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MIRA INFORM REPORT
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Report No. : |
486878 |
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Report Date : |
18.01.2018 |
IDENTIFICATION DETAILS
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Name : |
VA TECH WABAG
LIMITED (w.e.f. 10.03.2000) |
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Formerly Known
As : |
BALCKE DURR AND WABAG TECHNOLOGIES LIMITED |
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Registered
Office : |
“Wabag House” No.17, 200 Feet Radial Road, Thoraipakam Pallavram Main
Road, Near Kamakshi Hospital, Sunnambu Kolthur, Chennai – 600117, Tamilnadu |
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Tel. No.: |
91-44-39232323 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
17.02.1995 |
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Com. Reg. No.: |
18-030231 |
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Capital
Investment / Paid-up Capital : |
INR 109.304 Million |
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CIN No.: [Company Identification
No.] |
L45205TN1995PLC030231 |
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IEC No.: |
Not Divulged |
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GSTIN: |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEV02389C |
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PAN No.: [Permanent Account No.] |
AABCV0225G |
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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
: |
The Company’s principal activities include design, supply,
installation, construction and operational management of drinking water,
waste water treatment, industrial water treatment and desalination plants. (Registered Activity) |
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No. of Employees
: |
970 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject was incorporated in the year 1995. The company’ principal
activities include design, supply, installation, construction and operational
management of drinking water, waste water treatment, industrial water
treatment, etc. For the financial year 2017, the company has achieved revenue growth
of 18.82% as compared to the previous year along with an average profit
margin of 4.17%. The sound financial risk profile of the company is marked by adequate
net worth base along with strong debt protection metrics due to negligible
debt balance sheet profile. The National Company Law Tribunal (NCLT) had initiated Corporate
Insolvency Resolution Process (CIRP) against VA Tech Wabag. The Chennai bench
of NCLT had passed the financial order on 06th October 2017
following a plea from consolidated Construction Consortium Limited (CCCL) in
respect of an alleged default in payment of due of INR 15.000 million. An
Insolvency Resolution Professional (IRP) was appointed to supersede the Board
of Directors of the Company and conduct a financial due diligence within the
moratorium period. However, as per information gathered from indirect
sources, NCLT has withdrawn the Insolvency proceedings against the subject
through its order dated 13th October 2017 after the subject
settled the amounts claimed by CCCL (INR 22.500 million inclusive of
interest). The IRP has also been relieved of their assignment as no further
claims were received from other creditors. Payments are reported to be usually correct. In view of aforesaid, the company can be considered for 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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
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Rating |
Long Term Borrowing (AA-) |
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Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
27.10.2017 |
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Rating Agency Name |
ICRA |
|
Rating |
Short Term Borrowing (A1+) |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
27.10.2017 |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 18.01.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date. The details of the listing are as under:
|
Date of Listing / Announcement : |
06.10.2017 |
|
Name of Company : |
VA Tech Wabag Limited |
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Name of Applicant : |
VA Tech Wabag Limited |
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Name of Insolvency Professional : |
Pathukasahasram Raghunathan Raman (P.R. Raman) |
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Address of Insolvency Professional : |
Flat “C” Srishas Kamalam Apartment, 93, Sivan
Koil South Street, Vadapalani, Chennai – 600026, Tamilnadu, India |
|
Reason for Listing : |
Corporate Insolvency Resolution Process |
INFORMATION DENIED
Management non-cooperative (Tel No.: 91-44-39232323/ 91-20-66424900)
LOCATIONS
|
Registered / Corporate Office : |
“Wabag House” No.17, 200 Feet Radial Road, Thoraipakam Pallavram Main
Road, Near Kamakshi Hospital, Sunnambu Kolthur, Chennai – 600117, Tamilnadu,
India |
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Tel. No.: |
91-44-39232323 |
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Fax No.: |
91-44-39232324 |
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E-Mail : |
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Website : |
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Regional Office 1 : |
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Tel. No.: |
91-20-66424900 / 66424901 |
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Fax No.: |
91-20-66424949 |
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Regional Office 2 : |
Nagras Road, New DP Road, 1st Floor, Harsh Orchid Aundh
Pune – 411007, Maharashtra, India |
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Regional Office 3 : |
EC-33, Sector -1, 1st Floor, Salt Lake City, Kolkata-700064, Maharashtra,
India |
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Tel. No.: |
91-33-23376779/ 23376778 |
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Fax No.: |
91-33-23376779 |
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Regional Office 4 : |
S-14, Second Floor, |
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Tel. No.: |
91-11-41006634 / 41006635 / 41006636 |
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Fax No.: |
91-11-41006637 |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Rajiv Mittal |
|
Designation : |
Managing Director |
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Address : |
No. 13A, Jeevarathinam Nagar, First Street, Adyar, Chennai – 600020,
Tamilnadu, India |
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Date of Birth/Age : |
08.04.1960 |
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Date of Appointment : |
27.09.2000 |
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DIN No. : |
01299110 |
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Name : |
Mr. Bhagwan Das Narang |
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Designation : |
Director |
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Address : |
B-64, Ground Floor, Gulmohar Park, Opposite Park, New Delhi-110049, India |
|
Date of Appointment : |
07.06.2007 |
|
DIN No. : |
00826573 |
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Name : |
Mr. Sumit Chandwani |
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Designation : |
Director |
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Address : |
2001, Era 3, Marathon Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400
013, Maharashtra, India |
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Date of Birth/Age : |
11.11.1967 |
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Date of Appointment : |
13.09.2005 |
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DIN No. : |
00179100 |
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Name : |
Ms. Revathi Kasturi |
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Designation : |
Director |
|
Address : |
Ruby 37, Golden Enclave Airport Road, Bangalore-560017, Karnataka, India |
|
Date of Appointment : |
09.02.2012 |
|
DIN No. : |
01837477 |
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Name : |
Mr. Subramanian Varadarajan |
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Designation : |
Director |
|
Address : |
3-D, Mayflower, Ceebros Garden Apartments, 1 and 2, Vembuli Amman Koil Street, West K K Nagar, Chennnai-600078, Tamilnadu, India |
|
Date of Appointment : |
24.06.2015 |
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DIN No. : |
02353065 |
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|
Name : |
Mr. Malay Mukherjee |
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Designation : |
