MIRA INFORM REPORT
|
Report Date : |
14.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
ELECON ENGINEERING COMPANY LIMITED |
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Registered
Office : |
Anand, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
11.01.1960 |
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Com. Reg. No.: |
04-001082 |
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Capital
Investment / Paid-up Capital : |
Rs.217.872 Millions |
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CIN No.: [Company
Identification No.] |
L29259GJ1960PLC001082 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
BRDE00200E |
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PAN No.: [Permanent
Account No.] |
AAACE4644D |
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Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Exporter of Material Handling Equipment’s. |
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No. of Employees
: |
648 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Not Available |
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Comments : |
Subject is an established company having fine track. Financial position of the company seems to be sound. Trade relations are reported as fair. Business is active. Payment
terms are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities = A+ |
|
Rating Explanation |
Have adequate degree of safety and carry low
credit risk |
|
Date |
04.04.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry
lowest credit risk |
|
Date |
04.04.2014 |
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 DENIED BY
|
Name : |
Mr. Rajat Jain |
|
Designation : |
Vice President Finance |
|
Contact No.: |
91-2692-237016 |
|
Date : |
12.08.2014 |
LOCATIONS
|
Registered / Corporate Office : |
Anand, Sujitra Road, Vallabh Vidyanagar – 388120, Gujarat, India |
|
Tel. No.: |
91-2692-238701 / 02 / 03 / 04 / 227109 / 230166 |
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Mobile No.: |
91-9909917150 (Mr. Hemendra C. Shah) |
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Fax No.: |
91-2692-227484 / 227020 / 227484 |
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E-Mail : |
infogear@elecon.com |
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Website : |
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Area : |
25000 Sq. Ft |
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Location : |
Owned |
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Factory 1: |
Gear Division Anand – Sojitra Road, Vallabh Vidyanagar – 388120, Gujarat, India |
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Factory 2: |
Alternate Energy
Division Anand – Sojitra Road, Vallabh Vidyanagar – 388120, Gujarat, India |
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Factory 3 : |
Foundry Division
Post Box # 6, Vallabh Vidyanagar – 388120, Guajarati, India |
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Tel. No.: |
91-2692-236469 / 227546 |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Prayasvin B. Patel |
|
Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
54 Years |
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Qualification : |
B. E. (Mechanical), M.B.A. (U.S.A) |
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Experience : |
36 Years |
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Date of Appointment : |
01.07.1983 |
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Name : |
Mr. Prashant Amin |
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Designation : |
Director |
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Name : |
Mr. Pradip M. Patel |
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Designation : |
Director |
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Name : |
Mr. Chirayu R. Amin |
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Designation : |
Director |
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Name : |
Mr. Hasmuklal Parikh |
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Designation : |
Director |
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Name : |
Mr. Jal R. Patel |
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Designation : |
Director |
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Name : |
Mr. Jai S Diwanji |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Hemendra C. Shah |
|
Designation : |
Chief Financial Officer |
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Name : |
Mr. Paresh M. Shukla |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3176874 |
2.92 |
|
|
59165553 |
54.31 |
|
|
928492 |
0.85 |
|
|
928492 |
0.85 |
|
|
63270919 |
58.08 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
63270919 |
58.08 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
9608277 |
8.82 |
|
|
140017 |
0.13 |
|
|
278648 |
0.26 |
|
|
611671 |
0.56 |
|
|
0 |
0.00 |
|
|
10638613 |
9.77 |
|
|
|
|
|
|
3620116 |
3.32 |
|
|
|
|
|
|
24470128 |
22.46 |
|
|
4596090 |
4.22 |
|
|
2339977 |
2.15 |
|
|
448073 |
0.41 |
|
|
43880 |
0.04 |
|
|
1000535 |
0.92 |
|
|
413278 |
0.38 |
|
|
1500 |
0.00 |
|
|
432711 |
0.40 |
|
|
35026311 |
32.15 |
|
Total
Public shareholding (B) |
45664924 |
41.92 |
|
Total
(A)+(B) |
108935843 |
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) |
108935843 |
100.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Particular |
No.
