|
|
|
MIRA INFORM REPORT
|
Report No. : |
487854 |
|
Report Date : |
24.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
THERMAX LIMITED |
|
|
|
|
Registered
Office : |
D-13, MIDC Industrial
Area, R.D. Aga Road, Chinchwad, Pune – 411019, Maharashtra |
|
Tel. No.: |
91-20-27475941-
42/ 66122100 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
30.06.1980 |
|
|
|
|
Com. Reg. No.: |
11-022787 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 238.300 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29299PN1980PLC022787 |
|
|
|
|
IEC No.: |
0388013508 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT3910D |
|
|
|
|
GST No.: |
27AAACT3910D1ZS |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Boiler and Heaters, Absorption Chillers/ Heat Pumps,
Power Plants, Solar Equipment, Air Pollution Control Equipment/ System, Water
and Waste Recycle Plant, Ion Exchange Resins and Performance Chemicals and
Related Services. [Registered
Activity] |
|
|
|
|
No. of Employees
: |
3488 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A++ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was
incorporated in the year 1980 and it manufactures equipment and machinery
used to both produce and to conserve energy. It
operates through a number of divisions including boilers, heat recovery,
steam generators, water treatment plants and air pollution control equipment.
It also produce steam and gas turbines and diesel gensets through a number of
strategic alliances. As per
financials of March 2017, the company has registered a decline in its revenue
as compared to its previous year’s revenue and has reported average profit
margin of 3.74%. Rating
takes into consideration the company’s long established track record of
business operations marked by healthy net worth base along with low solvency
indicators and good liquidity position. Rating
also takes into account the strong market position of the company in the
energy equipment business as one of the leading players in providing turnkey
solutions for boilers, heaters, chillers and captive power plants in the
domestic business and well experienced management team. Shares
are quoted very high on stock exchanges. (Share are traded at a price of INR
1284.20 against its face value of INR 2 on BSE.) However,
rating strength is partially offset by increasing competitive intensity from
domestic as well as global players putting pressure on margins and ability to
manage the cost of basic raw materials. As per
quarterly financials of September 2017, the company has achieved a sound
revenue of INR 8,638.7 million and has reported decent profit margin of 6.58%. Payments
are reported to be regular as per commitments. In view of aforesaid, the company can be considered good for business dealings at normal 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 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term Rating = AA+ |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
13.01.2017 |
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 24.01.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE [91-9860090365/ 79-26575408/ 20-27475941/ 42]
LOCATIONS
|
Registered Office/ Factory 1 : |
D-13, MIDC Industrial
Area, R.D. Aga Road, Chinchwad, Pune – 411019, Maharashtra, India |
|
Tel. No.: |
91-20-27475941/
42/ 66155000/ 66122100 |
|
Mobile No.: |
91-9860090365 [Office] |
|
Fax No.: |
91-20-66122142 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Thermax House, 14, Mumbai-Pune Road, Wakdewadi, Pune –
411003, Maharashtra, India |
|
Tel. No.: |
91-20-66051200 /
25542122 |
|
Fax No.: |
91-20-25542242 |
|
|
|
|
Factory 2 : |
98-99, Bhosari MIDC Industrial Area, Bhosari, Pune - 411
026, Maharashtra, India |
|
|
|
|
Factory 3 : |
D-1 Block, MIDC Industrial Area, Chinchwad, Pune - 411
019, Maharashtra, India |
|
|
|
|
Factory 4 : |
Plot No T-1 MIDC, Chincholi, Taluka Mohol, District
Solapur – 413 255, Maharashtra, India |
|
|
|
|
Factory 5 : |
At Paudh, Post Mazgaon, Taluka Khalapur, District Raigad -
410206, Maharashtra, India |
|
|
|
|
Factory 6 : |
Gat No.125, Crusher Road, At post Rohakal, Taluka - Khed,
District – Pune - 410501, Maharashtra, India |
|
|
|
|
Factory 7 : |
Plot No. 21/1-2-3, GIDC Manjusar, Taluka - Savli,
District. Vadodara - 391775, Gujarat, India |
|
|
|
|
Factory 8 : |
Survey No-169, Village Dhrub, Taluka Mundra, Mundra -
370421, District Kutch, Gujarat, India |
|
|
|
|
Factory 9 : |
Plot No 903/1, GIDC, Jhagadia Industrial Estate, Jhagadia,
District Bharuch- 393110, Gujarat, India |
|
Tel No.: |
91-79-26575408 |
|
|
|
|
Regional Office : |
Gariahat Mall, 5th floor, 13 Jamir Lane, Kolkata-700019, West Bengal,
India |
|
Tel No.: |
91-33-66070800 |
|
|
|
|
Boilere Heater Division : |
B & H Group, Energy House, D-III Plot No 38 & 39, MIDC,
Chinchwad, Pune, India |
DIRECTORS
AS ON: 31.03.2017
|
Name : |
Ms. Meher Pudumjee |
|
Designation : |
Chairperson |
|
Address : |
5, Naylor Road, Pune – 411001, Maharashtra, India |
|
Date of
Appointment: |
