MIRA
INFORM REPORT
|
Report Date : |
15.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
ISGEC HEAVY ENGINEERING LIMITED |
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Registered
Office : |
Radaur Roadyamuna Nagar –
135001, Haryana |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
23.01.1933 |
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Com. Reg. No.: |
55-000097 |
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Capital
Investment / Paid-up Capital : |
Rs. 73.529 Millions |
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CIN No.: [Company Identification
No.] |
L23423HR1933PLC000097 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
RTKS05672C |
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PAN No.: [Permanent Account No.] |
AAACT5540K |
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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
: |
Manufacture of Process Plant Equipments, Mechanical and Hydraulic Presses and Castings, Contract Manufacturing and execution of projects for setting up Boilers, Sugar Plants and EPC Power Plants. |
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No. of Employees
: |
2300 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 25900000 |
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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 which resulting into dip in
profit of the company during financial year 2014. However, the rating reflects company’s established position in the
capital goods industry supported by its diversified product as well as
customer mix and decent liquidity profile of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. 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
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to political
corruption. High inflation, poor standard of living are to a great extent a
result of rampant corruption in the country. China on the other hand, seems to
be facing diametrically opposite challenge. American hedge fund manager Jim
Chanos has been keenly following the political and economic development in the
dragon economy and has figured out something that is quite worrying. He is of
the view that the Chinese economy could be heading toward trouble on account of
new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes tat many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
AA – [Fund Based Limits] |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
March 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
A1 + [Non Fund Based Limits] |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
March 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. Sanjay Kumar |
|
Designation : |
D. G. M. Accounts |
|
Contact No.: |
91-120-4085414 |
|
Date : |
11.09.2014 |
LOCATIONS
|
Registered Office : |
Radaur Roadyamuna Nagar –
135001, Haryana, India |
|
Tel. No.: |
91-1732-307210 / 217 |
|
Fax No.: |
91-1732-250991 / 250250 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office
: |
A-4, Sector-24, Noida – 201 301, |
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Tel. No.: |
91-120-2411289/ 2411290 |
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Fax No.: |
91-120-2412250 |
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|
|
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Factory : |
·
Saraswati Corporate Centre, Yamuna Nagar – 135
001, Haryana, India ·
Indian Sugar and General Engineering Corporation,
Yamuna Nagar, Haryana, India. ·
ISGEC John Thompson, Kolkata, West Bengal, India ·
Uttar Pradesh Steels, Muzaffar Nagar, Uttar
Pradesh, India |
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Plant Location : |
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Branch Office : |
Chennai ‘ Tel No.:
91-44-28297957/28297351 Fax No.:
91-44-28297375 Email ID: isgec@vsnl.com Mumbai ‘ Tel No.:
91-22-22662374/22665154 Fax No.:
91-22-22661899 Email ID: isgecbom@vsnl.com Also Located at
:
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International
Office : |
USA 2283 Country Club Drive, Pittsburgh, PA-15241, USA Tel. : +1-412-835-5333 Fax.: +1-412-835-5336 E-mail:
ashi@isgec.com
Kreiten Strasse 25, 40470 Dusseldorf, Germany Tel.: +49-211-271-63 00
Fax. +49-211-271-63 01 E-mail: vchadha@isgec.com |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Ranjit Puri |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
04.03.1940 |
|
Qualification : |
B.Sc. Industrial Management from Massachusetts Institute of Technology (USA) |
|
Date of Appointment : |
14.10.1981 |
|
|
|
|
Name : |
Mr. Vinod K. Nagpal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Tahir Hasan |
|
Designation : |
Director |
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Date of Birth/Age : |
21.07.1946 |
|
Qualification : |
B.E. (Mech.) |
|
Date of Appointment : |
29.01.2005 |
|
|
|
|
Name : |
Mr. Vinod Kumar Sachdeva |
|
Designation : |
Director |
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|
Name : |
Mr. Arun Kathpalia |
|
Designation : |
Director |
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|
Name : |
Mrs. Nina Puri |
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Designation : |
Whole Time Director |
