MIRA INFORM REPORT
|
Report Date : |
30.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
ABB INDIA LIMITED (w.e.f. 14.06.2013) |
|
|
|
|
Formerly Known
As : |
ABB LIMITED |
|
|
|
|
Registered
Office : |
2nd Floor, East Wing Khanija Bhawan, 49, Race
Course Road, Bangalore – 560001, Karnataka |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.12.2013 |
|
|
|
|
Date of
Incorporation : |
24.12.1949 |
|
|
|
|
Com. Reg. No.: |
08-032923 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.423.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L32202KA1949PLC032923 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA19181B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA3834B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Instrument and Electric Motor. |
|
|
|
|
No. of Employees
: |
6371 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 100000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject is a well-established company having fine track record. The rating reflects company’s established market position in the power
and automation technology segment marked by healthy financial risk, adequate
liquidity position and decent capital structure of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company 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 |
CRISIL |
|
Rating |
Long-term rating AAA |
|
Rating Explanation |
Highest degree of safety. It carry lowest
credit risk. |
|
Date |
10.04.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short-term rating A1+ |
|
Rating Explanation |
Very strong degree of safety. It carry
lowest credit risk. |
|
Date |
10.04.2013 |
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 PARTED BY
|
Name : |
Mr. Kaushal Patil |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-22-66159800 |
LOCATIONS
|
Registered Office : |
2nd Floor, East Wing Khanija Bhawan, 49, Race Course Road, Bangalore – 560001, Karnataka, India |
|
Tel. No.: |
91-80-22949150/ 54 |
|
Fax No.: |
91-80-22949148 |
|
E-Mail : |
|
|
Website : |
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|
Location: |
Owned |
|
|
|
|
Marketing Office: |
ABB House, Dr. S B Path, Old Goa Street, Ballard Estate, Mumbai – 400025, Maharashtra, India |
|
Tel No.: |
91-22-66159800 |
|
|
|
|
Factory 1 : |
32, Industrial Area, NIT, Faridabad-121001, Haryana, India |
|
Tel No.: |
91-129-2448100 |
|
|
|
|
Factory 2 : |
Menaja Village, Vadodara - 390013, Gujarat, India |
|
|
|
|
Factory 3 : |
485/6,14th Cross, 4th Phase, Peenya Industrial
Area, Bangalore – 560058, Karnataka, India |
|
Tel. No.: |
91-80 2294 9449 |
|
|
|
|
Factory 4 : |
Also Located At:
|
DIRECTORS
As on 31.12.2013
|
Name : |
Mr. Gary Steel |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Bazmi R. Husain |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. N. S. Raghavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nasser Munjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Darius E Udwadia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun Kanti Dasgupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Peter Leupp |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Francis
Duggan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Renu Sud Karnad |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. B. Gururaj |
|
Designation : |
Company Secretary
|
|
|
|
|
Audit Committee |
|
|
|
|
|
Shareholders’ /
Investors’ Grievance Committee |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.04.2014
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
158931281 |
75.00 |
|
|
158931281 |
75.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
158931281 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2765401 |
1.30 |
|
|
23087204 |
10.89 |
|
|
9333852 |
4.40 |
|
|
35186457 |
16.60 |
|
|
|
|
|
|
1074880 |
0.51 |
|
|
|
|
|
|
16058922 |
7.58 |
|
|
255360 |
0.12 |
|
|
401475 |
0.19 |
|
|
3500 |
0.00 |
|
|
298765 |
0.14 |
|
|
10656 |
0.01 |
|
|
88554 |
0.04 |
|
|
17790637 |
8.40 |
|
Total Public shareholding (B) |
52977094 |
25.00 |
|
Total (A)+(B) |
211908375 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
211908375 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Instrument and Electric Motor. |
GENERAL INFORMATION
|
No. of Employees : |
6371 (Approximately) |
|
|
|
|
Bankers : |
|
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountant |
|
|
|