Director |
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Address : |
81, Templars Avenue, Golders Green, London NW110NR |
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Date of Appointment : |
24.06.2015 |
|
DIN No. : |
02861065 |
KEY EXECUTIVES
|
Name : |
Mr. Parthasarathy Gopalan |
|
Designation : |
Chief Financial Officer |
|
Address : |
5F, Block 1, Abbutsbury Apartment, 42, C.P. Ramasamy Road, Alwarpet, Chennai-600018, Tamilnadu, India |
|
Date of Appointment : |
07.11.2015 |
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PAN No. : |
AAFPP1586M |
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Name : |
Mr. Pankaj Sachdeva |
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Designation : |
Chief Executive Officer |
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Address : |
Flat No. 104, Shaligram-2 Off 100 Feet Road, Prahladnagar, Satellite Ahmedabad-380015, Gujarat, India |
|
Date of Appointment : |
08.11.2016 |
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PAN No. : |
AAMPS3152M |
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Name : |
Mr. Ramanan Swaminathan |
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Designation : |
Company Secretary |
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Address : |
117D, Sangeetha Colony, B4, Sai Niketa Flat, Alagiri Sami Salai, K.K. Nagar, Chennai-600078, Tamilnadu, India |
|
Date of Appointment : |
11.02.2017 |
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PAN No. : |
ATBPS2731A |
MAJOR SHAREHOLDERS
As on 30.09.2017
|
Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957) As a % of |
|
|
(A) Promoter & Promoter Group |
13495522 |
24.72 |
|
|
(B) Public |
41099237 |
75.28 |
|
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Grand Total |
54594759 |
100.00 |
Statement showing
shareholding pattern of the Promoter and Promoter Group
|
Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
A1) Indian |
0.00 |
||
|
Individuals/Hindu undivided Family |
3786116 |
6.93 |
|
|
S VARADARAJAN |
2185762 |
4.00 |
|
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SHIVNARAYAN JAGANNATH SARAF |
1600354 |
2.93 |
|
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Sub Total A1 |
3786116 |
6.93 |
|
|
A2) Foreign |
0.00 |
||
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Individuals (NonResident Individuals/ Foreign Individuals) |
9709406 |
17.78 |
|
|
RAJIV MITTAL |
9709406 |
17.78 |
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Sub Total A2 |
9709406 |
17.78 |
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|
A=A1+A2 |
13495522 |
24.72 |
Statement showing shareholding
pattern of the Public shareholder
|
Category & Name of the Shareholders |
No. of fully paid up equity shares held |
Shareholding % calculated as per SCRR, 1957 As a
% of (A+B+C2) |
|
|
B1) Institutions |
0 |
0.00 |
|
|
Mutual Funds/ |
12193929 |
22.34 |
|
|
BIRLA SUN LIFE TRUSTEE COMPANY PRIVATE LIMITED AC SUN LIFE BALANCED 95
FUND |
1618950 |
2.97 |
|
|
KOTAK OPPORTUNITIES |
662472 |
1.21 |
|
|
SUNDARAM MUTUAL FUND A/C SUNDARAM SMILE FUND |
1125698 |
2.06 |
|
|
BNP PARIBAS EQUITY FUND |
587823 |
1.08 |
|
|
SBI MAGNUM TAXGAIN SCHEME |
4052154 |
7.42 |
|
|
IDFC PREMIER EQUITY FUND |
3190466 |
5.84 |
|
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Foreign Portfolio Investors |
14581784 |
26.71 |
|
|
SUMITOMO CORPORATION |
2456920 |
4.50 |
|
|
PARVEST EQUITY INDIA |
2299000 |
4.21 |
|
|
AMUNDI FUNDS SBI FM EQUITY INDIA |
600000 |
1.10 |
|
|
GOLDMAN SACHS INDIA LIMITED |
1042665 |
1.91 |
|
|
Financial Institutions/ Banks |
21928 |
0.04 |
|
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Insurance Companies |
443996 |
0.81 |
|
|
Any Other (specify) |
992417 |
1.82 |
|
|
FOREIGN CORPORATE BODIES |
992417 |
1.82 |
|
|
SATTVA INDIA OPPORTUNITIES COMPANY LIMITED |
815278 |
1.49 |
|
|
Sub Total B1 |
28234054 |
51.72 |
|
|
B2) Central Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
B3) Non-Institutions |
0 |
0.00 |
|
|
Individual
share capital upto INR 0.200 Million |
7770743 |
14.23 |
|
|
Individual share capital excess INR 0.200 Million |
1944284 |
3.56 |
|
|
AMIT SENGUPTA |
1944284 |
3.56 |
|
|
NBFCs registered with RBI |
33749 |
0.06 |
|
|
Any Other (specify) |
3116407 |
5.71 |
|
|
Trusts |
2605 |
0.00 |
|
|
NRI |
452930 |
0.83 |
|
|
Clearing Members |
68017 |
0.12 |
|
|
NRI – Non- Repat |
178339 |
0.33 |
|
|
Bodies Corporate |
2414516 |
4.42 |
|
|
TATA AIA LIFE INSURANCE CO-LTD LIFE EQUITY FUND -ULF 001 04/02//04 TEL
110 |
785711 |
1.44 |
|
|
Sub Total B3 |
12865183 |
23.56 |
|
|
B=B1+B2+B3 |
41099237 |
75.28 |
BUSINESS DETAILS
|
Line of Business
: |
The Company’s principal activities include design, supply,
installation, construction and operational management of drinking water, waste
water treatment, industrial water treatment and desalination plants. (Registered Activity) |
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Products / Services
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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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 : |
970 (Approximately) |
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Bankers : |
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Facilities : |
Note: The carrying amount of short term borrowings is considered to be a reasonable approximation of fair value. Terms, repayment and guarantee details of short-term borrowings The Company has availed packing credit facilities in
Indian rupees and US dollars at an interest rate of 5.55% to 6.30% (31 March
2016: 6.00% to 6.30%, 01 April 2015: Nil) and 1.41% to 2.15% (31 March 2016:
0.91% to 1.42%, 01 April 2015: 0.9% to 1.5%) respectively. These packing
credits are repayable within 180 days, as applicable, from the date of
availment and are secured against foreign currency receivables. |
|
Auditors : |
|
|
Name : |
Walker Chandiok and Co LLP Chartered Accountants |
|
Address : |
7th Floor, Prestige Polygon, 471, Anna Salai, Teynampet,
Chennai - 600 018, Tamilnadu, India |
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Tel. No.: |
91-44-42940000 |
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Fax. No: |
91-44-42940044 |
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|
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Internal Auditors : |
|
|
Name : |
PKF Sridhar and Santhanam LLP Chartered Accountants |
|
Address : |
KRD Gee Gee Crystal, No. 91-92, 7th Floor, Dr. Radhakrishnan Salai, Mylapore, Chennai - 600 004 , Tamilnadu, India |
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Tel. No.: |
91 - 44 - 2811 2985 |
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Cost Auditor : |
|
|
Name : |
S. Chandrasekaran Practicing Cost Accountant |
|
Address : |
4, Sreshta, 57, Subramaniam Street Abhiramapuram, Chennai-600018, Tamilnadu, India |
|
Tel. No.: |
91-44-2499 0286 |
|
Membership No.: |
4784 |
|
|
|
|
Secretarial Auditor |
|
|
Name : |
M. Damodaran and Associates |
|
Address : |
No. 6, Appavoo Gramani, 1st Street, Mandaveli, Chennai -
600 028, Tamilnadu, India |
|
Tel. No.: |
91- 44 - 4360 1111 |
|
|
|
|
Name : |
M. Damodaran |
|
Designation: |
Practicing Company Secretary |
|
Membership No.: |
5837 |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Subsidiary
companies |
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Associate |
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Joint Venture |
International Water Treatment LLC, Oman |
CAPITAL STRUCTURE
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
75000000 |
Equity Shares |
INR 2/- each |
INR 150.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
54573058 |
Equity Shares |
INR 2/- each |
INR 109.100
Million |
|
|
|
|
|
a) Reconciliation of
share capital (Equity)
|
Particulars |
As at 31 March 2017 |
|
|
Nos. |
Amount (INR In million) |
|
|
Balance at the beginning of the year |
54496401 |
108.600 |
|
Add : Issued pursuant to Employee Stock Option Plan |
76657 |
0.100 |
|
Add : Issued pursuant to Bonus issue |
-- |
- |
|
Balance at the end
of the year |
54573058 |
109.100 |
b) Shareholders
holding more than 5% of the aggregate shares in the Company
|
|
As at 31 March 2017 |
|
|
Equity Shares of
INR 2 each |
Nos. |
% holding |
|
Rajiv Mittal (Managing Director) |
9709406 |
18% |
|
IDFC Premier Equity Fund |
3179446 |
5.8% |
|
SBI Magnum Taxgain Scheme |
3282162 |
6% |
c) Bonus issue
The Company had allotted 2,71,42,555 equity shares of face value INR 2 per share as fully paid bonus shares during
the year ended 31 March 2015, pursuant to the bonus issue approved by the shareholders through postal ballot by capitalization of share premium. Bonus share of one equity share for every equity share held had been allotted.
