MIRA INFORM REPORT
|
Report Date : |
10.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
TD POWER SYSTEMS LIMITED |
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Registered
Office : |
No. 27, 28 and 29, KIADB Industrial Area, Dabaspet, Nelamangala
Taluka, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
16.04.1999 |
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Com. Reg. No.: |
08-025071 |
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Capital
Investment / Paid-up Capital : |
Rs. 332.376 Millions |
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CIN No.: [Company Identification
No.] |
L31103KA1999PTC025071 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRT01321F |
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PAN No.: [Permanent Account No.] |
AABCT0360J |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer, Exporter and Importer of A.C. Generators. |
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No. of Employees
: |
750 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
|
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 12000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track record. Sales turnover of the company has declined during financial year 2014. The rating reflects company’s established track record of business
operations supported by sound financial risk profile and adequate liquidity
position 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A+ (Long Term Rating) |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
September 03, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
September 03, 2014 |
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
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Mr. Ganesh |
|
Designation : |
Account Executive |
|
Contact No.: |
91-80-22995700 |
|
Date : |
09.10.2014 |
LOCATIONS
|
Registered Office/ Plant/ Head Office : |
No. 27, 28 and 29, KIADB Industrial Area, Dabaspet, Nelamangala
Taluka, Bangalore – 562 111, Karnataka, India |
|
Tel. No.: |
91-80-22995700 / 66337700 / 27734432 |
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Fax No.: |
91-80-22995718 |
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E-Mail : |
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Website : |
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Japan Branch Office
: |
Towa Building, 4th Floor, 3-3 Kitashinagawa, 3 Chome, Shinagawa-ku. Tokyo-140-0001, Japan |
|
Tel. No.: |
81-3-5783-5380 |
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Fax No.: |
81-3-5783-5381 |
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City Office : |
“RMJ Mandoth Towers” #37, 7th Cross, Vasanthnagar, Bangalore – 560052, Karnataka, India |
|
Tel. No.: |
91-80-22017800 |
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Fax No.: |
91-80-22017850 |
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Plant 2 : |
Survey No. 59/2, Yedehalli Village, Dabaspet, Nelamangala, Rural District Bangalore – 562111, Karnataka, India |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Mohib N Khericha |
|
Designation : |
Chairman |
|
Address : |
711 – Mahakant, Opposite Hospital Ashram Road, Ahmedabad – 380006,
Gujarat, India |
|
Date of Birth/Age : |
04.08.1952 |
|
Date of Appointment : |
22.02.2000 |
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|
|
|
Name : |
Mr. Hithoshi Matsuo |
|
Designation : |
Whole Time Director |
|
Address : |
5-1-20-306, Miniamidai, |
|
Date of Birth/Age : |
04.02.2004 |
|
Qualification : |
M.E. |
|
Date of Appointment : |
01.07.2002 |
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|
|
|
Name : |
Mr. Nikhil Kumar |
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Designation : |
Managing Director |
|
Address : |
21, 17th Cross Malleswaram, |
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Date of Birth/Age : |
17.08.1967 |
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Qualification : |
B.E. |
|
Date of Appointment : |
01.10.2001 |
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|
|
|
Name : |
Mr. Tadao Kuwashima |
|
Designation : |
Director – Technical (up
to 31.03.2014) |
|
Address : |
G 12/1, |
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Date of Birth/Age : |
21.05.1947 |
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Qualification : |
B.E. |
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Date of Appointment : |
01.02.2002 |
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|
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|
Name : |
Mr. Salil Baldev Taneja |
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Designation : |
Director (up to May 17, 2013) |
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|
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|
Name : |
Mrs. Nandita Lakshmanan |
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Designation : |
Director |
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|
Name : |
Dr. Arjun Kalyanpur |