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|
Name : |
Mr. Aditya Puri |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. S.K. Khorana |
|
Designation : |
Executive Director and Company Secretary |
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|
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|
Audit Committee: |
Mr. Vinod K. Nagpal – Chairman Mr. Arun Kathpalia Mr. Aditya Puri |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2014
|
Category of Shareholders |
Number
of shares |
Percentage
of holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1131962 |
15.39 |
|
|
3436823 |
46.74 |
|
|
4568785 |
62.14 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
4568785 |
62.14 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
32349 |
0.44 |
|
|
2420 |
0.03 |
|
|
1000 |
0.01 |
|
|
51301 |
0.70 |
|
|
87070 |
1.18 |
|
|
|
|
|
|
576625 |
7.84 |
|
|
|
|
|
|
1019152 |
13.86 |
|
|
1101319 |
14.98 |
|
|
2697096 |
36.68 |
|
Total Public shareholding (B) |
2784166 |
37.86 |
|
Total (A)+(B) |
7352951 |
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) |
7352951 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Process Plant Equipments, Mechanical and
Hydraulic Presses and Castings, Contract Manufacturing and execution of projects
for setting up Boilers, Sugar Plants and EPC Power Plants. |
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Products : |
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Exports : |
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Countries : |
Thailand |
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Imports : |
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Countries : |
China |
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Terms : |
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Selling : |
Cash, Cheque and credit |
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Purchasing : |
Cash, Cheque and credit |
GENERAL INFORMATION
|
No. of Employees : |
2300 (Approximately) |
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Bankers : |
· State Bank of Patiala · Corporation Bank · State Bank of India · Punjab National Bank · Standard Chartered Bank · ICICI Bank Limited · State Bank of Mysore · State Bank of Hyderabad · The Hongkong and Shanghai Banking Corporation Limited · IndusInd Bank Limited · State Bank of Travancore · Export Import Bank of India · ING Vysya Bank Limited · State Bank of Bikaner and Jaipur · Yes Bank Limited · HDFC Bank Limited ·
Citi Bank N. A. |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
S.S. Kothari Mehta and Company Chartered Accountants |
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|
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|
Subsidiaries 100% Share holding |
·
Saraswati Sugar Mills Limited ·
ISGEC Covema Limited ·
ISGEC Exports Limited ·
ISGEC Engineering and Projects Limited |
|
|
|
|
Joint Venture with 51 % share holding |
·
ISGEC Hitachi Zosen Limited |
|
|
|
|
Entities over which Directors and their relatives can exercise
significant influence |
·
Yamuna Syndicate Limited ·
Kamla Puri Charitable Trust ·
Kamla Puri Charitable Foundation ·
Blue Water Enterprises |
CAPITAL STRUCTURE
As on: 11.02.2014
Authorized Capital: Rs. 85.000 Millions
Issued, Subscribed & Paid-up Capital: Rs. 73.695 Millions
As on: 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8500000 |
Equity Shares |
Rs.10/- each |
Rs. 85.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7352951 |
Equity Shares |
Rs.10/- each |
Rs. 73.529
Millions |
|
|
|
|
|
THE RIGHTS,
PREFERENCES AND RESTRICTIONS ATTACHING TO EACH CLASS OF SHARES INCLUDING RESTRICTIONS
ON THE DISTRIBUTION OF DIVIDENDS AND THE REPAYMENT OF CAPITAL ARE AS UNDER:
The Company has only one class of equity shares having a par value of ` 10 per share. Each shareholder is entitled to one vote per share. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive the remaining assets of the company, after distribution of all the preferential amounts. The distribution will be in proportion to the number of equity shares held by each of the equity share holders.
b) Reconciliation of the number
of shares and amount outstanding at the beginning and at the end of the
reporting year:
|
Particulars |
31.03.2014 |
|
|
Number of Shares |
Amount |
|
|
Equity shares outstanding at the beginning of the year |
7369540 |
73.695 |
|
Add: Issued during the year |
-- |
-- |
|
Less: Shares bought back |
16589 |
0.166 |
|
Equity shares outstanding at the close of the year |
7352951 |
73.529 |
I Detail of Shares held by each shareholder holding more than 5% Shares:
|
Particulars |
31.03.2014 |
|
|
Class of shares/Name of the shareholders: |
Number of Shares |
% holding in
that class of shares |
|
Equity shares with voting rights |
|
|
|
Yamuna Syndicate Limited |
3297446 |
44.85 |
|
Ranjit Puri (individually and/ or jointly with others) |
659201 |
8.97 |
|
Aditya Puri (individually and/ or jointly with others) |
456808 |
6.21 |
|
Ranjan Tandon (individually and/ or jointly with others) |
438900 |
5.97 |
(d) 40 Equity shares of Rs. 10/- each are yet to be allotted by way of
Bonus Shares on receipt of fractional certificates, value of which has been shown
under capital reserve.
