MIRA INFORM REPORT
|
Report No. : |
341291 |
|
Report Date : |
18.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
ESAB INDIA LIMITED |
|
|
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|
Registered
Office : |
Plot No. 13, 3rd Main Road, Industrial Estate, Ambattur,
Chennai - 600 058, Tamil Nadu |
|
Tel. No.: |
91-44-43404632/31/30 |
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Country : |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
10.11.1897 |
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Com. Reg. No.: |
18-058738 |
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Capital
Investment / Paid-up Capital : |
Rs. 153. 900 Million |
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CIN No.: [Company Identification
No.] |
L29299TN1987PLC058738 |
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IEC No.: |
Not Available |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEE00299F CHEE03931E CHEE03860D |
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PAN No.: [Permanent Account No.] |
AAACE0861G AAACE0861G |
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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
: |
Subject is engaged in the business of Welding Consumables such as Welding Electrodes, Copper Coated Wires, Flux Cored Wires and Welding Fluxes and of Welding Equipment i.e. Welding Machines and Cutting Equipment. |
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|
|
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No. of Employees
: |
587 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
|
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 |
|
Maximum Credit Limit : |
USD 8300000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject was incorporated in the year 1987 and it is into welding business.
Subject provides welding consumables and welding equipment. Major revenue of
the company comes from welding consumables which contains 73% of total
revenue and 27% of revenue comes from welding equipment. Subject develops products for shipbuilding, petrochemical,
construction, transport, offshore, energy and repair and maintenance
industries. For the financial year ended 2015, ESAB India has registered growth of
27.26% on total revenue of Rs. 5633.100 Million against the previous year
revenue of Rs. 4426.400 Million. However net profit of company has declined
by 28.62 % but company has maintained satisfactory net profit margins at
4.19%. Company possesses healthy operating efficiencies backed by its well
established track record of business operations along with well experienced
management team. Rating also reflects company’s strong financial risk profile supported
by adequate net worth base along with zero debt balance sheet and healthy
debt protection metrics and gearing ratio. 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 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
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 DENIED BY
|
Name : |
Mr. Ramnjam |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-44-43404632/31/30 |
|
Date : |
14.09.2015 |
LOCATIONS
|
Registered
Office : |
Plot No. 13, 3rd Main Road, Industrial Estate, Ambattur, Chennai - 600 058, Tamil Nadu, India |
|
Tel. No.: |
91-44-43404632/31/30 |
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E-Mail : |
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Website : |
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Factory 1 : |
B -28, MIDC Industrial Area, Nagpur – 441501, Maharashtra, India |
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Tel. No.: |
91-44-42281100 |
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Factory 2 : |
Welding Consumables Factory, B. T. Road, Khardah, PO : B.
D. Sopan, North 24- Parganas, Kolkata - 743 121, West |
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Factory 3 : |
Equipment Factory, P-41, Taratala Road, Kolkata - 700 088, India |
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Tel. No.: |
91-33-24014517 / 18 / 19 |
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Fax No.: |
91-33-24011880 / 4427 |
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Factory 4: |
Welding Consumables Factory, Plot No. 13, 3rd
Main Road, Industrial Estate, Ambattur, Chennai - 600 058, India |
|
Tel. No.: |
91-44-43404611 |
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Fax No.: |
91-44-26253108 |
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Factory 5: |
Welding Consumables Factory, B-28, MIDC Industrial Area, Kalmeshwar, Nagpur - 441 501, Maharashtra, India |
