MIRA INFORM REPORT
|
Report
Date : |
26th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
ENDURANCE
TRANSMISSION SYSTEMS PRIVATE LIMITED |
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Formerly
Known As : |
ENDURANCE SUSPENSION SYSTEM (INDIA) PRIVATE LIMITED |
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Registered
Office : |
K-228,
MIDC Industrial Area, Walunj, Aurangabad-431136 |
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Country: |
India |
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Financials
as on: |
31.03.2004 |
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Date
of Incorporation : |
27.12.1999 |
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Com.
Reg. No.: |
11-123296 |
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CIN
No.: |
U34102MH1992PTC123296 |
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TAN
No.; |
NSKE00384G |
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PAN
No.: |
AAACE7066P |
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Legal
Form : |
Private Limited Liability Company |
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Line
of Business : |
Manufacturing
of Parts and Accessories for Motor Vehicles and their Engines. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
1000000 |
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Status
: |
Satisfactory |
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well-established company of Endurance Group. Subject is engaged in
manufacturing and selling of motor vehicle parts viz. Clutch Assembly,
Friction Plats, and Shock Absorbers etc. There has been a quantum leap in the
company’s turnover and profits during the financial year 2002-2003 as
compared to the previous period. Trade relations are fair. Payments are
correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered
Office |
K-228,
MIDC Industrial Area, Walunj, Aurangabad-431136 |
|
Tel.
No.: |
91-240-2556686/87 |
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Fax
No.: |
91-240-2556685 |
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E-Mail
: |
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Website
: |
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Factory
|
K-228 / K-227 / K226/2, MIDC Industrial Area, Walunj,
Aurangabad-431136 |
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|
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Wind
Farms : |
J-57, J-58m J-62, Village : Badabagh, Tehsil and District:
Jaisanler, Rajasthan |
DIRECTORS
|
Name : |
Mr.
Naresh Chandra |
|
Designation
: |
Chairman |
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|
|
|
Name : |
Mr.
Anurag Jain |
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Designation
: |
Director |
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Name : |
Mr.
Tarang Jain |
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Designation
: |
Director |
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|
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|
Name : |
Mr. S. R.
Halbe |
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Designation
: |
Director |
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Other Personnel |
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|
Name : |
Mr.
Sharad Gawade and Associates |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
|
Name of Shareholders |
No of Shares |
|
|
12,74,499 |
|
Endurance
Systems (India) Private Limited |
1 |
|
Mr.
Anurag Jain |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing
of Parts and Accessories for Motor Vehicles and their Engines. |
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|
|
|
Products
: |
·
Shock
Absorbers ·
Clutch
Assembly ·
Job
Work Charges |
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|
|
PRODUCTION STATUS
|
Particulars |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Shock
Absorbers |
1600000 |
1000000 |
828785 |
|
Clutch
Assembly |
2400000 |
-- |
4596 |
|
Disc
Brake Assembly |
-- |
120000 |
528 |
|
Aluminium
Die Casting |
-- |
1810 |
714** |
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|
|
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|
**
Captivity consumed 3.35 MT (Previous year 520.33 MT) and Job work 708.72 MT
(Previous year 102.33 MT) |
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GENERAL INFORMATION
|
Customers
: |
Ø
Bajaj Ø
Tata Ø
Yamaha
Ø
Fird Ø
Hyundai
Ø
Fiat
Ø
LML Ø
Mahindra
Ø
Mico
Ø The Royal Enfield |
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|
|
|
No. of
Employees : |
50 |
|
|
|
|
Bankers
: |
v
Indian
Overseas Bank, Contonment Branch, Pune v Bank of India, Pune Corporation
Banking Branch |
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|
|
|
Facilities : |
SECURED LOAN Ø From bank :Rs. 360.658 millions Ø From bank (against fixed Deposit) :Rs 60.315 millions Ø Cash Credit : Rs. 76.038 millions UNSECURED LOAN From bank : Rs. 56.463 millions |
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Banking Relations : |
Satisfactory |
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Auditors
: |
N. C.
Panpalia & Company Chartered Accountants |
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|
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Subsidiaries
: |
High Technology Transmission Systems (India Private
Limited) |
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|
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Parent
Company: |
Endurance Systems (India) Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
30,00,000 |
Equity Shares |
Rs.10/- each |
Rs.
30.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
12,74,500 |
Equity Shares |
Rs.10/-
each |
Rs.
