MIRA INFORM REPORT

Report No. :	342056
Report Date :	23.09.2015

IDENTIFICATION DETAILS

Name :	ELECON ENGINEERING COMPANY LIMITED
Registered Office :	Anand, Sujitra Road, Vallabh Vidyanagar – 388120, Gujarat
Tel. No.:	91-2692-230017
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	11.01.1960
Com. Reg. No.:	04-001082
Capital Investment / Paid-up Capital :	Rs.217.872 Million
CIN No.: [Company Identification No.]	L29259GJ1960PLC001082
IEC No.:	0888003978
TAN No.: [Tax Deduction & Collection Account No.]	BRDE00200E
PAN No.: [Permanent Account No.]	AAACE4644D
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Gears
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is the flagship company of Elecon Group. It was incorporated in the year 1960 and is located at Vallabh Vidyanagar, Gujarat. It has fine track record. The company possesses a healthy profile marked by decent networth base along with fair. Liquidity and profitability. The rating continue to take into account company’s dominant position in domestic industrial gears and material handling equipment industries. The ratings also take into consideration, an acceptable share price of Rs.71.75/- recorded by the company as against a face value of Rs.2.00 as on September 22, 2015. Trade relations are reported to be fair. Business is active. Payment terms are reported to be regular and as per commitment. The company can be considered normal for business dealing 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

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = A
Rating Explanation	Have adequate degree of safety and carry low credit risk
Date	13.10.2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A1
Rating Explanation	Have very strong degree of safety and carry lowest credit risk
Date	13.10.2014

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. M. B. Makwana
Designation :	Senior Officer – Accounts
Contact No.:	91-2692-238701
Date :	22.09.2015

LOCATIONS

Registered Office :	Anand, Sujitra Road, Vallabh Vidyanagar – 388120, Gujarat, India
Tel. No.:	91-2692-230017/ 238701 / 02 / 03 / 04 / 227109 / 230166
Mobile No.:	91-9909917150 (Mr. Hemendra C. Shah)
Fax No.:	91-2692-236457/ 227484 / 227020 / 227484
E-Mail :	rajatjain@elecom.com mbmarkwana@elecon.com davithalpara@elecon.com infogear@elecon.com
Website :	http://www.elecon.co.in
Location :	Owned
Locality :	Industrial
Corporate Office:	Apeejay House, 1st Floor, Dinshaw Vachha Road, Churchgate, Mumbai-400020, Maharashtra, India
Factory 1:	Gear Division Anand – Sojitra Road, Vallabh Vidyanagar – 388120, Gujarat, India
Factory 2:	Alternate Energy Division Anand – Sojitra Road, Vallabh Vidyanagar – 388120, Gujarat, India
Factory 3 :	Foundry Division Post Box 6, Anand – Sojitra Road, Vallabh Vidyanagar – 388120, Guajarati, India
Tel. No.:	91-2692-236469 / 227546

DIRECTORS

AS ON 31.03.2015

Name :	Mr. Prayasvin B. Patel
Designation :	Chairman and Managing Director
Date of Birth/Age :	55 Years
Qualification :	B. E. (Mechanical), M.B.A. (U.S.A)
Experience :	37 Years
Date of Appointment :	01.07.1983
Name :	Mr. Prashant Amin
Designation :	Director
Name :	Mr. Pradip M. Patel
Designation :	Director
Name :	Mr. Chirayu R. Amin
Designation :	Director
Name :	Mr. Hasmuklal Parikh
Designation :	Director
Name :	Mr. Jal R. Patel
Designation :	Director
Name :	Mr. Jai S Diwanji
Designation :	Director
Name :	Dr. Sonal V. Ambani
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Hemendra C. Shah
Designation :	Chief Financial Officer
Name :	Mr. Paresh M. Shukla
Designation :	Company Secretary
Date of Appointment :	Mr. M. B. Makwana
PAN No:	Senior Officer – Accounts