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Tel. No.: |
91-7118-271337 / 462 / 463 |
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Fax No.: |
91-7118-271461 |
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Factory 6 : |
Equipment Factory, G-22, SIPCOT Industrial park, Irungattukottai,
Pennalur Post, Sriperumbudur Taluk, Kanchipuram District – 602105, Tamil
Nadu, India |
|
Tel. No.: |
91-44-43192047 / 48 |
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Fax No.: |
91-44-43192049 |
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Regional Office |
Located at:- Kolkata, Mumbai, New Delhi, Nagpur, Chennai |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Kalyana Sundaram Vaidyanathan |
|
Designation : |
Director |
|
Address : |
"Bhaggyam Elegance", Flat 3A, III Floor, 29/10,, TTK Road, 1st Cross Street, Alwarpet, Chennai - 600018, Tamil Nadu, India |
|
DIN No.: |
00063692 |
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|
Name : |
Sudhir Chand |
|
Designation : |
Director |
|
Address : |
Flat No. 10, Belvedere Estate, 8/8 Alipore Road, Kolkata - 700027, West Bengal, India |
|
DIN No.: |
01385201 |
|
|
|
|
Name : |
Vikram Krishanlal Tandon |
|
Designation : |
Director |
|
Address : |
57A Friends Colony East, New Delhi - 110065, Delhi, India |
|
DIN No.: |
01727251 |
|
|
|
|
Name : |
Daniel Alexis Pryor |
|
Designation : |
Nominee Director |
|
Address : |
3630, Prospect Street, NW, Washington - 20007, United States Of America |
|
DIN No.: |
05305621 |
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|
|
|
Name : |
Rohit Gambhir |
|
Designation : |
Managing Director |
|
Address : |
Flat No. A 3, III Floor,, No. 94, Satyadev Avenue Jain Sagarika, MRC Nagar, Chennai - 600028, Tamil Nadu, India |
|
DIN No.: |
06686250 |
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|
|
|
Name : |
Sabitha Rao |
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Designation : |
Director |
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Address : |
B-3, Shangrila Apts, No-136, Karpagam Avenue, Chennai - 600028, Tamil Nadu, India |
|
DIN No.: |
06908122 |
KEY EXECUTIVES
|
Name : |
Mr. Mohan Bhuvarahan |
|
Designation : |
Chief Financial Officer |
|
Address : |
No 2, Park View Road, United India Colony, Kodambakkam, Chennai - 600024, Tamil Nadu, India |
|
Date of Birth/Age : |
49 |
|
Qualification : |
B. Com., ACA., ACS., |
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Experience : |
28 Years |
|
PAN No.: |
AEYPM0517L |
|
|
|
|
Name : |
Mr. S Venkatakrishnan |
|
Designation : |
Company Secretary |
|
Address : |
"Sree Chakra", Flat 1, Door No. 205, Ramaswamy Salai, K.K. Nagar, Chennai - 600078, Tamil Nadu, India |
|
PAN No.: |
AADPV3150B |
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|
|
|
Name : |
Manish Prasad |
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Designation : |
Vice President Asia CBS |
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Date of Birth/Age : |
50 |
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Qualification : |
B.E. Mech |
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Experience : |
27 Years |
AUDIT COMMITTEE :
|
Name of the Member : |
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KEY MANAGEMENT
PERSONNEL:
|
Name of the Member : |
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STAKEHOLDERS
RELATIONSHIP COMMITTEE:
|
Name of the Member : |
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NOMINATION AND
REMUNERATION COMMITTEE:
|
Name of the Member |
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RISK MANAGEMENT
COMMITTEE:
|
Name of the Member |
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SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
11347960 |
73.72 |
|
|
11347960 |
73.72 |
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Total shareholding of Promoter and Promoter Group (A) |
11347960 |
73.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
118453 |
0.77 |
|
|
2514 |
0.02 |
|
|
213863 |
1.39 |
|
|
334830 |
2.18 |
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|
|
|
|
|
443291 |
2.88 |
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|
|
|
|
|
1614242 |
10.49 |
|
|
84364 |
0.55 |
|
|
1568333 |
10.19 |
|
Others |
863 |
0.01 |
|
Clearing Members |
6350 |
0.04 |
|
Others |
1561120 |
10.14 |
|
|
3710230 |
24.10 |
|
Total Public shareholding (B) |
4045060 |
26.28 |
|
Total (A)+(B) |
15393020 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.000 |
|
(1) Promoter and Promoter Group |
0 |
0.00 |
|
(2) Public |
0 |
0.00 |
|
Sub Total |
0 |
