |
|
Tel. No.: |
91-22-21731743 |
|
|
|
|
Cable Manufacturing Facilities (Plant 2) : |
Mysore: 349, Hebbal Industrial Area, Hootagalli, Belavadi
Post, Mysore – 570 018, Karnataka, India |
|
Tel. No.: |
91-821-2402401/ 6553375 |
|
|
|
|
Cable Manufacturing Facilities (Plant 3) : |
Silvassa: Plot No.273/4, Demni Road, Dadra, Silvassa – 396
193, Dadra
and Nagar Haveli, India |
|
Tel. No.: |
91-260-2668518/ 6618500 |
|
|
|
|
Cable Manufacturing Facilities (Plant 4) : |
Vadodara: Village Godampura (Samalya), Taluka – Savli,
Vadodara – 391 520, Gujarat, India |
|
|
|
|
Overseas Plant 1 – Transmission : |
Mexico Arco Vial Saltillo-Nuevo
Laredo Km. 24.1, C.P. 66050-79 Escobedo, N. L. Mexico |
|
|
|
|
Overseas Plant 2 – Transmission : |
Brazil R. Moacyr G. Costa, 15 -
Jd. Piemont Sul 32669-722 - Betim / MG, Brazil |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
|
Address : |
14-16, Patazzo B.G. Khar Marg, Mumbai – 400 008, Maharashtra, India |
|
Qualification : |
Arts Graduate and BA, MBA ( |
|
|
|
|
Name : |
Mr. R. D. Chandak |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
B/44, Ruia Park, 47, J.R. Mahatro Road, Juhu, Mumbai – 400 049,
Maharashtra, India |
|
Qualification : |
M. Com., FCA |
|
|
|
|
Name: |
Mrs. Sobha Singh Thakur |
|
Designation: |
Director |
|
Address: |
1161, Abdul Court, Flat No.20, Suryavanshi Marg, Dadar, Mumbai – 400
028, Maharashtra, India |
|
Qualification: |
M. Com., CAIIB |
|
|
|
|
Name: |
Mr. Gulu Lalchand Mirchandani |
|
Designation: |
Director |
|
Address: |
22, Paras, Little Gibs Road, Malabar Hill, Mumbai – 400 006,
Maharashtra, India |
|
Qualification: |
B. Mechanical |
|
|
|
|
Name : |
Mr. Dilip G. Piramal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sharad Madhav Kulkarni |
|
Designation : |
Director |
|
Qualification : |
Bachelor of Engineering : FIE ( |
|
|
|
|
Name: |
Mr. Ajit Teckchand Vaswani |
|
Designation: |
Director |
|
Address: |
502, Solitalre Hirandani Gardens, Powai, Mumbai – 400 076,
Maharashtra, India |
|
Qualification: |
CA, CS |
|
|
|
|
Name : |
Mr. S. M. Trehan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V.
R. Chatterjee |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ch. V. Jagannadha Rao |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Vimal Kejriwal |
|
Designation : |
President
- Transmission and Distribution Business |
|
|
|
|
Name : |
Mr.
Rakesh Amol |
|
Designation : |
President
- Infrastructure Business |
|
|
|
|
Name : |
S.
Venkatesh |
|
Designation : |
Executive
Director - Human Resource |
|
|
|
|
Name : |
Mr.
Nikhil Gupta |
|
Designation : |
Executive
Director - Cables |
|
|
|
|
Name : |
Mr.
Randeep Narang |
|
Designation : |
Executive
Director - South Asia (Transmission and Distribution) |
|
|
|
|
Name : |
Stanley
Breitweiser |
|
Designation : |
Chief Executive Officer - SAE Towers |
|
|
|
|
Name : |
Mr. Dilip
Shukla |
|
Designation : |
Chief
Executive - Water |
|
|
|
|
Name : |
Mr. Rajeev
Dalela |
|
Designation : |
Chief
Executive - Railways |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
7863191 |
3.06 |
|
|
120707929 |
46.95 |
|
|
128571120 |
50.01 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
128571120 |
50.01 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
69080184 |
26.87 |
|
|
308335 |
0.12 |
|
|
8121001 |
3.16 |
|
|
12541653 |
4.88 |
|
|
5480 |
0.00 |
|
|
5480 |
0.00 |
|
|
90056653 |
35.03 |
|
|
|
|
|
|
10917601 |
4.25 |
|
|
|
|
|
|
23745700 |
9.24 |
|
|
1699257 |
0.66 |
|
|
2098039 |
0.82 |
|
|
879423 |
0.34 |
|
|
497534 |
0.19 |
|
|
721077 |
0.28 |
|
|
5 |
0.00 |
|
|
38460597 |
14.96 |
|
Total
Public shareholding (B) |
128517250 |
49.99 |
|
Total
(A)+(B) |
257088370 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
257088370 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Foreign Bank
BUSINESS DETAILS
|
Line of Business : |
Subject is primarily engaged in engineering,
procurement and construction (EPC) business. Subject designs, manufactures,
tests, supplies, and erects transmission lines on turnkey basis; it also
manufactures power cables, jelly filled telecom cables, and optical fiber
cables; provides end to end solutions in the design, manufacturing, and
erection of telecom towers to operators, and tower management companies and
utilities. |
||||||||
|
|
|
||||||||
|
Products/ Services : |
|
GENERAL INFORMATION
|
No. of Employees : |
Approximately 5283 permanent
employees (the KEC Group - including subsidiaries and joint ventures) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
India ·
Bank of India ·
Abu Dhabi Commercial Bank ·
Allahabad Bank ·
Axis Bank Limited ·
Bank of Baroda ·
Barclays Bank Plc ·
Central Bank of India ·
Corporation Bank ·
Dena Bank ·
Export-import Bank of India ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Punjab National Bank ·
Standard Chartered Bank ·
State Bank of Bikaner and Jaipur ·
State Bank of Hyderabad ·
State Bank of India ·
Syndicate Bank ·
The Hongkong and Shanghai Banking Corporation
Limited ·
The Royal Bank of Scotland N.V. ·
Yes Bank limited ·
Kotak Mahindra Bank limited ·
Punjab and Sind Bank ·
The Dhanlaxmi Bank limited US ·
JP Morgan Chase Bank, N.A. ·
Wells Fargo Bank, N.A. Mexico ·
Banco Nacional de Mexico, S.A. ·
Grupo Financiero BBVA Bancomer ·
Banco Santander Brazil ·
HSBC Bank Brasil S/A ·
Banco Bradesco S/A ·
Banco Itau BBA S/A ·
Banco Santander S/A ·
Citibank S/A |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes: LONG-TERM
BORROWINGS Term loans from banks : (a) Rs.559.700 millions (Previous Year
Rs.839.550 millions) secured
by first charge on movable assets of Telecom Division including Telecom
Towers, both present and future. The term loan is repayable in remaining 8
equal quarterly installments by January 25, 2016 and carries interest rate of
7.25% p.a. (b) Rs.249.956 millions (Previous Year
Rs.583.156 millions) secured
by way of first charge on fixed assets situated at Mysore (Previous Year: at
Thane and Mysore). The term loan is repayable in remaining 3 equal quarterly
installments by December 9, 2014 and the present interest rate is 11.75 %
p.a. (c) Rs. NIL (Previous Year Rs.126.000 millions) secured by way of first
charge on land, building and plant and machinery situated at Jaipur. (d) Rs.170.776 millions (Previous Year
Rs.285.492 millions) secured
by first charge on movable fixed assets i.e. construction equipment
pertaining to the Transmission, Distribution and Railway business situated at
various project sites in India, both present and future. The term loan is
repayable in remaining 6 equal quarterly installments by September 27, 2015
and the present interest rate is 10.50% p.a. (e) Rs. NIL (Previous Year Rs.370.000 millions) collaterally secured by
first charge to be created on land, building and plant and machinery situated
at Thane and Mysore. (f) Rs.726.500 millions (Previous Year
Rs.470.000 millions) secured
by first charge created / to be created on land, building and plant and
machinery situated at Jabalpur and Nagpur factories. The term loan is
repayable in remaining 18 quarterly structured installments by September 28,
2018 and the present interest rate is 11.10% p.a. (g) Rs.500.000 millions (Previous Year Rs.
NIL) secured by first charge to be created on land, building and plant and
machinery situated at Jaipur factory. The term loan is repayable in 20
quarterly structured installments commencing from June 30, 2014 and the
present interest rate is 11.70% p.a. Term loans from other
parties includes : (a) Rs.188.462 millions (Previous Year
Rs.296.154 millions) secured
by first charge over the fixed assets pertaining to Tower Testing Station
situated at Nagpur both present and future. The term loan is repayable in
remaining 7 equal quarterly installments by December 09, 2015. The term loan
of Rs.107.692 millions and
Rs.80.770 millions carry
interest of 12.15% p.a. and 12.25% p.a. respectively. (b) Rs.0.102 million (Previous Year Rs.0.344 million) secured by hypothecation of
vehicles. The term loan is repayable in remaining 9 equal monthly
installments by December 11, 2014 and carries interest rate of 13.20% p.a. (c) Rs.824.782 millions (Previous Year
Rs.1033.478 millions) secured
by exclusive first charge on the project assets including immovable
properties at Cable factory, Vadodara both present and future. The term loan
is repayable in remaining 16 equal quarterly installments by March 20, 2018
and the present interest rate is 12.00% p.a. SHORT-TERM
BORROWINGS Loans repayable on demand
from banks : (a) Rs.7040.786 millions (Previous Year
Rs.3773.919 millions) secured
by first charge by hypothecation of all the present and future current assets
excluding those covered (a) above and first charge to be created on flat
situated at Juhu, Mumbai of the Company and second charge created on the
Company’s fixed assets situated at Jaipur, Jabalpur and Nagpur factories. The
present interest rates are in the range of 10.75% to 15.75% p.a. (b) Rs.1005.686 millions (Previous Year
Rs.348.843 millions)
guaranteed by banks, which in turn is secured by security (a) above. The
present interest rate is 3.21% to 3.32% p.a. (c) Rs.385.098 millions (Previous Year Rs.239.545 millions) secured by assignment of
certain overseas book debts. The present interest rates are in the range of
3.31% to 3.65% p.a. Other short-term
borrowings : (a) From Banks (i) Rs.1302.666 millions (Previous Year
Rs.7,055.75 lacs) secured by security (a) above. The present interest rates
are in the range of 1.18% to 2.33% p.a. (ii) Rs. NIL (Previous Year Rs.250.000 millions) being commercial paper
issued against stand by facility from a bank which in turn was secured by
security. Maximum balance outstanding any time during the year is Rs.250.000 millions (Previous Year Rs.500.000 millions) (iii) Rs.778.440 millions (Previous Year
Rs.1139.423 millions) secured
by security. The present interest rates are in the range of 3% to 3.50% p.a. (b) From other parties Rs.500.000 millions (Previous Year
Rs.497.100 millions) secured
by security. The present interest rate is 10.60% p.a. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institutions : |
IDBI
Trusteeship Services Limited, Asian Building, Ground Floor, 17 R. Kamani
Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskin
and Sells Chartered Accountants |
|
Address : |
Mumbai, |
|
Tel No.: |
91-22-61854000 |
|
Fax No.: |
91-22-61854501/4601 |
|
|
|
|
Subsidiaries-wholly owned: |
·
RPG Transmission Nigeria Limited, Nigeria ·
KEC Global FZ – LLC, Ras UL Khaimah ·
Jay Railway Projects Private Limited ·
KEC Investment Holdings, Mauritius ·
KEC Global Mauritius, Mauritius ·
KEC Power India Private Limited ·
KEC International Holdings LLC, USA ·
KEC Brazil LLC, USA ·
KEC Mexico LLC, USA ·
KEC Transmission LLC, USA ·
KEC US LLC, USA ·
SAE Towers Holdings, LLC, USA ·
SAE Towers Brazil Subsidiary Company LLC, USA ·
SAE Towers Mexico Subsidiary Holding Company LLC, USA ·
SAE Towers Mexico S de RL de CV, Mexico ·
SAE Towers Brazil Torres de Transmission Ltda, Brazil ·
SAE Prestadora de Servicios Mexico, S de RL de CV, Mexico ·
SAE Towers Limited, USA ·
SAE Towers Panama Holdings LLC, USA ·
SAE Towers Panama S de RL, Panama ·
SAE Engenharia E Construcao Ltda, Brazil (Incorporated on October 29,
2012) ·
SAE Engineering and Construction Services, S de RL de CV (Incorporated
on November 8, 2013) ·
KEC International (Malaysia) SDN BHD (Incorporated on April 19, 2013) |
|
|
|
|
Associate: |
RP
Goenka Group of Companies Employees Welfare Association (incorporated on May
21, 2012) |
|
|
|
|
Subsidiaries: |
·
RPG Transmission Nigeria Limited, Nigeria ·
KEC Global FZ – LLC, Ras UL Khaimah ·
Jay Railway Projects Private Limited ·
KEC Investment Holdings, Mauritius ·
KEC Power India Private Limited ·
SAE Towers Mexico S de RL de CV, Mexico |
|
|
|
|
Joint Ventures: |
·
Al-Sharif Group and KEC Limited Company, Saudi Arabia (formerly known
as Faiz Abdul Hakim Al-Sharif Group and KEC Company Limited, Saudi Arabia) ·
EJP KEC Joint Venture, South Africa ·
KEC - ASSB JV, Malaysia ·
KEC - ASIAKOM – UB JV ·
KEC - ASIAKOM JV ·
KEC - JEI JV ·
KEC - DELCO - VARAHA JV ·
KEC - VARAHA - KHAZANA JV ·
KEC - VALECHA - DELCO JV ·
KEC - SIDHARTH JV ·
KEC - TRIVENI - KPIPL JV ·
KEC - UNIVERSAL JV ·
KEC - DELCO - DUSTAN JV ·
KEC - ANPR - KPIPL JV ·
KEC - PLR - KPIPL JV ·
KEC - BJCL JV ·
KEC - KIEL JV ·
KEC - ABEPL JV ·
KEC - TNR INFRA JV ·
KEC - SMC JV ·
KEC - WATERLEAU JV |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
550000000 |
Equity Shares |
Rs.2/- each |
Rs.1100.000 millions |
|
1500000 |
Redeemable Preference
Shares |
Rs.100/- each |
Rs.150.000 millions |
|
|
Total |
|
Rs.1250.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
257088370 |
Equity Shares |
Rs.2/- each |
Rs.514.177
millions |
|
|
|
|
|
Notes:
Reconciliation of number of equity Shares and amount outstanding at the
beginning and at the end of the year:
|
Particulars |
31.03.2014 |
|
|
Nos. |
Amount (Rs. in
millions) |
|
|
Equity Shares: |
|
|
|
Outstanding at the
beginning of the year |
257088370 |
514.177 |
|
Add : Shares
issued during the year |
-- |
-- |
|
Outstanding as at the end of the year |
257088370 |
514.177 |
Shareholders holding more than 5% equity Shares in the company as at the
end of the year:
|
Name of the
shareholder |
31.03.2014 |
|
|
Nos. of Shares
Held |
Percentage of
shares held |
|
|
Swallow Associates LLP *# |
69546616 |
27.05 |
|
Summit
Securities Limited * |
26974152 |
10.49 |
|
HDFC Trustee Company Limited A/c
(AAATH1809A) |
23282899 |
9.06 |
|
Instant Holdings Limited * |
16223856 |
6.31 |
|
Life
Insurance Corporation of India (AAACL0582H) |
15213235 |
5.92 |
|
Reliance Capital Trustee Co. Limited (AAATR0090B) |
13553280 |
5.27 |
# Swallow Associates Limited
has been converted into a Limited Liability Partnership w.e.f. October 31, 2012
and thereafter is known as Swallow Associates LLP.
*
Shares held in Multiple Folios have been combined.
|
Particulars |
31.03.2014 Nos. |
|
Equity Shares of
Rs.2 each allotted in 2010-11 to the shareholders of the erstwhile RPG Cables
Limited pursuant to the Scheme of Amalgamation. |
10365340 |
3750 fully paid-up Equity
Shares of Rs.2 each were allotted to a trustee against 1688 equity shares of the
erstwhile RPG Transmission Limited (RPGT), since merged in the Company in
2007-08, where rights were kept in abeyance under section 206A(b) of the
Companies Act, 1956 by RPGT. On settlement of the relevant court cases/issues,
the Equity Shares issued to the trustee will be transferred.
The Company has only one
class of Equity Shares having a face value of Rs.2 each. Every member shall be
entitled to be present, and to speak and vote and upon a poll the voting right
of every member present in person or by proxy shall be in proportion to his
share of the paid-up equity share capital of the Company. The Company in
General Meeting may declare dividends to be paid to members, but no dividends
shall exceed the amount recommended by the Board, but the Company in General
Meeting may declare a smaller dividend.