SHAREHOLDING PATTERN

AS ON 30.06.2015

Category of Shareholder	Total No. of Shares held in Dematerialized Form	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3188874	2.93
Bodies Corporate	59165553	54.31
Any Others (Specify)	928492	0.85
Trusts	928492	0.85
Sub Total	63282919	58.09
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	63282919	58.09
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	3683362	3.38
Financial Institutions / Banks	181150	0.19
Central Government / State Government(s)	278648	0.26
Foreign Institutional Investors	1086275	1.00
Sub Total	5229435	4.82
(2) Non-Institutions
Bodies Corporate	5095299	4.71
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	23705018	24.27
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	5936586	5.62
Any Others (Specify)	2718966	2.50
Hindu Undivided Families	373514	0.34
Clearing Members	927652	0.85
Non Resident Indians	938977	0.86
NRIs/Foreign Individuals	300	0.00
Trusts	1000	0.00
Market Maker	56362	0.05
Others	421161	0.39
Sub Total	37455869	37.09
Total Public shareholding (B)	42685304	41.91
Total (A)+(B)	105968223	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1)	0	0.00
(2)	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	105968223	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Gears
Products :	Gears
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Cash and Credit (30,60,90 Days)
Purchasing :	Cash and Credit (30,60,90 Days)

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 :

End Users and OEMs

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 :

700 (Approximately)

Bankers :

• Bank of Baroda
• EXIM Bank of India
• Axis Bank Limited
• HDFC Bank Limited
• IDBI Bank Limited
• Standard Chartered Bank
• IndusInd Bank Limited

Banker Name	State Bank of India
Branch Address	Vidyanagar, Gujarat, India
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

Facilities :

(Rs. In Million)

SECURED LOAN	As on 31.03.2015	As on 31.03.2014
LONG TERM BORROWING
11% Non-Convertible Debentures from Bank	0.000	250.000
Term Loans From Banks	596.115	405.399
Corporate Loans From Banks	296.500	0.000
SHORT TERM BORROWING
Loans Repayable on Demand:
Working Capital Loans From Banks	1296.275	1450.703
Total	2188.890	2106.102

Notes:

(a) Nature of Securities For Term Loans & Corporate Loans

i) Term Loans [(b) above] obtained from Indusind Bank Limited is secured by exclusive charge by way of Hypothecation on specific assets for which payments were made out of the term loan. The same is further, secured by Corporate

Guarantee of Elecon EPC Projects Limited, since been repaid in full.

Term Loans [(b) above] obtained from GE Capital Limited is secured by exclusive charge by way of Hypothecation on specific assets. The same is further, secured by exclusive charge over commercial property of Emtici Engineering Limited at Pune, Maharashtra and Corporate Guarantee of Emtici Engineering Limited.

ii) Corporate Loans [(c) above] granted by Consortium of Banks consisting of State Bank of India (As Lead Bank), Bank of Baroda, Export Import Bank of India and IDBI Bank are secured by :-

1) First Pari passu charge with all corporate loan lenders, over fixed assets of the company including Plant and Machinery but excluding assets specifically charged to other Term Lenders.

2) First pari passu charge Registered Mortgage over land of the company.

3) Second pari passu hypothecation charge over the Current Assets of the company.

4) The same is, secured by Corporate Guarantee of Elecon EPC Projects Limited and Prayas Engineering Limited. Also, Corporate Guarantee of Emtici Engineering Limited was provided as security, however the same is waived by some of the consortium members including Lead Bank, SBI and other member banks are in the process of necessary approval for the waiver.

5) Non Disposal Undertaking for 13 land parcels situated at village Mogri bearing Survey No.114, 153,154,155/P 157/P and 159/P and land situated at Village Karamsad bearing survey No. 344,345,346/2,347/2,348/3 and 371/2.

