MIRA
INFORM REPORT
|
Report Date : |
26.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
EON ELECTRIC LIMITED |
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|
|
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Formerly Known
As : |
INDO ASIAN FUSEGEAR LIMITED |
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Registered
Office : |
House No. 1048, Sector 14, Sonepat-131001, Haryana |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
06.11.1989 |
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Com. Reg. No.: |
05-035580 |
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Capital Investment
/ Paid-up Capital : |
Rs. 80.287 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31200HR1989PLC035580 |
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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
: |
The company is engaged in the manufacturing and selling of Cables and
Wires, Energy Efficient Lighting, Wiring accessories, Fans, Geysers and other
electrical products |
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|
|
|
No. of Employees
: |
1000 (Approximately) |
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 162130000 |
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|
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The company has incurred loss from its operations in the year 2013. The rating also take into consideration, the successful demerger of
metering division and power generation business of the subject which has been
further Merged with “Advance Metering Technology Limited “ with effect from
27th March, 2012. However, trade relations are fair. Business is active. Payment terms
are reported as slow but correct. The company can be considered normal 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.
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 |
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Restricted |
C2 |
|
Off-credit |
D |
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.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
MANAGEMENT NON – COOPERATIVE 991-120-3096740)
LOCATIONS
|
Registered Office : |
House No. 1048, Sector 14, Sonepat-131001, Haryana, India |
|
Tel. No.: |
91-120-3096740 |
|
Mobile No.: |
91-8826392110 [Mr. Anil Sharma] |
|
Fax No.: |
Not Available |
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E-Mail : |
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|
Website : |
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Corporate Office : |
B-88, Sector 83, Noida-201305, Uttar Pradesh, India |
|
Tel No.: |
91-120-3096700/701 |
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Fax No.: |
91-120-3096800 |
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Email: |
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Factory : |
UNIT 1 Plot No. 10, Sector 4, SIDCUL, Haridwar-249402, Uttarakhand, India UNIT 2 Plot No. 28-29, Sector 6B, SIDCUL, Haridwar– 249403, Uttarakhand,
India UNIT 3 Plot No. 1C, Sector 7, SIDCUL, Haridwar– 249403, Uttarakhand, India |
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|
|
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Branch Office : |
Located At: ·
Ahmedabad ·
Mumbai ·
Bangalore ·
Lucknow ·
Jaipur |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. V. P. Mahendru |
|
Designation : |
Chairman-cum-Managing Director |
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Name : |
Mr. Vivek Mahendru |
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Designation : |
Executive Director |
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Name : |
Mr. Vinay Mahendru |
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Designation : |
Executive Director |
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|
Name : |
Mr. A. K. Ghosh |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. R. C. Bansal |
|
Designation : |
Non-Executive Director |
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|
|
|
Name : |
Mr. Ranjan Sarkar |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. K.B. Satija |
|
Designation : |
Assistant Vice President (Corporate Finance) |
|
|
|
|
Name : |
Mr. Kumar Indramani |
|
Designation : |
Manager (Legal) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2332230 |
14.52 |
|
|
6461433 |
40.24 |
|
|
8793663 |
54.76 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
8793663 |
54.76 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
990853 |
6.17 |
|
|
|
|
|
|
4038285 |
25.15 |
|
|
1995882 |
12.43 |
|
|
238783 |
1.49 |
|
|
238783 |
1.49 |
|
|
7263803 |
45.24 |
|
Total Public shareholding (B) |
7263803 |
45.24 |
|
Total (A)+(B) |
16057466 |
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) |
16057466 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the manufacturing and selling of Cables and
