MIRA INFORM REPORT

 

 

Report No. :

347175

Report Date :

28.10.2015

 

IDENTIFICATION DETAILS

 

Name :

OTIS ELEVATOR CO (INDIA) LIMITED

 

 

Registered Office :

Magnus Towers, 9th Floor,  Mindspace, Link Road, Malad (West), Mumbai – 400 064, Maharashtra

Tel. No.:

91-22-66795151

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

30.10.1953

 

 

Com. Reg. No.:

11-009158

 

 

Capital Investment / Paid-up Capital :

Rs. 118.082 Million

 

 

CIN No.:

[Company Identification No.]

U29150MH1953PLC009158

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMO00083G

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged Inter-alia in the business of Manufacture, Erection, Installation and Maintenance of Elevators, Escalators and Travolators.

 

 

No. of Employees :

Information declined by the management 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (80)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exists

 

 

Comments :

Subject is a subsidiary of 'United Technologies Corporation', United States. It is an elevators manufacturing company. The company provides elevators, escalators and moving walkways.

 

The Otis Elevator is the world's largest manufacturer of vertical transportation systems and ranked 401 amongst fortune 500 company with brand name value of USD 3,798 million and enterprise value of . USD 24,452 Million.

 

With respect to the Indian operations, revenue of the company has marginally declined by 4.78% whereas net profile has been declined by 43.68%. However, the company has maintained above average profitability margins at 6.01% during the year under a review.

 

Company possesses strong financial profile marked by strong operating efficiencies along with adequate net· worth position and zero debt balance sheet profile of the company.

 

Rating also takes into consideration its widespread geographical marketing and distribution networks backed by its decent brand recognition in engineering and construction sector.

 

Rating strength partially offset by its working capital intense nature of business operations marked by highly competitive elevator industry and volatility in raw material prices fluctuation which led to affect company profitability margins.

 

Trade relations are reported as fair. Payments are reported to be regular and as per commitment.

 

In view of aforesaid, the company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

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 31-03-2015.

 

INFORMATION DECLINED

 

MANAGEMENT NON-COOPERATIVE (91-22-5679515)

 

LOCATIONS

 

Registered Office/Head Office/ Western Region :

Magnus Towers, 9th Floor,  Mindspace, Link Road, Malad (West), Mumbai – 400 064, Maharashtra, India

Tel. No.:

91-22-28449700/6679515

Fax No.:

91-22-28449791/9793

E-Mail :

Tanhieya.Ghosh@otis.com

Sumanta.dash@otis.com

Sanu.kapoor@otis.com 

Website :

http://www.otis.com

 

 

Factory  :

Manufacturing Facility, 92, KIADB Industrial Estate Phase 11, Jigani Industrial Area, Anekal Taluk, Bangalore – 562 106, Karnataka, India  

Tel. No.:

91-80-27825401 / 02 / 03

Fax No.:

91-80-27825404

 

 

Eastern Region :

Bengal Intelligent Park, Building – Delta, 4th floor, Block EP&GP, Sector V, Salt Lake Electronics Complex, Kolkata – 700091, West Bengal, India

Tel. No.:

91-44-40524300 / 301

Fax No.:

91-44-40524302

 

 

Northern Region :

171 and 271, Aggarwal Cyber Plaza – II, C-7, Netaji Subhash Place, Pitampura, Delhi – 110034, India

Tel. No.:

91-11-46069000 / 9030 / 4606

Fax No.:

91-11-46069111

 

 

Southern Region :

Otis House, M K Towers, # 27, Langford Road, Shanti Nagar, Bengaluru –560027, Karnataka, India

Tel. No.:

91-80-40314500

Fax No.:

91-80-22111191

 

 

DIRECTORS

 

AS ON 31.03.2015

 

Name :

Sebi Joseph

Designation :

Managing director

Address :

9th Floor, Magnus Tower, Mind Space, Link Road, Malad (West), Mumbai -  400064, Maharashtra, India

Date of Birth/Age :

19.12.1962

Qualification :

MBA, BE (Mech)

Date of Appointment :

07.03.2012

DIN No.:

