MIRA INFORM REPORT

 

 

Report No. :

302721

Report Date :

12.01.2015

 

IDENTIFICATION DETAILS

 

Name :

ELECON ENGINEERING COMPANY LIMITED

 

 

Registered Office :

Anand, Sujitra Road, Vallabh Vidyanagar – 388120, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

11.01.1960

 

 

Com. Reg. No.:

04-001082

 

 

Capital Investment / Paid-up Capital :

Rs.217.872 Millions

 

 

CIN No.:

[Company Identification No.]

L29259GJ1960PLC001082

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDE00200E

 

 

PAN No.:

[Permanent Account No.]

AAACE4644D

 

 

Legal Form :

A Public Limited Liability Company.  The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Exporter of Material Handling Equipment’s.

 

 

No. of Employees :

648 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (65)

 

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 14000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist 

 

 

Comments :

Subject is an established company having fine track.

 

Financial position of the company seems to be sound.

 

Trade relations are reported as fair. Business is active. Payment terms are reported to be regular and as per commitments.

 

The company can be considered normal for 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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities = A+

Rating Explanation

Have adequate degree of safety and carry low credit risk

Date

13.10.2014

 

 

Rating Agency Name

CARE

Rating

Short Term Bank Facilities = A1+

Rating Explanation

Have very strong degree of safety and carry lowest credit risk

Date

13.10.2014

 

 

RBI DEFAULTER’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTER’ 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.

 

 

LOCATIONS

 

Registered / Corporate Office :

Anand, Sujitra Road, Vallabh Vidyanagar – 388120, Gujarat, India

Tel. No.:

91-2692-238701 / 02 / 03 / 04 / 227109 / 230166

Mobile No.:

91-9909917150 (Mr. Hemendra C. Shah)

Fax No.:

91-2692-227484 / 227020 / 227484

E-Mail :

pmshukla@mhe.elecon.com

infogear@elecon.com

Website :

www.elecon.com

http://www.elecon.co.in

Area :

25000 Sq. Ft

Location :

Owned

 

 

Factory 1:

Gear Division

 

Anand – Sojitra Road, Vallabh Vidyanagar – 388120, Gujarat, India

 

 

Factory 2:

Alternate Energy Division

 

Anand – Sojitra Road, Vallabh Vidyanagar – 388120, Gujarat, India

 

 

Factory 3 :

Foundry Division

 

Post Box # 6, Vallabh Vidyanagar – 388120, Guajarati, India  

Tel. No.:

91-2692-236469 / 227546

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Prayasvin  B. Patel

Designation :

Chairman and Managing Director

Date of Birth/Age :

54 Years

Qualification :

B. E. (Mechanical), M.B.A. (U.S.A)

Experience :

36 Years

Date of Appointment :

01.07.1983

 

 

Name :

Mr. Prashant Amin

Designation :

Director

 

 

Name :

Mr. Pradip M. Patel

Designation :

Director

 

 

Name :

Mr. Chirayu R. Amin

Designation :

Director

 

 

Name :

Mr. Hasmuklal Parikh

Designation :

Director

 

 

Name :

Mr. Jal R. Patel

Designation :

Director

 

 

Name :

Mr. Jai S Diwanji

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Hemendra C. Shah

Designation :

Chief Financial Officer

 

 

Name :

Mr. Paresh M. Shukla

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

3176874

2.92

http://www.bseindia.com/include/images/clear.gifBodies Corporate

59165553

54.31

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

928492

0.85

http://www.bseindia.com/include/images/clear.gifTrusts

928492

0.85

http://www.bseindia.com/include/images/clear.gifSub Total

63270919

58.08

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

63270919

58.08

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

5646999

5.18

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

164859

0.15

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

278648

0.26

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

344013

0.32

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

0.000

0.000

http://www.bseindia.com/include/images/clear.gifSub Total

6434519

5.91

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

4718270

4.33

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 million

27235706

25.00

http://www.bseindia.com/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 million

