MIRA INFORM REPORT
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Report No. : |
321052 |
|
Report Date : |
04.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
SCHNEIDER ELECTRIC PRESIDENT SYSTEMS LIMITED |
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Registered
Office : |
5C/1, KIADB Industrial Area, Attibele, Bangalore - 562107, Karnataka |
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Tel No.: |
91-22-30263300 |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
22.10.1984 |
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Com. Reg. No.: |
08-079103 |
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Capital
Investment / Paid-up Capital : |
Rs.60.480 Million |
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CIN No.: [Company Identification
No.] |
L32109KA1984PLC079103 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The Subject Is A Designer, Manufacturer And Supplier Of
Standard And Customized Enclosure Systems |
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No. of Employees
: |
343 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of “SCHNEIDER ELECTRIC SA”, FRANCE. It is an
established company having satisfactory track record. The company has incurred losses from its operational activities. However, the company receives good financial and managerial support
from its parent company and it has sound liquidity profile. Trade relations are reported as fair. Payments are reported to be slow
but correct. In view of strong parent company support, the company can be
considered for business dealings at usual trade terms and condition. |
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
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Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE
(91-22-30263300)
LOCATIONS
|
Registered Office : |
5C/1, KIADB Industrial Area, Attibele, Bangalore - 562107, Karnataka, India |
|
Tel. No.: |
91-22-30263300 |
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Fax No.: |
91-22-30263333 |
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E-Mail : |
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Website : |
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Branches : |
Located At : •
Ahmedabad •
Bangalore •
Bhubaneswar •
Chennai •
Cochin •
Delhi •
Hyderabad •
Kolkata •
Mumbai •
Pune •
Trivandrum |
DIRECTORS
As on 31.03.2014
|
Name : |
Shravan Sharma, |
|
Designation : |
Chairman |
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Name : |
S. Venkatraman |
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Designation : |
Managing Director |
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Name : |
Ganesh Vaidyanathan |
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Designation : |
Director |
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Name : |
Nikhil Pathak |
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Designation : |
Director |
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Name : |
Rajani Kesari |
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Designation : |
Director |
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Name : |
Anil Chaudhry |
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Designation : |
Director |
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Name : |
Javed Ahmad |
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Designation : |
Director |
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Name : |
Pankaj Sharma |
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Designation : |
Director |
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Name : |
Mr. Philippe Arsonneau |
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Designation : |
Director |
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Name : |
Mr. Subramanian Vishar Vasudevan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Vighneshwar G Bhat |
|
Designation : |
Company Secretary, manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding
as a % of Total No. of Shares |
|
As a % of (A+B+C) |
||
|
(A) Shareholding of
Promoter and Promoter Group |
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|
4535994 |
75.00 |
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|
4535994 |
75.00 |
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Total shareholding of
Promoter and Promoter Group (A) |
4535994 |
75.00 |
|
(B) Public
Shareholding |
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|
|
|
|
|
|
|
13708 |
0.23 |
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|
13708 |
0.23 |
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|
313032 |
5.18 |
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|
765027 |
12.65 |
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|
384743 |
6.36 |
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|
35496 |
0.59 |
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|
2170 |
0.04 |
|
|
33326 |
0.55 |
|
|
1498298 |
24.77 |
|
Total Public
shareholding (B) |
1512006 |
25.00 |
|
Total (A)+(B) |