15.01.2001 |
|
DIN No.: |
00019581 |
|
|
|
|
Name : |
Mr. Pheroz Naswanjee Pudumjee |
|
Designation : |
Director |
|
Address : |
5, Naylor Road, Pune – 411001, Maharashtra, India |
|
Date of
Appointment: |
15.01.2001 |
|
DIN No.: |
00019602 |
|
|
|
|
Name : |
Mrs. Arnavaz Rohinton Aga |
|
Designation : |
Director |
|
Address : |
12 Boat Club Road, Pune – 411001, Maharashtra, India |
|
Date of
Appointment: |
05.06.1982 |
|
DIN No.: |
00019622 |
|
|
|
|
Name : |
Mr. Nawshir Mirza |
|
Designation : |
Director |
|
Address : |
6A, Somerset Place 61-D, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India |
|
Date of
Appointment: |
03.05.2011 |
|
DIN No.: |
00044816 |
|
|
|
|
Name : |
Dr. Jairam Varadaraj |
|
Designation : |
Director |
|
Address : |
No.6, East End, Kallimadai Main Road, Singanallur, Coimbatore-641005, Tamilnadu, India |
|
Date of
Appointment: |
31.03.2003 |
|
DIN No.: |
00058056 |
|
|
|
|
Name : |
Dr. Raghunath A. Mashelkar |
|
Designation : |
Director |
|
Address : |
D-4, Varsha Park, Raghunath Bunglow, Baner Road, Baner, Pune - 411045, Maharashtra, India |
|
Date of
Appointment: |
29.01.2008 |
|
DIN No.: |
00074119 |
|
|
|
|
Name : |
Mr. Shashishekhar Balkrishna Pandit |
|
Designation : |
Director |
|
Address : |
Pracheeti, S-43/1, Behind Hotel Chaitraban, Paud Road, Bavdhan Kurd, Pune-411021, Maharashtra, India |
|
Date of
Appointment: |
30.05.2017 |
|
DIN No.: |
00075861 |
|
|
|
|
Name : |
Mr. Harsh Charandas Mariwala |
|
Designation : |
Additional Director |
|
Address : |
2nd Floor, 7th On The Hill, Auxilium Convent Road, Rajendra Kumar Chowk, Pali Hill, Bandra (West), Mumbai – 400050, Maharashtra, India |
|
Date of
Appointment: |
10.11.2016 |
|
DIN No.: |
00210342 |
|
|
|
|
Name : |
Dr. Valentin Von Massow |
|
Designation : |
Director |
|
Address : |
7,Kidderpore Avenue London Nw3 7sx, Great Britain – 111111, United Kingdom |
|
Date of
Appointment: |
31.01.2006 |
|
DIN No.: |
00239314 |
|
|
|
|
Name : |
Mr. Unnikrishnan Mangalath Sukumara Panicker |
|
Designation : |
Managing Director And Chief Executive Officer |
|
Address : |
L-201/202, Lyra Satellite Towers, Near Army Sports Institute, Koregaon Park Annex, Pune - 411036, Maharashtra, India |
|
Date of
Appointment: |
01.07.2007 |
|
DIN No.: |
01460245 |
KEY EXECUTIVES
|
Name : |
Mr. Kedar Purushottam Phadke |
|
Designation : |
Company Secretary |
|
Address : |
D-4, Arvind Complex, Hingne Khurd, Sinhagad Road, Pune-411051, Maharashtra, India |
|
Date of Appointment : |
08.08.2017 |
|
PAN No.: |
ABQPP3732P |
|
|
|
|
Name : |
Mr. Amitabha Mukhopadhyay |
|
Designation : |
Group CFO and Member – Executive Council |
|
Address : |
F 104, Maestros Salunkhe Vihar Road, Pune – 411048, Maharashtra, India |
|
Date of Appointment: |
27.05.2014 |
|
PAN No.: |
ADBPM6491R |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 31.12.2017
|
Category of shareholder |
Total nos. shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957)As a % of (A+B+C2) |
|
|
(A) Promoter &
Promoter Group |
73855305 |
61.98 |
|
|
(B) Public |
38759555 |
32.53 |
|
|
(C) Non
Promoter-Non Public |
6541440 |
5.49 |
|
|
Grand Total |
119156300 |
100.00 |
Statement showing
shareholding pattern of the Promoter and Promoter Group
|
Category of shareholder |
Total nos. 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 |
6000 |
0.01 |
|
|
Pheroz Pudumjee |
6000 |
0.01 |
|
|
Any Other
(specify) |
73849305 |
61.98 |
|
|
RDA Holdings Pvt.
Ltd. |
64328500 |
53.99 |
|
|
ARA Trusteeship
Pvt. Ltd. |
9520805 |
7.99 |
|
|
Sub Total A1 |
73855305 |
61.98 |
|
|
A=A1+A2 |
73855305 |
61.98 |
Statement showing
shareholding pattern of the Public shareholder
|
Category & Name of the Shareholders |
Total no. shares held |
Shareholding % calculated as per SCRR, 1957
As a % of (A+B+C2) |
|
|
B1) Institutions |
0.00 |
||
|
Mutual Funds/ |
11452272 |
9.61 |
|
|
KOTAK MAHINDRA
BALANCE UNIT SCHEME 99 |
1280365 |
1.07 |
|
|
SUNDARAM MUTUAL
FUND A/C SUNDARAM SELECT MIDCAP |
1293614 |
1.09 |
|
|
UTI-MAHILA UNIT
SCHEME |
1546905 |
1.30 |
|
|
SBI MAGNUM
MULTIPLIER FUND |
3687358 |
3.09 |
|
|
Foreign Portfolio
Investors |
17494607 |
14.68 |
|
|
MATTHEWS PACIFIC
TIGER FUND |
5310034 |
4.46 |
|
|
GOLDMAN SACHS
INDIA FUND LIMITED |
1608532 |
1.35 |
|
|
PINEBRIDGE
INVESTMENTS GF MAURITIUS LIMITED |
2580488 |
2.17 |
|
|
Financial
Institutions/ Banks |
221596 |
0.19 |
|
|
Insurance
Companies |
1793990 |
1.51 |
|
|
LIFE INSURANCE
CORPORATION INDIA |
1768720 |
1.48 |
|
|
Sub Total B1 |
30962465 |
25.98 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0.00 |
||
|
B3)
Non-Institutions |
0.00 |
||
|
Individual share
capital up to INR 0.200 Million |
5413632 |
4.54 |
|
|
Individual share
capital in excess of INR 0.200 Million |
312500 |
0.26 |
|
|
NBFCs registered
with RBI |
40825 |
0.03 |
|
|
Any Other
(specify) |
2030133 |
1.70 |
|
|
Trusts |
120 |
0.00 |
|
|
NRI – Repat |
114515 |
0.10 |
|
|
Clearing Members |
10775 |
0.01 |
|
|
NRI – Non- Repat |
398391 |
0.33 |
|
|
Bodies Corporate |
1445223 |
1.21 |
