%20LIMITED%2014-Apr-2007_files/image002.jpg)
MIRA
INFORM REPORT
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Report Date : |
14.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
COVENTRY COIL O MATIC (HARYANA) LIMITED |
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Registered Office : |
87, KM Stone Delhi-Jaipur Highway Village Salawas, P O Sangwari,
Rewari-123401, Haryana |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.09.1988 |
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Com. Reg. No.: |
05-30370 |
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CIN No.: [Company
Identification No.] |
L74999HR1988PLC030370 |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchanges. |
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Line of Business : |
Manufacturers of Parts and Accessories for Motor Vehicles and their
Engines. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 200000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
87, KM Stone Delhi-Jaipur Highway Village Salawas, P O Sangwari,
Rewari-123401, Haryana, India |
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Tel. No.: |
91-01274-249369/ 68/70/ 371 |
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Fax No.: |
91-01274-249372 |
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E-Mail : |
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Branches : |
Delhi 209, Hans Bhawan, 1, Bahadur Shah Zafar Marg, New Delhi-110002, India |
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Tel. No.: |
91-11-23370390/ 23379986 |
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Fax No.: |
91-11-23370621 |
DIRECTORS
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Name : |
Mr. Narendra Mal Bafna |
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Designation : |
Managing Director |
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Address : |
1476, Gawande Layout, Sneh Nagar, Nagpur-440015, Maharashtra |
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Date of Birth/Age : |
04.12.1947 |
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Date of Appointment : |
23.09.1988 |
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Name : |
Mr. Rajendra Mal Bafna |
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Designation : |
Whole time Director |
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Address : |
Coventry Coil O Matic Haryana Limited, Village Salawas, Post Sangwari,
Rewari-123401, Haryana |
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Date of Birth/Age : |
23.06.1952 |
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Date of Appointment : |
16.03.1996 |
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Name : |
Mr. Ashok Mal Bafna |
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Designation : |
Director |
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Address : |
57, Raja Basanta Roy Road, Kolkata-700029, West Bengal, India |
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Date of Birth/Age : |
04.02.1946 |
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Date of Appointment : |
23.09.1988 |
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Name : |
Mr. Arun Kumar Mittal |
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Designation : |
Director |
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Address : |
D 810, New Friends Colony, New Delhi-110065 |
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Date of Birth/Age : |
30.06.1954 |
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Date of Appointment : |
30.01.2002 |
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Name : |
Mr. Sharad Malhotra |
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Designation : |
Director |
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Address : |
# 828, Sector 4, Urban Estate, Gurgaon-122001, Haryana |
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Date of Birth/Age : |
30.10.1974 |
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Date of Appointment : |
30.08.2003 |
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Name : |
Mr. Basant N Singhvi |
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Designation : |
Director |
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Address : |
B-7/113, Safdarjung Enclave, New Delhi-110029 |
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Date of Birth/Age : |
19.01.1952 |
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Date of Appointment : |
28.04.2004 |
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Date of Ceasing : |
30.09.2004 |
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Name : |
Mr. Harbaksh Singh |
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Designation : |
Chairman cum Managing Director |
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Address : |
Sector 24, H No.1022, Chandigarh-160017, Chandigarh |
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Date of Birth/Age : |
15.04.1957 |
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Date of Appointment : |
04.08.1999 |
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Date of Ceasing : |
29.06.2002 |
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Name : |
Ms. Ansuya P Chamoli |
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Designation : |
Director |
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Address : |
Sector 8B, House No.597, Chandigarh-160017, Chandigarh |
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Date of Birth/Age : |
18.08.1952 |
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Date of Appointment : |
19.06.1997 |
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Date of Ceasing : |
05.08.2002 |
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Name : |
Mr. Prabhak G Lele |
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Designation : |
Director |
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Address : |
106, Pariwar Apartment, NTS PNO 30, Patarganj, Delhi-110092 |
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Date of Birth/Age : |
04.11.1934 |
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Date of Appointment : |
21.02.1994 |
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Date of Ceasing : |
30.10.2001 |
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Name : |
Mr. Goutam Bhattacharya |