4077865

3.74

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

3198564

2.94

http://www.bseindia.com/include/images/clear.gifClearing Members

1369612

1.26

http://www.bseindia.com/include/images/clear.gifMarket Maker

45374

0.04

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

950304

0.87

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

383063

0.35

http://www.bseindia.com/include/images/clear.gifTrusts

1000

0.00

http://www.bseindia.com/include/images/clear.gifDirectors & their Relatives & Friends

449211

0.41

http://www.bseindia.com/include/images/clear.gifSub Total

39230405

36.01

Total Public shareholding (B)

45664924

41.92

Total (A)+(B)

108935843

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

108935843

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Material Handling Equipments.

 

 

Products :

Material Handling Equipment’s

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

 

Selling :

Not Available

 

 

Purchasing :

Not Available

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

Customers :

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

No. of Employees :

648 (Approximately)

 

 

Bankers :

Banker Name

State Bank of India

Branch Address

Not Available

Person Name (With Designation)

Not Available

Contact Number

Not Available

Name of Account Holder

Not Available

Account Number

Not Available

Account Since (Date/Year of Account Opening)

Not Available

Average Balance Maintained (If Possible)

Not Available

Credit Facilities Enjoyed (If any)

Not Available

Account Operation

Not Available

Remarks (If any)

Not Available
  • Bank of Baroda
  • EXIM Bank of India
  • Axis Bank Limited
  • HDFC Bank Limited
  • IDBI Bank Limited
  • Standard Chartered Bank

 

 

Facilities :

SECURED LOANS

31.03.2014

Rs. In Millions

31.03.2013

Rs. In Millions

Long Term Borrowings

 

 

11% Non-Convertible Debentures from Bank

250.000

250.000

Term Loans From Banks

405.399

650.530

Vehicle Loans From Banks

0.000

4.548

Short Term Borrowings

 

 

Loans Repayable on Demand

 

 

Working Capital Loans From Banks

1450.703

793.355

Total

2106.102

1698.433

 

Long Term Borrowings

 

(a) Nature of Securities

 

i)      11% Non Convertible Debentures [(a) above] is secured by subservient charge on the Fixed Assets of the Company.

 

ii)     Term Loans [(b) above] obtained from Indusind Bank Limited & DBS Bank Limited is secured by exclusive charge by way of hypothecation on specific assets for which payments were made out of the term loan.

 

Term Loans [(b) above] obtained from Axis Bank Limited is secured by exclusive charge by way of hypothecation on specific assets for which payments were made out of the term loan. Further collaterally secured by Second Pari Passu charges over Fixed Assets of the Company except those assets which are exclusively charged to Bank/FIs and Equitable Mortgage of existing Land bearing Survey No. 365 and 366 of village Karamsad.

 

Term Loans [(b) above] obtained from State Bank of India is secured by exclusive charge by way of hypothecation on specific assets for which payments were made out of the term loan and hypothecation of two wind turbine Generator at Mota  Gunda site, Dist. Jamnagar. Further collaterally secured by Hypothecation charge on all unencumbered Plant and Machinery of the Company, Corporate Guarantee of Emtici Engineering Limited, Pledge of 34150 Equity Shares of Eimco Elecon (I) Limited and 157850 Equity Shares of Elecon Engg. Co. Limited & Second charges over Plant & Machinery.

 

Term Loans [(b) above] obtained from Bank of Baroda is secured by Equitable Mortgage of Land, Building, Office Purchased at Manjusar, Ta. Savli were purchased out of the Term Loan & Second pari passu charge on entire current assets of the Company present and future.

 

iii)    Capital assets acquired on HP Loans from Banks [(c) above] are secured by exclusive charge on respective assets purchased through those loans.