6048000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The Subject Is A Designer, Manufacturer And Supplier Of
Standard And Customized Enclosure Systems |
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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 : |
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 : |
Not Available |
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Bankers : |
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Facilities : |
Notes : Long-term
Borrowings: i) Finance lease obligation is secured by hypothecation of vehicles taken on lease. The same is payable in 60 monthly installments of Rs. 0.035 Million (including interest) each carrying an effective interest rate of 10.81% p.a. ii) Loans from Fellow Subsidiary carry interest @ 10.75% p.a. which was revised to 9% p.a. w.e.f. 1 December 2012 and 7.5% w.e.f. 27 March 2014. The loan is repayable on 31, October 2018, although the Company has an option to prepay the aforesaid borrowing at its own discretion. |
|
Auditors : |
|
|
Name : |
Messrs. S. R. Batliboi & Associates LLP Chartered Accountants |
|
Address : |
UB City, Canberra Block, 12th & 13th Floor No. 24, Vittal Mallya Road, Bangalore 560 001, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Ultimate Holding
Company : |
Schneider Electric SA, France |
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Holding Company : |
Schneider Electric South East Asia (HQ) Private Limited |
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Fellow subsidiaries
: |
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CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs.10/- each |
Rs.120.000 Million |
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6048000 |
Equity Shares |
Rs.10/- each |
Rs.60.480
Million |
|
|
|
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|
Notes:
(a) Reconciliation of
the shares outstanding at the beginning and at the end of the reporting period
|
Equity Shares |
31.03.2014 |
31.03.2013 |
||
|
|
No. |
Rs. |
No. |
Rs. |
|
At the beginning of the period |
6,048,000 |
60,480,000 |
6,048,000 |
60,480,000 |
|
Outstanding at the end of the period |
6,048,000 |
60,480,000 |
6,048,000 |
60,480,000 |
(b) Terms/ rights
attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of directors is subject to the approval of the shareholders in ensuing Annual General meeting.
In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(c) Shares held by ultimate holding company and subsidiaries and associates of holding company and ultimate holding company Out of equity shares issued by the Company, shares held by its Holding Company are as below:
|
|
31.03.2014 |
31.03.2013 |
|
Schneider Electric
South East Asia (HQ) Private Limited |
|
|
|
4,535,994 (31 March 2013: 4,535,994) equity shares of Rs. 10 each fully paid up |
45.539 |
45.539 |
On 3 January 2013, the promoters of the Company had come out
with delisting offer to acquire up to 1,512,006 equity shares representing 25
per cent of the equity capital of the Company from the public shareholders to
comply with SEBI guidelines on minimum shareholding pattern, however the
Company could not get prescribed numbers of shares required to successfully
de-list the stock.
(d) Details of
shareholders holding more than 5% shares in the Company
|
|
31.03.2014 |
31.03.2013 |
||
|
|
No. |
% Holding |
No. |
% Holding |
|
Equity shares of `10
each fully paid |
|
|
|
|
|
Schneider Electric South East Asia (HQ) Private Limited |
4,535,994 |
75.00% |
4,535,994 |
75.00% |
As per of the Company, including its register of
shareholders/ members and other declaration received from shareholders regarding
beneficial interest, the above shareholding represent both legal and beneficial
ownership of shares.
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 |
60.480 |
60.480 |
60.480 |
|
(b) Reserves &
Surplus |
297.226 |
345.419 |
378.714 |
|
(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) |
357.706 |
405.899 |
439.194 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
150.359 |
150.709 |
105.056 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
9.479 |
|
(c) Other long term
liabilities |
0.947 |
2.793 |
8.809 |
|
(d) long-term provisions |
22.980 |
19.002 |
13.138 |
|
Total Non-current Liabilities
(3) |
174.286 |
172.504 |
136.482 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
158.620 |
28.172 |
67.982 |
|
(b) Trade payables |
441.960 |
311.764 |
182.167 |
|
(c) Other current
liabilities |
82.019 |
64.476 |
66.701 |
|
(d) Short-term provisions |
14.682 |
15.810 |
15.992 |
|
Total Current Liabilities
(4) |
697.281 |
420.222 |
332.842 |
|
|
|
|
|
|
TOTAL |
1229.273 |
998.625 |
908.518 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
385.657 |
401.282 |
416.008 |
|
(ii) Intangible Assets |
17.954 |
5.189 |
7.726 |
|
(iii) Capital
work-in-progress |
6.613 |
3.179 |
1.352 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
46.469 |
75.119 |
16.522 |
|
(e) Other Non-current
assets |
0.165 |
0.000 |
0.000 |
|
Total Non-Current Assets |
456.858 |
