MIRA INFORM REPORT
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Report No. : |
314809 |
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Report Date : |
30.03.2015 |
IDENTIFICATION DETAILS
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Name : |
KIRLOSKAR ELECTRIC COMPANY LIMITED |
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Registered
Office : |
Industrial Suburb, Rajaji Nagar, Bangalore – 560 010, Karnataka |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
26.07.1946 |
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Com. Reg. No.: |
08-000415 |
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Capital
Investment / Paid-up Capital : |
Rs.505.214
Million |
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CIN No.: [Company Identification
No.] |
L85110KA1946PLC000415 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRK03363D BLRK02944E BLRK01454F BLRK02375C BLRK04661G BLRK00238A |
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PAN No.: [Permanent Account No.] |
AABCK2721Q |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Subject
is a company engaged in the manufacture and
sale of electric motors, alternators, generators, transformers, switchgear,
DG sets etc. |
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No. of Employees
: |
1686
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (31) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Exists |
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Comments : |
Subject is a well-established company having moderate track. The company possesses a moderate financial profile marked by an
acceptable networth base along with increasing external borrowings as well as
working capital intensive operations during FY 14. Management has witnessed a drastic decline in its revenue base as well
as has reported a loss from its operations during FY 14. The rating also take into consideration the intense competition in the
industry, raw materials price volatility and significant investment in
subsidiaries. Moreover, as per the information available from indirect source i.e.
CARE the management has seen a stretched liquidity profile evidenced in the
instances of development of letter of credit commitments and over drawls in
cash credit account since September 2014. However, trade relations seem to be fair. Business is active. Payment
terms are reported as slow. In view of rich business experience of the promoters and strategic
collaborations with the global leaders, the subject can be considered for
business dealings with caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long Term Bank Facilities: C |
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Rating Explanation |
Very high risk of default regarding timely servicing of financial
obligations. |
|
Date |
16.01.2015 |
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 has been found enlisted as a
defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’
list as of 31-03-2012.
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ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY CHARGES |
REGULATORY ACTION(S) / DATE OF ORDER |
FURTHER DEVELOPMENTS |
|
KIRLOSKAR ELECTRIC COMPANY LIMITED |
EPFO |
Exempted and Unexempted Establishments Defaulted With EPFO Including Provident Fund, Pension & Edli Contribution, Administration Charges & Penal Damages Of Rs.52.60 Million |
Among Other
Actions, Names of Defaulters Put On The EPFO Website |
INFORMATION DENIED BY
|
Name : |
Mr. Sanjiv Kumar |
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Designation : |
Account Manager |
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Contact No.: |
91-80-23374865 |
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Date : |
27.03.2015 |
LOCATIONS
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Registered Office : |
Industrial Suburb, Rajaji Nagar, Bangalore – 560 010, Karnataka, India
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Tel. No.: |
91-80-23374865/ 23322111/ 23322771 |
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Fax No.: |
91-80-23377706/ 23322469 |
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E-Mail : |
investors@kirloskar-electric.com |
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Website : |
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Corporate Office: |
P. B. No.5555, Malleswaram West, Bangalore – 560 055, Karnataka, India
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Tel No.: |
91-80-23374865/ 23377727 |
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Fax No.: |
91-80-23377706 |
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Factory 1 : |
Survey No.16, Govenahalli, Thyamagondlu, Nelamangala Taluk, Bangalore
Rural District – 562 123, Karnataka India |
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Factory 2 : |
Gokul Road, Hubli – 580 030, Karnataka, India |
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Tel. No.: |
91-836-2332771-3 |
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Fax No.: |
91-836-2331433 |
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Factory 3 : |
Belavdi Industrial Area, Mysore – 570 018, Karnataka, India |
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Tel. No.: |
91-821-2402522 / 2402540-3 |
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Fax No.: |
91-821-2402266 |
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Factory 4 : |
Survey No.81/3, Kachenahalli, Budhihal, Nelamangala Taluk, Bangalore
Rural – 562 123, Karnataka, India |
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Factory 5 : |
Plot No.6, Hirehalli Industrial Area, Tumkur Road, Tumkur – 572 168,
Karnataka, India |
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Tel. No.: |
91-816-23152-4 / 23104 |
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Fax No.: |
91-816-23105 |
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Factory 6 : |
Sy. No.16/1, Gabbur Village, P.B. Road, Hubli – 580 028, Karnataka,
India |
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Factory 7 : |
J.D. Royalite, Tumkur Road, Bangalore – 560 022, Karnataka, India |
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Factory 8 : |
Gat No.309, 315, 317 and 318, Opposite Government Milk Dairy,
Khondhapuri, District Pune – 412 209, Maharashtra, India |
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Factory 9 : |
5/4, Nagar Road, Pune – 411 014, Maharashtra, India |
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Factory 10 : |
Cal-Mumbai Truck Terminal Limited, East Wing - 14, Jala Dhulagori,
Sankrail, Andul Mauri, Howrah – 711 302, West Bengal, India |
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Factory 11: |
42D, Type, HSIDC, Sheds Sector-37, Udyog Vihar, Phase VI, Gurgaon –
122 001, Haryana, India |
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Service Centre : |
No.13/9,