 

 

(b) Terms of repayment of 11% Non-Convertible Debentures, Term Loans and Other Loans

 

Lender

31.03.2014

31.03.2013

Terms of Repayment

11% Non-Convertible Debentures

Corporation Bank

250.000

250.000

Repayment will be as under:-

 

·         30% at the end of 3rd year from the date of allotment

·         30% at the end of 4th year from the date of allotment

·         40% at the end of 5th year from the date of allotment

·         However, Put/Call option can be exercised on or before 22-Sep-2014.

Terms Loans

 

 

 

Indusind Bank Limited

112.891

188.152

Repayable in equated quarterly installments of Rs.17.527 Millions starting from November 2012.

DBS Bank Limited

219.406

344.781

Repayable in equated  quarterly installments of Rs.31.344 Millions starting from February 2013

State Bank of India

24.305

41.565

Repayable in equated quarterly installments of Rs.3.966 Millions starting from September 2008, Repayable in equated quarterly installments of Rs.1.400 Millions starting from June 2009, Repayable in equated quarterly installments of Rs.3.715 Millions starting from March 2012.

(iv) Bank of Baroda

48.797

70.829

Repayable in equated monthly installments of Rs.0.637 Million starting from March 2013, Repayable in equated monthly installments of Rs.1.400 Millions starting from May 2012.

(v) Axis Bank Limited

0.000

5.203

Repayable in equated monthly installments of Rs.0.432 Millions starting from February 2011.

Vehicle Loans

 

 

 

HDFC Bank Limited

0.000

0.808

Repayable in equated monthly installments

Kotak Mahindra Prime Limited

0.000

3.740

Repayable in equated monthly installments

 

Short Term Borrowings

 

i)              Nature of Securities {(a) Loans repayable on demand}

 

Working Capital Loans from banks (secured) granted by Consortium of Banks consisting of State Bank of India (As Lead Bank), Bank of Baroda, Exim Bank, HDFC Bank Limited, IDBI Bank Limited, Axis Bank Limited and Standard Chartered Bank are secured by an equitable mortgage on the immovable properties and hypothecation of movable plant and machinery and assets of the Company’s Materials Handling Equipment Division and Gear Division excluding certain assets specifically / exclusively charged to other banks/ financial institutions but including the whole of the Company’s currents assets, inventories, receivables and book debts ranking pari passu inter se in respect of working capital facilities and guarantees issued by them in favour of various clients of the Company.

 

Fund based and Non- fund based Working Capital facilities granted by multiple banks consisting of Axis Bank Limited and Bank of Baroda are secured against hypothecation of entire current assets including stocks and book debts, both present as well as future, and second pari passu charge on fixed assets (excluding factory shed, office building and roads) of the Company present and future. The working capital limits with Axis Bank Limited are further collaterally secured by second pari pasu charge over Fixed Assets of the Company except those assets which are exclusively charged to Bank/FIs and equitable mortgage of existing Land bearing Survey No.365 and 366 of village Karamsad.

 

Auditors :

 

Name :

Thacker Butala Desai

Chartered Accountants

Address :

Navsari, Gujarat, India

 

 

Subsidiary Company :

  • Elecon EPC Projects Limited
  • Elecon Transmission International Limited, Mauritius
  • Elecon Singapore Pte. Limited
  • Elecon Middle East FZCO

 

 

Step Down Subsidiaries :

  • Benzlers Systems AB, Sweden
  • Radicon Transmission UK Limited, U.K.
  • AB Benzlers, Sweden
  • Elecon USA Transmission Limited, USA
  • Benzlers Transmission A.S., Denmark
  • Benzlers Antriebstechnik GmbH, Germany
  • Benzlers TBA B.V., Netherlands
  • Benzlers Antriebstechnik Gesmbh, Austria
  • OY Benzlers AB, Finland
  • Benzlers SDN BDH Malaysia
  • Benzlers Italia s.r.l.