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Designation : |
Director |
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Address : |
BK 181, Sector 2, Salt Lake, Kolkata-700091, West Bengal |
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Date of Appointment : |
30.10.2002 |
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Date of Ceasing : |
25.09.2003 |
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Name : |
Mr. Yudhister Kumar Bhatia |
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Designation : |
Director |
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Address : |
HSIDC Plot No.13 and 14, Sector 6, Punchkula-134109, Haryana |
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Date of Birth/Age : |
12.05.1949 |
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Date of Appointment : |
18.08.2000 |
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Date of Ceasing : |
30.07.2002 |
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Name : |
Mr. Raj Kumar Gupta |
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Designation : |
Director |
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Address : |
HSIDC Plot No.13 and 14, Sector 6, Punchkula-134109, Haryana |
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Date of Birth/Age : |
19.08.1946 |
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Date of Appointment : |
29.06.2002 |
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Date of Ceasing : |
05.08.2002 |
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Name : |
Mr. Mahavir Singh |
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Designation : |
Director |
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Address : |
HSIDC Plot No.13 and 14, Sector 6, Punchkula-134109, Haryana |
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Date of Birth/Age : |
08.08.1961 |
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Date of Appointment : |
30.07.2002 |
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Date of Ceasing : |
05.08.2002 |
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Name : |
Mr. Dhanendra Kumar (IAS) |
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Designation : |
Director |
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Name : |
Mr. Venu Nallur |
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Designation : |
Director |
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Name : |
Mr. Krishan Kumar Sharma |
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Designation : |
Director |
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Name : |
Mr. Jagdish Chandra Malhotra |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Jay Prakash Lodha |
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Designation : |
Company Secretary |
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Address : |
The Government Emp. GHS Limited, Flat No.O-3, Sector 3, Part II, Bawal
Road, Rewari-123401, Haryana |
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Date of Birth/Age : |
16.05.1969 |
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Date of Appointment : |
01.04.1999 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Bodies Corporate |
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48.18 |
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Director or their relatives |
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0.32 |
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Other top 50 shareholders |
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14.84 |
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Others |
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36.65 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Parts and Accessories for Motor Vehicles and their
Engines. |
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Products : |
Type of Products Compression Springs Standard, Barrel, Conical, Hour Glass, Pig
Tail and Miniblock Extension Springs (Tension) All tyoes of extension and all kinds of
Hooks Torsion Springs Single and Dohuble Torsion Wire Forms All kinds of Wire Forms.
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PRODUCTION STATUS
(As
on 31.03.2005)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Coil Springs |
MT |
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4000.000 |
3273.281 |
GENERAL
INFORMATION
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Customers : |
v Maruti Suzuki v Tata Motors v Sundaram Clayton v Bajaj Tempo v Alstom Limited v ABB Limited v BHEL v Bombardier
Transportation India Limited v Eicher Tractors
Limited v Enexco Limited v Gerb Vibration
Limited v Miltech
Industries Private Limited v Minda Impco
Limited v Pipe Supports
Indi Private Limited v Railways v Rifle Factory/
Small Arms Factory v Salter India
Company |
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No. of Employees : |
About 200 |
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Bankers : |
ICICI Bank Limited IFCI Limited Industrial Development Bank of India |
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Facilities : |
Secured Loans
(Rs. In millions) :
Unsecured Loans
:
Note : Secured Loans : Term loan from financial institution are secured by first mortgage
ranking pari passu of tall the immovable properties booth present and future and
a first charge by way of hypothecation of all the movable (save and except
book debts) including movable machinery, spares, tolls and accessories,
present and futre subject to prior charge to be create in favor of the
company’s bankers on the stock of raw materials, semi finished and finished
goods, consumable stock of such movables as may be agreed by the lead
institution for securing the working capital requirements and also guaranteed
by the promoter company Coventry Spring and Engineering company Limited as
its promoters. Lenders have at their option a right to convert the 20% of outstanding
amount into fully paid equity shares, in the event of default by the company
in name of principal and/or interest. Loan from ICICI Bank Limited against hypothecation of motor cars. The company has taken up with certain financial institutions for
deferment/re structuring of their overdue as per one time settlement (OTS)
approved by BIFR during the 1999-2000 and revision of interest thereon.
Pending sanction f the proposal by the financial institutions, the interest
is continued to be provided at the rates as per restructuring plan approved
by BIFR and relief will be accounted as and when finally settled. Loans to financial institutions are over due for payments, which is
subject to reconciliation and confirmation from respective institutions. Unsecured Loans
: Rs.2.700 millions (including Rs.0.500 millions interest free loan) is
repayable on demand. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Singhi & Company Chartered Accountants |
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Address : |
402, Pragati House, 47-48, Nehur Place, New Delhi-110019 |
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Associates/Subsidiaries : |
Coventry Spring & Engineering Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4508000 |
Equity Shares |
Rs.10/- each |
Rs.45.080
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
45.000 |
45.035 |
45.035 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5.100 |
5.067 |
7.018 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
50.100 |
50.102 |
52.053 |
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LOAN FUNDS |
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1] Secured Loans |
90.400 |
90.594 |
80.202 |
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2] Unsecured Loans |
2.200 |
3.715 |
5.060 |
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TOTAL BORROWING |
92.600 |
94.309 |
85.262 |
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DEFERRED TAX LIABILITIES |
0.000 |
7.279 |
8.275 |
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TOTAL |
142.700 |
151.690 |
145.590 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
98.100 |
102.208 |
105.637 |
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Capital work-in-progress |
3.500 |
7.272 |
6.812 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
17.200
|
18.335 |
17.094 |
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Sundry Debtors |
45.600
|
45.713 |
34.859 |
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Cash & Bank Balances |
6.700
|
5.530 |
4.170 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
21.000
|
6.536 |
3.301 |
|
Total
Current Assets |
90.500
|
76.114 |
59.424 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
41.400
|
30.373 |
23.386 |
|
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Provisions |
8.000
|
3.531 |
2.897 |
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Total
Current Liabilities |
49.400
|
33.904 |
26.283 |
|
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Net Current Assets |
41.100
|
42.210 |
33.141 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
142.700 |
151.690 |
145.590 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
346.700 |
265.624 |
200.557 |
|
|
Other Income |
1.100 |
2.535 |
(1.137) |
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Total Income |
347.800 |
268.159 |
199.420 |
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|
Profit/(Loss) Before Tax |
0.600 |
(2.275) |
(0.933) |
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Provision for Taxation |
0.600 |
0.325 |
(1.955) |
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Profit/(Loss) After Tax |
0.000 |
(1.950) |
(2.288) |
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Total Earnings |
16.835 |
18.040 |
4.688 |
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Imports : |
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Raw Materials |
NA |
0.040 |
0.490 |
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Capital Goods |
NA |
1.376 |
5.075 |
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Total Imports |
8.943 |
1.653 |
5.565 |
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Expenditures : |
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Manufacturing Expenses |
37.700 |
54.712 |
44.416 |
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Administrative Expenses |
23.000 |
22.513 |
23.374 |
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Raw Material Consumed |
152.300 |
138.692 |
89.143 |
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|
Miscellaneous Expenses |
6.100 |
NA |
NA |
|
|
Salaries, Wages, Bonus, etc. |
29.400 |
22.739 |
19.963 |
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|
Interest |
0.200 |
12.521 |
13.407 |
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Power & Fuel |
30.700 |
NA |
NA |
|
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Depreciation & Amortization |
20.500 |
19.256 |
10.050 |
|
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Other Expenditure |
47.300 |
NA |
NA |
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Total Expenditure |
347.200 |
270.434 |
200.353 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1st
Qtr.) |
30.09.2006 (2nd
Qtr.) |
31.12.2006 (3rd
Qtr.) |
|
Sales Turnover |
79.100 |
88.900 |
84.600 |
|
Other Income |
0.800 |
0.900 |
0.600 |
|
Total Income |
79.900 |
89.800 |
85.200 |
|
Total Expenditure |
74.100 |
89.100 |
85.800 |
|
Operating Profit |
5.800 |
0.700 |
(0.600) |
|
Interest |
0.000 |
0.100 |
0.500 |
|
Gross Profit |
5.800 |
0.600 |
(1.100) |
|
Depreciation |
5.500 |
5.600 |
5.100 |
|
Tax |
0.200 |
0.200 |
0.100 |
|
Reported PAT |
0.100 |
(5.200) |
(6.300) |
200606 Quarter 1
Notes
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (2.787)
million Consumption of Raw Material Rs 44.207 million Staff Cost Rs 7.940
million Other expenditure - Stores and Spare Parts Consumed Rs 7.436 million -
Power and Fuel consumed Rs 8.660 million - Others (Less than 10% of the Total
Expenditure) Rs 8.745 million Tax Includes Provision for Fringe Benefit Tax EPS
is Basic & Diluted Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter 04 Complaints
Received during the quarter 07 Complaints disposed off during the quarter 07
Complaints unresolved at the end of the quarter 04 1. As defined in Accounting
standard 17- Segment reporting, the business activity of the company falls within
a single primary business segment i.e. Automobile. Export made during the
period is not significant. 2. Deferred Tax will be provided at the end of the
year. 3. The above financial results which are subject to Limited Review by the
Auditors' of the Company, have been reviewed by the Audit Committee and taken
on record by the Board of Directors on July 31, 2006. 4. The Management of the
Company is of the view that since there is difference in tile interest payable
than demanded by the Financial Institutions due to the quantum of relief of
excess interest charged by the Financial Institutions in earlier years, the
liability of interest payable can not be determined, therefore, no provision of
interest has been made in the Books of Account. 5. Figures for earlier Quarter
/ Year have been re-grouped / re-arranged to make comparable for the Current
Quarter.
200609 Quarter 2
Notes
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (0.971)million
Consumption of Raw Material Rs 55.365 million Staff Cost Rs 7.172 million Other
expenditure - Stores and Spare Parts Consumed Rs 6.859 million - Power and Fuel
consumed Rs 10.770 million - Others (Less than 10% of the Total Expenditure) Rs
9.988 million Tax Includes Provision for Fringe Benefit Tax EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter 04 Complaints Received
during the quarter 09 Complaints disposed off during the quarter 09 Complaints
unresolved at the end of the quarter 04 1. As defined in Accounting standard
17- Segment reporting, the business activity of the company falls within a
single primary business segment i.e. Automobile. Export made during the period
is not significant. 2. Deferred Tax will be provided at the end of the year. 3.
The above financial results which are subject to Limited Review by the
Auditors' of the Company, have been reviewed by the Audit Committee and taken on
record by the Board of Directors on October 31, 2006. 4. The Management of the
Company is of the view that since there is difference in tile interest payable
than demanded by the Financial Institutions due to the quantum of relief of
excess interest charged by the Financial Institutions in earlier years, the
liability of interest payable can not be determined, therefore, no provision of
interest has been made in the Books of Account. 5. Figures for earlier Quarter
/ Half Year have been re-grouped / re-arranged to make comparable for the
Current Quarter / Half Year.
200612 Quarter 3
Notes:
1. As defined in Accounting Standard 17-Segment reporting, the business
activity of the company falls within a single primary business segment i.e.
