Attachment 1
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Report
Update On |
25th March, 2002 |
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Report on |
SKF BEARINGS INDIA LIMITED |
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Formerly Known As |
associated bearings company Limited
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Registered Office |
Mahatma Gandhi Memorial Building, Netaji Subhash Road, Mumbai - 400
001, Maharashtra, India. |
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Tel. No. |
91-22-2337777 / 2013567 / 2832244 |
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Fax No. |
91-22-2042738 |
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E-Mail |
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Telex |
-- |
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Website |
Attachment 2
S U M M A R Y
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Incorporated |
1961 |
Status |
Satisfactory |
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Registration No. |
11980 |
Chief Executive |
Mr. Torsten Nordgren |
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Capital (Rs.) |
251.472 millions |
Payments |
Usually Correct |
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Sales (Rs.) |
4007.374 millions |
Litigation |
-- |
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Net Worth (Rs.) |
1412.680
millions |
Banking Reputation |
Satisfactory |
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No. of Employees |
2161 |
Auditors |
Arthur Andersen and Associates |
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Credit Rating |
Ba (See attachment 3) |
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INDUSTRY
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plant locations
K Chinchwad, Pune, Maharashtra
K
Bommasandra, Bangalore,
Karnataka
HISTORY
The company was incorporated on 12th April, 1961 at Mumbai in Maharashtra under the name and style of Associated Bearings Company Limited having the company registration number 11980.
The name of the company was changed to present with effect from 1st October, 1987.
During the year 2000, the company sold its Head Office in Mumbai and the same was relocated.
SKF began operations in India in the 30's as a sales company. It was incorporated jointly in its present form by the international giant SKF Sweden, SKF UK and Investment Corporation of India (of the Tata group). SKF, Sweden holds 51% of the equity. Manufacturing activities began with the commissioning of the Pune Plant, which currently has a capacity to manufacture 22.25mn bearings.
Its second plant came up in 1990, at Bommasandra at Bangalore, with an installed capacity of 40mn bearings. This state of the art plant is one of the most modern, with a high degree of automation. In FY94, Shefko India Bearing Company Limited (Shefko), a group company engaged in trading of bearings was merged with SKF. The merger now helps SKF to meet customers' requirements of both domestic and imported bearings.
LEGAL FORM
It is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Subject is a 51% subsidiary of SKF AB of Sweden.
DIRECTORS
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Dr. Fredie A. Mehta |
Chairman |
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Mr. Torsten Nordgren |
Managing Director |
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Mr. Daurius C. Shroff |
Director |
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Mr. Mansingh L. Bhakta |
Director |
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Mr. Jamshyd N. Godrej |
Director |
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Mr. Narendra J. Jhaveri |
Director |
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Mr. Gunnar Gremlin |
Director |
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Mr. Tom Johnstone |
Director |
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Mr. Giuseppe Donato |
Director |
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Mr. Bjarne Johansen |
Director |
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Mr. Gunilla Nilsson |
Director |
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Mr. Keki N. Wadia |
Senior Deputy Managing Director (Alternate to Mr. B.
Johansen) |
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Mr. Jimmy N. Panthaky |
Secretary |
PARTICULARS OF CHIEF EXECUTIVE
|
Name |
Mr. Torsten Nordgren |
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Designation |
Managing Director |
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Age |
46 years |
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Qualification |
M. Sc. Engineering |
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Experience |
22 years |
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Date of Joining |
01/06/1997 |
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Previous Employment |
SKF Bearings Sdn Bhd, Malaysia (Managing Director) |
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Name |
Mr. Jimmy N. Panthaky |
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Designation |
Company Secretary |
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Age |
59 years |
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Qualification |
B. Com (Hons) LLB FCS GRAD - CWA |
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Experience |
38 years |
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Date of Joining |
01/02/1996 |
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Previous Employment |
F5ujitsu ICIM Limited (Vice President - Legal and
Company Secretary) |
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Name |
Mr. Keki N. Wadia |
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Designation |
Senior Deputy Managing Director |
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Age |
58 years |
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Qualification |
B. Com., ACA |
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Experience |
32 years |
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Date of Joining |
01/06/1972 |
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Previous Employment |
A. F. Ferguson and Company (Senior Audit Assistant) |
major shareholders
(As on October 29, 2001)
Names |
No. of Shares |
% of Shares Held |
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AB SKF and its subsidiaries |
1277600 |
50.80 |
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Unit Trust of India |
1113380 |
4.43 |
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Oriental Insurance Corporation |
550380 |
2.19 |
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Tata Investment Corporation Limited |
577300 |
2.30 |
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New India Assurance Company Limited |
454230 |
1.81 |
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Life Insurance Corporation of India |
440380 |
1.75 |
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General Insurance Corporation Limited |
376300 |
1.50 |
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Ewart Investments Limited |
231210 |
0.92 |
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National Insurance Company Limited |
222520 |
0.88 |
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GIC Mutual Fund |
221300 |
0.88 |
BUSINESS
The company is engaged in manufacturing of ball bearings, roller bearings and textile machinery components.