of Shares |
Percentage
of Holding |
|
Emtici
Engineering Limited |
26775669 |
24.58 |
|
Prayas
Engineering Limited |
11166394 |
10.25 |
|
Power
Build Limited |
15960 |
0.01 |
|
Bipra
Investments and Trusts Private Limited |
5876621 |
5.39 |
|
Devkishan
Investments Private Limited |
1195779 |
1.10 |
|
Elecon Information
Technology Limited |
1946624 |
1.79 |
|
K B
Investments Private Limited |
10081125 |
9.25 |
|
Akaaish
Mechatronics Limited |
1786187 |
1.64 |
|
Speciality
Woodpack Private Limited |
160597 |
0.15 |
|
Wizard
Fincap Limited |
160597 |
0.15 |
|
Prayasvin
Bhanubhai Patel |
99962 |
0.09 |
|
Prayasvin
Bhanubhai Patel |
36019 |
0.03 |
|
Prayasvin
Bhanubhai Patel |
1190529 |
1.09 |
|
Prayasvin
B Patel on behalf on Bhanubhai I Patel HUF |
227490 |
0.21 |
|
Taruna
Patel |
191816 |
0.18 |
|
Trupti Pradip
Patel |
1431058 |
1.31 |
|
Prayasvin
B Patel (C/o. S I Patel Trust) |
928492 |
0.85 |
|
Total |
63270919 |
58.08 |
Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares
|
Particular |
No.
of Shares |
Percentage
of Holding |
|
ICICI Prudential Child Care P |
3744552 |
3.44 |
|
Tata
Trustee Co Limited A/c Tata Mutual
Fund A/c Tata Mid Cap Growth Fund |
1681569 |
1.54 |
|
UTI
Energy Fund |
1650000 |
1.51 |
|
Reliance
Cap Trustee Co Limited |
1500000 |
1.38 |
|
Total |
8576121 |
7.87 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Material Handling Equipments. |
GENERAL INFORMATION
|
No. of Employees : |
648 (Approximately) |
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Bankers : |
·
State Bank of India ·
Bank of Baroda ·
EXIM Bank of India ·
Axis Bank Limited ·
HDFC Bank Limited ·
IDBI Bank Limited ·
Standard Chartered Bank |
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Facilities : |
Long Term
Borrowings (a) Nature of
Securities i) 11% Non Convertible Debentures [(a) above] is secured by subservient charge on the Fixed Assets of the Company. ii) Term Loans [(b) above] obtained from Indusind Bank Limited & DBS Bank Limited is secured by exclusive charge by way of hypothecation on specific assets for which payments were made out of the term loan. Term Loans [(b) above] obtained from Axis Bank Limited is secured by
exclusive charge by way of hypothecation on specific assets for which
payments were made out of the term loan. Further collaterally secured by
Second Pari Passu charges over Fixed Assets of the Company except those
assets which are exclusively charged to Bank/FIs and Equitable Mortgage of
existing Land bearing Survey No. 365 and 366 of village Karamsad. Term Loans [(b) above] obtained from State Bank of India is secured by
exclusive charge by way of hypothecation on specific assets for which payments
were made out of the term loan and hypothecation of two wind turbine
Generator at Mota Gunda site, Dist.
