MIRA INFORM REPORT
|
Report Date : |
18.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
EMCO LIMITED (w.e.f.22.01.1999) |
|
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Formerly Known
As : |
EMCO TRANSFORMERS LIMITED |
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Registered
Office : |
N-104, MIDC Area, Jalgaon – 425003, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
19.09.1964 |
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Com. Reg. No.: |
11-013011 |
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Capital
Investment / Paid-up Capital : |
Rs. 130.274
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31102MH1964PLC013011 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
NSKE00379B |
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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 Power Transformers, Transmission Towers
and Sub-stations, Electronic Energy Meters and Generation of Electricity from
Wind Mill and Solar Farm (Power). |
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|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 22580000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by dip in
profitability resulting in the significantly lower cash accruals in FY13 and
stretched working capital cycle. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealings 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.2,453.2 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 |
CARE |
|
Rating |
Long term Bank facilities : BB+ |
|
Rating Explanation |
Moderate risk of default and high credit
risk. |
|
Date |
October 15, 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term Bank facilities : A4+ |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
October 15, 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 DECLINED BY
|
Name : |
Mr. Balmukund Somani |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-7738687730 |
|
Date : |
17.06.2014 |
LOCATIONS
|
Registered Office/ Factory 1 (Industrial Transformers) : |
N-104, MIDC Area, Jalgaon – 425003, Maharashtra, India |
|
Tel. No.: |
91-257-2272462/ 2272572 |
|
Mobile No.: |
91-7738687730 (Mr. Balmukund Somani) |
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Fax No.: |
91-257-2272598 |
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E-Mail : |
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Website : |
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Corporate Office : |
1st Floor, Piramal Tower, Peninsula Corporate Park, G. K. Kadam Marg, Lower Parel, Mumbai - 400013, Maharashtra, India |
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Head Office/ Factory 2 (Power Transformers and Meters) : |
Plot No. F-5, Road No. 28, Wagle Industrial Estate, Thane (West), Thane - 400604, Maharashtra, India |
|
Tel. No.: |
91-22-40404500 |
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Fax No.: |
91-22-25820571/ 25830527 |
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E-Mail : |
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Factory 3 (Distribution Transformers) : |
Gat No. 113, 114, 115, Umala, Aurangabad Road, Jalgaon – 425003, Maharashtra, India |
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Tel. No.: |
91-257-2350506/ 07 |
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Fax No.: |
91-257-2350505 |
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E-Mail : |
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|
Factory 4 (Transmission
Tower Plant - Vadodara) : |
519/521, Asoj, Vadodara - Halol Highway, Vadodara - 391510, Gujarat, India |
|
Tel. No.: |
91-2668-281113/ 4 |
|
Fax No.: |
91-2668-281030 |
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E-Mail : |
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Factory 5 (Meters) : |
Survey No. 57/2, Building No. B-3, Sanjay Industrial
Estate, Gala No. 1-8, |
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Tel. No.: |
91-260-2668177/ 78 |
|
Fax No.: |
91-260-2668176 |
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E-Mail : |
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Regional Offices : |
Located at : · New Delhi · Kolkata · Bangalore · Chennai · Lucknow · Ahmedabad · Panchkula · Raipur |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Rajesh S. Jain |
|
Designation : |
Chairman |
|
Qualification : |
B.E. (Electronics) |
|
|
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|
Name : |
Mr. Shailesh S. Jain |
|
Designation : |
Vice Chairman |
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Qualification : |
B.E. (Chemical) |
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|
Name : |
Mr. K. N. Shenoy |
|
Designation : |
Independent Director |
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Qualification : |
B.E. (Electrical), PGDBA |
|
|
|
|
Name : |
Mr. S.V. Deo |
|
Designation : |
Independent Director |
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Qualification : |
B.E. (Electrical), DBM, MIE |
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|
|
|
Name : |
Mr. T.N.V. Ayyar |
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Designation : |
Independent Director |
|
Qualification : |
B Com, FCA |
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|