Financial Institution:	SBICAP Trustee Company Limited, 202, Maker Tower 'E', Cuffe Parade, Mumbai-400005, Maharashtra, India GE Capital Services India, 401, 402, 4th Floor, Aggarwal Millennium Tower, E-1,2,3, Netaji Subhash Place, Wazirpur, New Delhi - 110034, India 3I Infotech Trusteeship Services Limited, 3rd To 6th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai-400703, Maharashtra, India
Auditors :
Name :	Thacker Butala Desai Chartered Accountant
Tel No.:	91-2637-258616/ 257207
Fax:	91-2637-242802
Address :	G-21-22, Tanariri Partment, Asha Baug Society, Near Dushia Tlao, Navsari - 396445, Gujarat, India
Subsidiary Company :	Elecon EPC Projects Limited Elecon Transmission International Limited, Mauritius Elecon Singapore Pte. Limited Elecon Middle East FZCO
Step Down Subsidiaries :	Benzlers Systems AB, Sweden Radicon Transmission UK Limited, U.K. AB Benzlers, Sweden Elecon USA Transmission Limited, USA Benzlers Transmission A.S., Denmark Benzlers Antriebstechnik GmbH, Germany Benzlers TBA B.V., Netherlands Benzlers Antriebstechnik Gesmbh, Austria OY Benzlers AB, Finland Benzlers SDN BDH Malaysia Benzlers Italia s.r.l.
Associates and Joint Ventures :	Eimco Elecon (India) Limited (Joint Venture) Elecon Australia Private Limited (Associate) Elecon Africa Private Limited (Associate) Elecon Engineering (Suzhou) Co. Limited, China (Associate) Elecon Peripherals Limited (Associate)
Collaborators:	Sandvik Mining and Const. S.E.A. Private Limited Sandvik Asia Private Limited
Enterprises over which (d) or (e) above have significant influence :	Bipra Investments and Trusts Private Limited Devkishan Investments Private Limited K. B. Investments Private Limited Elecon Information Technology Limited Emtici Engineering Limited Prayas Engineering Limited Specialty Wood Pack Private Limited Power Build Limited Kirloskar Power Build Gears Limited Akaaish Mechatronics Limited Madhubhan Prayas Resorts Limited Wizard Fincap Limited Eimco Elecon Electricals Limited Excel EPC Projects Private Limited Aishpra Properties Private Limited Akaaipra Infracon Private Limited BIP Buildcon Private Limited Madhuban Heights Private Limited MTC Buildcon Private Limited Aakaaish Investment Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
225000000	Equity Shares	Rs.2 /- each	Rs.450.000 Million
25000000	Cumulative Redeemable Preference Shares	Rs.2 /- each	Rs.50.000 Million
	Total		Rs.500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
108935843	Equity Shares	Rs.2 /- each	Rs.217.872 Million

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period :

Equity Shares	Number of Shares
Outstanding at the beginning of the Year	108935843
Add : Issued During the year	--
Outstanding at the end of the Year	108935843

Rights, Preferences and Restrictions attached to Equity Shares :

The company has only one class of Equity Shares having a par value of Rs.2/- 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 the ensuing 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

Details of Shareholders holding more than 5 percent Equity Shares:

Name of Shareholder	Number of Shares	% holding
Emtici Engineering Limited	26775669	24.58%
Prayas Engineering Limited	11166394	10.25%
K. B. Investments Private Limited	100851125	9.25%

Aggregate number of equity shares allotted as fully paid up pursuant to contract without payment being received in cash Bonus Shares issued and shares bought back during the period of 5 years immediately preceding the financial year:-

Equity Shares	Number of Shares
Equity Share allotted as fully paid up shares by virtue of schemes of arrangement	16074333

