MIRA INFORM REPORT
|
Report Date : |
03.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
KEC INTERNATIONAL LIMITED |
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Registered
Office : |
RPG House, 463, |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
18.03.2005 |
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Com. Reg. No.: |
11-152061 |
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Capital
Investment / Paid-up Capital : |
Rs. 514.177 Millions |
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CIN No.: [Company Identification
No.] |
L45200MH2005PLC152061 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMK11457F |
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PAN No.: [Permanent Account No.] |
AAACK4279J |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on the
Stock Exchange. |
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Line of Business
: |
Manufacturer of Transmission Line Tower. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having a good track
record. There seems drastic dip in the profitability during 2013. However, general financial strength seems to be strong. Liquidity
position is good. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for business dealings at usual trade
terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year
before.A sharp fall in gold imports due to restrictions on overseas purchases
and muted import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
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
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON – COOPERATIVE (91-22-66670200)
LOCATIONS
|
Registered Office / International Transmission : |
1st Floor, RPG House, 463, Dr. Annie Besant Road, Worli,
Mumbai – 400030, Maharashtra, India |
|
Tel. No.: |
91-22-66972777/ 28204045/ 66670200/ 66670297 |
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Fax No.: |
91-22-66972799/ 28204052/ 66670299/ 66670287/ 66670260 |
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E-Mail : |
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Website : |
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KEC
Manufacturing |
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Factory 1 : |
B-190, M.I.D.C. Industrial Estate, Butibori, Nagpur -
441108, Maharashtra, India |
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Tel. No.: |
91-7104-662209 |
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Fax No.: |
91-7104-662251 |
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E-Mail : |
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Factory 2 : |
Jhotwara, Jaipur – 302012, Rajasthan,
India |
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Tel. No.: |
91-141-2340214 / 91-141-6700201 |
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Fax No.: |
91-141-2340223 |
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E-Mail : |
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Factory 3 : |
Deori, P. O. Panagarh, |
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Tel. No.: |
91-761-2350024 |
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Fax No.: |
91-761-2350204 |
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E-Mail : |
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Factory 4 : |
2nd
Pokhran Road, P. B. No. 11, Thane - 400601, Maharashtra, India |
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Tel. No.: |
91-022-21731706 |
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Fax No.: |
91-022-21731700 |
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E-Mail : |
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Factory 5 : |
349, Hebbal
Industrial Area, Hootagalli, Belavadi Post, |
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Tel. No.: |
91-821-6559937/6559938/6553181 |
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Fax No.: |
91-821-2402499 |
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E-Mail : |
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Factory 6 : |
Plot No 273/4, |
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Tel. No.: |
91-260-2668518/2668519 |
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Fax No.: |
91-260-2268519 |
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E-Mail : |
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PLANTS TRANSMISSION |
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Factory 1 : |
B-190, M.I.D.C. Industrial Estate, Butibori, Nagpur -
441108, Maharashtra, India |
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Tel. No.: |
91-7104-662209 |
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Fax No.: |
91-7104-662251 |
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E-Mail : |
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Factory 2 : |
Jhotwara, Jaipur – 302012, Rajasthan,
India |
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Tel. No.: |
91-141-2340214 / 91-141-6700201 |
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Fax No.: |
91-141-2340223 |
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E-Mail : |
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Factory 3 : |
Deori, P. O. Panagarh, |
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Tel. No.: |
91-761-2350024 |
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Fax No.: |
91-761-2350204 |
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E-Mail : |
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Factory 4 : |
Arco Vial Saltillo-nuevo
laredo Km. 24.1 C.P. 66050-79 Escobedo, n. l. Mexico |
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Factory 5 : |
R. Moacyr
g. Costa, 15 - Jd. Piemont Sul 32669-722 - Betim / Mg, Brazil |
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CABLES |
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Factory 6: |
Hebbal Industrial
Area, Hootagalli, Belavadi Post, Mysore-571186, Karnataka, India |
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Factory 7: |
2nd |
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Factory 8: |
Plot no.
273/4, Demni Road, Silvassa – 396191,
Dadra and Nagar Haveli, India |
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Factory 9: |
Village:
Godampura ( Samlaya) Taluka: Savli - - 391 520, Gujarat, India |
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Projects
Locations : |
South
Asia Transmission : DLF Infinity Towers, 7th Floor, Tower-'B', DLF City, Phase-II, Gurgaon-122002,
Haryana, India Phone: 91-124-4188777 Fax: 91-124-4188721 Email: kecdomestic@kecrpg.com 1st Floor, RPG House, 463, Dr. Annie Besant Road, Worli,
Mumbai – 400030, Maharashtra, India Phone: 91-22-666770200 E-mail: kecindia@kecrpg.com 6th Floor RPG House, 463 Dr. Annie Besant Road, Worli , Mumbai –
400025, Maharashtra, India Tel:
91-22-66670300/66670305 Fax:
91-22-24930206/24930206 Power Division Email: sanjay.deosthali@rpgcables.com Telecom Division Email: nandanan@rpgcables.com Export Division Email: chatterjeet@rpgcables.com |
|
Telecommunication: |
KEC International Limited Telecom Division, "The Pavilion",
3rd Floor, 339/2, Mehrauli-Gurgaon Road, Opposite State Bank of India, Sector
14, Gurgaon-122001, Haryana, India Phone:91-124-4607700 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
|
Address : |
14-16, Patazzo B. G. Khar Marg, Mumbai – 400008, Maharashtra, India |
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Qualification : |
Arts Graduate and BA, MBA ( |
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Name : |
Mr. R. D. Chandak |
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Designation : |
Managing Director and Chief Executive Officer |