|
|
Name : |
Mr. Bheru Choudhary |
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Designation : |
Independent Director |
|
Qualification : |
B.Com, LLM |
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|
|
|
Name : |
Mr. Sanjay Bhatnagar |
|
Designation : |
Independent Director |
|
Qualification : |
M.E, MBA (Harvard University) |
KEY EXECUTIVES
|
Name : |
Mr. Balmukund Somani |
|
Designation : |
Finance Manager |
|
|
|
|
Name : |
Mr. Nitin Sawant |
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Designation : |
Accounts Manager |
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|
|
|
Name : |
Mr. Praveen Kumar |
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Designation : |
Company Secretary |
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Qualification : |
B Com, LLB, ACS |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of
Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22365140 |
34.34 |
|
|
5916833 |
9.08 |
|
|
28281973 |
43.42 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
28281973 |
43.42 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
3231500 |
4.96 |
|
|
300 |
0.00 |
|
|
574320 |
0.88 |
|
|
141339 |
0.22 |
|
|
3947459 |
6.06 |
|
|
|
|
|
|
12692497 |
19.49 |
|
|
|
|
|
|
12966947 |
19.91 |
|
|
5675176 |
8.71 |
|
|
1572808 |
2.41 |
|
|
693103 |
1.06 |
|
|
62975 |
0.10 |
|
|
76062 |
0.12 |
|
|
740218 |
1.14 |
|
|
450 |
0.00 |
|
|
32907428 |
50.52 |
|
Total Public
shareholding (B) |
36854887 |
56.58 |
|
Total (A)+(B) |
65136860 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
65136860 |
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
Shareholders |
Details of Shares held |
|
|
No. of Shares held |
As a % |
||
|
1 |
Emco Investments Private Limited |
59,16,833 |
9.08 |
|
2 |
Tripti R Jain |
13,62,200 |
2.09 |
|
3 |
Shailesh Jain |
62,99,340 |
9.67 |
|
4 |
Rajesh Jain |
95,99,345 |
14.74 |
|
5 |
Ratna Jain |
43,54,255 |
6.68 |
|
6 |
Yachana S Jain |
7,50,000 |
1.15 |
|
|
Total |
2,82,81,973 |
43.42 |
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
Shareholders |
No. of Shares held |
Shares as % |
|
|
1 |
ICICI Prudential Life Insurance
Company Limited |
3074222 |
4.72 |
|
|
2 |
Reliance Capital Trustee Company
Limited A/c Reliance Diversified Power Sector Fund |
3056455 |
4.69 |
|
|
3 |
Reliance Capital Limited |
1943000 |
2.98 |
|
|
4 |
Sameer Shantilal Muttha |
900240 |
1.38 |
|
|
5 |
A E Securities & Investments
Private Limited |
900000 |
1.38 |
|
|
6 |
Sushil Capital Private Limited |
773000 |
1.19 |
|
|
7 |
Mahima Stocks Private Limited |
822315 |
1.26 |
|
|
8 |
Farida Asif Petiwala |
827873 |
1.27 |
|
|
|
Total |
12297105 |
18.88 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Power Transformers, Transmission Towers
and Sub-stations, Electronic Energy Meters and Generation of Electricity from
Wind Mill and Solar Farm (Power). |
GENERAL INFORMATION
|
Suppliers : |
· Sterlite Industry · PASCO |
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Customers : |
Wholesalers and Retailers · Power Grade Corporation of India · NTPC |
||||||||||||||||||||||||||||||||||||||||||
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|
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No. of Employees : |
Information declined by the management |
||||||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||||||||||
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Bankers : |
· Dena Bank · State Bank of India · Union Bank of India · Bank of India · State Bank of Hyderabad · Canara Bank · Andhra Bank · The Federal Bank Limited · ING Vysya Bank Limited · Standard Chartered Bank |
||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
|
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|
|
|
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Banking
Relations : |
-- |
|
|
|
|
Statutory Auditor 1 : |
|
|
Name : |
P. Raj and Company Chartered Accountants |
|
|
|
|
Statutory Auditor 1 : |
|
|
Name : |
Chaturvedi and Shah Chartered Accountants |
|
|
|
|
Solicitors : |
ALMT Legal |
|
|
|
|
Subsidiaries : |
· Emco Power Limited · Emco Renewable Energy Limited · Emco Infrastructure Limited · East West Power Generation Limited · Emco Overseas Pte. Limited · Emco Edison Transformer Pty. Limited · PT Setenco Investa Niaga ·
Shekhawati Transmission Service Company
Limited (w.e.f.01.02.2013) |
|
|
|
|
Joint Ventures : |
· PT Vardhaman Logistics · PT Vardhaman Mining Services · Rabaan (s) Pte. Limited · Shyam Emco Infrastructure Limited · Kalinga Energy and Power Limited ·
PT Bina Insan Sukses Mandiri |
|
|
|
|
Association of
Persons : |
Arki Aviation |
|
|
|
|
Entities where Key
Management Personnel have Significant Influence : |
· Emco Foundation ·
Emco Power Quality Solutions Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75000000 |
Equity Shares |
Rs. 2/- each |
Rs. 150.000 Millions |
|
500000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
65136860 |
Equity Shares |
Rs. 2/- each |
Rs. 130.274
Millions |
|
|
|
|
|
(Of the above
61,00,000 shares represent shares which were issued as fully paid up to
shareholders of the erstwhile India Energy Investments Private Limited on its
amalgamation with the Company for consideration other than cash.)