12.745 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
12.745 |
12.745 |
12.745 |
|
2] Reserves & Surplus |
249.881 |
127.861 |
22.811 |
|
3) (Accumulated Loss) |
0.000 |
-- |
-- |
NETWORTH
|
262.626 |
140.606 |
35.556 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
497.012 |
160.053 |
92.089 |
|
2] Unsecured Loans |
394.747 |
221.204 |
83.476 |
|
TOTAL
BORROWING |
891.759 |
381.257 |
175.565 |
|
Deferred Tax Liabilities |
49.600 |
30.523 |
0.000 |
|
|
|
|
|
GRAND TOTAL
|
1203.985 |
552.386 |
211.121 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
660.241 |
280.287 |
139.630 |
|
Capital work-in-progress |
36.427 |
8.758 |
15.737 |
|
Technical Know-how |
|
10.961 |
3.131 |
|
|
|
|
|
|
INVESTMENTS |
113.965 |
59.86 |
0.012 |
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
77.795 |
51.455 |
39.971 |
|
Sundry Debtors |
179.346 |
171.392 |
66.153 |
|
Cash & Bank Balances |
235.494 |
96.886 |
32.068 |
|
Loans & Advances |
113.893 |
73.665 |
22.963 |
|
Total Current Assets |
606.528 |
393.398 |
161.155 |
|
Less : |
|
|
|
|
Current Liabilities & Provisions |
213.212 |
201.611 |
102.009 |
|
Total Current Liabilities |
213.212 |
201.611 |
102.009 |
Net
Current Assets
|
393.316 |
191.787 |
59.146 |
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.036 |
0.127 |
0.145 |
|
Deferred Revenue Expenses |
|
0.660 |
1.320 |
|
|
|
|
|
GRAND TOTAL
|
1203.985 |
552.386 |
211.121 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
Sales Turnover [including other income]
|
1386.819 |
1345.153 |
809.575 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
186.065 |
174.768 |
33.139 |
Provision for Taxation
|
63.827 |
66.763 |
9.850 |
Profit/(Loss) After Tax
|
122.238 |
108.005 |
23.289 |
|
|
|
|
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Export Value
|
-- |
-- |
-- |
|
|
|
|
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Import Value
|
146.364 |
53.528 |
30.734 |
|
|
|
|
|
Total Expenditure
|
1200.754 |
1170.385 |
776.435 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
31.03.2002 |
PAT / Total Income
|
(%)
|
8.814 |
8.029
|
0.028 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
12.610 |
12.99
|
4.093 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
13.129 |
23.201
|
10.366 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.708 |
1.242
|
0.932 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
7.207 |
4.145
|
7.806 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
2.844 |
1.951
|
1.579 |
LOCAL AGENCY FURTHER INFORMATION
The increased demand for clutch Assemblies and Fronts Forks
coupled with better capacity utilization and costs saving measures have
contributed largely to this growth.
Subject has transferred its Clutch Assembly manufacturing
Machinery and Equipments and also assigned the related technical collaboration
agreements with Adlea Spa, Italy to its subsidiary viz. High Technology
Transmission Systems (India) Private Limited.
Subject has planned to add new products to its range.
Subject has acquired land and construction thereon has commenced. The
commercial production is expected to commence during the financial year
2003-04.
With this, subject hopes to achieve higher turnover and
better profitability during the current year.
Performance
The year under review recorded significant growth in the
turnover and profitability. The company has achieved a turnover of Rs. 1272.100
millions in the year under review as against a turnover of Rs. 1132.200
millions in the previous years. The profit before tax has increased to Rs
174.700 million in previous year. The increased demand for front forks coupled
with better capacity utilization and costs saving measures have contributed
largely to this growth.
Outlook
Front fork division
The campnay
continues to manufacturer quality telescope front fork with its state of art technology of manufacturing the front
forks of motor cycles.
In its efforts the company has strengthened the various
existing precise operations like VMC and CNC during the financial year. The
company has also installed fully automatic plant for Nickel qualities are
bringing confidence among the customers.
The company is a supplier to OEM’s like Bajaj Auto Limited,
LML and Kinetic Engineering apart from
after market sales.
Disc Brake Unit
The company has commenced the commercial production at its
disc brake unit in the month of
March 2004. Since braking system is a safety part in a
vehicle, it requires clearance by ARAI. The company is already in advanced
stages of seeking ARAI clearances and certification for safety parameters. The
company sees a great OEM and Export potential for its product in the segment,
which is expected to contribute favorable to the increase in turnover during
the current year.
