MIRA INFORM REPORT
|
Report Date : |
13.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
EVEREST KANTO CYLINDER LIMITED |
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Registered
Office : |
204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point, Mumbai
– 400021, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
24.06.1978 |
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Com. Reg. No.: |
11-020434 |
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Capital
Investment / Paid-up Capital : |
Rs.214.315 Millions |
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CIN No.: [Company
Identification No.] |
L29200MH1978PLC020434 |
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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 of widest range of High Pressure Gas
Cylinders. |
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No. of Employees
: |
Information denied by management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (35) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 18000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Rating reflects moderate financial risk profile due to loss incurred
by the company from its operation in the year 2013. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealing with some caution. |
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may grow
4.7 % in the current financial year, lower than the official estimate of 4.9 %,
Fitch Rating said. The global rating agency expects the economy to pick up in
the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Term Loan = BB+ (Rs.3682.000 Millions) |
|
Rating Explanation |
Inadequate credit quality and high credit
risk. |
|
Date |
09.07.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE
Contact No.: 91-11-42474916
LOCATIONS
|
Registered/ Head Office : |
204, Raheja Centre, Free Press Journal Marg, 214, Nariman Point,
Mumbai – 400021, Maharashtra, India |
|
Tel. No.: |
91-22-30268300-01 (30 Lines) |
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Fax No.: |
91-22-22870718/ 0720 |
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E-Mail : |
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Website : |
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Plant 1: |
Survey No. 141/1 and 141/2, Village Varsana, Near NH 8A East, P.O Box
Gopalpuri, Taluka – Anjar, Gandhidham, Kutch – 370240, |
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Plant 2: |
Plot No. 525 to 542, 618, 619, 627 and 628, Sector – New Extended Area,
Kandla Special Economic Zone, Gandhidham, Kutch – 370230, Gujarat, India |
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Plant 3: |
N – 62, MIDC Industrial Area, Kumbhavali Naka, Tarapur – 401506, |
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Plant 4: |
E – 22, MIDC Area, Chikalthana, |
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Branch Office 1: |
No.9, Mota Chambers, Milier Road, Bangalore – 560052, Karnataka, India |
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Tel No: |
91-80-22280457/ 4202 |
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Fax No: |
91-80-22284201 |
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Branch Office 2: |
B- 69/ 2, Wazirpur Industrial Area, |
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Tel No: |
91-11-42474916/ 4917 /4919/ 4920 |
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Fax No: |
91-11-27377530/ 91-11-42474918 |
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Branch Office 3: |
Located at Kolkata, West Bengal, India |
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Branch Office 4: |
Plot No. M 03130, P.O |
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Tel No: |
971-4-8832796/ 8832707/ 8832799 |
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Fax No: |
971-4-8832799 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. P.K. Khurana |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Pushkar Khurana |
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Designation : |
Non - Executive
Director |
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Name : |
Mr. Puneet Khurana |
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Designation : |
Whole - Time
Director (till September 30, 2012) |
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Name : |
Mr. P.M. Samvatsar |
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Designation : |
Whole - Time
Director |
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Name : |
Mr. Krishen Dev |
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Designation : |
Independent
Director |
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Name : |
Mr. Naresh Oberoi |
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Designation : |
Independent
Director |
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Name : |
Mr. Mohan Jayakar |
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Designation : |
Independent
Director |
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Name : |
Mr. Vyomesh Shah |
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Designation : |
Independent
Director |
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Name : |
Mr. Gurdeep Singh |
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Designation : |
Independent
Director |
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Name : |
Mr. Shailesh Haribhakti |
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Designation : |
Independent
Director till May 30, 2012 |
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Name : |
Mr. Varun Bery |
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Designation : |
Non-Executive
Non-Independent Director |
KEY EXECUTIVES
|
Name : |
Ms. Kanika Sharma |
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Designation : |
Company Secretary and Compliance Officer |
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Name : |
Mr.