|
|
IEPF |
61109 |
0.05 |
|
|
Sub Total B3 |
7797090 |
6.54 |
|
|
B=B1+B2+B3 |
38759555 |
32.53 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Boiler and Heaters, Absorption Chillers/ Heat Pumps, Power
Plants, Solar Equipment, Air Pollution Control Equipment/ System, Water and
Waste Recycle Plant, Ion Exchange Resins and Performance Chemicals and
Related Services. [Registered
Activity] |
|
|
|
|
Brand Names : |
Not Divulged |
|
|
|
|
Agencies Held : |
Not Divulged |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
|
|
Selling : |
Not Divulged |
|
|
|
|
Purchasing : |
Not Divulged |
PRODUCTION STATUS: [NOT AVAILABLE]
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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|
No. of Employees : |
3488 (Approximately) |
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
Bankers : |
· Union Bank of India · Bank of Baroda · Canara Bank · Citibank N.A · Corporation Bank · ICICI Bank Limited · State Bank of India ·
The HSBC Limited |
||||||||||||||||||||||||
|
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|
||||||||||||||||||||||||
|
Facilities : |
|
|
Auditors 1 : |
|
|
Name : |
B.K. Khare and
Company Chartered
Accountants |
|
Address : |
706/ 707, Sharda
Chambers, New Marine Lines, Mumbai – 400020, Maharashtra, India |
|
|
|
|
Auditors 2 : |
|
|
Name : |
SRBC and Co LLP Chartered
Accountants |
|
Address : |
C-401, Panchshil Tech Park, Yerwada, Pune – 411006, Maharashtra, India
|
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries
Companies DOMESTIC: |
· Thermax Engineering Construction Company Limited · Thermax Instrumentation Limited · Thermax Onsite Energy Solutions Limited · Thermax Sustainable Energy Solutions Limited ·
First Energy Private Limited |
|
|
|
|
Subsidiaries
Companies OVERSEAS : |
· Thermax International Limited, Mauritius · Thermax Europe Limited, UK · Thermax Inc., USA. · Thermax do Brasil Energia e Equipamentos Ltda, Brazil · Thermax (Zhejiang) Cooling & Heating Engineering Co. Limited, China · Thermax Netherlands B.V 7. Thermax Denmark ApS · Danstoker A/S, Denmark · Ejendomsanpartsselskabet Industrivej Nord 13, Denmark · Rifox – Hans Richter GmbH Spezialarmaturen, Germany · Thermax Sdn. Bhd., Malaysia · Boilerworks A/S, Denmark · Boilerworks Properties ApS, Denmark · Thermax Engineering Singapore Pte. Limited · Thermax Senegal S.A.R.L, Senegal · PT Thermax International, Indonesia · Thermax Nigeria Limited, Nigeria · Thermax Energy & Environment Philippines Corporation · ESOP Trust and Employee Welfare Trusts · Thermax Hong Kong Limited · Thermax Denmark ApS |
|
|
|
|
Joint Ventures : |
· Thermax SPX Energy Technologies Limited · Thermax Babcock & Wilcox Energy Solutions Private Limited |
|
|
|
|
Parent Entity: |
RDA Holdings Private Limited |
|
|
|
|
Enterprises Over
which control is exercised by individuals listed in D above: |
· Thermax Foundation, India [Formerly known as Thermax Social Initiative Foundation] · KRA Holdings Private Limited, India |
CAPITAL STRUCTURE
AS ON: 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
375000000 |
Equity Shares |
INR 2/- each |
INR 750.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119156300 |
Equity Shares |
INR 2/- each |
INR 238.300
Million |
|
|
|
|
|
Reconciliation of
the shares outstanding at the beginning and at the end of the year
|
Particulars |
As on 31.03.2017 |
|
|
No. of Shares |
INR in Million |
|
|
Equity Shares of INR 2/- each issued, subscribed and fully paid |
|
|
|
Shares outstanding at the beginning of period |
119156300 |
238.300 |
|
Shares outstanding at the end of period |
119156300 |
238.300 |
Term/rights attached to equity shares
Equity Shares: The Company
has one class of equity shares having a par value of INR 2 per share. Each
shareholder is eligible for one vote per share held. The dividend proposed by
the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend. In the
event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential amounts,
in proportion to their shareholding.
Equity Shares held by holding company
|
Name of
Shareholders |
31.03.2016 INR in Million |
|
Holding company |
|
|
RDA Holding and Trading Private Limited, India 64328500 [Equity
shares of
INR 2/- each fully paid] |
128.700 |
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholders |
As on 31.03.2017 |
|
|
Number of Shares |
% holding |
|
|
RDA Holding and Trading Private Limited, India |
64328500 |
53.99 |
|
ARA Trusteeship Company Private Limited |
9520805 |
7.99 |
As per of the company. Including its register of shareholders/ members
and other declarations received from shareholders regarding beneficial interest,
the above shareholding represents the legal ownerships of shares.
(e) The company has several trusts set up for welfare of employees
[including ESOP trust]. Such trust together hold 6541440 [Previous year
6541440] equity shares representing 5.49% [Previous year 5.49%] (March 31,
2016:5.49%; April 1, 2015: 5.49%) of equity shares in the company.