Subject is the largest domestic manufacturer of bearings with around 30% market share.
It manufactures ball bearings and taper roller bearings and textile machinery. It also trades in large bearings imported from its parent company.
The company also manufactures textile components and accessories and spares for spinning machines at its Pune Plant.
The company's production status as on 31st December, 2000 was as under :
Product Name |
Installed Capacity Nos. in 000's |
ProductionNos. in 000's |
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Ball & Roller Bearing |
66000 |
56576 |
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Textile Machinery Components |
4240 |
1961 |
Generic names of the principal products of the company are:
Item Code No. (ITC CODE) |
Product Description |
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84821000 |
Ball Bearings and Hub Bearing Units |
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84822000 |
Tapered Roller Bearings |
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84482000 |
Textile Machinery Components |
The company’s sales during the year under report were Rs. 3665.3 millions as compared to Rs. 2739.5 millions for the 9 months period of the previous year. During the year miscellaneous income went up to Rs. 342.1 millions as compared to Rs. 115.6 millions for 9 months period of the previous year. This represented the sale of the company's offices at Nariman Point and Worli, thus improving the company's income and cash flow substantially.
The company's sales of bearings in the year 2000 to car and MUV manufacturers fell by 11.4% as compared to the year 1999. In case of commercial vehicles, both sales and production dropped significantly in the year 2000 compared to 1999. With a view to immediately adjusting to the lower demand and to reducing the level of finished goods inventory, the company decided to stop production in some of its production channels at the Pune factory, in December, 2000. This resulted in a sharp drop, in the operating profits of the company, in the last quarter of the year under report.
During the year under report, the company had launched a number of new and innovative products and services in various business segments like integrated HBU-1 hub bearing unit, which is now being produced at Pune plant.
Sales of textile machinery components increased by 64% compared to the same period in 1999. The company had entered into Logistic Agreements with a number of its customers as part of an extended service offering to customers. It has taken the lead in establishing e-commerce solutions with its customers.
outlook for the year 2001
The Indian economy has experienced a certain slow down during 2000-01 and the forecasted GDP growth for 2001-02 is now on a lower level than earlier forecasted. Likewise the industrial growth has at present slightly slowed down in a number of segments. Overall, however, the outlook for 2001-02 still indicates a growth over 2000-01 which implies that the demand for the company's product and services are likely to grow in most segments during 2001.
The company has been accredited with ISO 9002 and ISO 14001 Certifications.
The company exports ball bearing and roller bearings to France, Italy, Japan, South Africa, South East Asia and U.S.A.
Some of its major customers are as under :
K Maruti India Limited
K TELCO
K Ford India Limited
K Fiat
SKF's parent company has manufacturing bases in India and Malaysia and Joint Ventures in Indonesia and Korea.
The company imports ball bearings, roller bearings and other special bearings from France, Germany, Italy, Singapore, Sweden, UK and U.S.A.
The company has obtained the QS 9000 certification, which would help it to do business with global majors like GM, Ford, Chrysler-Benz etc.
The company's fixed assets of important value include land - freehold, buildings, plant, machinery and tools, furniture, fixtures and office equipments and vehicles.