0.00 |
|
Total (A)+(B)+(C) |
15393020 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of Welding Consumables such as Welding Electrodes, Copper Coated Wires, Flux Cored Wires and Welding Fluxes and of Welding Equipment i.e. Welding Machines and Cutting Equipment. |
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Products : |
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Brand Names : |
Not Available |
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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 : |
587 (Approximately) |
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Bankers : |
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Facilities : |
-- |
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Statutory Auditors : |
Messer’s S. R. Batliboi and Associates, LLP |
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|
Address : |
6th & 7th Floor, "A" Block, Tidel
Park, (Module 601, 701 and 702) No. 4, Rajiv Gandhi Salai, Taramani, Chennai -
600 113, Tamil Nadu, India |
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Secretarial Auditor : |
Messer’s V. Mahesh and Associates |
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Address : |
Chennai, Tamil Nadu, India |
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Cost Auditor : |
Messer’s Geeyes and Company |
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Collaborators : |
Not Divulged |
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Membership : |
Not Divulged |
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Holding Companies : |
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Related parties
with whom transactions have taken place during the year (Significant
influence) : |
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CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 190.000 Million |
|
3,000,000 |
Unclassified Shares |
Rs. 10/- each |
Rs. 30.000 Million |
|
|
Total |
|
Rs. 220.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15,393,020 |
Equity Shares |
Rs. 10/- each |
Rs. 153. 900 Million |
Reconciliation of
the number of shares
As at March 31, 2015
|
Equity Shares |
Number
of Shares |
|
Shares outstanding at the beginning of the year |
15,393,020 |
|
Shares issued during the year |
-- |
|
Shares
outstanding at the end of the year |
15,393,020 |
Rights, preferences
and restrictions attached to equity shares
The Company has only one class of equity shares having par
value of Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting. During the period ended March
31, 2015, the amount of per share dividend recognized as distributions to
equity shareholders was Re. 1/-(December 31, 2013: Re.1/-).
In the event of liquidation of the Company, the holders of
equity shares will 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.
Shares held by
subsidiaries of ultimate holding company / holding and / or their subsidiaries
/ associates
|
Particulars |
As at March 31, 2015 |
|
Equity shares of
Rs. 10/- each fully paid up held by |
|
|
Subsidiary companies of Colfax Corporation, the ultimate
holding company: |
|
|
5,743,200 |
|
5,604,760 |
|
Total |
11,347,960 |
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
ESAB Holdings Limited,
UK |
5,743,200 |
37.31% |
|
Exelvia Group India
B.V, Netherlands |
5,604,760 |
36.41% |
|
Acacia Partners, LP,
Mauritius |
821,140 |
5.33% |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF
FUNDS |
31.03.2015 (15 Months) |
31.12.2013 (12 Months) |
31.12.2012 (12 Months) |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
153.900 |
153.900 |
153.900 |
|
(b) Reserves & Surplus |
2736.600 |
2518.800 |
2205.600 |
|
(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) |
2890.500 |
2672.700 |
2359.500 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
32.000 |
33.000 |
|
(c) Other long term
liabilities |
11.900 |
11.700 |
11.400 |
|
(d) long-term
provisions |
25.600 |
23.300 |
42.800 |
|
Total Non-current
Liabilities (3) |
37.500 |
67.000 |
87.200 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
552.100 |
525.800 |
438.000 |
|
(c) Other
current liabilities |
107.600 |
120.800 |
177.500 |
|
(d) Short-term
provisions |
99.200 |
116.500 |
248.600 |
|
Total Current
Liabilities (4) |
758.900 |
763.100 |
864.100 |
|
|
|
|
|
|
TOTAL |
3686.900 |
3502.800 |
3310.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i) Tangible
assets |
815.900 |
930.800 |
959.400 |
|
(ii)
Intangible Assets |
14.500 |
28.600 |
27.800 |
|
(iii)
Capital work-in-progress |
12.400 |
30.500 |
2.500 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