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Address : |
B/44, |
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Qualification : |
M. Com., FCA |
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Name: |
Mrs. Sobha Singh Thakur |
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Designation: |
Director |
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Address: |
1161, |
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Qualification: |
M. Com., CAIIB |
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Name: |
Mr. Gulu Lalchand Mirchandani |
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Designation: |
Director |
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Address: |
22, Paras, Little Gibs Road, Malabar Hill, Mumbai – 400006,
Maharashtra, India |
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Qualification: |
B. Mechanical |
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Name : |
Mr. Dilip G Piramal |
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Designation : |
Director |
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Name : |
Mr. Sharad Madhav Kulkarni |
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Designation : |
Director |
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Qualification : |
Bechelor of Engineering : FIE ( |
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Name: |
Mr. Ajit Teckchand Vaswani |
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Designation: |
Director |
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Address: |
502, Solitalre Hirandani Gardens, Powai, Mumbai – 400076, Maharashtra,
India |
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Qualification: |
CA, CS |
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Name: |
Mr. Jotindra Mansukhlal Kothary |
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Designation: |
Director |
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Address: |
16 A, Thakur Niwas, 3rd Floor, 173, J. N. Tata Road, Churchgate,
Mumbai – 400020, Maharashtra, India |
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Qualification: |
B. Com LLB, MBA ( |
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Name : |
Mr. P. A. Makwana |
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Designation : |
Director |
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Name : |
Mr. M. K. Sharma |
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Designation : |
Director |
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Name : |
Mr. S. M. Trehan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ch. V. Jagannadha Rao |
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Designation : |
Company Secretary |
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Name : |
Mr. Vimal Kejriwal |
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Designation : |
President – Transmission Business |
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Name : |
Mr. Vardhan Vasant Dharkar |
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Designation : |
Executive Director - Finance |
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Name : |
Mr. Yugesh Goutam |
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Designation : |
Senior Vice President – Human Resource |
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Name : |
Mr. Nikhil Gupta |
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Designation : |
Executive Director – Cables |
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Name : |
Mr. Randeep Narang |
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Designation : |
Executive Director - South Asia (Transmission) |
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Name : |
Mr. Sanjay Chandra |
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Designation : |
Chief Executive – Railways |
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Name : |
Mr. Dilip Shukla |
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Designation : |
Chief Executive – Water |
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Name : |
Mr. V. Balasubramanian |
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Designation : |
Chief Executive - Renewable Energy |
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Name : |
Mr. R.D. Chandak |
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Designation : |
Managing Director and Chief Executive Officer |
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|
Name : |
Mr. Aniket |
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Designation : |
Legal Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6394835 |
2.49 |
|
|
120639030 |
46.93 |
|
|
127033865 |
49.41 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
127033865 |
49.41 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
69762425 |
27.14 |
|
|
5229998 |
2.03 |
|
|
10285225 |
4.00 |
|
|
6845563 |
2.66 |
|
|
5480 |
0.00 |
|
|
5480 |
0.00 |
|
|
92128691 |
35.84 |
|
|
|
|
|
|
8879489 |
3.45 |
|
|
|
|
|
|
25263851 |
9.83 |
|
|
1774216 |
0.69 |
|
|
2008258 |
0.78 |
|
|
984749 |
0.38 |
|
|
414494 |
0.16 |
|
|
609010 |
0.24 |
|
|
5 |
0.00 |
|
|
37925814 |
14.75 |
|
Total Public shareholding (B) |
130054505 |
50.59 |
|
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 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Transmission Line Tower. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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|
Name : |
Deloitte Haskin
and Sells Chartered Accountants |
|
Address : |
Mumbai, |
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Tel No.: |
91-22-61854000 |
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Fax No.: |
91-22-61854501/4601 |
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Subsidiaries- wholly owned: |
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Subsidiaries: |
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Joint ventures: |
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CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
55,00,00,000 |
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 |
|
|
|
|
|
NOTE:
Reconciliation of number of equity Shares and amount outstanding at the
beginning and at the end of the year
|
Equity Shares: |
Nos. |
Rs. in millions |
|
Outstanding at
the beginning of the year |
2,57,088,370 |
514.177 |
|
Add : a) Shares issued
during the year |
-- |
-- |
|
Outstanding as at the end of the year |
2,57,088,370 |
514.177 |
Shareholders holding more than 5% equity Shares in the company as at the
end of the year
|
Name of the
shareholder |
Nos. of Shares
Held |
Percentage of shares
held |
|
Swallow Associates Limited *# |
6,57,74,210 |
25.58 |
|
Summit
Securities Limited * |
2,51,78,520 |
9.79 |
|
HDFC Trustee Company Limited A/c HDFC
Balanced Fund (AAATH1809A) |
2,32,82,899 |
9.06 |
|
Life Insurance Corporation
of India (AAACL0582H) |
1,52,13,235 |
5.92 |
|
Instant Holdings Limited *@ |
1,45,46,968 |
5.66 |
|
Reliance Capital Trustee Co. Ltd. A/c Reliance Diversified Power Sector Fund (AAATR0090B) |
1,37,53,280 |
5.35 |
#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.
@ Includes 836,750 shares held by Idea Tracom
Private Limited which got merged with Instant Holdings Limited vide Scheme of
Amalgamation which became effective on May 15, 2012.
*Shares held in Multiple Folios have been
combined.
10,365,340 (Previous Year 68,659,100) Equity
Shares of Rs.2 each were allotted as fully paid up pursuant to contracts without
payment being received in cash, during the period of five years immediately
preceding the balance sheet date.