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	217.872	217.872	217.872
(b) Reserves & Surplus	4886.025	4699.070	4543.499
(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)	5103.897	4916.942	4761.371
(3) Non-Current Liabilities
(a) long-term borrowings	892.615	655.399	931.483
(b) Deferred tax liabilities (Net)	328.032	391.048	416.079
(c) Other long term liabilities	10.683	10.677	9.979
(d) long-term provisions	24.316	19.606	25.095
Total Non-current Liabilities (3)	1255.646	1076.730	1382.636
(4) Current Liabilities
(a) Short term borrowings	1384.441	1662.371	1180.527
(b) Trade payables	2087.044	2085.603	2531.044
(c) Other current liabilities	562.509	730.335	775.067
(d) Short-term provisions	162.512	152.167	161.532
Total Current Liabilities (4)	4196.506	4630.476	4648.170
TOTAL	10556.049	10624.148	10792.177
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3290.671	3679.857	4067.723
(ii) Intangible Assets	45.615	58.472	40.253
(iii) Capital work-in-progress	19.921	67.090	77.888
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1992.415	370.688	370.688
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	154.028	414.775	239.691
(e) Other Non-current assets	7.931	7.959	7.959
Total Non-Current Assets	5510.581	4598.841	4804.202
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1302.226	1212.503	1486.515
(c) Trade receivables	2267.562	1686.205	1412.416
(d) Cash and cash equivalents	30.568	43.604	74.942
(e) Short-term loans and advances	169.199	138.609	738.465
(f) Other current assets	1275.913	2944.386	2275.637
Total Current Assets	5045.468	6025.307	5987.975
TOTAL	10556.049	10624.148	10792.177

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	5031.924	5012.319	5952.070
	Other Income	226.774	175.537	111.083
	TOTAL (A)	5258.698	5187.856	6063.153
Less	EXPENSES
	Cost of Materials Consumed	2156.318	1951.295	2784.101
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	128.857	269.737	232.360
	manufacturing expenses and erection charges	484.171	481.593	534.759
	Research and development expenses	21.817	39.468	0.000
	Employees benefits expense	369.171	432.183	545.413
	Other expenses	806.555	837.346	828.335
	Exceptional items	0.000	0.000	266.829
	TOTAL (B)	3966.889	4011.622	5191.797
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	1291.809	1176.234	871.356
Less	FINANCIAL EXPENSES (D)	299.503	332.478	300.816
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	992.306	843.756	570.540
Less/ Add	DEPRECIATION/ AMORTISATION (F)	515.837	454.222	419.888
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	476.469	389.534	150.652
Less	TAX (H)	144.611	115.236	65.402
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	331.858	274.298	85.250
Less	APPROPRIATIONS
	Transfer to General Reserve	150.000	50.000	10.000
	Dividend	119.829	108.936	108.936
	Tax on Dividend	25.074	9.791	18.514
	Total (M)	294.903	168.727	137.450
	Balance Carried to the B/S (J+K+L-M)	36.955	105.571	-52.200
	EARNINGS IN FOREIGN CURRENCY
	Export of Goods calculated on F.O.B. basis Reduction Gears	731.577	598.894	589.888
	Servicing Income	0.000	1.120	1.189
	TOTAL EARNINGS	731.577	600.014	591.077
	IMPORTS
	Raw Materials	276.383	36.097	451.733
	Components and Stores parts	14.319	36.907	34.693
	Capital Goods	0.579	5.584	191.982
	TOTAL IMPORTS	291.281	78.588	678.408
	Earnings / (Loss) Per Share (Rs.)	3.05	2.52	0.78

Expected Sales (2015-2016): Rs.5500.000 Million

The above information has been parted by Mr. M.B. Makwana (Senior Officer- Accounts.)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	210.264	267.586	437.893
Cash generated from operations	1996.385	1801.817	2168.613
Net Cash From Operating Activities	1773.781	1596.969	2015.116

QUARTERLY RESULTS

Particulars	30.06.2015 (Unaudited)
	1^st Quarter
Net Sales	976.070
Total Expenditure	746.660
PBIDT (Excl OI)	229.410
Other Income	23.380
Operating Profit	252.790
Interest	79.420
Exceptional Items	NA
PBDT	173.370
Depreciation	116.030
Profit Before Tax	57.340
Tax	21.670
Provisions and contingencies	NA
Profit After Tax	35.670
Extraordinary Items	NA
Prior Period Expenses	NA
Other Adjustments	NA
Net Profit	35.670