3.600 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
6.200 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
156.800 |
143.100 |
125.900 |
|
(e) Other
Non-current assets |
23.600 |
20.000 |
0.000 |
|
Total Non-Current Assets |
1029.400 |
1153.000 |
1119.200 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
1218.900 |
1047.600 |
777.700 |
|
(b)
Inventories |
539.600 |
613.900 |
674.200 |
|
(c) Trade
receivables |
437.000 |
273.800 |
229.000 |
|
(d) Cash
and cash equivalents |
349.300 |
326.200 |
407.300 |
|
(e)
Short-term loans and advances |
106.600 |
81.600 |
84.500 |
|
(f) Other
current assets |
6.100 |
6.700 |
18.900 |
|
Total
Current Assets |
2657.500 |
2349.800 |
2191.600 |
|
|
|
|
|
|
TOTAL |
3686.900 |
3502.800 |
3310.800 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 (15 Months) |
31.12.2013 (12 Months) |
31.12.2012 (12 Months) |
||
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SALES |
|
|
|
||
|
|
|
Income |
5518.500 |
4355.500 |
5035.200 |
|
|
|
|
Other Income |
114.600 |
70.900 |
51.400 |
|
|
|
|
TOTAL SALES |
5633.100 |
4426.400 |
5086.600 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
Cost of Materials Consumed |
2909.800 |
2307.100 |
2841.900 |
||
|
|
Purchase of Stock-in-trade |
581.300 |
406.000 |
440.300 |
||
|
|
Changes in Inventories of finished goods, work-in-progress and
stock-in-trade |
77.400 |
52.400 |
(61.600) |
||
|
|
Employee Benefits Expenses |
558.400 |
425.300 |
417.500 |
||
|
|
Other Expenses |
886.500 |
112.300 |
0.000 |
||
|
|
Exceptional Items |
176.100 |
648.500 |
788.700 |
||
|
|
TOTAL EXPENSES |
5189.500 |
3951.600 |
4426.800 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
443.600 |
474.800 |
659.800 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES |
0.000 |
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION |
443.600 |
474.800 |
659.800 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION |
137.500 |
0.000 |
118.200 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX |
306.100 |
474.800 |
541.600 |
||
|
|
|
|
|
|
||
|
Less |
TAX |
69.700 |
143.600 |
163.900 |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX |
236.400 |
331.200 |
377.700 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Export Earnings |
200.100 |
156.100 |
124.900 |
|
|
|
|
Commission Earnings |
68.200 |
38.700 |
36.000 |
|
|
|
|
Other Earnings |
0.300 |
0.300 |
1.100 |
|
|
|
TOTAL EARNINGS |
268.600 |
195.100 |
162.000 |
||
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|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
247.700 |
168.300 |
260.100 |
|
|
|
|
Stores & Spares |
277.100 |
247.300 |
198.400 |
|
|
|
|
Capital Goods |
38.800 |
72.500 |
11.000 |
|
|
|
TOTAL IMPORTS |
563.600 |
488.100 |
469.500 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
15.36 |
21.52 |
24.540 |
||
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.12.2013 |
31.12.2012 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
282.700 |
534.700 |
645.200 |
|
Net cash flow from / (used in) operating activities |
164.200 |
350.500 |
461.200 |
QUARTERLY
RESULTS
(Rs. In Million)
|
Particulars |
30.06.2015 (Unaudited) |
|
|
|
|
Net sales |
1089.700 |
|
Total Expenditure |
967.200 |
|
PBIDT (Excluding Other Income) |
122.500 |
|
Other income |
15.400 |
|
Operating Profit |
137.900 |
|
Interest |
-- |
|
Exceptional Items |
-- |
|
PBDT |
137.900 |
|
Depreciation |
24.000 |
|
Profit Before Tax |
113.900 |
|
Tax |
35.800 |
|
Profit after tax |
78.100 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.12.2013 |
31.12.2012 |
|
Net Profit Margin PAT / Sales |
(%) |
4.28 |
7.60 |
7.50 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
8.04 |
10.90 |
13.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
8.34 |
13.67 |
16.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.18 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.50 |
3.08 |
2.54 |
STOCK
PRICES
|
Face Value |
Rs. 10.00 |
|
Market Value |
Rs. 540.00 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.12.2012 |
31.12.2013 |
31.03.2015 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Share Capital |
153.900 |
153.900 |
153.900 |
|
Reserves & Surplus |
2205.600 |
2518.800 |
2736.600 |
|
Net
worth |
2359.500 |
2672.700 |
2890.500 |
|
|
|
|
|
|
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 |
31.12.2012 |
31.12.2013 |
31.03.2015 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales |
5518.500 |
4355.500 |
5035.200 |
|
|
|
(21.075) |
15.606 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2012 |
31.12.2013 |
31.03.2015 |
|
|
Rs.