|
Cost Auditors: |
|
|
Name : |
Ashwin Solanki and Associates Cost Accountants |
|
|
|
|
Ultimate Holding
Company |
ABB Limited, Zurich, Switzerland |
|
|
|
|
Holding Company : |
ABB Asea Brown Boveri Limited, Zurich, Switzerland |
|
|
|
|
Subsidiary : |
Baldor Electric India Private Limited., Pune, India (from December 1, 2011 till March 31, 2012.) |
|
|
|
|
Fellow
subsidiaries: |
|
CAPITAL STRUCTURE
As on 31.12.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
212500000 |
Equity Shares |
Rs.2/- each |
Rs.425.000 Millions |
|
750000 |
11% Redeemable Cumulative Preferences Shares |
Rs.100/- each |
Rs.75.000 Millions |
|
|
Total |
|
Rs.500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
211908375 |
Equity Shares |
Rs.2/- each |
Rs.423.800
Millions |
|
|
|
|
|
a) Terms/rights
attached to equity shares
The Company has only one class of equity shares having a par value of Rs 2/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pay dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended December 31, 2013, the amount of per share dividend recommended and provided for distribution to equity shareholders is Rs 3.00 (December 31, 2012 : Rs 3.00)
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
b) Shares held by
holding / ultimate holding company and / or their subsidiaries / associates
|
Name of
Shareholder |
Number
of Shares |
Rs. In Millions |
|
ABB Asea Brown Boveri Limited - the holding company |
146390952 |
292.800 |
|
ABB Norden Holding AB - a fellow subsidiary |
12540330 |
25.100 |
c) Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
% of Holding |
|
ABB Asea Brown Boveri Limited - the holding company |
146390952 |
69.08% |
|
ABB Norden Holding AB - a fellow subsidiary |
12540330 |
5.92% |
|
Life Insurance Corporation of India |
20196092 |
9.53% |
As per of the Company and other declarations received from shareholders, the above shareholding represents both legal and beneficial ownerships of shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
423.800 |
423.800 |
423.800 |
|
(b) Reserves & Surplus |
26351.800 |
25556.700 |
24921.400 |
|
(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) |
26775.600 |
25980.500 |
25345.200 |
|
|
|
|
|
|
(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 |
41.700 |
38.900 |
33.000 |
|
(d) long-term
provisions |
57.100 |
57.100 |
57.100 |
|
Total Non-current
Liabilities (3) |
98.800 |
96.000 |
90.100 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
6201.100 |
3276.800 |
0.000 |
|
(b) Trade
payables |
20825.800 |
18993.700 |
19654.100 |
|
(c) Other
current liabilities |
13959.500 |
13945.600 |
15582.700 |
|
(d) Short-term
provisions |
2634.500 |
2407.400 |
2273.500 |
|
Total Current
Liabilities (4) |
43620.900 |
38623.500 |
37510.300 |
|
|
|
|
|
|
TOTAL |
70495.300 |
64700.000 |
62945.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i) Tangible
assets |
12680.200 |
10780.600 |
10302.400 |
|
(ii)
Intangible Assets |
1234.900 |
1292.800 |
1381.600 |
|
(iii)
Capital work-in-progress |
474.900 |
1170.100 |
744.300 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
164.700 |
523.900 |
506.200 |
|
(c) Deferred tax assets (net) |
279.300 |
148.000 |
224.000 |
|
(d) Long-term Loan and Advances |
3508.900 |
2301.800 |
1638.900 |
|
(e) Other
Non-current assets |
83.000 |
84.500 |
84.900 |
|
Total Non-Current
Assets |
18425.900 |
16301.700 |
14882.300 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.800 |
0.800 |
0.800 |
|
(b)
Inventories |
9888.500 |
9204.000 |
9255.500 |
|
(c) Trade
receivables |
32357.200 |
32643.800 |
30825.100 |
|
(d) Cash
and cash equivalents |
3165.800 |
766.700 |
2558.800 |
|
(e)
Short-term loans and advances |
2567.700 |
2283.000 |
1999.700 |
|
(f) Other
current assets |
4089.400 |
3500.000 |
3423.400 |
|
Total
Current Assets |
52069.400 |
48398.300 |
48063.300 |
|
|
|
|
|
|
TOTAL |
70495.300 |
64700.000 |
62945.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
77219.900 |
75649.900 |
74489.700 |
|
|
|
Other Income |
69.900 |
70.500 |
414.600 |
|
|
|
TOTAL (A) |
77289.800 |
75720.400 |
74904.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
46291.900 |
46856.800 |
47250.800 |
|
|
|
Purchases of Stock-in-Trade |
3140.700 |
2635.000 |
3201.600 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(129.800) |
(6.900) |
(845.300) |
|
|
|
Subcontracting charges |