Wires, Energy Efficient Lighting, Wiring accessories, Fans, Geysers and other
electrical products |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
1000 (Approximately) |
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Bankers : |
·
State Bank of India ·
State Bank of Patiala |
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Facilities : |
NOTE: a)
Cash Credit Facility is secured primarily against
first charge by way of hypothecation of entire current assets and
collaterally by equitable mortgage (first charge) of Plot No. 10, Sector-4,
IIE, SIDCUL, Haridwar and personally guaranteed by two directors of the
company. b)
Other Loans from Banks are secured against pledge
of approved Investments in Mutual Funds and Bonds held in the name of the
company. |
|
Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
J. C. Bhalla and Company Chartered Accountants |
|
Address : |
New Delhi, India |
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|
|
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Subsidiary Company |
·
IAFL Cables Limited (Ceased to be a subsidiary
w.e.f. 1st April, 2011 pursuant to Scheme of Arrangement) |
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|
|
|
Investing Parties with whom the Company is a Joint Venture Partner |
·
Indo Simon Electric Private Limited ·
Saudi National Lamps and Electricals Company
Limited (Ceased to be a Joint Venture w.e.f.1st April, 2011 pursuant to
Scheme of Arrangement) ·
Luxtra Lighting Private Limited |
|
|
|
|
Group Company |
·
IAFL Power Distribution & Infrastructure
Private Limited |
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|
|
|
LLP firms in which relatives of Directors are Partners : |
·
VPM Industrial Services Corporation LLP ·
PKR Hitech Industrial Corporation LLP |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19000000 |
Equity Shares |
Rs.5/- each |
Rs.95.000 Millions |
|
6000000 |
Preference Shares |
Rs.5/- each |
Rs.30.000 Millions |
|
|
|
|
|
|
|
|
|
Rs. 125.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16057466 |
Equity Shares |
Rs.5/- each |
Rs. 80.287 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 |
80.287 |
160.575 |
169.516 |
|
(b) Reserves & Surplus |
1541.038 |
3286.445 |
3501.735 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
15.575 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
1621.325 |
3447.020 |
3686.826 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
39.487 |
0.000 |
1.611 |
|
(b) Deferred tax liabilities (Net) |
8.984 |
37.843 |
0.000 |
|
(c) Other long term liabilities |
14.469 |
7.553 |
5.061 |
|
(d) long-term provisions |
9.622 |
9.887 |
7.740 |
|
Total Non-current Liabilities (3) |
72.562 |
55.283 |
14.412 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
273.927 |
0.000 |
44.222 |
|
(b) Trade payables |
115.413 |
47.537 |
43.938 |
|
(c) Other current
liabilities |
84.172 |
49.142 |
0.000 |
|
(d) Short-term provisions |
4.534 |
5.323 |
10.202 |
|
Total Current Liabilities (4) |
478.046 |
102.002 |
98.362 |
|
|
|
|
|
|
TOTAL |
2171.933 |
3604.305 |
3799.600 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
291.643 |
580.251 |
355.991 |
|
(ii) Intangible Assets |
0.083 |
0.337 |
0.286 |
|
(iii) Capital
work-in-progress |
14.346 |
22.171 |
30.644 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
364.194 |
837.512 |
664.613 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
56.155 |
126.845 |
48.012 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
726.421 |
1567.116 |
1099.546 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
528.714 |
1506.372 |
2299.396 |
|
(b) Inventories |
341.860 |
131.243 |
126.170 |
|
(c) Trade receivables |
399.825 |
199.491 |
157.060 |
|
(d) Cash and cash
equivalents |
130.932 |
174.340 |
118.936 |
|
(e) Short-term loans
and advances |
38.604 |
22.831 |
16.682 |
|
(f) Other current
assets |
5.577 |
2.912 |
1.810 |
|
Total Current Assets |
1445.512 |
2037.189 |
2720.054 |
|
|
|
|
|
|
TOTAL |
2171.933 |
3604.305 |
3799.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1561.361 |
561.492 |
387.419 |
|
|
|
Other Income |
84.791 |
116.733 |
110.477 |
|
|
|
TOTAL |
1646.152 |
678.225 |
497.896 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1023.925 |
450.516 |
313.485 |
|
|
|
Purchases of Stock-in-Trade |
477.785 |
72.514 |
50.838 |
|
|
|
Changes in
Inventories of Finished Goods, Work-in-progress and Stock-in-Trade |
(228.103) |
(1.939) |
67.333 |
|
|
|
Employee Benefits Expense |
190.483 |
106.870 |
87.965 |
|
|
|
Other Expenses |
323.570 |
157.330 |
398.644 |
|
|
|
TOTAL |
1787.660 |
785.291 |
918.265 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
(141.508) |
(107.066) |
(420.369) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
25.184 |
5.907 |
35.427 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(166.692) |
(112.973) |
(455.796) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
24.603 |
31.481 |
38.652 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS AND TAX |
(191.295) |
(144.454) |
(494.448) |
|
|
|
|
|
|
|
|
|
less |
EXTRAORDINARY
ITEMS |
0.000 |
0.000 |
(3951.312) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(191.295) |
(144.454) |
3456.864 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
6.655 |
24.802 |
822.025 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(197.950) |
(169.256) |
2634.839 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
294.983 |
464.239 |
32.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Special Interim Dividend on Equity Shares |
0.000 |
0.000 |
169.516 |
|
|
|
Preference Dividend |
0.000 |
0.000 |
1.000 |
|
|
|
Arrears of Preference Dividend |
0.000 |
0.000 |
4.000 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
28.984 |
|
|
|
Transferred to General Reserve |
0.000 |
0.000 |
2000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
97.033 |
294.983 |
464.239 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Material (including components stores & spares) |
37.575 |
4.708 |
66.234 |
|
|
|
Stock-in-Trade |
60.776 |
0.000 |
66.234 |
|
|
|
Capital Goods |
12.055 |
2.596 |
3.319 |
|
|
TOTAL IMPORTS |
110.406 |
7.304 |
135.787 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(12.33) |
(10.03) |
(30.96) |
|
QUARTERLY RESULTS
|
Particulars |
30.06.2013 |
30.09.2013 |
31.12.2012 |
|
Audited / UnAudited |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
392.100 |
329.500 |
312.300 |
|
Total Expenditure |
453.800 |
391.000 |
355.900 |
|
PBIDT (Excl OI) |
(61.700) |
(61.500) |
(43.600) |
|
Other Income |
35.700 |
05.000 |
12.100 |
|
Operating Profit |
(26.000) |
(56.500) |
(31.500) |
|
Interest |
11.500 |
12.400 |
14.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(37.500) |
(68.900) |
(45.900) |
|
Depreciation |
6.500 |
07.600 |
7.800 |
|
Profit Before Tax |
(44.000) |
(76.500) |
(53.700) |
|
Tax |
0.200 |
(0.600) |
(5.700) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(44.200 |
(76.000) |
(48.000) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(44.200) |
(76.000) |
(48.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(12.01)
|
(24.95) |
(529.19) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(12.25)
|
(25.73) |
892.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(10.66)
|
(5.26) |
(110.64 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.12)
|
(0.04) |
0.94 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.19
|
0.0 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.02
|
19.97 |
27.65 |
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 |
169.516 |
160.575 |
80.287 |
|
Reserves & Surplus |
3501.735 |
3286.445 |
1541.038 |
|
Net
worth |
3671.251 |
3447.020 |
1621.325 |
|
|
|
|
|
|
long-term borrowings |
1.611 |
0.000 |
39.487 |
|
Short term borrowings |
44.222 |
0.000 |
273.927 |
|
Total
borrowings |
45.833 |
0.000 |
313.414 |
|
Debt/Equity
ratio |
0.012 |
0.000 |
0.193 |
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 |
387.419 |
561.492 |
1561.361 |
|
|
|
44.931 |
178.074 |
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 |
387.419 |
561.492 |
1561.361 |
|
Profit |
2634.839 |
(169.256) |
(197.950) |
|
|
680.10% |
(30.14%) |
(12.68%) |
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 |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deffered payments |
39.487 |
0.000 |
|
|
|
|
|
Total |
39.487 |
0.000 |
NOTE:
Deferred
payment liability is due to Haryana State Industrial and Infrastructure
Development Corporation Limited against land purchased from them and is payable
in 8 equal half yearly instalments alongwith interest thereon.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10391814 |
16/04/2013 * |
800,000,000.00 |
STATE BANK OF PATIALA |
COMMERCIAL BRANCH, CHANDRALOK BUILDING,
36, JANPATH , NEW DELHI, Delhi - 110001, INDIA |
B73042244 |
* Date of charge modification
CORPORATE
RESTRUCTURING
Pursuant to the
Scheme of Arrangement(“Scheme”) u/s 391 to 394 of the Companies Act, 1956
between Eon Electric Limited (“Eon”) and Advance Metering Technology
Limited(“AMTL’) and their respective shareholders and creditors for demerger of
the Metering Division and Power generation Business of the company duly
sanctioned by the Hon’ble High Court for the States of Punjab and Haryana at
Chandigarh vide its Order dated 27th March, 2012, the Metering Division and
Power Generation Business of Eon stands demerged and transferred to and vested
in AMTL with effect from 1st April, 2011(Appointed Date) on a going concern
basis.