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 (6 Months) |
30.09.2013 |
30.09.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
73.529 |
73.695 |
73.695 |
|
(b) Reserves & Surplus |
6407.487 |
6019.780 |
4742.593 |
|
(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) |
6481.016 |
6093.475 |
4816.288 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
705.218 |
903.790 |
1025.546 |
|
(b) Deferred tax liabilities (Net) |
196.525 |
187.004 |
67.655 |
|
(c) Other long
term liabilities |
1043.152 |
1035.501 |
1071.204 |
|
(d) long-term
provisions |
1327.434 |
1268.872 |
765.328 |
|
Total Non-current
Liabilities (3) |
3272.329 |
3395.167 |
2929.733 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
2777.679 |
1860.481 |
511.143 |
|
(b)
Trade payables |
7446.127 |
6317.429 |
5033.115 |
|
(c)
Other current liabilities |
5094.443 |
5728.458 |
6064.314 |
|
(d) Short-term
provisions |
536.548 |
586.611 |
896.482 |
|
Total Current
Liabilities (4) |
15854.797 |
14492.979 |
12505.054 |
|
|
|
|
|
|
TOTAL |
25608.142 |
23981.621 |
20251.075 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible
assets |
3607.632 |
3731.753 |
2625.834 |
|
(ii)
Intangible Assets |
532.897 |
549.425 |
388.833 |
|
(iii)
Capital work-in-progress |
272.260 |
82.056 |
446.872 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1265.581 |
1265.580 |
723.080 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
135.122 |
123.782 |
57.519 |
|
(e) Other
Non-current assets |
16.636 |
200.307 |
12.834 |
|
Total Non-Current
Assets |
5830.128 |
5952.903 |
4254.972 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
1403.267 |
2071.418 |
1883.015 |
|
(b)
Inventories |
4184.912 |
3331.187 |
4530.009 |
|
(c)
Trade receivables |
7867.982 |
7614.956 |
6313.081 |
|
(d) Cash
and cash equivalents |
3906.134 |
3332.869 |
1474.780 |
|
(e)
Short-term loans and advances |
2200.345 |
1610.537 |
1771.964 |
|
(f)
Other current assets |
215.374 |
67.751 |
23.254 |
|
Total
Current Assets |
19778.014 |
18028.718 |
15996.103 |
|
|
|
|
|
|
TOTAL |
25608.142 |
23981.621 |
20251.075 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 (6 Months) |
30.09.2013 |
30.09.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14404.385 |
25126.341 |
23591.930 |
|
|
|
Other Income |
233.874 |
426.070 |
235.477 |
|
|
|
TOTAL (A) |
14638.259 |
25552.411 |
23827.407 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2564.451 |
3884.028 |
5697.857 |
|
|
|
Purchases of Stock-in-Trade |
6466.812 |
9302.314 |
9547.788 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(579.690) |
1266.341 |
(658.508) |
|
|
|
Employees benefits expense |
1034.830 |
1919.234 |
1631.918 |
|
|
|
Other expenses |
2736.321 |
5304.421 |
4379.135 |
|
|
|
Erection and Civil Cost |
1303.888 |
2061.550 |
1591.907 |
|
|
|
TOTAL (B) |
13526.612 |
23737.888 |
22190.097 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1111.647 |
1814.523 |
1637.310 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
130.381 |
225.023 |
178.254 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
981.266 |
1589.500 |
1459.056 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
278.679 |
541.639 |
380.937 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
702.587 |
1047.861 |
1078.119 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
240.064 |
323.660 |
326.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
462.523 |
724.201 |
751.219 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4420.091 |
3842.005 |
3285.364 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
46.252 |
72.420 |
70.040 |
|
|
|
Dividend |
51.471 |
73.695 |
73.695 |
|
|
|
Tax on Dividend |
8.747 |
0.000 |
0.000 |
|
|
|
Transfer To Capital Redemption Reserve |
0.166 |
0.000 |
0.000 |
|
|
|
Paid for Buyback of Equity Shares |
14.598 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
4761.380 |
4420.091 |
3842.005 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4889.333 |
11287.070 |
10592.454 |
|
|
TOTAL EARNINGS |
4889.333 |
11287.070 |
10592.454 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
551.933 |
516.731 |
1218.790 |
|
|
|
Stores & Spares |
201.427 |
152.325 |
194.996 |
|
|
|
Capital Goods |
58.150 |
141.289 |
558.899 |
|
|
|
Others |
202.695 |
75.887 |
0.000 |
|
|
TOTAL IMPORTS |
1014.205 |
886.232 |
1972.685 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
62.78 |
98.27 |
95.04 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars (Rs.