|
Particulars |
Current
Year 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. |
1,03,65,340 |
|
Equity Shares of
Rs.2 each allotted in 2007-08 to the shareholders of the erstwhile
RPG Transmission Limited (RPGT) and the erstwhile National Information
Technologies Limited pursuant to the Scheme of Arrangement |
-- |
|
TOTAL |
1,03,65,340 |
3,750 fully paid up Equity Shares of Rs.2 each
were allotted to a trustee against 1,688 equity shares of 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 according to their respective rights,
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 |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
514.177 |
514.177 |
514.177 |
|
(b) Reserves & Surplus |
9252.078 |
9478.434 |
8135.922 |
|
(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) |
9766.255 |
9992.611 |
8650.099 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2810.708 |
2770.253 |
2690.980 |
|
(b) Deferred tax liabilities (Net) |
804.220 |
666.120 |
579.505 |
|
(c) Other long term
liabilities |
100.000 |
100.000 |
100.000 |
|
(d) long-term
provisions |
97.905 |
170.526 |
98.130 |
|
Total Non-current
Liabilities (3) |
3812.833 |
3706.899 |
3468.615 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
6954.405 |
3246.358 |
5883.144 |
|
(b) Trade
payables |
22263.202 |
18813.323 |
15548.346 |
|
(c) Other
current liabilities |
8200.847 |
8936.325 |
6108.721 |
|
(d) Short-term
provisions |
773.543 |
780.500 |
575.900 |
|
Total Current
Liabilities (4) |
38191.997 |
31776.506 |
28116.111 |
|
|
|
|
|
|
TOTAL |
51771.085 |
45476.016 |
40234.825 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
7122.869 |
5394.742 |
5283.901 |
|
(ii)
Intangible Assets |
1515.482 |
1598.391 |
1733.388 |
|
(iii)
Capital work-in-progress |
213.064 |
1076.861 |
193.432 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
63.747 |
62.113 |
53.649 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1173.950 |
1177.696 |
1063.444 |
|
(e) Other
Non-current assets |
858.103 |
672.330 |
642.389 |
|
Total Non-Current
Assets |
10947.215 |
9982.133 |
8970.203 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2855.015 |
3180.153 |
2128.839 |
|
(c) Trade
receivables |
26226.632 |
22142.418 |
20440.859 |
|
(d) Cash
and cash equivalents |
618.986 |
941.285 |
596.144 |
|
(e)
Short-term loans and advances |
4767.835 |
3672.670 |
2939.202 |
|
(f) Other
current assets |
6355.402 |
5557.357 |
5159.578 |
|
Total
Current Assets |
40823.870 |
35493.883 |
31264.622 |
|
|
|
|
|
|
TOTAL |
51771.085 |
45476.016 |
40234.825 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
55920.770 |
46043.338 |
39651.173 |
|
|
|
Other Income |
206.414 |
851.330 |
41.914 |
|
|
|
TOTAL |
56127.184 |
46894.668 |
39693.087 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
30963.122 |
25099.319 |
20276.205 |
|
|
|
Changes in inventories of finished goods, work-in-progress and scrap |
(45.734) |
(183.003) |
99.833 |
|
|
|
Erection and Subcontracting Expenses |
13518.645 |
10826.098 |
9167.761 |
|
|
|
Employee Benefit Expenses |
2891.081 |
2417.922 |
2002.820 |
|
|
|
Other Expenses |
6282.725 |
4478.850 |
4275.751 |
|
|
|
TOTAL |
53609.839 |
42639.186 |
35822.370 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2517.345 |
4255.482 |
3870.717 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1648.063 |
1337.066 |
1052.971 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
869.282 |
2918.416 |
2817.746 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
430.550 |
360.485 |
344.910 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL
ITEMS |
1.376 |
9.783 |
84.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
437.356 |
2548.148 |
2387.936 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
391.772 |
729.761 |
917.035 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
45.584 |
1818.387 |
1470.901 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6470.889 |
5192.894 |
4226.445 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
45.600 |
181.839 |
147.090 |
|
|
|
Dividend on Equity Shares |
150.300 |
308.506 |
308.506 |
|
|
|
Tax on distributed profits |
NA |
50.047 |
48.856 |
|
|
BALANCE CARRIED TO
THE B/S |
NA |
6470.889 |
5192.894 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on F.O.B. basis |
7568.151 |
76113.23 |
4438.048 |
|
|
|
Freight recovered on sales |
597.782 |
370.969 |
0.000 |
|
|
|
Tower testing charges and design charges |
70.264 |
250.667 |
11.866 |
|
|
|
Sales and Services : overseas projects |
17273.556 |
11854.397 |
13269.857 |
|
|
|
Interest income |
3.651 |
0.489 |
0.214 |
|
|
|
Dividend income from a wholly owned subsidiary |
40.45 |
272.189 |
0.00 |
|
|
|
Guarantee Charges received from a wholly owned subsidiary/joint venture |
55.547 |
0.000 |
0.000 |
|
|
|
Others (Insurance claims, etc.) |
12.403 |
16.307 |
1.535 |
|
|
TOTAL EARNINGS |
25621.804 |
88878.248 |
17721.520 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and components |
3105.956 |
2567.117 |
1331.321 |
|
|
|
Spares parts / Dies and tools |
35.059 |
47.292 |
43.910 |
|
|
|
Purchase of capital goods |
363.884 |
539.396 |
131.020 |
|
|
TOTAL IMPORTS |
3504.899 |
3153.805 |
1506.251 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
0.18 |
7.07 |
5.72 |
|
|
|
Diluted |
0.18 |
7.07 |
5.72 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Audited / UnAudited |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
14525.500 |
16106.300 |
18746.100 |
|
Total Expenditure |
13917.700 |
14357.100 |
17569.500 |
|
PBIDT (Excl OI) |
607.800 |
749.200 |
1176.600 |
|
Other Income |
119.300 |
66.300 |
23.300 |
|
Operating Profit |
727.100 |
815.500 |
1199.900 |
|
Interest |
519.100 |
565.800 |
642.000 |
|
Exceptional Items |
(181.600) |
0.000 |
0.000 |
|
PBDT |
26.400 |
249.700 |
557.900 |
|
Depreciation |
133.100 |
140.300 |
136.600 |
|
Profit Before Tax |
(106.700) |
109.400 |
419.400 |
|
Tax |
(12.200) |
27.900 |
313.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(94.500) |
81.500 |
106.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(94.500) |
81.500 |
106.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.03
|
3.88 |
3.71 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.78
|
5.53 |
6.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.85
|
5.96 |
5.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.26 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.00
|
0.60 |
0.99 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.07
|
1.12 |
1.11 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
514.177 |
514.177 |
514.177 |
|
Reserves & Surplus |
8135.922 |
9478.434 |
9252.078 |
|
Net
worth |
8,650.099 |
9,992.611 |
9,766.255 |
|
|
|
|
|
|
long-term borrowings |
2690.98 |
2770.253 |
2810.708 |
|
Short term borrowings |
5883.144 |
3246.358 |
6954.405 |
|
Total
borrowings |
8,574.124 |
6,016.611 |
9,765.113 |
|
Debt/Equity
ratio |
0.991 |
0.602 |
1.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
39651.173 |
46043.338 |
55920.770 |
|
|
|
16.121 |
21.452 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
39651.173 |
46043.338 |
55920.770 |
|
Profit |
1470.901 |
1818.387 |
45.584 |
|
|
3.71% |
3.95% |
0.08% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
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 |
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 |
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMY REVIEW
GLOBAL ECONOMIC
SCENARIO
Economic growth showed early signs of improvement, particularly in the
emerging and developing economies. Global GDP grew by 3.2% in 2012 and is
expected to improve further to 3.3% in 2013 and 4.0% in 2014 (Source: IMF –
April 2013).