1st Floor, Unity Building, M Block, J.C. Road, Bangalore – 560
002, Karnataka, India |
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Tel. No.: |
91-80-22227375/
22234022/ 22234023/ 22270076 |
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Fax No.: |
91-80-22270075/
22270076 |
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Regional Office : |
Located at: · Ahmedabad · Chennai · Kolkata · Mumbai · New Delhi |
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Branch Office : |
Located at: · Bhubaneswar · Coimbatore · Dehradun · Ernakulam · Guwahati · Indore · Jaipur · Jamshedpur · Lucknow · Ludhiana · Madurai · Nagpur · Raipur · Surat |
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Overseas Office : |
Located at: ·
Germany ·
Malaysia ·
Sharjah ·
Michigan ·
Singapore |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Vijay R. Kirloskar |
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Designation : |
Executive Chairman |
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Name : |
Vinayak Narayan Bapat |
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Designation : |
Managing Director |
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Name : |
Mr. A. S. Lakshmanan |
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Designation : |
Director |
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Name : |
Mr. S. N. Agarwal |
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Designation : |
Director |
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Name : |
Mr. Anil Kumar Bhandari |
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Designation : |
Director |
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Name : |
Mr. Sarosh J. Ghandy |
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Designation : |
Director |
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Name : |
Mr. V. P. Mahendra |
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Designation : |
Director |
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Name : |
Mr. Kamlesh Gandhi |
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Designation : |
Director |
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Name : |
Mrs. Meena Kirloskar |
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Designation : |
Director |
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Name : |
Mr. Ram J. Shahaney |
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Designation : |
Director |
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Name : |
K. Ganesh |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
K.S. Swapna Latha |
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Designation : |
Assistant Company Secretary and Compliance Officer |
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Name : |
Mr. Sanjiv Kumar |
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Designation : |
Account Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2014
|
Category of
Shareholders |
Number of Shares |
Percentage |
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(A) Shareholding of Promoter and Promoter Group |
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4097783 |
8.11 |
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20788360 |
41.15 |
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24886143 |
49.26 |
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Total shareholding of Promoter and Promoter Group (A) |
24886143 |
49.26 |
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(B) Public Shareholding |
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|
802525 |
1.59 |
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|
3240824 |
6.41 |
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|
450 |
0.00 |
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|
4043799 |
8.00 |
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|
4006390 |
7.93 |
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|
6568058 |
13.00 |
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|
2417188 |
4.78 |
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|
8599789 |
17.02 |
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|
334183 |
0.66 |
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|
1896044 |
3.75 |
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|
6174936 |
12.22 |
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194626 |
0.39 |
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|
21591425 |
42.74 |
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Total Public shareholding (B) |
25635224 |
50.74 |
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Total (A)+(B) |
50521367 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
50521367 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged in the manufacture and selling of electric motors, alternators,
generators, transformers, switchgear, DG sets etc. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
1686
(Approximately) |
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Bankers : |
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Facilities : |
Notes: LONG
TERM BORROWING: 1) Details of security for secured loans:
2) Terms of repayment of
term loans and others a) Finance lease Finance lease relate to
Plant and Machinery taken for a period of five years. Interest on such lease
is ranging between 13% to 14% p.a. Average equated monthly instalment is Rs.0.158 Million per month. b) Car Loans: Car loans are for a period
of three to five years and interest rate is about 10% p.a. Average equated
monthly instalment is about Rs.0.230 million per month 1)
Details of security for secured loans
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Auditors : |
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Name : |
B.K. Ramadhyani and Company Chartered Accountants |
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Address : |
Bangalore, Karnataka, India |
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Subsidiary (Wholly Owned): |
Kirsons BV |
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Step down Subsidiaries: |
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Associates : |
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Enterprises over which key management personnel and their relatives
are able to exercise significant influence : |
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CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Million |
|
3000000 |
Preference Shares |
Rs.100/- each |
Rs.300.000 Million |
|
|
Total |
|
Rs.900.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50521367 |
Equity Shares |
Rs.10/- each |
Rs.505.214
Million |
|
|
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|
Other Information:
I. Preference shares:
a. The Company had issued
cumulative preference shares of Rs.100/- each. The preference shareholders did
not have voting rights.