484.769 |
441.608 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
224.721 |
141.751 |
104.596 |
|
(c) Trade receivables |
449.474 |
269.936 |
233.901 |
|
(d) Cash and cash
equivalents |
6.820 |
7.151 |
31.838 |
|
(e) Short-term loans and
advances |
86.215 |
68.941 |
96.549 |
|
(f) Other current assets |
5.185 |
26.077 |
0.026 |
|
Total Current Assets |
772.415 |
513.856 |
466.910 |
|
|
|
|
|
|
TOTAL |
1229.273 |
998.625 |
908.518 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
1653.062 |
1103.130 |
1003.454 |
|
|
Other Income |
1.587 |
6.237 |
3.967 |
|
|
TOTAL (A) |
1654.649 |
1109.367 |
1007.421 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
1122.683 |
649.536 |
568.785 |
|
|
Purchases of
Stock-in-Trade |
67.625 |
36.774 |
37.435 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(54.769) |
(27.644) |
(0.178) |
|
|
Employees benefits
expense |
216.466 |
196.865 |
201.650 |
|
|
Other expenses |
285.464 |
231.850 |
216.188 |
|
|
TOTAL (B) |
1637.469 |
1087.381 |
1023.880 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION (C) |
17.180 |
21.986 |
(16.459) |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
23.313 |
23.356 |
21.920 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(6.133) |
(1.370) |
(38.379) |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
42.059 |
41.405 |
48.972 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX
(E-F) (G) |
(48.192) |
(42.775) |
(87.351) |
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
(9.480) |
(29.559) |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX (G-H)
(I) |
(48.192) |
(33.295) |
(57.792) |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD (K) |
219.557 |
252.852 |
0.000 |
|
|
|
|
|
|
|
|
Balance Carried to the
B/S (J+K+L-M) |
171.364 |
219.557 |
0.000 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
227.857 |
230.455 |
128.516 |
|
|
Sale of Services |
9.315 |
19.917 |
4.083 |
|
|
TOTAL
EARNINGS |
237.172 |
250.372 |
132.599 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
107.370 |
92.007 |
63.925 |
|
|
Trade goods (net) |
10.863 |
6.489 |
22.929 |
|
|
Capital Goods |
2.209 |
17.148 |
4.672 |
|
|
TOTAL
IMPORTS |
120.442 |
115.644 |
91.526 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
(7.97) |
(5.51) |
(9.56) |
QUARTERLY RESULTS
|
Particulars (Rs. In
Million) |
Jun 2014 |
Sep 2014 |
Dec 2014 |
|
Audited / UnAudited |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
187.100 |
1986.100 |
18524.000 |
|
Total Expenditure |
1509.000 |
1605.800 |
1532.000 |
|
PBIDT (Excl OI) |
362.000 |
380.300 |
320.400 |
|
Other Income |
51.900 |
51.500 |
51.600 |
|
Operating Profit |
413.900 |
431.800 |
372.000 |
|
Interest |
96.800 |
101.700 |
113.900 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
317.100 |
330.100 |
258.100 |
|
Depreciation |
111.500 |
121.100 |
118.200 |
|
Profit Before Tax |
205.600 |
209.000 |
139.900 |
|
Tax |
60.200 |
52.300 |
28.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
145.400 |
156.700 |
111.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
145.400 |
156.700 |
111.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(2.92) |
(3.02) |
(5.76) |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
1.04 |
1.99 |
(1.64) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(3.94) |
(4.30) |
(9.63) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.13) |
(0.11) |
(0.20) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.86 |
0.44 |
0.39 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11 |
1.22 |
1.40 |
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 |
60.480 |
60.480 |
60.480 |
|
Reserves & Surplus |
378.714 |
345.419 |
297.226 |
|
Net worth |
439.194 |
405.899 |
357.706 |
|
|
|
|
|
|
long-term borrowings |
105.056 |
150.709 |
150.359 |
|
Short term borrowings |
67.982 |
28.172 |
158.620 |
|
Total borrowings |
173.038 |
178.881 |
308.979 |
|
Debt/Equity ratio |
0.394 |
0.441 |
0.864 |
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 |
1003.454 |
1103.130 |
1653.062 |
|
|
|
9.933 |
49.852 |
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 |
1003.454 |
1103.130 |
1653.062 |
|
Profit |
(57.792) |
(33.295) |
(48.192) |
|
|
(5.76%) |
(3.02%) |
(2.92%) |
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 |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
GENERAL INFORMATION
NATURE OF INDUSTRY:
Schneider Electric President Systems Limited, is a leading designer, manufacturer and supplier of standard and customized enclosure systems in India and has been the market leader in 19-inch enclosures for IT and Telecom infrastructure, systems management and operations. The Company caters to three major business segments: enclosure systems, contract manufacturing and trading activities – all with a focus on the IT/Networking and ITES, Telecom, General and Industrial Electronics sectors. Schneider Electric President is the only manufacturer in India offering standard and customized enclosure solutions to the IT and Networking, Telecom, General and Industrial Electronics sectors.
