MIRA INFORM REPORT
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Report No. : |
341987 |
|
Report Date : |
24.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
EON ELECTRIC LIMITED |
|
|
|
|
Registered
Office : |
House No. 1048, Sector 14, Sonepat-131001, Haryana |
|
Tel. No.: |
91-120-3096827 |
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|
Country : |
India |
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|
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
06.11.1989 |
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|
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Com. Reg. No.: |
05-035580 |
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Capital
Investment / Paid-up Capital : |
Rs. 80.287 Million |
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|
|
CIN No.: [Company Identification
No.] |
L31200HR1989PLC035580 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of energy efficient Lighting and other Electrical and Electronic products such as LED Lights, Lighting products, Energy Efficient Fans, Water Heaters, Lithium ion batteries, Mobile Phone accessories, Wires and Cables and other allied products. |
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|
|
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No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3337000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company incorporated during the year 1989 and
it is specialized in manufacturing and marketing a wide range of high-tech
electrical products. The company has moderate track. Rating takes into account of company’s weak operational performance
due to losses incurred from its operations and moderate financial risk
profile during the year 2015. However, trade relations are fair. Business is active. Payment terms
are reported to be slow but correct. The company can be considered for business dealings with some caution. |
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
NOT AVAILABLE
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
INFORMATION DECLINED BY
|
Name : |
Mr. K. B. Sadicha |
|
Designation : |
Vice President in Finance |
|
Contact No.: |
91-120-3096827 |
|
Date : |
21.09.2015 |
LOCATIONS
|
Registered Office : |
House No. 1048, Sector 14, Sonepat-131001, Haryana, India |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
B-88, Sector 83, Noida-201305, Uttar Pradesh, India |
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Tel No.: |
91-120-3096700/701/ 827 |
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Fax No.: |
91-120-3096800 |
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Email: |
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Head Office: |
208, Hemkunt Tower, 98, Nehru Place, New Delhi – 110019, India |
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|
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Factory 1: |
Plot No. 10, Sector 4, SIDCUL, Ranipur, Haridwar - 249402, Uttarakhand, India |
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Factory 2: |
Plot No. 28-29, Sector 6B, SIDCUL, Haridwar - 249402, Uttarakhand, India |
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Factory 3: |
Plot No. 1C, Sector 7, SIDCUL, Haridwar - 249402, Uttarakhand, India |
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Branch Offices : |
Located at: · Noida · Chandigarh · Kolkata · Jaipur · Cochin · Chennai · Haridwar · Ahmedabad · Lucknow · Secunderabad · Bangalore · Mumbai · Patna |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. Ved Prakash Mahendru |
|
Designation : |
Chairman & Managing Director |
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|
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|
Name : |
Mr. Vivek Mahendru |
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Designation : |
Executive Director |
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|
Name : |
Mr. Ramesh Chander Bansal |
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Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Ajoy Kumar Ghosh |
|
Designation : |
Independent Director |
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|
|
|
Name : |
Mr. Vinay Mahendru |
|
Designation : |
Executive |
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|
|
|
Name : |
Mr. Ranjan Sarkar |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. Rashmi Vij |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
K.B. Satija |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Kumar Indramani |
|
Designation : |
Sr. Manager(Legal) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2330690 |