The US Government undertook fiscal
consolidation measures through spending cuts, resulting in a slowdown in
growth. On the other hand, the 4 year low unemployment rate in February 2013
and recent improvement signals in the housing market are expected to drive a
modest recovery next year. Besides, sustained policy measures are required in
the Eurozone nations to help the economies recover.
INDIAN ECONOMIC
SCENARIO
India’s economy witnessed strong GDP growth rates of 8.6% in Fy10 and 9.3% in Fy11. However, it declined to 6.2% in Fy12. The boost to consumption coupled with supply-side constrains resulted in higher inflation. This forced the reserve Bank of India (RBI) to tighten the monetary policy. Consequently, GDP growth rate suffered and registered a 5% growth in Fy13, the lowest in a decade. The slowdown in Fy13 has been seen across all sectors. Besides, the Eurozone crisis and uncertainties about the US fiscal policy also had an adverse impact on the growth rate.
In Fy13, the inflation has remained consistently high. The current account deficit reached an all-time high and also faced the risk of breaching fiscal deficit targets. However, the last couple of quarters provided some ray of hope, with the Government pushing for several policy reforms, controlling FY 13 fiscal deficit to 4.9% of GDP.
Recently, the core inflation has been reducing due to softening commodity prices. This is providing some room to ease monetary policies and create the possibility of further rate cuts by the RBI. Business overview KEC International Limited (KEC or the Company) is an Infrastructure Engineering Procurement and Construction (EPC) major with presence in six business verticals – power transmission, power systems, cables, telecom, railways and water. The business is spread across 48 countries in South Asia, The Middle East, Africa, Central Asia, Americas and Southeast Asia.
INDUSTRY OUTLOOK AND
OPPORTUNITIES ACROSS BUSINESS AND RELATED GEOGRAPHIES
POWER SECTOR REVIEW
The power sector’s growth is the key demand driver for a significant part of the Company’ businesses (namely power transmission, power systems and cables) and therefore, this section takes a closer look at the global power scenario.
One-fourth of the global population is still without access to electricity. This includes a large percentage of population in South Asia (including India) and Sub-Saharan Africa. Their per capita power consumption is also much lower than the world average. The Company is present in most of these countries to meet the huge requirement of power infrastructure investments.
Power generation capacity investments should correspond to investments in transmission and distribution (T and D) infrastructure. Therefore, the global power T and D sector has strong growth prospects. Total investment needs for T and D from 2010 to 2020 is envisaged at uS$ 1.0 Trillion and uS$ 2.2 Trillion, respectively. Apart from generation-based T and D, old existing network replacements and grid strengthening and interconnections are also likely to drive demand. Many regions have planned to interconnect their grids.
Global power shortage and increasing demand are driving substantial investments in power generation. The global installed power generation capacity is predicted to increase from about 4,900 Gw in 2010 to 6,600 Gw in 2020 [Source: International Energy Agency (IEA)]. The estimated total investment required in the power sector is US$ 6.8 Trillion; out of this, US$ 3.7 Trillion is needed for power generation capacity addition. Growing pressure to reduce carbon emission and increase generation through renewable energy sources are also expected to drive generation investment.
POWER TRANSMISSION
AND POWER SYSTEMS
BUSINESS
I) South Asia Region
A) India (Power
Transmission)
India, an emerging economy experiencing rapid urbanisation and industrialisation, is the world’s fourth largest energy consumer. However, the country has always experienced power demand-supply gap. The peak power deficit for FY 13 is 8.7% (Source: Central Electricity Authority). This power deficit, coupled with an increasing demand, provides significant growth opportunities for India’s power sector.
In the draft of 12th Five year Plan, the Planning Commission has recommended a capacity addition target of 88,537 Mw, as compared to the 11th Five year Plan’s actual capacity addition of 54,964 Mw. An additional 30,000 Mw of renewable energy capacity addition is targeted during the 12th Five year Plan. Hence, there is an immediate need to create power transmission infrastructure to support this planned generation capacity expansion.
In the 12th Five year Plan, the transmission line capacity addition plan at 1,07,440 circuit kms is 54% higher than the 11th Five year Plan’s actual addition of 69,926 circuit kms. The Plan includes a multi-fold increase of 765 kv transmission lines addition, which requires a comparatively higher investment.
During the 12th Five year Plan, the Central Transmission utility, Power Grid Corporation of India Limited (PGCIL) plans to invest Rs.1000000.000 Millions in a phased manner for transmission line systems. These systems are associated with central sector linked generation, ultra Mega Power Projects (UMPP), Independent Power Producers (IPP) and grid strengthening.
Besides, Green Energy Corridors, viz. - transmission line system for power evacuation from renewable energy generation, needs to be created. PGCIL’s July 2012 report indicates a necessity of Rs.420000.000 Millions investments to create several transmission line corridors for 40,000 Mwrenewable energy generation capacities.
Apart from PGCIL, the State Electricity Boards (SEBs) are also planning investments to expand the intra-state transmission networks. In some cases, SEB’s investments are backed by multilateral funding agencies, like the world Bank, Asian Development Bank (ADB) and so on.
Private sector participation in the transmission sector is increasing. Till Fy13, nine transmission projects have been awarded through competitive bidding processes (BOO/BOOT/BOOM). The government is encouraging more private participation, even at the state level.
Challenges –The sector faces challenges related to fuel linkages, land acquisition, environment clearances, statutory clearances, right of way (ROW) and poor financial health of SEBs. Many of the SEBs have hiked their power tariffs to reduce financial losses and improve cash flows. Further, the Government’s restructuring scheme to improve the financial health of SEBs is expected to bring fresh investments in the TandD sector. however, it needs to be seen how many SEBs can take advantage of this scheme.
INDIA (POWER SYSTEMS)
In the 12th Five year Plan, the substation capacity addition at 2,70,000 MVA is 80% higher, as compared to actual addition (latest estimate) of 1,50,362 MVA during the 11th Five year Plan. Of the total capacities planned, 55% is at 765 kv level. The Company has already entered in this space by securing an order for a 765 kv gas insulated substation during Fy13. Internationally, the Company is currently executing substation project upto 1,150 kv in Kazakhstan.
SAARC COUNTRIES
KEC has strengthened its presence in the SAARC region, which has one of the lowest per capita power consumption globally. The region is displaying an encouraging business outlook in recent years.