Non-Ferrous casting Unit
The company has commenced the commercial production at its
non-ferrous Unit in the month of March, 2004. The company sees a great OEM
potential for its product in the segment, which is expected to contribute
favorable to the increase in turnover during the current year
Fixed Asset :
Leasehold land
Building
Plant and machinery
Wind energy generators
Factory equipments
Electrical installation
Computer
Dies
Vehicles
Furniture and fixture
Office equipments
Profile
Endurance
Transmission Systems (India) Pvt. Ltd. (Disc Brake Division), is manufacturing
world class disc brake assemblies for motorcycle under the technical
collaboration of M/S Bassano Grimeca, Italy.
It is
catering to domestic market of India & also exporting international OEMS.
The plant is situated at Waluj, Aurangabad (Maharashtra).
The entire setup is equipped with latest manufacturing facilities which
includes Blanking of discs, roller straightening, special heat treatment,
double disc grinding, anodizing plant and in process automatic
multi-gauging fixtures. These are all part of our in house capability.
The major product of the group are Shock Absorbers and Front Forks for all two
wheeler applications. After Successful establishment of above products in
Market, now Endurance has started new plant for manufacturing of Disc Brake
System & Discs for motorcycles & Scooterates.
Achievements
Ø
A
continuously moving special conveyer driven furnace
Ø
During
hardening , the rotary disc will undergo heating in a controlled
protective atmosphere of LPG and
subsequently undergo cooling in a jacket of cool water (No physical contact of
cooling element) , to completely avoid any kind of oxidation on the disc
surface.
Ø
After
hardening disc undergo tempering, to relieve the stresses caused during
previous processes.
Ø
During
tempering also the disc undergo heatin.
Group Profile
Endurance is a name that spells strength and
will to perform. Endurance, A name that finds expression in our performance.
Apart of one of corporate India’s leading automotive business houses, we have
created four entities having holistic approach and capabilities that include
designing, research and development as well as manufacturing
Ø
Anurang Engineering Company Pvt.
Ltd.
- High Pressure Die
cast Components and Tooling.
Ø
Endurance Systems India Pvt. Ltd.
- Hydraulic Telescopic Front Forks and Shock Absorbers.
Ø
Endurance Transmission Systems India
Pvt. Ltd.
- Hydraulic
Telescopic Front Forks, Two Wheeler Disk Brake
Assemblies and Low Pressure / Gravity Die-cast Components.
Ø
High Technology Transmission Systems
India Pvt. Ltd.
Clutch
Assembly, Friction Plates and Continuous Variation Transmissions
(CVTs)
Joint
Venture - Endurance Group has started joint venture
with M/s. Adler s.p.a. Italy, one of the world’s largest two and three
wheeler transmission system manufacturers, for providing technical know-how and
licensed to manufacture two wheeler clutch assemblies, friction plates, and CVTs.
(Continuous Variable Transmissions). The new company is named as “HIGH
TECHNOLOGY TRANSMISSION SYSTEMS“.
The company’s fixed assets of important value include
leasehold land, buildings, plant & machinery, electrical installation,
furniture & fixtures and Dies.
AS PER WEBSITE
Customer
Satisfaction Quality
(QS9000, TPM, Six Sigma)
Focus on
Technology Brand Equity
People
Involvement Market
Leadership
Value
Engineering Major
OEMs as Customers
Training Exports
Continuous
Improvement World class
manufacturing
Excellence
through individual
Entrepreneurship Cost Competitiveness
COLABORATIONS
We always try to deliver nothing less
than the world’s very best to our customers.' Towards this objective we have
established technical synergies with
Endurance Systems (I) Pvt. Ltd.
Technical collaboration with PAIOLI s.p.a. Italy
Endurance Transmission Systems (I) Pvt. Ltd.
Technical
collaboration with PAIOLI Meccanica s.p.a. Italy
Endurance Transmission Systems (I)
Pvt. Ltd.
Technical collaboration with Bassano Grimeca, Italy
High Technology Transmission Systems (I) Pvt. Ltd.
Joint Venture with Adler
s.p.a. Italy
Endurance Systems (I) Pvt. Ltd.
Technical
collaboration with AL-KO Group, Germany.
Achievements
Ø
Developed and launched rechargeable type Gas Filled Shock
Absorbers for 2 wheelers, first time in India
Ø
Patent granted for revolutionary
“Dust Seal Washer”.
Ø
Patent Applied for twin tube rechargeable canister type Ole –
pneumatic Shock Absorber.
Ø
Successfully Designed and Developed complete suspension for a new
type of Bike.
Ø
Successfully Designed and developed Hydraulic Shock Absorbers with
externally adjustable damping force in rebound and compression.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.34 |
|
UK Pound |
1 |
Rs.84.27 |
|
Euro |
1 |
Rs.57.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE
INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |