|
Report Date : |
12.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
LAKSHMI MACHINE WORKS LIMITED |
|
|
|
|
Registered
Office : |
Perianaickenpalayam, SRK Vidyalaya Post, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
14.09.1962 |
|
|
|
|
Com. Reg. No.: |
18-000463 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.112.665 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L29269TZ1962PLC000463 |
|
|
|
|
TAN No.: [Tax Deduction
& Collection Account No.] |
CMBL03078F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The company is engaged in the manufacturing and selling of textile
spinning machinery, CNC Machine Tools, Heavy castings and parts and
components. |
|
|
|
|
No. of Employees
: |
3495 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is a well-stablished company having
fine track record. The rating reflects company’s heathy
financial risk profile marked by adequate liquidity position and decent
profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal 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
N E W S
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 their 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 tat 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.
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 DENIED
Management Non Co-Operative (Tel No.: 91-422-6612255)
LOCATIONS
|
Registered Office / Marketing Department - Textile Machinery Division: |
Perianaickenpalayam, SRK Vidyalaya Post, Coimbatore –
641020, Tamilnadu, India |
|
Tel. No.: |
91-422-2692371-379 / 2892371-79 / 6612263 / 6612551/ 3022255/ 6612216/
6612207 |
|
Fax No.: |
91-422-2692541/ 542/ 543/ 2892541 / 42 |
|
E-Mail : |
|
|
Website : |
|
|
Location: |
Owned |
|
|
|
|
Corporate Office : |
34-A, Kamaraj Road, Coimbatore
- 641018, Tamilnadu, India |
|
Tel. No.: |
91-422-2221680/ 82-87/ 3028100 |
|
Fax No.: |
91-422-2220912 |
|
E-Mail : |
|
|
|
|
|
Factory 1: |
Perianaickenpalayam, Coimbatore – 641020, Tamilnadu, India |
|
|
|
|
Factory 2: |
Kaniyur, Coimbatore –
641658, Tamilnadu, India |
|
Tel. No.: |
91-421-3983000 |
|
Fax No.: |
91-421-2333270 |
|
|
|
|
Factory 3: |
Muthugoundenpudur, Coimbatore - 641406, Tamilnadu, India |
|
|
|
|
Factory 4: |
Wind Mill Division
Udumalpet (TK), Tirupur District, Tamilnadu, India |
|
|
|
|
Factory 5: |
Machine Tool Division, Foundry Division and Machine Shop
Arasur, Coimbatore –
641407, Tamilnadu, India |
|
Tel No: |
91-421-3021300 / 3022537 /
3983000/ 3022553/ 3022511
|
|
Fax No.: |
91-421-2360029 / 3022577
|
|
E mail: |
mtd_markteting@lmw.co.in
|
|
|
|
|
Factory 6: |
Advanced Technology Centre and Basic Training
Division Ganapathy, Coimbatore -
641006, Tamilnadu, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Sanjay Jayavarthanavelu |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
44 Years |
|
Qualification : |
MBA |
|
Experience : |
19
Years |
|
Date of Appointment : |
03.06.1994 |
|
|
|
|
Name : |
Mr. M.V. Subbiah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Pathy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Basavaraju |
|
Designation : |
Nominee Director of LIC |
|
|
|
|
Name : |
Mr. Aditya Himatsingka |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Mukund Govind Rajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. Sathyakumar |
|
Designation : |
Nominee Director of LIC |
|
|
|
|
Name : |
Mr. R. Rajendran |
|
Designation : |
Director Finance |
|
Date of Birth/Age : |
68 Years |
|
Qualification : |
B.Com; A C A |
|
Experience : |
42 Years |
|
Date of Appointment : |
01.04.1971 |
KEY EXECUTIVES
|
Name : |
Mr. K. Duraisami |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Ms. Nivetha |
|
Designation : |
Accounts Executive |
SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
302247 |
2.68 |
|
|
2891378 |
25.66 |
|
|
3193625 |
28.35 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3193625 |
28.35 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
1271740 |
11.29 |
|
|
3181 |
0.03 |
|
|
1406203 |
12.48 |
|
|
188214 |
1.67 |
|
|
2869338 |
25.47 |
|
|
|
|
|
|
2248413 |
19.96 |
|
|
|
|
|
|
1456890 |
12.93 |
|
|
848069 |
7.53 |
|
|
650169 |
5.77 |
|
|
7000 |
0.06 |
|
|
4500 |
0.04 |
|
|
240 |
0.00 |
|
|
76453 |
0.68 |
|
|
16010 |
0.14 |
|
|
545966 |
4.85 |
|
|
5203541 |
46.19 |
|
Total
Public shareholding (B) |
8072879 |
71.65 |
|
Total
(A)+(B) |
11266504 |
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) |
11266504 |
100.00 |
Individual shareholders holding nominal
share capital up to Rs.0.100 million
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the manufacturing and selling of textile spinning
machinery, CNC Machine Tools, Heavy castings and parts and components. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
3495 (Approximately) |
|
|
|
|
Bankers : |
·
Indian
Bank, Coimbatore Main Branch, Tamilnadu,
India Tel. No.: 91-422-2397758 ·
Bank of Baroda ·
Citibank N.A. ·
HDFC Bank ·
IDBI Bank ·
Standard
Chartered Bank ·
Bank of Nova
Scotia |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditor 1 : |
|
|
Name : |
M.S.