a) Reconciliation
of the number of shares
|
|
31.03.2013 |
|
|
|
Number of Shares |
Amount |
|
Balance as at the beginning of the year |
65136860 |
130.274 |
|
Add : Issued during the year |
-- |
-- |
|
Balance as at the end of the year |
65136860 |
130.274 |
b) Details of shareholders
holding shares more than 5% of issued share capital
|
Name of the
shareholders |
31.03.2013 |
|
|
|
Number of Equity Shares Held |
% of Equity Shares held |
|
Rajesh Jain |
95,99,345 |
14.74 |
|
Shailesh Jain |
62,99,340 |
9.67 |
|
Emco Investments Private Limited* |
59,16,833 |
9.08 |
|
Ratna Jain |
43,54,255 |
6.68 |
|
Reliance Capital Trustee Company Limited A/C Reliance Diversified
Power Sector Fund |
33,65,855 |
5.17 |
* Formerly known as Purna Properties Investment Private Limited
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 |
130.274 |
130.274 |
130.274 |
|
(b) Reserves & Surplus |
5515.485 |
5501.775 |
5435.323 |
|
(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) |
5645.759 |
5632.049 |
5565.597 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
311.675 |
566.673 |
486.960 |
|
(b) Deferred tax liabilities (Net) |
74.221 |
47.445 |
36.591 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
long-term provisions |
13.926 |
11.877 |
14.788 |
|
Total
Non-current Liabilities (3) |
399.822 |
625.995 |
538.339 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
3646.424 |
3443.436 |
2872.723 |
|
(b)
Trade payables |
3204.126 |
3613.772 |
3206.180 |
|
(c)
Other current liabilities |
1668.441 |
990.561 |
1627.194 |
|
(d)
Short-term provisions |
135.046 |
113.205 |
77.606 |
|
Total
Current Liabilities (4) |
8654.037 |
8160.974 |
7783.703 |
|
|
|
|
|
|
TOTAL |
14699.618 |
14419.018 |
13887.639 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2835.188 |
2827.713 |
2204.239 |
|
(ii)
Intangible Assets |
75.042 |
100.593 |
20.618 |
|
(iii)
Capital work-in-progress |
50.867 |
40.355 |
69.120 |
|
(iv) Intangible assets under development |
11.177 |
18.819 |
100.506 |
|
(b) Non-current
Investments |
98.772 |
96.172 |
96.172 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
632.456 |
618.508 |
297.771 |
|
(e)
Other Non-current assets |
18.305 |
18.479 |
0.174 |
|
Total
Non-Current Assets |
3721.807 |
3720.639 |
2788.600 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1850.292 |
1647.669 |
1534.502 |
|
(c)
Trade receivables |
5860.547 |
6446.713 |
5921.172 |
|
(d)
Cash and cash equivalents |
23.796 |
79.369 |
1553.937 |
|
(e)
Short-term loans and advances |
3243.176 |
2524.628 |
2089.428 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
10977.811 |
10698.379 |
11099.039 |
|
|
|
|
|
|
TOTAL |
14699.618 |
14419.018 |
13887.639 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
6688.096 |
8095.267 |
10494.698 |
|
|
|
Other Income |
9.636 |
3.918 |
15.992 |
|
|
|
TOTAL (A) |
6697.732 |
8099.185 |
10510.690 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4778.650 |
6240.587 |
9096.757 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
10.332 |
(134.918) |
(94.043) |
|
|
|
Employees benefits expense |
467.322 |
564.656 |
567.337 |
|
|
|
Other expenses |
689.096 |
630.751 |
954.941 |
|
|
|
Exceptional Items |
(8.496) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
5936.904 |
7301.076 |
10524.992 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
760.828 |
798.109 |
(14.302) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
498.976 |
504.026 |