India’s cross border electricity transmission interconnections with Bangladesh, Sri Lanka, Nepal and Bhutan are being expanded to facilitate power trade between the countries. For instance, Indo-Bangladesh grid interconnection transmission line is in its advanced stages of completion. The Indo-Nepal grid interconnection has moved forward with award of hetauda-Duhabi-Dhalkebar transmission line project. Besides, PGCIL is also undertaking steps to establish transmission links with Nepal and Bhutan. In addition to cross-border interconnection lines, the Governments of these countries are also focusing to improve their domestic transmission and distribution networks.
MENA REGION
The MENA region is experiencing rising power demand, which is expected to grow at 7% per annum through the coming decade (Source: Booz and Company). This growth is likely to be driven by economic development, increasing population, and industrial growth. The region is also diversifying fuel sources and investing in solar power generation. 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 US$ 10.7 Bn in transmission networks from 2013 to 2017 (Source: Arab Petroleum Investment Corporation). 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 –After going through a stagnation phase for the last 2 years due to political unrest, the situation in North Africa is improving. The new political administrations, planning to restore basic growth fundamentals in the region, are focusing on the energy sector. Egypt, for example, has already announced fresh investment in transmission and distribution sector.
AFRICA REGION
The region’s per capita electricity consumption in 2010 (553 kwh v/s world average of 2,975 kwh) was one of the lowest globally. Moreover, with two-third of the population still without access to electricity, the region has significant growth potential. The multilateral funding agencies are allocating funds for the new projects in the region. Various cross-border transmission line interconnections are being planned to improve power transmission Infrastructure and create an efficient energy exchange among the countries.
CENTRAL ASIA REGION
Central Asia continues to be a high potential market with growing electricity demand due to its booming industrial sector. Several initiatives, supported and funded by multilateral institutions, are being undertaken to expand and upgrade the region’s soviet-era power infrastructure. The countries in the region are also working to improve their interconnections to ensure proper power flow between them. Kazakhstan, Turkmenistan, ukraine and Georgia are the major markets in this region. Among them, Kazakhstan is also opting for a considerable exposure in the renewable energy sector.
NORTH AMERICA AND
LATIN AMERICA REGION
North America –The North America transmission system needs investment to build new lines and upgrade and refurbish the existing network. About 29,600 circuit miles transmission lines are planned to be added between 2012 and 2022. [Source: North American Electric reliability Corporation’s (NERC) 2012 Long-Term reliability Assessment report]. In other words, assuming US$ 1 Mn investments per mile, an investment of US$ 3 Bn 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. Solar and wind generation will also require incremental investment in power transmission infrastructure, as federal tax incentives continue to be extended through 2013. In Canada, new generation sources in Alberta and new hydroelectric generation expansion in Manitoba and New Foundland-Labrador have increased transmission lines demand.
North America’s existing transmission grid is ageing due to underinvestment in transmission infrastructure. Hence, investments are also required to refurbish existing networks to avoid power outages.
Latin America –In this region, majority of the Company’s business come from Brazil and Mexico. Brazil, the largest market in Latin America, is also an emerging economy. Brazil’s Government has planned to increase its power generation capacity by 61,560 Mw and transmission lines capacity by 42,553 kilometers between 2011 and 2020 (Source: Empresa de Pesquisa Energetica, Brazil). The most important power generation plants under construction are located in the north, while the more developed areas are in the southeast. This necessitates investment in long-distance transmission lines. Moreover, energy infrastructure also remains a priority for Brazil, as the country is hosting the 2014 FIFA world Cup and the 2016 Olympics.
In Mexico, the state-owned Commission Federal de Electricidad (‘CFE’) owns and operates transmission lines. The Company plans to focus on transmission line projects to evacuate power from upcoming wind generation, mostly in the southeast and the northeast regions. However, this may pose a challenge, considering CFE’s limited ability to fund new projects and limited private participation.
SOUTHEAST ASIA REGION
KEC re-entered this region in 2010 and is currently executing projects in Indonesia, The Philippines and Malaysia. Many countries in this region have formulated plans to increase their power generation capacity and grid expansion. Among the countries where opportunities exist (including Indonesia, The Philippines, Malaysia, Laos, Thailand and Cambodia), Indonesia provides the largest market. The country is embarking on a comprehensive upgradation of transmission infrastructure on grids in Java-Bali, Sulawesi and Kalimantan. However, most of these markets are dominated by local, Chinese and Japanese contractors.
CABLES BUSINESS –
OUTLOOK AND OPPORTUNITIES
The Company manufactures power cables and telecom cables with the former constituting significant part of its cables business.
During Fy13, the cables market size declined by over 20%, impacted by the electrical equipment industry’s downturn. The demand for power cables is mainly driven by the power sector, real estate and industries, such as steel, oil and gas, chemicals and so on. These sectors experienced slowdown in Fy13, driving the demand for power cables down. Moreover, many new players entered the market skewing the demand-supply dynamics.
The Government’s aggressive growth ambition in the power sector during the 12th Five year Plan, especially in the distribution segment, provides significant growth opportunities in power cables. The strategic initiatives of the Government mainly encompass technology upgrades, thereby augmenting the demand for high voltage and extra high voltage (EHV) cables. Significant investments are also expected in India’s telecom space, driven by 3G/4G rollouts, which will boost the optical fiber cables demand.
TELECOM BUSINESS –
OUTLOOK AND OPPORTUNITIES
Installation of optical fiber networks and telecom towers drive the Company’s telecom
business. It receives majority of its business from India. However, the Company
also focuses on opportunities in international markets, mainly in the African
countries.
India’s Government has approved to establish National Optical Fiber
Network (NOFN) in October 2011 to provide broadband connectivity to the
Country’s 2,50,000 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.
Challenges – The operators are not expanding their telecom tower
networks, despite 3G rollout, subscriber growth and the existing network’s poor
quality. however, future demand for better quality networks is likely to change
this trend.
RAILWAYS BUSINESS
– OUTLOOK AND OPPORTUNITIES
Presently, the Company’s business mainly comes from conventional railway
projects. The Company is an integrated player and undertakes projects related
to civil and track works, electrification and signaling works. The 12th Five
year Plan envisages a total investment of Rs.6433790.000 Millions (including
Metro rail). This amount is 146% more than 11th Five year Plan’s target and
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 dedicated freight
corridors (DFC) are being developed in India – the western DFC (1,483 kms.) and
the Eastern DFC (1,839 kms.). The fundings for these projects, scheduled to be
completed by 2017, are already in place. As per India’s latest railway Budget, construction contracts for
1,500 kms. line across both the corridors would be awarded in FY 14. KEC is
pre-qualified in various portions of these projects and further looking to
contribute in nation building by actively participating in this opportunity.