 

 

Associates and Joint Ventures :

  • Eimco Elecon (India) Limited (Joint Venture)
  • Elecon Australia Pty. Limited (Associate)
  • Elecon Africa Pty. Limited (Associate)
  • Elecon Engineering (Suzhou) Co. Limited, China (Associate)
  • Elecon Peripherals Limited (Associate)

 

 

Enterprises over which (d) or (e) above have significant influence :

  • Bipra Investments and Trusts Private Limited
  • Devkishan Investments Private Limited
  • K. B. Investments Private Limited
  • Elecon Information Technology Limited
  • Emtici Engineering Limited
  • Prayas Engineering Limited
  • Specialty Wood Pack Private Limited
  • Power Build Limited
  • Kirloskar Power Build Gears Limited
  • Akaaish Mechatronics Limited
  • Madhubhan Prayas Resorts Limited
  • Wizard Fincap Limited
  • Eimco Elecon Electricals Limited
  • Excel EPC Projects Private Limited

 

 

CAPITAL STRUCTURE

 

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

225000000

Equity Shares

Rs.2/- each

Rs.450.000 Millions

25000000

Cumulative Redeemable Preference Shares

Rs.2/- each

Rs.50.000 Millions

 

Total

 

Rs.500.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

92861510

Equity Shares

Rs.2/- each

Rs.185.723 Millions

 

Share Suspense Account

 

Rs.32.149 Millions

 

Total

 

Rs.217.872 Millions

 

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

 

Equity Shares

Number of Shares

Outstanding at the beginning of the Year

92861510

Add : Issued During the year

--

Outstanding at the end of the Year

92861510

 

Rights, Preferences and Restrictions attached to Equity Shares:

 

The Company has only one class of Equity Shares having a par value of Rs.2/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

 

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

 

Details of equity shares held by shareholders holding more than 5% shares:

 

Name of Shareholder

Number of Shares

% holding

Emtici Engineering Limited

26775669

24.58%

Prayas Engineering Limited

11166394

10.25%

K. B. Investments Private Limited

100851125

9.25%

 

 

Aggregate number of equity shares allotted as fully paid up pursuant to contract without payment being received in cash Bonus Shares issued and shares bought back during the period of 5 years immediately preceding the financial year:-

 

Equity Shares

Number of Shares

Equity Shares allotted as fully paid up bonus shares by

capitalization of Share Premium and Reserve

61907673

Equity Shares allotted as fully paid up on conversion of FCCB of Series ‘A’ 9,000 nos. of $ 1,000 each.

2716787

Equity Share allotted as fully paid up shares by virtue of schemes of arrangement

16074333

 

 

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

217.872

217.872

185.723

(b) Reserves & Surplus

4,699.070

4,543.499

4,262.011

(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)

4,916.942

4,761.371

4,447.734

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

655.399

931.483

1,068.747

(b) Deferred tax liabilities (Net)

391.048

416.079

446.728

(c) Other long term liabilities

10.677

9.979

198.405

(d) long-term provisions

19.606

25.095

39.745

Total Non-current Liabilities (3)

1,076.730

1,382.636

1,753.625

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1,662.371

1,180.527

3,660.374

(b) Trade payables

2,085.603

2,531.044

4,547.505

(c) Other current liabilities

730.335

775.067

2,160.441

(d) Short-term provisions

152.167

161.532

223.946

Total Current Liabilities (4)

4,630.476

4,648.170

10,592.266

 

 

 

 

TOTAL

10,624.148

10,792.177

16,793.625

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3,679.857

4,067.723

3,986.304

(ii) Intangible Assets

58.472

40.253

65.560

(iii) Capital work-in-progress

67.090

77.888

417.137

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

370.688

370.688

351.100

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

414.775

239.691

273.906

(e) Other Non-current assets

7.959

7.959

597.934

Total Non-Current Assets

4,598.841

4,804.202

5,691.941

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1,212.503

1,486.515

2,881.508

(c) Trade receivables

1,686.205

1,412.416

7,282.981

(d) Cash and cash equivalents

43.604

74.942

115.955

(e) Short-term loans and advances

138.609

738.465

781.067

(f) Other current assets

2,944.386

2,275.637

40.173

Total Current Assets

6,025.307

5,987.975

11,101.684

 

