MIRA INFORM REPORT
|
Report No. : |
340454 |
|
Report Date : |
10.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT BIJLEE LIMITED |
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|
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|
Registered
Office : |
Electric Mansion, 6th Floor, Appasaheb Marathe Marg, Prabhadevi,
Mumbai – 400025, Maharashtra |
|
Tel. No.: |
91-22-24306237 |
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Country : |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
22.06.1946 |
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Com. Reg. No.: |
11-005017 |
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Capital Investment
/ Paid-up Capital : |
Rs. 56.516 Million |
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CIN No.: [Company Identification
No.] |
L31300MH1946PLC005017 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMB11178G / MUMB11087G |
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PAN No.: [Permanent Account No.] |
AAACB2900K |
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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
: |
Manufacturing and Selling of Transformers, Motors, Drives,
Elevator Systems and Execution of Turnkey Projects. |
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No. of Employees
: |
1378 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 7600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject was incorporated in the year 1946 and it is into manufacturing
and selling of transformers, motors, elevator systems and drives. Subject is an old and well-established company having fine track
record. For the financial year ended 2015, company possesses moderate
operational performance and it has incurred losses from its operational
activities. However, rating takes into account of extensive industry experience of
promoters in transformer and motor manufacturing business supported by
well-established track record of business operations along with healthy
financial base and sound liquidity profile of the company. 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.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limits=A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
November 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non-fund based limits=A1 |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
November 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2013.
INFORMATION DENIED
Management Non Co-operative (91-22-24306237)
LOCATIONS
|
Registered Office : |
Electric Mansion, 6th Floor, Appasaheb Marathe Marg,
Prabhadevi, Mumbai – 400025, Maharashtra, India |
|
Tel. No.: |
91-22-24306237/ 24306071 |
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Fax No.: |
91-22-24370624/ 24312532 |
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E-Mail : |
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Website : |
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Factory 1 / Western Regional Office : |
No. 2, MIDC, Thane Belapur Road, Airoli, Navi Mumbai – 400708, Maharashtra, India |
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Tel. No.: |
91-22-27637200 |
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Fax No.: |
91-22-27637443 |
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Factory 2 : |
Post Box No 100, Belapur Road, Kalwa, Thane 400601, Maharashtra, India |
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Tel. No.: |
91-22-27600401/ 11 |
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Fax No.: |
91-22-27600454 |
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Regional Offices: |
Northern Region 1st Floor,
7-B, Rajindra Park, Pusa Road, New Delhi - 110060, India Tel. No. :
91-11-25816931/ 6932/ 6933 Fax No. :
91-11-25816940 Ramanashree Chambers, 37, Lady Curzon Road, Bangalore - 560001, Karnataka, India Tel. No. : 91-80-25592646 Fax No. : 91-80-25592823
Eastern Region Siddha Fifth Avenue, Space No. 3B, 3rd Floor, 179 Anandapur, Kolkata - 700107, West Bengal, India Tel. No. : 91-33-2433 2382 Swastik
Chambers, 5th Floor, Junction of Sion Trombay Road and C.S.T. Road, Chembur,
Mumbai - 400071, Maharashtra, India Tel. No. : 91-22-61457200 Fax No. : 91-22-61457255 No. 2, MIDC, Thane Belapur Road, Airoli, Navi Mumbai - 400708, Maharashtra, India Tel. No. : 91-22-27637200 Fax No. : 91-22-27637443 |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. Prakash V. Mehta |
|
Designation : |
Chairman and Non-Executive Independent Director |
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|
Name : |
Mr. Nikhil J. Danani |
|
Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. Nakul P. Mehta |
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Designation : |
Vice Chairman and Managing
Director |
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Name : |
Mr. Shome N. Danani |
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Designation : |
Executive Director |
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Name : |
Mr. Sanjiv N. Shah |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Jairaj C. Thacker |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Ravishanker Prasad |
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Designation : |
Non-Executive Director |