b. 1176746 Preference
shares (value Rs.117.675 Million) were allotted pursuant to a contract without
consideration being received in cash. These preference shareholders were
allotted to preference shareholders of Kaytee Switchgear Limited as fully paid
up pursuant to the Scheme of arrangement approved by the Honourable High Court of
Karnataka under sec 391-394 of the Companies Act, 1956 without payment being
received in cash.
|
|
As at
31.03.2014 |
|
|
Number |
Amount (Rs.
in Million |
|
|
Preference shares bought back during the five years immediately preceding
the date of the balance sheet |
2376746 |
237.675 |
2.
Equity shares:
a. The Company has only one
class of equity shares having a par value of Rs.10/- each. Each holder of equity
shares is entitled to one vote per share. 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 preferential
amounts. The distribution will be in proportion to the equity shares held by
the shareholder.
b. Equity Shares of Rs.10/- each includes:
immediately preceding the date of the balance sheet
|
|
As at
31.03.2014 |
|
|
Number |
Amount (Rs.
in Million |
|
|
(i) Equity shares include
Shares allotted pursuant to a contract without consideration being received
in cash. These shares were issued to shareholders of Kaytee Switchgear
Limited and Kirloskar Power Equipments Limited as fully paid, pursuant to
Scheme of arrangement approved by the Honourable High Court of Karnataka
under sections 391 - 394 of the Companies Act, 1956. Equity shares so
allotted includes 6,174,878 equity shares of Rs.10/- each allotted to
KECL Investment Trust, sole beneficiary of which is the Company. |
17252550 |
172.526 |
|
(ii) Shares allotted
during the year 2007-08 to the promoters group in terms of order September
29, 2007 of the Honourable High Court of Karnataka read with scheme of
arrangement dated February 13, 2003 under sections 391 to 394 of The
Companies Act, 1956. |
2000000 |
20.000 |
|
(iii) Shares allotted
during the year 2003 - 04 to IDBI on conversion of Preference Share Capital
at face value as per the scheme of arrangement approved by honourable High
Court of Karnataka. |
6000000 |
60.000 |
c.