Vipin Chandok |
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Designation : |
Chief
Financial Officer |
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Name : |
Mr. Kishor Thakkar |
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Designation : |
Finance Controller |
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Board Committees |
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Audit Committee: |
· Mr. Vyomesh Shah (Chairman) · Mr. Naresh Oberoi · Mr. Krishen Dev ·
Mr. Puneet Khurana |
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|
Shareholders’/ Investors’ Grivances Redressal and Share Transfer
Committee: |
· Mr. Mohan Jayakar (Chairman) · Mr. Puneet Khurana ·
Mr. P.M. Samvatsar |
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Remuneration Committee: |
· Mr. Krishen Dev (Chairman) · Mr. Mohan Jayakar · Mr. Naresh Oberoi ·
Mr. P.K. Khurana |
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Allotment Committee: |
· Mr. P.K. Khurana (Chairman) · Mr. Puneet Khurana ·
Mr. P.M. Samvatsar |
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Management Committee: |
· Mr. P.K. Khurana (Chairman) · Mr. Puneet Khurana ·
Mr. P.M. Samvatsar |
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Investment Committee: |
· Mr. P.K. Khurana (Chairman) · Mr. Shailesh Haribhakti · Mr. Krishen Dev ·
Mr. Puneet Khurana |
SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
|
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|
46406948 |
43.31 |
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|
19852203 |
18.53 |
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|
66259151 |
61.83 |
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|
|
|
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|
1608866 |
1.50 |
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|
1608866 |
1.50 |
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|
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Total
shareholding of Promoter and Promoter Group (A) |
67868017 |
63.33 |
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(B)
Public Shareholding |
|
|
|
|
|
|
|
|
2400000 |
2.24 |
|
|
600 |
0.00 |
|
|
500 |
0.00 |
|
|
4134025 |
3.86 |
|
|
6535125 |
6.10 |
|
|
|
|
|
|
|
|
|
|
4444236 |
4.15 |
|
|
|
|
|
|
|
|
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|
18039613 |
16.83 |
|
|
1211573 |
1.13 |
|
|
|
|
|
|
9059118 |
8.45 |
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|
566544 |
0.53 |
|
|
1052935 |
0.98 |
|
|
7435139 |
6.94 |
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|
4500 |
0.00 |
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|
32754540 |
30.57 |
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Total
Public shareholding (B) |
39289665 |
36.67 |
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Total
(A)+(B) |
107157682 |
100.00 |
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
|
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|
Total
(A)+(B)+(C) |
107157682 |
100.00 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of the Shareholder |
Details of Shares held |
Encumbered shares (*) |
Total shares (including
underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|||
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
|||
|
1 |
Khurana Gases Private Limited |
1,50,52,203 |
14.05 |
14520000 |
96.46 |
13.55 |
14.05 |
|
2 |
Suman Khurana |
1,50,44,911 |
14.04 |
0 |
0.00 |
0.00 |
14.04 |
|
3 |
Prem Kumar Khurana |
1,22,18,000 |
11.40 |
12218000 |
100.00 |
11.40 |
11.40 |
|
4 |
Prem Kumar Khurana |
48,00,000 |
4.48 |
0 |
0.00 |
0.00 |
4.48 |
|
5 |
Medical Engineers India Limited |
48,00,000 |
4.48 |
4800000 |
100.00 |
4.48 |
4.48 |
|
6 |
Pushkar Prem Kumar Khurana |
58,44,492 |
5.45 |
598600 |
10.24 |
0.56 |
5.45 |
|
7 |
Puneet Prem Kumar Khurana |
57,75,411 |
5.39 |
0 |
0.00 |
0.00 |
5.39 |
|
8 |
Vandana Khurana |
15,00,000 |
1.40 |
0 |
0.00 |
0.00 |
1.40 |
|
9 |
Varun Khurana |
16,02,000 |
1.49 |
0 |
0.00 |
0.00 |
1.49 |
|
10 |
Shyam Sunder Khurana |
12,20,000 |
1.14 |
0 |
0.00 |
0.00 |
1.14 |
|
11 |
Nishita Khurana |
10,000 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
12 |
Pooja Khurana |
1,000 |
0.00 |
0 |
0.00 |
0.00 |
0.00 |
|
|
Total |
6,78,68,017 |
63.33 |
32136600 |
47.35 |
29.99 |
63.33 |
(*) The term encumbrance has the same meaning as
assigned to it in regulation 28(3) of the SAST Regulations, 2011.