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Name : |
Ms. Mahnaz A. Curmally |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Rajeshwar R. Bajaaj |
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Designation : |
Non-Executive Independent Director |
SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
829742 |
14.68 |
|
|
1191492 |
21.08 |
|
|
2021234 |
35.76 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
2021234 |
35.76 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
48434 |
0.86 |
|
|
862062 |
15.25 |
|
|
14950 |
0.26 |
|
|
925446 |
16.38 |
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|
|
|
|
|
471581 |
8.34 |
|
|
|
|
|
Individual shareholders holding nominal share capital up
to Rs.0.100 Million |
1749414 |
30.95 |
|
Individual shareholders holding nominal share capital in
excess of Rs.0.100 Million |
316594 |
5.60 |
|
|
167291 |
2.96 |
|
|
167291 |
2.96 |
|
|
2704880 |
47.86 |
|
Total Public shareholding (B) |
3630326 |
64.24 |
|
Total (A)+(B) |
5651560 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
5651560 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Transformers, Motors, Drives,
Elevator Systems and Execution of Turnkey Projects. |
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Products : |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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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 : |
1378 (Approximately) |
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Bankers : |
· Bank of India · IDBI Bank Limited · Citibank N.A. · Standard Chartered Bank ·
HDFC Bank Limited |
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Facilities : |
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Auditors : |
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Name
: |
Dalal and Shah Chartered Accountants |
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Solicitors : |
Malvi Ranchoddas and Company |
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Collaborators : |
Not Divulged |
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Membership : |
Not Divulged |
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Related Parties : |
· Danmet Chemicals Private Limited ·
Nasivan Investments Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 Million |
|
200000 |
12% Non-Convertible Redeemable
Cumulative Preference Shares |
Rs. 100/- each |
Rs. 80.000 Million |
|
|
|
|
|
|
|
Total |
|
Rs. 100.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5651560 |
Equity Shares |
Rs. 10/- each |
Rs. 56.516 Million |
|
|
|
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|
Details of
shares held by shareholders holding more than 5% of the aggregate shares in the
Company
|
Equity Shares |
Number
of Shares |
% of holding |
|
Life Insurance Corporation of India |
487901 |
8.63 |
|
Danmet Chemicals Private Limited |
459777 |
8.14 |
|
Gayatri Education Medical and Research
Foundation Private Limited |
450165 |
7.97 |
Rights, preferences and restrictions
attached to shares
Equity Shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in an Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF
FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
56.516 |
56.516 |
56.516 |
|
(b) Reserves & Surplus |
2596.994 |
2951.327 |
3064.266 |
|
(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) |
2653.510 |
3007.843 |
3120.782 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
112.405 |
152.710 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
14.420 |
|
(c) Other long term
liabilities |
10.380 |
9.893 |
10.440 |
|
(d) long-term
provisions |
25.268 |
28.069 |
27.302 |
|
Total Non-current
Liabilities (3) |
35.648 |
150.367 |
204.872 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1333.993 |
598.476 |
650.473 |
|
(b) Trade
payables |
1548.059 |
1445.278 |
1389.359 |
|
(c) Other
current liabilities |
332.909 |
467.426 |
381.892 |
|
(d) Short-term
provisions |
89.056 |
87.096 |
144.198 |
|
Total Current
Liabilities (4) |
3304.017 |
2598.276 |
2565.922 |
|
|
|
|
|
|
TOTAL |
5993.175 |
5756.486 |
5891.576 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
832.561 |
933.576 |
951.146 |
|
(ii)
Intangible Assets |
4.449 |
6.470 |
17.663 |
|
(iii)
Capital work-in-progress |
5.187 |
6.565 |
24.906 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
81.167 |
40.233 |
40.233 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1206.136 |
243.565 |
559.857 |
|
(e) Other
Non-current assets |
28.820 |
1.361 |
8.189 |
|
Total Non-Current
Assets |
2158.320 |
1231.770 |
1601.994 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
82.534 |
200.109 |
|
(b)
Inventories |
911.194 |
1217.047 |
952.375 |
|
(c) Trade
receivables |
2123.048 |
1582.039 |
1884.539 |
|
(d) Cash
and cash equivalents |
220.733 |
59.236 |
75.231 |
|
(e)
Short-term loans and advances |
558.357 |
1458.949 |
1051.517 |
|
(f) Other
current assets |
21.523 |
124.911 |
125.811 |
|
Total
Current Assets |
3834.855 |
4524.716 |
4289.582 |
|
|
|
|
|
|
TOTAL |
5993.175 |
5756.486 |
5891.576 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
6108.870 |
4864.815 |
5425.273 |
|
|
|
|
Other Income |
181.804 |
181.498 |
174.534 |
|
|
|
|
TOTAL (A) |
6290.674 |
5046.313 |