Particulars of equity shareholders holding more than 5% of the total number of
equity share capital:
|
Particulars |
As at 31.03.2014 |
|
|
Number |
Percentage |
|
|
a. Abhiman Trading Company
Private Limited |
5217063 |
10.33 |
|
b. Vijayjyothi
Investments and Agencies Private Limited |
4257682 |
8.43 |
|
c. KECL Investment Trust |
6174878 |
12.22 |
|
d. Vijay Ravindra
Kirloskar |
3913269 |
7.75 |
|
e. Vijaykirti Investments
and Agencies Private Limited |
3064094 |
6.06 |
|
f. Life Insurance
Corporation of India |
2576571 |
5.10 |
|
g. Vijay Farms Private
Limited |
3540807 |
7.01 |
FINANCIAL DATA
[all figures are
in Rupees Million]
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 |
505.214 |
505.214 |
505.214 |
|
(b) Reserves & Surplus |
1041.071 |
1451.167 |
1409.564 |
|
(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) |
1546.285 |
1956.381 |
1914.778 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
653.184 |
202.641 |
129.430 |
|
(b) Deferred tax liabilities
(Net) |
133.424 |
71.500 |
69.045 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
135.122 |
126.554 |
107.134 |
|
Total
Non-current Liabilities (3) |
921.730 |
400.695 |
305.609 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1367.333 |
1517.467 |
1269.742 |
|
(b) Trade payables |
2791.966 |
2406.356 |
2270.496 |
|
(c) Other current liabilities |
673.679 |
642.237 |
948.274 |
|
(d) Short-term provisions |
73.717 |
118.641 |
142.358 |
|
Total
Current Liabilities (4) |
4906.695 |
4684.701 |
4630.870 |
|
|
|
|
|
|
TOTAL |
7374.710 |
7041.777 |
6851.257 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1189.933 |
1299.101 |
1431.017 |
|
(ii) Intangible Assets |
5.747 |
6.311 |
17.382 |
|
(iii) Capital work-in-progress |
16.557 |
42.933 |
39.516 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1914.212 |
1551.399 |
1270.358 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
177.312 |
170.420 |
144.960 |
|
(e) Other Non-current assets |
15.191 |
12.411 |
31.113 |
|
Total
Non-Current Assets |
3318.952 |
3082.575 |
2934.346 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1541.060 |
1350.040 |
1317.460 |
|
(c) Trade receivables |
1566.406 |
1951.278 |
1874.411 |
|
(d) Cash and cash equivalents |
512.286 |
269.311 |
341.864 |
|
(e) Short-term loans and
advances |
145.600 |
151.731 |
152.854 |
|
(f) Other current assets |
290.406 |
236.842 |
230.322 |
|
Total
Current Assets |
4055.758 |
3959.202 |
3916.911 |
|
|
|
|
|
|
TOTAL |
7374.710 |
7041.777 |
6851.257 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
6798.427 |
8019.427 |
8717.397 |
|
|
|
Other Income |
172.035 |
90.183 |
57.626 |
|
|
|
TOTAL (A) |
6970.462 |
8109.610 |
8775.023 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5482.315 |
6173.959 |
6661.243 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-
in-trade |
(220.119) |
(261.784) |
(102.654) |
|
|
|
Employee benefit expenses |
788.783 |
829.686 |
801.298 |
|
|
|
Other expenses |
793.473 |
806.356 |
748.120 |
|
|
|
Expenses capitalized |
(0.459) |
(2.105) |
(0.809) |
|
|
|
TOTAL (B) |
6843.993 |
7546.112 |
8107.198 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
126.469 |
563.498 |
667.825 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
419.387 |
335.792 |
383.046 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(292.918) |
227.706 |
284.779 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
117.155 |
170.329 |
183.889 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(410.073) |
57.377 |
100.890 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.023 |
15.774 |
5.208 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(410.096) |
41.603 |
95.682 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods
calculated on FOB basis (net) (inclusive of sales
within India eligible for export incentives) |
567.898 |
676.367 |
698.458 |
|
|
|
Royalty, Knowhow,
professional and consultancy fees |
0.000 |
11.375 |
3.659 |
|
|
|
Dividends
received |
0.847 |
0.542 |
0.607 |
|
|
|
Remittances from
overseas offices (Net) |
46.790 |
46.014 |
62.664 |
|
|
TOTAL EARNINGS |
728.961 |
615.535 |
734.298 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Components and Spares Parts |
205.231 |
545.378 |
652.885 |
|
|
|
Capital Goods |
0.000 |