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Designation : |
Director |
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|
Name : |
Mr. Nitin Bagamane |
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Designation : |
Director |
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|
|
Name : |
Mr. Ravi Kanth Mantha |
|
Designation : |
Director (From 02.12.2013) |
KEY EXECUTIVES
|
Name : |
Mr. N. Srivatsa |
|
Designation : |
Company Secretary |
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|
Name : |
Mr. K. G. Prabhakar |
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Designation : |
Chief Financial Officer |
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|
Name : |
Mr. Ganesh |
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Designation : |
Account Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholder |
Total No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
6985524 |
21.02 |
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|
6026433 |
18.13 |
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|
3270175 |
9.84 |
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|
3270175 |
9.84 |
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|
16282132 |
48.99 |
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|
|
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|
4235254 |
12.74 |
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|
4235254 |
12.74 |
|
Total
shareholding of Promoter and Promoter Group (A) |
20517386 |
61.73 |
|
|
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(B)
Public Shareholding |
|
|
|
|
|
|
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|
2181163 |
6.56 |
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|
6864985 |
20.65 |
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Sub
Total |
9046148 |
27.22 |
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|
|
|
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|
1754322 |
5.28 |
|
|
|
|
|
|
211452 |
0.64 |
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|
706743 |
2.13 |
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|
1001537 |
3.01 |
|
|
122530 |
0.37 |
|
|
2737 |
0.01 |
|
|
876270 |
2.64 |
|
|
3674054 |
11.05 |
|
Total
Public shareholding (B) |
12720202 |
38.27 |
|
|
|
|
|
Total
(A)+(B) |
33237588 |
100.00 |
|
|
|
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
|
|
|
Total
(A)+(B)+(C) |
33237588 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Exporter and Importer of A.C. Generators. |
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Products : |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
L/C / Credit (30 Days) |
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Purchasing : |
L/C / Credit (30 Days) |
GENERAL INFORMATION
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Customers : |
End Users |
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No. of Employees : |
750 (Approximately) |
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Bankers : |
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Facilities : |
Cash Credit Rs.700.000 Millions Rs. (From Bank of Baroda)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B.K. Ramadhyani and Company Chartered Accountants |
|
Address : |
4 – B, Chitrapura Bhavan, No. 68, 8th Main, 15th
Cross, Malleswaran, |
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Wholly Owned
Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs. 350.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33237588 |
Equity Shares |
Rs.10/- each |
Rs. 332.376
Millions |
|
|
|
|
|
OTHER INFORMATION:
The Company has only one class of equity shares having par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays 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.
For the period ended 31 March 2014 (31 March 2013, Rs. 2.00), a dividend per share of Rs. 2.30 has been provided for payment to shareholders subject to approval at the Annual General Meeting of the Company. 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.
EQUITY SHARES INCLUDE
a.Shares allotted pursuant to a contract without consideration being received in cash. Issued to the shareholder of subsidiary company, DF Power Systems Private Limited, in exchange of 1,700,000 fully paid up equity shares of Rs. 10/- each on 19th October 2010.
b.Shares allotted by way of bonus shares.
On Capitalisation out of Reserves to an extent of 16,246,934 Equity Shares of Rs. 10/- each on 11th January 2011.
Particulars of equity shareholders holding more than 5% of the total paid up equity share capital
|
Particulars |
As at 31.03.2014 |
|
|
Percentage |
No of shares |
|
|
Saphire Finman Services Private Limited |
18.13% |
6,026,433 |
|
Nikhil Kumar |
15.46% |
5 ,138,664 |
|
Hitoshi Matsuo |
12.74% |
4,235,254 |
|
Sofia M Khericha |
6.27% |
2,084,100 |
|
Mohib N Khericha |
5.56% |
1,846,860 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
332.376 |
332.376 |
332.376 |
|
(b) Reserves & Surplus |
4531.948 |
4281.501 |