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
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full conversion of
warrants and convertible securities) as a % of diluted share capital |
|
|
1 |
Reliance Capital Trustee Company Limited
A/c Reliance Growth Fund |
2400000 |
2.24 |
2.24 |
|
|
2 |
Brightwill Limited |
4836714 |
4.51 |
4.51 |
|
|
3 |
Beacon India Pvt Equity Fund |
3634865 |
3.39 |
3.39 |
|
|
4 |
TVG India Investment Holdings Limited |
2598425 |
2.42 |
2.42 |
|
|
|
Total |
13470004 |
12.57 |
12.57 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of widest range of High Pressure Gas
Cylinders. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
Information denied by management |
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Bankers : |
· State Bank of Hyderabad · Citibank N.A. · ICICI Bank Limited ·
Standard Chartered Bank ·
Yes Bank Limited ·
Exim Bank of India |
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Facilities : |
NOTES: Long Term Borrowings: ·
Term Loan of US$ 5.00 Mn. from a bank is secured
by way of first pari passu charge on movable fixed assets of the plant at
Kandla SEZ up to 125% of the loan amount and non-disposal undertaking of the
shareholding of the Company in the subsidiary in China. The loan is repayable
in bullet in May 2014. The interest rate of the Borrowings is 6 Months’ LIBOR
plus 5.50% p.a. ·
Term Loan from another bank up to Rs.3250.000
Millions is secured by way of a.
First pari passu charge on all the fixed assets
of the Company, excluding a specific immovable property b.
Second pari passu charge on the current assets of
the Company c.
Pledge of 29.99% of the shares of the Company
held by the promoters d.
Pledge of all the shares of the subsidiaries held
by the Company e.
Personal guarantees from promoter directors and f.
Exclusive charge on certain residential and
commercial immovable properties owned by the Company, promoters, group
companies/firms. The loan is repayable in quarterly unequaled installments
commencing from January 2015 and ending in October 2020. The interest rate of
the Borrowing is 12.75% pa. Short
Term Borrowings: Working Capital facilities
from banks are secured by way of (i)
First pari passu charge in the form of
hypothecation of stocks and book debts of the Company and second pari passu
charge on all the fixed assets (excluding specific fixed assets) of the
Company. One of the banks has been provided additional security over a
specific immovable property of the Company. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Dalal and Shah Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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|
Other related parties where control exists: |
·
Medical Engineers (India) Limited ·
Khurana Fabrication Industries Private Limited ·
Khurana Exports Private Limited ·
Everest Industrial Gases Private Limited ·
Khurana Charitable Trust ·
Khurana Education Trust ·
G.N.M.Realtors Private Limited ·
Ukay Valves and Founders Private Limited |
|
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|
|
Subsidiary Companies : |
·
EKC Industries ( · EKC International FZE, UAE ·
EKC Industries (Thailand) Company Limited,
Thailand · Calcutta Compressions and Liquefaction Engineering Limited (CC and L) |
|
|
|
|
Step
Down Subsidiary Companies : |
·
EKC
Hungary Kft, Hungary ·
EKC
Europe GmbH, Germany · CP Industries Holdings Inc., USA |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Re. 2/- each |
Rs.250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
107157682 |
Equity Shares |
Re. 2/- each |
Rs.214.315 Millions |
|
|
|
|
|
RECONCILIATION OF
THE NUMBER OF SHARES
|
Equity Shares |
Number
of Shares |
Rs. In Millions |
|
|
|
|
|
Shares outstanding at the beginning of the year |
107157682 |
214.315 |
|
Shares outstanding
at the end of the year |
107157682 |
214.315 |
RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO SHARES
The Company has
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. 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 the shareholding.