 

 

 

TOTAL

10,624.148

10,792.177

16,793.625

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

5,012.319

5952.070

13,316.719

 

 

Other Income

175.537

111.083

74.279

 

 

TOTAL                                     (A)

5,187.856

6,063.153

13,390.998

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

1,951.295

2,784.101

7,771.332

 

 

Changes in inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

269.737

232.360

70.731

 

 

Manufacturing expenses and Erection charges

481.593

534.759

960.302

 

 

Employee benefits expense

432.183

545.413

730.881

 

 

Other expenses

876.814

828.335

1,756.011

 

 

Exceptional items

0.000

266.829

0.000

 

 

TOTAL                                     (B)

4,011.622

5,191.797

11,289.257

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

1,176.234

871.356

2,101.741

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

332.478

300.816

579.581

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

843.756

570.540

1,522.160

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

454.222

419.888

423.808

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

389.534

150.652

1,098.352

 

 

 

 

 

Less

TAX                                                                  (H)

115.236

65.402

402.360

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

274.298

85.250

695.992

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

192.409

244.609

242.884

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

50.000

10.000

500.000

 

 

Dividend

108.936

108.936

167.151

 

 

Tax on Dividend

9.791

18.514

27.116

 

BALANCE CARRIED TO THE B/S

297.980

192.409

244.609

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Reduction Gears

598.894

589.888

366.234

 

 

Servicing Income

1.120

1.189

85.433

 

TOTAL EARNINGS

600.014

591.077

451.667

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

36.097

451.733

560.726

 

 

Stores & Spares

36.907

34.693

35.808

 

 

Capital Goods

5.584

191.982

658.051

 

TOTAL IMPORTS

78.588

678.408

1254.585

 

 

 

 

 

 

Earnings Per Share (Rs.)

            2.52

0.78

7.49

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

5.29

1.41

5.20

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

7.77

2.53

8.25

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.82

1.46

6.85

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.08

0.03

0.25

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.47

0.44

1.06

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.30

1.29

1.05

 

 

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

185.723

217.872

217.872

Reserves & Surplus

4262.011

4543.499

4699.070

Net worth

4447.734

4761.371

4916.942

 

 

 

 

long-term borrowings

1068.747

931.483

655.399

Short term borrowings

3660.374

1180.527

1662.371

Total borrowings

4729.121

2112.010

2317.770

Debt/Equity ratio

1.063

0.444

0.471

 

 

 

 

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

Sales

13,316.719

5,952.070

5,012.319

 

 

(55.304)

(15.789)

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

Rs. In Millions

Rs. In Millions

Rs. In Millions

Sales

13,316.719

5,952.070

5,012.319

Profit

695.992

85.250

274.298

 

5.23%

1.43%

5.47%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------

26]

Buyer visit details

----------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

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

 

 

HIGH COURT OF GUJARAT

 

CIVIL APPLICATION (STAMP NUMBER) (SCA AND SA) No. 5496 of 1993

In SPECIAL CIVIL APPLICATION/ 2925 / 1984 (DISPOSED) On : 21/11/1994

 

Status : PENDING

( Converted from : C/ST/2708/2014 )

CCIN No : 001005199305496

 

Last Listing Date:

Coram

 

S.NO.

Name of the Petitioner

Advocate On Record

1

2

 

3

4

UNION OF INDIA

THE COLLECTOR OF CUSTOMS AND CENTRAL

EXCISE

THE ASSTT. COLLECTOR OF CENTRAL EXCISE THE SUPERINTENDENT CENTRAL EXCISE

MR KETAN A DAVE for: Petitioner(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

 

 

S.NO.