Millions) |
|
|
|
Jun 2014 |
|
Audited / UnAudited |
|
|
|
UnAudited |
|
Net Sales |
|
|
|
7027.600 |
|
Total Expenditure |
|
|
|
6534.700 |
|
PBIDT (Excl OI) |
|
|
|
492.900 |
|
Other Income |
|
|
|
116.500 |
|
Operating Profit |
|
|
|
609.400 |
|
Interest |
|
|
|
64.700 |
|
Exceptional Items |
|
|
|
0.000 |
|
PBDT |
|
|
|
544.700 |
|
Depreciation |
|
|
|
162.900 |
|
Profit Before Tax |
|
|
|
381.800 |
|
Tax |
|
|
|
129.800 |
|
Provisions and contingencies |
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
252.000 |
|
Extraordinary Items |
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
0.000 |
|
Net Profit |
|
|
|
252.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 (6 Months) |
30.09.2013 |
30.09.2012 |
|
PAT / Total Income |
(%) |
3.16 |
2.83 |
2.59 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.88 |
4.17 |
3.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.92 |
4.63 |
5.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.17 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.54 |
0.45 |
0.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.25 |
1.24 |
1.26 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
30.09.2012 |
30.09.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
73.695 |
73.695 |
73.529 |
|
Reserves & Surplus |
4742.593 |
6019.780 |
6407.487 |
|
Net worth |
4816.288 |
6093.475 |
6481.016 |
|
|
|
|
|
|
long-term borrowings |
1025.546 |
903.790 |
705.218 |
|
Short term borrowings |
511.143 |
1860.481 |
2777.679 |
|
Total borrowings |
1536.689 |
2764.271 |
3482.897 |
|
Debt/Equity ratio |
0.319 |
0.454 |
0.537 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
30.09.2012 |
30.09.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
23591.930 |
25126.341 |
14404.385 |
|
|
|
6.504 |
(42.672) |
NET PROFIT MARGIN
|
Net Profit Margin |
30.09.2012 |
30.09.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
23591.930 |
25126.341 |
14404.385 |
|
Profit |
751.219 |
724.201 |
462.523 |
|
|
3.18% |
2.88% |
3.21% |
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 |
UNSECURED LOAN
|
Particulars |
As on 31.03.2014 |
As on 31.09.2013 |
|
|
(Rs. In Millions) |
|
|
LONG TERM
BORROWINGS: |
|
|
|
DEPOSITS |
|
|
|
Public |
169.771 |
158.608 |
|
Shareholders |
33.798 |
38.584 |
|
SHORT TERM
BORROWINGS: |
|
|
|
DEPOSITS |
|
|
|
Public |
1.232 |
1.627 |
|
Shareholders |
0.071 |
0.311 |
|
Packing credit loan from bank |
650.000 |
800.00 |
|
Total |
854.872 |
999.130 |
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10478026 |
21/01/2014 |
989,000,000.00 |
THE HONGKONG AND
SHANGHAI BANKING CORPORATION LIMI |
PLOT NO
139-140B,SHIV BUILDING,SAHAR ROAD JUNCTION, WESTERN EXPRESSWAY HIGHWAY, VILE
PARLE - EAST, |
B96575691 |
|
2 |
10349516 |
03/01/2013 * |
989,000,000.00 |
HSBC BANK (MAURITIUS) LIMITED |
6TH FLOOR, 18, CYBERCITY, EBENE, - 000000, MAURITIUS |
B66909698 |
|
3 |
10246065 |
22/05/2012 * |
250,000,000.00 |
AXIS BANK LTD. |
2ND FLOOR,
STATESMAN HOUSE, 148, BARAKHAMBA ROAD, |
B42631622 |
|
4 |
10229371 |
29/06/2011 * |
576,000,000.00 |
STANDARD CHARTERED
BANK (ACTING AS AN SECURITY AGE |
CREDIT RISK
CONTROL, NARAIN MANZIL, 23 BARAKHAMBA |
B15411275 |
|
5 |
10121002 |
21/08/2013 * |
28,000,000,000.00 |
STATE BANK OF PATIALA (LEAD BANK) |
COMMERCIAL BRANCH,, CHANDRALOK BUILDING, 36, JANPATH ,, NEW DELHI - 110001, DELHI, INDIA |
B85582294 |
OPERATIONS:
·
Economic conditions continue to be depressed
both in India and overseas. The Company, however, due to its
·
Intensive efforts in marketing, technology
up-gradation and cost control, has been able to achieve reasonable growth.