Jagannathan and Visvanathan Chartered Accountants |
|
Address : |
Coimbatore, Tamilnadu, India |
|
|
|
|
Statutory Auditor 2 : |
|
|
|
|
|
Name : |
Subbachar and Srinivasan Chartered Accountants |
|
Address : |
Coimbatore, Tamilnadu, India |
|
|
|
|
Wholly Owned Subsidiary: |
·
LMW
Textile Machinery (Suzhou) Company Limited |
|
|
|
|
Other related parties-Associates |
·
Dhanuprabha
Agro Private Limited ·
Mahalakshmi
Engineering Holdings Limited ·
Eshaan
Enterprises Limited ·
Quattro
Engineering India Limited ·
Harshini
Textiles Limited ·
Revantha
Holdings Limited ·
Hermes
Academy of Training Limited ·
Revantha
Builders Limited ·
Lakshmi Cargo
Company Limited ·
Revantha Agro
Farms Private Limited ·
LCC
Cargo Holdings Limited ·
Sowbarniha
Resorts Private Limited ·
Lakshmi Caipo Industries Limited ·
Sri Kamakoti Kamakshi Textiles
Private Limited ·
Lakshmi Engg and Environment Designs Limited ·
Sri Lakshmi Vishnu Plastics ·
Lakshmi
Electrical Drives Limited ·
Sudhsruti Agro
Private Limited ·
Lakshmi
Technology and Engg. Industries Limited ·
Super
Sales India Limited ·
Lakshmi Ring Travellers (CBE) Limited ·
Supreme
Dairy Products India Limited ·
Lakshmi
Electrical Control Systems Limited ·
Starline
Travels Limited ·
Lakshmi
Precision Tools Limited ·
Titan
Paints and Chemicals Limited ·
Lakshmi Life
Sciences Limited ·
Venkatavaradha
Agencies Limited ·
Lakshmi Vignesh Corporate Services Limited ·
Walzer Hotels
Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11266504 |
Equity Shares |
Rs.10/- each |
Rs.112.665
Millions |
1102746
equity shares of Rs.10 each were bought back
during the financial year 2010-11
Reconciliation of
number of shares
|
Equity Shares |
Number
of Shares |
|
Shares outstanding at the beginning of the year |
1102746 |
|
Shares issued during the year |
-- |
|
Shares
outstanding at the end of the year |
1102746 |
Shareholders holding more
than 5 percent Equity shares
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Lakshmi Cargo Company Limited |
1024218 |
9.09% |
|
Life
Insurance Corporation of India |
956783 |
8.49% |
|
Lakshmi Technology and Engineering Industries Limited |
66090 |
8.92% |
|
Voltas Limited |
600000 |
5.33% |
|
The
Lakshmi Mills Company Limited |
520000 |
4.62% |
The Company has issued only one class of Equity share having
a par value of Rs.10 per share. Each holder of Equity share is entitled
to one vote per share. The Company declares dividends in Indian Rupees. The
dividend proposed by the Board of Directors is subject to approval by the
shareholders at the Annual General Meeting
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 |
112.665 |
112.665 |
112.665 |
|
(b) Reserves & Surplus |
10,931.700 |
9,490.213 |
8,872.405 |
|
(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) |
11,044.365 |
9,602.878 |
8,985.070 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
26.443 |
129.019 |
228.706 |
|
(c) Other long term liabilities |
2,231.731 |
2,340.351 |
2,664.453 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
2,258.174 |
2,469.370 |
2,893.159 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
2,921.432 |
2,537.651 |
2,625.423 |
|
(c) Other current
liabilities |
3,538.971 |
3,040.438 |
3,632.371 |
|
(d) Short-term provisions |
463.305 |
297.777 |
696.805 |
|
Total Current Liabilities (4) |
6,923.708 |
5,875.866 |
6,954.599 |
|
|
|
|
|
|
TOTAL |
20,226.247 |
17,948.114 |
18,832.828 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