Name of the Respondant

Advocate On Record

1

ELECON ENGINEERING COMPANY LIMITED

 

 

 

Presented On

: 16.03.1993

Registered On

: 16.03.1993

Bench Category

: DIVISION BENCH

District

: KHEDA

Case Originated From

:THROUGH HIS/HER/THEIR ADVOCATE

Listed

: 0 times

StageName

FOR ORDERS

OFFICE DETAILS

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15.08.1993

VAKALATNAMA

MR KETAN A DAVE for: Petitioner(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

4

MR KETAN A DAVE:1

 

 

UNSECURED LOAN:

 

Particulars

31.03.2014

Rs. In Millions

31.03.2014

Rs. In Millions

Long Term Borrowings

 

 

Other Loans

0.000

26.405

Short Term Borrowings

 

 

Working Capital Loans  From Banks  (Including Commercial Paper)

209.968

359.622

Other Loans From Related Parties

1.700

27.550

Total

211.668

413.577

 

Notes:

 

Lender

31.03.2014

31.03.2013

Terms of Repayment

Other Loans and Advances

 

 

 

SREI Equipment Finance Limited

0.000

26.405

Repayable in equated monthly installments.

 

 

REVIEW OF OPERATIONS

 

STANDALONE FINANCIAL PERFORMANCE

 

For the year ended on 31st March, 2014, the Company has achieved a Turnover of Rs.5012.319 Millions as against Rs.5952.070 Millions in the previous year, representing decrease in Turnover by 15.79%. The decline in turnover is because of slow down in Indian economy. For the year ended on 31st March, 2014, the Company has achieved Earnings before Interest (Finance Cost), Depreciation and Amortization and Tax (EBIDTA) of Rs.1176.234 Millions as against the EBIDTA of Rs.1138.185 Millions during the previous year, representing increase in EBIDTA by 3.34%. The Company holds total unexecuted orders worth Rs.2664.900 Millions. as on March 31, 2014. This will help us to continue to have sustainable growth in coming years.

 

FINANCIAL PERFORMANCE

 

During the financial year 2013 — 2014, the Company has achieved a Turnover of Rs.5012.319 Millions as against Rs.5952.070 Millions in the previous year. The decline in turnover is because of slow down in Indian economy. For the year ended on 31st March, 2014, the Company has achieved Earnings before Interest (Finance Cost), Depreciation & Amortization and Tax (EBIDTA) of Rs.1176.234 Millions as against the EBIDTA of Rs.1138.185 Millions during the previous year, representing increase in EBIDTA by 3.34%.

 

OUTLOOK

 

The strengthening of the recovery from the Great Recession in the advanced economies is a welcome development. But growth is not evenly robust across the globe, and more policy efforts are needed to fully restore confidence, ensure robust growth, and lower downside risks. Policymakers in advanced economies need to avoid a premature withdrawal of monetary accommodation.

 

The Global economy is expected to grow at a pace of 3.0 per cent in 2014 and 3.3 per cent in 2015, compared with an estimated growth of 2.1 per cent for 2013. According to the United Nations World Economic Situation and Prospects 2014 (WESP) report, inflation will remain tame worldwide, but the employment situation will continue to be challenging.

 

A few large emerging economies, including China and India, managed to backstop the deceleration they experienced in the past two years and veered upwards moderately. These factors point to increasing global growth. Global Industrial Gear Motors and Drives market to grow at a CAGR of 4.98 percent over the period 2012-2016. One of the key factors contributing to this market growth is the growth in the emerging markets. The Global Industrial Gear Motors and Drives market has also been witnessing the increased demand for precision geared products.

 

The investment demand in India will pick up gradually in 2014-15, as the Cabinet Committee on Investments (CCI) clears more and more projects. The land acquisition process becomes easy post implementation of the new Land Acquisition Act. Fast tracking of projects is expected to boost the construction activity in India, generate new employment and create fresh demand for items like cement, steel and machinery. Thus, the manufacturing sector is expected see a turnaround in 2014-15, registering a 2.8 per cent growth, as against a 0.5 per cent fall estimated for 2013-14. The Gear Manufacturing market in India has also been witnessing an increased outsourcing of manufacturing activities.