05221403

 

 

Name :

Ms. Priya Shankar Dasgupta

Designation :

Director

Address :

J-1810, Chittaranjan Park, New Delhi – 110019, Delhi, India

Date of Birth/Age :

30.06.1955

Qualification :

LLB, BA Eco Hons, PG-Corp laws & labour laws

Date of Appointment :

12.04.2001

DIN No.:

00012552

 

 

Name :

Mr. Puthan Naduvakkat Suma

Designation :

Additional director

Address :

No.29, Lakshmi Nilayam, N.R. Layout Fci Road, Vijanapura, Bangalore - 560016, Karnataka, India

Date of Appointment :

10.03.2015

DIN No.:

05350680

 

 

Name :

Nirmal Kumar Mohanty

Designation :

Additional director

Address :

E/4, Silver Valley No. 2, Shivaji Nagar, Vakola, Santacruz (E),, Mumbai - 400055, Maharashtra, India

Date of Appointment :

26.06.2015

DIN No.:

07220804

 

 

KEY EXECUTIVES

 

Name :

Sanu Vishal Kapoor

Designation :

Secretary

Address :

B-604, Vaibhav Palace, New Link Road, Oshiwara, Jogeshwari (West), Mumbai – 400102, Maharashtra, India

Date of Birth/Age :

24.04.1971

Date of Appointment :

18.04.2012

PAN No.:

AAAPY3743L

 

 

Name :

Mr. Mitesh Mittal

Designation :

Chief Finance Officer

Address :

A 202, Mahindra Eminente, S.V.Road,, Goregaon (West), Mumbai - 400062, Maharashtra, India

Date of Appointment :

23.05.2014

PAN No.:

AGBPM0113F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 22.09.2014

 

SHAREHOLDING DETAIL FILE ATTACHED

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 22.09.2014

 

Category

Percentage

Public Financial companies

0.01

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

98.26

Bodies corporate

0.03

Other top fifty shareholders

0.58

Other

1.12

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged Inter-alia in the business of Manufacture, Erection, Installation and Maintenance of Elevators, Escalators and Travolators.

 

 

Products :

Item Code No.

Product Description

84281011

Lifts of A Kind Used In Buildings

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS: NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark:

Not Divulged

 

 

No. of Employees :

Information declined by the management 

 

 

Bankers :

Banker Name

Not Divulged

Branch Address

Not Divulged

Person Name (With Designation)

Not Divulged

Contact Number

Not Divulged

Name of Account Holder

Not Divulged

Account Number

Not Divulged

Account Since (Date/Year of Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

Address :

5th Floor, Tower 'D', the Millenia, 1 and 2 Murphy Road, Ulsoor, Bangalore -560 008, Karnataka, India

PAN N Income-tax PAN of auditor or auditor's firm :

AADFP9359C

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Ultimate Holding Company:
  • United Technologies Corporation, United States

 

 

Holding Company (w.e.f. November 25, 2013):
  • Singapore Holdco. Pte. Limited, Singapore

 

 

Substantial Interest in Voting Power of the Company (till November 24, 2013):
  • Otis Elevator Company, New Jersey, United States

 

 

Substantial Interest in Voting Power of the Company (till November 24, 2013):
  • Otis Elevator Company (S) Pte. Limited., Singapore

 

 

Substantial Interest in Voting Power of the Company (till November 24, 2013)
  • Otis Mauritius Limited, Mauritius

 

 

Subsidiary Companies:
  • Supriya Elevator Company (India) Limited, India [U29150TN2008PLC068160]
  • Trio Elevators Company (India) Limited, India (till Jun 30, 2014) [U31103GJ2006PLC048885]

 

 

Associate Company:
  • Information Systems Resource Centre Private Limited, India [U72200MH1996PTC100517]

 

 