In the event of liquidation
of the Company, the holders of Equity Shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential
amounts.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
514.177 |
514.177 |
514.177 |
|
(b) Reserves & Surplus |
9807.801 |
9252.078 |
9478.434 |
|
(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) |
10321.978 |
9766.255 |
9992.611 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
2140.947 |
2810.708 |
2770.253 |
|
(b) Deferred tax liabilities (Net) |
730.832 |
804.220 |
666.120 |
|
(c) Other long
term liabilities |
100.000 |
100.000 |
100.000 |
|
(d) Long-term
provisions |
99.037 |
97.905 |
170.526 |
|
Total Non-current
Liabilities (3) |
3070.816 |
3812.833 |
3706.899 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
11012.676 |
6954.405 |
3246.358 |
|
(b)
Trade payables |
28601.507 |
22263.202 |
18813.323 |
|
(c)
Other current liabilities |
6205.883 |
8200.847 |
8936.325 |
|
(d) Short-term
provisions |
1096.940 |
773.543 |
780.500 |
|
Total Current
Liabilities (4) |
46917.006 |
38191.997 |
31776.506 |
|
|
|
|
|
|
TOTAL |
60309.800 |
51771.085 |
45476.016 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
6775.481 |
7091.212 |
5394.742 |
|
(ii)
Intangible Assets |
1393.541 |
1515.482 |
1598.391 |
|
(iii)
Capital work-in-progress |
90.155 |
213.064 |
1076.861 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
63.796 |
63.747 |
62.113 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1934.039 |
1173.950 |
1177.696 |
|
(e) Other
Non-current assets |
1066.714 |
858.103 |
672.330 |
|
Total Non-Current
Assets |
11323.726 |
10915.558 |
9982.133 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
3333.441 |
2855.015 |
3180.153 |
|
(c)
Trade receivables |
33357.202 |
26226.632 |
22142.418 |
|
(d) Cash
and cash equivalents |
902.397 |
618.986 |
941.285 |
|
(e)
Short-term loans and advances |
4497.743 |
4767.835 |
3672.670 |
|
(f) Other
current assets |
6895.291 |
6387.059 |
5557.357 |
|
Total
Current Assets |
48986.074 |
40855.527 |
35493.883 |
|
|
|
|
|
|
TOTAL |
60309.800 |
51771.085 |
45476.016 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
65587.669 |
55920.770 |
46043.338 |
|
|
|
Other Income |
829.739 |
206.414 |
851.330 |
|
|
|
TOTAL (A) |
66417.408 |
56127.184 |
46894.668 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
34662.256 |
30963.122 |
25099.319 |
|
|
|
Changes in inventories of finished goods, work-in-progress and scrap |
(530.884) |
(45.734) |
(183.003) |
|
|
|
Erection and Sub-contracting Expenses |
16654.591 |
13518.645 |
10826.098 |
|
|
|
Employee Benefit Expenses |
3215.148 |
2891.081 |
2417.922 |
|
|
|
Other Expenses |
7857.724 |
6282.725 |
4478.850 |
|
|
|
Exceptional Items - VRS Expenditure |
181.642 |
1.376 |
9.783 |
|
|
|
TOTAL (B) |
62040.477 |
53611.215 |
42648.969 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4376.931 |
2515.969 |
4245.699 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2314.201 |
1648.063 |
1337.066 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2062.730 |
867.906 |
2908.633 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
554.175 |
430.550 |
360.485 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
1508.555 |
437.356 |
2548.148 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
652.702 |
391.772 |
729.761 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
855.853 |
45.584 |
1818.387 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
6361.525 |
6470.889 |
5192.894 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to General Reserve |
85.585 |
4.558 |
181.839 |
|
|
|
Proposed Dividend on Equity Shares |
154.253 |
128.544 |
308.506 |
|
|
|
Tax on distributed profits |
26.215 |
21.846 |
50.047 |
|
|
BALANCE CARRIED
TO THE B/S |
6951.325 |
6361.525 |
6470.889 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on F.O.B. basis |
8809.619 |
7568.151 |
76113.23 |
|
|
|
Freight recovered on sales |
327.882 |
597.782 |
370.969 |
|
|
|
Tower testing charges and design charges |
170.342 |
70.264 |
250.667 |
|
|
|
Sales and Services: overseas projects |
19871.603 |
18029.026 |
11854.397 |
|
|
|
Interest income |
1.373 |
3.651 |
0.489 |
|
|
|
Dividend income from a wholly owned subsidiary |
702.332 |
40.425 |
272.189 |
|
|
|
Guarantee Charges received from a wholly owned subsidiary/joint
venture |
10.901 |
55.547 |
0.000 |
|
|
|
Others (Insurance claims, etc.) |
24.875 |
12.403 |
16.307 |
|
|
TOTAL EARNINGS |
29918.927 |
26377.249 |
88878.248 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
3020.539 |
3105.956 |
2567.117 |
|
|
|
Spares Parts / Dies and Tools |
49.508 |
35.059 |
47.292 |
|
|
|
Purchase of Capital Goods |
318.541 |
363.884 |
539.396 |
|
|
TOTAL IMPORTS |
3388.588 |
3504.899 |
3153.805 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic |
3.33 |
0.18 |
7.07 |
|
|
|
Diluted |
3.33 |
0.18 |
7.07 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
1.29 |
0.08 |
3.88 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.30 |
0.78 |
5.53 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.51 |
0.85 |
5.75 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.04 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.27 |
1.00 |
0.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04 |
1.07 |
1.12 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
514.177 |
514.177 |
514.177 |
|
Reserves & Surplus |
9478.434 |
9252.078 |
9807.801 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
9992.611 |
9766.255 |
10321.978 |
|
|
|
|
|
|
Long-term borrowings |
2770.253 |
2810.708 |
2140.947 |
|
Short term borrowings |
3246.358 |
6954.405 |
11012.676 |
|
Total borrowings |
6016.611 |
9765.113 |
13153.623 |
|
Debt/Equity ratio |
0.602 |
1.000 |