5599.807 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of materials
consumed |
4427.537 |
3737.559 |
4068.492 |
|
|
|
|
Purchases of
stock in trade |
250.348 |
193.651 |
136.135 |
|
|
|
|
Changes in
inventories |
247.785 |
(216.335) |
3.697 |
|
|
|
|
Employee benefits |
750.577 |
715.596 |
672.949 |
|
|
|
|
Other expenses |
639.802 |
509.692 |
569.268 |
|
|
|
|
TOTAL (B) |
6316.049 |
4940.163 |
5450.541 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(25.375) |
106.150 |
149.266 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
199.505 |
130.955 |
124.206 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
(224.880) |
(24.805) |
25.060 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
119.434 |
109.407 |
106.993 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(344.314) |
(134.212) |
(81.933) |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
(3.819) |
(21.273) |
(33.250) |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(340.495) |
(112.939) |
(48.683) |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
504.190 |
617.129 |
682.342 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION ADJUSTMENT |
13.838 |
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Dividend |
0.000 |
0.000 |
14.129 |
|
|
|
|
Tax on Dividend |
0.000 |
0.000 |
2.401 |
|
|
|
BALANCE CARRIED
TO THE B/S |
149.857 |
504.190 |
617.129 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Direct Exports on FOB basis |
397.172 |
110.293 |
231.455 |
|
|
|
TOTAL EARNINGS |
397.172 |
110.293 |
231.455 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
336.285 |
254.963 |
244.275 |
|
|
|
|
Components and Spare parts |
1.905 |
0.305 |
0.018 |
|
|
|
|
Capital Goods |
0.172 |
0.674 |
9.084 |
|
|
|
TOTAL IMPORTS |
338.362 |
255.942 |
253.377 |
||
|
|
|
|
|
|
||
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(60.25) |
(19.98) |
(8.61) |
||
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current maturities of long term fixed deposits |
0.000 |
103.685 |
42.271 |
|
Cash generated from operations |
(402.159) |
76.217 |
NA |
|
Net Cash inflow/(outflow) from Operating Activities |
(406.798) |
59.208 |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin PAT / Sales |
(%) |
(5.57) |
(2.32) |
(0.90) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
(0.42) |
2.18 |
2.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
(5.83) |
(2.35) |
(1.41) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.13) |
(0.04) |
(0.03) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.50 |
0.27 |
0.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.16 |
1.74 |
1.67 |
STOCK
PRICES
|
Face Value |
Rs.10.00/- |
|
Market Value |
Rs.533.00/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Share Capital |
56.516 |
56.516 |
56.516 |
|
Reserves & Surplus |
3064.266 |
2951.327 |
2596.994 |
|
Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
3120.782 |
3007.843 |
2653.510 |
|
|
|
|
|
|
long-term borrowings |
152.710 |
112.405 |
0.000 |
|
Short term borrowings |
650.473 |
598.476 |
1333.993 |
|
Current Maturities of Long term debt |
42.271 |
103.685 |
0.000 |
|
Total
borrowings |
845.454 |
814.566 |
1333.993 |
|
Debt/Equity
ratio |
0.271 |
0.271 |
0.503 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales |
5425.273 |
4864.815 |
6108.870 |
|
|
|
(10.331) |
25.573 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales
|
5425.273 |
4864.815 |
6108.870 |
|
Profit |
(48.683) |
(112.939) |
(340.495) |
|
|
(0.90%) |
(2.32%) |
(5.57%) |
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 |
No |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
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 |
Yes |
|
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 |
GENERAL OUTLOOK OF
INDUSTRY AND ECONOMY:
The economic
recovery in their business segments has not materialized as anticipated. This
has adversely affected the demand for their products and continues to put
immense pressure on their margins. Given the pace of economic revival that they
have seen during the past year, they expect a subdued business environment at
least during the course of the financial year 2015-16. They would continue to
take appropriate internal measures to mitigate the impact of the continued
adverse macro factors.
During the year,
there has been consistent focus to maintain their market shares although this
has, in some cases, resulted in lower margins. As they await the impending
capex cycle and the associated recovery of the business cycle, they will take
efforts to balance their market presence while maintaining margins. To ensure
that they do not lose sight of growth potential in the future, they have
maintained their focus on building capabilities that will help us build better
products. They continue to diligently focus on working capital optimization and
collection recovery efforts. The Drives and Automation as well as the Elevator
Systems business continue to do well.
OPERATIONS:
For the third successive
year, the economy and market conditions were dominated by demand gap, low price
realization, negative growth in the capital goods industry, and low levels of
investment by government/industry and delays in project execution. The Company
had to maintain its operations against this background.