d) Terms/ rights
attached to equity shares
The Company has issued only one class of equity shares having a face value of INR 2 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, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend, which can be approved by the Board of Directors. In the event of liquidation, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.
e) Shares reserved
for issue under options
The Company has reserved issuance of 294440 equity shares of INR 2 each (Previous year: 465785 shares of INR 2 each) for offering to eligible employees of the Company and its subsidiaries under Employees Stock Option Plan (ESOP).
f) Buy back of shares
There were no buy back of shares and shares issued pursuant to contract without payment being received in cash during the last 5 years immediately preceding 31 March 2017.
g) Capital management
The Company’s capital management objectives are:
to safeguard the Company’s ability to continue as a going concern, and continue to provide optimum returns to the shareholders and all other stakeholders by building a strong capital base.
to maintain an optimum capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders plus its borrowings, if any, less cash and cash equivalents as presented on the face of the balance sheet.
The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. The amounts managed as capital by the Company
for the reporting periods under review are summarized as follows:
|
Particulars |
|
31 March 2017 |
|
Borrowings |
|
11986 |
|
Cash and bank balances |
|
9470 |
|
Net debt |
|
2516 |
|
Total equity |
|
82406 |
|
Overall financing |
|
84922 |
|
Gearing ratio |
|
3.0% |
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET (STANDALONE)
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
109.100 |
109.000 |
108.600 |
|
(b) Reserves & Surplus |
8131.400 |
7645.900 |
6753.400 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.100 |
0.400 |
1.300 |
|
Total
Shareholders’ Funds (1) + (2) |
8240.600 |
7755.300 |
6863.300 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
469.600 |
624.200 |
2046.200 |
|
(d) long-term
provisions |
54.900 |
41.700 |
168.600 |
|
Total Non-current
Liabilities (3) |
524.500 |
665.900 |
2214.800 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1198.600 |
2389.000 |
626.000 |
|
(b) Trade
payables |
9717.500 |
7796.400 |
5575.300 |
|
(c) Other
current liabilities |
2781.500 |
684.900 |
968.100 |
|
(d) Short-term
provisions |
261.700 |
199.000 |
817.700 |
|
Total Current
Liabilities (4) |
13959.300 |
11069.300 |
7987.100 |
|
|
|
|
|
|
TOTAL |
22724.400 |
19490.500 |
17065.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
885.900 |
886.000 |
906.400 |
|
(ii)
Intangible Assets |
35.900 |
39.700 |
78.000 |
|
(iii)
Capital work-in-progress |
0.000 |
24.200 |
5.500 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
248.800 |
465.600 |
253.600 |
|
(c) Deferred tax assets (net) |
214.600 |
232.100 |
200.900 |
|
(d) Long-term Loan and Advances |
0.000 |
0.000 |
95.500 |
|
(e) Other
Non-current assets |
4145.400 |
3234.500 |
2236.700 |
|
Total Non-Current
Assets |
5530.600 |
4882.100 |
3776.600 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
191.600 |
117.800 |
350.000 |
|
(b)
Inventories |
343.900 |
654.600 |
298.300 |
|
(c) Trade
receivables |
13576.300 |
10382.900 |
9833.100 |
|
(d) Cash
and cash equivalents |
947.000 |
1558.300 |
1282.600 |
|
(e)
Short-term loans and advances |
29.500 |
126.700 |
741.700 |
|
(f) Other
current assets |
2105.500 |
1768.100 |
782.900 |
|
Total
Current Assets |
17193.800 |
14608.400 |
13288.600 |
|
|
|
|
|
|
TOTAL |
22724.400 |
19490.500 |
17065.200 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
17983.800 |
15134.300 |
12333.600 |
|
|
Other Income |
212.500 |
148.200 |
91.200 |
|
|
TOTAL |
18196.300 |
15282.500 |
12424.800 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
13669.600 |
11903.900 |
9576.600 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
310.700 |
(356.300) |
(154.100) |
|
|
Employees benefits
expense |
1025.800 |
938.100 |
806.000 |
|
|
Exceptional Items |
643.200 |
0.000 |
0.000 |
|
|
Other expenses |
957.900 |
760.200 |
612.500 |
|
|
TOTAL |
16607.200 |
13245.900 |
10841.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
1589.100 |
2036.600 |
1583.800 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
233.400 |
188.500 |
149.200 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
1355.700 |
1848.100 |
1434.600 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
95.400 |
120.700 |
74.500 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
1260.300 |
1727.400 |
1360.100 |
|
|
|
|
|
|
|
Less |
TAX |
510.500 |
590.000 |
456.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
749.800 |
1137.400 |
904.100 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
5117.100 |
2963.400 |
2906.700 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
|
|
|
|
Basic |
13.78 |
20.91 |
16.74 |
|
|
Diluted |
13.73 |
20.76 |
16.59 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
2251.000 |
(1701.700) |
773.200 |
|
Net cash flows from (used in) operating activity |
1629.100 |
(2118.000) |
308.400 |
QUARTERLY
RESULTS
|
Particulars |
|
30.06.2017 (Unaudited) |
30.09.2017 (Unaudited) |
|
|
|
1st Quarter |
2nd
Quarter |
|
Net Sales |
|
3545.300 |
5063.400 |
|
Total Expenditure |
|
3176.800 |
4497.100 |
|
PBIDT (Excl OI) |
|
368.500 |
566.300 |
|
Other Income |
|
1.900 |
15.900 |
|
Operating Profit |
|
370.400 |
582.200 |
|
Interest |
|
70.900 |
75.800 |
|
Exceptional Items |
|
NA |
NA |
|
PBDT |
|
299.500 |
506.400 |
|
Depreciation |
|
23.300 |
22.600 |
|
Profit Before Tax |
|
276.200 |
483.600 |
|
Tax |
|
95.700 |
169.200 |
|
Provisions and
contingencies |
|
NA |
NA |
|
Profit After Tax |
|
180.500 |
314.600 |
|
Extraordinary Items |
|
NA |
NA |
|
Prior Period Expenses |
|
NA |
NA |
|
Other Adjustments |
|
NA |
NA |
|
Net Profit |
|
180.500 |
314.600 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
275.55 |
250.41 |
291.00 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
1.32 |
1.46 |