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	6.60	5.47	1.43
Operating Profit Margin (PBIDT/Sales)	(%)	25.67	23.47	14.64
Return on Total Assets (PBT/Total Assets}	(%)	5.58	3.82	1.46
Return on Investment (ROI) (PBT/Networth)		0.09	0.08	0.03
Debt Equity Ratio (Total Debt /Networth)		0.49	0.53	0.54
Current Ratio (Current Asset/Current Liability)		1.20	1.30	1.29

STOCK PRICES

Face Value	Rs.2.00/-
Market Value	Rs.71.75/-

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	217.872	217.872	217.872
Reserves & Surplus	4543.499	4699.070	4886.025
Net worth	4761.371	4916.942	5103.897
long-term borrowings	931.483	655.399	892.615
Short term borrowings	1180.527	1662.371	1384.441
Current maturities of long-term debts	437.893	267.586	210.264
Total borrowings	2549.903	2585.356	2487.320
Debt/Equity ratio	0.536	0.526	0.487

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	5952.070	5012.319	5031.924
		(15.789)	0.391

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	5952.070	5012.319	5031.924
Profit	85.250	274.298	331.858
	1.43%	5.47%	6.60%

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 Proprietor / Partners / Directors	Yes
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	Yes
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	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

HIGH COURT OF GUJARAT

CIVIL APPLICATION (STAMP NUMBER) (SCA AND SA) No. 5496 of 1993

In SPECIAL CIVIL APPLICATION/ 2925 / 1984 (DISPOSED) On : 21/11/1994

Status : PENDING

( Converted from : C/ST/2708/2014 )

CCIN No : 001005199305496

Last Listing Date:

Coram

S.NO.	Name of the Petitioner	Advocate On Record
1 2 3 4	UNION OF INDIA THE COLLECTOR OF CUSTOMS AND CENTRAL EXCISE THE ASSTT. COLLECTOR OF CENTRAL EXCISE THE SUPERINTENDENT CENTRAL EXCISE	MR KETAN A DAVE for: Petitioner(s) 1

S.NO.	Name of the Respondent	Advocate On Record
1	ELECON ENGINEERING COMPANY LIMITED

Presented On				: 16.03.1993		Registered On		: 16.03.1993
Bench Category				: DIVISION BENCH		District		: KHEDA
Case Originated From				:THROUGH HIS/HER/THEIR ADVOCATE		Listed		: 9 times
StageName		FOR ORDERS
OFFICE DETAILS
S. No.	Filing Date		Document Name		Advocate Name		Court Fee on Document		Document Details
1	15.08.1993		VAKALATNAMA		MR KETAN A DAVE for: Petitioner(s) 1		4		MR KETAN A DAVE:1

OUTLOOK:

As per a recent survey the global gear manufacturing market is expected to grow at a CAGR of 5.33% over the

Period 2014-19. One of the key factors contributing to this growth is the growth in emerging markets. Another

Study expects global gear demand to grow to US $217 billion by 2018

On the export front, driven by strong demand for engineering goods, exports from India registered a double digit growth at 10.22% to touch US $26.4 billion in FY 2014. This growth can be credited to the robust expansion in shipments of aircraft, spacecraft parts

and automobiles. Engineering exports from India are expected to cross US $70 billion in FY 15 registering a growth of 15% over the previous fiscal, as demand in key markets such as the US and the UAE is on the rise. Apart from these traditional markets, markets in Eastern and Central European countries such as Poland also hold huge promise.