1.274 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from operations (Net) |
46043.338 |
55920.770 |
65587.669 |
|
|
|
21.452 |
17.287 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from operations (Net) |
46043.338 |
55920.770 |
65587.669 |
|
Profit |
1818.387 |
45.584 |
855.853 |
|
|
3.95% |
0.08% |
1.30% |
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 |
10484445 |
04/04/2014 * |
750,000,000.00 |
IDBI TRUSTEESHIP SERVICES
LIMITED |
ASIAN BUILDING, GROUND FLOOR,
17 R KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
C03665882 |
|
2 |
10304824 |
07/04/2012 * |
1,200,000,000.00 |
EXPORT - IMPORT BANK OF
INDIA |
SAKAR II, NEAR
ELLISBRIDGE SHOPPING CENTRE, ASHRAM ROAD, ELLISBRIDGE, AHMEDABAD, GUJARAT -
380006, |
B38080842 |
|
3 |
10259513 |
22/12/2010 |
400,000,000.00 |
PUNJAB AND SIND BANK |
BANK HOUSE, 21, RAJANDER
PLACE, NEW DELHI, DELHI - 110001, INDIA |
B02638922 |
|
4 |
10257075 |
03/05/2011 * |
350,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
FLOOR 21, CENTRE ONE
BUILDING, WORLD TRADE CENTRE, |
B13160270 |
|
5 |
10230820 |
06/11/2013 * |
1,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES
LIMITED |
ASIAN BUILDING, GROUND FLOOR,
17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B90497728 |
|
6 |
10198804 |
16/04/2014 * |
106,500,000,000.00 |
BANK OF INDIA |
MID CORPORATE BRANCH, 5
B.T.M SARANI, BRABOURNE ROAD, KOLKATA, WEST BENGAL - 700001, INDIA |
C05476775 |
|
7 |
10160904 |
26/03/2013 * |
88,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES
LIMITED |
ASIAN BUILDING, GROUND
FLOOR, 17 R KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B72811367 |
|
8 |
10108502 |
25/06/2008 |
220,815,331.43 |
THE PRADESHIYA INDUSTRIAL
AND INVESTMENT CORPORATION |
PICUP BHAWN, GOMTI NAGAR,
LUCKNOW, UTTAR PRADESH - |
A40843278 |
|
9 |
10090177 |
20/02/2008 |
84,613,115.00 |
THE PRADESHIYA INDUSTRIAL
AND INVESTMENT CORPORATION OF U. P. LIMITED (PICUP) |
PICUP BHAVAN, GOMTI
NAGAR, LUCKNOW, UTTAR PRADESH - 226010, INDIA |
A33585571 |
|
10 |
10068109 |
06/08/2007 |
811,130,000.00 |
ICICI BANK LIMITED |
LANDMARK RACE COURCE CIRCLE,
ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
A23550973 |
* Date of charge modification
AWARDS
RECEIVED DURING THE YEAR
For FY 14 the Company was
conferred with the ‘Utkrishta Puraskar’ i.e. Best Transmission Line Company Award
and ‘Sahbhagita Puraskar’ i.e. Support Outside Line of Duty Award from Power
Grid Corporation of India Limited. Further the Company also won the
prestigious, “Best Employer Award, 2013” by Aon Hewitt and the “Indo-American
Corporate Excellence Award” by the Indo- American Chambers of Commerce for best
Indian company operating in US.
MANAGEMENT DISCUSSION AND
ANALYSIS
About the Company
The Company is an
infrastructure EPC major with presence in Power Transmission and Distribution
(T&D), Cables, Railways and Water. The business is spread across 50
countries in South Asia, the Middle East, Africa, Central Asia, the Americas
and Southeast Asia.
Economy and Power Sector
Review
A. global economic scenario
Global economic recovery is
gradually strengthening. The feeble growth experienced by most of the economies
across the world during the period 2008–2013 is gradually fading. The developed
economies are gaining traction and emerging market economies are seeing revival
mainly on account of increased exports and stable domestic demand. Policy
measures combined with implementation of structural reforms are expected to
boost growth in the coming years. The global economy is projected to grow from
2.4% in 2013 to 3.1% in 2014 and 3.3% in 2015.
Indian economic scenario
The Indian economy
continued to grow at moderate levels of 4.9% in FY14 (E) and 4.5% in FY13. As
compared to the high growth levels of 8-10% during earlier years, the sub 5% growth
in last two years was primarily due to high inflationary pressures, policy
related issues and consequence of slow growth experienced by certain advanced
economies.
During FY14, the
agriculture sector witnessed growth backed by good monsoons. Overall exports
witnessed growth and imports declined due to which trade deficit narrowed.
Taking a macro perspective, the outlook is positive. The Government of India
has undertaken several reform measures, including the clearance of several
large infrastructure projects. The prospects of revival of global economy also
further point to a better outlook for the Indian economy.
Power Sector Review
A country’s economic growth
is directly correlated with the growth of power sector which in turn depends on
continuous availability and uninterrupted supply of electricity. The power
scarcity coupled with growing global demand is driving substantial investments
in Power Generation which necessitates investments in Transmission and
Distribution (T&D) infrastructure for efficient and reliable availability
of power. Total investment needs for T&D from 2010 to 2035 are envisaged at
USD 1.8 trillion and USD 5.2 trillion, respectively. Apart from
generation-linked T&D projects, old existing network replacements, grid strengthening
and grid interconnections are also likely to drive demand.
Around 22% of the world’s
population still does not have access to electricity of which about 29.3%
reside in South Asia (including India) and about 65.4% live in Sub-Saharan
Africa. The per capita power consumption in these regions is also very low as
compared to the world average. For the growth of these regions, development of
power infrastructure is a necessity. This translates into abundant development
opportunities for the Company. The Company is present in most countries of
these regions so that it can meet the huge requirement of power infrastructure
investments.