Mass rapid transit System (MRTS) –Increasing urbanisation, population
density and strain on existing transport infrastructure have necessitated
investments in the modern mass rapid transit system (metro and mono rails). The
Delhi metro’s success has set the stage for developing more metro networks
across the Country.
WATERBUSINESS –
OUTLOOK AND OPPORTUNITIES
India’s water sector is experiencing strong demand drivers. The
Government of India allocates funds for developing water-related infrastructure
projects in two areas – water resource management and water and wastewater
treatment. The Company focuses on opportunities in both the areas.
Despite having 16% of world’s population, India has only 4% of the
globally available fresh water (Source: CII). This makes water one of India’s
scarce resources. Moreover, only 34% of Indian population has sustainable
access to improved sanitation facilities (Source: world Bank). Besides, out of
the total wastewater generated, only 30% is treated before disposal, further
increasing pollution (Source: Central Pollution Control Board). To improve the
situation, the 12th Five year Plan envisages Rs.7596900.000 Millions total
investment across various water infrastructure projects. It is 91% more than
the planned target and 159% more than actual investments (latest estimate) in
the 11th Five year Plan.
RENEWABLEENERGY
BUSINESS – OUTLOOK AND OPPORTUNITIES
Globally, there has been an increasing focus on power generation through
renewable energy. It is the fastest growing source of energy consumption
currently. The Company is looking at EPC opportunities in the solar and wind
energy space.
Solar is the most nascent and fastest growing renewable energy sector.
Worldwide, solar installations have been growing at 50% plus compound annual
growth rate (CAGR) over the last 3 years. The Company foresees opportunities in
this space over the next few years. India’s solar power industry experienced a
good start, driven by the success of Jawaharlal Nehru National Solar Mission
(JNNSM) Phase-I. Among the states, Gujarat and Rajasthan have been the pioneers
to install capacities. Many others have also announced their plans and policies
for solar energy generation.
wind is one of the most mature renewable energy segments and is fast
developing as an alternative energy option globally. KEC, with its lattice
towers manufacturing expertise and strong EPC capabilities, will seek relevant
opportunities in this sector.
FINANCIAL
PERFORMANCE
Analysis of Profit and Loss statement and Balance Sheet including the
key ratios based on consolidated results is mentioned as follows:
Profit and Loss
Statement Analysis
Net Sales increased by 20.03% y-o-y to Rs.69794.900 Millions, driven by
strong execution and continuous order inflow. Out of the total net sales,
58.61% has come from the markets outside India.
EBITDA decreased by 19.08% y-o-y to Rs.3814.000 Millions. EBITDA margins
declined by 264 basis points to 5.46% of net sales. The key reasons for margins
reduction include challenging business environment, cost and time overruns in
certain projects, severe competition and developmental costs for new
businesses.
Depreciation and amortization expense increased to Rs.560.800 Millions
from Rs.479.200 Millions in the Fy12. It has increased mainly due to
capitalisation of new cable manufacturing facility at vadodara, Gujarat.
Finance Costs increased to Rs.1944.000 Millions from Rs.1597.400
Millions in Fy12. Higher working capital loan requirement due to higher sales
and investments in vadodara cable manufacturing facility has resulted in this
increase. However, Finance Costs to Net Sales ratio remained around the same levels
at 2.79% as against 2.75% in Fy12.
Other Income stood at Rs.160.500 Millions as against Rs.616.300 Millions
in Fy12. Other income for Fy12 included Rs.531.800 Millions profits on
assignment of leasehold rights
in the land at vashi.
Net Profit stood at Rs.650.400 Millions as against Rs.2093.000 Millions
in FY 12. Net Profit for the year FY 12 included Rs. 434.300 Millions post-tax
profits on assignment of leasehold
rights in the land at Vashi. Net Profit decreased primarily due to
lower EBITDA margins.
Earnings per Share (EPS) declined to Rs.2.53 from Rs.8.14 in fy12.
Price to earnings (PE) ratio stood at 19.27 times. (Based on Fy13 EPS
and closing share price as on Fy13 result announcement day i.e. May 08, 2013)
Proposed Dividend for the year is 25% of face value of equity share,
reflecting a distribution of Rs.152.200 Millions (including dividend
distribution tax).
Balance sheet
Analysis
Net Worth increased to Rs.11622.600 Millions from Rs.11078.100 Millions
in Fy12. Equity Share Capital remained unchanged at Rs.514.200 Millions.
However, reserves and Surplus increased to Rs.11108.400 Millions from
Rs.10563.900 Millions recorded in Fy12. Book Value per share increased to
Rs.45.21 from Rs.43.09 in Fy12.
Gross Borrowings increased to Rs.16690.100 Millions from Rs.12391.900
Millions in Fy12 while Net Borrowings increased to Rs.15134.000 Millions from
Rs.10362.800 Millions in Fy12. This was primarily driven by increased working
capital loans due to higher sales and capital investment in new cable manufacturing
facility at vadodara, Gujarat. Gross Debt-equity ratio stood at 1.44 times
while Net Debt- equity ratio stood at 1.30 times.
Fixed assets increased to Rs.10114.400 Millions from Rs.9219.100
Millions in Fy12. The increase is mainly due to investments in new cables
manufacturing facility at vadodara, Gujarat.
Prudent working capital management has resulted in reduction in
inventory, receivables and gross working capital cycles. Inventory cycle
decreased to 21 days from 28 days in Fy12. Total receivable Cycle decreased to
179 days from 185 days in Fy12.
Gross working capital cycle reduced to 255 days from 270 days in Fy12.
Return on Capital employed(before tax) decreased to 12.94% in Fy13 as compared
to 20.15% in Fy12. The key reason for reduction is lower EBITDA margins due to
reasons mentioned previously.
OPERATIONAL
PERFORMANCE
Commenced production at new green
field facility at vadodara, Gujarat to manufacture high-tension (Ht) and extra
high voltage (EHV) power cables. with this plant, the Company increases its
presence in the EHV power cables sector.
The order book increased to Rs.94700.000 Millions, registering a growth
of 10.48%.