The engineering sector is a growing market. Current spending on engineering services is projected to increase to US $1.1 trillion by 2020. With development in associated sectors such as automotive, industrial goods and infrastructure, coupled with a well-developed technical human resources pool, engineering exports are expected to touch US $120 billion by 2015

The Company is confident that the economic upturn could lead to a pipeline of opportunities that could be mined to register a strong growth in the fiscal 2016

REVIEW OF OPERATIONS:

FINANCIAL PERFORMANCE:

For the year ended on March 31, 2015, the Company has achieved a Turnover of Rs.5031.924 Million as against

Rs.5012.319 Million in the previous year, representing a marginal increase in Turnover by 0.40%.

For the year ended on March 31, 2015, the Company has achieved Earnings before Interest (Finance Cost), Depreciation and Amortization and Tax (EBIDTA) of Rs.1065.035 Million as against the EBIDTA of Rs.1000.697 Million during the previous year, representing increase in EBIDTA by 6.43%. The increase was driven by reduction in operational and finance cost during the year.

The Company holds total unexecuted orders worth Rs.2338.700 Million as on March 31, 2015. This will help us to continue to have sustainable growth in coming years.

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2015	As on 31.03.2014
SHORT TERM BORROWING
Working Capital Loans From Banks	86.466	209.968
Other Loans From Related Parties	1.700	1.700
Total	88.166	211.668

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE, 2015

(Rs. In Million)

Particulars	Quarter Ended ( Unaudited)
	30.06.2015
1. Income from operations
a) Net sales/ Income from operation (net of excise duty)	963.453
b) Other operating income	12.618
Total income from Operations(net)	976.071
2.Expenditure
a) Cost of material consumed	672.863
b) Purchases of stock in trade	0.000
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(204.218)
d) Employees benefit expenses	98.887
e) Depreciation and amortization expenses	116.032
f) Other expenditure	179.123
Total expenses	862.687
3. Profit from operations before other income and financial costs	113.384
4. Other income	23.376
5. Profit from ordinary activities before finance costs	136.760
6. Finance costs	79.422
7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items	57.338
8. Exceptional item	0.000
9. Profit from ordinary activities before tax Expense:	57.338
10.Tax expenses	21.669
11.Net Profit / (Loss) from ordinary activities after tax (9-10)	35.669
12.Extraordinary Items (net of tax expense)	0.000
13.Net Profit / (Loss) for the period (11 -12)	35.669
14.Paid-up equity share capital (Nominal value Rs.10/- per share)	217.872
15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year	0.000
16.i) Earnings per share (before extraordinary items) of Rs.10/- each) (not annualised):
(a) Basic	0.33
(b) Diluted	0.33

Particulars	Quarter Ended ( Unaudited)
	30.06.2015
A. Particulars of shareholding
1. Public Shareholding
- Number of shares	45652927
- Percentage of shareholding	41.91%
2. Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	6336000
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	10.01%
Percentage of shares (as a % of total share capital of the company)	5.82%
b) Non Encumbered
Number of shares	56946919
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	89.99%
Percentage of shares (as a % of total share capital of the company)	52.28%
B. Investor Complaints
Pending at the beginning of the quarter	Nil
Receiving during the quarter	1
Disposed of during the quarter	1
Remaining unreserved at the end of the quarter	Nil

UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. In Millions)

Particulars	Quarter Ended ( Unaudited)
	30.06.2015
1. Segment Revenue
Material Handling Equipment	893.172
Transmission Equipment	1789.343
Others	42.578
Total	2725.093
Less : Inter Segment Revenue	153.730
Net Sales	2571.363
2. Segment Result (Profit before Interest and Tax)
Material Handling Equipment	(23.911)
Transmission Equipment	191.538
Others	3.707
Total	171.334
Less : (i) Interest	142.052
(ii) Other un-allocable expenditure net off un-allocable income.
Profit before Tax	29.282
3. Capital Employed
A) Segment wise Capital Employed
Material Handling Equipment	5156.101
Transmission Equipment	6234.725
Others	330.971
B) Unallocated Capital Employed	11721.797