Jamnagar. Further collaterally secured by Hypothecation charge on all
unencumbered Plant and Machinery of the Company, Corporate Guarantee of
Emtici Engineering Limited, Pledge of 34150 Equity Shares of Eimco Elecon (I)
Limited and 157850 Equity Shares of Elecon Engg. Co. Limited & Second
charges over Plant & Machinery. Term Loans [(b) above] obtained from Bank of Baroda is secured by
Equitable Mortgage of Land, Building, Office Purchased at Manjusar, Ta. Savli
were purchased out of the Term Loan & Second pari passu charge on entire
current assets of the Company present and future. iii)
Capital assets acquired on HP Loans from Banks
[(c) above] are secured by exclusive charge on respective assets purchased
through those loans. (b) Terms of repayment of 11% Non-Convertible Debentures, Term Loans
and Other Loans
Short Term
Borrowings i)
Nature of Securities {(a) Loans repayable on
demand} Working Capital Loans from banks (secured)
granted by Consortium of Banks consisting of State Bank of India (As Lead
Bank), Bank of Baroda, Exim Bank, HDFC Bank Limited, IDBI Bank Limited, Axis
Bank Limited and Standard Chartered Bank are secured by an equitable mortgage
on the immovable properties and hypothecation of movable plant and machinery
and assets of the Company’s Materials Handling Equipment Division and Gear
Division excluding certain assets specifically / exclusively charged to other
banks/ financial institutions but including the whole of the Company’s
currents assets, inventories, receivables and book debts ranking pari passu
inter se in respect of working capital facilities and guarantees issued by
them in favour of various clients of the Company. Fund based and Non- fund based Working Capital facilities granted by multiple banks consisting of Axis Bank Limited and Bank of Baroda are secured against hypothecation of entire current assets including stocks and book debts, both present as well as future, and second pari passu charge on fixed assets (excluding factory shed, office building and roads) of the Company present and future. The working capital limits with Axis Bank Limited are further collaterally secured by second pari pasu charge over Fixed Assets of the Company except those assets which are exclusively charged to Bank/FIs and equitable mortgage of existing Land bearing Survey No.365 and 366 of village Karamsad. |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Thacker Butala Desai Chartered Accountants |
|
Address : |
Navsari, Gujarat, India |
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Subsidiary Company : |
·
Elecon EPC Projects Limited ·
Elecon Transmission International Limited,
Mauritius ·
Elecon Singapore Pte. Limited ·
Elecon Middle East FZCO |
|
|
|
|
Step Down Subsidiaries : |
·
Benzlers Systems AB, Sweden ·
Radicon Transmission UK Limited, U.K. ·
AB Benzlers, Sweden ·
Elecon USA Transmission Limited, USA ·
Benzlers Transmission A.S., Denmark ·
Benzlers Antriebstechnik GmbH, Germany ·
Benzlers TBA B.V., Netherlands ·
Benzlers Antriebstechnik Gesmbh, Austria ·
OY Benzlers AB, Finland ·
Benzlers SDN BDH Malaysia ·
Benzlers Italia s.r.l. |
|
|
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|
Associates and Joint Ventures : |
·
Eimco Elecon (India) Limited (Joint Venture) ·
Elecon Australia Pty. Limited (Associate) ·
Elecon Africa Pty. Limited (Associate) ·
Elecon Engineering (Suzhou) Co. Limited, China
(Associate) ·
Elecon Peripherals Limited (Associate) |
|
|
|
|
Enterprises over which (d) or (e) above have significant influence : |
·
Bipra Investments and Trusts Private Limited ·
Devkishan Investments Private Limited ·
K. B. Investments Private Limited ·
Elecon Information Technology Limited ·
Emtici Engineering Limited ·
Prayas Engineering Limited ·
Specialty Wood Pack Private Limited ·
Power Build Limited ·
Kirloskar Power Build Gears Limited ·
Akaaish Mechatronics Limited ·
Madhubhan Prayas Resorts Limited ·
Wizard Fincap Limited ·
Eimco Elecon Electricals Limited ·
Excel EPC Projects Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
225000000 |
Equity Shares |
Rs.2/- each |
Rs.450.000 Millions |
|
25000000 |
Cumulative Redeemable Preference Shares |
Rs.2/- each |
Rs.50.000 Millions |
|
|
Total |
|
Rs.500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
92861510 |
Equity Shares |
Rs.2/- each |
Rs.185.723
Millions |
|
|
Share Suspense Account |
|
Rs.32.149
Millions |
|
|
Total |
|
Rs.217.872 Millions |
Reconciliation of the number of shares
outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
Number
of Shares |
|
Outstanding at the beginning of the Year |
92861510 |
|
Add : Issued During the year |
-- |
|
Outstanding at the end of the Year |
92861510 |
Rights, Preferences and
Restrictions attached to Equity Shares:
The
Company has only one class of Equity Shares having a par value of Rs.2/- per share. Each
shareholder is eligible for one vote per share held. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend.