1.25 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
259.47 |
239.05 |
212.50 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
4.62 |
3.11 |
5.31 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
1.72 |
2.14 |
1.60 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.61 |
0.57 |
0.47 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.15 |
0.31 |
0.09 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
1.69 |
1.43 |
1.16 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.11 |
0.12 |
0.14 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
6.81 |
10.80 |
10.62 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
4.17 |
7.52 |
7.33 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
3.30 |
5.84 |
5.30 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
9.10 |
14.67 |
13.17 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
1.23 |
1.32 |
1.66 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
1.21 |
1.26 |
1.63 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.36 |
0.40 |
0.40 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
10.99 |
21.92 |
5.76 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
1.23 |
1.32 |
1.66 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK
PRICES
|
Face Value |
INR 2/- |
|
Market Value |
INR 621.05/- |
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
108.600 |
109.000 |
109.100 |
|
Reserves & Surplus |
6753.400 |
7645.900 |
8131.400 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
1.300 |
0.400 |
0.100 |
|
Net
worth |
6863.300 |
7755.300 |
8240.600 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
626.000 |
2389.000 |
1198.600 |
|
Total
borrowings |
626.000 |
2389.000 |
1198.600 |
|
Debt/Equity
ratio |
0.091 |
0.308 |
0.145 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
12333.600 |
15134.300 |
17983.800 |
|
|
|
22.708 |
18.828 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
12333.600 |
15134.300 |
17983.800 |
|
Profit |
904.100 |
1137.400 |
749.800 |
|
|
7.33% |
7.52% |
4.17% |
ABRIDGED
BALANCE SHEET (CONSOLIDATED)
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
(1)Shareholders' Funds |
|
|
|
(a) Share Capital |
109.100 |
109.000 |
|
(b) Reserves &
Surplus |
9822.200 |
9093.800 |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
|
|
|
|
|
(d) Share Application
money pending allotment |
0.100 |
0.400 |
|
(2) Non-Controlling Interest |
172.500 |
82.100 |
|
Total Shareholders’ Funds
(1) + (2) |
10103.900 |
9285.300 |
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
(a) long-term borrowings |
632.200 |
501.200 |
|
(b) Deferred tax
liabilities (Net) |
30.700 |
30.700 |
|
(c) Other long term
liabilities |
469.600 |
54.600 |
|
(d) long-term provisions |
135.800 |
169.500 |
|
Total Non-current
Liabilities (3) |
1268.300 |
756.000 |
|
|
|
|
|
(4) Current Liabilities |
|
|
|
(a) Short term borrowings |
2458.600 |
3272.100 |
|
(b) Trade payables |
14001.300 |
11786.500 |
|
(c) Other current
liabilities |
5152.400 |
3644.000 |
|
(d) Short-term provisions |
521.300 |
471.800 |
|
Total Current Liabilities
(4) |
22133.600 |
19174.400 |
|
|
|
|
|
TOTAL |
33505.800 |
29215.700 |
|
|
|
|
|
II.
ASSETS |
|
|
|
(1) Non-current assets |
|
|
|
(a) Fixed Assets |
|
|
|
(i) Tangible assets |
1053.000 |
1084.200 |
|
(ii) Intangible Assets |
691.400 |
670.700 |
|
(iii) Capital
work-in-progress |
0.000 |
24.200 |
|
(iv) Investments accounts
for using the equity method |
31.300 |
18.700 |
|
(v) Goodwill
Consolidation |
0.000 |
0.000 |
|
(b) Non-current
Investments |
1.700 |
185.900 |
|
(c) Deferred tax assets
(net) |
246.800 |
248.700 |
|
(d) Long-term Loan and
Advances |
0.000 |
0.000 |
|
(e) Other Non-current
assets |
4478.300 |
3378.000 |
|
Total Non-Current Assets |
6502.500 |
5610.400 |
|
|
|
|
|
(2) Current assets |
|
|
|
(a) Current investments |
191.600 |
117.800 |
|
(b) Inventories |
385.000 |
976.200 |
|
(c) Trade receivables |
21237.600 |
16565.100 |
|
(d) Cash and cash
equivalents |
2617.400 |
3786.100 |
|
(e) Short-term loans and
advances |
0.000 |
0.000 |
|
(f) Other current assets |
2571.700 |
2160.100 |
|
Total Current Assets |
27003.300 |
23605.300 |
|
|
|
|
|
TOTAL |
33505.800 |
29215.700 |
PROFIT
& LOSS ACCOUNT (CONSOLIDATED)
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
Income |
32079.100 |
25082.500 |
|
|
Other Income |
112.300 |
79.000 |
|
|
TOTAL |
32191.400 |
25161.500 |
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
Cost of Materials
Consumed |
24820.000 |
19895.500 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
567.700 |
(493.200) |
|
|
Employees benefits
expense |
2439.700 |
2113.300 |
|
|
Shareloss of Associates |
572.600 |
175.400 |
|
|
Other expenses |
1285.500 |
1237.200 |
|
|
TOTAL |
29685.500 |
22928.200 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
2505.900 |
2233.300 |
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
525.800 |
457.400 |
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
1980.100 |
1775.900 |
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
191.100 |
204.900 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
1789.000 |
1571.000 |
|
|
|
|
|
|
Less |
TAX |
666.600 |
668.000 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
1122.400 |
903.000 |
|
|
|
|
|
|
Add |
OTHER COMPREHENSIVE INCOME
|
164.900 |
277.000 |
|
|
|
|
|
|
|
NET PROFIT |
3795.300 |
3274.800 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
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 |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
NATURE OF OPERATIONS
The Company, its subsidiaries, associates and joint ventures (collectively referred to as ‘the Group’) is one of the world’s leading companies in the water treatment field. The Company’s principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. The shares of the Company are listed in the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Company is domiciled in India and its registered office and its principal place of business is ‘WABAG HOUSE’, No.17, 200 Feet Thoraipakkam - Pallavaram Main Road, Sunnambu Kolathur, Chennai - 600 117.
BUSINESS ENVIRONMENT
During the year 2016-17, the global economy continued to witness slowdown driven by high political uncertainty,
weak global trade, and market volatility. Among the Advanced Economies the growth slumped to 1.7% (2.1%
in 2015). But it was marginally better in the Emerging Markets and Developing Economies (EMDEs) with growth
being almost flat at 4.1% (4.2% in 2015).
The Indian economy in 2016-17, witnessed a slowdown in its GDP growth momentum from7.9 % in 2015-16
to 7.1 %. The industrial, services and agriculture sector witnessed growths of 5.2%, 8.8% and 4.1% respectively.
The repo rates further eased by 50 basis points while inflation and fiscal deficits remained comfortable at 3.8% and 3.5% respectively. The year also witnessed the crucial initiatives undertaken by the Indian Government by way of demonetizing high value Indian currency in a bid to eliminate the use of counterfeit notes and facilitate transition from parallel economy to formal one. Though this but this initiative is expected to reap benefits in long run and encourage a shift to digital transaction modes.
STATE OF AFFAIRS
In the financial year 2016-17, the Company continued its growth momentum on key parameters, despite sluggish
Growth/downturn witnessed by industry across globe. The Company achieved a consolidated turnover of INR 32080.000 Million during the financial year 2016-17, as against previous year’s turnover of INR 25080.000 Million which a remarkable growth of 28% over the previous year. The Consolidated Profit after tax for the current financial year rose to INR 1020.000 Million from INR 890.000 Million in the FY 16, thereby recording a growth of 15%. The Standalone revenue too have increased by 19% and stood at INR 17980.000 Million in FY 2016-17 and the standalone Profit after tax was at INR 750.000 Million as against INR 1140.000 Million in previous year. The Company also achieved an order intake of over INR 36000.000 Million and its order backlog stood at around INR 82000.000 Million with framework contracts as at the year end. The consolidated EPS was at INR 18.82 for the year ended March 31, 2017 as against INR 16.31 in the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
WORLD OF WABAG
WABAG Group is one of the leading and most reputed multinational players in water treatment space. It has presence in over 20 countries and offers a comprehensive range of technological solutions. The Group is headquartered in Chennai and has an envious record of completing more than 2,300 projects over the last 30 years. The Group is actively involved in projects across India, Europe, Middle East, Africa, and South-East Asia and recently entered the Latin America market.
The Group’s history dates back to 1924 when it operated as a standalone unit in Breslau. Over the years, the Group underwent various restructuring through mergers and acquisitions. In 1973, it became a part of Deutsche Babcock group which was subsequently acquired by VA Tech, an Austrian Conglomerate, in 1999. In 2005, post-merger of VA Tech and SIEMENS, it became part of SIEMENS Group. However, later in 2005, WABAG’s Indian subsidiary that commenced operations in 1996 acquired the stake from SIEMENS through a Management Buy-Out. Subsequently, in 2007 WABAG India acquired the erstwhile parent Company WABAG Austria along with its subsidiaries.
GLOBAL ECONOMIC
SCENARIO
The global economy grew at 3.1% in 2016 compared to 3.4% in 2015 primarily owing to subdued demand in advanced economies, China’s economic rebalancing, commodity exporters adjusting to a steady decline in terms of trade and geopolitical uncertainties. The second half of the year witnessed a remarkable shift in activities with stronger-than-expected growth in the advanced economies driven by declining inventory drags and recovery in manufacturing output.
The GDP growth in advanced economies fell from 2.1% in 2015 to 1.7% in 2016. The US economy witnessed a weaker than expected growth of 1.6% compared to 2.6% in 2015 driven by persistent weakness in non-residential
investments, sizeable drawdown of inventories and fears of market volatility. In the Euro area, the declining output and demand (primarily low investments) resulted in a decline in growth from 2% in 2015 to 1.7% in 2016. However, the second half of 2016 saw Germany, Spain and United Kingdom witnessing stronger growth. In Japan, the weaker external demand and corporate investments continued to weigh down growth.
The scenario in Emerging Markets and Developing Economies (EMDEs) remained pretty diverse with growth marginally declining from 4.2% in 2015 to 4.1% in 2016. In the Latin America and Caribbean (LAC) region, the growth is expected to rebound followed by six years of slowdown.
However, the countries in the region would be required to look out for newer areas of growth to reduce poverty and boost prosperity. While Argentina and Brazil are steadily coming out of recession, Mexico is likely to continue with moderate growth and the Caribbean region will grow the fastest. Russia on the other hand, is well on way to come out of recession with a negative growth of 0.2% compared to a negative growth of 2.8% in 2015 driven by firming oil prices. Among the Emerging and developing Asia regions, the growth declined from 6.7% in 2015 to 6.4% driven by a slowdown in Indonesia (led by decline in private investments) and Thailand (led by slowdown in consumption and tourism). The growth in Middle East declined driven by slowdown in Saudi Arabia (1.4% growth in 2016 compared to 4.1% in 2015. This was primarily owing to decline in oil prices and civil unrest. The growth momentum in India also faced temporary economic challenges leading to a negative consumption.
The outlook for global economy remains strong with growth expected to be 3.5% in 2017 driven by a positive financial market sentiment towards emerging market economies with expectation of lower interest rates in advanced economies, reduced concern over China’s growth prospects and firming commodity prices. Following
these economic activities in advanced economies and EMDEs are expected to rebound strongly and growing by
2.0% and 4.5% respectively. The LAC region is expected to grow 1.1% in 2017 and then pick up pace to 2% in 2018.
INDIAN ECONOMIC
SCENARIO
In FY 2016-17, the Indian economy experienced a slowdown in its GDP growth momentum from 7.9% in FY 2015-16 to an estimated 7.1%. This was primarily on account of the demonetisation drive whereby 86% of currency in circulation had been withdrawn resulting in cash crunch issues which negatively impacted the consumption in the second half of FY 2016-17. As a result of this, most of the sectors of the economy are expected to witness a slowdown – the growth in gross value added (GVA) from services and industrial sector is likely to be 8.8% and 5.2% respectively compared to 9.9% and 8.2% respectively in the previous fiscal. An exception to this shall be the robust growth in agricultural sector which is expected to grow 4.1% compared to 0.76%on account of normal monsoon after two years of deficit.
Despite this near-term slowdown, the long-term prospects of the economy remains positive owing to the government’s commitment on meeting the fiscal targets, and focus on enhancing digital transactions and implementation of Goods and Services Tax (GST) that would lead to healthy growth of the organised sector. An estimate by McKinsey suggest that India’s shadow economy is nearly as large as 26% of its GDP resulting in one-fourth of the economy going unaccounted. Initiatives by the government to limit cash transactions and make digital transactions more lucrative are expected to migrate large chunk of this shadow economy into the formal sector. This will result in higher revenue collection which can be effectively used for infrastructural development. Moreover, there is a strong drive towards enhancing the country’s infrastructure scenario with FY 2017-18 budgetary allocation of INR 3.96 Lakh Million towards creating and upgrading infrastructure.
As on 31 March 31 2017, various economic indicators showed a positive sign with inflation being restricted to 3.81% and forex reserves surging to INR 24,103 bn, while fiscal deficit likely to be 3.5% of GDP. One key area that the government is keen to focus on is improving the “Ease of Doing Business” in the country through a series of initiatives. Currently, the country ranks at 130 out of 189 countries and the government aims to improve the country’s ranking to under 50 by 2018. In the short-run, the India’s economic outlook remains mildly positive with adjusting to various radical changes. However, in the long-run, the scenario is expected to improve driven by improving investor confidence in the country, important structural reforms, easing supply side bottlenecks, and implementation of facilitative fiscal and monetary policies. Driven by these, the IMF expects the country to grow 7.2% in 2018 and 7.7% in 2019.
GLOBAL WATER SCENARIO
Water is the most vital element essential for supporting life. Nearly 42% of the world’s total active workforce is heavily dependent on water while another 36% is moderately dependent on it. Despite this, there has been rampant misuse and wastage of water over the past few decades leading to serious water shortage across the globe. Water scarcity led by climatic conditions and poor water management is a key issue worldwide. Globally, the estimated annual fresh water withdrawal is pegged at 3,928 km3. As per the World Bank, nearly 660 mn people worldwide (primarily from middle and low income countries) lack access to clean water, resulting in these economies losing over US$ 250 mn every year because of insufficient water supply and sanitation services. Another 500 mn are located in areas where annual water consumption exceeds the local renewable water resources by a factor of two. In the past 50 years, the global per capita freshwater supplies have nearly halved with countries in Middle East & North Africa (MENA) and South Asia being classified as water-stressed regions.
As per the World Bank, the annual global fresh water withdrawals is estimated at 3,985.7 bn cubic metres, which constitutes nearly 9% of the total global internal resources. Regionally, this figure goes up to 138% in Middle East and North Africa combined and up to 228% in Arab World alone indicating that these regions are withdrawing far more water on an annual basis than the limited internal fresh water available. The scenario is no better in South Asia which withdraws nearly 52% of the total internal fresh water in the region. As per Water’s Digital Future Report by GWI, implementation of digital solutions is one key area that can lead to significant savings in capex and opex costs in the water sector. During 2016 to 2020, the total capex and opex spending across different utility spending categories globally is likely to be US$ 1,152 bn and US$ 1,829 bn respectively. It is estimated that effective implementation of digital solutions can lead to savings of nearly US$ 320 bn.
The availability of water resources across the globe. An assessment by Intergovernmental Panel on Climate Change suggests that for each degree of global warming nearly 7% of the global population will face higher exposure to decreased availability of fresh water resources. Several countries in MENA, South Asia and Latin America are already facing troubles due to this and are more vulnerable to increased drought risks.
INDIAN WATER SCENARIO
The water scenario in India is getting severe as perennial rivers are drying up at several locations and ground water levels reaching all-time low. This has given rise to the growing inequalities in water distribution and consumption resulting in rising socio-economic and environmental complexities. India’s per capita renewable internal freshwater resources in 2014 has declined to 1,116 m3 (close to scarcity levels) compared to the global average of 5,926 m3. Though, at present the country’s annual water availability of 1,123 bcm (bn cubic metres) is sufficient to meet the current demand, the situation is expected to worsen in future as water demand rises and availability declines. Moreover, the distribution of water is not consistent across geographies resulting in severe crisis in certain regions. Over the next decade, the consumption of water for domestic and industrial purposes is likely to double, while that of the agricultural consumption is expected to rise sharply. Additionally, the complexities arising from climate change and pollution of ground and surface water are aggravating the problems.
Water treatment infrastructure
The water treatment infrastructure in India is at a nascent stage. It is estimated that 70% of the surface water in India is contaminated by biological, toxic, organic and inorganic pollutants. Nearly 66,700 habitations across the country are affected due to presence of arsenic and fluorides in the drinking water. To counter this, the government under a special scheme has allocated a sum of INR 25,000 Million to provide clean and safe drinking water to its citizens.
In India, water is a state subject owing to differences in consumption pattern influenced by local conditions, topography and economy. At the centre, the water management is guided by the National Water Mission (focusses on conservation and equitable distribution of water through integrated water resources development and management) and National Water Policy 2012 (focusses developing guidelines for inclusive, equitable, socially just and transparent planning, distribution and management of water resources).
The concept of wastewater reuse is not new in India. Lack of supportive policy, low sewerage network coverage and insufficient sewage treatment and availability of fresh water led to slower pace of development in wastewater treatment industry. However, with the Government emphasising on reuse of reclaimed water in its various urban development schemes like Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Swachh Bharat Mission, Smart Cities Mission and the Namami Gange programme the industry is likely to witness growth.
As per a research report by TechSci, the wastewater treatment plants market in India is projected to grow at a CAGR of 12% during 2016-21 driven by rising water pollution, stringent regulatory norms and rapid urbanisation. Moreover, the municipal wastewater treatment plants’ rising penetration in residential and commercial sectors will further drive Indian wastewater treatment plants market.
INDIAN WATER OUTLOOK
India being an agrarian economy, majority of the population depends on agriculture or allied activities. This results in the country being heavily dependent on water for sustaining its economy. In India, of the 32 major cities, 22 face daily water shortage with Jamshedpur being the worst-hit with a supply gap of 70%. As per the World Bank, with the current pace of climate change and water mismanagement, India could lose nearly 6% of its GDP in 2050. Whereas, with efficient water management, it can add extra 1% to the economy of late, there has been rising awareness on water pollution and mismanagement issues. The government is taking up the matter seriously and making environment and pollution norms stricter. In a landmark ruling by the Hon’ble Supreme Court of India, the industrial units have been provided a deadline of three months to set-up a proper effluent treatment plant. Directions have been given to the state pollution control boards (PCBs) to disallow industrial units from operating in case of failure and even directed disconnecting the power supply to defaulting industrial units.