DETAILS OF SHARES
HELD BY SHAREHOLDERS HOLDING MORE THAN 5% OF THE AGGREGATE SHARES IN THE
COMPANY
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
P. K. Khurana (Promoter) |
12218000 |
11.40 |
|
Suman Khurana (Promoter) |
14213715 |
13.26 |
|
Khurana Gases Private Limited (Promoter) |
14550628 |
13.58 |
|
Reliance Capital Trustee Company Limited |
7000000 |
6.53 |
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 |
214.315 |
214.315 |
214.315 |
|
(b) Reserves & Surplus |
3505.601 |
4866.352 |
4998.590 |
|
(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) |
3719.916 |
5080.667 |
5212.905 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3059.510 |
198.524 |
1922.694 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
112.108 |
138.723 |
|
(c) Other long term
liabilities |
2.400 |
1.150 |
1.150 |
|
(d) long-term
provisions |
8.101 |
9.241 |
9.772 |
|
Total Non-current
Liabilities (3) |
3070.011 |
321.023 |
2072.339 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
668.027 |
1020.733 |
432.852 |
|
(b) Trade
payables |
490.600 |
329.964 |
524.651 |
|
(c) Other
current liabilities |
517.944 |
2288.224 |
456.943 |
|
(d) Short-term
provisions |
26.892 |
35.991 |
192.021 |
|
Total Current Liabilities
(4) |
1703.463 |
3674.912 |
1606.467 |
|
|
|
|
|
|
TOTAL |
8493.390 |
9076.602 |
8891.711 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
3061.228 |
3248.078 |
2224.852 |
|
(ii)
Intangible Assets |
13.476 |
18.392 |
23.054 |
|
(iii)
Capital work-in-progress |
264.990 |
244.059 |
1285.635 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
409.783 |
1092.648 |
1082.421 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
256.685 |
846.330 |
684.999 |
|
(e) Other
Non-current assets |
2.787 |
8.459 |
1.579 |
|
Total Non-Current
Assets |
4008.949 |
5457.966 |
5302.540 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
692.724 |
0.177 |
341.303 |
|
(b)
Inventories |
1768.474 |
2274.799 |
1529.223 |
|
(c) Trade
receivables |
565.875 |
635.963 |
694.436 |
|
(d) Cash
and cash equivalents |
132.776 |
127.204 |
121.758 |
|
(e)
Short-term loans and advances |
1149.877 |
460.808 |
718.327 |
|
(f) Other
current assets |
174.715 |
119.685 |
184.124 |
|
Total
Current Assets |
4484.441 |
3618.636 |
3589.171 |
|
|
|
|
|
|
TOTAL |
8493.390 |
9076.602 |
8891.711 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2470.265 |
3113.246 |
3791.160 |
|
|
|
Other Income |
113.856 |
122.989 |
92.490 |
|
|
|
TOTAL (A) |
2584.121 |
3236.235 |
3883.650 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1733.983 |
2060.858 |
1904.634 |
|
|
|
Purchases of Stock-in-Trade |
4.511 |
104.650 |
24.389 |
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
(89.911) |
(304.558) |
406.016 |
|
|
|
Employee Benefits Expense |
212.607 |
237.432 |
262.364 |
|
|
|
Other Expenses |
658.070 |
690.394 |
691.735 |
|
|
|
Own Goods Capitalized |
(6.954) |
(24.125) |
(24.500) |
|
|
|
Foreign Exchange Variation (Gain)/ Loss (Net) |
98.556 |
306.058 |
(9.146) |
|
|
|
TOTAL (B) |
2610.862 |
3070.709 |
3255.492 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(26.741) |
165.526 |
628.158 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
331.872 |
125.596 |
31.484 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(358.613) |
39.930 |
596.674 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
225.432 |
238.710 |
241.902 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(584.045) |
(198.780) |
354.772 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(109.071) |
(76.615) |
129.597 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(474.974) |
(122.165) |
225.175 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
746.763 |
900.063 |
970.717 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
100.000 |
|
|
|
Dividend |
21.432 |
26.789 |
160.737 |
|
|
|
Tax on Dividend |
3.642 |
4.346 |
35.092 |
|
|
BALANCE CARRIED
TO THE B/S |
246.715 |
746.763 |
900.063 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
244.655 |
644.438 |
1215.888 |
|
|
|
Exports of consumables / RM Pipe on FOB basis |
87.241 |
0.000 |
0.000 |
|
|
|
Commission for bank guarantee |
4.333 |
3.583 |
5.135 |