4682.000 |
4793.400 |
4346.700 |
|
|
|
Employees benefits expense |
6770.600 |
6196.000 |
5868.200 |
|
|
|
Other expenses |
11765.300 |
11810.700 |
11302.600 |
|
|
|
TOTAL (B) |
72520.700 |
72285.000 |
71124.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4769.100 |
3435.400 |
3779.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1011.300 |
432.400 |
306.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3757.800 |
3003.000 |
3472.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1033.100 |
940.900 |
795.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2724.700 |
2062.100 |
2677.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
955.800 |
688.000 |
832.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1768.900 |
1374.100 |
1845.400 |
|
|
|
|
|
|
|
|
|
|
Profit of Baldor Electric India Private Limited (Baldor)
for the period April 1, 2012 to December 31, 2012 of the previous year on amalgamation |
24.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
850.400 |
855.100 |
546.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
640.000 |
800.000 |
|
|
|
Proposed Dividend |
635.700 |
635.700 |
635.700 |
|
|
|
Corporate Dividend Tax |
108.100 |
103.100 |
103.100 |
|
|
|
Corporate Dividend Tax (previous years) |
4.900 |
0.000 |
(1.600) |
|
|
BALANCE CARRIED
TO THE B/S |
894.800 |
850.400 |
855.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
9393.600 |
8706.700 |
8237.400 |
|
|
|
Goods supplied/ services rendered locally against foreign exchange
remittances |
1081.900 |
559.600 |
2034.200 |
|
|
|
Erection and other services |
838.400 |
717.600 |
532.200 |
|
|
|
Commission |
41.500 |
41.600 |
36.600 |
|
|
|
Services charges and others |
454.100 |
430.80 |
329.400 |
|
|
TOTAL EARNINGS |
11809.500 |
10456.300 |
11169.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1963.900 |
2006.000 |
1649.100 |
|
|
|
Stores & Spares |
12750.600 |
11433.200 |
12171.400 |
|
|
|
Finished Goods |
976.600 |
1578.500 |
1942.300 |
|
|
|
Capital Goods |
499.000 |
380.300 |
514.100 |
|
|
|
Project Item |
3586.700 |
4040.100 |
5824.100 |
|
|
TOTAL IMPORTS |
19776.800 |
19438.100 |
22101.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.46 |
6.48 |
8.71 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.03.2014 |
|
|
|
|
1st
Quarter |
|
Net Sales |
|
|
18277.100 |
|
Total Expenditure |
|
|
17019.900 |
|
PBIDT (Excl OI) |
|
|
1257.200 |
|
Other Income |
|
|
11.300 |
|
Operating Profit |
|
|
1268.500 |
|
Interest |
|
|
220.700 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
1047.800 |
|
Depreciation |
|
|
274.100 |
|
Profit Before Tax |
|
|
773.700 |
|
Tax |
|
|
256.900 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
516.800 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
516.800 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2013 |
31.12.2012 |
31.12.2011 |
|
PAT / Total Income |
(%) |
2.29 |
1.81 |
2.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.53 |
2.73 |
3.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.92 |
3.28 |
4.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.08 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.23 |
0.13 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.19 |
1.25 |
1.28 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
423.800 |
423.800 |
423.800 |
|
Reserves & Surplus |
24921.400 |
25556.700 |
26351.800 |
|
Net
worth |
25345.200 |
25980.500 |
26775.600 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
3276.800 |
6201.100 |
|
Total
borrowings |
0.000 |
3276.800 |
6201.100 |
|
Debt/Equity
ratio |
0.000 |
0.126 |
0.232 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
74489.700 |
75649.900 |
77219.900 |
|
|
|
1.558 |
2.075 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2011 |
31.12.2012 |
31.12.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
74489.700 |
75649.900 |
77219.900 |
|
Profit |
1845.400 |
1374.100 |
1768.900 |
|
|
2.48% |
1.82% |
2.29% |
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 |
No |
|
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 |
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 |
LITIGATIONS DETAILS
CASE PENDING
|
High Court of
Karnataka -Bangalore Bench |
COP 127/2013 |
|
Petitioner/Appnt.
Name |
BHARAT BIJLEE LIMITED |
Respondent/Defnt.
Name |
ABB LIMITED |
|
Petnr./Appnt.
Advocate |
MURALIDHARA C |
Respnt./Defnt.