Income from Sales
and Services for the Company increased from Rs.5374.876 Million in the previous
year to Rs.6678.890 Million, a rise of 24%. However, the position of
over-supply and intense competition took a toll on margins. Consequently in
spite of increase in revenue, Company incurred a loss before exceptional items
and tax of Rs.344.314 Million as against a loss before exceptional items and
tax of Rs.134.212 Million in the previous year.
FINANCE:
Tight money market conditions, elongated working capital cycle and substantial erosion in profitability resulted in negative cash flows from operations and caused an increase of Rs.68.550 Million in finance cost for the year. The Company ensured that there was no default in meeting its obligation and maintained a smooth flow of operations. The Free Reserves of the Company as on March 31, 2015 decreased by Rs.354.333 Million to Rs.2596.994 Million. During the year Rs.0.924 Million was transferred to the Investor Education and Protection Fund.
MANAGEMENT DISCUSSION AND ANALYSIS
The expected
revival of the Indian economy continues to elude us and it now appears to be
delayed at least by a year or two. That implies that the next two years would
be challenging for the Company’s businesses. What is especially concerning is
the lack of revival in the demand and pricing situation in the Power Systems
business of subject.
They began last
year with the hope of an uptick in the investment environment in the country
supported by a declining interest rate cycle. Unfortunately, neither has
happened to a degree that improves business confidence. This has resulted in
continued demand pressures for the core products of subject viz. Transformers
and
Industrial Motors.
The decline in the pace of interest rate reduction has resulted in additional
pressure on the working capital requirements and profit margins.
Even in these
difficult times, there are certain bright spots in subject. The Elevator
Systems and Drives and Automation businesses continue to grow well. They have
successfully achieved the ISO 14001:2004 certification for Environmental
Management System and OHSAS 18001:2007 certification for Occupational Health
and Safety Management for their manufacturing facilities. The Transformer
testing lab has also received the prestigious NABL accreditation.
While they believe
that further downside seems limited, it would be prudent to tone down the
timeline expectations of an impending economic recovery and prepare for a more
long drawn revival cycle. To that extent, they will continue to build
capabilities, aggressively maintain their market positions and look for all
possible means to keep costs under control.
SEGMENT ANALYSIS
The Company operates
in two Business Segments, viz. “Power Systems” and “Industrial Systems”.
POWER SYSTEMS:
The Power Systems
segment comprises primarily of Power Transformers upto 200 MVA, 220 KV voltage
class and EPC projects for electrical substations upto 400 KV. Their
Transformer business is heavily dependent on investments in the Transmission
networks in the country.
The business
environment, therefore, is linked to the capex budgets and infrastructure
growth plans of all State Power Utilities and the Power Grid Corporation of
India Limited (PGCIL). While they continue to see tenders being floated across
these customers, the demand is still far below the supply capacity of the
industry. This continues to put tremendous pressure on margins in an
increasingly competitive business environment. They have consciously
diversified their customer base to reduce dependence on Power Utilities.
However, these segments are expected to revive along with the broader economic
recovery over the years.
They continue to
adopt a conservative approach to building their projects order book to ensure
that margins, project readiness for timely completion and collection of dues do
not drag the performance and profitability of the business. So far this seems
to be working well.
INDUSTRIAL
SYSTEMS:
This segment
comprises the marketing, engineering, design and manufacture of a full range of
industrial motors, synchronous gearless machines for elevators, and AC variable
speed drives and drive systems. The Industrial Motors business continues to
experience lower demand resulting in higher competitive intensity. They have,
however, maintained their margins and market share in this difficult demand
environment. They hope to see a recovery in this segment in the later part of
next year. They have substantially improved their supply chain to capitalize on
any demand recovery as it materializes. They also continue to concentrate on
market reach, and understanding their end customers better. The Medium Voltage
motor business has gained traction and continues to grow over time. They have
also developed a range of high efficiency motors that will prepare us to
compete with the best in the industry.
The Drives
business caters to highly engineered application segments. They continue to
build on their leadership in niche applications and aspire to repeat that
performance in other customer segments as well. The Elevator Systems business
has also maintained a healthy growth trajectory and they are prepared to
capitalize on any further improvements in the business prospects.
FUTURE OUTLOOK
The worst seems to
have been factored in and any further downside seems to be limited. They expect
tough times to continue for a few more quarters before the first signs of a
sustainable revival are visible.