In
the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential amounts,
in proportion to their shareholding.
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Emtici Engineering Limited |
26775669 |
24.58% |
|
Prayas Engineering Limited |
11166394 |
10.25% |
|
K. B. Investments Private Limited |
100851125 |
9.25% |
Aggregate number of equity
shares allotted as fully paid up pursuant to contract without payment being received
in cash Bonus Shares issued and shares bought back during the period of 5 years
immediately preceding the financial year:-
|
Equity Shares |
Number
of Shares |
|
Equity Shares allotted as fully
paid up bonus shares by capitalization of Share Premium
and Reserve |
61907673 |
|
Equity Shares allotted as fully
paid up on conversion of FCCB of Series ‘A’ 9,000 nos. of $ 1,000 each. |
2716787 |
|
Equity Share allotted as fully paid up shares by virtue of schemes of
arrangement |
16074333 |
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 |
217.872 |
217.872 |
185.723 |
|
(b) Reserves & Surplus |
4,699.070 |
4,543.499 |
4,262.011 |
|
(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) |
4,916.942 |
4,761.371 |
4,447.734 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
655.399 |
931.483 |
1,068.747 |
|
(b) Deferred tax liabilities (Net) |
391.048 |
416.079 |
446.728 |
|
(c) Other long term liabilities |
10.677 |
9.979 |
198.405 |
|
(d) long-term provisions |
19.606 |
25.095 |
39.745 |
|
Total Non-current Liabilities (3) |
1,076.730 |
1,382.636 |
1,753.625 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1,662.371 |
1,180.527 |
3,660.374 |
|
(b) Trade payables |
2,085.603 |
2,531.044 |
4,547.505 |
|
(c) Other current
liabilities |
730.335 |
775.067 |
2,160.441 |
|
(d) Short-term provisions |
152.167 |
161.532 |
223.946 |
|
Total Current Liabilities (4) |
4,630.476 |
4,648.170 |
10,592.266 |
|
|
|
|
|
|
TOTAL |
10,624.148 |
10,792.177 |
16,793.625 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
3,679.857 |
4,067.723 |
3,986.304 |
|
(ii) Intangible Assets |
58.472 |
40.253 |
65.560 |
|
(iii) Capital
work-in-progress |
67.090 |
77.888 |
417.137 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
370.688 |
370.688 |
351.100 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
414.775 |
239.691 |
273.906 |
|
(e) Other Non-current assets |
7.959 |
7.959 |
597.934 |
|
Total Non-Current Assets |
4,598.841 |
4,804.202 |
5,691.941 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1,212.503 |
1,486.515 |
2,881.508 |
|
(c) Trade receivables |
1,686.205 |
1,412.416 |
7,282.981 |
|
(d) Cash and cash
equivalents |
43.604 |
74.942 |
115.955 |
|
(e) Short-term loans and
advances |
138.609 |
738.465 |
781.067 |
|
(f) Other current assets |
2,944.386 |
2,275.637 |
40.173 |
|
Total Current Assets |
6,025.307 |
5,987.975 |
11,101.684 |
|
|
|
|
|
|
TOTAL |
10,624.148 |
10,792.177 |
16,793.625 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5,012.319 |
5952.07 |
13,316.719 |
|
|
|
Other Income |
175.537 |
111.083 |
74.279 |
|
|
|
TOTAL (A) |
5,187.856 |
6,063.153 |
13,390.998 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1,951.295 |
2,784.101 |
7,771.332 |
|
|
|
Changes in inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
269.737 |
232.360 |
70.731 |
|
|
|
Manufacturing expenses and Erection charges |
481.593 |
534.759 |
960.302 |
|
|
|
Employee benefits expense |
432.183 |
545.413 |
730.881 |
|
|
|
Other expenses |
876.814 |
828.335 |
1,756.011 |
|
|
|
Exceptional items |
0.000 |
266.829 |
0.000 |
|
|
|
TOTAL (B) |
4,011.622 |
5,191.797 |
11,289.257 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1,176.234 |
871.356 |
2,101.741 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
332.478 |
300.816 |
579.581 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
843.756 |
570.540 |
1,522.160 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
454.222 |
419.888 |
423.808 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