Parties Under Common Control with whom transactions have taken place during the year.:
  • Fire Protection Private Limited, India (till May 14, 2014) [U28920TN1995PTC031367]
  • Bluelight Otis Elevator Traction Machine (Tianjin) Company Limited, China
  • Carrier Airconditioning and Refrigeration Limited, India [U74999HR1992FLC036104]
  • CEAM SRL, Italy
  • Chubb Alba Control Systems Limited, India [U31909DL1989PLC038375]
  • Elevadores Otis LTDA, Brazil
  • Express Elevator Company Limited, China
  • Guangzhou Otis Elevator Company Limited, China
  • Milton Roy India Private Limited, India [U51102TN1983PTC010379]
  • Nippon Otis Elevator Company, Japan
  • Otis A.S., Czech Republic (formally known as Otis Escalators S.R.O.- Czech Republic)
  • Otis E & M Phillippines Company, Inc., Phillippines
  • Otis Elevator (China) Company Limited, China
  • Otis Elevator Co Pty Limited, Australia
  • Otis Elevator Company, Tucson
  • Otis Elevator Company (H.K.) Limited, Hong Kong
  • Otis Elevator Company (M) SDN BHD, Malaysia
  • Otis Elevator Company (S) Pte. Limited., Singapore (w.e.f. November 25, 2013)
  • Otis Elevator Company (Thailand) Limited, Thailand
  • Otis Elevator Company Saudi Arabia Limited, Saudi Arabia
  • Otis Elevator Company, Kuwait
  • Otis Elevator Company, New Jersey, United States (w.e.f. November 25, 2013)
  • Otis Elevator, Korea
  • Otis Elevators International Inc., Hong Kong
  • Otis Elevators International Inc., Singapore
  • Otis GMBH an Company  OHG, Germany
  • Otis High-Rise Elevator(Shanghai) Company Limited., China
  • Otis L.L.C., U. A. E.
  • Otis Limited, U. K.
  • Otis Mauritius Limited, Mauritius (w.e.f. November 25, 2013)
  • OTIS SCS, France
  • Otis Servizi SRL, Italy
  • Pratt & Whitney, U. S. A.
  • PT Citas Otis Elevator, Indonesia
  • Seral Otis Industria Metalurgica Ltda, Chile
  • Sigma Elevator (HK) Limited, Hong Kong
  • Suzhou Jiangnan Express Elevator Company Limited, China
  • Tatung Otis Elevator Company, Taiwan
  • United Technologies Corporation Pvt. Limited, India
  • UTC Fire and Security India Limited, India
  • Xizi Otis Elevator Company Limited., China
  • Zao Shcherbinka Otis Lift, Russia
  • Zardoya Otis S.A., Spain
  • Zayani Otis Elevator Company W.L.L., Bahrain

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15000000

Equity Shares

Rs.10/- each

Rs. 150.000 Million

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11808222

Equity Shares

Rs.10/- each

Rs. 118.082 Million

 

 

 

 

 

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

118.082

118.082

118.082

(b) Reserves & Surplus

6875.547

6774.970

5875.644

(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)

6993.629

6893.052

5993.726

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

78.508

78.861

78.977

(d) long-term provisions

2368.444

2098.948

1786.031

Total Non-current Liabilities (3)

2446.952

2177.809

1865.008

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

0.000

0.000

0.000

(b) Trade payables

1050.381

1262.395

1255.136

(c) Other current liabilities

4316.085

3995.745

4277.556

(d) Short-term provisions

1699.035

918.623

273.285

Total Current Liabilities (4)

7065.501

6176.763

5805.977

 

 

 

 

TOTAL

16506.082

15247.624

13664.711

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

864.051

451.033

450.658

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

56.904

352.143

115.177

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

68.628

112.200

112.200

(c) Deferred tax assets (net)

977.713

855.529

695.505

(d)  Long-term Loan and Advances

1628.042

1650.381

0.000

(e) Other Non-current assets

1.353

2.370

930.597

Total Non-Current Assets

3596.691

3423.656

2304.137

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

43.573

0.000

0.000

(b) Inventories

886.993

1168.897

1242.770

(c) Trade receivables

2455.086

2270.682

1492.230

(d) Cash and cash equivalents

8627.563

7447.467

7554.437

(e) Short-term loans and advances

779.395

863.083

1018.599

(f) Other current assets

116.781

73.839

52.538

Total Current Assets

12909.391

11823.968

11360.574

 