Advocate |
KEERTHIKUMAR D NAIK |
|
Date Filed |
28/06/2013 |
District |
Bangalore City |
|
Stage |
PENDING FOR ADMISSON |
Last Posted For |
ADMISSION |
|
Last Action Taken |
ADJOURNED |
Last Date of Action |
20/06/2014 |
|
Next Hearing Date : |
26/06/2014 |
|
|
|
Latest Order |
|
||
|
Before Hon'ble
Judge/s |
A. S. Bopanna |
||
Details of the Daily Order
(Click on date of order to get full order)
|
Sl No |
Honble Judge |
Date of Order |
|
1 |
HONBLE SANJ |
06/09/2013 |
|
2 |
HONBLE SANJ |
20/09/2013 |
CORPORATE INFORMATION
Subject has served utility and industry customers for over six decades with the complete range of engineering, products, solutions and services in areas of Automation and Power technology. The Company has extensive installed base for manufacturing and a countrywide marketing and service presence. Besides catering to Indian domestic market, the Company is also playing an increasing role in the global market.
PERFORMANCE REVIEW
The Company secured orders valued Rs 671.700 Millions in 2013 as against Rs 696.600 Millions in the previous year. Base orders from wider spectrum of customers helped offset the paucity of large projects in the market. Exports grew annulling the effect of a contraction in domestic market opportunities. The company continued to tap sectors like Renewable energy, Data center, Railways, Grid stability, Mining that look increasingly promising now and for the future. The order backlog at the end of the year stood at Rs 770.900 Millions which continued to give more visibility to the future revenue streams. The revenues for the Company for the year 2013 stood at Rs 763.200 Millions as against Rs 756.500 Millions in the previous year, reflecting stability of operations in an uncertain market situation. Profit before tax was at Rs 27.200 Millions in 2013 improved as compared to Rs 20.600 Millions in the previous year mainly due to operational excellence initiatives, supply chain efficiencies, focus on project management and localization of the products inspite of higher interest costs. Net profit after tax stood at Rs 17.900 Millions for the current year as compared to Rs 13.700 Millions in the previous year. Consequently the earnings per share for 2013 stood at Rs 8.46 per share as compared to Rs 6.48 in 2012.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
ECONOMY AND MARKET
OVERVIEW
The economic landscape in 2013 continued to remain under pressure with year-on-year growth in gross domestic product declining to sub 5 percent, where the growth came primarily from agriculture and services. On the contrary, industry growth through the year remained flat and new project announcements fell to a third over a two year period. High interest rates, low policy visibility, delayed environmental clearances, issues around land acquisitions and fuel linkages, along with increasing inflation continued to impact global investor confidence in India. During the year, the rupee depreciated to an all-time low. Towards the end of the year, certain focused measures by the government and central bank, helped to bring in some positive trends as rupee stabilized, exports increased, current account deficit declined and project clearances were fast-tracked.
OPERATIONS OVERVIEW
During the year, the Company’s performance was mainly driven by continued penetration into new markets viz. renewables, energy efficiency solutions, data centers, railways and operational excellence initiatives. Focus on project management, supply chain efficiencies, aggressive localization, productivity improvement and various other optimization initiatives led to improved quality of execution across business segments. These initiatives also helped address market challenges, thereby reflecting in steady improvement of results. The Company has reported a healthy turnaround in cash in the midst of a tight liquidity market.
The year was marked by successful commissioning of several landmark projects – including 765/400 kV air insulated substation for Power Grid Corporation of India Limited, supporting the integration of the northern and southern grid, thereby help realizing the ‘one nation – one grid’ vision of the country. The Company also successfully commissioned the 2x25 MW of solar PV project for Mahagenco a/c Megha Engineering in the state of Maharashtra. While short cycle projects continued to be in focus, the Company remained selective in projects and sectors that offered better profitability and cash, which included higher content of its own manufactured items. There were, however, specific segments that faced some strain due to slowing investments in domestic industries. The cost of imports was also adversely impacted by currency volatility. Exports witnessed healthy growth, bolstered by orders for products and solutions with further penetration into new geographies.
With a strategic long-term focus, the Company added new capacity in 2013. The Company invested in new factories for Gas Insulated Switchgears (GIS), Plug and Switch Systems (PASS), oil-type and dry-type distribution transformers at Savli near Vadodara, along with a new miniature circuit breaker line at Nelamangala in Bangalore.
The Company secured orders valued at Rs 6,717 crores in 2013 as against Rs 696.600 Millions in the previous year. Base orders from wider spectrum of customers helped offset the paucity of large projects in the market. Exports grew annulling the effect of a contraction in domestic market opportunities. The Company continued to tap sectors like renewable energy, data center, railways, grid stability, mining, that look increasingly promising now and for the future.