The year’s total order intake has increased by 19.96% to Rs.74840.000
Millions. The orders were spread across all business verticals and geographies.
The Company continues to expand its geographical presence. During the
year it entered uganda and Turkmenistan and re-entered Indonesia after 10
years.
Secured orders from South Asia (India, Nepal, Sri Lanka, Bangladesh),
Americas (United States, Mexico, Canada, Brazil), MENA (Saudi Arabia, Oman,
UAE), Africa (uganda, Kenya, Nigeria, Tunisia), Central Asia (Turkmenistan) and
Southeast Asia (the Philippines, Malaysia, Indonesia).
Secured first order for 765 kV
GIS substation worth Rs.400.000 Millions
Secured the first sewage treatment project worth Rs.1940.000 Millions in
Maharashtra
The Company is looking at opportunities in the wind and solar EPC space.
Received many awards and recognitions during the year. Details are
mentioned on page 18 and 19 of this annual report
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
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, INDIA |
B38080842 |
|
2 |
10259513 |
22/12/2010 |
400,000,000.00 |
PUNJAB AND SIND BANK |
BANK HOUSE, 21, RAJANDER PLACE, NEW DELHI, DELHI - 110001, INDIA |
B02638922 |
|
3 |
10257075 |
03/05/2011 * |
350,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
FLOOR 21, CENTRE ONE BUILDING, WORLD TRADE CENTRE, CUFFE PARADE,
MUMBAI, MAHARASHTRA - 400005, INDIA |
B13160270 |
|
4 |
10230820 |
25/06/2010 |
1,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI,
MAHARASHTRA - 400001, INDIA |
A89706790 |
|
5 |
10198804 |
30/01/2013 * |
88,500,000,000.00 |
BANK OF INDIA |
MID CORPORATE BRANCH, 5 B.T.M SARANI, BRABOURNE R |
B66790072 |
|
6 |
10197447 |
13/05/2013 * |
500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, GROUND FLOOR, 17 R KAMANI MARG, BALLARD ESTATE,
MUMBAI, MAHARASHTRA - 400001, INDIA |
B78710621 |
|
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
CORPORATI |
PICUP BHAVAN, GOMTI NAGAR, LUCKNOW, UTTAR PRADESH |
A33585571 |
|
10 |
10068109 |
06/08/2007 |
811,130,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA |
A23550973 |
Note: * Date of charge modification
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND YEAR ENDED 31.03.2014
(Rs.
In Millions)
|
|
Quarter
ended |
Year
ended |
|
|
Particulars |
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 Income from operations |
|
|
|
|
(a) Net sales from operations (Net of excise duty) |
16892.200 |
18484.300 |
64452.300 |
|
(b) Other operating income |
317.600 |
261.800 |
1135.400 |
|
Total income from operations (net) |
17209.800 |
18746.100 |
65587.700 |
|
2 Expenses |
|
|
|
|
(a) Cost of materials consumed |
8655.600 |
9438.800 |
34662.300 |
|
(b) Purchase of stock-in-trade |
-- |
-- |
-- |
|
(c) Changes in inventories of finished goods,
work-in-progress, scrap and stock-in-trade |
385.600 |
(119.600) |
(530.900) |
|
(d) Erection & subcontracting expenses |
4035.900 |
5007.100 |
16654.600 |
|
(e) Employee benefits expense |
776.300 |
803.300 |
321.500 |
|
(f) Depreciation and amortisation expense (net) |
142.300 |
138.500 |
554.200 |
|
(g) Other expenses |
2161.100 |
3439.900 |
7857.700 |
|
Total expenses |
16156.800 |
17708.000 |
62413.000 |
|
3 Profit from
operations before other income, finance costs and exceptional items (1-2) |
1053.000 |
1038.100 |
3174.700 |
|
4 Other
income (Refer Note 3 below) |
620.800 |
23.300 |
829.700 |
|
5 Profit from ordinary activities before finance costs
and exceptional items (3 + 4) |
11673.800 |
1061.400 |
4004.400 |
|
6 Finance costs |
587.300 |
642.000 |
2314.200 |
|
7 Profit from ordinary activities after finance
costs but before exceptional items (5-6) |
1086.500 |
419.400 |
1690.200 |
|
8 Exceptional item (VRS Expenditure) |
-- |
-- |
181.600 |
|
9 Profit / (Loss) from ordinary activities before
tax (7-8) |
1086.500 |
419.400 |
1508.600 |
|
10 Tax expense (Current quarter net of provision of
Rs. 35.200 Millions pertaining to an earlier year, Year |
324.000 |
313.000 |
652.700 |
|
ended 31/03/2013 - net of write back of provision
pertaining to an earlier year Rs. 92.000 millions) |
|
|
|
|
11 Net Profit / (Loss) from ordinary activities after
tax (9-10) |
762.500 |
106.400 |
855.900 |
|
12 Extraordinary Item |
-- |
-- |
-- |
|
13 Net Profit / (Loss) for the period (11-12) |
762.500 |
106.400 |
855.900 |
|
14 Paid up equity share capital |
514.200 |
514.200 |
514.200 |
|
(Face Value Rs. each) |
(2/-) |
(2/-) |
(2/-) |
|
15 Reserves excluding Revaluation Reserves as per
balance sheet of |
|
|
|
|
previous accounting year |
|
|
|
|
16 Basic and diluted Earnings Per Share (Rs.) -
Before and after |
2.97 |
0.41 |
3.33 |
|
extraordinary item (Not annualised) |
|
|
|
|
See accompanying notes to the financial results |
|
|
|
|
|
|
|
|
|
|
Quarter
ended |
Year
ended |
|
|
PARTICULARS |
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
A PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 Public shareholding |
|
|
|
|
- Number of shares |
130054505 |
133279507 |
130054505 |
|
- Percentage of shareholding |
50.59% |
51.84% |
50.59% |
|
2 Promoters and Promoter Group Shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
Nil |
Nil |
Nil |
|
- Percentage of shares (as a %
of the total shareholding of Promoter and Promoter group) |
Nil |
Nil |
Nil |
|
- Percentage of shares (as a % of
the total share capital of the Company) |
Nil |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
|
- Number of shares |
127033865 |
123808863 |
127033865 |
|
- Percentage of shares (as a %
of the total shareholding of Promoter and Promoter group) |
100.00% |
100.00% |
100.00% |
|
- Percentage of shares (as a %
of the total share capital of the Company) |
49.41% |
48.16% |
49.41% |
|
Particulars |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B INVESTOR
COMPLAINTS |
31.03.2014 |
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
|
Received during the quarter |
5 |
|
|
|
Disposed of during the quarter |
5 |
|
|
|
Remaining unresolved at the end of the quarter |
-- |
|
|
NOTES:
The above results of the Company were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held April 30, 2014.