389.534 |
150.652 |
1,098.352 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
115.236 |
65.402 |
402.360 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
274.298 |
85.250 |
695.992 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
192.409 |
244.609 |
242.884 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
50.000 |
10.000 |
500.000 |
|
|
|
Dividend |
108.936 |
108.936 |
167.151 |
|
|
|
Tax on Dividend |
9.791 |
18.514 |
27.116 |
|
|
BALANCE CARRIED
TO THE B/S |
297.980 |
192.409 |
244.609 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Reduction Gears |
598.894 |
589.888 |
366.234 |
|
|
|
Servicing Income |
1.120 |
1.189 |
85.433 |
|
|
TOTAL EARNINGS |
600.014 |
591.077 |
451.667 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
36.097 |
451.733 |
560.726 |
|
|
|
Stores & Spares |
36.907 |
34.693 |
35.808 |
|
|
|
Capital Goods |
5.584 |
191.982 |
658.051 |
|
|
TOTAL IMPORTS |
78.588 |
678.408 |
1254.585 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.52 |
0.78 |
7.49 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
5.29 |
1.41 |
5.20 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.77 |
2.53 |
8.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.82 |
1.46 |
6.85 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.03 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.47 |
0.44 |
1.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.30 |
1.29 |
1.05 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs. In
Millions |
|
Share Capital |
185.723 |
217.872 |
217.872 |
|
Reserves & Surplus |
4262.011 |
4543.499 |
4699.070 |
|
Net
worth |
4447.734 |
4761.371 |
4916.942 |
|
|
|
|
|
|
long-term borrowings |
1068.747 |
931.483 |
655.399 |
|
Short term borrowings |
3660.374 |
1180.527 |
1662.371 |
|
Total
borrowings |
4729.121 |
2112.010 |
2317.770 |
|
Debt/Equity
ratio |
1.063 |
0.444 |
0.471 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
13,316.719 |
5,952.070 |
5,012.319 |
|
|
|
(55.304) |
(15.789) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs. In
Millions |
Rs.
In Millions |
|
Sales
|
13,316.719 |
5,952.070 |
5,012.319 |
|
Profit |
695.992 |
85.250 |
274.298 |
|
|
5.23% |
1.43% |
5.47% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
Rs.
In Millions
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Current maturities of long term debt |
240.729 |
409.595 |
399.710 |
|
Total |
240.729 |
409.595 |
399.710 |
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
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 |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOAN:
|
Particulars |
31.03.2014 Rs.
In Millions |
31.03.2014 Rs.
In Millions |
|
Long Term
Borrowings |
|
|
|
Other Loans |
0.000 |
26.405 |
|
Short Term
Borrowings |
|
|
|
Working Capital Loans
From Banks (Including Commercial
Paper) |
209.968 |
359.622 |
|
Other Loans From Related Parties |
1.700 |
27.550 |
|
Total |
211.668 |
413.577 |
Notes:
|
Lender |
31.03.2014 |
31.03.2013 |
Terms of Repayment |
|
Other Loans and Advances |
|
|
|
|
SREI Equipment Finance Limited |
0.000 |
26.405 |
Repayable in equated monthly installments. |
REVIEW OF
OPERATIONS
STANDALONE FINANCIAL PERFORMANCE
For the year ended
on 31st March, 2014, the Company has achieved a Turnover of Rs.5012.319
Millions as against Rs.5952.070 Millions in the previous year, representing
decrease in Turnover by 15.79%. The decline in turnover is because of slow down
in Indian economy. For the year ended on 31st March, 2014, the Company has
achieved Earnings before Interest (Finance Cost), Depreciation and Amortization
and Tax (EBIDTA) of Rs.1176.234 Millions as against the EBIDTA of Rs.1138.185
Millions during the previous year, representing increase in EBIDTA by 3.34%.
The Company holds total unexecuted orders worth Rs.2664.900 Millions. as on
March 31, 2014. This will help us to continue to have sustainable growth in
coming years.