 

To put it in a nutshell, the growth of the Indian economy is expected to improve in 2014-15. But, the recovery will be mild and gradual.

 

 

UNAUDITED FINANCIAL RESULTS FOR THE THREE    QUARTER ENDED 30TH SEPTEMBER 2014

 (Rs. In Millions)

Particulars

Quarter Ended

( Unaudited)

Quarter Ended

( Unaudited)

Half Year Ended

( unaudited)

 

30.09.2014

30.06.2014

30.09.2014

1. Income from operations

 

 

 

a) Net sales/ Income from operation (net of excise duty)

1163.205

947.987

2111.192

b) Other operating income

14.974

11.245

26.219

Total income from Operations(net)

1178.179

959.232

2137.411

2.Expenditure

 

 

 

a. Cost of Material Consumed

627.055

563.288

1190.343

b. Purchase of Stock-in-trade

0.000

0.000

0.000

c. Changes in inventories of finished goods, work-in-progress and stock -in-trade

68.568

(43.401)

25.167

d. Employee benefits expense

99.502

89.241

188.743

e. Depreciation and Amortisation expense

106.197

139.915

246.112

f.  Other Expenses

191.072

174.032

365.104

Total expenses

1092.394

923.075

2015.469

3. Profit from operations before other income and financial costs

85.785

36.157

121.942

4. Other income

23.824

58.380

82.204

5. Profit from ordinary activities before finance costs

109.609

94.537

204.146

6. Finance costs

70.339

76.079

146.418

7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items

39.270

18.458

57.728

8. Exceptional item

0.000

0.000

0.000

9. Profit from ordinary activities before tax Expense:

39.270

18.458

57.728

10.Tax expenses

12.543

5.986

18.529

11.Net Profit / (Loss) from ordinary activities after tax (9-10)

26.727

12.472

39.199

12.Extraordinary Items (net of tax expense)

0.000

0.000

0.000

13.Net Profit / (Loss) for the period (11 -12)

26.727

12.472

39.199

14.Paid-up equity share capital (Nominal value Rs.10/- per share)

217.872

217.872

217.872

15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

4738269

--

4738.269

16.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):

 

 

 

(a) Basic

0.25

0.11

0.36

(b) Diluted

0.25

0.11

0.36

ii) Earnings per share (after extraordinary items)

 

 

 

(a) Basic

0.25

0.11

0.36

(b) Diluted

0.25

0.11

0.36

Part II

 

 

 

Select Information for the Quarter Ended 30th September, 2014

 

 

30.06.2014

 

A. Particulars of shareholding

 

 

 

1. Public Shareholding

 

 

 

- Number of shares

45664924

45664924

45664924

- Percentage of shareholding

41.92%

41.92%

41.92%

2. Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

6336000

6493850

6336000

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

10.01%

10.26%

10.01%

Percentage of shares (as a % of total share capital of the company)

5.82%

5.96%

5.82%

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

56934919

56777069

56934919

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

89.99%

89.74%

89.99%

Percentage of shares (as a % of total share capital of the company)

52.26%

52.12%

52.26%

 

 

 

B. Investor Complaints

 

 

 

Pending at the beginning of the quarter

 

Nil

 

Receiving during the quarter

 

6

 

Disposed of during the quarter

 

6

 

Remaining unreserved at the end of the quarter

 

Nil

 

 

PARTICULARS

STANDALONE

 

30.09.2014

 

Unaudited

I.              EQUITY AND LIABILITIES

 

(1)Shareholders' Funds

 

(a) Share Capital

217.872

(b) Reserves & Surplus

4738.269

(c) Money received against share warrants

0.000

 

 

(2) Share Application money pending allotment

0.000

Total Shareholders’ Funds (1) + (2)

4956.141

 

 

(3) Non-Current Liabilities

 

(a) long-term borrowings

231980

(b) Deferred tax liabilities (Net)

391.048

(c) Other long term liabilities

10.927

(d) long-term provisions

34.706

Total Non-current Liabilities (3)