Industry outlook and
opportunities across businesses and related geographies
This section highlights the
industry outlook and opportunities in each of the Company’s Business - Power
Transmission and Distribution, Cables, Railways and Water.
Power Transmission and
Distribution Business – Outlook and Opportunities
This is the largest
business vertical of the Company. KEC has global leadership position in the
power transmission space and increasing presence in power distribution space.
This business is spread across various regions. Region-wise outlook and
opportunities in this business are as follows:
I. South Asia (India)
India’s rapidly growing
population combined with increasing urbanisation and industrialisation requires
uninterrupted and sufficient supply of power. The Indian Power sector, although
having grown substantially in last few decades, has always seen demand
significantly higher than its supply, rendering India a power deficit country.
The 12th (2012-17) and 13th (2017-2022) five year plans provide growth
opportunities for the Indian power sector and more specifically for the Indian
Transmission and Distribution sector.
The planned transmission
line capacity addition and distribution capacity addition during the 12th five
year plan envisages an investment of around Rs.1800000.000 millions and
Rs.3062350.000 millions respectively.
The growth in intra-state
networks, which falls under the State Electricity Boards (SEBs) and their
transmission utilities (STUs) has not been able to match the inter-state
capacity addition due to financial constraints. However, towards the end of
2012 the Government of India (GoI) cleared the restructuring program for SEBs.
Some of the SEBs are in the process of restructuring their debt, a move which
is likely to expedite progress of this sector and provide opportunities for
power and its ancillary industries.
The Government is also
encouraging private sector participation in the T&D sector. They are
incrementally seeing projects being awarded through competitive bidding
processes on BOO / BOOT / BOOM model.
Challenges:
The sector continues to face challenges like inadequate fuel linkages for
generation capacity additions, land acquisition (right of way), statutory
clearances and poor financial health of SEBs.
Telecom Business: The Company also provides installation of optical fibre networks and
telecom towers. The GoI had approved establishing of National Optical Fibre
Network (NOFN) in October 2011 to provide broadband connectivity to the
Country’s 250,000 Gram Panchayats. The Government plans to use existing
networks of Bharat Sanchar Nigam Limited (BSNL), Railtel and PGCIL for this
purpose. The total investment for this is estimated at Rs.200000.000 millions.
II. South Asia Region (SAARC excluding India)
The region suffers from
energy deficiency. The Company’s presence in the region has been increasing.
During the year, it secured orders from Bhutan, Bangladesh, Afghanistan and
Nepal. It expects to benefit from encouraging investment opportunities, strong
local presence and execution experience in the region. Further, India’s cross
border electricity transmission interconnections with Bangladesh, Sri Lanka,
Nepal and Bhutan are also being expanded to facilitate power trade between the
countries.
III. The MENA Region
The MENA region is
experiencing a rise in power demand led by strong economic and demographic
growth associated with rapid urbanisation and strong industrial growth in the
region. The region is also diversifying fuel sources and investing in solar
power generation. International Energy Agency (IEA) expects the region’s power
generation contribution from renewable sources to increase from 3% currently to
7% by 2030.
Gulf Cooperation Council
(GCC) Countries – The GCC countries expect to invest USD 10.7 billion in
transmission networks during 2013 to 2017. Saudi Arabia, the region’s largest
market, has the highest power demand followed by UAE. They have planned several
large power generating projects, including nuclear power plants. Besides,
Kuwait and Oman have also announced their plans to expand transmission lines
network to meet the growing power demand.
North Africa – Although in
recent years, investment in this region was stagnant due to political turmoil,
the scenario is gradually improving. With restoration of stability, power
investment being the basic growth fundamental, is expected to be one of the key
focus areas in the region.
IV. Rest of Africa Region excluding North Africa
Africa faces energy deficit
and has significant growth potential. The region’s per capita electricity consumption
in the year 2011 (535 kWh v/s World average of 3,044 kWh) was one of the lowest
globally and over two-third of its population is still without access to
electricity. This makes the continent a region with under-exploited energy
resources and under-served demand, compared to the rest of the world.
Various multilateral
funding agencies are allocating funds for new projects in this region. Further,
various cross border transmission line interconnections are also being planned
to improve power transmission infrastructure and create an efficient energy
exchange among the countries.
V. Central Asia Region
Central Asia continues to
be a high potential market with increasing electricity demand due to its
growing industrial sector. Many of the countries in this region are facing
electricity supply issues due to weak financial situations. However several
initiatives supported and funded by multilateral institutions are being
undertaken to expand and upgrade the region’s soviet-era power infrastructure.
VI. North America and Latin America Region
North America - The North
America transmission system needs investment to build new lines as well as
upgrade and refurbish the existing
network as existing transmission grid
is ageing due to under-investment in transmission infrastructure.
About 21,800 circuit miles
of transmission lines are planned to be added between 2013 and 2023. In other
words, assuming USD 1 million investments per mile, an investment of USD 2.2
billion per year would be required for the next 10 years.
In the US, many states have
issued the Renewable Portfolio Standards regulation. This directive mandates
electricity suppliers to produce a specified portion of their electricity from
renewable energy sources. In Canada, new generation sources in Alberta and new
hydroelectric generation expansion continue to contribute for an increased
transmission lines demand.
Latin America – In this
region, majority of the Company’s business comes from Brazil and Mexico.
Brazil, the largest market in Latin America, covers nearly half of the
continent of South America. Brazil’s Government plans to build about 51,578
kilometers of transmission lines between 2013 and 2022. In Mexico, the
state-owned Comisión Federal de Electricidad (CFE) owns and operates transmission
lines. The Company plans to focus on transmission line projects to evacuate
power from wind power generation, mostly in the southeast and the northeast
regions. About 4,000 circuit miles are planned between 2014 and 2019 in the
Country.