454.315 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
261.852 |
294.083 |
(468.617) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
206.231 |
202.593 |
187.497 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE
TAX (E-F) (G) |
55.621 |
91.490 |
(656.114) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
26.776 |
10.855 |
(213.787) |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
28.845 |
80.635 |
(442.327) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
2019.823 |
1954.328 |
2411.461 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
13.027 |
13.027 |
13.027 |
|
|
|
Tax on Dividend |
2.215 |
2.113 |
1.779 |
|
|
BALANCE CARRIED TO
THE B/S |
2033.426 |
2019.823 |
1954.328 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Direct Export |
548.854 |
289.501 |
507.510 |
|
|
|
Other Recovery |
0.000 |
3.536 |
0.025 |
|
|
|
Deemed Exports (including Local Currency) |
0.000 |
0.000 |
511.857 |
|
|
|
Interest Income |
46.607 |
51.733 |
0.000 |
|
|
TOTAL EARNINGS |
595.461 |
344.770 |
1019.392 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials / Spare Parts |
704.487 |
298.308 |
652.562 |
|
|
|
Capital Goods |
8.617 |
0.520 |
138.490 |
|
|
TOTAL IMPORTS |
713.104 |
298.828 |
791.052 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
0.44 |
1.24 |
(7.05) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
31.03.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1381.600 |
1848.400 |
1797.000 |
3279.800 |
|
Total Expenditure |
1204.300 |
1664.200 |
1583.100 |
3039.600 |
|
PBIDT (Excl OI) |
177.300 |
184.200 |
213.900 |
240.200 |
|
Other Income |
7.600 |
47.800 |
0.600 |
19.900 |
|
Operating Profit |
184.900 |
232.000 |
214.500 |
260.000 |
|
Interest |
122.300 |
121.200 |
148.500 |
191.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
62.600 |
110.800 |
66.000 |
68.800 |
|
Depreciation |
51.800 |
50.900 |
49.700 |
47.400 |
|
Profit Before Tax |
10.800 |
59.900 |
16.300 |
21.300 |
|
Tax |
3.600 |
19.900 |
6.400 |
7.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
7.200 |
40.000 |
9.900 |
13.700 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
7.200 |
40.000 |
9.900 |
13.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.43 |
1.00 |
(4.21) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.83 |
1.13 |
(6.25) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.38 |
0.64 |
(4.82) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01 |
0.02 |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.70 |
0.71 |
0.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.27 |
1.31 |
1.43 |
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 |
130.274 |
130.274 |
130.274 |
|
Reserves & Surplus |
5435.323 |
5501.775 |
5515.485 |
|
Net
worth |
5565.597 |
5632.049 |
5645.759 |
|
|
|
|
|
|
long-term borrowings |
486.960 |
566.673 |
311.675 |
|
Short term borrowings |
2872.723 |
3443.436 |
3646.424 |
|
Total
borrowings |
3359.683 |
4010.109 |
3958.099 |
|
Debt/Equity
ratio |
0.604 |
0.712 |
0.701 |
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 |
10494.698 |
8095.267 |
6688.096 |
|
|
|
(22.863) |
(17.383) |
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 |
10494.698 |
8095.267 |
6688.096 |
|
Profit/ (Loss) |
(442.327) |
80.635 |
28.845 |
|
|
(4.21%) |
1.00% |
0.43% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
Current
Maturities of Long Term Debt |
|
|
|
|
12.50% Non-Convertible Debentures |
166.667 |
166.667 |