In Million |
Rs.
In Million |
Rs.
In Million |
|
Sales
|
5518.500 |
4355.500 |
5035.200 |
|
Profit |
377.700 |
331.200 |
236.400 |
|
|
6.84% |
7.60% |
4.69% |
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 |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Directors |
No |
|
11 |
Pan Card No. of Directors |
No |
|
12 |
Voter Id Card No. of Directors |
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 |
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 |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
COMPANY OVERVIEW:
ESAB India Limited (“the Company”) was incorporated on November
10, 1987 and commenced its business operations in July 1988. The Company is
engaged in the business of welding consumables i.e. welding electrodes, copper
coated wires, flux cored wires and welding fluxes and of welding equipment i.e.
welding machines and cutting equipment.
OUTLOOK:
The Business outlook appears relatively positive for the
medium term if the policy changes and infrastructure spends take effect. We
also bank on improved liquidity and lower financing costs for customers to
achieve better turns on working capital and improved margins. The short term
outlook is getting increasingly harder to predict as there are multiple
interwoven elements including many that are not localized to India.
A favorable tax regime and implementation of GST can have
significant changes in the way businesses work on supply chain and logistics
with potential short term disruptions during the transition phase. In summary,
execution by the Government is key and even if a part of the promises translate
to actions, there would be reasonably positive implications for the economy and
the Company.
The company new product launches and a potentially leaner
organization would augur well for our sales and profitability. The company
targeting to grow our service activities to cushion the impact of any sustained
difficulties in the manufacturing segment. Margins and working capital are
expected to be under strong pressures with over capacities, aggressive pricing
and credit terms by competitors.
FINANCIAL PERFORMANCE:
Income and
Expenditure:
Net Sales (Including Service Income) grew by 1.4% on a
comparable basis in a small but significant reversal of declining sales trends
witnessed from 2011. This was achieved in an extremely challenging environment.
Relatively better performances in the R & M business and Exports that were
aided by a weakening Rupee, helped in softening the impact of declines in all
other product groups. Other income was higher on a comparable basis by about
29.3% due to increase in dividend income from mutual funds, redemption gains on
mutual funds and foreign exchange gains. Cash surpluses were deployed in debt
and liquid funds.
Material costs as a percentage to sales increased from 63.5%
to 64.7% due to a combination of poorer product mix, increases in steel costs
and price pressures, especially on mass market products. Overheads including
employee costs were higher at 26.2% of Net Sales and Service Income as against
24.7% in 2013 on a comparable basis. The increases were primarily on account
of;
- Employee costs higher by 5% on a comparable basis driven by retirement benefits costs increases based on actuarial valuations.
- Higher costs on transportation outwards and sales promotion expenses in line with changes in terms of trade and customer mix.
Depreciation was lower by 2% as compared to 2013 with
reduced capital expenditure and aging Plants. The Company has continued to
provide for Depreciation at rates aligned to the erstwhile Schedule XIV of the
Companies Act, 1956. The rates are different from those recommended in Schedule
II of the Companies Act, 2013. The decision to continue with the same rates as
before is based on a technical evaluation of useful life of assets.
BALANCE SHEET:
The Company weathered a difficult year with a focus on fundamentals
and efficiencies. Despite strong pressures on working capital, the company
closed the year with healthy cash flows and prudent deployment of resources on
capital expenditure. Capital Expenditure was about Rs. 74.100 Million as
against 93.200 Million in 2013 and projects with productivity enhancements and
Quality improvements were prioritized to conserve resources.
Current Investments and Cash grew by 14.2% over 2013 due to internal
accruals amidst strong pressures on working capital. Inventories were lower by
about 12% in value terms due to strong improvements in supply chain and
forecasting process. Measured in terms of days to sales, Inventory fell from 52
days in 2013 to 45 days in 2014-15. Trade receivables were up from 23 days in
2013 to 36 days. This is reflective of higher sales to end customers and
increases in credit cycles to trade.
CORPORATE GOVERNANCE:
In terms of Clause 49 of the Listing Agreement with the stock
exchanges a Corporate Governance Report is made part of this Annual report. A
certificate from the Statutory Auditors of the Company regarding compliance of
the conditions stipulated for Corporate Governance under clause 49 of the
Listing Agreement is attached to this report.