0.790 |
22.627 |
|
|
TOTAL IMPORTS |
205.231 |
546.168 |
675.512 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(8.12) |
0.82 |
1.73 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
(6.03) |
0.52 |
1.10 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
1.86 |
7.03 |
7.66 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.53) |
1.05 |
1.82 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.27) |
0.03 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.31 |
0.88 |
0.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.83 |
0.85 |
0.85 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
505.214 |
505.214 |
505.214 |
|
Reserves & Surplus |
1409.564 |
1451.167 |
1041.071 |
|
Net
worth |
1914.778 |
1956.381 |
1546.285 |
|
|
|
|
|
|
long-term borrowings |
129.430 |
202.641 |
653.184 |
|
Short term borrowings |
1269.742 |
1517.467 |
1367.333 |
|
Total
borrowings |
1399.172 |
1720.108 |
2020.517 |
|
Debt/Equity
ratio |
0.731 |
0.879 |
1.307 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
8717.397 |
8019.427 |
6798.427 |
|
|
|
(8.007) |
(15.226) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
8717.397 |
8019.427 |
6798.427 |
|
Profit |
95.682 |
41.603 |
(410.096) |
|
|
1.10% |
0.52% |
(6.03%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
|
LITIGATION DETAILS |
|||
|
HIGH COURT OF KARNATAKA – BENGALURU BENCH COP 38/2015 |
|||
|
Petitioner:- |
M/S. B T SOLDERS PRIVATE LIMITED |
Respondent:- |
M/S. KIRLOSKAR ELECTRIC COMPANY LIMITED |
|
Petn.Adv:- |
M ARUN PONAPPA |
Respnt Adv :- |
-- |
|
District:- |
Bengaluru City |
||
|
Date Filed |
12.02.2015 |
||
|
Status:- |
Pending for admission |
Stage:- |
433,434,439 OF COMPANIES ACT |
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10491051 |
28/03/2014 |
300,000,000.00 |
Corporation Bank |
Corporation Bank, Bangalore, Bangalore, Karnataka |
C02926285 |
|
2 |
10341775 |
08/03/2012 * |
3,350,000,000.00 |
Bank of India |
Bangalore Main Branch, No.11 KG Road, Bangalore, |
B35826015 |
|
3 |
10252669 |
02/11/2010 |
440,000,000.00 |
State Bank of Hyderabad |
Industrial Finance Branch, "SHERIFF HOUSE", No.85 |
B00229625 |
|
4 |
10197950 |
18/01/2010 |
421,800,000.00 |
THE BANK OF RAJASTHAN LIMITED |
11-C Mittal Tower M G Road, Bangalore, Karnataka - |
A77049229 |
|
5 |
10160264 |
09/06/2009 |
250,000,000.00 |
THE BANK OF RAJASTHAN LIMITED |
VISHAL HALL COMPLEX,ANDHERI KURLA ROAD, ANDHERI-E |
A63326664 |
|
6 |
10124543 |
17/09/2008 |
1,250,000,000.00 |
AXIS BANK LIMITED |
1st FLOOR, No. 8, NITESH TIMES SQUARE, M.G.RO |
A47536313 |
|
7 |
10131788 |
21/01/2015 * |
200,000,000.00 |
3i Infotech Trusteeship Services Limited |
3rd to 6th floor, International Infotech Park,, Tower No.5, Vashi
Railway Station Complex, Vashi, N |
C40818312 |
|
8 |
10108491 |
17/04/2008 |
228,500,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, RESIDENCY PLAZA RESIDE NCY ROAD,
BANGALORE, Karnataka - 560025, INDIA |
A40694598 |
|
9 |
10105064 |
26/12/2007 |
135,300,000.00 |
STATE BANK OF MYSORE |
2ND CROSS SAMPIGE ROAD, MALLESWARAM, BANGALORE, Karnataka - 560003,
INDIA |
A39173398 |
|
10 |
10077535 |
17/10/2007 |
22,300,000.00 |
State Bank of Mysore |
2nd Cross, Sampige Road, No.11, Malleswaram, Bangalore, Karnataka -
560003, INDIA |
A27629534 |
* Date of charge modification
|
Unsecured Loans |
31.03.2014 (Rs.
in Million) |
31.03.2013 (Rs.
in Million) |
|
LONG TERM BORROWING |
|
|
|
Fixed Deposits |
433.620 |
320.482 |
|
Less:
Current Maturities |
(35.832) |
(119.742) |
|
SHORT TERM BORROWINGS |
|
|
|
a) Fixed Deposits |
63.414 |
48.202 |
|
c) Inter corporate
Deposits |
339.474 |
402.000 |
|
Total
|
800.676 |
650.942 |
Notes:
LONG TERM BORROWING:
a) Fixed deposits are taken
for a period of 24 and 36 months with interest rates ranging from 12% to 13%
SHORT TERM BORROWINGS:
a) Fixed deposits are taken for a period of 12 months with interest rates ranging from 11.5%
b) Fixed deposits accepted from related parties amount to Rs.100 Million (as at March 31, 2013: Rs.45 Million)
c) Inter corporate deposits are taken for periods ranging between 90 to 360 days with interest rates averaging to
16% per annum.
d) Fixed deposits include Rs.3.624 Million (as at March 31,
2013: Rs.0.302 Million) matured unclaimed deposits.
