MIRA INFORM REPORT
|
Report Date : |
23.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
VA TECH WABAG LIMITED |
|
|
|
|
Registered
Office : |
11, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
17.02.1995 |
|
|
|
|
Com. Reg. No.: |
18-30231 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.46.783 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L45205TN1995PLC030231 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEV02389C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Subject provided a comprehensive range of services which includes
Drinking Eater, Industrial Water, Waste Water, Sea and Brackish Water
desalination etc, for the public and private sectors. |
|
|
|
|
No. of Employees
: |
1,500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 21500000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established company providing turkey solutions for
water and waste treatment to municipal and industrial segments having fine
track record. Management has seen an increase in its sales volume as well as net
profitability during 2013. The company possesses a strong financial profile characterized by a
highly conservative capital structure.
However, the ratings also take into consideration the large
receivables position reported during the year under review and the favourable
long term demand prospects for waste water treatment project. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. It view of strong technical capabilities arising out of experienced promoters
and management, the subject can be considered good for normal business
dealings at usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a second
straight year of sub-5 % growth – the worst slowdown in more than a quarter of
a century. The data was below an official estimate of 4.9 % annual growth and
compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long Term fund based facilities: A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk |
|
Date |
September, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term non fund based facilities: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
September, 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. Ramesh |
|
Designation : |
Accountant |
|
Contact No.: |
91-44-39232323 |
|
Date : |
16.06.2014 |
LOCATIONS
|
Registered/
Corporate Office : |
|
|
Tel. No.: |
91-44-42232323 |
|
Fax No.: |
91-44-42232324 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Regional Office 1 : |
|
|
Tel. No.: |
91-20-66424900 / 66424901 |
|
Fax No.: |
91-20-66424949 |
|
|
|
|
Regional Office 2 : |
Nagras Road, New DP Road, 1st Floor, Harsh Orchid Aundh
Pune – 411007, Maharashtra, India |
|
|
|
|
Regional Office 3 : |
Ec-33, Sector -1, 1st Floor, Salt Lake City, Kolkata-700064,
Maharashtra, India |
|
Tel. No.: |
91-33-23376779/ 23376778 |
|
Fax No.: |
91-33-23376779 |
|
|
|
|
Regional Office 4 : |
S-14, Second Floor, |
|
Tel. No.: |
91-11-41006634 / 41006635 / 41006636 |
|
Fax No.: |
91-11-41006637 |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Bhagwan Dass Narang |
|
Designation : |
Chairman |
|
Address : |
Flat No. 29, DDA Apartments, Pocket-F, SFS Scheme, Sheikh Sarai,
Phase-I, New Delhi-110017, |
|
Date of Birth/Age : |
12.04.1945 |
|
Date of Appointment : |
07.09.2009 |
|
DIN No. : |
00038052 |
|
|
|
|
Name : |
Mr. Rajiv Mittal |
|
Designation : |
Managing Director |
|
Address : |
No. 13A , Jeevarathinam Nagar, |
|
Date of Birth/Age : |
08.04.1960 |
|
Date of Appointment : |
27.09.2000 |
|
DIN No. : |
01299110 |
|
|
|
|
Name : |
Mr. Jaithirth Rao |
|
Designation : |
Director |
|
Address : |
# 61, Umang, Kashibai Navrang Marg, Gamdevi, Mumbai-400007, |
|
Date of Birth/Age : |
12.07.1953 |
|
Date of Appointment : |
31.01.2007 |
|
DIN No. : |
00025289 |
|
|
|
|
Name : |
Mr. Sumit Chandwani |
|
Designation : |
Director |
|
Address : |
2001, Era3, Marathon Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013,
|
|
Date of Birth/Age : |
11.11.1967 |
|
Date of Appointment : |
13.09.2005 |
|
DIN No. : |
00179100 |
|
|
|
|
Name : |
Mr. Revathi Kasturi |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S. Varadarajan |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Rajiv Balakrishnan |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Ramesh |