With this, the industrial houses have to mandatorily abide
by the pollution norms and ensure that wastewater is effectively treated and
discharged. In addition to this, the states have been provided a timeline of
three years to build common effluent treatment plants.
INDEX
OF CHARGES
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
G47110788 |
10053844 |
State Bank of India |
18/04/2007 |
30/05/2017 |
- |
28875000000.0 |
INDUSTRIAL FINANCE BRANCH155, ANNA SALAICHENNAITN600002IN |
|
2 |
C52615051 |
10522210 |
PUNJAB NATIONAL BANK |
12/09/2014 |
- |
05/05/2015 |
500000000.0 |
10, Raja Street,T NagarChennaiTN600017IN |
|
3 |
C08995409 |
10449852 |
STATE BANK OF INDIA |
29/08/2013 |
- |
24/06/2014 |
1350000000.0 |
INDUSTRIAL FINANCE BRANCH155, ANNA SALAICHENNAITN600002IN |
|
4 |
B71871834 |
10343240 |
ICICI BANK LIMITED |
09/02/2012 |
- |
26/03/2013 |
700000000.0 |
NO:1 CENOTAPH ROADTEYNAMPETCHENNAITN600018IN |
|
5 |
B71873053 |
10345629 |
ICICI BANK LIMITED |
28/02/2012 |
- |
26/03/2013 |
650000000.0 |
NO:1 CENOTAPH ROADTEYNAMPETCHENNAITN600018IN |
|
6 |
B14408769 |
10254346 |
ICICI BANK LIMITED |
30/11/2010 |
- |
24/05/2011 |
1000000000.0 |
LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGJ390015IN |
|
7 |
A73767303 |
90289859 |
STATE BANK OF INDIA |
13/12/2005 |
- |
20/11/2009 |
2545000000.0 |
OVERSEAS BRANCHJAWAHAR VYAPAR BHAVAN NO 1 TOLSTRY MARGNEW DELHIDL110001IN |
|
8 |
A71789200 |
10073730 |
HDFC BANK LIMITED |
13/08/2007 |
- |
21/10/2009 |
300000000.0 |
HDFC BANK HOUSESENAPATI BAPAT MARGLOWER PAREL WMUMBAIMH400013IN |
|
9 |
A71789119 |
90293326 |
HDFC BANK LIMITED |
22/04/2005 |
- |
21/10/2009 |
120000000.0 |
HDFC BANK HOUSESENAPATI BAPAT MARG LOWER PAREL (W)MUMBAIMH400013IN |
|
10 |
A72012206 |
10121647 |
STATE BANK OF INDIA |
28/07/2008 |
- |
10/10/2009 |
1600000000.0 |
INDUSTRIAL FINANCE BRANCH155 ANNA SALAICHENNAITN600002IN |
CONTINGENT
LIABILITIES:
|
PARTICULARS |
|
31.03.2017 (INR
in Million) |
|
Income tax demand including interest contested in appeal (Assessment Year 2011-12) |
|
40.100 |
|
Income tax demand including interest contested in appeal (Assessment Year 2009-10) |
|
63.900 |
|
Income tax demand including interest contested in appeal (Assessment Year 2012-13) |
|
59.700 |
|
Indirect tax matters under dispute |
|
821.400 |
|
a) The Company had been claiming deduction under section 80-IA of the Income Tax Act, 1961 from the financial year ended 31 March 2002 as a developer of infrastructure projects in India. The Finance Act 2009 amended the provisions of Section 80-IA retrospectively with effect from 01 April 2000 to make it inapplicable for persons having a mere works contract with the government or statutory authority. The Company believed that this amendment was in line with the objective of the government of incentivizing only a developer of infrastructure facility and not a mere works contractor. The Company strongly opined that, being a developer of infrastructure turnkey development contracts starting from the conceptualization to execution assuming significant financial commitment and risks, the Company would be treated as a developer and the amendment would not apply to it. Based on a legal opinion from a Senior Counsel, the Company had filed a writ petition in the High Court of Madras challenging the Constitutional validity of the retrospective amendment. The Company had subsequently received favourable Appellate Orders from CIT (Appeals) from financial years 2001-02 to 2006-07 allowing the benefit under section 80-IA of the Income Tax Act, while, the Income Tax department had raised a demand for ` 939 lakhs denying benefit under section 80-IA for the financial year 2008-09. Further to this, the Income Tax department had gone on appeal against the CIT (Appeals) order and was pending at the Income Tax Appellate Tribunal till the previous year. Considering these facts and as a matter of prudence, the Company had disclosed the total tax benefit so far claimed u/s 80-IA as contingent liability in the standalone financial statements upto 31 March 2016. However during the current year favourable orders from Income Tax Appellate Tribunal have been received by the Company which has not been contested. Hence the demand has not been considered as a contingent liability. b) The Company, also based on an opinion taken from a professional firm believes that the interest under section 234B on account of 80-IA disallowance discussed in
paragraph ‘a’ above amounting to INR 285.500 million as at 31 March 2016
would not be payable as the Jurisdictional High Court rulings and various
assessment orders commencing from financial year 2001-02 are in favour of the
Company on this aspect and on this basis, the amount of interest had been
disclosed as contingent liability. However as detailed in paragraph ‘a’
above, the same has not been considered as a contingent liability during the
current year. |
||
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND SIX MONTHS
SEPTEMBER 30, 2017
(INR In Million)
|
PARTICULARS |
QUARTER ENDED |
SIX MONTHS |
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
|
[Unaudited] |
[Unaudited] |
[Unaudited] |
|
1. Income from Operations |
|
|
|
|
Net Sales/income from
operations |
5063.400 |
3545.300 |
8608.700 |
|
Other Operating Income |
15.900 |
1.900 |
17.800 |
|
Total income from operations (net) |
5079.300 |
3547.200 |
8626.500 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Cost of materials consumed |
4016.900 |
2670.000 |
6686.900 |
|
Changes in inventories of finished goods. work-in-progress and stock
in trade |
(39.000) |
5.800 |
(33.200) |
|
Employee benefits expense |
308.900 |
302.100 |
611.000 |
|
Depreciation and Amortization Expenses |
22.600 |
23.300 |
45.900 |
|
Other Expenses |
210.300 |
198.900 |
409.200 |
|
Finance Costs |
75.800 |
70.900 |
146.700 |
|
Excise Duty |
0.000 |
0.000 |
0.000 |
|
Total expenses |
4595.500 |
3271.000 |
7866.500 |
|
Profit/ (Loss) from ordinary activities after finance cost but before
exceptional items |
483.800 |
276.200 |
760.000 |
|
Exceptional items |
0.000 |