FINANCIAL
PERFORMANCE
During the
financial year 2013 — 2014, the Company has achieved a Turnover of Rs.5012.319
Millions as against Rs.5952.070 Millions in the previous year. The decline in
turnover is because of slow down in Indian economy. For the year ended on 31st
March, 2014, the Company has achieved Earnings before Interest (Finance Cost),
Depreciation & Amortization and Tax (EBIDTA) of Rs.1176.234 Millions as
against the EBIDTA of Rs.1138.185 Millions during the previous year,
representing increase in EBIDTA by 3.34%.
OUTLOOK
The strengthening of
the recovery from the Great Recession in the advanced economies is a welcome
development. But growth is not evenly robust across the globe, and more policy
efforts are needed to fully restore confidence, ensure robust growth, and lower
downside risks. Policymakers in advanced economies need to avoid a premature
withdrawal of monetary accommodation.
The Global economy
is expected to grow at a pace of 3.0 per cent in 2014 and 3.3 per cent in 2015,
compared with an estimated growth of 2.1 per cent for 2013. According to the
United Nations World Economic Situation and Prospects 2014 (WESP) report,
inflation will remain tame worldwide, but the employment situation will
continue to be challenging.
A few large
emerging economies, including China and India, managed to backstop the
deceleration they experienced in the past two years and veered upwards
moderately. These factors point to increasing global growth. Global Industrial
Gear Motors and Drives market to grow at a CAGR of 4.98 percent over the period
2012-2016. One of the key factors contributing to this market growth is the
growth in the emerging markets. The Global Industrial Gear Motors and Drives
market has also been witnessing the increased demand for precision geared
products.
The investment
demand in India will pick up gradually in 2014-15, as the Cabinet Committee on
Investments (CCI) clears more and more projects. The land acquisition process
becomes easy post implementation of the new Land Acquisition Act. Fast tracking
of projects is expected to boost the construction activity in India, generate
new employment and create fresh demand for items like cement, steel and
machinery. Thus, the manufacturing sector is expected see a turnaround in
2014-15, registering a 2.8 per cent growth, as against a 0.5 per cent fall
estimated for 2013-14. The Gear Manufacturing market in India has also been
witnessing an increased outsourcing of manufacturing activities.
To put it in a
nutshell, the growth of the Indian economy is expected to improve in 2014-15.
But, the recovery will be mild and gradual.
UNAUDITED FINANCIAL RESULTS FOR THE THREE QUARTER ENDED 30TH JUNE 2014
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
|
|
30.06.2014 |
|
1.
Income from operations |
|
|
a) Net sales/ Income from operation (net of excise duty) |
947.987 |
|
b) Other operating income |
11.245 |
|
Total
income from Operations(net) |
959.232 |
|
2.Expenditure |
|
|
a. Cost of Material Consumed |
563.288 |
|
b. Purchase of Stock-in-trade |
0.000 |
|
c. Changes in inventories of
finished goods, work-in-progress and stock -in-trade |
(43.401) |
|
d. Employee benefits expense |
89.241 |
|
e. Depreciation and Amortisation expense |
139.915 |
|
f. Other
Expenses |
174.032 |
|
Total expenses |
923.075 |
|
3. Profit from operations before other income and
financial costs |
36.157 |
|
4. Other income |
58.380 |
|
5. Profit from ordinary activities before finance costs |
94.537 |
|
6. Finance costs |
76.079 |
|
7. Net profit/(loss) from ordinary activities after
finance costs but before exceptional items |
18.458 |
|
8. Exceptional item |
0.000 |
|
9. Profit from ordinary activities before tax
Expense: |
18.458 |
|
10.Tax expenses |
5.986 |
|
11.Net
Profit / (Loss) from ordinary activities after tax (9-10) |
12.472 |
|
12.Extraordinary Items (net of tax expense) |
0.000 |
|
13.Net Profit / (Loss) for the period (11 -12) |
12.472 |
|
14.Paid-up equity share capital (Nominal value Rs.10/- per share) |