14.51 |
|
|
7261433 |
45.22 |
|
|
9592123 |
59.74 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
9592123 |
59.74 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
1063472 |
6.62 |
|
|
|
|
|
|
4319000 |
26.90 |
|
|
829784 |
5.17 |
|
|
253087 |
1.58 |
|
|
253087 |
1.58 |
|
|
6465343 |
40.26 |
|
Total Public shareholding (B) |
6465343 |
40.26 |
|
Total (A)+(B) |
16057466 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
16057466 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of energy Efficient Lighting and other Electrical and Electronic products such as LED Lights, Lighting products, Energy Efficient Fans, Water Heaters, Lithium ion batteries, Mobile Phone accessories, Wires and Cables and other allied products. |
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|
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Brand Names : |
-- |
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Agencies Held : |
-- |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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|
|
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Terms : |
Not Divulged |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
· State Bank of Patiala |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
J. C. Bhalla and Company Chartered Accountants |
|
Address : |
New Delhi, India |
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|
|
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Memberships : |
-- |
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Collaborators : |
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Investing Parties
with whom the Company is a Joint Venture Partner: |
·
Indo Simon Electric Private Limited (Ceased
to be a Joint Venture during the year.) ·
Luxtra Lighting Private Limited |
|
|
|
|
Subsidiary Company : |
IAFL Power Distribution and Infrastructure Private Limited
Ceased to be a subsidiary during the year.) |
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|
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Group Company : |
IAFL Switchgears Private Limited |
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|
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LLP firms in which
Directors and their relatives are partners : |
VPM Industrial Services Corporation LLP |
|
|
|
|
Company in which
Directors and their relatives are Directors : |
VPM Electricals Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19,000,000 |
Equity Shares |
Rs.5/- each |
Rs. 95.000 Million |
|
6,000,000 |
Preference Shares |
Rs.5/- each |
Rs. 30.000 Million |
|
|
Total |
|
Rs. 125.000 Million
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16,057,466 |
Equity Shares |
Rs. 5/- each |
Rs. 80.287
Million |
|
|
|
|
|
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 |
80.287 |
80.287 |
80.287 |
|
(b) Reserves & Surplus |
1087.502 |
1292.576 |
1541.038 |
|
(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) |
1167.789 |
1372.863 |
1621.325 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
7.898 |
23.693 |
39.488 |
|
(b) Deferred tax liabilities (Net) |
22.353 |
7.699 |
8.984 |
|
(c)
Other long term liabilities |
24.388 |
20.735 |
14.469 |
|
(d)
long-term provisions |
13.271 |
9.854 |
9.622 |
|
Total
Non-current Liabilities (3) |
67.910 |
61.981 |
72.563 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
628.819 |
520.918 |
273.926 |
|
(b)
Trade payables |
196.969 |
154.613 |
115.413 |
|
(c)
Other current liabilities |
84.639 |
72.679 |
84.172 |
|
(d)
Short-term provisions |
1.380 |
1.303 |
4.534 |
|
Total
Current Liabilities (4) |
911.807 |
749.513 |
478.045 |
|
|
|
|
|
|
TOTAL |
2147.506 |
2184.357 |
2171.933 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
406.550 |
364.404 |
291.643 |
|
(ii)
Intangible Assets |
0.013 |
0.019 |
0.083 |
|
(iii)
Capital work-in-progress |
2.167 |
4.934 |
14.346 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
108.462 |
362.707 |
364.194 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
26.876 |
12.865 |
56.155 |
|
(e)
Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
544.068 |
744.929 |
726.421 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
602.925 |
612.414 |
528.714 |
|
(b)
Inventories |
343.606 |
317.378 |
341.860 |
|
(c)
Trade receivables |
439.518 |
368.713 |
399.825 |
|
(d)
Cash and cash equivalents |
144.682 |
85.119 |
130.932 |
|
(e)
Short-term loans and advances |
67.052 |
50.569 |
38.604 |
|
(f)
Other current assets |
5.655 |
5.235 |
5.577 |
|
Total
Current Assets |
1603.438 |
1439.428 |
1445.512 |
|
|
|
|
|
|
TOTAL |