·
The order booking at the close of the period
was at record level yet again.
·
All the Divisions continue to focus on the export
market. In addition to booking repeat orders from the existing customers, the
Company has extended its reach to new countries and new customers.
·
The Boiler Division of the Company has
ventured into new products such as Heat Recovery Steam Generators, Waste Heat
Recovery Boilers and Pin Hole Grate Boilers. The Division has also ventured
into Repair & Maintenance business for the first time.
·
The first domestic order for Pulverized Coal
fired Boiler is likely to be commissioned on time.
·
Similarly, the first Electrostatic
Precipitator designed in accordance with the technology acquired from
Envirotherm GmbH, Germany, will start operating shortly.
·
The domestic market for the Sugar Machinery
Division continues to be bad. The Division could maintain its
·
Market share. The Division succeeded in
booking large orders from the overseas market.
·
The Division successfully commissioned its
largest Sugar Mills of the size of 1150 mm x 2290 mm (45" x 90"). The
Division also successfully commissioned a sugar refinery for the first time
during the period and also secured a further order for a sugar refinery.
·
After setting up many Turnkey Power Plants
based on coal, the Engineering Procurement & Construction
·
Division of the Company has, in consortium
with Hitachi Zosen Limited, Japan, secured its first order for
·
Waste to Energy Power Plant Project.
·
The Automobile and Automobile Components
manufacturing sector, major consumer of Presses produced by the Machine
Building Division, faced further slowdown during the period. This affected the
order booking of this Division.
·
The Division has established itself
successfully in the business of high end Transfer Presses in the overseas
market. This year the Division was successful in getting orders for such
Transfer Presses from the Indian market also.
·
A prototype Vertical Turning Lathes was
successfully manufactured in accordance with drawings and the brand “Morando”
bought by the Company. The machine is being shown to various customers and the
Company is hopeful to have breakthrough in this activity.
·
In the last year’s Directors’ Report of the
Company the Directors stated that the Process Equipment Division secured orders
for Feed Water Heaters & Surface Condensers and Breach Lock Exchangers.
These orders are under advanced stage of completion and the Division hope to
supply these equipment’s on time.
·
Securing these orders has helped diversify
the activities of this Division to the Power Sector and has compensated for the
depressed conditions in the Refining and Petrochemical Sectors.
·
The Container sub-division of the Process
Equipment Division has had a record billing and order booking during the period
including large export orders.
·
Consequent to the slowdown in the market for
large power plants, the ISGEC Casting Unit which used to supply significant
portion of its output to Turbine manufacturers, suffered badly. The Unit
diversified into new products, such as castings for Pumps and Valve Sectors.
Very lately the Unit has secured good orders and the order book is
satisfactory. The future, however, remains uncertain.
MANAGEMENT DISCUSSION & ANALYSIS
·
There was growth in turnover, revenue,
margins and order bookings during the period.
·
Input prices remained stable during most of
the period. They have started to go up during the last few months.
·
The expected increase in the industrial
activity, due to the new Government taking over, is likely to benefit the
Company. The appreciation of Indian currency will, however, affect the
competitiveness of the Company in exports which now form a significant portion
of its turnover.
·
The Management continues to make aggressive
efforts to up-grade technology and diversify the activities of various Units.