The revenues for the Company for the year stood at Rs 763.200 Millions as against Rs 747.000 Millions in 2012, reflecting stability of operations in an uncertain market situation.
The order backlog at the end of the year stood at Rs 770.900 Millions, which continued to give more visibility to the future revenue streams.
Profit before tax was at Rs 27.200 Millions in 2013 as compared to Rs 20.600 Millions in the previous year. Net profit after tax stood at Rs 17.900 Millions for the current year as compared to Rs 13.700 Millions in the previous year. Consequently the earnings per share for 2013 stood at Rs 8.46 per share as compared to Rs 6.48 in 2012.
EXPORTS
During 2013, exports grew by well over 20 percent. Export revenue was driven by increased focus on market development and improving product quality. Significant export orders included those for dry type transformers, Safe Link circuit breaker, high voltage breakers and transformers, and miniature circuit breakers. Exports were spread over Europe, the Middle East, Brazil, Bangladesh, Bhutan, Nigeria, Oman, Angola, Australia, etc.
OUTLOOK
Led by the current macro trends, various projections peg inflation to remain at current levels, thus keeping interest rates elevated. While infrastructure investments by the government are expected to continue, the impending national elections introduce uncertainty in the investment climate in 2014. Towards the end of 2013, measures to fast-track project implementation gained traction. With respect to supply of coal to the power sector, signing of fuel supply agreements is likely to address the fuel linkage issues to a certain extent. Debt recast plans for state electricity boards is gaining momentum with a few states already in the fold. Interest in renewable energy saw a revival in 2013 with more orders in wind and larger installations for solar power. Investment in power quality improvement, grid reliability and stability, renewables, rail, oil and gas, and mining are likely to provide growth opportunities.
CONTINGENT
LIABILITIES
Rs.
In Millions
|
Particular |
31.12.2013 |
31.12.2012 |
|
Excise duty / Service tax and sales tax liabilities in dispute |
3848.300 |
3646.800 |
|
Custom duty liabilities in dispute |
161.400 |
20.200 |
|
Claims against the Company not acknowledged as debts |
88.500 |
88.500 |
|
Income tax matters in dispute |
2107.000 |
2540.500 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
80017474 |
08/09/2003 |
150,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK TOWERS, 1,COMMISSORIAT ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
- |
* Date of charge modification
FIXED ASSETS
- Freehold land
- Leasehold Land
- Leasehold Improvements
- Factory Buildings
- Other Building
- Residential Quarters
- Plant and Machinery
- Furniture and Fixture
- Vehicle
STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER ENDED 31.03.2014
Rs. In Millions
|
Particulars |
3 Months ended |
|
|
31.03.2014 |
||
|
Unaudited |
||
|
1 |
Income from Operations |
|
|
|
(a) Net sates/income from operations (Net of excise duty) |
18099.800 |
|
|
(b) Other Operating Income |
177.300 |
|
|
Total income from
operations (net) |
18277.100 |
|
2 |
Expenses |
|
|
|
(a) Cost of materials consumed |
10333.500 |
|
|
(b) Purchases of stock-in trade |
823.300 |
|
|
(c) Changes in inventories of finished goods. work-in-progress and
stock in trade |
103.900 |
|
|
(d) Subcontracting Charges |
1076.000 |
|
|
(e) Employee benefits expense |
1681.400 |
|
|
(f) Depreciation and Anmortisation Expenses |
274.100 |
|
|
(g) Other Expenses |
3001.800 |
|
|
Total expenses |
17294.000 |
|
3 |
Profit/ (Loss) from operations before other Income, finance costs and
exceptional Items (1-2) |
983.100 |
|
4 |
Other Income |
11.300 |
|
5 |
Profit/ (Loss) from operations before other income, finance costs and
exceptional items (3+4) |
994.400 |
|
6 |
Finance Costs |
220.700 |
|
7 |
Profit/ (Loss) from ordinary activities after finance cost but before
exceptional items (5-6) |
773.700 |
|
8 |
Exceptional items |
0.000 |
|
9 |
Profit/ (Loss) from ordinary activities before tax (7+8) |
773.700 |
|
10 |
Tax expenses |
256.900 |
|
11 |
Net Profit / (Loss) from ordinary activities after tax (9-10) |