The Scheme became
effective on 8th April, 2012(Effective Date) on filing of the Certified True
Copy of the said Order of Hon’ble High Court with the Registrar of Companies,
NCT of Delhi and Haryana.
Pursuant to the
above Scheme, the Authorised, Issued, Subscribed and Paid up Share Capital of
Eon as on 9th May, 2012(“the Record Date”) has been reduced to half by changing
the face value of the shares from Rs. 10 /- to Rs. 5/- each. Accordingly, the
Board of Directors of Eon and AMTL have at their respective meeting held on
12th May, 2012 allotted to all the eligible shareholders of Eon, one fully paid
up Equity Share of the face value of Rs. 5/- each of Eon and one fully paid
equity share of the face value of Rs. 5/- each of AMTL in lieu of every one
paid up equity share of the face value of Rs.10/- each held by them as on the
Record Date.
MANAGEMENT
DISCUSSION AND ANALYSIS
COMPANY OVERVIEW
The Company is engaged in the business of
manufacturing and marketing of electrical equipment’s such as Wires and Cables,
Modular Switches, Lighting products, LED Lights, Energy Efficient Fans, Lithium
ion Batteries and Mobile Phone Accessories. After demerger of its metering and
power generation business in the year 2012, the Company has continued with
remaining business and has further diversified its business in LED based
lighting products and Energy Efficient Fans and Water Heaters.
In order to
augment the production of LED Lighting products and Energy Efficient Fans, the
Company has recently acquired two factories at SIDCUL Haridwar which are in
close proximity to the Company’s existing works and would provide better
synergy and economies of large scale production in the tax free zone at
Uttarakhand.
The Company is
also exploring an opportunity to diversify its existing business into other
sectors including home appliances business.
The company continues
to be committed towards making best of quality products at affordable prices
through technological innovation and up gradation, modernisation, adoption of
best practices, global benchmarking, value proposition, and deep commitment to
customer satisfaction besides ensuring human as well as environmental safety,
thus enhancing the value addition for the investors and for the society as a
whole. No doubt, they willestablish our capabilities beyond the Indian borders
and enable our clients, enjoy the value of our productsand services globally.
INDUSTRY STRUCTURE
AND DEVELOPMENT, OPPORTUNITY AND THREATS
The Gross Domestic
Product of our country has been growing at the rate of about 8% for the last
several years. The liberalisation and globalisation of the economy is leading
to an increased tempo in industrial and commercial activities and this, coupled
with penetration of technology and I.T. in the day to day working of the common
man, is expected to result in a high growth in power demand. It is accordingly
essential that development of power sector should be commensurate with the
overall economic growth of the nation.
The Indian Power
Sector is a core component of the Indian infrastructure and its expansion is
essential for the success of economic liberalisation of India. This is evident
from ever increasing power demand of the country’s vibrant economy leading to a
widening gap between the supply and demand. The Government of India has
recognised the pivotal role of electric power in economic development and also
the and critical need to invest heavily to reduce the growing gap in power
demand and supply. During the 12th five year plan, Indian shall be adding a
power generation capacity of 6500 MW. This massive addition in generation
capacity would also bring along with it a much bigger demand for electrical
equipment’s and components including cables and wires, switches etc.
The industry is
fully geared up to meet the likely demand arising out of 12th Plan and even
beyond. The Cable and Wires industry has shown positive trends for the past
five years due to the increased activity in power sector, improved industrial
climate and industry initiatives to explore export markets. The outlook of
cables and wires industry continue to remain
positive on the back of demand expected to be generated as per
estimation in various sectors like power, real estate etc.
The Lighting
industry is growing at the rate of 17- 18% per annum over last few years. The
consumer usage pattern for light sources witnessed a distinct shift from the
conventional sources towards new Energy Efficient Lamps such as CFLs and LEDs
due to growing thrust on energy conservation and increase of power tariff.