2147.506 |
2184.357 |
2171.933 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
1291.710 |
1367.202 |
1561.361 |
|
|
|
Other Income |
76.128 |
61.373 |
84.791 |
|
|
|
TOTAL |
1367.838 |
1428.575 |
1646.152 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
617.681 |
687.620 |
1023.925 |
|
|
|
Purchases of Stock-in-Trade |
396.817 |
328.980 |
477.785 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
13.651 |
51.620 |
-228.103 |
|
|
|
Employees benefits expense |
180.570 |
202.346 |
190.483 |
|
|
|
Other expenses |
265.799 |
312.797 |
323.570 |
|
|
|
TOTAL |
1474.518 |
1583.363 |
1787.660 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
(106.680) |
(154.788) |
(141.508) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
74.020 |
56.120 |
25.184 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(180.700) |
(210.908) |
(166.692) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
21.237 |
29.854 |
24.603 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEMS |
(12.321) |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(189.616) |
(240.762) |
(191.295) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
14.734 |
(6.368) |
6.655 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) |
(204.350) |
(234.394) |
(197.950) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
70.077 |
23.669 |
37.575 |
|
|
|
Stock-in-trade |
73.639 |
56.788 |
60.777 |
|
|
|
Capital Goods |
0.221 |
0.000 |
12.055 |
|
|
TOTAL IMPORTS |
143.937 |
80.457 |
110.407 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(12.73) |
(14.60) |
(12.33) |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term borrowings |
15.795 |
15.795 |
19.693 |
|
|
|
|
|
|
Cash Generated from/ (used in) Operations |
(234.591) |
(86.529) |
(598.817) |
|
|
|
|
|
|
Net Cash Flow from (used in) Operating Activities |
(235.525) |
(86.856) |
(600.027) |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2015 |
|
Type |
1st
Quarter |
|
Net Sales |
338.220 |
|
Total Expenditure |
363.420 |
|
PBIDT (Excl OI) |
(25.200) |
|
Other Income |
17.480 |
|
Operating Profit |
(7.720) |
|
Interest |
21.490 |
|
Exceptional Items |
0.000 |
|
PBDT |
(29.220) |
|
Depreciation |
5.210 |
|
Profit Before Tax |
(34.430) |
|
Tax |
(0.240) |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
(34.190) |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
(34.190) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(15.82) |
(17.14) |
(12.68) |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
(8.26) |
(11.32) |
(9.06) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(9.31) |
(13.25) |
(10.67) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.16) |
(0.18) |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.56 |
0.41 |
0.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76 |
1.92 |
3.02 |
STOCK
PRICES
|
Face Value |
Rs.5/- |
|
|
|
|
Market Value |
Rs.35.80/- |
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 |
80.287 |
80.287 |
80.287 |
|
Reserves & Surplus |
1541.038 |
1292.576 |
1087.502 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
1621.325 |
1372.863 |
1167.789 |
|
|
|
|
|
|
Long-term borrowings |
39.488 |
23.693 |
7.898 |
|
Short term borrowings |
273.926 |
520.918 |
628.819 |
|
CURRENT MATURITIES OF
LONG-TERM BORROWINGS |
19.693 |
15.795 |
15.795 |
|
Total
borrowings |
333.107 |
560.406 |
652.512 |
|
Debt/Equity
ratio |
0.205 |
0.408 |
0.559 |
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) |
|
Revenue from Operations |
1561.361 |
1367.202 |
1291.710 |
|
|
|
(12.435) |
(5.522) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Revenue from Operations |
1561.361 |
1367.202 |
1291.710 |
|
Profit |
(197.950) |
(234.394) |
(204.350) |
|
|
(12.68%) |
(17.14%) |
(15.82%) |
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 |
No |
|
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 |
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10391814 |
22/02/2014
* |
450,000,000.00 |
STATE
BANK OF PATIALA |
COMMERCIAL
BRANCH, 2ND FLOOR,CHANDRALOK BUILDING, 36, JANPATH, NEW DELHI - 110001, INDIA |
C00893636 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
Deferred payment liability |
7.898 |
23.693 |
|
|
|
|
|
Total |
7.898 |
23.693 |
COMPANY OVERVIEW:
The company is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The company is engaged in the manufacturing and selling of Cables and Wires, Energy Efficient Lighting, Wiring accessories, Fans, Geysers, Lithium-ion Batteries, Mobile phone accessories and other electrical products. The Company’s manufacturing facilities are located at Haridwar in Uttarakhand.