166.667 |
|
Vehicle Loans |
0.381 |
2.326 |
2.222 |
|
Term Loans from Banks |
|
|
|
|
i) Rupee Loan |
64.680 |
86.240 |
86.240 |
|
ii) Foreign currency Loan |
44.525 |
0.000 |
0.000 |
|
|
|
|
|
|
Total |
276.253 |
255.233 |
255.129 |
|
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming financial
year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
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 |
LITIGATION DETAILS
|
HIGH COURT OF
BOMBAY |
|
CASE DETAILS BENCH: BOMBAY |
|
Lodging No: SL/3026/2011 Filing Date: 21.10.2011 Reg. No.: S/448/2012 Reg. Date: 17.02.2012 |
|
Petitioner: CTR MANUFACTURING INDUSTRIES LIMITED Respondent: EMCO LIMITED Petn. Adv : PARAS KUHAD AND ASSOCIATES (0) Resp.Adv.: RAHUL M.KADAM (1) District: MUMBAI |
|
Bench: SINGLE Status: Pre-Admission
Category: PATENT ACT Next Date: 24.06.2014
Stage: FOR ADMISSION/DENIAL OF DOCUMENTS Coram: HON’BLE SHRI JUSTICE G.S. PATEL Last Date: 10.06.2014
Stage: FOR DIRECTION [ORIGINAL SIDE MATTERS] Last Coram: HON’BLE SHRI JUSTICE G.S. PATEL |
|
Act: Code of Civil Procedure 1908 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10496877 |
29/03/2014 |
250,000,000.00 |
UNION BANK OF
INDIA |
INDUSTRIAL
FINANCE BRANCH, 66/80, MUMBAI SAMACHAR MARG, MUMBAI, MAHARASHTRA - 400023,
INDIA |
C05256219 |
|
2 |
10462208 |
06/11/2013 |
300,000,000.00 |
DENA BANK |
DENA CORPORATE CENTRE,
C-10, G-BLOCK, BANDRA KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA -
400051, INDIA |
B90346917 |
|
3 |
10428082 |
02/05/2013 |
3,350,000,000.00 |
UNION BANK OF
INDIA |
INDUSTRIAL
FINANCE BRANCH, M S MARG, MUMBAI, MAHARASHTRA - 400023, INDIA |
B75877761 |
|
4 |
10303843 |
21/05/2012 * |
357,500,000.00 |
AXIS BANK
LIMITED |
AXIS HOUSE C-2,
WADIA INTERNATIONAL CENTRE, PANDU |
B41022971 |
|
5 |
10013422 |
12/07/2013 * |
250,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE |
B80596737 |
|
6 |
80021518 |
16/03/2012 * |
17,040,600,000.00 |
DENA BANK |
C-10, G-BLOCK,, BANDRA
KURLA COMPLEX, BANDRA EAST, MUMBAI, MAHARASHTRA - 400051, INDIA |
B36917326 |
|
7 |
80060162 |
05/10/1996 * |
243,000,000.00 |
THE SAKURA BANK
LIMITED |
2-B, MITTAL
COURT, 224 NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
- |
|
8 |
80016363 |
26/05/2008 * |
10,455,000,000.00 |
DENA BANK |
COPRPORATE
BUSINESS BRANCH, PLOT NO.C-10, G- BLOCK, BANDRA KURLA COMPLEX, BANDRA (EAST),
MUMBAI, MAHARASHTRA - 400051, INDIA |
A39946405 |
* Date of charge modification
REVIEW OF
OPERATIONS
During the year, Income from Sales and Services was Rs. 6688.100
Millions against Rs. 8095.300 Millions in the previous year. The Company has
earned a net profit of Rs. 28.800 Millions in the current financial year
against the net profit of Rs. 80.600 Millions in the previous financial year.
MANAGEMENT’S
DISCUSSION AND ANALYSIS REPORT
ECONOMY AND MARKET
OVERVIEW
The slowdown in economic growth which began few years back extended in
the financial year 2012-13. The GDP growth reduced from 6.2% (previous year) to
5 % in the financial year ended 31st March 2013 which is the lowest in last
decade.
The prevailing issues related to fuel linkage/ supply, high cost of
fuel, delay in statutory clearances, financial constraints and land acquisition
delayed the ordering of major electrical equipments. The sector that the
company operates has also been affected by slowdown in revenue growth due to
overcapacity, slowing demand, high interest rates resulting in margin
compression.