The increased
emphasis on power generation and new fast developing consciousness for
conservation of power and energy efficiency has hastened the process of growth
of demand for the Company’s products.
With
diversification of Company’s product range which would now include Lithium ion
Batteries, Energy Efficient Fans, LEDs for Lighting and Luminaires, the
prospects of Company are good.
Since power sector
and infrastructure/real estate sector are main consumers of Company’s products,
any slowdown in these sectors can largely impact the demand for Company’s
products. Further most of the Company’s products are highly competitive and
also face challenge from unorganised sector which are providing cheap products
with inferior quality. Hence the pricing across our business is also under risk
due to competition. They have been providing and offering value added services
and benefits to the customers to retain them. They are also investing towards
brand building and awareness programme across our businesses to ensure adequate
quality product differentiation
FINANCIAL
PERFORMANCE
Financial performance
of the Company for the year 2012 – 13 as compared to the previous year is
furnished in detail in the Directors’ Report.
COMPANY OVERVIEW:
The Company is a
public company domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on the National Stock Exchange of
India Limited and Bombay Stock Exchange Limited. The company is engaged in the
manufacturing and selling of Cables and Wires, Energy Efficient Lighting,
Wiring accessories, Fans, Geysers and other electrical products. The Company
has also entered into business of Lithium-ion Batteries and Mobile Phone
Accessories.
FIXED ASSETS
Tangible Assets:
·
Land Leasehold
·
Land Freehold
·
Building
·
Leasehold Improvement
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipments
·
Fans Coolers and AC
·
Vehicles
·
Computers
·
Electrical Fittings
Intangible Assets:
·
Computer Software
STATEMENT OF
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / NINE MONTHS ENDED
31ST
DECEMBER, 2013
|
|
|
Particulars |
Quarter Ended |
Nine
Month |
|
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1 |
Income from Operations |
|
|
|
|
|
|
a) Net Sales/Income from
Operations (net of excise duty) |
312.266 |
329.491 |
1033.879 |
|
|
|
b) Other Operating Income |
-- |
-- |
-- |
|
|
|
Total Income from Operations (Net) |
312.266 |
329.491 |
1033.879 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials
consumed |
166.923 |
144.282 |
507.103 |
|
|
b) |
Purchase of stock
in-trade |
55.868 |
108.477 |
249.745 |
|
|
c) |
Changes in inventories of
finished goods, work-in-progress and stock-in-trade |
16.392 |
(1.915) |
42.395 |
|
|
d) |
Employee benefit expenses |
47.129 |
52.850 |
159.833 |
|
|
e) |
Depreciation and
amortization expense |
78.200 |
762.600 |
21.918 |
|
|
f) |
Other expenses |
69.601 |
87.347 |
241.716 |
|
|
Total Expenses |
363.733 |
39.667 |
1222.710 |
|
|
3 |
|
Profit /(Loss) from
operations before other income, finance costs and exceptional items (1-2) |
(51.467) |
(69.176) |
(188.831) |
|
4 |
Other Income |
12.136 |
5.021 |
52.892 |
|
|
5 |
|
Profit /(Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
(39.331) |
(64.155) |
(135.939) |
|
6 |
Finance Costs |
14.353 |
12.376 |
38.247 |
|
|
7 |
|
Profit /(Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
(53.684) |
(76.531) |
(174.186) |
|
8 |
Exceptional Items |
-- |
-- |
-- |
|
|
9 |
Profit /(Loss) from
ordinary activities before tax |
(53.684) |
(76.531) |
(174.186) |
|
|
10 |
Tax Expense |
|
|
|
|
|
|
Current Tax |
-- |
-- |
-- |
|
|
|
Deferred Tax |
(0.512) |
(0.563) |
(0.842) |
|
|
|
Prior Period Tax
Adjustment |
(5.178) |
-- |
(5.178) |
|
|
11 |