BACKGROUND:
The Company was
incorporated in 1946 and is a company engaged in the manufacture and selling of
electric motors, alternators, generators, transformers, switchgear, DG sets
etc.
Company Performance
During the year, the
Company has achieved a turnover of Rs. 6798.427 million (previous year Rs. 8019.427 Million). The
operations have resulted in a net profit of Rs.
410.096 (previous year Rs. 41.603 Million).
Industry Outlook
The market for the company products remains subdued. The present manufacturing capacity in India is in far excess of the existing demand. This has lead to very aggressive competition and subsequent negative pressure on the prices of products. The Company has taken several steps to mitigate the impact of this by taking several measures for optimizing the capacity utilization, market reach and performance.
Subsidiary – Kirsons B.V.
The operations of Kirsons B.V., the subsidiary have resulted in net loss of € 2.94 Million (Previous year € 1.04 Million).
Subsidiary Companies
The Company as of March 31, 2014 had one subsidiary, viz., Kirsons B.V., Netherlands (Kirsons). Kirsons is having two subsidiaries – Lloyd Dynamowerke GmbH & Co. KG, Germany and Lloyd Beteiligungs-GmbH, Germany. Pursuant to section 212 of the Companies Act, the annual accounts of subsidiary companies for the year ended 31st March, 2014 along with the statements referred to in the said section, are attached with Consolidated Financial Statements as required.
Lloyd Dynamowerke GmbH and
Co. KG, Germany (LDW)
As you are aware, the Company holds 94.89% shares in Lloyd Dynamowerke GmbH & Co. KG, Germany and the entire shareholding in Lloyd Beteiligungs-GmbH, Germany through its subsidiary in The Netherlands – Kirsons B.V. Lloyd Dynamowerke GmbH & Co. KG, Germany is a limited partnership existing in accordance with the Laws of Germany which owns an electrical machine manufacturing plant at Bremen. During the year ended 31st March, 2014 Lloyd Dynamowerke GmbH & Co. KG, had turnover of € 39.041 Million (Rs.3162.297 Million ) {Previous year € 399.57 Million (Rs. 27,942 Million )} with a net loss after tax of € 5.843 Million (Rs.4,82.692 Million ) {Previous year net loss € 6.460 Million (Rs.449.600 Million )}.
Rotating Machines Group
During the year the sales under Rotating Machines Group amounted to Rs.6898.302 Million as against Rs.6993.588 Million in 2012-13.
Power Generation and
Distribution Group
During the year under review the sales under Power Generation and Distribution Group amounted to Rs.31608.77 Million as against Rs.40861.21 Million in 2012-13.
Others
During the year the sale of other Electrical Products amounted to Rs.536.811 Million as against Rs.471.932 Million in 2012-13.
MANAGEMENT DISCUSSION AND
ANALYSIS REPORT
Industry
The Company is engaged in Electrical Industry which comprise of Rotating Machines Group, Static Equipments, Switchgears, Transformers, Capacitors, Transmission Lines etc., Slowdown in the economy affected growth of the business segment as demand for capital goods generally follows a cyclical pattern depending on the overall economic scenario and the investment priorities of the Government. Several upcoming projects were postponed because of liquidity crunch and negative business sentiments. Nevertheless there are signs of revival and economy may perform better in the coming fiscal year.
The Company has taken several bold steps to remain competitive and to ensure survival by reducing cost, rationalizing manpower and streamlining operations. The strong brand image of the Company’s products on account of our stress on quality puts us in an advantageous position.
Opportunities,
Competition and Threats
The industries to which we cater to and diversified portfolio of our products provide consistent demand for our products overall.
We are also trying to innovate and further diversify our range of products. With the policies of the new Government the Indian Economy is expected to do better. There is a considerable energy deficit in the country. This provides significant opportunities to share in the chain of power business for our different product lines. The strong brand image of the Company’s products on account of our stress on quality and a broad network of our dealers/service centers put us in an advantageous position. It may be noted that the Company has no control over the external factors as a result of which the actual performance may vary from the expected.