MANAGEMENT
DISCUSSION AND ANALYSIS
COMPANY OVERVIEW
The company is engaged in the business of manufacturing and marketing of energy efficient lighting and other electrical and electronic products such as LED Lights, Lighting products, Energy Efficient Fans, Water Heaters, Lithium ion batteries, Mobile Phone accessories, Wires and Cables and other allied products.
The company continues to be committed towards making the best of quality products at affordable prices through technological innovation and up gradation, modernisation, adoption of best practices, global benchmarking, value proposition, and deep commitment to customer satisfaction besides ensuring human as well as environmental safety, thus enhancing the value addition for the investors and for the society as a whole.
LIGHTING INDUSTRY:
The emphasis on the power sector and its phenomenal growth and distribution laid the foundation for the lighting industry in India. Under the present energy crisis, both industrial and domestic sectors of the market expect better lighting systems to optimize the use of energy. Hence, over conventional lamp, energy saving lamp is preferred now a days by industry. Apart from the energy efficiency, improved illumination, advanced lumen techniques and enhanced aesthetics are the features considered by the industry.
The Lighting Industry in India is growing at nearly 17 to 18% per annum over the last 2-3 years to an annual turnover of Rs.75000.000 Million. The consumer usage pattern for light sources witnessed a distinct shift from the conventional sources towards the new Energy Efficient Lamps.
Growing thrust on energy conservation and increasing power tariffs are encouraging use of energy-efficient light sources and systems such as LEDs by all consumer segments.
LEDS- THE LIGHT OF THE FUTURE: Today, India deals with challenges of energy deficiency, sustainability, and electrification of remote rural regions. Of the entire energy consumption in India, lighting accounts for 20 percent. Avery effective solution to India’s lighting challenges that has emerged is Light Emitting Diode (LED). Awareness initiatives and government programs involving support to green technologies and provision for preferential excise rates has encouraged the LED lighting penetration in India. Street lighting, industrial, and commercial applications are currently driving the LED market growth in India. The National
Electronics Policy is bearing fruit, with India expected to witness establishment of LED Fabs and LED products manufacturing in the short term. With technological advancements, reliable product performance, increased competition, and reducing LED pricing, increased market adoption is expected across both indoor and outdoor LED lighting markets. Still, the LED market in India has its share of challenges such as relatively higher pricing, reliance on imports, and limited indigenous manufacturing.
Having tracked this highly dynamic market in India for half a decade, Frost and Sullivan expects the Indian LED market to grow over US$ 1 billion in the next four years. The market will witness a growth rate of more than 40 percent till 2016. It is also anticipated that the LED lighting market will move towards high quality, adaptable lighting with more efficient output. The market will witness a convergence scenario with other technology areas like wireless sensors and networks, augmented reality, and flexible electronics. This will shift emphasis to the lighting system as a whole.
Keeping in mind the massive rural electrification programmed increased emphasis on conservation of energy by the Government and SEBs through the use of LEDs, and the emergence of strong middle class, a demand explosion both in quantity and types is likely to occur in near future with emphasis on energy saving light sources. The Industry is further expected to achieve high growth in the back of high growth in Housing demands, commercial space and expansion in the overall economy.