POWER SECTOR IN
INDIA
In the 12th five year plan, the major focus is on new generation
capacity, however power Transmission and Distribution also needs strong focus.
The total generation target under the said plan is about 107000 MW whereas
target for transmission line is about 109440 Ckt km of line length and 270000
MVA of substation capacity.
In order to meet the growing power demand, strong transmission network
is required between resource generation complex and bulk consumption centers. High
capacity transmission corridor comprising 765kV AC and
+/- 800kV 6000MW HVDC system along with 400kV AC and +/- 500/600kV,
2500MW/6000 MW have been planned to facilitate transmission of power from
remotely located generation center to distribution center.
Presently, the T &D sector is facing challenges mainly on account of
ROW (Right of way) issues, availability of land, shortage of skilled labour and
regulation of power flow due to wide variation in demand on daily and seasonal
basis.
The giant PSUs in the power sector plan to invest Rs. 500000.000
Millions in various projects although the private sector has been stymied by
fuel scarcity and distribution losses. A major chunk of these investments will
come from internal and extra-budgetary resources of the PSUs while the
government will pump in close to Rs. 100000.000 Millions through gross
budgetary support.
BUSINESS WISE
REVIEW
TRANSFORMER
BUSINESS
Inspite of slow-down in Power Sector due to high cost of funding and
slow demand, the company received considerable number of prestigious orders
from various utilities and industries.
During the year 2012-13, Thane Plant produced and dispatched 125 nos.
large rating of Power Transformers while Jalgaon Plant produced and dispatched
461 nos. medium & Distribution Transformers.
Company has now full-fledged manufacturing facilities to manufacture
tanks up to 500 MVA transformer with installed capacity of 200 MT/per month.
This facility has been approved by various utilities including NTPC.
Thane Plant has now up-graded its manufacturing and testing facility
upto 500 MVA, 400 kV, 3 Phase Power Transformers. Plant has also installed
State-of-Art Impulse Generator having capacity of 2000 KVP, 200 Kilo Joules
procured from Haefely, Switzerland.
The Company has also started focusing on Service business with a long
term view to growing this business and is termed as “EMCO Care”. This
initiative has been taken in order to provide authentic services for repair of
own as well as other make of transformers. Company is now registered with all
major utility as authorized Service Provider for repairs of all kinds of
transformers.
PROJECT BUSINESS
The company has positioned itself as a leading player in transmission of
power. The synergy is achieved through
two SBUs within their project business – Substations SBU and
Transmission Lines SBU.
SUB- STATION (SBU)
This Business is executing many 400/220/132 kV AIS (Air Insulated
Sub-station) as well as GIS (Gas Insulated Substation) projects for various utilities
across the country.
During the year, this Business has commissioned 8 projects across the
country of 400 kV / 220 kV / 132 kV Class for MSETCL, DTL, WBSETCL, HVPNL and
other SEBs. This business has also strategically started quoting for turnkey EPC
projects in select countries.
It has also carved out its own space in the fast growing GIS business
segment after successful completion of 220 kV GIS Sub- Station for MSETCL.
This business is now gearing up to enter in the 765 kV market for
substations as this segment is expected to grow rapidly in the coming years.
TRANSMISSION LINES
(SBU)
During the financial year 2012-13 this SBU has successfully commissioned
765 kV Transmission Lines having route length about 200 KMS. With the
completion of the said line this SBU has successfully commissioned Prestigious
Lines of 765 kV Quad and 400 kV Quad having total route length of more than 500
kms.
Further this SBU has made stellar entry in 800 kV HVDC segment by
bagging prestigious order of Rs. 4580.000 Millions from Power Grid Corporation.
It has also received prestigious order from an International utility for supply
of towers from its Transmission Tower Factory situated at Vadodara.
Presently this SBU is executing various Projects of PGCIL, SEBs and IPPs
and expected to strengthen the order book by aggressively targeting domestic as
well as intentional business in select countries. This SBU will continue to be
the growth engine for the company in the coming years.
METER DIVISION
They continue in their endeavor to meet the evolving requirements of
added functionalities to create value for their customers and are gearing up to
address the upcoming smart metering market in the near future.
INTERNATIONAL
BUSINESS
International Business offers single point access to all its customers
worldwide supplying Product and Solutions that meet various International
standards like IEC, ANSI, DIN, SANS.