217.872 |
|
15. Reserve excluding Revaluation
Reserves as per balance sheet of previous accounting year |
-- |
|
16.i) Earnings per share (before extraordinary
items) of Rs.10/- each) (not annualised): |
|
|
(a) Basic |
0.11 |
|
(b) Diluted |
0.11 |
|
ii) Earnings per share (after extraordinary items) |
|
|
(a) Basic |
0.11 |
|
(b) Diluted |
0.11 |
|
Particulars |
Quarter Ended ( Unaudited) |
|
|
30.06.2014 |
|
A. Particulars of shareholding |
|
|
1. Public Shareholding |
|
|
- Number of shares |
45664924 |
|
- Percentage of shareholding |
41.92% |
|
2. Promoters and Promoters group Shareholding- |
|
|
a) Pledged /Encumbered |
|
|
Number of shares |
6493850 |
|
Percentage of shares (as a % of total shareholding of the promoter
and promoter group) |
10.26% |
|
Percentage of shares (as a % of total share capital of the
company) |
5.96% |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
56777069 |
|
Percentage of shares (as a % of total shareholding of the promoter
and promoter group) |
89.74% |
|
Percentage of shares (as a % of total share capital of the
company) |
52.12% |
|
|
|
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Remaining unreserved at the end of the quarter |
Nil |
Notes:
1. The aforesaid financial results were reviewed by the Audit Committee at its meeting held on August 04, 2014 and taken on record and approved by the Board of Directors at its Meeting held on the same date.
2. The Statutory Auditors have carried out a "Limited Review" of the above Financial results of the Company,
3. In accordance with the previous of schedule II to the companies act 2013 effective from 1st April 2014, the company has revised the useful life of its fixed assets. As a consequence of such revision, the depreciation for the quarter is higher by around Rs.24.700 Millions. The difference in depreciation relating to past period as computed under the said schedule would be adjusted against the opening reserve at the time of final closure of accounts for the year.
4. Previous quarter's/year's figures have been regrouped / rearranged / recasted wherever necessary to make it comparable with the current quarter's/year's figures
5. The company has only one reportable primary business segment as per AS-17.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10436549 |
14/06/2013 |
1,000,000,000.00 |
Unit Trust Of India Investment Advisory Services Limited |
UTI Tower Gn Blockbandra Kurla Complex, Bandra East, Mumbai, Maharashtra - 400051, India |
B78341260 |
|
2 |
10384479 |
26/09/2012 |
850,000,000.00 |
Indusind Bank Limited |
2401 Gen Thimmayya Road, Contonment, Pune, Maharashtra - 411001, India |
B61326781 |
|
3 |
10332858 |
04/01/2012 |
480,000,000.00 |
DBS Bank Limited |
221, Fort House, 3rd Floor, D.N. Road, Fort, Mumbai, Maharashtra - 400001, India |
B30819676 |
|
4 |
10300859 |
11/07/2011 |
850,000,000.00 |
Indusind Bank Limited |
2401 Gen Thimmayya Road, Contonment, Pune, Maharashtra - 411001, India |
B18297473 |
|
5 |
10174489 |
19/03/2010 * |
1,150,000,000.00 |
IDBI BANK LIMITED |
Near Lal Bunglow, Off. C.G. Road, Ahmedabad, Gujarat - 380006, India |
A82978990 |
|
6 |
10127322 |
07/06/2010 * |
1,190,000,000.00 |
3i Infotech Trusteeship Services Limited |
3rd To 6th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai, Maharashtra - 400703, India |
A87001277 |
|
7 |
90102915 |
20/06/2013 * |
12,700,000,000.00 |
State Bank of India |
Corporate Accounts Group Branch, Near Mithakhali Six Roads, Navarangpura, Ahmedbad, Gujarat - 380009, India |
B78771896 |
FIXED ASSETS:
·
Land (Freehold)
·
Buildings
·
Plant and Machinery
·
Electrical Installations
·
Electrical Fittings
·
Office Equipments
·
Air Conditioning Plant
·
Sundry Equipments
·
Furniture and Fixtures
·
Vehicles
·
Site Office Equipment
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.61.08 |
|
UK Pound |
1 |
Rs.102.56 |
|
Euro |
1 |
Rs.81.78 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
65 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.