The Generator as well as the Motor manufacturing industry is highly competitive, both in India and internationally. Many large corporations in domestic front and international front are competitors to the Company. These corporations have access to advanced technologies, greater reach and larger financial resources which may benefit them with economies of scale and operating efficiencies. Competitors may be able to sell their products at prices lower than the Company’s, which may have an adverse effect on the Company’s market share and results of operations.
The rise in prices of raw materials, uncertainty in supplies and tight monetary policies are a matter of concern. The present challenge is to manage the pending orders within the budgeted costs and high volatility in the prices of major raw materials.
Further, entry of new players and expansion of manufacturing capacity by existing players and arrival of Chinese transformer manufacturers is likely to put more pressure on established players.
The Company foresees certain areas of risk, concerns and threats in its arena of operations. Increases in production cost were not fully compensated by increase in selling price in tough market environment. The Company expects current year to be more challenging compared to the previous year due to fall in order backlog and intensive price pressure getting reflected in newly opened tenders and recently finalized orders. The current year is likely to be another challenging one for the Company. The Company is focused on cost control and productivity improvement areas to compensate for declining volumes.
Future Outlook
Global economies appear to be going through a phase which is having greater share of volatility than that of stability. High interest costs, low corporate investments, high inflation and trade deficits continue in this fiscal. Measures are needed from the Government to kick-start the investment cycle growth. There is no visibility of a sustained Global recovery and Eurozone economic sluggishness continues unabated affecting India’s economic growth. Low industrial growth, unfavorable investment climate have resulted in the Company’s domestic order book reflecting sluggishness as in Fiscal 2013-14. The general weakness across all industries continues and all sectors are reflecting a great deal of uncertainty in the market for capital expenditure and capital goods. However, the Company’s efforts to optimize products have enabled the Company to enhance product offerings leading to significant overseas orders. Further, the various industries to which the Company caters are expected to better again and demand from them will pick up again. The overall long term view is positive. In view of the above, the Company is hopeful of recording operating performance this fiscal improved.
SEGMENT WISE OR PRODUCT
WISE PERFORMANCE
The Company has identified
the reportable segments as Rotating Machines Group, Power Generation and
Distribution Group and Others, taking into account the nature of products and
services, the different risks and returns and the internal reporting systems.
The
segment wise turnover of the Company is as follows: -
|
Products |
2013-14 (Rs.
in Million) |
2012-13 (Rs.
in Million) |
|
Rotating
Machines Group |
6898.302 |
6993.588 |
|
Power
Generation and Distribution Group |
3160.877 |
4086.121 |
|
Others |
536.811 |
471.932 |
|
Total |
10595.990 |
11551.641 |
CONTINGENT LIABILITIES:
|
Particular |
31.03.2014 (Rs in Million) |
31.03.2013 (Rs in Million) |
|
Claims against the Company not acknowledged as debts. The Company has made counter claim against one of the parties amounting to Rs.12.900 Million (as at the end of the previous reporting period Rs.12.900 Million) |
136.778 |
268.482 |
|
Guarantees |
432.493 |
497.374 |
|
Letters of credit |
563.468 |
1726.089 |
|
Bills discounted with Bank |
186.481 |
188.236 |
|
Penal damages levied by the Regional Provident Fund commissioner and subject to writ before the High Court of Karnataka, Bangalore. An amount of Rs.4.618 Million paid has been included in loans and advances |
Nil |
9.154 |
|
Central excise and customs authorities have issued notices and raised certain demands, which are pending in appeal before various authorities, not acknowledged as debt by the Company |
33.862 |
22.660 |
|
Sales tax demanded under
appeal. The Company has paid an aggregate amount of Rs.93.079 Million (as at
March 31, 2012 Rs.70.194 Million) against
the demand which has been included in disputed statutory dues |
194.603 |
268.400 |
|