|
Designation : |
Accountant |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2013)
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
3201999 |
12.05 |
|
|
3201999 |
12.05 |
|
|
|
|
|
|
|
|
|
|
4849703 |
18.26 |
|
|
4849703 |
18.26 |
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
8051702 |
30.31 |
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5688653 |
21.41 |
|
|
53734 |
0.20 |
|
|
7774695 |
29.27 |
|
|
13517082 |
50.88 |
|
|
|
|
|
|
|
|
|
|
1372348 |
5.17 |
|
|
|
|
|
|
|
|
|
|
2039422 |
7.68 |
|
|
|
|
|
|
1584165 |
5.96 |
|
|
68030 |
0.26 |
|
|
101987 |
0.38 |
|
|
2182 |
0.01 |
|
|
1234492 |
4.65 |
|
|
75265 |
0.28 |
|
|
92734 |
0.35 |
|
|
9475 |
0.04 |
|
|
4995935 |
18.81 |
|
|
|
|
|
Total Public shareholding (B) |
18513017 |
69.69 |
|
|
|
|
|
Total (A)+(B) |
26564719 |
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) |
26564719 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject provided a comprehensive range of services which includes
Drinking Eater, Industrial Water, Waste Water, Sea and Brackish Water desalination
etc, for the public and private sectors. |
||||||
|
|
|
||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
1,500 (Approximately) |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
·
ICICI Bank Limited Landmarkrace Cource Circle, Alkapuri, Baroda – 390 015, Gujarat,
India ·
State Bank of India Industrial Finance Branch, 155, Anna Salai, Chennai – 600002,
Tamilnadu, India ·
The HongKong and Shanghai Banking Corporation
Limited 76, Cathedral Road, Chennai-600086, Tamilnadu, India ·
YES Bank Limited ·
HDFC Bank Limited ·
IDBI Bank Limited ·
Punjab National
Bank ·
Societe Generale
Bank ·
ING VYSYA Bank ·
Standard Chartered
Bank |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Walker,
Chandiok and company Chartered Accountants |
|
|
|
|
Subsidiaries : |
·
VA Tech Wabag ( ·
VA Tech Wabag ·
WABAG Wassertechnik AG, ·
Va Tech Wabag Deutschland ·
VA Tech Wabag Brno. Spol. S.R.O, ·
Engenharia Hidraulica De Macau Limitada, Macao
(upto 31.12.2012) ·
Wabag Water Services (Macao) Limited, Macao ·
Wabag Water Services s.e.l., ·
Va Tech Wabag ·
Va Tech Wabag (Hong Kong) Limited, Hongkong ·
Beijing Va Tech Wabag Water Treatment Technology
Company Limited, China ·
VA Tech Wabag Muscat LLC, Oman ·
VA Tech Wabag (Philippines) Inc., Philippines ·
VA Tech Wabag Algeria SARL, Algeria ·
VA Tech Wabag Tecknolojisi Ve Ticaret Limited, Turkey ·
VA Tech Wabag Egypt Limited, Egypt ·
VA Tech Wabag (Spain) S.L.U, Spain (Incorporated on 8 January 2013) ·
Ujams Wastewater Treatment Company (Pty) Limited, Namibia ·
VA Tech Wabag (Gulf) Contracting LLC, Dubai (Upto 31 March 2012) |
|
|
|
|
Associates : |
· Windhoek Goreangab Operating Company Limited, Namibia |
|
|
|
|
Joint Ventures : |
· International Water Treatment LLC, Oman (Incorporated on 23 February 2013) |
CAPITAL STRUCTURE
(AS ON 31.03.2013)
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50875000 |
Equity Shares |
Rs.2/- each |
Rs.101.800 Millions |
|
4825000 |
Preference Shares |
Rs.10/- each |
Rs.48.200 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.150.000
Millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
26545772 |
Equity Shares |
Rs.2/- each |
Rs.53.100
Millions |
|
|
|
|
|
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 |
53.100 |
53.000 |
52.800 |
|
(b) Reserves & Surplus |
5,312.600 |
4,609.800 |
4,040.200 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.400 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1)+(2) |
5,366.100 |
4,662.800 |
4,093.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
798.000 |
475.600 |
283.800 |
|
(d) long-term
provisions |
55.200 |
70.600 |
65.500 |
|
Total Non-current
Liabilities (3) |
853.200 |
546.200 |
349.300 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
545.100 |
1,031.800 |
0.000 |
|
(b) Trade
payables |
5,335.600 |
4,961.600 |
3,344.000 |
|
(c) Other
current liabilities |
728.600 |
1,080.100 |
648.300 |
|
(d) Short-term
provisions |
701.500 |
441.700 |
422.200 |
|
Total Current Liabilities
(4) |
7,310.800 |
7,515.200 |
4,414.500 |
|
|
|
|
|
|
TOTAL |
13,530.100 |
12,724.200 |
8,856.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
274.300 |
269.300 |