3999.471 |
|
(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) |
4864.324 |
4613.877 |
4331.847 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.197 |
|
(b) Deferred tax liabilities (Net) |
150.210 |
141.242 |
87.759 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
21.158 |
18.706 |
29.264 |
|
Total Non-current
Liabilities (3) |
171.368 |
159.948 |
117.220 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
597.962 |
269.932 |
342.633 |
|
(b) Trade
payables |
937.039 |
861.118 |
929.961 |
|
(c) Other
current liabilities |
780.816 |
801.243 |
1013.237 |
|
(d) Short-term
provisions |
109.290 |
98.656 |
104.453 |
|
Total Current
Liabilities (4) |
2425.107 |
2030.949 |
2390.284 |
|
|
|
|
|
|
TOTAL |
7460.799 |
6804.774 |
6839.351 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
2162.982 |
1984.061 |
1302.342 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
540.174 |
161.750 |
126.422 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
264.547 |
209.689 |
204.125 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
413.451 |
406.870 |
451.663 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
3381.154 |
2762.370 |
2084.552 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
862.974 |
530.461 |
829.533 |
|
(c) Trade
receivables |
1319.994 |
1289.248 |
1431.452 |
|
(d) Cash
and cash equivalents |
1404.647 |
1814.831 |
2025.586 |
|
(e)
Short-term loans and advances |
492.030 |
407.864 |
468.228 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
4079.645 |
4042.404 |
4754.799 |
|
|
|
|
|
|
TOTAL |
7460.799 |
6804.774 |
6839.351 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
3541.891 |
4237.981 |
6252.120 |
|
|
|
Other Income |
301.998 |
258.365 |
156.821 |
|
|
|
TOTAL (A) |
3843.889 |
4496.346 |
6408.941 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
2437.423 |
1748.420 |
2757.803 |
|
|
|
Purchase for Project Business |
186.757 |
953.746 |
1779.563 |
|
|
|
Employee benefits expenses |
448.653 |
417.482 |
469.190 |
|
|
|
Other Expenses |
371.106 |
388.309 |
536.089 |
|
|
|
Changes in inventories of Finished goods, work in progress and stock
in trade |
(237.143) |
293.236 |
(27.628) |
|
|
|
TOTAL (B) |
3206.796 |
3801.193 |
5515.017 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
637.093 |
695.153 |
893.924 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
36.048 |
34.149 |
65.679 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
601.045 |
661.004 |
828.245 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
145.994 |
122.538 |
89.987 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX (E-F) (G) |
455.052 |
538.466 |
738.258 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
115.167 |
181.722 |
240.077 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
339.885 |
356.744 |
498.181 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD |
1847.197 |
1595.934 |
1208.639 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
34.885 |
30.767 |
38.494 |
|
|
|
Provision for Dividends and Tax thereon |
89.439 |
74.714 |
72.392 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO THE B/S |
2062.758 |
1847.197 |
1595.934 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1301.063 |
1142.359 |
1495.366 |
|
|
|
Other Earnings |
0.000 |
0.094 |
3.363 |
|
|
TOTAL EARNINGS |
1301.063 |
1142.453 |
1498.729 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
605.054 |
229.636 |
495.070 |
|
|
|
Capital Goods |
274.530 |
101.420 |
74.316 |
|
|
TOTAL IMPORTS |
879.584 |
331.056 |
569.386 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
10.23 |
10.73 |
16.94 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
8.84 |
7.93 |
7.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.85 |
12.71 |
11.81 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.84 |
8.37 |
11.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
0.12 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.12 |
0.06 |
0.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.68 |
1.99 |
1.99 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
332.376 |
332.376 |
332.376 |
|
Reserves & Surplus |
3999.471 |
4281.501 |
4531.948 |
|
Net
worth |
4331.847 |
4613.877 |
4864.324 |
|
|
|
|
|
|
long-term borrowings |
0.197 |
0.000 |
0.000 |
|
Short term borrowings |
342.633 |
269.932 |
597.962 |
|
Total
borrowings |
342.830 |
269.932 |
597.962 |
|
Debt/Equity
ratio |
0.079 |
0.059 |
0.123 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
6,252.120 |
4,237.981 |
3,541.891 |
|
|
|
(32.215) |
(16.425) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
6,252.120 |
4,237.981 |
3,541.891 |
|
Profit After tax |
498.181 |
356.744 |
339.885 |
|
|
7.97% |
8.42% |
9.60% |
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
VIEW INDEX OF
CHARGES
|
S. No |
Charge ID |
Date of Charge Creation /Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN |
|
1 |
10353809 |
19/04/2012 |
200,000,000.00 |
Standard Chartered Bank |
Branch Office: Raheja Towers, 26 / 27, M.
G. Road, Bangalore, Karnataka - 560001, India |
B38974481 |
|
2 |
10070492 |
17/10/2008 * |
113,700,000.00 |
Bank Of Baroda |
Corporate Financial Services Branch, H J S
Chambe |
A49987449 |
|
3 |
90192621 |
16/02/2012 * |
2,130,000,000.00 |
Bank Of Baroda |
Corporate Financial Services Branch,
No.72, 1st Floor, Nitesh Lexington Avenue, Brigade Road,
Bangalore, Karnataka - 560025, India |
B34190702 |
|
4 |
90192574 |
05/07/2002 |
10,000,000.00 |
The Shamrad Vithal Co-Operative Bank
Limited |
Malleswaram Branch, 5th Cross;
Malleswaram, Bangalore, Karnataka - 560003, India |
- |
|
5 |
90198023 |
25/01/2002 * |
30,000,000.00 |
M/S Karnataka State Financial Corporation |
No. 1/1; Thimmaiah Road, Bangalore,
Karnataka, India |
- |
|
* Date of charge modification |
||||||
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2014 (Rs. In Millions) |
31.03.2013 (Rs. In Millions) |
|
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) |
93.301 |
472.197 |
|
Corporate Guarantee issued to the bankers of the subsidiary company (DFPS) |
5540.000 |
5540.000 |
|
Corporate Guarantee issued on behalf of subsidiary company. (Japan WOS) |
182.271 |
0.000 |
|
Outstanding Bills discounted under Letter of Credit |
0.000 |
24.715 |
|
Department of Income Tax (TDS Circle) have issued demand notice under section 201(1)/201(1a) of the Income Tax act, based on tax payer’s data reflected in the computer system of the department for Short deduction / Short payments and interest thereon, for the financial years 2006-07, 2007-08, 2008-09, 2009-2010, 2010-2011 amounting to Rs. 40.543 Millions including Rs. 10.742 Millions towards interest on such short deduction/payment under Forms 27EQ, 26Q and 24Q. The company has pursued the matter with the department during the year and the balance demand of Rs. 0.393 Million is under appeal including Rs. 0.109 Million towards interest on such short deduction/late payment. |
||
SEGMENT REPORTING
The company’s operation comprises of Manufacturing business and Project Business. Primary segmental reporting comprises of Manufacturing Business and Project Business Segments. Secondary Segmental reporting is based on geographical location of Activities. Under primary segment revenue and direct expenses, which relate to a particular segment and which are identifiable, are reported under that segment.
Certain expenses, which are not allocable to any specific segment, are separately disclosed at the enterprise level. Cash and bank balances in India are reported at the enterprise level as the company operates common bank accounts. Fixed assets, Liabilities, Current assets and Current liabilities relating to specific business segments are identified and reported. Those that are not identifiable are reported as common items.
Secondary segment is reported based on the geographical location of the company, viz., India and Japan. Revenues in the secondary segment are based on the sales made by the branch office. Inter-segmental purchases and sales are separately identified and reported. Fixed assets, Current Assets including Cash and Bank ac
OPERATIONS
The negative macroeconomic environment with a sub 5% GDP growth - the lowest in a decade, rising inflation, liquidity contraction, rising interest rates and a depreciating Rupee affected the business confidence resulting in a dismal investment climate in India. This coupled with an uninspiring performance of the manufacturing sector hit by high capital costs, non-availability of raw material, volatility in commodity prices and exchange rates accentuated the struggle the Indian economy witnessed in the financial year 2013-14. The global economy continued to grapple with sluggishness with some advanced countries showing signs of modest recovery.
The performance of the Company was also affected by the above factors as a player in the Capital (power) equipment sector. While order growth was reasonable, revenues declined and the Company’s profitability was also impacted due to increased costs and delayed off-take of finished goods.
The highlights of the Company’s performance for the year are as under:
• Revenue from operations and other income was lower by 14.51% at Rs. 3843.888 Millions (Rs. 4496.346 Millions). Exports contributed 35.45% of the revenue for the year as compared to 26.96% in the previous year.
• 298 (273) Generators of various ranges up to 40 MW were manufactured.
• Earnings Before interest, tax, depreciation and amortization (EBITDA) lower by 8.35% at Rs. 637.093 Millions (Rs. 6,95.154 Millions)
• Profit after tax decreased by 4.73 % to Rs 339.885 Millions (Rs. 356.744 Millions).
The pending orders as of March 31, 2014 is about Rs. 2956.250 Millions comprising of both manufacturing (Rs. 2726.530 Millions) and project business (Rs. 229.720 Millions). This is expected to improve significantly on the back of an impetus from overseas orders arising out of successful qualification as vendors to large overseas original electrical equipment manufacturers and successful supply of trial orders. On the domestic front, the optimism generated by the election of a single party government is expected to kick start investments and industrial growth is likely to result in an improvement in order book.
Manufacturing facilities - The Company’s new facility (Unit 2 Shop 3) located at Dabaspet, Bangalore for the production of large Generators has been commissioned on April 25, 2014. Located close to the existing production facilities, the facility is dedicated to the production of large generators in the range of 74 MVA to 250 MVA. The Company is in the process of executing an order for - 2 generators of 84 MVA each in the said new facility.
This new facility along with the expansion of the existing facilities which was commissioned during the last quarter of financial year 2013, substantially enhances the production capacity while incorporating global standards and capabilities for manufacture of generators catering to various types of applications and large generators.
Considering the expected improvement in order levels and various other steps initiated in growing the markets for the Company’s products coupled with the enhanced manufacturing facilities, the Directors are confident that the company will be able to sustain and grow its top line and maintain margins in the financial year 2014-15.
MANAGEMENT DISCUSSION
AND ANALYSIS
COMPANY’S BUSINESS
From nearly double-digit growth, India’s economic growth slumped to sub 5% during the last fiscal. A sliding Rupee, high interest costs, low corporate investments and business confidence, high inflation, growing fiscal and trade deficits continued to dog the Indian economy through the fiscal 2014. Expectations of policy measures to kick-start the investment cycle growth were belied due to a policy paralysis while the impending general election mode in the country infused uncertainty in the economic and business environment. There was no visibility of a sustained Global recovery and the Eurozone economic sluggishness continued unabated affecting India’s economic growth. Thus, failing economy, low industrial growth, unfavorable investment climate and the continuing global economic slowdown impacted all segments of the company’s business in varying measures in Fiscal 2014.
They are one of the leading manufacturers of AC Generators for a diverse range of prime movers with output capacities ranging from 1 MW –to 200 MW for steam and gas and upto 35 MW for hydro and upto 20 MW diesel and gas engines and customized rating for wind turbines,catering to both conventional and renewable fuel based power plants. As of March 31, 2014 (Fiscal 2014), 2330 generators have been supplied to over 52 countries with an aggregate output capacity of over 18514 MW. The Net sales from our manufacturing business increased by Rs. 415.022 Millions or 16.24% to Rs. 2970.667 Millions in Fiscal 2014 (from Rs. 2555.616 Millions in Fiscal 2013). The generator business contributed to 64% of Fiscal 2014 revenues of the company. Steam and Hydro contributed to 48% and 30 % respectively of order book for Fiscal 2014 while gas contributed to 11%. A large part of generator sales take place through OEMs but over the last 3 years the customer base is diversified with top 10 customers contributing to 52% of Fiscal 2014 revenues compared to 77% as of Fiscal 2011.
Even though Steam generators accounted for 48% and hydro generators 39% of revenue respectively, the contribution of Hydro to the revenues doubled in Fiscal 2014 on the back of our association with a leading hydro power equipment manufacturer. Exports and deemed exports contributed to 50% of sales for Fiscal 2014. Our technical tie ups with world leaders in power equipments has strengthened our overseas markets enabling growing supplies to reputed original equipment manufacturers (OEM’S) in world markets who will largely drive our exports both in the medium and long term.
They also undertake mainly through our Japan branch, Turbine Generator island (TG Island) projects for steam turbine power plants with output capacity up to 55 MW using a Japanese turbine combined with our generator. Net sales from their Project Business (TG island up to 52MW) decreased by Rs. 1224.080 Millions or 72.76% to Rs. 458.285 Millions in Fiscal 2014 from Rs. 1682.365 Millions in Fiscal 2013. The appreciation of the Japanese yen as well as dismal economic and investment climate in India and worldwide resulted in low order intake adversely impacting this business in Fiscal 2014.
Due to strategic reasons continuance of this business is being reviewed.
Their Subsidiary, DF Power Systems Private Limited, is in the business of Engineering, Procurement and Construction, executing Boiler-Turbine Generator island projects and the balance of plant portion for steam turbine power plants with output capacity up to 150 MW. Net Sales from EPC Business decreased by Rs. 414.473 Millions or 25.39% to Rs. 1218.201 Millions in Fiscal 2014, from Rs. 1632.674 Millions in Fiscal 2013.The order book at the beginning of the year was Rs. 3613.100 Millions. An order of Rs. 1101.100 Millions was received for a waste heat recovery based power project from a leading cement manufacturer in the north. The order book stands at Rs. 14,37.000 Millions as of March 31, 2014 , made up of two orders – from a cement plant in Karnataka and a waste heat recovery plant in Raipur after accounting for cancellation of an EPC order worth Rs. 2250.000 Millions from a North-East paper company as the renegotiation of commercial terms were unfavorable to the company. Both these orders on hand are scheduled for completion in the ongoing year.
On a consolidated basis, the Net sales decreased by Rs. 1068.357 Millions or 18.20% to Rs. 4802.298 Millions in Fiscal 2014 from Rs. 5870.655 Millions in Fiscal 2013 due to steep decrease in sales from Project Business and EPC Business as stated above. Consequently, our profit after tax decreased by Rs. 190.331 Millions or 45.60% to Rs. 227.081 Millions in Fiscal 2014 from Rs. 417.412 Millions in Fiscal 2013 due to significant drop in revenues from projects and EPC business in addition to cost base from our US subsidiary.
OUTLOOK
A new union government has been installed on the back of a historic mandate for change and development saddled by very high expectations. While the Indian economy continues to witness stagflation, unabated inflationary worries, failing monsoon, the Indian stock markets and Foreign investors are reflecting high optimism and confidence in the measures that the new government is likely to initiate to kick start industrial and economic revival. The overall business confidence is hopeful and investments are waiting to be unleashed. However, the union budget of the new government is eagerly awaited as it is expected to reflect certain policy measures, avenues and constraints in revenue raising by the government and the bitter pill, the government may prescribe to reign in fiscal deficit without hurting development further.
In the current fiscal, the domestic market continues to remain soft till date for the manufacturing business and a revival if at all, in this market would be sustainable from FY16 driven by industrial capex recovery. We have a healthy market share in steam generators (up to 55MW), in diesel generators and hydro generators and are ready to capitalize on any upswing in domestic as well as overseas demand. While the steam generator market is sluggish, we expect a healthy growth in hydro, gas and windgenerators in Fiscal 2015. Exports will continue to grow in this Fiscal 2015 forming a significant portion of the order inflow as strong business for the hydro segment is expected from Central America and Europe. The Gas engine business is expected to contribute well worldwide, with America, Africa, Australia and Indonesia being the key contributors. The steam generator business is also likely to rise on the back of a tie up with a couple of more European OEMs (original equipment manufacturers). The required investments in expansion of the production facilities for manufacture of lower range generators including wind and diesel engine applications, as well as large generators have been completed out of the full utilization of the IPO proceeds thus enhancing our production capacity to take on expected growth. Our US Subsidiary has made good progress and we expect a good contribution in Fiscal 2015. They have a comfortable order book currently for Fiscal 2015 and are hopeful of increasing the same to support a growth of 20% in manufacturing business over Fiscal 2014.
The projects business (TG island) is being realigned to meet business requirements and during this Fiscal 2015 revenues from this is expected to be flat. Strategically, in order to focus on growing the markets for the company’s generators more OEM alliances will be critical and any activity which may be in conflict with such alliances will be have to be reviewed and TG Island business may have to be phased out to meet this objective.
In the EPC business, new project pipeline continues to be limited while the competition is intense. While we are hopeful of booking fresh orders, the revenues from this business is expected to remain flat and is not likely to show any significant growth. Further, our EPC business has framed a strategy of not compromising on the working capital/payment terms while bidding and one of the primary criteria to bid for orders are healthy advance payment from customers and financial standing of the customer. This has enabled the EPC business to overcome blocking of the working capital in the power project business.
It is expected that the company will sustain growth and profitability year on year in Fiscal 2015 on the back of a growth in manufacturing business. Any substantial improvements in business in the above segments both in India and overseas will contribute to an improved performance. The company maintains a healthy cash position and continues to remain debt free.
FIXED ASSETS
- Free Hold Land
- Lease Hold Land
- Buildings
- Plant and Machinery
- Office Equipments
- Furniture and Fixtures
- Computers
- Communication Equipments
- Motor Vehicles
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. 61.04 |
|
UK Pound |
1 |
Rs. 98.64 |
|
Euro |
1 |
Rs. 77.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
62 |
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.