PERFORMANCE:
The Net Revenues (net of duties and taxes) during the year were Rs. 1654.600 Million As against Rs. 1109.400 Million in the previous year. Net Sales Turnover increased by 49.14% over the previous year.
Plant utilization at Pune and Bangalore improved to 80% as against 70% in previous year. During the year, there were increase in Employee Costs of Rs. 19.600 Million over previous year due to merit increase during the year.
Provision for Doubtful Debts and advances was made amounting to Rs. 7.700 Million as against Rs. 359.000 Million in previous year. Casual Labour cost increased to Rs. 55.100 Million as against Rs. 31.600 Million in previous year. Power costs increased to Rs. 45.200 Million as against Rs. 33.700 Million in previous year due to increase in power rate & higher diesel price. Legal and Professional cost and Advertising and sales promotion expenses were decreased to Rs. 10.600 Million and Rs. 14.200 Million as against Rs. 17.300 Million and Rs.14.400 Million in previous year. Bad Debts written off and gain on Sales of Fixed Assets amounted to Rs. 3.900 Million and Rs. 1.200 Million in current year. Increase in improved plant utilisation resulting in positive EBIDTA of Rs. 17.200 Million as against positive EBIDTA of Rs. 22.000 Million in the previous year. Revenue from processing at Zinc Plant increased to Rs. 43.800 Million against Rs. 31.200 Million in previous year. Also revenue from services like Commissioning and installation decreased to Rs. 18.700 Million from Rs.18.900 Million
NEW PRODUCT
DEVELOPMENT:
A rack with a combination of EMC/EMI compatibility, Zone - 4 Seismic requirement and polycarbonate door with EMC shielding was developed for one of our regular and major customer. The rack was certified to meet the exacting standards of EMC/EMIi and seismic. That has passed attenuation of 30dB at the frequency from 10 kHz to 3GHz.
Operating Base Earthquake (OBE) & Safe Shutdown earthquake (SSE) tested for both the above and certified for the same. Also developed a new cabinet for solar inverter project for outdoor application with an outdoor life of 20 years adapting breakthrough technology on surface finishing.
A host of new products are under development for various application such as:
• Metering Boxes for Australia.
• Distribution boxes for Gulf.
With the new developments, the Company has acquired and enhanced design & manufacturing capabilities of a new platform of racks which were hitherto not in our range of products.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY TRENDS:
IT INFRASTRUCTURE
MARKET
The Indian IT infrastructure market, comprising of server, storage and networking equipment, will be total USD 1.9 billion in 2014, a 4% increase from 2013, according to Gartner. This is as compared to an expected flat growth in IT infrastructure spending globally.
“The global IT infrastructure investment is expected to be almost flat in 2014 and will be primarily driven by hyper scale and data center modernization initiatives,” said Mike Harris, research group vice president at Gartner. “In the global landscape, India is a promising IT
Infrastructure market through 2017.”