The company employs 2161 persons in its' set up.
parent company
K SKF AB, Sweden
- The company is the world leader in bearings and has an annual turnover of around SEK37bn. The company was formed in 1907 when it invented self-aligning ball bearing. Almost all the bearings available in the market today are designed and developed by the company. Its business at present is in over 130 countries and 90% of its turnover comes from overseas ventures.
associates
K CR Seals India Limited
MEMBERSHIPS
K Confederation of Indian Industry
BANKERS
K Bank of America NT and SA, Mumbai
K Bank of India, Mumbai
K Citibank NA, Mumbai
K Standard Chartered Grindlays Bank, Mumbai
K Hongkong and Shanghai Banking Corporation Limited, Mumbai
K Punjab National Bank, Mumbai
AUDITORS
Arthur Andersen and Associates
Chartered Accountants
FINANCIAL INFORMATION
The company's last available financial information for the period ended 31st December, 2000 is enclosed herewith.
The company’s Summarised Half Yearly Results from 01.01.2001 to 30.06.2001 were as under :
(figures are in Rupees Millions)
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Particulars |
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30.06.2001 |
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Half Year |
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Sales Turnover |
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1706.0 |
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Other Income |
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124.0 |
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Total Income |
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1830.0 |
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Total Expenditure |
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1447.0 |
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Operating Profit |
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383.0 |
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Interest |
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92.0 |
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Gross Profit |
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291.0 |
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Depreciation |
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173.0 |
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Tax |
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47.0 |
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Reported PAT |
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113.0 |
FOREIGN EXCHANGE RATES
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Currency |
Unit |
Indian
Rupees |
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US
Dollar |
1 |
Rs.48.77 |
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UK
Pound |
1 |
Rs.69.57 |
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Euro |
1 |
Rs.42.79 |
CAPITAL STRUCTURE
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Authorised Capital : |
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26,00,000 |
Equity Shares of Rs.100/- each |
Rs.260.000 millions |
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Issued, Subscribed &
Paid-up Capital : |
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25,14,722 |
Equity Shares of Rs.100/- each |
Rs.251.472 millions |
COMMENTS
Subject is a well established company having fine track records. Directors are reported as respectable, experienced and resourceful industrialists and professionals. Their trade relations are reported as fair. Financial position is satisfactory. Payments are usually correct and as per commitments.
Your proposed business dealings of US $ 198000 can be considered against D/P terms.
ABRIDGED BALANCE SHEET AS ON 31ST DECEMBER,
2000
[figures are in Rupees Millions]
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SOURCES OF
FUNDS |
31.12.2000 12 months |
31.12.1999 9 months |
31.03.1999 12 months |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
251.472 |
251.472 |
251.500 |
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2] Reserves & Surplus |
1161.208 |
1138.860 |
1072.100 |
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LOAN FUNDS |
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1] Secured Loans |
1373.847 |
1934.220 |
2275.000 |
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2] Unsecured Loans |
833.152 |
519.069 |
464.500 |
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GRAND TOTAL |
3619.679 |
3843.621 |
4063.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1740.214 |
1904.063 |
1906.000 |
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Capital work-in-progress |
238.595 |
353.546 |
403.100 |
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INVESTMENTS |
30.047 |
30.047 |
30.100 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1161.955 |
991.573 |
113.700 |
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Sundry Debtors |
988.294 |
989.106 |
818.700 |
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Cash & Bank Balances |
169.983 |
126.395 |
114.400 |
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Loans & Advances |
318.588 |
278.756 |
356.500 |
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Total Current
Assets |
2638.820 |
2385.830 |
1403.300 |
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Less : |
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Current Liabilities |
981.751 |
798.462 |
679.400 |
Provisions |
46.246 |
31.403 |
0.000 |
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Net Current
Assets |
1610.823 |
1555.965 |
1723.900 |
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MISCELLANEOUS EXPENSES |
-- |
-- |
0.000 |
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GRAND TOTAL |
3619.679 |
3843.621 |
4063.100 |
IMPORTANT FINANCIAL INFORMATION FOR Three PERIODS
[figures are in Rupees Millions]