FINANCIAL DATA
[all figures are
in INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
238.300 |
238.300 |
238.300 |
|
(b) Reserves & Surplus |
23859.300 |
23183.200 |
21233.200 |
|
(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) |
24097.600 |
23421.500 |
21471.500 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
5.500 |
7.200 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c)
Other long term liabilities |
594.700 |
620.800 |
461.600 |
|
(d)
long-term provisions |
97.400 |
50.500 |
68.200 |
|
Total
Non-current Liabilities (3) |
692.100 |
676.800 |
537.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
662.200 |
907.500 |
1042.100 |
|
(b)
Trade payables |
9245.100 |
8261.400 |
8705.300 |
|
(c)
Other current liabilities |
9956.900 |
12456.900 |
14588.000 |
|
(d)
Short-term provisions |
1302.100 |
1200.300 |
1232.300 |
|
Total
Current Liabilities (4) |
21166.300 |
22826.100 |
25567.700 |
|
|
|
|
|
|
TOTAL |
45956.000 |
46924.400 |
47576.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
5205.900 |
5616.900 |
5817.600 |
|
(ii)
Intangible Assets |
340.400 |
218.900 |
255.100 |
|
(iii)
Capital work-in-progress |
1262.800 |
267.100 |
139.000 |
|
(iv) Intangible assets under development |
28.300 |
322.100 |
252.700 |
|
(b) Non-current
Investments |
6397.300 |
5392.100 |
3438.400 |
|
(c) Deferred tax assets
(net) |
1037.300 |
1052.600 |
611.700 |
|
(d) Long-term Loan
and Advances |
1176.800 |
1145.200 |
1927.900 |
|
(e)
Other Non-current assets |
1904.900 |
1573.300 |
1027.700 |
|
Total
Non-Current Assets |
17353.700 |
15588.200 |
13470.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
7647.300 |
8390.400 |
7833.800 |
|
(b)
Inventories |
2286.500 |
2247.700 |
3159.500 |
|
(c)
Trade receivables |
9553.700 |
12254.300 |
13971.900 |
|
(d)
Cash and cash equivalents |
709.300 |
1783.600 |
2572.100 |
|
(e)
Short-term loans and advances |
5878.400 |
4670.200 |
4317.400 |
|
(f)
Other current assets |
2527.100 |
1990.000 |
2251.400 |
|
Total
Current Assets |
28602.300 |
31336.200 |
34106.100 |
|
|
|
|
|
|
TOTAL |
45956.000 |
46924.400 |
47576.200 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
38702.900 |
44589.200 |
46027.100 |
|
|
|
Other Income |
1026.500 |
1140.200 |
1166.200 |
|
|
|
TOTAL |
39729.400 |
45729.400 |
47193.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
19830.600 |
25081.300 |
27307.800 |
|
|
|
Purchases of Stock-in-Trade |
710.500 |
651.800 |
698.500 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
62.000 |
(63.900) |
(247.400) |
|
|
|
Employees benefits expense |
4589.200 |
4502.100 |
4502.800 |
|
|
|
Excise duty |
1066.400 |
1206.400 |
0.000 |
|
|
|
Exceptional items |
1328.400 |
0.000 |
0.000 |
|
|
|
Other expenses |
8706.300 |
9469.900 |
9123.100 |
|
|
|
TOTAL |
36293.400 |
40847.600 |
41384.800 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
3436.000 |
4881.800 |
5808.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
35.900 |
46.000 |
196.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
3400.100 |
4835.800 |
5611.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
654.300 |
608.900 |
641.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
2745.800 |
4226.900 |
4970.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1297.500 |
1252.000 |
1611.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
1448.300 |
2974.900 |
3359.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
|
14141.200 |
9930.900 |
|
|
|
Other
Earnings |
|
232.600 |
330.000 |
|
|
TOTAL EARNINGS |
NA |
14373.800 |
10260.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1016.300 |
1670.800 |
|
|
|
Components and Stores
parts |
|
1264.100 |
1091.800 |
|
|
|
Consumables |
|
72.300 |
59.100 |
|
|
|
Capital Goods |
|
30.900 |
28.700 |
|
|
TOTAL IMPORTS |
NA |
2383.600 |
2850.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(INR) |
12.15 |
24.97 |
28.19 |
|
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 |
4792.600 |
4397.100 |
4138.800 |
|
|
|
|
|
|
Net Cash flow from operating activities |
3453.000 |
2880.700 |
2940.900 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
90.10 |
100.31 |
110.80 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
4.05 |
3.64 |
3.29 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
164.28 |
117.18 |
113.45 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
1.50 |
2.17 |
1.84 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.50 |
0.76 |
0.90 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.46 |
0.49 |
0.54 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.03 |
0.04 |
0.05 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.88 |
0.97 |
1.19 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
0.28 |
0.27 |
0.30 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
95.71 |
106.13 |
29.50 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
3.74 |
6.67 |
7.30 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
3.15 |
6.34 |
7.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
6.01 |
12.70 |
15.65 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
1.35 |
1.37 |
1.33 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
1.24 |
1.27 |
1.21 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.52 |
0.50 |
0.45 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
2.78 |
3.83 |
4.40 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
1.35 |
1.37 |
1.33 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 2/- |
|
|
|
|
Market Value |
INR 1284.20/- |
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 |
238.300 |
238.300 |
238.300 |
|
Reserves & Surplus |
21233.200 |
23183.200 |
23859.300 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
21471.500 |
23421.500 |
24097.600 |
|
|
|
|
|
|
long-term borrowings |
7.200 |
5.500 |
0.000 |
|
Short term borrowings |
1042.100 |
907.500 |
662.200 |
|
Total
borrowings |
1049.300 |
913.000 |
662.200 |
|
Debt/Equity
ratio |
0.049 |
0.039 |
0.027 |
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 |
46027.100 |
44589.200 |
38702.900 |
|
|
|
(3.124) |
(13.201) |
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 |
46027.100 |
44589.200 |
38702.900 |
|
Profit |
3359.400 |
2974.900 |
1448.300 |
|
|
7.30% |
6.67% |
3.74% |
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 |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
CHARGES REGISTERED |
||||||||
|
SNO |
SRN |
CHARGE ID |
CHARGE HOLDER NAME |
DATE OF CREATION |
DATE OF MODIFICATION |
DATE OF SATISFACTION |
AMOUNT |
ADDRESS |
|
1 |
C33769167 |
10245831 |
BIOTECHNOLOGY
INDUSTRY RESEARCH ASSISTANCE COUNCIL |
30/09/2010 |
13/03/2014 |
- |
2868580.0 |
MTNL
BUILDING, 1ST FLOOR,9 CGO COMPLEX, LODI ROADNEW DELHIDL110003IN |
|
2 |
A82908773 |
90090872 |
UNION
BANK OF INDIA LIMITED |
05/02/1999 |
26/03/2010 |
- |
27850000000.0 |
INDUSTRIAL
FINANCE BRANCH, 619, SACHAPIR STREETCAMPPUNEMH411001IN |
|
3 |
C28698728 |
90084773 |
UNION
BANK OF INDIA |
27/01/1998 |
03/07/1998 |
18/09/2014 |
1500000.0 |
INDUSTRIAL
FINANCE BRANCHCAMPPUNEMH411001IN |
|
4 |
C25512005 |
90084586 |
CORPORATION
BANK |
25/02/1997 |
01/09/1998 |
12/09/2014 |
26000000.0 |
INDUSTRIAL
FINANCE BRANCHPUNE MUMBAI ROAD WAKDEWADIPUNEMH411003IN |
|
5 |
A25602244 |
80035826 |
UNION
BANK OF INDIA |
24/09/1990 |
- |
25/10/2007 |
1351800.0 |
189
RAVIAR PETHPUNEPUNEMH411002IN |
|
6 |
A17814641 |
90090236 |
UNION
BANK OF INDIA |
14/12/1995 |
- |
12/06/2007 |
123000000.0 |
INDUSTRIAL
FINANCE BRANCHPUNEMH411001IN |
|
7 |
A17813825 |
90083689 |
UNION
BANK OF INDIA |
24/09/1990 |
- |
12/06/2007 |
665900.0 |
189;
RAVIWAR PETHPUNEMH411002IN |
|
8 |
A16274086 |
90084346 |
CANARA
BANK |
10/11/1995 |
- |
06/06/2007 |
49000000.0 |
11;MG
ROADPUNEMH411002IN |
UNSECURED LOANS
|
PARTICULARS |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
Term loans (Other than banks) |
0.000 |
5.400 |
|
Other current liabilities |
0.000 |
(1.700) |
|
|
|
|
|
Total |
0.000 |
3.700 |
CORPORATE
INFORMATION
The company offers solutions to energy, environment and chemical sectors.