LITIGATION
DETAILS:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNSECURED LOAN:
|
Particulars |
31.03.2015 Rs.
In Million |
31.03.2014 Rs.
In Million |
|
Long Term
Borrowings |
|
|
|
Fixed Deposits |
|
|
|
– From Related Party |
0.000 |
3.250 |
|
– From Public |
0.000 |
109.155 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Short Term Loans from Banks |
700.000 |
190.000 |
|
|
|
|
|
Total |
700.000 |
302.405 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 30.06.2015
Rs. In Million
|
Particulars |
30.06.2015(Unaudited) |
|
|
|
|
Net Sales/ Income from Operations |
1300.400 |
|
Other Operating Income |
17.500 |
|
Total income
from operation |
1317.900 |
|
Expenditure |
|
|
a) Cost of Materials Consumed |
920.000 |
|
b) Purchase of Stock in trade |
53.300 |
|
c) Change in inventories of finished goods, work in progress & stock in trade |
38.100 |
|
d) Employee benefits expense |
188.800 |
|
e) Depreciation and amortization expense |
25.900 |
|
f) Other expenses |
128.400 |
|
Total |
1354.500 |
|
Profit from
operations before Other Income, Interest and Exceptional Items (1-2) |
(36.600) |
|
Other Income |
37.000 |
|
Profit before Interest and Exceptional Items (3+4) |
0.400 |
|
Interest |
48.700 |
|
Profit after Interest but before Exceptional Items (5-6) |
(48.300) |
|
Exceptional Items |
0.000 |
|
Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8) |
(48.300) |
|
Tax expense |
0.000 |
|
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10) |
(48.300) |
|
Extraordinary Items (Net of tax expense) |
0.000 |
|
Net Profit (+)/ Loss (-) for the period |
(48.300) |
|
Paid-up equity share capital (Face value of Rs.10/- each) |
56.500 |
|
Reserves excluding Revaluation Reserves as per balance sheet of
previous accounting year |
|
|
Earnings per
share |
(8.55) |
|
|
|
|
Public Shareholding |
|
|
- No. of shares |
3630326 |
|
- Percentage of shareholding |
64.24 |
|
Promoters and promoter group shareholding |
|
|
Pledged/ Encumbered |
|
|
- No. of shares |
-- |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
-- |
|
- Percentage of shares (as a % of the total share capital of the company) |
-- |
|
Non-encumbered |
|
|
- No. of shares |
2021234 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
|
- Percentage of shares (as a % of the total share capital of the company) |
35.76 |
|
|
|
|
|
|
|
INVESTOR
COMPLAINTS |
|
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
2 |
|
Disposed during the quarter |
2 |
|
Remaining unresolved at the end of the quarter |
-- |
UNAUDITED SEGMENT
WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In
Million)
|
Particulars |
30.06.2015 (
Unaudited) |
|
|
|
|
1.
Segment Revenue |
|
|
a. Power systems |
625.000 |
|
b. Industrial systems |
675.400 |
|
Net
Sales |
1300.400 |
|
|
|
|
2.
Segment Result (Profit
before Interest and Tax) |
|
|
a. Power systems |
(2.300) |
|
b. Industrial systems |
40.800 |
|
Total |
38.500 |
|
|
|
|
Less
: (i) Interest |
48.700 |
|
(ii) Unallocable expenditure
net off un-allocable income |
38.100 |
|
Profit
before Tax |
(48.300) |
|
|
|
|
3.
Capital Employed |
|
|
a. Power systems |
1457.800 |
|
b. Industrial systems |
781.600 |
|
Total |
2239.400 |
|
Add :
Unallocable assets less liabilities |
365.800 |
|
Total
capital employed in the company |
2605.200 |
NOTES:
1. The above statement of Financial results has been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on 24th July, 2O15. The Statutory Auditors have carried out Limited Review of the above Financial Results.
2. Previous year’s/period’s figures have been regrouped/recast/reclassified, wherever necessary.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
80026583 |
20/05/2010 * |
3,950,000,000.00 |
Bank of India (Lead Bank) |
Mumbai
Large Corporate Branch, BOI Bldg, 4th Floor, 70-80, M.G. Road, Fort,, Mumbai,
Maharashtra - |
A86787124 |
*Date of modification Charges
FIXED ASSETS:
Tangible Assets
· Leasehold Land
· Buildings Incl. Roads
· Plant and Machinery
· Furniture and Fixtures
· Office Equipment
· Motor Vehicles
Intangible Assets
· Application Software
· Technical Knowhow
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 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.66.29 |
|
|
1 |
Rs.101.89 |
|
Euro |
1 |
Rs.73.98 |
INFORMATION DETAILS
|
Information Gathered
by : |
GYT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILITY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
52 |
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.