Net Profit /(Loss) from
ordinary activities after tax (9-10) |
(47.994) |
(75.968) |
(168.166) |
|
|
12 |
Extraordinary items (net
of tax expense) |
-- |
-- |
-- |
|
|
13 |
Net Profit /(Loss) for
the period (11-12) |
(47.994) |
(75.968) |
(168.166) |
|
|
14 |
Paid up equity share
capital (Eq. shares of Rs.10/- each) |
80.287 |
80.287 |
80.287 |
|
|
15 |
Reserve excluding
revaluation reserves |
|
|
|
|
|
16 |
|
Earnings per share
(before/after extraordinary items) of
Rs.10/- each |
|
|
|
|
|
|
Basic |
(2.99) |
(4.73) |
(10.47) |
|
|
|
Diluted |
(2.99) |
(4.73) |
(10.47) |
|
|
|||||
|
A |
|
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
|
Public Shareholding |
|
|
|
|
|
|
- No. of Shares |
7437734 |
7644565 |
7437734 |
|
|
|
- Percentage of
Shareholding |
46.32% |
47.61% |
46.32% |
|
2 |
|
Promoters and promoter
group shareholding |
|
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
|
- Number of shares |
Nil |
Nil |
Nil |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
Nil |
Nil |
Nil |
|
|
|
b) Non- encumbered |
|
|
|
|
|
|
- Number of shares |
8619732 |
8412901 |
8619732 |
|
|
|
- Percentage of shares (
as a % of the total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
|
- Percentage of shares
(as a % of the total share capital of the Company) |
53.68% |
52.39% |
53.68% |
|
|
Particulars |
Quarter
ended 31.12.2013 |
|
|
B |
|
Investor Complaints |
|
|
|
|
Pending at the beginning
of the quarter |
-- |
|
|
|
Received during the
quarter |
5 |
|
|
|
Disposed during the
quarter |
5 |
|
|
|
Remaining unresolved at
the end of the quarter |
-- |
NOTE:
1. The above results were reviewed by the audit committee and approved by
the board of Directors at its meeting held on 31st January, 2014 and
have undergone “Limited Review” by the statutory Auditors of the Company.
2. Figure for the previous period / year have been re-classified / re –
arranged / re – grouped, wherever necessary, to make them comparable.
SEGMENTWISE
REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE THIRD QUARTER AND NINE MONTHS'
PERIOD ENDED 31ST DECEMBER, 2013
|
|
Particulars |
Quarter Ended |
Nine Month |
|
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1 |
Segment Revenue (Sales and Other Operating
Income) |
|
|
|
|
a) |
Cable and Wires |
190.935 |
181.679 |
638.545 |
|
b) |
Lighting |
80.770 |
77.615 |
209.160 |
|
c) |
Others |
40.561 |
70.197 |
186.174 |
|
|
Total
|
312.266 |
329.491 |
1033.879 |
|
|
Less: Inter Segment Revenue |
-- |
-- |
-- |
|
|
Income from Operations |
312.266 |
329.491 |
1033.879 |
|
|
Less: Excise Duty |
-- |
-- |
-- |
|
|
Net
Income from operations |
312.266 |
329.491 |
1033.879 |
|
|
|
|
|
|
|
2 |
Segment Results: [Profit/ (Loss)
before tax and interest from each segment] |
|
|
|
|
a) |
Cable and Wires |
(32.760) |
(32.889) |
(102.587) |
|
b) |
Lighting |
5.217 |
(1.135) |
(2.857) |
|
c) |
Others |
(7.087) |
(18.700) |
(29.255) |
|
|
Total |
(34.630) |
(52.724) |
(134.699) |
|
|
Less : i)
interest |
14.353 |
12.376 |
38.247 |
|
|
ii) other
un-allocable expenditure net of un-allocable income |
4.701 |
11.431 |
1.240 |
|
|
Total Profit Before Tax |
(53.684) |
(76.531) |
(174.186) |
|
|
|
|
|
|
|
3 |
Capital Employed (Segment Assets – Segment
Liabilities) |
|
|
|
|
a) |
Cable and Wires |
399.519 |
425.041 |
399.519 |
|
b) |
Lighting |
121.729 |
117.505 |
121.729 |
|
c) |
Others |
269.380 |
301.267 |
269.380 |
|
d) |
Unallocated |
648.462 |
643.272 |
648.462 |
|
|
Total |
1439.090 |
1487.085 |
1439.090 |
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.58.48 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.79.80 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
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.