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10569357	08/05/2015 *	600,000,000.00	IFCI LIMITED	IFCI TOWER, 61 NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA	C54112081
2	10555436	02/03/2015	3,912,500,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER 'E',, CUFFE PARADE, MUMBAI, MAHA  RASHTRA - 400005, INDIA	C46877577
3	10525862	23/01/2015 *	660,000,000.00	GE CAPITAL SERVICES INDIA	401, 402, 4TH FLOOR, AGGARWAL MILLENNIUM TOWER, E-1,2,3, NETAJI SUBHASH PLACE, WAZIRPUR, NEW DELHI - 110034, INDIA	C42773465
4	10174489	10/10/2014 *	600,000,000.00	IDBI BANK LIMITED	NEAR LAL BUNGLOW,, OFF. C.G. ROAD, AHMEDABAD, GUJARAT - 380006, INDIA	C29522232
5	10127322	27/08/2014 *	350,000,000.00	3I INFOTECH TRUSTEESHIP SERVICES LIMITED	3RD TO 6TH FLOOR, INTERNATIONAL INFOTECH PARK, TOWER NO.5, VASHI RAILWAY STATION COMPLEX, VASHI, NAVI MUMBAI, MAHARASHTRA - 400703, INDIA	C19747443
6	90102915	02/03/2015 *	4,412,500,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER 'E',, CUFFE PARADE, MUMBAI, MAHA  RASHTRA - 400005, INDIA	C46744611

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in million)

PARTICULARS	31.03.2015	31.03.2014
Claims against the Company not acknowledged as Debt
Disputed Excise Duty and Service Tax against Demand Notices received	175.865	32.983
Disputed Income Tax Demand-Disputed by Company	63.703	33.344
Disputed Income Tax Demand-Disputed by Income Tax Authorities	37.764	32.010
Sales Bills Discounted under LC with Banks	52.865	28.355
The Company has received assessment order for the year 2008-09 under the Central Sales (Gujarat) Tax Act with a demand of Rs.9.093 Million. The Company has deposited Rs.9.093 Million and the company has preferred to go for appeal against the said order.	9.093	9.093
Company has received assessment order for the year 2009-10 under the Central Sales (Gujarat) Tax Act with a demand of Rs.29.354 Million. The Company has deposited Rs.18.400 Million and Company has preferred to go for appeal against this order. However Company has not provided for the differential amount.	29.354	10.917
Company has received Assessment order for the year 2010-11 under the Central Sales (Gujarat) Tax Act with a demand of Rs.69.127 Million. Company has preferred to go for appeal	69.127	0.000
Guarantees
The Company has provided Corporate Guarantee to Bank of Baroda, Dubai to the tune of GBP 7,216,000 and US$ 28,299,876 as a security for repayment of Financial facility availed by Elecon Transmission International Limited, Mauritius, a Wholly Owned Subsidiary of the Company	2434.464	2413.426
The Company has provided Corporate Guarantee to State Bank of India, to the tune of Rs.9188.000 Million as a security for repayment of Financial facility availed by Elecon EPC Projects Limited., a subsidiary of the Company.	9188.000	9000.000
Guarantees issued by Company’s Bankers	495.967	524.176
Corporate Guarantee provided to Swedish Pension Authority to the tune of SEK 15.000 Million as a security, in replacement of earlier guarantee given by erstwhile owner, for the purchase of pension insurances relating to the pension commitments on behalf of AB Benzlers Sweden, a step-down subsidiary of Elecon Transmission International Limited, Mauritius, a Wholly Owned Subsidiary of the Company	108.230	138.000
TOTAL	12664.432	12222.304

FIXED ASSETS

• Land (Freehold)
• Buildings
• Plant and Machinery
• Electrical Installations
• Electrical Fittings
• Office Equipment’s
• Air Conditioning Plant
• Sundry Equipment’s
• Furniture and Fixtures
• Vehicles
• Site Office Equipment

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.65.63
UK Pound	1	Rs.101.73
Euro	1	Rs.73.26

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	RAS
Report Prepared by :	GTA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILITY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		66

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.