The Central and States Governments, the Bureau of Energy Efficiency and the Energy Efficiency Services Limited
(EESL), which is a joint venture of the 4 PSUs of the Government of India have launched a massive drive for replacement of the existing Street Lights across the country and lights in public spaces with energy efficient LED based street lights. Besides they have also launched programmes for distribution of Led bulbs to all the households at a heavily subsidized price through the Discoms. EESL and the ministry of power are working hand in hand with industry to bring this transition and ensuring that all government procurement of LED is made in India, helping the industry to move faster,This initiative of the Government for LED based home along with the street lighting will have a great impact in providing our nation with an energy efficient lighting source. The Government has also initiated making all LED specifications. Prime Minister Narendra Modi has described the LED bulb as a “Prakash Path” – “way to light,” The growing demand would also give push to make-in-India’ initiative and would also help and support Prime Minister Narendra Modi’s ‘Make in India’ campaign as the companies would manufacture locally here,
According to the Electric Lamp and Component Manufacturers Association (ELCOMA), the government’s initiative could help propel the industry to grow five-folds in five years from its current size of Rs 40000.000 Million.
As per the ELCOMA vision, LED bulbs market would grow to Rs 200000.000 Million by 2020 from an estimated Rs 40000.000 Million in 2014. This has been driven by government initiatives of phasing out inefficient lighting sources such as incandescent bulb, tubes and halogen lamps.
CABLES AND WIRE INDUSTRY:
The Cables and Wire industry has shown positive trends for the last five years due to the increased activity in power sector, improved industrial climate and industry initiative to explore export markets. This upswing is likely to continue for next few years due to various favorable factors, such as Power Sector reforms, growth in infrastructure sectors and high growth rate of Indian economy. The government has also extended support to this industry as wire and cable industry is delicensed and eligible for automatic approval for Foreign Direct Investment up to 100 per cent.
The outlook of wires and power cables continue to remain positive on the back of demand expected to be generated as per estimation in various sectors like power, real estate etc. The increased investment in generation, transmission and distribution as planned under XII plan, increase in government spending on the infrastructure and restructuring of SEBs would provide boost to cable consumption. Along with power sector, real estate sector and industrial demand would also provide an upswing to the cable and wires industry in the near future. With growing quality consciousness and awareness for safety, there is a good potential for growth and demand for branded wires and cables in the industry.
The building wiring cables segment comprises the wires and cables required for residential, commercial, hotels, shops and offices. This segment shows growth due to momentum in housing sector. The residential segment contributes a major portion of the demand, followed by shops and offices. The size of building wires and cables is estimated at approx. Rs. 60000.000 Million, with a large segment being local and unorganized.
The cable industry is presently undergoing a difficult phase due to lower volume of orders for cables from various sectors like power, telecom, railways and various industrial, construction, engineering and manufacturing industries during the slowdown of economy. This coupled with the fact that various manufacturers had undertaken huge expansions to capacities, has resulted into under-utilization of their capacities.
LITHIUM ION BATTERIES:
The Company has identified Lithium Ion Battery as a potential product for its expansion and growth. Currently there is no integrated manufacturer of Lithium Ion Batteries in India. In most cases, companies involved in this business import lithium ion cells from China and assemble batteries here in India. The handset manufacturers also import these batteries that are sold through their retail network. Local manufacturing is very limited. Eon Electric Limited is the first indigenous manufacturer in India.
India is one of the fastest growing markets for mobile phones and has approximately 300 million handsets being used by mobile subscribers currently. If one assumes the average life span of mobile batteries as 2 years, the size of replacement mobile battery market could be as big as 150 million units a year.
The growth rate of mobile phone connections in India is in the range of 25 to 30 percent per year.
The sale of replacement batteries is currently in the hands of many standalone traders and the quality of majority of these batteries is very poor. Over 75% of batteries available in the market are of CorDgrade.
There is a big thrust being given by the mobile phone OEMs and other related parties in the Indian market for improved quality batteries. This is primarily because of poor customer experience with the existing products available in the Indian market which is also likely to affect the perceived quality of a mobile hand set in which the bad quality batteries may be used. The consumers are now moving to better quality batteries and the demand for better batteries is increasing fast.
The government too is contemplating putting strict regulations on the quality of the batteries which can be sold in the replacement market.