244.000 |
|
(ii)
Intangible Assets |
117.600 |
121.500 |
135.900 |
|
(iii)
Capital work-in-progress |
320.600 |
176.300 |
74.400 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
153.600 |
146.500 |
81.000 |
|
(c) Deferred tax assets (net) |
87.000 |
85.800 |
203.200 |
|
(d) Long-term Loan and Advances |
32.000 |
32.000 |
36.900 |
|
(e) Other
Non-current assets |
1,327.100 |
800.700 |
369.900 |
|
Total Non-Current
Assets |
2,312.200 |
1,632.100 |
1,145.300 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
300.000 |
|
(b)
Inventories |
158.700 |
349.200 |
515.900 |
|
(c) Trade
receivables |
7,823.300 |
7,924.000 |
4,528.000 |
|
(d) Cash and
cash equivalents |
1,713.700 |
1,837.100 |
1,531.000 |
|
(e)
Short-term loans and advances |
909.300 |
754.100 |
706.800 |
|
(f) Other
current assets |
612.900 |
227.700 |
129.800 |
|
Total
Current Assets |
11,217.900 |
11,092.100 |
7,711.500 |
|
|
|
|
|
|
TOTAL |
13,530.100 |
12,724.200 |
8,856.800 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
10,571.700 |
10,034.700 |
7,334.600 |
|
|
|
Other Income |
125.600 |
133.000 |
3.600 |
|
|
|
TOTAL (A) |
10,697.300 |
10,167.700 |
7,338.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of sales and
Services |
7,981.800 |
7,743.600 |
6,101.500 |
|
|
|
Decrease in inventories |
190.500 |
166.700 |
-332.500 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
0.000 |
0.000 |
0.000 |
|
|
|
Employees benefits
expense |
688.700 |
639.800 |
464.800 |
|
|
|
Other expenses |
322.300 |
330.400 |
207.700 |
|
|
|
TOTAL (B) |
9,183.300 |
8,880.500 |
6,441.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1,514.000 |
1,287.200 |
896.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
115.200 |
129.700 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1,398.800 |
1,157.500 |
896.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
66.100 |
57.300 |
58.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1,332.700 |
1,100.200 |
837.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
431.600 |
349.000 |
285.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
901.100 |
751.200 |
552.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1,918.700 |
1,427.000 |
1,052.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General
Reserve |
90.100 |
75.100 |
55.300 |
|
|
|
Proposed Dividend (Including
Dividend Tax) |
217.400 |
184.400 |
123.200 |
|
|
BALANCE CARRIED
TO THE B/S |
2,512.300 |
1,918.700 |
1,427.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1850.400 |
2172.400 |
617.300 |
|
|
TOTAL EARNINGS |
1850.400 |
2172.400 |
617.300 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2358.500 |
1105.300 |
961.300 |
|
|
|
Stores & Spares |
0.000 |
0.000 |
0.000 |
|
|
|
Capital Goods |
0.000 |
11.400 |
0.000 |
|
|
TOTAL IMPORTS |
2358.500 |
1116.700 |
961.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
34.00 |
28.41 |
22.31 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
8.42
|
7.39 |
7.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.61
|
10.96 |
11.42 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.28
|
8.93 |
9.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.24 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.10
|
0.22 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.53
|
1.48 |
1.75 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
52.800 |
53.000 |
53.100 |
|
Reserves & Surplus |
4,040.200 |
4,609.800 |
5,312.600 |
|
Net worth |
4,093.000 |
4,662.800 |
5,365.700 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
1,031.800 |
545.100 |
|
Total borrowings |
0.000 |
1,031.800 |
545.100 |
|
Debt/Equity ratio |
0.000 |
0.221 |
0.102 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operation |
7,334.600 |
10,034.700 |
10,571.700 |
|
|
|
36.813 |
5.351 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR) |
(INR) |
(INR) |
|
Revenue from Operation |
7,334.600 |
10,034.700 |
10,571.700 |
|
Profit |
552.600 |
751.200 |
901.100 |
|
|
7.53% |
7.49% |
8.52% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if
available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
NOTE:
The registered office of the company has been shifted from 11, Murrays
Gate Road, Alwarpet, Chennai – 600018, Tamilnadu, India, to the present
address.