The Company has filed before the honorable Supreme Court, special leave petitions in respect of resale tax and sales tax penalty of Rs 527 Million and Rs 362 Million respectively, on its erstwhile subsidiary Kaytee Switchgear Limited (since merged with the Company) and confirmed by the honorable High Court of Karnataka. The Company believes based on legal advice / internal assessment that the outcome of these contingencies will be favorable, that losses are not probable and no provision is required to be recognized in this respect. The Company has paid an aggregate amount of Rs.530.13 Million (as at March 31, 2013 Rs.510.13 Million) against the demand which has been included in disputed statutory dues. |
88.900 |
88.900 |
|
Show cause notices raised by the Income Tax Department for short and non-remittances of tax deduction at source – matter under examination |
1.022 |
4.599 |
|
Sales tax liabilities in respect of pending assessments - C forms have not been received from several customers. Continuing efforts are being made to obtain them. Significant progress has been made in the matter as compared to the previous year. |
Not Ascertainable |
Not Ascertainable |
|
Interest if any, on account of delays in payment to suppliers |
Not Ascertainable |
Not Ascertainable |
|
Sales tax on equipment procured on hire/ lease and on computer software charges is contested by the suppliers. Will be charged to revenue in the year of final claim. |
Not Ascertainable |
Not Ascertainable |
|
Certain industrial disputes are pending before various judicial authorities – not acknowledged by the Company |
Not Ascertainable |
Not Ascertainable |
|
Wage settlements of certain units have expired. However provision has been made on estimated basis and differences if any will be accounted on final settlement |
Not Ascertainable |
Not Ascertainable |
|
Income tax demands under appeal |
39.813 |
1.556 |
|
Guarantee given to ICICI Bank in consideration of stand by letter of credit opened by them in favour of ICICI Bank, Canada as security for loan granted issued by them to Kirsons BV. SBLC is secured by mortgage of certain immovable properties of the company and shares of Kirsons BV |
139.970 |
357.365 |
|
The Company had furnished
a guarantee for the redemption of preference shares issued by Kirloskar
Investment and Finance Limited to an extent of Rs.20.000 Million (as at
March 31, 2012 Rs.20.000 Million) and had
obtained counter guarantee from the said Company. The preference shareholder
has claimed a sum of Rs.20.000 Million along with
dividends in arrears of Rs.20.560 Million and
interest from the Company. This claim has been upheld by the Debt Recovery
Tribunal (DRT). The Company has preferred an appeal before the Debt Recovery
Appellate Tribunal to set aside the orders passed by the DRT. The Company
does not acknowledge this liability. |
40.560 |
40.560 |
|
Arrears of fixed cumulative dividends on preference shares (including tax thereon) |
116.249 |
116.249 |
In respect of items above,
future cash outflows in respect of contingent liabilities is determinable only on
receipt of judgements pending at various forums / settlement of matter. The
management believes, based on internal assessment and / or legal advice, that
the probability of an ultimate adverse decision and outflow of resources of the
Company is not probable and accordingly, no provision for the same is
considered necessary.
FIXED ASSETS:
Tangible Assets
· Land
· Building
· Plant and Equipment
· Tools and Jigs
· Electrical Installations
· Motor Vehicles
· Office Equipments
· Furniture and Fittings
·
Leasehold Improvements
Intangible Assets
·
Goodwill
·
Computer Software
·
Technical Knowhow and Product Development
WEBSITE DETAILS:
NEWS/ ARTICLE:
KIRLOSKAR ELECTRIC
COMPANY ALLOTS EQUITY SHARES ON PREFERENTIAL BASIS TO PROMOTER
March 26, 2015
Kirloskar Electric Company has allotted on 26 March 2015, 26,58,200 equity shares of Rs.10/- each, aggregating to Rs.80.900 Million on preferential basis to Vijay R Kirloskar, Promoter of the Company in terms of SEBI Guidelines for Preferential Issue.
KIRLOSKAR ELECTRIC'S
WORK AT UNIT 2 IN HUBLI UNDER TEMPORARY SUSPENSION FROM JULY 8, 2014
Kirloskar Electric Company Ltd has informed BSE that Pending conclusion of wage negotiations with the unit labour union, the manufacturing operations at the Company’s unit 2 situated at Gokul Road, Hubli are under temporary suspension from July 08, 2014. The management is hopeful to address this situation in the near future.
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.62.60 |
|
|
1 |
Rs.92.95 |
|
Euro |
1 |
Rs.68.14 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRP |
|
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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DEFAULTER |
|
|
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--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
YES |
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TOTAL |
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31 |
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.