VII. Southeast Asian Region
South East Asian countries
per-capita energy use is still low and 134 million people lack access to
electricity. The region is projected to need an additional 250,000 km of
transmission lines and 4,000,000 km of distribution lines to connect end-users
between 2011 and 2035. Many countries in this region have formulated plans to
increase their power generation capacity and grid expansion. KEC has
consolidated its position in the region with current presence in Indonesia,
Philippines, Malaysia, Laos and Cambodia.
Cables Business – Outlook
and Opportunities
The Company manufactures
power cables and telecom cables, with the former constituting a significant
part of its cable business.
After a lean period in
FY13, the power cables market experienced modest growth of 10-12% during FY14
(E). The growth was mainly driven by increasing investments in underground
distribution network and cable exports.
Power Cables:
The GoI’s aggressive investment targets during the 12th five year plan,
especially in the power distribution segment and investments by State
Electricity Boards (SEBs) post restructuring is likely to provide sizable
growth opportunities. The GoI’s technology upgradation initiative is also
resulting in higher demand for High Voltage (HV) and Extra High Voltage (EHV)
cables. The cable demand is further likely to experience a boost once the SEBs
are financially restructured.
Telecom Cables: The Government has initiated its broadband network expansion plans
through Bharat Broadband Network Limited (BBNL) which is likely to increase
demand for optic fibre cables. Further, optic fibre demand will also be
supported by higher investment in India’s telecom space.
Railways Business – Outlook
and Opportunities
The Company is an integrated
player and undertakes projects related to civil and track works,
electrification and signalling works. Presently, the Company’s business mainly
comes from conventional railway projects but it is also looking at relevant
opportunities in Dedicated Freight Corridors and Metro Railway projects.
Capacity expansion, network
expansion, upgradation and modernisation planned by the Indian Railways are
expected to provide impetus to this sector. The 12th five year plan envisages a
total investment of Rs.6433790.000 millions (including Metro Rail). This amount
is 164% more than 11th Five Year Plan’s projected target and around 229% more
than 11th five year plan’s actual investments (latest estimate). The Company’s
addressable market is about 10% of the targeted investment.
Dedicated Freight Corridors
(DFC): Presently, two DFCs are being developed in India the Western DFC (1,483
kms.) and the Eastern DFC (1,839 kms.). Tenders for these projects are being
awarded in various phases. The Company is pre-qualified in certain packages of
these projects and plans to bid selectively in consortium with other partners.
Mass Rapid Transit System (MRTS): Increasing urbanisation, population density
and strain on existing transport infrastructure have necessitated investments
in the modern MRTS (metro and mono rails). The Delhi metro’s success has set
the stage for developing more metro networks across the country. There are many
projects on advance stage of planning and implementation in India especially in
‘B’ class cities. KEC plans to participate in this space in joint venture with
internationally recognized eligible partners.
Water Business – Outlook
and Opportunities
The Company focuses on
projects related to Water Resource Management (WRM) as well as Water and Waste
Water Treatment.
Although around 70% of the
earth’s surface is covered with water, the distribution of water is uneven and
it is a scarce resource in many parts of the world. In India, water demand is
likely to go up from current 710 billion cubic meters (BCM) to 1,093 BCM by
2025 due to rise in population, higher industrial consumption and increase in
command area under irrigation. On the other hand, the availability of the
utilizable water is 1,123 BCM out of which large part of it is lost due to surface
evaporation and flowing to sea.
The GoI has allocated
highest investment (after power) in 12th five year plan for
developing infrastructure related to Irrigation and Water Supply and
Sanitation. It envisages investment of Rs.5043710.000 millions for Irrigation
related projects and Rs.2553190.000 millions for Water Supply and Sanitation
related projects.
OPERATIONAL PERFORMANCE
·
The
Company closed its Cable Manufacturing Facility at Thane and successfully
completed Voluntary Retirement Scheme (VRS) for the employees at the facility.
·
The
order book increased to Rs.102000.000 millions, registering a growth of 7.71%.
The year’s total order intake has increased by 13.33% to Rs.84820.000 millions.
The orders were spread across all business verticals and geographies.
·
The
Company continues to expand its geographical presence. During the year it
entered Tanzania.
·
Secured
orders from South Asia (India, Nepal, Sri Lanka, Bangladesh), Americas (United
States, Mexico, Canada, Brazil), MENA (Saudi Arabia, Oman, UAE), Africa
(Tanzania, Uganda, Kenya, Nigeria, Tunisia, South Africa), Central Asia
(Afghanistan, Kazakhstan, Turkmenistan) and Southeast Asia (the Philippines,
Malaysia, Indonesia).
·
Secured
large value orders in Tanzania (Rs.7720.000 millions), Saudi Arabia
(Rs.7080.000 millions - KEC share) and Afghanistan (Rs.5900.000 millions).
·
Power
T&D business increased its portfolio in substation space. It secured an
order worth Rs.1020.000 millions for the establishment of 400 kV Gas Insulated Substations
(GIS) in Bihar. In addition to this, it also increased substation business
geographical presence by securing orders from Laos, Philippines, Malaysia,
Saudi Arabia and Afghanistan during the year.
·
SAE
Towers increased its pole manufacturing capacity from 5,000 MTs / per annum to
12,000 MTs / per annum. It also forayed into EPC business in Brazil and secured
two transmission line orders of Rs.940.000 millions.
·
Railway
business secured a composite order from the Rail Vikas Nigam Limited, India for
electrification, civil works, signalling and telecommunication works in the
state of Uttar Pradesh. The order of Rs.2280.000 millions.
·
Water
business secured two Sewage Treatment orders in Bangalore and Uttarakhand of
total Rs.2050.000 millions. In addition to this, it also secured its first ever
Dam construction order in Madhya Pradesh of Rs.990.000 millions. Further, it
secured Canal construction orders in Madhya Pradesh of Rs.750.000 millions.