BUSINESS PERFORMANCE
In the financial year
2012-13, the Company continued to report profitable growth. The company has a
healthy order book of Rs.42840.000 Millions as on 31 March 2013, supported by
highest ever order intake in a financial year of Rs.21550.000 Millions during
the year. The standalone turnover stood at Rs.10570.000 Millions compared to
previous year’s Rs.10030000 Millions, recording a marginal growth of 5%. The
consolidated turnover stood at Rs.16190.000 Millions compared to previous
year’s Rs.14440.000 Millions, recording a growth of 12% over last year.
The EBITDA for the year on
a standalone basis stood at Rs.1390.000 Millions registering a growth of 20% as
against previous year’s Rs.1150.000 Millions. The consolidated EBITDA increased
from Rs.1300.000 Millions of previous year to Rs.1550.000 Millions for the
current year. The Company recorded healthy growth in both consolidated and
standalone PAT% as compared to last year. The consolidated PAT recorded a 22%
growth over the previous year while the standalone PAT recorded a 20% increase
over the previous year.
EPS growth recorded a 22%
increase for the year ended 31 March, 2013. The company will continue to focus
on both organic and inorganic growth models through strategic acquisitions that
will pave way for its entry into various new geographies and access to latest
technologies
MANAGEMENT DISCUSSION AND ANALYSIS
The global water market
The world’s supply of
available freshwater is finite and never before in the recorded history of
mankind has this finiteness become more evident. Consider these realities:
·
Some 783m people the world over lack access to
clean drinking water with 2.6bn having no access to proper sanitation. The one
reason why these numbers are causing alarm is because of a worsening supply
side (insufficient freshwater, uneven distribution, poor quality, non-revenue
water, climate change) and demand side (rapidly growing use by agriculture,
industry, and municipal/residential sectors).
·
There has been an unprecedented growth in global population
in the last 40 years – to nearly seven billion today. There is manifold surge
in freshwater demand across agriculture, energy, industry and domestic
applications. Scientists have estimated that they withdraw about 50% of
globally accessible and renewable water on an annual basis and this is set to
increase as the world’s population touches 9.4 billion by 2050.
·
Demand for water is expected to overshoot supply by
40% in the next 20 years with half the world’s population living under ‘water
stress’ conditions by 2030. What the oil shock causedin the early Seventies is
now likely to happen in the area of water, translating into probable social and
political unrest.
·
Declining freshwater sources: Freshwater accounts
for 2.5-3% of the total water on the planet, most of which is locked in two polar ice
caps. Ground water (critical source of potable water for the world’s major
cities) makes up about only 30% of freshwater resources whereas lakes, rivers,
wetlands and different soil types account for 1.2% of freshwater. Freshwater
ecosystems are estimated to have declined 37% since the 1970s with certain
segments with tropical freshwater having declined 70%. As a result, an
estimated 2.7 bn people are now living in water catchment areas (e.g., river
basins) with water scarcity for at least a month in a year.
·
Skewed distribution: In theory, there is enough
water to satisfy all human needs on a sustainable basis but in reality, nine
countries (Brazil, Russia, United States, Canada, China, Colombia, Indonesia
and Peru) possess close to 60% of the world’s freshwater resources while nearly
46 countries suffer conditions that can be described as ‘water stress’ to
‘water scarcity’.
·
Varying quality: There is a rising instance of
urban fresh water pollution arising from inappropriate land use and poor water treatment.
Chemical fertiliser run-offs are creating excessive nutrient concentrations in
sea and oceans (+ 10% to 20% in the next 30 years). Irrigation is reducing the
capacity of rivers to transport sediments.