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PARTICULARS |
31.12.2000 12 months |
31.12.1999 9 months |
31.03.1999 12 months |
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Sales Turnover |
4007.374 |
2855.143 |
4021.700 |
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[including other income] |
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Profit/(Loss) Before Tax |
82.393 |
104.389 |
(445.300) |
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Provision for Taxation |
13.799 |
6.187 |
(2.600) |
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Profit/(Loss) After Tax |
68.594 |
98.202 |
(442.700) |
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Dividend |
37.721 |
28.291 |
0.000 |
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Earnings in Foreign Currency : |
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Export Earnings |
225.438 |
177.535 |
305.900 |
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Other Earnings |
56.091 |
45.622 |
58.300 |
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Total Earnings |
281.529 |
223.157 |
364.200 |
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Imports : |
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Raw Materials |
30.199 |
27.684 |
35.700 |
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Traded Goods |
21.601 |
63.973 |
33.400 |
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Components & Spares |
221.473 |
110.223 |
216.300 |
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Capital Goods |
65.148 |
57.130 |
326.700 |
Total Imports |
338.421 |
259.010 |
612.100 |
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Expenditures :
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1147.500 |
Excise Duty
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540.600 |
Power and Fuel Cost
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164.400 |
Other Manufacturing Expenses
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450.300 |
Employee Cost
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1181.400 |
Selling & Administration
Expenses
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199.000 |
Miscellaneous Expenses
|
3005.223 |
2254.145 |
168.700 |
Interest and Financial
Charges
|
279.702 |
195.083 |
234.100 |
Depreciation
|
405.056 |
301.526 |
381.000 |
Total Expenditures |
3689.981 |
2750.754 |
4467.000 |
important key ratios for three periods
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PARTICULARS |
31.12.2000 12 months |
31.12.1999 (9 months) |
31.03.1999 (12 months) |
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Debt-Equity
Ratio |
1.66 |
1.91 |
1.64 |
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Long
Term Debt -Equity Ratio |
1.18 |
1.45 |
1.27 |
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Current
Ratio |
1.57 |
1.73 |
1.98 |
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TURNOVER
RATIOS |
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Fixed
Assets |
0.86 |
0.89 |
0.87 |
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Inventory |
4.14 |
4.18 |
3.54 |
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Debtors |
4.51 |
4.87 |
4.53 |
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Interest
Cover Ratio |
0.48 |
1.32 |
1.48 |
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Operating
Profit Margin (%) |
12.18 |
18.12 |
18.11 |
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Profit
Before Interest and Tax Margin (%) |
3.09 |
8.99 |
8.62 |
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Cash
Profit Margin (%) |
5.68 |
11.20 |
12.35 |
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Adjusted
Net Profit Margin (%) |
(3.41) |
2.07 |
2.85 |
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Return
On Capital Employed (%) |
3.70 |
10.0 |
8.50 |
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Return
on Net Worth (%) |
(10.85) |
6.7 |
7.42 |
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Attachment 3
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SCORE
SHEET |
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SCORE |
CREDIT
RATING |
STATUS |
PROPOSED
CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution
needed for credit transaction. It has above average (strong) capability for
payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded
healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to
meet normal commitments. Maybe drawn to slightly difficult position as
unfavourable conditions arise. Minimal assurance for timely payment on
interest and principal sums |
Moderate |
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26-40 |
B |
Unfavourable & favourable factors carry similar
weight in credit consideration. Capability to overcome financial difficulties
seems comparatively limited or considered not known. Capability to pay both
interest and principal sums is doubtful |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest
and principal sums in default or expected to be in default upon maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit not recommended |
Attachment 4
ACKNOWLEDGEMENT
Dear Sir/Madam,
As part of our control
system, please fax/email us this note
upon receipt of this report. If we do not receive the acknowledgement within 24
hours, we will assume that our report meets your requirement. If you have any
suggestion to help us improve our reports and services, please do not hesitate
to let us know.
Thank you.
________________________________________________________________________
To : MIRA INFORM PRIVATE
LIMITED
From :
To :
Feedback – Please tick
the appropriate box.
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GOOD |
FAIR |
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Overall Impression |
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Further Comments/Suggestion :
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Company’s Stamp &
Signature