The Board of Directors have recommended a Dividend of Rs. 0.60 per equity share
of Rs. 2/- each for the year ended March 31, 2014 subject to approval of
shareholders.
Other income includes:
(Rs. In Millions)
|
|
Quarter
ended |
Year
ended |
|
|
PARTICULARS |
31.03.2014 |
31.12.2013 |
31.03.2014 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Dividend income from a subsidiaries |
-- |
-- |
116.800 |
|
Dividend income from a joint venture |
585.500 |
-- |
585.500 |
The execution of the construction works under contracts of the Company with General Electric Company, Libya (a Government of Libya undertaking) is disrupted since February 2011 due to civil / political unrest in that country. The net assets (including fixed assets, trade receivables etc.) as at March 31, 2014 of the Company relating to these contracts aggregate Rs. 6378 lacs. The situation in Libya is returning to normal and the Company is confident of completing these projects.
The production of Cables at Thane factory has been discontinued from February
11, 2013 and the Company has given voluntary retirement scheme to all the
workers at a cost of Rs. 181.600 Millions. The Company signed an “Agreement for
Sale” dated March 29, 2014 for sale of land to M/s Ardent Properties Private
Limited. (a 100% subsidiary of Tata Housing Development Company Ltd) for a
consideration of approx. Rs. 2123.400 Millions and expects to complete all
formalities shortly.
The Company is primarily engaged in the business of Engineering, Procurement
and Construction (EPC). As such there is no separate reportable segment as
defined by the Accounting Standard (AS) 17 - "Segment Reporting” notified
under the Companies (Accounting Standards) Rules, 2006.
STATEMENT OF ASSETS
AND LIABILITIES
|
SOURCES
OF FUNDS |
31.03.2014 |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
514.200 |
|
(b) Reserves & Surplus |
9807.800 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
10322.000 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
2141.000 |
|
(b) Deferred tax liabilities
(Net) |
730.800 |
|
(c) Other long term
liabilities |
100.000 |
|
(d) long-term provisions |
99.000 |
|
Total
Non-current Liabilities (3) |
3070.800 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
11012.700 |
|
(b) Trade payables |
28601.500 |
|
(c) Other current liabilities |
6205.900 |
|
(d) Short-term provisions |
1096.900 |
|
Total
Current Liabilities (4) |
46917.000 |
|
|
|
|
TOTAL |
60309.800 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
|
|
(i) Tangible assets |
8259.200 |
|
(b) Non-current Investments |
63.800 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
1934.000 |
|
(e) Other Non-current assets |
1066.700 |
|
Total
Non-Current Assets |
11323.700 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
0.000 |
|
(b) Inventories |
3333.400 |
|
(c) Trade receivables |
33357.200 |
|
(d) Cash and cash equivalents |
902.400 |
|
(e) Short-term loans and
advances |
4497.700 |
|
(f) Other current assets |
6895.400 |
|
Total
Current Assets |
48986.100 |
|
|
|
|
TOTAL |
60309.800 |
Figures for the quarter ended March 31, 2014 are the balancing figures between
audited figures in respect of the full financial year and the year to date
figures upto the third quarter of that financial year.
Previous periods' figures have been regrouped / reclassified wherever
necessary.
CONTINGENT
LIABILITIES IN RESPECT OF:
(a)
Claims against the Company not acknowledged as debts:
(Rs. In
Millions)
|
Nature of Claims
|
Relating to various years comprise
in the period |
31.03.2013 |
|
|
|
|
|
Sales
Tax/Value Added Tax* (Tax/Penalty/Interest) |
1993-2011 1993-2010 |
492.031 |
|
Excise
Duty * (Tax/Penalty/Interest) |
1994-2013 1994-2012 |
262.936 |
|
Service
Tax * (Tax/Penalty/Interest) |
1998-2013 2002-2010 |
1688.272 |
|
Entry
Tax (Tax/Penalty/Interest) |
1995-2013 1995-2012 |
178.880 |
|
(i) Income
Tax matters mainly in respect of disallowance of depreciation etc. relating
to Power Transmission Business acquired by the Company |
A.Y.2006-07 to 2009-10 |
-- |
|
(ii)
Income Tax matters at overseas unit/s |
2002-2008 2002 |
346.258 |
|
Customs
Duty |
1995-1996 |
6.014 |
|
Civil Suits |
1993-2006 1993-1994 |
7.202 |
|
Demands of employees/ sub contractors |
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 ‘C’ forms and the Company’s
claim of exemption for MVAT on export sales and services.
(b)
Guarantees
|
Particulars |
31.03.2013 |
|
|
(Rs.
In Millions) |
|
Guarantees
given to banks for credit facilities extended/loans given to the wholly owned
subsidiary companies / a joint venture Rs.10904.955 Millions (Previous Year Rs.8540.026
Millions) Facilities/loans outstanding at the Year end |
5232.585 |
|
Performance
guarantee given to a customer of the wholly owned subsidiary Company |
-- |
|
Bank
guarantees provided by the Company to customers of the wholly owned subsidiary
companies in connection with the respective contracts awarded/bids made |
105.918 |
|
Performance
guarantee provided by a bank to the customer of the wholly owned subsidiary
Company by utilising the Company’s credit facility with that bank |
44.284 |
(c) Other money for which the Company is
contingently liable:
|
Sr. No |
Particulars |
31.03.2013 |
|
1 |
Bills discounted |
426.303 |
|
2 |
Contingent
liability of Income Tax taken over by the Company in terms of the Composite Scheme
of Arrangement underwhich the Power Transmission Business was acquired by the
Company |
121.220 |
FIXED ASSETS:
·
Freehold and
·
Buildings
·
Plant and Machinery
·
Computers
·
Furniture and Fixtures
·
Electrical Installations
·
Vehicles
·
Computer Software
·
Brand
·
Goodwill
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.59.97 |
|
|
1 |
Rs.102.90 |
|
Euro |
1 |
Rs.82.02 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
KVT |
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 |
4 |
|
--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 |
|
52 |
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.