The Company’s Portfolio Includes Boilers and Heaters, Absorption Chillers. Heat
pumps, power plants, solar equipment, air pollution control equipment/system,
water and waste recycle plant, ion exchange resins and performance chemicals
and related services.
The company is a public limited company incorporated and domiciled in
India. It is listed on the BSE Limited (BSE) and National stock Exchange Stock
Exchange Limited (NSE) in India. The address of its registered offices is D-13,
MIDC Industrial area, R.D. Aga Road, Chinchwad, Pune-411019, India. The board
of directors have authorized to issue by these separate financial statements on
May 30, 2017. The CIN of the company is L29299PN1980PLC022787.
ANNUAL PERFORMANCE
The company posted a total revenue of INR 3973.000 million for the financial year 2016-17, against last year’s INR 45730.000 million, a decrease of 13.1%. The shortfall in revenue was largely due to lower carried forward order balance at the beginning of the year, challenging market conditions and the absence of big-sized orders predominantly from the domestic market. On a consolidated level, the group revenue at INR 47040.000 million was 12.7% down (INR 53880.000 million).
Thermax’s Energy segment contributed 79% of the Group’s operating revenue (Net) while the Environment segment accounted for 13.9%. The Chemical segment contributed 7.1% of the revenue. During the year, revenue from exports, including deemed exports, was INR 11760.000 million against INR 14460.000 million in the previous year. The drop was owing to lower carry forward of orders at the beginning of the year.
Profit before tax and exceptional items at INR 4070.000 million was 10.2% of the total revenue, compared to INR 4230.000 million, at 9.2% in the previous year.
The exceptional item of expenditure INR 1330.000 million, amongst other items, mainly represents impairment of investment in joint venture, Thermax Babcock & Wilcox Energy Solutions Pvt. Ltd. (TBWESL). In view of the global shift to non-fossil fuels and renewable energy, viability of coal based power plants has been adversely affected.
Therefore, the management has thought it prudent to impair the investment in TBWESL to a more realistic level. Profit after tax and exceptional items stood at INR 1450.000 million compared to INR 2970.000 million in the previous year. Earnings per share (EPS) were at INR 121.500 million (INR 249.700 in FY 2015-16).
In a difficult year, some of the positive indicators for the company’s performance came from business opportunities created by refinery upgradation due to Bharat VI requirements, capacity expansion in the fertilizer sector, the opportunities offered by the crash in solar PV prices, and the revival of capex cycle in certain sectors due to the government’s focus on infrastructure.
Order booking for the year was INR 38310.000 million against INR 37010.000 million last year, registering a marginal increase of 3.5%. The company completed the year with an order backlog of INR 36180.000 million as against INR 37470.000 million in the previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC OUTLOOK AND PROSPECTS
2016-17 marked another difficult year for the world economy, with growth lowering to 2.3% (from 2.7%). The year was characterised by stagnant global trade, subdued investment and heightened policy uncertainty.
In the year gone by, there was deceleration of growth in advanced economies (1.6%, down from 2.1%, the previous year) and in the emerging and developing economies. Economic growth in both the US and Europe was at a lower level, compared to the previous year. China’s growth continued to be slow, close to 7%, far below its earlier annual growth rates. Investments slowed down there due to overcapacity in nearly all sectors, resulting in sluggish industrial production. Weak investments and sluggish productivity affected many emerging markets and advanced economies, resulting in muted growth.
India, buoyed by low oil prices, remained the fastest growing major economy in the world (growth estimated at 7.1%). For the Indian economy, 2016-17 was marginally better than the previous year. The first eight months of the fiscal saw momentum picking up on the growth front. However, as demonetisation lowered aggregate demand, gross value added growth, earlier estimated to touch 7.6%, was revised to 7.1% for 2016-17.
Capex in core sectors continued to be low as many private sector companies have excessive borrowings on their balance sheets and the banking sector is saddled with large NPAs. This has affected both steel and power sectors. Low capacity utilisation in the cement sector and surplus power generation delayed new capex in these sectors. However, capex in consumer oriented industries registered faster growth, with both foreign entities and domestic companies initiating the setting up of new capacities.
The energy sector, the world over including India, is in a state of flux with several factors contributing to the disruption of familiar patterns. Oil and gas prices remained low, eroding the arbitrage for biomass based projects. Solar PV prices have crashed, both in terms of project cost and per kWh costs, providing stimulus for a shift to renewable energy. This development has also dampened the prospects of investments in coal based power plants. Further, the recently announced National Electricity Policy doesn’t envisage any new ordering of coal based power plants during the period, 2017-22. These will have far-reaching significance for the company’s business segments.
The government’s new environmental norms – for emission control related to the reduction of Sulphur Oxides (SOx) and Nitrogen Oxides (NOx), and for combating water pollution through recycle and zero liquid discharge technologies – together with the agenda for clean cities are expected to provide opportunities for the company’s environment segment.
Thanks to Bharat VI requirements, refineries have initiated upgradation of their facilities and this augurs well for the company’s business. The fertiliser sector also is set for capacity expansion. Government focus on infrastructure is likely to trigger capex cycle in certain sectors. The marginal reduction of interest rates is also bound to have a positive impact on the economy.
Among international markets, South East Asia, especially Indonesia, the Philippines and Thailand are performing well on industrial and overall growth fronts. Accelerated growth is expected to continue as commodity prices stabilise. The upcoming manufacturing facility of the company in Indonesia is expected to gain from the improved economic activity of the ASEAN region.