CONTINGENT
LIABILITIES:
(a) Claims against the Company not
acknowledged as debts:
|
Nature
of Claims |
Relating to various years
comprise in the period |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
1.
Sales Tax / Value Added Tax* (Tax/Penalty/Interest) |
1993–2012 1993–2011 |
659.987 |
492.031 |
|
2.
Excise Duty * (Tax/Penalty/Interest) |
1994–2014 1994–2013 |
340.822 |
262.936 |
|
3.
Service Tax * (Tax/Penalty/
Interest) |
1998–2013 1998–2013 |
1698.340 |
1688.272 |
|
4.
Entry Tax * (Tax/Penalty/Interest) |
2001–2014 1995–2013 |
197.494 |
178.880 |
|
5. (i) Income Tax matters
mainly in respect of allowance of depreciation etc. relating to Power
Transmission Business acquired by the Company where during the year
Department has filed appeal in the Supreme Court |
A.Y. 2006-07 |
241.610 |
-- |
|
(ii) Income Tax matters
at overseas unit/s |
2002–2008 2000–2008 |
314.353 |
346.258 |
|
6. Customs Duty |
1995–1996 1995–1996 |
6.014 |
6.014 |
|
7. Civil Suits |
1993–2004 1993–2006 |
7.202 |
7.202 |
|
8. Demands of
employees/subcontractors |
Amount not determinable |
||
*These claims mainly relate
to the issues of applicability, issue of disallowance of cenvat / VAT credit
and in case of Sales Tax / Value added tax, also relate to the issue of submission
of relevant forms and the Company’s claim of exemption for MVAT on export sales
and services.
(b) Guarantees:
|
Particulars |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
1. Guarantees given to banks
for credit facilities extended/loans given to the wholly owned subsidiary
companies / a joint venture Rs.11902.409
millions (Previous Year Rs.10904.955 millions) Facilities/loans outstanding at the Year end |
5160.847 |
5235.285 |
|
2. Bank guarantees
provided by the Company to customers of the wholly owned subsidiary companies
in connection with the respective contracts awarded/bids made |
82.490 |
105.918 |
|
3. Performance guarantee provided
by the banks to the customer of the wholly owned subsidiary company by
utilising the Company’s credit facilities with the banks |
32.372 |
44.284 |
(c) Other money for which the Company is
contingently liable:
|
Particulars |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
1.
Bills Discounted |
622.162 |
426.303 |
|
2. Contingent liability
of Income Tax taken over by the Company in terms of the Composite Scheme of
Arrangement under which the Power Transmission Business was acquired by the
Company |
73.125 |
121.220 |
Future ultimate outflow of
resources embodying economic benefits in respect of the above matters are
uncertain as it depends on the final outcome of the matters involved.
FIXED ASSETS:
Tangible Assets
·
Freehold Land
·
·
Buildings
·
Plant and Machinery
·
Computers
·
Furniture and Fixtures
·
Electrical Installations
·
Vehicles
·
Computer Software
Intangible Assets
·
Brand
·
Computer Software
WEBSITE DETAILS:
PRESS RELEASES:
KEC INTERNATIONAL
LIMITED - UNAUDITED CONSOLIDATED RESULTS FOR Q1FY15
Mumbai, July 30, 2014: KEC International Limited (KEC),
a global infrastructure EPC major, an RPG Group company, today announced its
unaudited consolidated financial results for the quarter ended June 31, 2014.
Consolidated
Financial Performance
Net Revenue for the quarter stands at Rs.17210.000 millions as against Rs.17460.000 millions in the corresponding quarter of previous year.
EBITDA for the quarter stands at Rs.1020.000 millions as against Rs.880.000 millions in the corresponding quarter of previous year. EBITDA margin for the quarter increases to 5.9% as compared to 5.0% in the corresponding quarter of previous year.
Profit After Tax (PAT) for the quarter stands at Rs.110.000 millions as against net loss of Rs.90.000 millions in the corresponding quarter of previous year.
The order book currently stands at Rs.103250.000 millions as compared to Rs.100560.000 millions in the corresponding quarter of previous year.
About KEC
International Limited
KEC International is global infrastructure Engineering, Procurement and Construction (EPC) major. It has presence in the verticals of Power Transmission and Distribution, Cables, Railways and Water. The Company has powered infrastructure development in 52 countries across Africa, Americas, Central Asia, Middle East, South Asia and South East Asia. It is the flagship Company of the RPG Group.
About RPG
Enterprises
RPG Enterprises, established in 1979, is one of India's fastest growing business groups with turnover over Rs.180000.000 millions. The group has more than fifteen companies managing diverse business interests in the areas of Infrastructure, Tyre, IT and Specialty.
KEC INTERNATIONAL
WINS ORDERS OF RS.2460.000 MILLIONS
Mumbai, July 18, 2014: KEC International Limited (KEC),
a global infrastructure EPC major, an RPG Group company has secured new orders
of Rs.2460.000 millions in its Transmission AND Distribution and Cables
businesses. Details are as follows -
Transmission and
Distribution Businesses:
In this business, the Company has secured orders in India, the Americas, Philippines and Ghana amounting to Rs.1790.000 millions.
India: Order for supply, erection and civil works of 400 kV, 220kV and 66kV transmission lines. The order is secured from Karnataka Power Transmission Corporation Limited and the order value is Rs.1210.000 millions.
Americas: SAE Towers, the wholly owned subsidiary of the Company has secured orders for the supply of lattice towers, monopoles and hardware from the United States, Brazil and Mexico. The total value of these orders is Rs.200.000 millions.
In addition to the above, the Company has also secured orders in India, Philippines and Ghana of total Rs.380.000 millions.
Cables Business:
In this business, the Company has secured orders for the supply of Power and Telecom Cables. The total value of these orders is Rs.670.000 millions.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.02 |
|
|
1 |
Rs.102.69 |
|
Euro |
1 |
Rs.81.91 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.