The increased emphasis on power generation and new fast developing consciousness for conservation of power and energy efficiency has hastened the process of growth of demand for the Company’s products. Further with the diversification of the Company’s product range which would now also include Lithium ion Batteries, Energy Efficient fans, LEDs for Lighting and Luminaries, the prospects of the Company are good.
Since power sector and infrastructure/real estate sector are main consumers of Company’s products, any slowdown in these sectors can largely impact the demand for Company’s products.
STATEMENT OF STANDALONE FINANCIAL RESULTS FOR
THE QUARTER ENDED JUNE 30, 2015
PART I
(Rs.
in Million)
|
|
Particulars |
Unaudited 30.06.2015 |
|
1. |
Income
from operations |
|
|
|
a)
Net sales/income from operations (Net of excise duty) |
338.215 |
|
|
b)
Other operating income |
0.000 |
|
|
Total Income from Operations (net) |
338.215 |
|
|
|
|
|
2. |
Expenses |
|
|
|
a)
Cost of Materials Consumed |
165.918 |
|
|
b)
Purchases of Stock-in-Trade |
98.139 |
|
|
c)
Changes in inventories of finished goods, work-in-progress and traded goods |
(20.584) |
|
|
d)
Employee benefits expense |
48.695 |
|
|
e)
Depreciation and amortisation expense |
5.209 |
|
|
f)
Other expenses |
71.254 |
|
|
Total Expenses |
368.631 |
|
|
|
|
|
3. |
Profit/(Loss) from
Operations before other income, finance costs and exceptional Items (1-2) |
(30.416) |
|
4. |
Other
Income |
17.480 |
|
5. |
Profit/(Loss) from ordinary activities before finance costs
and exceptional Items (3+4) |
(12.936) |
|
6. |
Finance
costs |
21.493 |
|
7. |
Profit/(Loss) from ordinary activities after finance
costs but before exceptional Items (5-6) |
(34.429) |
|
8. |
Exceptional
Items |
0.000 |
|
9. |
Profit/(Loss) from ordinary activities before tax (7-8) |
(34.429) |
|
10. |
Tax
expense |
|
|
|
Current
Tax |
0.000 |
|
|
Deferred
Tax |
(0.237) |
|
|
Deferred
Tax charge on exceptional items |
0.000 |
|
|
Wealth
Tax |
0.000 |
|
|
Prior
period tax adjustments |
0.000 |
|
|
Total |
(0.237) |
|
11. |
Profit/(Loss) from ordinary activities after tax (9-10) |
(34.192) |
|
12. |
Extraordinary items (net of tax expense) |
0.000 |
|
13. |
Net
Profit/(Loss) for the period (11+12) |
(34.192) |
|
14. |
Paid-up Eq. Share Capital (Face Value of Equity Shares: Rs.5/- each) |
80.287 |
|
15. |
Reserves excluding Revaluation Reserve |
|
|
16. |
Earnings
Per Share (EPS) before extraordinary items (of Rs. 5/- each) (not
annualised): |
|
|
|
Basic
|
(2.13) |
|
|
Diluted |
(2.13) |
|
17. |
Earnings
Per Share (EPS) after extraordinary items (of Rs. 5/- each) (not annualised): |
|
|
|
Basic
|
(2.13) |
|
|
Diluted |
(2.13) |
|
PART II SELECT
INFORMATION FOR THE QUARTER ENDED 30.06.2015 |
|
|
|
A. |
PARTICULARS
OF SHAREHOLDING (the details related only to share of the company) |
30.06.2015 |
|
1. |
Public Shareholding |
|
|
|
-
Number of Shares |
6465343 |
|
|
-
Percentage of Shareholding |
40.26% |
|
2. |
Promoter and Promoter Group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
-
Number of Shares |
Nil |
|
|
-Percentage
of Shares (as a % of the total shareholding of promoter and promoter group) |
Nil |
|
|
-Percentage
of Shares (as a % of the total share capital of the Company) |
Nil |
|
|
b) Non-Encumbered |
|
|
|
-