Within the European Union, despite the Brexit vote in June‘16 challenging the region’s integration, industry confidence continues to improve. Investments are happening though at a slower pace. In the Eurozone, as economic conditions improve, the company’s products such as vapour absorption chillers, ion exchange resins
and boilers using both biomass and oil-gas can expect to gain new customers.
In the US, the new administration has expressed its intention to increase infrastructure spend, with a positive
impact on growth. Industrial production in the US grew by 1.5% in the first quarter, signalling economic revival in the short to medium-term.
As growth slowly picks up after the recent years of economic stagnation, there are also areas of concern. Emerging protectionist tendencies in several advanced nations could threaten the economic prospects of emerging markets and developing economies, which now account for more than 75 percent of global growth in output and consumption. As it spreads its wings in international markets, the company too could face the backlash as many countries demand local value addition and employment generation.
Across major emerging and developing economies, manufacturing industry is currently seeing a significant shift to adopt industry 4.0 standards. Global collaborations initiated by the government with industry participation have paved the way for exchange of best practices between nations. As economies get digitised, organisations including the company are making IoT (Internet of Things) enabled smart equipment and smart machines. Such moves aimed at aligning products and manufacturing to be industry 4.0 compliant are expected to prepare companies for the next level of growth.
Overall, based on the stabilising factors of the global economy, and the hopeful signs of recovery in the Indian market, the outlook for fiscal 2017-18 is one of cautious optimism.
THERMAX OPERATIONAL PERFORMANCE
In FY 2016-17, Thermax Group posted revenues of INR 4,7040.000 million, down 12.7% from the previous year’s INR 5,3880.000 million. At the standalone level, the revenue was at INR 39730.000 million, declining by 13.1% from INR 45730.000 million in FY 2015-16. The shortfall was due to the lower carry forward of orders from the previous year and the challenging situation prevailing in the core sectors of the Indian economy.
Even as international business, compared to domestic performance, did well, it was lower by 15% at INR 15730.000 million (INR 18590.000 million). On a standalone basis, exports declined by 19% to INR 11760.000 million (INR 14460.000 million). This was due to the lower orders carried forward from the previous year.
Consolidated order booking for FY 2016-17 went up marginally to INR 4394 million (INR 4,3520.000 million) for the Thermax Group, with standalone order booking at INR 38310.000 million, an increase of 3.5% over the previous year (INR 37010.000 million). Order booking from international markets at INR 21820.000 million accounted for over 49% of the consolidated figure.
FINANCIAL PERFORMANCE
In FY 2016-17, the company registered a total revenue of INR 39730.000 million, lower by 13.1% as compared to previous year’s INR 45730.000 million. The shortfall was due to lower opening order carry forward. The Group revenue of INR 47040.000 million was down by 12.7% (INR 53880.000 million). In spite of lower revenue, Thermax was able to maintain profit before tax and exceptional items at INR 4070.000 million which is close to last year’s INR 4230.000 million. This was possible mainly on account of lower cost of material consumption at 53.2% as compared to last year’s 57.6%. The lower material consumption was due to change in product mix.
After
accounting for an exceptional item of expenses of INR 1330.000 million and
income tax expense of INR 1300.000 million, the profit after tax stood
at INR 1450.000 million as compared to INR
2970.000 million last year. The exceptional item of expenses relate to the
impairment of the company’s investments in joint venture and subsidiaries as
follows:
1. Thermax Babcock & Wilcox Energy Solutions Pvt. Ltd. – INR 1120.000 million
2. Thermax (Zhejiang) Cooling & Heating Engineering Co. Ltd. – INR 50.000 million
3. First Energy Pvt. Ltd. – INR 160.000 million
The impairment, indicated above, has been done in view of the present market conditions and also based on the principle of prudence.
BUSINESS SEGMENTS OF THE COMPANY
ENERGY SEGMENT
The energy segment contributed 79% of the group’s operating revenues in FY 2016-17. The segment comprises the following businesses: 1) Heating 2) Cooling 3) Boilers for power generation 4) Power EPC 5) Solar 6) Service arms for the businesses including Power O&M services. The heating segment supplies boilers for a very wide range of applications. The Cooling business provides industrial and commercial cooling making use of vapour absorption chillers. The Power business offers turnkey power plants and the solar business deals in photovoltaic
and solar thermal solutions. This segment’s performance was muted, lower than the previous year.
ENVIRONMENT SEGMENT
The environment segment, accounting for 13.9% of the group’s operating revenues, consists of air pollution control and water and waste solutions. The air pollution control business caters to a wide range of industries – cement, steel and ferrous metals, petrochemicals, fertilisers, etc. The business offers products and solutions for both particulate and gaseous emissions. The water and waste solutions business supports industry and commercial establishments to treat water for their process requirements, and clean sewage and effluent. This segment’s performance remained flat during the year.
CHEMICAL SEGMENT
As the company realigned to meet the requirements of the new accounting standards, we decided to present chemical business as a seperate segment. The Chemical segment accounts for 7.1% of the group’s operating revenues. In FY 2016-17, this segment had revenues of INR 3250.000 million (INR 3240.000 million). It comprises the following business segments – boiler and water chemicals, resins, performance chemicals, construction chemicals, paper chemicals and oil field chemicals.
Besides the domestic market, this segment has
customers in several international markets such as the Middle East, Japan,
Europe and the USA.
This segment is supported by two manufacturing facilities – Paudh (Maharashtra) and Jhagadia (Gujarat) – and an upcoming one at Dahej, Gujarat.
The three segments – Energy, Environment and Chemical – span a wide range of products and services,
which can be grouped into three categories:
1) Products, both standard and custom-designed. Larger units are generally custom-designed and built.
2) Projects and EPC contracts, especially for the larger non-standard products.
3) Life-cycle and O&M services to operate plants and other services that the company provides to customers.
ENERGY SEGMENT
ANALYSIS
The Energy segment posted a lower operating revenue (Net) at the group level for FY 2016-17 at INR 3624 million (INR 43070.000 million), lower by 15.9%. This is on account of subdued performance of core sectors in the domestic market and lower orders booked in the previous year from both domestic and international markets. Order booking for current year for the Energy segmant stood at INR 34260.000 million (INR 35100.000 million).