668.661

 

 

(4) Current Liabilities

 

(a) Short term borrowings

1856.392

(b) Trade payables

2120.859

(c) Other current liabilities

661.750

(d) Short-term provisions

19.046

Total Current Liabilities (4)

4658.047

 

 

TOTAL

10282.849

 

 

II.            ASSETS

 

(1) Non-current assets

 

a)      Fixed Assets

 3628.655

b)     Goodwill on consolidation

0.000

c)      Non-current Investments

370.688

d)     Deferred tax assets (net)

0.000

e)      Long-term Loan and Advances

492.006

f)      Other Non-current assets

7.931

Total Non-Current Assets

4499.280

 

 

(2) Current assets

 

(a) Current investments

0.000

(b) Inventories

1344.251

(c) Trade receivables

1474.529

(d) Cash and cash equivalents

28.645

(e) Short-term loans and advances

183.584

(f) Other current assets

2752.560

Total Current Assets

5783.569

 

 

TOTAL

10282.849

 

 

Notes:

 

  1. The aforesaid financial results were reviewed by the Audit Committee at its meeting held on August 04, 2014 and taken on record and approved by the Board of Directors at its Meeting held on the same date.

 

  1. The Statutory Auditors have carried out a "Limited Review" of the above Financial results of the Company,

 

  1. In accordance with the previous of schedule II to the companies act 2013 effective from 1st April 2014, the company has revised the useful life of its fixed assets. As a consequence of such revision, the depreciation for the quarter is higher by around Rs.24.700 Millions. The difference in depreciation relating to past period as computed under the said schedule would be adjusted against the opening reserve at the time of final closure of accounts for the year.

 

  1. Previous quarter's/year's figures have been regrouped / rearranged / recasted wherever necessary to make it comparable with the current quarter's/year's figures

 

  1. The company has only one reportable primary business segment as per AS-17.

 

 

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10436549

14/06/2013

1,000,000,000.00

Unit Trust Of India Investment Advisory Services Limited

UTI Tower Gn Blockbandra Kurla Complex, Bandra East, Mumbai, Maharashtra - 400051, India

B78341260

2

10384479

26/09/2012

850,000,000.00

Indusind Bank Limited

2401 Gen Thimmayya Road, Contonment, Pune, Maharashtra - 411001, India

B61326781

3

10332858

04/01/2012

480,000,000.00

DBS Bank Limited

221, Fort House, 3rd Floor, D.N. Road, Fort, Mumbai, Maharashtra - 400001, India

B30819676

4

10300859

11/07/2011

850,000,000.00

Indusind Bank Limited

2401 Gen Thimmayya Road, Contonment, Pune, Maharashtra - 411001, India

B18297473

5

10174489

19/03/2010 *

1,150,000,000.00

IDBI BANK LIMITED

Near Lal Bunglow, Off. C.G. Road, Ahmedabad, Gujarat - 380006, India

A82978990

6

10127322

07/06/2010 *

1,190,000,000.00

3i Infotech Trusteeship Services Limited

3rd To 6th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai, Maharashtra - 400703, India

A87001277

7

90102915

20/06/2013 *

12,700,000,000.00

State Bank of India

Corporate Accounts Group Branch, Near Mithakhali Six Roads, Navarangpura, Ahmedbad, Gujarat - 380009, India

B78771896

 

 

FIXED ASSETS:

 

  • Land (Freehold)
  • Buildings
  • Plant and Machinery
  • Electrical Installations
  • Electrical Fittings
  • Office Equipments
  • Air Conditioning Plant
  • Sundry Equipments
  • Furniture and Fixtures
  • Vehicles
  • Site Office Equipment

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.62.97

UK Pound

1

Rs.94.97

Euro

1

Rs.74.43

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SPR

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

RBI

YES/NO

NO

EPF

YES/NO

NO

 

 

 

TOTAL

 

65

 

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

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.