 

 

 

TOTAL

16506.082

15247.624

13664.711

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

9726.141

10280.307

8048.041

 

Other Income

910.399

890.624

737.011

 

TOTAL (A)

10636.540

11170.931

8785.052

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

4133.707

4412.875

3156.311

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

18.207

0.755

(6.627)

 

Employees benefits expense

2016.036

1941.570

1744.492

 

Other expenses

3335.503

3304.323

3802.770

 

Exceptional items

116.312

0.000

0.000

 

TOTAL (B)

9619.765

9659.523

8696.946

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

1016.775

1511.408

88.106

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

0.000

0.000

0.000

 

 

 

 

 

 

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

1016.775

1511.408

88.106

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

97.201

96.772

76.233

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

919.574

1414.636

11.873

 

 

 

 

 

Less

TAX (H)

335.471

377.160

-94.245

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

584.103

1037.476

106.118

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD 

6650.160

5854.580

5899.420

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

Proposed Dividend

413.290

118.080

118.080

 

Dividend Distribution tax on above

70.230

20.060

19.160

 

Transfer to General Reserve

58.410

103.750

13.720

 

Balance Carried to the B/S

6692.333

6650.160

5854.580

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

0.684

0.232

0.011

 

Export Services

28.159

5.309

4.188

 

Other income (Freigh, insurance, etc.)

0.684

0.020

0.000

 

Other income

11.581

14.646

0.000

 

TOTAL EARNINGS

41.108

20.207

4.199

 

 

 

 

 

 

IMPORTS

 

 

 

 

Components and Stores parts

1063.559

1070.704

824.952

 

Capital Goods

4.292

35.366

218.912

 

TOTAL IMPORTS

1067.851

1106.070

1043.864

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

49.47

87.86

8.99

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

NA

NA

Net cash flows from (used in) operations

1234.473

316.438

1621.984

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

6.01

10.09

1.32

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

10.45

14.70

1.09

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

5.97

10.16

0.09

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.13

0.21

0.00

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.00

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.83

1.91

1.96

 

 

 

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

118.082

118.082

118.082

Reserves & Surplus

5875.644

6774.970

6875.547

Money received against share warrants

0.000

0.000

0.000

 Share Application money pending allotment

0.000

0.000

0.000

Net worth

5993.726

6893.052

6993.629

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

0.000

0.000

0.000

Total borrowings

0.000

0.000

0.000

Debt/Equity ratio

0.000

0.000

0.000

 

 

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

8048.041

10280.307

9726.141

 

 

27.737

-5.391

 

 

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

8048.041

10280.307

9726.141

Profit

106.118

1037.476

584.103

 

1.32%

10.09%

6.01%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

Yes

12

Voter Id Card No. of Proprietor / Partners

Yes

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

No

21

Banking facility details

No

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

LITIGATION DETAILS

 

CASE DETAILS

BENCH:-BOMBAY

 

Presentation Date:-

10/02/2014

 

Lodging No.:-

ITXAL/328/2014

Filing Date:-

10/02/2014

Reg. No.:-

ITXA/758/2014

Reg. Date:-

04/04/2014

 

 

Petitioner:-

THE COMMISSIONER OF INCOME TAX- 9

 

Respondent:-

M/S. OTIS ELEVATOR CO. (I) LTD.

 

Petn.Adv.:-

TEJVEER SINGH MASTAN SINGH (I3678)

 

District:-

MUMBAI

 

 

Bench:-

DIVISION

Status:-

Pre-Admission

Category:-

TAX APPEALS

 

Next Date:-

15/12/2015

Stage:-

 

Coram:-

ACCORDING TO SITTING LIST

 

ACCORDING TO SITTING LIST

 

 

Act :-

Income Tax Act, 1961

Under Section:-

260A

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

OPERATIONS

 

FINANCIALS

 

Sales/Income from operations decreased to 9,878 million in 2013-14 as compared to Rs. 10,481 million in 2012-13, reflecting decline of 5.8%. Though new equipment sales have declined, service business has shown good revenue growth. Along with sales drop, profit in current year has also reduced to 584 million from 1,037 million in 2012-13.