|
|
|
Interest on loans given |
25.243 |
22.163 |
20.101 |
|
|
|
Others |
0.000 |
0.403 |
0.000 |
|
|
TOTAL EARNINGS |
361.472 |
670.587 |
1241.124 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
937.612 |
2136.223 |
1356.011 |
|
|
|
Stores & Spares |
1.540 |
2.678 |
5.737 |
|
|
|
Capital Goods |
0.000 |
0.000 |
111.649 |
|
|
TOTAL IMPORTS |
939.152 |
2138.901 |
1473.397 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
(4.43) |
(1.14) |
2.13 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(18.38)
|
(3.77)
|
5.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(23.64)
|
(6.38)
|
9.36 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.73)
|
(2.57)
|
5.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.16)
|
0.04
|
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.00
|
(0.16)
|
0.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.63
|
0.98
|
2.23 |
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 |
214.315 |
214.315 |
214.315 |
|
Reserves & Surplus |
4998.590 |
4866.352 |
3505.601 |
|
Net
worth |
5212.905 |
5080.667 |
3719.916 |
|
|
|
|
|
|
long-term borrowings |
1922.694 |
198.524 |
3059.510 |
|
Short term borrowings |
432.852 |
1020.733 |
668.027 |
|
Total
borrowings |
2355.546 |
1219.257 |
3727.537 |
|
Debt/Equity
ratio |
0.452 |
0.240 |
1.002 |
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 |
3,791.160 |
3,113.246 |
2,470.265 |
|
|
|
(17.881) |
(20.653) |
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
|
3,791.160 |
3,113.246 |
2,470.265 |
|
Profit |
225.175 |
(122.165) |
(474.974) |
|
|
5.94% |
(3.92%) |
(19.23%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITY
OF LONG TERM BORROWINGS DETAIL:
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
||
|
Current Maturity of Long Term Borrowings |
|
|
|
|
-
Foreign Currency Convertible Bonds |
-- |
1790.478 |
-- |
|
-
External Commercial Borrowings |
-- |
204.626 |
267.900 |
|
-
Sales Tax Deferment Loan (Interest Free) |
33.681 |
4.703 |
4.703 |
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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 |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOAN:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Long Term
Borrowings |
|
|
|
Sales Tax
Deferment Loan (Interest Free) |
177.884 |
198.524 |
|
Short Term Borrowings |
|
|
|
Working Capital
Facility |
0.000 |
88.002 |
|
Loan from related
Parties |
42.140 |
0.000 |
|
|
|
|
|
Total |
220.024 |
286.526 |
Notes:
Long Term Borrowings
The Interest-free Sales Tax Deferment Loan is repayable in six equal
annual installments, with the last installment falling due in financial year
2018-2019.
PERFORMANCE REVIEW
The financial year
2012-13 continued to witness difficult and competitive business scenario and
conditions across all business segments and geographies of the Company, in tune
with the gradual slow-down of the Indian economy, quarter on quarter, in
general, and the automobile sector in particular, resulting in lower sales and
margins of the Company on standalone basis. The subsidiaries of the Company
operating in different geographies across the globe witnessed similar situation
and conditions due to various factors impacting each of them. The persistent
depreciation during the year of the Indian Rupee vis-à-vis the US Dollars too
added to losses during the first half of the financial year. On standalone
basis, for FY 2012-13, revenues at Rs.2405.901 Millions were lower by around
21% over the previous year's revenues of Rs.3050.516 Millions and Net Loss at
Rs.(474.974) Millions was increase by around 289% over the previous year's net
profit of Rs.(122.165) Millions. On consolidated basis, revenues at Rs.5313.829
Millions were lower by around 21% over the previous year's revenues of Rs.6694.764
Millions and Net Loss at Rs.(1318.230) Millions was increase by around 2913%
over the previous year's net profit of Rs.46.862 Millions. The Standalone Net
Loss is after considering Foreign Currency Loss of 98.556 Millions and the
Consolidated Net Profit is after considering Foreign Currency Losses of
Rs.102.799 Millions and Provision for Doubtful Debts of Rs.402.674 Millions.
MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
The Financial Year
2012-13 continued to be a challenging year for the world and domestic economy
as well as subject. The global economy, though improved slowly, did not grow to
the extent expected at the commencement of the year. The US economy improved,
though marginally, driven by the consumer and housing sector, with interest rates
continuing to remain at historic lows and the quantitative easing measures at
unprecedented highs. Many European countries faced recession with high
unemployment, low demand and weakened banking systems. China too experienced
slowdown in its growth, partly due to weak global demand and partly due to the
deliberate move of its government. In India, economic growth fell sharply,
touching a decade low, the industrial sector experienced severe slump, the
trade and current account deficit reached unprecedented risky levels and the
inflation remained stubbornly high during the major part of the year, interest
rates remained high and capital formation took a severe beating; though, the
fiscal deficit remained checked, within budgeted limits. The above macro factors,
especially those prevailing in India, adversely impacted demand for the
Company’s products and their realisation during the year, which severely dented
the operating margins.
DOMESTIC BUSINESS
The sharp decline
during the year in the growth rate of the GDP and of the industrial production
in general and the automobile sector in particular adversely impacted the
demand for the high pressure seamless cylinders, due to the high co-relation of
the demand for the Company’s products with the macro economic situation. The
year continued to witness slow demand especially from the Original Equipment
Manufacturers and Retrofit segments of CNG cylinder business in India. The
demand for CNG cylinders was further impacted because of sudden hike in gas
prices in some states like Gujarat. The demand for Industrial cylinders too
witnessed a slight decline. Due to the competitive scenario and rupee
depreciation, there was pressure on realizations and margins. However, certain
positive signs are emerging, such as, the initiative taken by the Government of
India to rationalize the natural gas prices which is expected to increase the
supply of the natural gas and thus the demand for cylinders, the order of the
Gujarat High Court to the Government of Gujarat to convert all the four
wheelers in the state from petrol to CNG, etc.
INTERNATIONAL
BUSINESS
(a)
Dubai Operations
Due to the continuing geo-political situation in the Middle- East Asia,
sales to Iran, which till 2010-11 accounted for a substantial portion of its business,
remained affected during the year, with concomitant effect on the operating
results. Pursuant to the initiative undertaken during the previous year to tide
over the situation, new markets, such as, South America, CIS countries, etc.
have been developed. A branch office has been opened in Colombia to cater to
the South American market timely and efficiently.
(b)
USA Operations
Due to the improved economic and business situation in the USA, the
performance during the year was stable and in consolidation phase, with near
break-even at normalized profit before tax level. On consolidation of accounts,
the results however continue to report a loss due to amortization of intangible
assets acquired during the business acquisition.
The order book continuous to remain good during the current year, with
focus on higher margin business. The huge shale gas discovery in the USA with
concomitant low natural gas prices in the USA, the thrust on the increased
usage of natural gas and its promotion by the US Government augurs well for the
business in the coming years, which will also provide business support to the
India, Dubai and China operations, from where CNG cylinders will be sourced.
During the year, the US subsidiary has set up a plant to manufacture
Type IV composite cylinders for which there is ever increasing preference and
demand due to the light weight of these cylinders. The plant is expected to
commence operations in the second quarter. When fully commissioned, the
composite cylinders business will provide annual turnover of about US$ 10 Mn.
with much higher incremental margins.
The US subsidiary is in the process of obtaining approvals for marketing
of Industrial cylinders in the US for which there is a good demand. The
industrial cylinders will be sourced from Indian plants of the Company.
(c)
China Operations
The China CNG cylinders operations continue to remain affected due to
high local competition and price sensitive environment, which scenario is
expected to continue. During the latter half of the year, the China plant
commenced manufacture of Type II composite cylinders which command higher
demand and realisation, and have lower competition. These cylinders will boost
volumes and margins. The Jumbo cylinders segment has good business potential due
to low competition and high demand and growth prospects. The business thrust,
going forward, will be on the Jumbo cylinders segment.