The Company has also adopted the mandatory policy on Sexual
Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act,
2013. Employees have been sensitized on the provisions of this enactment and
the Company has also constituted an internal complaints committee with effect
from 30 October, 2013 to deal with complaints if any, under the said Act. There
were no complaints received during the year to report.
The declaration by the Managing Director addressed to the
members of the Company pursuant to Clause 49 of the Listing Agreement regarding
adherence to the Code of Conduct by the Members of the Board and by the Members
of the Senior Management Personnel of the Company is also attached to this
Report.
TECHNOLOGY ABSORPTION:
- Extrusion lines revamped
to produce high quality electrodes with minimum energy requirements.
- Auto packing line modified
for increased productivity.
- Conversion to Ultra sonic
cleaning from acid cleaning resulting in reduction of effluent.
SEGMENT REPORTING:
The Company’s operating businesses are organized and managed
separately according to the nature of products and services provided, with each
segment representing a strategic business unit that offers different products
and serves different markets. The analysis of geographical segments is based on
the areas in which major operating divisions of the Company operate. Common
allocable costs are allocated to each segment according to the relative
contribution of each segment to the total common costs. Unallocated items
include general corporate income and expense items which are not allocated to
any business segment.
The Company prepares its segment information in conformity
with the accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.
INDEX OF CHARGE:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10500768 |
19/03/2014 |
130,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI
BAPAT MARG, LOWER PAREL W |
C05464029 |
|
2 |
10384878 |
24/02/2015 * |
240,000,000.00 |
AXIS BANK LIMITED |
CBB, KARUMUTHU NILAYAM,
NO.192 ANNA SALAI, CHENNA |
C47672738 |
*Date of modification Charges
CONTINGENT LIABILITIES:
|
PARTICULARS |
31.03.2015 |
31.12.2013 |
|
Contingent liabilities |
|
|
|
·
Claims against
the Company not acknowledged as debts* |
82.400 |
82.400 |
|
·
Tax matters in
dispute under appeal (excluding possible interest)** |
291.300 |
261.000 |
|
·
Bank guarantees
outstanding |
106.000 |
48.000 |
|
Commitments |
|
|
|
·
Estimated
amount of contracts remaining to be executed on capital account and not provided
for (net of advances) |
20.700 |
24.800 |
|
·
Estimated
amount of contracts remaining to be executed on account of purchase of raw
materials |
12.600 |
15.200 |
|
Total |
513.000 |
431.400 |
·
The Company is
contesting the demands and the Management, including its legal counsel, believe
that it is possible, but not probable, the action will succeed and accordingly
no provision for liability has been recognised in the financial statements.
·
The Company is
contesting the demands and the Management, including its tax advisors, believe
that it is possible, but not probable, the action will succeed and accordingly
no provision for liability has been recognised in the financial statements.
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
30TH JUNE 2015
(Rs. In Million)
|
Particulars |
Half Year Ended 30.06.2015 |
|
|
UNAUDITED |
|
1.