·
Others: There are other concerns like changes in
the hydrological cycle, and rainfall patterns, rising sea levels and saltwater
mixing with freshwater.
The first signs of this
grimness translating into market reality are evident. The global slowdown
notwithstanding, the global water market represents US$500bn sector growing at
a CAGR of 6-7%, well above the global growth rates across various sectors. This
higher-than-average growth is being catalysed by water scarcity, population
growth, urbanisation, industrial growth, infrastructure development, pricing,
rising private sector investment, food and energy security, stakeholder
pressure and tightening regulation.
By 2020, the water industry
could be worth US$1tn, marked by robust growth coming out of the water
treatment, water management, water infrastructure and supply segments.
HIGHLIGHTS, 2012-13
·
Implemented a project management module making it
possible for the engineer to check project development without visiting the
sites
·
Completed the design for a desalination project for
the Tata Group
·
Completed the designing for an ultra-pure water
plant in solar cell manufacturing facility
·
Standardised a de-mineralisation plant to reduce
the bill of quantity and shrink the project life cycle
COMPANY OVERVIEW
The Company its
subsidiaries, associates and joint ventures (collectively referred to as ‘the
Group’) is one of the world’s leading companies in the water treatment field.
The group’s principal activities include design, supply, installation, and
operational management of drinking water and waste water treatment plants.
Subject was part of the
Austrian group, VA Tech and formed the water technology and engineering
division of the Company.
In July 2005, VA TECH WABAG
worldwide was acquired by Siemens. Soon after in September 2005, the Company
had a Management buyout with 20% of the shares with the management team and 60%
of the shares with ICICI Ventures and the rest with Siemens.
In November 2007, the
Company acquired 100% stake in its erstwhile parent VA TECH WABAG GmbH, Vienna
through its wholly owned subsidiary VA TECH WABAG (Singapore) Pte Limited.
Pursuant to an Initial
Public offering of its shares, the shares of the Company were listed on 13
October, 2010 in the Bombay Stock Exchange (BSE) and National Stock Exchange
(NSE).
CONTINGENT LIABILITIES
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In
Millions) |
||
|
Income
tax impact on account of non-deductibility U/s 80-IA (Refer ‘a’ below) |
242.200 |
242.200 |
241.900 |
|
-
Out of the above, Income tax demand contested in appeal |
93.900 |
93.900 |
57.800 |
|
Interest
U/s 234B on the tax liability referred above (Refer ‘b’ below) |
196.800 |
167.200 |
137.600 |
|
Sales
tax matters under dispute (Refer ‘c’ below) |
39.500 |
32.500 |
13.000 |
a) The Company had been claiming
deduction under section 80-IA of the Income Tax Act, 1961 from the financial
year ended 31 March 2002 as a developer of infrastructure projects in India.
The Finance Act 2009 amended the provisions of Section 80-IA retrospectively
with effect from 01 April 2000 to make it inapplicable for persons having a
mere works contract with the government or statutory authority. The Company
believes that this amendment is in line with the objective of the government of
incentivising only a developer of infrastructure facility and not a mere works
contractor. The Company strongly opines that, being a developer of
infrastructure turnkey development contracts starting from the
conceptualisation to execution assuming significant financial commitment and
risks, the Company would be treated as a developer and the amendment would not
apply to it. Based on a legal opinion from a Senior Counsel, the Company has
filed a writ petition in the High Court of Madras challenging the
Constitutional validity of the retrospective amendment. Also, the Company has
subsequently received favourable Appellate Orders from CIT (Appeals) from
financial years 2001-02 to 2006-07 allowing the benefit under section 80-IA of
the Income Tax Act, while, the Income Tax department has raised a demand for
Rs.939 lakhs denying benefit under section 80-IA for the financial year
2008-09. Considering these facts and as a matter of prudence, the Company has
presented the total tax benefit so far claimed u/s 80-IA as contingent
liability in the financial statement for 31 March 2013. However, on a
conservative basis the liability on account of possible denial of deduction
prospectively from 01 April 2009 has been fully provided as current tax in the
respective years.
b) The Company, also based
on an opinion taken from a professional firm believes that the interest under
section 234B on account of 80-IA disallowance discussed in paragraph ‘a’ above
amounting to Rs.196.800 Millions as at 31 March 2013 would not be payable as
the Jurisdictional High Court rulings and various assessment orders commencing
from financial year 2001-02 are in favour of the Company on this aspect and on
this basis, the amount of interest has been disclosed as contingent liability.
c) The additional liability
assessed by sales tax authorities for various financial years from 2002-03 to
2008-09 amounts to Rs.39.500 Millions.