516.800 |
|
12 |
Extraordinary item (net of tax expense) |
0.000 |
|
13 |
Net Profit / (Loss) for the period (11-12) |
516.800 |
|
14 |
Share of profit' (loss) of associates |
-- |
|
15 |
Minority Interest |
-- |
|
16 |
Net Profit/ (Loss) after taxes, minority interest and share of
profit/(loss) of associates (13+14+15) |
516.800 |
|
17 |
Paid up equity share capital (Face Value of Rs2/-each) |
423.800 |
|
18 |
Reserve excluding Revaluation Reserve as per Balance Sheet of
previous accounting year |
-- |
|
19.i |
Earnings per share (before extraordinary items) of Rs.10/- each (not
annualised): |
|
|
|
(a) Basic |
2.44 |
|
|
(b) Diluted |
2.44 |
|
19.ii |
Earnings per share (after extraordinary items) of Rs.10/- each (not
annualised) |
|
|
|
(a) Basic |
2.44 |
|
|
(b) Diluted |
2.44 |
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
1 |
Public Shareholding |
|
|
|
- Number of shares |
52977094 |
|
|
- Percentage of shareholding |
25.00% |
|
2 |
Promoters and Promoter group shareholding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of shares |
-- |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
-- |
|
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
-- |
|
|
b) Non Encumbered |
|
|
|
- Number of shares |
158931281 |
|
|
- Percentage of shares (as a % of the total shareholding of Promoter
& Promoter group) |
100.00% |
|
|
- Percentage of shares (as a % of the total Share Capital of the
Company) |
75.00% |
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
78 |
|
|
Disposed off during the quarter |
78 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
REVENUE, RESULTS AND
CAPITAL EMPLOYED FOR THE SEGMENTS
Rs. In Millions
|
Particulars |
3 Months ended |
|
|
31.03.2014 |
||
|
Unaudited |
||
|
1 |
Segment Revenue |
|
|
|
a Power Systems |
4766.100 |
|
|
b Power Products |
5739.000 |
|
|
c Process Automation |
2890.600 |
|
|
d Discrete Automation and Motion |
4352.900 |
|
|
e Low Voltage Products |
1814.800 |
|
|
Total |
19563.400 |
|
|
Unallocated |
104.000 |
|
|
Total |
19667.400 |
|
|
Less: Inter-Segment revenue |
1390.300 |
|
|
Net Sales I
Income from Operations |
18277.100 |
|
|
|
|
|
2 |
Segment Results
Profit I (Loss) (before tax, finance cost and exceptional items) from Segment |
|
|
|
a Power Systems |
231.300 |
|
|
b Power Products |
579.700 |
|
|
c Process Automation |
205.500 |
|
|
d Discrete Automation and Motion |
192.100 |
|
|
e Low Voltage Products |
78.200 |
|
|
Total |
1286.800 |
|
|
Less: |
|
|
|
i) Finance costs |
220.700 |
|
|
ii) Other un-allocable expenditure net off un-allocable income |
292.400 |
|
|
Total
Profit(Loss) before Tax |
773.700 |
|
|
|
|
|
3 |
Segment Capital
employed |
|
|
|
a Power Systems |
7324.900 |
|
|
b Power Products |
9017.100 |
|
|
c Process Automation |
4093.200 |
|
|
d Discrete Automation and Motion |
3901.000 |
|
|
e Low Voltage Products |
2989.000 |
|
|
f Unallocated |
(32.800) |
|
|
Total Segment
Capital Employed |
27292.400 |
Note:
1. This statement has been reviewed by the Audit Committee and recommended for approval to the Board and the Board approved at its meeting held on May 04, 2014.
2. The Hon'ble High Court of Bombay vide its Order dated September 27, 2013 has
sanctioned the Scheme of Amalgamation of Baldor Electric India Private Limited
(Baldor) with ABB India Limited (Company). The Scheme has become effective on
November 01, 2013 with appointed date being April 01, 2012. Baldor was a wholly
owned subsidiary of the Company.
Net profit of Rs. 24.200 Millions of Baldor from the appointed date i.e, April
01, 2012 to December 31, 2012 of the earlier year has been accounted separately
in the previous year ended December 31, 2013.
3. The figures of the previous year/ periods have been regrouped/ reclassified,
wherever necessary, to conform with the current year's classification.
4. The auditors have conducted a "Limited Review" of the above
financial results for the quarter ended on March 31, 2014.
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] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.73 |
|
|
1 |
Rs.100.82 |
|
Euro |
1 |
Rs.82.22 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
75 |
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.