3,798.745 |
4,305.036 |
4,946.772 |
|
(ii) Intangible Assets |
30.696 |
60.869 |
28.846 |
|
(iii) Capital
work-in-progress |
27.318 |
132.097 |
103.074 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1,288.293 |
1,038.250 |
1,540.730 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
223.783 |
249.491 |
321.195 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
170.239 |
|
Total Non-Current Assets |
5,368.835 |
5,785.743 |
7,110.856 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2,806.269 |
2,257.027 |
2,153.218 |
|
(c) Trade receivables |
1,827.895 |
1,200.081 |
1,292.968 |
|
(d) Cash and cash
equivalents |
8,793.924 |
7,496.945 |
6,923.456 |
|
(e) Short-term loans and
advances |
927.639 |
864.130 |
1,071.200 |
|
(f) Other current assets |
501.685 |
344.188 |
281.130 |
|
Total Current Assets |
14,857.412 |
12,162.371 |
11,721.972 |
|
|
|
|
|
|
TOTAL |
20,226.247 |
17,948.114 |
18,832.828 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
22,416.230 |
19,171.301 |
21,134.524 |
|
|
|
Other Income |
1,154.845 |
787.156 |
845.077 |
|
|
|
TOTAL (A) |
23,571.075 |
19,958.457 |
21,979.601 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
14,216.298 |
12,014.973 |
13,051.096 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(269.580) |
(226.181) |
58.188 |
|
|
|
Employees benefits expense |
2,269.155 |
1,795.704 |
1,735.024 |
|
|
|
Other expenses |
3,636.683 |
3,486.198 |
3,711.751 |
|
|
|
Exceptional
item- Voluntary retirement scheme payments |
81.591 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
19,934.147 |
17,070.694 |
18,556.059 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3,636.928 |
2,887.763 |
3,423.542 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5.598 |
3.660 |
50.073 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3,631.330 |
2,884.103 |
3,373.469 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1,025.122 |
1,177.206 |
1,139.529 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2,606.208 |
1,706.897 |
2,233.940 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
769.284 |
532.102 |
863.764 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1,836.924 |
1,174.795 |
1,370.176 |
|
|
|
|
|
|
|
|
|
Less/ Add |
INVESTMENT FLUCTUATION
RESERVE |
155.675 |
(14.494) |
(200.453) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8846.508 |
8069.832 |
7694.820 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
185.000 |
120.000 |
140.000 |
|
|
|
Dividend |
337.995 |
225.330 |
563.326 |
|
|
|
Tax on Dividend |
57.442 |
38.295 |
91.385 |
|
|
BALANCE CARRIED
TO THE B/S |
10258.670 |
8846.508 |
8069.832 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
4755.906 |
2311.133 |
3214.996 |
|
|
|
Technical
Knowhow / Royalty income |
33.835 |
18.867 |
0.000 |
|
|
TOTAL EARNINGS |
4789.741 |
2330.000 |
3214.996 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
486.314 |
482.814 |
602.367 |
|
|
|
Components and Spares Parts |
2226.462 |
1619.691 |
2104.773 |
|
|
|
Capital Goods |
64.497 |
134.354 |
631.209 |
|
|
TOTAL IMPORTS |
2777.273 |
2236.859 |
3338.349 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
163.04 |
104.27 |
121.62 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
7.79 |
5.89 |
6.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.63 |
8.90 |
10.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.78 |
10.17 |
13.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24 |
0.18 |
0.25 |
|
|
|
|
|
|