Heating
Business
The standard products of the Heating business – small packaged boilers, heaters and other equipment catering to varied industries – showed an upward trend in revenues and order booking. The improved performance was evident in both the domestic market and in exports. Among the overseas markets, South East Asia brought in significant business. Consumption-led sectors such as food and food processing, rubber, pharma, distilleries and breweries, paint, etc. were the major contributors.
Product revamp and technology upgrades of several products contributed to the improved business. The fall in oil prices and the resultant disadvantage for biomass fuels have affected the business prospects of TOESL, the domestic subsidiary that contributes to the heating business by its exclusive focus on green energy. However, TOESL maintained its performance during the year with a new order from a snacks-and-sweets manufacturer.
Though Brexit cast its shadows, Eurozone showed signs of economic revival. Danstoker, the European subsidiary of the company supporting this business segment performed better after a troubled previous year. Business for the larger boiler subset (B&H) was challenging due to the lack of orders carried forward from the previous year. However, during FY 2016-17, your company successfully commissioned nine CFBC boilers in a refinery in Western India, one of the largest projects it had undertaken.
Among its products, heat recovery steam generators (HRSGs) picked up some good orders including installations in the Middle East and in an Indian fertiliser plant. Business in the domestic market also saw orders for spent wash boilers in distilleries and, under Bharat VI requirements of refineries, for waste heat recovery boilers and heaters. In South East Asia, cogen boilers fetched revenues. With ongoing refinery expansions under Bharat VI, opportunities for waste heat recovery in cement, and planned fertiliser expansion, the company expects improved orders for its large boiler business in the next fiscal.
For Heating business, packaged boilers as well as for larger boilers, international markets – South East Asia, Africa and to a limited extent, Latin America – are expected to provide new orders in FY 2017-18. The Bharat VI equirements of refineries and fertiliser expansion in India will also generate additional business. The company’s new manufacturing facility in Indonesia is poised to commence commercial production. The plant will give a fillip to the Thermax’s growth plans in South East Asia.
CHEMICAL SEGMENT ANALYSIS
In FY 2016-17, the Chemical business segment posted an operating revenue of INR 3250.000 million (INR 324 crore). Order booking for the segment in FY 2016-17 stood at INR 3050.000 million (INR 2880.000 million). Once the upcoming manufacturing facility for specialty chemicals at Dahej, Gujarat begins commercial production in Q2 of FY 2017-18, it will help augment capacities of the Chemical business.
Thermax Inc., the US subsidiary performed well. From Europe too, new business could be generated for resins. Association with global companies specialising in hydrocarbon operations is expected to provide more opportunities for the oil field chemicals business. Construction chemicals introduced new products and they have already gained several Indian industries as customers.
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30,
2017
(INR In Million)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
INCOME FROM OPERATIONS |
|
|
|
|
Revenue from operations
|
8638.700 |
7341.400 |
15980.100 |
|
Other Income |
218.700 |
222.300 |
441.000 |
|
Total
Income from Operations |
8857.400 |
7563.700 |
16421.100 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of materials consumed |
4786.500 |
3720.400 |
8506.900 |
|
Purchase of Stock in Trade |
165.400 |
132.500 |
297.900 |
|
Changes in inventories of finished goods and
work-in-progress |
(89.800) |
(162.300) |
(252.100) |
|
Excise duty on sale of goods |
0.000 |
207.600 |
207.600 |
|
Employee benefits expense |
1138.500 |
1115.900 |
2254.400 |
|
Finance cost |
38.300 |
4.600 |
42.900 |
|
Depreciation and Amortization expenses |
149.700 |
149.500 |
299.200 |
|
Other Expenditure |
1777.200 |
1898.100 |
3675.3600 |
|
Total
Expenses |
7965.800 |
7066.300 |
15032.100 |
|
|
|
|
|
|
Profit
Exceptional income and tax |
891.600 |
497.400 |
1389.000 |
|
|
|
|
|
|
Exceptional items |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Profit
before Tax |
891.600 |
497.400 |
1389.000 |
|
|
|
|
|
|
Tax Expense |
323.200 |
173.000 |
496.200 |
|
|
|
|
|
|
Net
profit for the period |
568.400 |
324.400 |
892.800 |
|
Other comprehensive income/ (Loss) after tax |
|
|
|
|
Items that will be reclassified to profit or loss in
subsequent period |
(72.800) |
36.000 |
(36.800) |
|
Items that will not be reclassified to profit or loss
subsequent periods |
(7.600) |
(14.100) |
(21.700) |
|
Total
comprehensive income for the period |
(80.400) |
21.900 |
834.300 |
|
|
|
|
|
|
Paid-up Equity Share Capital (Face value INR 2/- per
share) |
238.300 |
238.300 |
238.300 |
|
|
|
|
|
|
Basic
and Diluted EPS (in INR) |
4.77 |
2.72 |
7.49 |
STATEMENT OF
UNAUDITED RESULTS FOR THE QUARTER AND HALF YEAR ENDED
SEPTEMBER 30, 2017
|
SOURCES OF FUNDS |
30.09.2017 |
|
|
(Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
Equity |
|
|
(a) Equity Share Capital |
238.300 |
|
(b) Other Equity |
23833.200 |
|
Total
Shareholder Funds |
24071.500 |
|
|
|
|
Liabilities
|
|
|
Non-Current
Liabilities |
|
|
Financial
Liabilities |
|
|
Borrowing |
0.000 |
|
Trade and Other Payables |
285.200 |
|
Other Financial Liabilities |
14.700 |
|
Provisions |
224.600 |
|
Differed Tax Labilities |
0.000 |
|
Other non-Current Liabilities |
3801.200 |
|
Total Non-current Liabilities |
4325.700 |
|
|
|
|
Current Liabilities |
|
|
Financial
Liabilities |
|
|
Borrowing |
328.900 |
|
Trade and Other Payables |
7324.100 |
|
Other Current Financial Liabilities |
1210.300 |
|