Income from operations |
|
|
a) Net sales/ Income from operation (net of excise duty) |
1079.700 |
|
b) Other operating income |
10.000 |
|
Total
income from Operations(net) |
1089.7 |
|
2.Expenditure |
|
|
a) Cost of material consumed |
599.700 |
|
b) Purchases of stock in trade |
100.300 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(27.600) |
|
d) Employees benefit expenses |
108.600 |
|
e) Depreciation and amortization expenses |
24.000 |
|
f) Power and Fuel |
0.000 |
|
g) Other expenditure |
186.200 |
|
Total expenses |
991.200 |
|
3. Profit from operations before other income and
financial costs |
98.500 |
|
4. Other income |
15.400 |
|
5. Profit from ordinary activities before finance costs |
113.900 |
|
6. Finance costs |
0.000 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
113.900 |
|
10.Tax expenses |
35.800 |
|
11.Net Profit / (Loss) from
ordinary activities after tax (9-10) |
78.100 |
|
12.Extraordinary Items (net of tax expense) |
78.100 |
|
13.Net Profit / (Loss) for the period (11 -12) |
78.100 |
|
14.Paid-up equity share capital (Nominal value Rs.10/- per share) |
153.900 |
|
(a) Basic and diluted |
5.08 |
|
|
|
|
A. Particulars of shareholding |
|
|
1. Public Shareholding |
|
|
- Number of shares |
4045060 |
|
- Percentage of shareholding |
26.28% |
|
2. Promoters and Promoters group Shareholding- |
- |
|
a) Pledged /Encumbered |
|
|
Number of shares |
- |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
- |
|
Percentage of shares (as a % of total share capital of the
company) |
- |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
11347960 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100% |
|
Percentage of shares (as a % of total share capital of the
company) |
73.72% |
|
|
|
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
NIL |
|
Receiving during the quarter |
9 |
|
Disposed of during the quarter |
9 |
|
Remaining unreserved at the end of the quarter |
NIL |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT
FOR THE QUARTER ENDED 30TH JUNE 2015
(Rs. In Million)
|
Particulars |
3
Months Ended |
|
|
30.06.2015 |
|
|
(UNAUDITED
) |
|
1. Segment
Revenue |
|
|
a)
Consumables |
792.200 |
|
b)
Equipments |
287.500 |
|
Total segment
revenue |
1079.700 |
|
Total income
from operations (net sales) |
1079.700 |
|
|
|
|
2. Segment
Results |
|
|
a)
Consumables |
110.700 |
|
b)
Equipments |
24.600 |
|
Total segment
results |
135.300 |
|
Less: (i)
Exceptional Items |
|
|
a)
Consumables |
- |
|
b)
Equipments |
- |
|
Other
un-allocable expenditure net off un-allocable other operating income |
21.400 |
|
Total Profit Before
Tax |
113.900 |
|
|
|
|
3. Capital
Employed |
|
|
(Segment Assets
– Segment Liabilities) |
|
|
a)
Consumables |
1162.900 |
|
b)
Equipments |
390.400 |
|
Total
Capital Employed |
1553.300 |
|
Add
: Unallocable Assets Less Liabilities |
1415.300 |
|
|
|
|
Total
Capital Employed In the Company |
2968.600 |
NOTES:
- The above results of the Company were reviewed by the Audit Committee and approved by the Board of
Directors on August 6, 2015.
- The statutory auditors have carried out a limited review of the results for the quarter ended June 30, 2015 and have issued an unqualified report.
- Following a review of manufacturing capacities of the Company's consumable Plant locations, the Board of Directors at its meeting held on May 26, 2015 approved the discontinuance of operations of the Consumables Plant at Khardah, Kolkata. The Board also approved shifting some of its manufacturing and related equipment to other such plant locations. The Board also approved the sale, disposal or transfer of the remaining moveable and immoveable assets pertaining to the plant at Khardah, Kolkata subject to the approval of the shareholders at the forthcoming Annual General Meeting. This has necessitated an Exceptional Expenditure of Rs. Nil (quarter ended March 31, 2015 Rs. 1,163) arising out of Impairment loss on fixed assets and one time settlement made to contractors at Khardah Plant.
- The figures for the quarter ended March 31, 2015 are the balancing figures between audited figures in respect of the full 15 months from January 1, 2014 to March 31, 2015 and the unaudited published year to date figures for the fourth quarter ended December 31, 2014, which were subjected to a limited review.
- During the prior period, the Company has changed the year end from December to March. Hence the audited results are for the 15 months from January 1, 2014 - March 31, 2015.
- The Company has, based on a technical review and assessment by the management, decided to adopt the existing useful life for all its assets block as against the useful life recommended in the Schedule II of the Companies Act, 2013, since the Company believes that the estimates followed are appropriate.
- Previous period's figures have been regrouped or reclassified wherever necessary.
FIXED ASSETS:
TANGIBLE FIXED
ASSETS:
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
INTANGIBLE FIXED ASSETS:
·
Computer software
·
Technical know how
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. 65.93 |
|
|
1 |
Rs. 102.75 |
|
Euro |
1 |
Rs. 75.13 |
INFORMATION DETAILS
|
Information
Gathered by : |
KMN |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
SYL |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILITY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
76 |
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.