0.000 |
0.000 |
|
Profit/ (Loss) from ordinary activities before tax |
483.800 |
276.200 |
760.000 |
|
Tax expenses |
169.200 |
95.700 |
264.900 |
|
Net Profit / (Loss) from ordinary activities after tax |
314.600 |
180.500 |
495.100 |
|
Extraordinary item (net of tax expense) |
0.000 |
0.000 |
0.000 |
|
Net Profit / (Loss) for the period |
314.600 |
180.500 |
495.100 |
|
Comprehensive Income |
(0.300) |
(0.700) |
(1.000) |
|
Net Profit/ (Loss) after taxes, minority interest and share of
profit/(loss) of associates |
314.300 |
179.800 |
494.100 |
|
|
|
|
|
|
Paid up equity share capital (Face Value of INR 2/-each) |
109.200 |
109.200 |
109.200 |
|
Reserve excluding Revaluation Reserve as per Balance Sheet of previous
accounting year |
- |
- |
-- |
|
Earnings per share (before extraordinary items) of INR 10/- each (not
annualized): |
- |
- |
- |
|
(a) Basic |
5.76 |
3.29 |
9.05 |
|
(b) Diluted |
5.74 |
3.28 |
9.02 |
SEGMENT-WISE
REVENUE, RESULTS, ASSETS AND LIABILITIES
(INR In million)
|
Particulars |
QUARTER ENDED |
SIX MONTHS |
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
|
[Unaudited] |
[Unaudited] |
[Unaudited] |
|
Segment Revenue |
|
|
|
|
India |
2733.300 |
1817.800 |
4551.100 |
|
Rest of World |
2284.700 |
1690.900 |
3975.500 |
|
Total |
5018.000 |
3508.700 |
8526.600 |
|
Add: Un-Allocable
revenue |
45.400 |
36.600 |
82.100 |
|
Less : Inter Segment
Revenue |
0.000 |
0.000 |
0.000 |
|
Net Sales/
Income from Operations |
5063.400 |
3545.300 |
8608.700 |
|
|
|
|
|
|
Segment Results (Profit/ Loss before Interest, tax and other
unallocable Items) |
|
|
|
|
India |
230.800 |
246.400 |
477.200 |
|
Rest of World |
809.200 |
586.500 |
1395.700 |
|
Total |
1040.000 |
832.900 |
1872.900 |
|
Less (i) Interest and bank Charges, net |
(77.300) |
(69.400) |
(146.600) |
|
(ii) Other Un-allocable Expenditure net off |
(541.800) |
(524.200) |
(1066.100) |
|
|
|
|
|
|
Add : (I) Un-allocable Income |
62.900 |
36.900 |
99.800 |
|
Total Before Tax |
483.800 |
276.200 |
760.000 |
|
|
|
|
|
|
Less : Exceptional
Items |
- |
- |
- |
|
|
|
|
|
|
Segment Assets |
|
|
|
|
India |
16934.600 |
14997.500 |
16934.600 |
|
Rest of World |
5732.900 |
5629.900 |
5732.900 |
|
Unallocable |
2274.000 |
2597.100 |
2274.000 |
|
Total |
24941.500 |
23224.500 |
24941.500 |
|
|
|
|
|
|
Segment Liabilities
|
|
|
|
|
India |
4949.700 |
4707.400 |
4949.700 |
|
Rest of World |
7131.600 |
6058.800 |
7131.600 |
|
Unallocable |
4381.800 |
4037.100 |
4381.800 |
|
Total |
16463.100 |
14803.300 |
16463.100 |
UNAUDITED
STATEMENT OF ASSETS AND LIABILITIES AS AT SEPTEMBER 30, 2017
(INR In Million)
|
SOURCES OF
FUNDS |
30.09.2017 |
|
[Unaudited] |
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1) Shareholders' Funds |
|
|
(a) Share Capital |
109.200 |
|
(b) Reserves &
Surplus |
8368.800 |
|
(c) Money received
against share warrants |
0.000 |
|
|
|
|
(2) Share Application
Money Pending Allotment |
0.400 |
|
Total Shareholders’ Funds
|
8478.400 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
|
(c) Other long term
liabilities |
405.100 |
|
(d) long-term provisions |
50.100 |
|
Total Non-current
Liabilities (3) |
455.200 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
3390.600 |
|
(b) Trade payables |
9237.300 |
|
(c) Other current liabilities |
2878.500 |
|
(d) Short-term provisions |
201.500 |
|
Total Current Liabilities
(4) |
15707.900 |
|
|
|
|
TOTAL |
24641.500 |
|
|
|
|
II. ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
|
|
(i) Tangible assets |
860.500 |
|
(ii) Intangible Assets |
28.500 |
|
(iii) Capital work-in-progress |
0.000 |
|
(iv) Intangible assets
under development |
0.000 |
|
(b) Non-current
Investments |
253.500 |
|
(c) Deferred tax assets
(net) |
222.200 |
|
(d) Long-term Loan and
Advances |
0.000 |
|
(e) Other Non-current
assets |
4397.500 |
|
Total Non-Current Assets |
5762.200 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
0.000 |
|
(b) Inventories |
377.100 |
|
(c) Trade receivables |
15818.600 |
|
(d) Cash and cash equivalents |
388.500 |
|
(e) Short-term loans and advances |
30.500 |
|
(f) Other current assets |
2564.600 |
|
Total Current Assets |
19179.300 |
|
|
|
|
TOTAL |
24941.500 |
Note:
- The above results were reviewed by the Audit Committee on 07 November 2017 and approved and taken on record by the Board at its meeting held on 08 November 2017 and a limited review has been carried out by the Statutory Auditors of the Company.
- The Company has reported segment information as per Indian Accounting Standard 108 "Operating Segments" (IND AS 108) read with SEBI’s circular dated 05 July 2016. Accordingly, the Company has identified the geographical components as its operating segments for reporting and is consistent with performance assessment and resource allocation by the management. Segment revenue comprises sales and operational income allocable specifically to a segment. Un-allocable expenditure mainly includes employee expense, depreciation, foreign exchange loss and other expenses. Un-allocable income primarily includes other operating income and foreign exchange gain.
- In respect of the Joint Venture in Oman, pursuant to the arbitration award rejecting the claim for waiver of liquidated damages, the Company had made a payment during the year ended 31 March 2017 as investment and impaired the same, which is disclosed under Exceptional Items.
- Figures for the previous periods have been regrouped/reclassified to conform to the figures presented in the current period.
FIXED ASSETS
·
· Plant and Machinery
· Furniture and Fittings
· Electrical Equipments
· Office Equipments
· Computers
· Vehicles
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 records 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
|
INR |
|
US Dollar |
1 |
INR 63.98 |
|
|
1 |
INR 88.13 |
|
Euro |
1 |
INR 78.35 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVD |
|
|
|
|
Analysis Done by
: |
PYK |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE FACTORS
|
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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.