OUTLOOK:
IT AND DATACENTER
MARKET
The Indian IT sector took 15 years to reach the USD 100-billion mark and now the improvement seen in global economy, industry consolidation led by M&A and new technology platforms can propel the industry to USD 200 billion in the next five years.
IT & ITES was one of the top performing sectors of the calendar year 2013. Currency fluctuation and marginal improvement in global economy have made the sector worth more than USD 100 billion as of today.
The year 2014 is expected to be better for the IT industry due to its diversification in analytics, mobility, cloud, social media and emerging verticals such as healthcare and medical services, said Tushar Pendharkar, Equity Strategist, Right Horizons Financial Services.
CORPORATE INFORMATION
Schneider Electric President Systems Limited (formerly, APW President Systems Limited) (‘SEPSL’ or ‘the Company’) is a designer, manufacturer and supplier of standard and customized enclosure systems for over 27 years in 19-inch enclosures for IT and Telecom infrastructure, systems management and operations.
The Company’s operations predominantly relate to manufacture of enclosures, card frames, components and accessories and trading of electrical equipment’s. SEPSL is a manufacturer in India offering standard and customized enclosure solutions, including card frames and components, with a focus on the IT/Networking and ITES, Telecom, General and Industrial Electronics sectors.
SEPSL also has a nationwide network of sales offices, representatives and distributors to support customer wherever they may need assistance for installation, commissioning and on-going services.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Million) |
31.03.2013 (Rs.
in Million) |
|
Long-term
Borrowings |
|
|
|
Loans from Fellow Subsidiary |
149.935 |
149.935 |
|
|
|
|
|
Short-term
borrowings |
|
|
|
Loans from fellow subsidiary repayable on demand |
50.000 |
0.0000 |
|
Acceptances |
61.597 |
0.000 |
|
Total |
261.532 |
149.935 |
Notes:
SHORT-TERM
BORROWINGS:
i) The Company has unsecured working capital facility with Citibank for Rs. 60.000 Million with effect from 16 April 2013. The facility is repayable on demand and bears a floating rate determined based on market condition and is referenced to Reserve Bank of India base rate. Further, during the year the Company has withdrawn the existing facility with Syndicate Bank for Rs. 75.000 Million (31 March 2013: Rs. 75.000 Million) with effect from 24 October 2013. The facilities with Syndicate Bank were secured by a charge on present and future inventories, trade receivables and fixed deposits. The facility had a floating rate determined based on market condition and is referenced to base rate plus margin of 450 basis points.
ii) During the current year, the Company has borrowed Rs. 50.000 Million from its fellow subsidiary, primarily to facilitate its working capital requirements, at an interest rate of 7.5 % p.a. The loan is repayable on or before 27 March 2015.
iii) Includes letter of credit from banks issued to various
customers for supply of goods. The tenure of such letter of credit issued
ranges from 90 to 180 days.
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10089646 |
07/09/2012 * |
140,000,000.00 |
Syndicate Bank |
Industrial Finance Branch,
No.204-205, North Block |
B61288221 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
Claims against the Company not acknowledged as debts (i) |
4.310 |
1.498 |
|
Excise and service tax matters |
0.065 |
0.072 |
|
Sales Tax matters – Non collection of ‘C’ and ‘I’ forms |
17.383 |
59.010 |
|
Outstanding bank guarantees |
46.594 |
3.109 |
FIXED ASSETS
Tangible Assets
- Freehold Land
- Leasehold
Land
- Building
- Plant and
Equipment
- Tools Dies
and Jigs
- Furniture and
Fixtures
- Computer
Hardware
- Vehicle
Intangible Assets
- Computer
Software
- Patents and
Trademarks
- Design and
Copyrights
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.63.58 |
|
|
1 |
Rs.97.99 |
|
Euro |
1 |
Rs.70.53 |
INFORMATION DETAILS
|
Information
Gathered by : |
GAY |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
GTA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILITY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
42 |
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
unfavorable 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.