Consistently meeting International quality standards, the Company is today
exporting its Products and Solutions to more than 40 countries including
Americas, Europe, Middle East, Africa, South-East Asia and the Indian
sub-continent, to an impressive International clientele that ranges from power
utilities, oil and gas sector, mining, EPC contractors and Industries.
2012-13 was a stellar year for International Business and this SBU
registered year on year growth of more than 200 %. The Company also firmly
established its presence in Latin America by bagging an order for supply of 16
nos. large rating Power Transformers.
The Company has aggressive plans for increasing the business of EPC
Projects (Substations and Transmissions Lines) and supply of Tower Steel
internationally.
Going forward the company is confident of substantially increasing the
percentage of International Business in overall business. This growth will be
through healthy mix of customers across the Globe and across product segments
without any dependence on specific markets.
COAL
MINE-INDONESIA
Production level of coal mines in Indonesia was over 1 million tons in
last calendar year 2012. In current year production level of coal would be
around 2 million per annum. The Current coal prices are low, but in the long
run their investment in the coal mines would give a handsome return.
RENEWABLE ENERGY
The Company had commissioned its 5 MW Photovoltaic Solar Power Plant at
Village Fatepur in Surendranagar district of Gujarat state in March 2012. The
plant is doing well and generating sufficient green energy, so as to avoid
7,500 MT of Carbon emissions per annum.
Power Generation from 10.5 MW Wind Mills was reasonable in the last
financial year and it is expected to remain unchanged in coming years.
IPTC PROJECT
In this fast changing economic world, the company wishes to have some
portion of its income through fixed sources i.e. Annuity Income, which will
provide stable cash flow and profitability to the company for the long run i.e.
for around 35 Years.
With this objective the Company participated in the opportunities opened
in the Transmission Sector by the Central/State Government (IPTC) under
Ministry of Power Model, to execute transmission line projects on BOOM (build,
own, operate and maintain) basis.
The company had bid for some such projects on above said model in the
state of Rajasthan. The Company had already received LoI for one of the project
long back & very recently it received LoI’s for another two projects which
are for setting up 220 kV or 400 kV transmission line and sub-stations which
are to be maintained for 35 years on BOOM basis.
The Company would invest in these projects, build and operate them for
35 years, in return, the company would earn a fixed income in the form of Annualized
Transmission from the users of transmission line which would be the
distribution companies of the state. They would be signing TSA’s with the
distribution utilities for making us payment. Payment terms are secured.
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER
2013
(RS.
IN MILLIONS)
|
SR. NO. |
PARTICULARS |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
(a) Net Sales/ Income from Operations |
1797.000 |
1848.440 |
5027.022 |
|
|
(b) Other Operating Income |
-- |
-- |
-- |
|
|
Total
Income from operations(a+b) |
1797.000 |
1848.440 |
5027.022 |
|
2 |
Expenditure |
|
|
|
|
a |
Cost of material consumed |
1131.400 |
1631.855 |
3928.500 |
|
b |
Changes in inventories of finished goods and work in
progress |
153.090 |
(280.643) |
(378.868) |
|
c |
Employee benefit expense |
118.247 |
116.420 |
372.916 |
|
d |
Depreciation |
49.713 |
50.863 |
152.357 |
|
e |
Other Expenditure |
180.338 |
196.576 |
592.030 |
|
|
Total |
1632.788 |
1715.071 |
4603.935 |
|
3 |
Profit from Operations before Other Income, Interest
and Exceptional Items (1-2) |
164.212 |
133.369 |
423.087 |
|
4 |
Other Income |
0.556 |
47.756 |
55.913 |
|
5 |
Profit before Interest and Exceptional Items (3+4) |
164.768 |
181.125 |
479.000 |
|
6 |
Interest (Net) |
148.492 |
121.209 |
392.040 |
|
7 |
Profit after Interest but before Exceptional Items