 

During the year, the Company took some strategic initiatives to improve its volumes and profitability. The effect of these changes is expected to bring in results in the coming years.

 

BUSINESS

 

The current fiscal year saw a GDP growth rate of 4.7%. Growth in the residential segment continues. Sentiments are upbeat as they expect political stability to drive positive sentiment around investments. The real estate sector is expected to benefit from these developments driving sales and new launches. With commercial activity slated to pick up, the real estate sector will witness further momentum. Infrastructure is an area that should see increased investments in the near future.

 

Bangalore factory expansion has been completed and they have a capacity to manufacture 10,000 units now in India. They are working on various new product launches from the factory which will enable us to increase factory productivity and lesser dependence on imported products.

 

As you are aware, the Company’s revenue accrues from three major business segments-New Equipment sales, Service and Modernisation:

 

NEW EQUIPMENT SALES

 

With an outlook steadfast growth, the company aims to improve share in this segment. Investments have been lined up to expand the product portfolio and improve the foot-print to enhance turnkey execution and service capabilities .The company will continue to leverage its access to world class technologies and processes.

 

SERVICE

 

The Company continues to be number one company in terms of service portfolio in India. Today they have a network of 84 service centres spread across India, serving more than 280 towns. This infrastructure support results in speedy and efficient response to customers. The Company has registered growth in service revenues in the year.

 

MODERNISATION (MOD)

 

The Company initiated several measures to focus on modernisation of its old installed equipment base and providing them with elevators of the latest technology. This is a potential area for their growth. The Company has set up a dedicated organisation MOD Engineering and MOD CLC to support modernisation business with MOD packages with latest technology.

                            

CURRENT OUTLOOK:

 

The GDP is expected to reach a level of 5.4 - 5.9 % in the year 2014 - 2015. India is the second largest elevator-escalator market in the world after China, expected to grow at a healthy rate of 8- 10% YoY for the next 5 years. The Company management is closely monitoring and reviewing these changes to suitably modify its business strategy in accordance with the changing market environment. The Company continues to promote green products which will have a positive environmental impact. The company is confident of forging ahead without compromising on its core values, while sustaining its brand-value with its customers.

 

 

CONTINGENT LIABILITIES (AS ON 31.03.2014)

(Rs. In Million)

PARTICULARS

31.03.2014

31.03.2013

Claims against the Company not acknowledged as debt

(i) Income-tax matters

126.077

126.077

Matters decided against the Company in respect of which the

Company has preferrred an appeal

 

 

Sales tax matters

 

 

Show Cause Notices

367.064

367.064

Demand Notices

2107.196

2068.012

Assessed Sales Tax liabilities of the Company not acknowledged as debts and not provided for, in respect of which the Company is in appeal pertains to litigations/ disputes with various Sales Tax Authorities. Based on opinion received from legal counsel, the Management is of view that the Company does not expect an outflow in this regard.

Excise and Service Tax matters

 

 

Show Cause Notices

3553.444

3296.357

Demand Notices

[inclusive of Service Tax Demand/Show Cause Notices of Rs.17.547 Million (Previous Year Rs. 1958.890 Million)

679.459

2613.874

Excise and Service Tax liabilities of the Company not acknowledged as debts and not provided for, in respect of

which the Company is in appeal pertains to litigations/ disputes with various Excise and Service Tax Authorities. Based on opinion received from legal counsel, the Management is of view that the Company has strong grounds of appeal and does not foresee any outflow in this regard.

Litigations / claims against the Company by customers /

ex-employees / general public.

242.320

224.655

 

FIXED ASSETS

 

Tangible assets

 

  • Land
  • Buildings
  • Plant and equipment
  • Furniture and fixtures
  • Vehicles
  • Office equipment
  • Computer equipments
  • Other equipments
  • Leasehold improvements

 

Intangible assets

 

  • Computer software

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 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.64.96

UK Pound

1

Rs.99.73

Euro

1

Rs.71.84

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT 

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

KVT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILITY

1~10

8

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

YES

--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

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

80

 

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.