(d)
Europe Operations
The Europe subsidiary provided technical know-how and support to the US
operations for setting up the Type IV Composite plant and initiated efforts to
develop the European markets for cylinders manufactured by the Indian, Dubai
and China plants.
FINANCIAL
PERFORMANCE VIS-A-VIS OPERATIONAL
PERFORMANCE
The last year has again
been very challenging for the Company on account of the continued challenges
presented by the economic environment, local as well as international. The
situation got aggravated due to the slump in the industrial production in India
and the more than expected fall in the GDP growth.
INTERNAL CONTROL
SYSTEM
Subject believes
in formulating adequate and effective internal control systems and implementing
the same strictly to ensure that assets and interests of the Company are
safeguarded and reliability of accounting data and accuracy are ensured with
proper checks and balances. The Internal control system is improved and
modified continuously to meet the changes in business conditions, statutory and
accounting requirements.
Subject has an
internal audit function, which is empoweredto examine the adequacy and the
compliance with policies, plans and statutory requirements. It is also
responsible for assessing and improving the effectiveness of risk management,
control and governance process. The management of the Company duly considers
and takes appropriate action on the recommendations made by the statutory
auditors, internal auditors and the independent Audit Committee of the Board of
Directors.
The prevailing
system of internal controls and internal audit are considered to be adequate
vis-a-vis the business requirements. In order to further strengthen the
internal control systems and with a view to automating the various processes of
the business, EKC is implementing an Enterprise Wide Resource Planning (ERP)
system.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10418476 |
15/03/2013 |
3,250,000,000.00 |
YES BANK LIMITED |
9th Floor, Nehru
Centre, Discovery Of India, Dr. |
B72616246 |
|
2 |
10384879 |
09/10/2012 |
3,250,000,000.00 |
YES BANK LIMITED |
9th Floor, Nehru
Centre, Discovery Of India, Dr. |
B61523775 |
|
3 |
10351760 |
24/04/2012 |
261,150,000.00 |
EXPORT-IMPORT BANK OF INDIA |
Export-Import Bank Of India, World Trade Centre Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India |
B38229621 |
|
4 |
10310561 |
12/10/2011 |
150,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India |
B22700785 |
|
5 |
10153982 |
22/09/2012 * |
810,000,000.00 |
STATE BANK OF HYDERABAD |
Corporate Finance Branch, 11 C, Mittal Towers, 1st Floor, 210, Nariman Point, Mumbai - 400021, Maharashtra, India |
B60264132 |
|
6 |
10009493 |
07/06/2010 * |
1,350,000,000.00 |
CITIBANK N.A. |
Bandra Kurla Complex, Bandra, Mumbai - 400021, Maharashtra, India |
A87282273 |
|
7 |
80021414 |
30/09/2005 |
150,000,000.00 |
CITIBANK NA |
Bandra Kurla Complex, Mumbai - 400051, Maharashtra, India |
- |
|
8 |
90186859 |
29/06/2001 |
142,500,000.00 |
STATE BANK OF HYDERABAD |
11/C;Mittal Tower, 210; Nariman Point, Mumbai - 400021, Maharashtra, India |
- |
|
9 |
90186779 |
08/10/2001 * |
57,000,000.00 |
ICICI BANK LIMITED |
215; Free Press House, Nariman Point, Mumbai - 400021, Maharashtra, India |
- |
|
10 |
90186463 |
30/06/1997 |
100,000,000.00 |
The Industrial Credit and Investment Corpn. Of India Limited |
163; Backbay Reclamation, Bombay - 400020, Maharashtra, India |
- |
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Electrical Installation
·
Plant and Machinery
· Vehicles
·
Office Equipments
·
Furniture and Fixtures
·
Computers
·
Gas Cylinders
·
Electrical Installation
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.61.07 |
|
UK Pound |
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.84.49 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
35 |
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.