(5-6) |
16.276 |
59.916 |
86.960 |
|
8 |
Exceptional Items |
-- |
-- |
-- |
|
9 |
Profit(+)/Loss(-) from Ordinary activities before
Tax (7+8) |
16.276 |
59.916 |
86.960 |
|
10 |
Tax Expenses |
6.399 |
19.917 |
29.940 |
|
11 |
Net Profit(+)/Loss(-) from Ordinary activities after
tax (9-10) |
9.877 |
39.999 |
57.020 |
|
12 |
Extraordinary Items |
-- |
-- |
-- |
|
13 |
Net Profit
(+)/Loss (-) for the period (11+12) |
9.877 |
39.999 |
57.020 |
|
14 |
Paid-up Equity Share Capital |
130.274 |
130.274 |
130.274 |
|
|
Face value of Rs. 2 each |
|
|
|
|
15 |
Reserves (excluding Revaluation Reserves) |
|
|
|
|
16 |
Earnings Per Share (EPS) |
|
|
|
|
a |
1. Basic EPS before
extraordinary items (not annualized) (Rs./share) |
0.15 |
0.61 |
0.88 |
|
|
2. Diluted EPS before extraordinary
items (not annualized) (Rs./share) |
0.15 |
0.61 |
0.88 |
|
b |
1. Basic EPS after
extraordinary items (not annualized) (Rs./share) |
0.15 |
0.61 |
0.88 |
|
|
2. Diluted EPS after extraordinary items (not
annualized) (Rs./share) |
0.15 |
0.61 |
0.88 |
|
|
|
|
|
|
|
SELECT INFORMATION FOR THE QUARTER AND
NINE MONTHS ENDED 31ST DECEMBER 2013 |
||||
|
20 |
1. Public shareholding |
|
|
|
|
|
Number of
Shares |
36854887 |
36854887 |
36854887 |
|
|
Percentage of Shareholding |
56.58% |
56.58% |
56.58% |
|
21 |
2. Promoters
and promoter group shareholding |
|
|
|
|
a) |
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
21299340 |
21299340 |
21299340 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of
promoter and promoter group) |
75.31% |
75.31% |
75.31% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
32.70% |
32.70% |
32.70% |
|
|
|
|
|
|
|
b) |
Non - encumbered |
|
|
|
|
|
- Number of
Shares |
6982633 |
6982633 |
6982633 |
|
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
24.69% |
24.69% |
24.69% |
|
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
10.72% |
10.72% |
10.72% |
|
|
Particulars |
Quarter
Ended 31.12.2013 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
29 |
|
|
Disposed of during the quarter |
29 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
NOTE:
1)
The above financial results were reviewed by the
Audit Committee and taken on record by Board of Directors at their meeting held
on 29.01.2014.
2)
The Statutory Auditors of the company have conducted
a Limited Review of the above Financial Results.
3)
The Company has only one reportable Segment i.e.
Transmission and Distribution Segment within Power Sector.
4)
Previous quarter/period figures have been
regrouped, re-arranged and re-classified wherever necessary to conform to
current quarter’s classification.
5)
Exceptional items in previous year includes
reversal of depreciation on windmill assets and write off of certain inventory
and advance due to technology obsolescence.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
a) Bank Guarantees outstanding as at the year-end (gross) –(Secured) |
7764.134 |
6705.878 |
|
b) Letters of Credit outstanding as at the year-end (Secured) |
1140.938 |
881.885 |
|
c) Corporate Guarantee for Subsidiary Company |
706.810 |
0.000 |
|
d) Disputed amount of Sales Tax |
27.203 |
23.054 |
|
e) Claim made by workmen for re-instatement. Matter Subjudice |
Amount not ascertainable |
Amount not ascertainable |
|
f) Disputed amount of Income Tax |
27.224 |
2.779 |
|
g) Disputed amount of Excise duty and Service tax |
350.920 |
286.986 |
|
h) Claims against Company not acknowledged as debt |
14.133 |
15.118 |
|
|
|
|
|
Total |
10031.362 |
7915.700 |
FIXED ASSETS:
Tangible Assets
·
Freehold Land
·
Building
·
Plant and Machinery
·
Office Equipment and Air conditioners
·
Furniture and Fixtures
·
Air Craft
·
Wind Energy Generators
·
Vehicles
·
Leasehold Improvements
Intangible Assets
·
Goodwill
·
Technical Know-how and Licenses
·
Software
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 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] 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. 60.37 |
|
|
1 |
Rs. 102.48 |
|
Euro |
1 |
Rs. 81.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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.