·
Certain businesses may continue to be
affected due to severe slowdown in sectors such as Automobile, Oil &
Refinery and Power sectors.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND THREE MONTHS ENDED
30TH JUNE, 2014
|
Sr. No. |
Particulars |
Rs in Millions |
||
|
3 Months ended |
||||
|
as on 30.06.2014 |
||||
|
(Unaudited) |
||||
|
1 |
(a) Net Sales/Income from Operations |
6628.600 |
||
|
|
(b)Other Operating Income |
399.000 |
||
|
|
Total Income
From Operations (Net) |
7027.600 |
||
|
2 |
Expenditure |
|
||
|
|
(a) |
Cost of Materials Consumed |
1176.100 |
|
|
|
(b) |
Purchases of Stock-in-Trade |
3655.100 |
|
|
|
(c) |
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(487.200) |
|
|
|
(d) |
Employees benefits expense |
521.800 |
|
|
|
(e) |
Depreciation and amortization expense |
162.900 |
|
|
|
|
Erection and commissioning expenses |
506.300 |
|
|
|
(f ) |
Other expenses |
1162.600 |
|
|
|
|
TOTAL (B) |
6697.600 |
|
|
|
|
|
||
|
3 |
Profit from operation before other income, interest and other
exceptional items(1-2) |
330.000 |
||
|
4 |
Other Income |
116.500 |
||
|
5 |
profit before interest and exceptional items(3+4) |
446.500 |
||
|
6 |
Interest |
64.700 |
||
|
7 |
Profit after interest but before exceptional items(5-6) |
381.800 |
||
|
8 |
Exceptional Items |
-- |
||
|
9 |
Profit(+)/Loss(-) from Ordinary Activities before tax (7-8) |
381.800 |
||
|
10 |
Tax Expenses |
129.800 |
||
|
11 |
Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10) |
252.000 |
||
|
12 |
Extra Ordinary Items |
-- |
||
|
13 |
Net Profit(+)/Loss(-) for the period (1112) |
252.000 |
||
|
14 |
Paid-up Equity Share Capital Rs.10/ per share |
73.500 |
||
|
15 |
Reserves excluding revaluation reserves |
|
||
|
16 |
Earning Per
Share |
|
||
|
(a) |
Basic and diluted EPS before Extraordinary items for the period, for
the year to date and for the previous year(not to be annualised) |
34.27 |
||
|
(b) |
Basic and diluted EPS after
Extraordinary items for the period, for the year to date and for the previous
year(not to be annualised) |
34.27 |
||
|
17 |
Public
Shareholding |
|
||
|
|
Number of Shares |
2784166 |
||
|
|
Percentage of Shareholding |
37.86 |
||
|
18 |
Promoters and Promoter group |
|
||
|
|
a) Pledged/Encumbered |
|
||
|
|
Number of shares |
--- |
||
|
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
--- |
||
|
|
Percentage of Shares (as a % of the total share capital of the
Company) |
--- |
||
|
|
b) Non-encumbered |
|
||
|
|
Number of shares |
4568785 |
||
|
|
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
100.00 |
||
|
|
Percentage of Shares (as a % of the total share capital of the
Company) |
62.14 |
||
|
|
Particulars |
3 months ended 30.06.2014 |
||
|
|
INVESTOR
COMPLAINTS |
|
||
|
|
Pending at the beginning of the quarter |
NIL |
||
|
|
Received during the quarter |
NIL |
||
|
|
Disposed off during the quarter |
NIL |
||
|
|
Remaining unresolved at the end of the quarter |
NIL |
||
|
Notes: |
|
1.
The Company has only one segment of engineering
business. Hence segment reporting is not applicable. 2.
As per the requirement of the Schedule II of the
Companies Act 2013 w.e.f. 1st April 2014, the Company has charged
depreciation based on revised remaining useful life of the assets. Due to
this, depreciation charge for the quarter ended 30th June, 2014 is higher by
Rs. 247 lacs. Further, an amount of Rs. 380 lacs 3.
(Net of deferred tax) has been adjusted against
the opening balance of Retained Earnings as on that date in respect of
residual value of Assets wherein the remaining useful life has become
"Nil" 4.
The above results are reviewed by the Audit
Committee in its meeting held on 2nd August, 2014 and approved by the Board
of Directors of the Company in its meeting held on 4th August, 2014 and have
been subjected to a "Limited Review" by the Statutory Auditors. 5.
6.
The Company has changed its Financial Year ending
on 30th September to ending on 31st March. Accordingly Previous Financial
Year figures are for six months period from 1st October, 2013 to 31st march,
2014. 7.
Figures have been regrouped/rearranged wherever
necessary |
FIXED ASSETS:
· Land
·
Building
and Road
·
Plant
and Machinery
·
Furniture
and Fixture
·
Vehicles
·
Technical
Know-how
·
Office
Equipment
·
Live
Stock
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 judgment or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration:
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration:
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws:
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards:
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government:
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package:
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report:
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.84 |
|
|
1 |
Rs.98.72 |
|
Euro |
1 |
Rs.78.64 |
INFORMATION DETAILS
|
Information
Gathered by : |
DPA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
JAY |
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 |
5 |
|
--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 |
|
60 |
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.