Number of Shares |
9592123 |
|
|
-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) |
59.74% |
|
|
||
|
|
Particulars |
30.06.2015 |
|
B. |
INVESTOR
COMPLAINTS |
|
|
|
Pending
at the beginning of the quarter |
-- |
|
|
Received
during the quarter |
12 |
|
|
Disposed
of during the quarter |
12 |
|
|
Remaining
unresolved at the end of the quarter |
-- |
|
NOTE:
|
||
UN-AUDITED SEGMENTWISE
REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30.06.2015
(In
Million)
|
|
Particulars |
Unaudited 30.06.2015 |
|
1. |
Segment Revenue |
|
|
|
(Revenue from Operation) |
|
|
|
a) Cable and wires |
133.554 |
|
|
b) Lighting |
122.329 |
|
|
c) Electrical Consumer durables |
61.425 |
|
|
d) Others |
20.907 |
|
|
Total |
338.215 |
|
|
Less: Inter segment revenue |
0.000 |
|
|
Income from operations |
338.215 |
|
2. |
Segment Results |
|
|
|
(Profit(+)/Loss(-) before tax and finance costs from each segment) |
|
|
|
a) Cable and wires |
(23.990) |
|
|
b) Lighting |
14.536 |
|
|
c) Electrical Consumer durables |
(0.158) |
|
|
d) Others |
(1.097) |
|
|
Total |
(10.709) |
|
|
Less: i) Finance costs |
21.493 |
|
|
ii) Other un-allocable expenditure net of Un-allocable income |
2.227 |
|
|
Profit/(Loss) before exceptional items
and tax |
(34.429) |
|
|
Exceptional items |
0.000 |
|
|
Profit/(Loss) before tax |
(34.429) |
|
3. |
Capital Employed |
|
|
|
(Segment assets-segment liabilities) |
|
|
|
a) Cable and wires |
370.844 |
|
|
b) Lighting |
228.368 |
|
|
c) Electrical Consumer durables |
207.406 |
|
|
d) Others |
149.796 |
|
|
e) Unallocated |
177.183 |
|
|
Total |
1133.597 |
CONTINGENT LIABILITIES:
(As On 31.03.2015)
i) Bank Guarantees Rs. 98.237 Million (Previous year Rs. 49.965 Million).
ii) Bond furnished to Custom and Central Excise Authorities for import of goods at Concessional Rate of Duty
Rs. 72.500 Million (Previous year Rs. 70,000 Million)
iii) Excise duty demands against which the company has preferred appeals Rs. 54.136 Million (Previous year
Rs. 52.314 Million). The Company has already deposited a sum of Rs. 3.151 Million (Previous year Rs. 3.015 Million) against the aforesaid demand.
iv) Central Excise and Service Tax Appeals filed by the Department Rs. 8.089 Million (Previous year Rs. 2,065 Million) for excise duty and Rs. 0.119 Million (Previous year Rs. 0.119) for service tax.
v) Sales Tax / Value Added Tax Demands against which the company has preferred appeals Rs. 5.374 Million
(Previous year Rs. 15.967 Million). The company has already deposited a sum of Rs. 0.806 Million (Previous year
Rs. 5,664 Million) against the aforesaid demand.
vi) Income Tax demands against which the company has
preferred appeals Rs. 0.109 Million (Previous year Nil).
FIXED ASSETS:
Tangible Assets
·
Land - Free Hold
·
Land - Lease Hold
·
Buildings
·
Buildings (Road)
·
Plant and Equipment
·
Furniture and Fixtures
·
Ehicles
·
Office equipment
·
Fans, Coolers and A.C.
·
Computers
·
Electrical Fittings
·
Lease Hold Improvements
Intangible Assets
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.95 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.38 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
HEN |
|
|
|
|
Report Prepared
by : |
ARC |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
30 |
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.