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10449852 |
29/08/2013 |
1,350,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE
BRANCH, 155, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA |
B85313211 |
|
2 |
10053844 |
25/06/2012 * |
11,925,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE
BRANCH, 155, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA |
B58406331 |
* Date of charge modification
FIXED ASSETS:
·
· Plant and Machinery
· Furniture and Fittings
· Electrical Equipments
· Office Equipments
· Computers
· Vehicles
NEWS:
VA TECH WABAG HITS NEW HIGH
THE STOCK SURGED 18% TO RS.1,450, RALLIED ALMOST 50%
POST MARCH QUARTER RESULTS.
VA Tech Wabag has
soared almost 18% to Rs.1,450, also its new high on the NSE, on back of heavy
volumes.
The stock opened at Rs.1,250 and touched a low
of Rs.1,246 so far. At 1135 hours, a combined 221,715 shares already changed
hands against an average sub 100,000 shares that were traded daily in past two
weeks on NSE and BSE.
Meanwhile, the stock has rallied almost 50% from
Rs.976 on May 23 after reporting a strong performance for the quarter ended
March 31, 2014. The benchmark CNX Nifty has gained 3.7% during the period.
The company said it is well placed to achieve
higher milestones going forward with total order book of Rs.5,354 crore at the
end of March 2014.
In the current year has also been successful in
securing international orders from newer geographies like Tanzania and Nepal
where it was not present earlier, exhibiting the strength of Wabag brand, it
added.
VA Tech Wabag is a leading multinational company
specialized in water and waste water
management.
VA TECH WABAG TO GAIN FROM GOVERNMENT'S URBAN
INFRASTRUCTURE PUSH
30 January, 2014
VA Tech Wabag, which
focuses on technology, design and engineering services related to water
treatment, is looking to gain from the government's urban infrastructure push.
With urbanisation
on the rise and an improvement in the standard of living, demand for quality
water services is increasing, said Rajiv Mittal, managing director, VA Tech
Wabag, which is based in Chennai in India. "We are poised well to
participate in this growth story."
The company's
business can be divided into two major segments - engineering procurement and
construction (EPC), which accounts for 69 per cent of its revenue, and
operating and maintenance (O&M), which accounts for the rest. Around 73 per
cent of its business comes from projects awarded by municipal bodies, the rest
from companies. The margin in municipal work is 13-14 per cent and 8-10 per
cent in the second category, said S Varadarajan, chief financial officer.
The company
follows an asset light business model. The civil work related to a water
treatment project, which entails fixed costs, is outsourced while the design
and engineering is done by the company. It has an order book of Rs.66050.000
Millions, of which 57 per cent is EPC business. Decentralisation of operations
has helped the company reduce the cost of operations. Established in Austria in
1924, a high-cost economy, the company has diversified geographically to India,
Turkey, the Philippines and Algeria.
In the past five
fiscal years, 'other expenses' have plunged -- to Rs322.000 Millions in FY13
from Rs.2930.000 Millions in FY09. "For us, costs of operations in
emerging economies make sense," Mittal said. "Barring raw material,
which changes as and when geography changes, we have been able to reduce our
costs of operations by sheer focus on emerging economies."
This has enhanced
the company's financial performance in the past five years. Net sales have
grown at a compounded annual growth rate of 10 per cent to Rs.16030.000
Millions in FY13, while net profit has grown at a CAGR of 26.5 per cent to
Rs.890.000 Millions in the same period.
Having a
debt-equity ratio of less than 1, the company is well poised to participate in
the Indian desalination water market, which according to research firm Tech
Archival, will grow at a CAGR of 30 per cent from 2013 to 2018 and reach a capacity
of 5.35 million cubic metres per day.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.28 |
|
|
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.82.12 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
66 |
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.