Provisions |
1204.600 |
|
Other current
liabilities |
9460.300 |
|
Income tax
liabilities |
161.000 |
|
Sub Total
Current Liabilities |
19689.200 |
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
48086.400 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
Property, plant and Equipments |
5033.500 |
|
Capital work in progress |
1578.500 |
|
Other Intangible assets |
331.900 |
|
Intangible Assets under development |
4.900 |
|
investment
in Subsidiary and Joint Ventures |
5792.700 |
|
(D)Financial Assets |
|
|
Investments |
902.800 |
|
Trade
Receivables |
833.900 |
|
Finance Lease Receivables |
124.700 |
|
Other Financial
Assets |
139.900 |
|
Differed Tax Assets |
1056.800 |
|
Income tax Assets |
320.500 |
|
Other Non-Current Assets |
1921.500 |
|
Total Non-Current
Assets |
18041.600 |
|
|
|
|
(2) Current assets |
|
|
Inventories |
2659.000 |
|
Financial Assets |
|
|
Investment
|
11124.100 |
|
Trade
receivables |
9463.000 |
|
Cash and
cash equivalents |
59596.000 |
|
Other Bank
Balance |
8.300 |
|
Loans |
144.900 |
|
Finance Lease Receivables |
|
|
Other Financial Assets |
2791.000 |
|
Income Tax Assets |
377.300 |
|
Other Current Assets |
2881.200 |
|
Sub Total
Current Assets |
30044.800 |
|
|
|
|
TOTAL ASSETS |
48086.400 |
SEGMENT WISE REVENUE
RESULTS AND CAPITAL EMPLOYED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2017
[INR in Million]
|
Sr. No |
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Segment Revenue |
|
|
|
|
|
Energy |
7857.400 |
7239.000 |
15096.400 |
|
|
Environment |
1519.600 |
960.600 |
2480.200 |
|
|
Chemicals |
1083.800 |
818.600 |
1902..400 |
|
|
Total |
10460.800 |
9018.200 |
19479.000 |
|
|
Less :Inter Segment Revenue |
129.800 |
92.500 |
222.300 |
|
|
Net Sales / Income
from Operations |
10331.000 |
8925.700 |
19256.700 |
|
|
|
|
|
|
|
2. |
Segment Results |
|
|
|
|
|
Profit before tax and
interest from each segment |
|
|
|
|
|
Energy |
469.500 |
524.900 |
994.400 |
|
|
Environment |
30.100 |
(5.600) |
24.500 |
|
|
Chemicals |
297.400 |
88.700 |
386.100 |
|
|
Total |
797.000 |
608.000 |
1405.000 |
|
|
Less : Interest |
50.900 |
15.900 |
66.800 |
|
|
Other Unallocable expenditure net of Unallocable (Income) |
(201.400) |
(165.000) |
(366.400) |
|
|
Total Profit before
Tax |
947.500 |
757.100 |
1704.600 |
|
|
|
|
|
|
|
|
Segment Assets |
|
|
|
|
|
Energy |
25144.900 |
25500.700 |
25144.900 |
|
|
Environment |
4330.200 |
4384.300 |
4330.200 |
|
|
Chemicals |
3797.800 |
3582.600 |
3797.800 |
|
|
Unallocated |
20371.400 |
18056.900 |
20371.400 |
|
2 |
Total Assets |
53644.300 |
51524.500 |
53644.300 |
|
|
|
|
|
|
|
|
Segment Liabilities |
|
|
|
|
|
Energy |
21071.200 |
18809.000 |
21071.200 |
|
|
Environment |
3231.100 |
3286.400 |
3231.100 |
|
|
Chemicals |
691.200 |
869.500 |
691.200 |
|
|
Unallocated |
296.600 |
2636.800 |
2966.600 |
|
|
Total Liabilities |
27960.100 |
25601.700 |
27960.100 |
Notes:
1. As at March 31, 2017, Management had reviewed and amended the disclosure for operating segments as required under Ind-AS 108. Accordingly, the operating segment disclosure for quarter and half year ended September 30,2016 has been revised in the current quarter.
2. Post Applicability of Goods and Service Tax (GST) with effect from July 1,
2017, the revenue from operations are disclosed net of GST. Accordingly, the
revenue from operations for the quarter ended June 30,2017, quarter and half
year ended September 30,2016 and year ended March 31, 2017 are inclusive of
excise duty, and are not comparable with revenue for the quarter an half year
ended September 30, 2017 to that extent.
3. During the earlier years, the Commissioner of Central Excise, upon
adjudication of the show cause-cum-demand notices issued by the Department from
time to time for the period from April 1, 2004 till September 30,2015, has
raised various demands of Rs. 1,330.64 crores (including penalty but excluding
interest not presently quantified).
These demands are of excise duty payable on inclusion of the cost of bought out
items in the assessable value of certain products manufactured by the Company,
though such duty paid bought out items are directly dispatched by the
manufacturers thereof to the ultimate customer, without being received in the
company's factory. The Company has filed an appeal against the said orders
received before CESTAT, Mumbai. Based on an independent legal advice, the
Company is confident of the issue being ultimately decided in its favour and
accordingly no provision has been considered necessary by the company in this
regard as also for the period thereafter till September 30, 2017.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
Taxes |
|
|
|
Excises, customs duty and service tax |
61.100 |
65.800 |
|
Sales tax |
637.000 |
243.900 |
|
Income tax demands disputed in appellate proceedings |
284.700 |
415.700 |
|
References/appeals preferred by the income tax department in respect
of which, should the ultimate decision be unfavourable to the company |
437.100 |
443.200 |
|
Others |
2.300 |
2.300 |
|
Guarantees on behalf
of subsidiaries and joint ventures |
|
|
|
Counter corporate goatees issued to banks |
63.200 |
198.700 |
|
Indemnity bonds, letter of support/comfort and corporate guarantee |
1879.300 |
3083.600 |
|
Others |
|
|
|
Liabilities for export obligations
|
224.200 |
273.700 |
|
Clams against the company not acknowledged as debt |
198.500 |
196.600 |
FIXED ASSETS:
·
Land – Freehold
·
Land – Leasehold
·
Building
·
Plant and Machinery
·
Electrical Installation
·
Office Equipment and Computer
·
Furniture and Fixtures
·
R and D Equipment’s
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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 63.77 |
|
UK Pound |
1 |
INR 89.20 |
|
Euro |
1 |
INR 78.22 |
INFORMATION DETAILS
|
Information
Gathered by : |
SAV |
|
|
|
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
RUP |
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 |
YES |
|
--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.