Automobile. Export made during the period is not significant. 2. Deferred Tax
will be provided at the end of the year. 3. Number of Investors complaints for
quarter ended 31.12.2006: Beginning-4, Received-8, Disposed off-11 and
Pending-1. 4. The above financial results which are subject to 'Limited Review'
by the Auditor's of the Company, have been reviewed by the Audit Committee and
taken on record by the Board of Directors on 27th January 2007. 5. The
Management of the Company is of view that since there is difference in the
interest payable than demanded by the Financial Institutions due to the quantum
of relief of excess interest charged by te Financial Institutions in earlier
years the liability of interest payable can not be determined therefore, no
provision of interest has been made in the books of account. 6. Figures for
earlier quarter/Half Year/Year have been re-arranged to make comparable for the
Current Quarter/Half Year.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.87 |
1.76 |
1.64 |
|
Long Term Debt-Equity Ratio |
1.87 |
1.76 |
1.64 |
|
Current Ratio |
1.74 |
1.58 |
1.69 |
|
TURNOVER RATIOS |
7.41 |
8.91 |
8.58 |
|
Fixed Assets |
1.52 |
1.45 |
1.18 |
|
Inventory |
19.53 |
17.29 |
12.29 |
|
Debtors |
7.59 |
7.60 |
5.81 |
|
Interest Cover Ratio |
5.50 |
0.82 |
0.96 |
|
Operating Profit Margin(%) |
6.23 |
9.67 |
9.82 |
|
Profit Before Interest And Tax Margin(%) |
0.32 |
3.36 |
5.51 |
|
Cash Profit Margin(%) |
5.48 |
5.68 |
3.49 |
|
Adjusted Net Profit Margin(%) |
(0.43) |
(0.62) |
(0.82) |
|
Return On Capital Employed(%) |
0.77 |
7.31 |
9.12 |
|
Return On Net Worth(%) |
(2.99) |
(3.72) |
(3.57) |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.12.30 |
|
Low |
Rs.11.14 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 Particular for creation or modification of charges
|
Name of the company |
COVENTRY COIL
O MATIC (HARYANA) LIMITED |
|
Presented By |
Mr. Ashok Babu, Company
Secretary |
|
1) Date and description of instrument creating the change |
20.08.1990, Deed of hypothecation. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Foreign currency loan of DM 189950 and US $ 10065 equivalent to US $ 108118 |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge by way of hypothecation of all the movable assets except book debts including movable machinery, machinery, spares, tools andaccessories present and future subject to prior change created as to be created by bankers on raw material etc. for working capital. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest with reference to the weighted average cost of qualified borrowings and amount payable to ERAF which rate shall not be less than 17% and shall not be more than 20% p.a. |
|
5) Name and Address and description of the person entitled to the charge. |
ICICI Limited 163, Backbay Reclamation, Bombay. |
|
6) Date and brief description of instrument modifying the charge |
Letter of ICICI dated 14.06.1991 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
On the loan disbursed till March 31, 1991, the rate of interest shall noit be less than 17% and shall not be more than 20% p.a. On the balances of loan the rate of interest shall not be les than 23% and shall not be more than 26% p.a. |
|
Name of the company |
COVENTRY COIL
O MATIC (HARYANA) LIMITED |
|
Presented By |
COVENTRY COIL
O MATIC (HARYANA) LIMITED |
|
1) Date and description of instrument creating the change |
Deed of hypothecation dated 20.08.1190 executed by Conventry Coil On Matic (Haryana) Limited (therein and hereinafter referred to ass the company) in favour of the Industrial Credit and Investment Corporation India Limited (ICICI) (therein and hereinafter referred to as the lead institution) Industrial Development Bank of India (hereinafter referred to as IDBI) and the financial institutions as therein mentioned (therein and hereinafter collectively referred to as the lenders). |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Foreign currency loan of DM 276100 equivalent to US $ 142525 (therein and hereinafter referred to as the loan). |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The whole of the movable properties of the company situate at Village Sahalawas, Tehsil and District Rewari-123401, Haryana including the company’s movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts) (therein and hereinafter referred to as the said goods). |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
In consideration of IDBI having agreed to lend and advance to the company the loan, agreement and declaration by the company, inter alia as follows : Covent by the company to repay the loan and pay interest and all other monies to the lead institutions in the manner set out in the loan agreement between the company, IDBI and other lenders and to comply with the terms and conditions of the said loan agreement. The said goods were thereby hypothecated inter alia, to IDBI as and by way of first charge as security for the repayment of the loan with all interest, commitment charge, liquidated damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to IDBI in respect thereof provided that the charge of IDBI on the said goods will be subject to the charge or charges created and/or to be created by the company in favour of its bankers on its stocks of raw materials, semi finished and finished goods, consumable stores and such other moveable as may be agreed to by the lead institution to secure borrowings in the ordinary course of business of the company for its working capital requirements. The company to keep the said goods in marketable and good condition and also insured as provided therein. Power of entry, power to take charge, and/or possession of, seize, recover, receive, appoint and/or sale by public auction or private contract, dispatch for realization or otherwise dispose of or deal with all or any part of the said goods; etc. as provided therein. |
|
5) Name and Address and description of the person entitled to the charge. |
Industrial Development Bank of India IDBI Towers, Cuffe Parade, Mumbai-400005 |
|
6) Date and brief description of instrument modifying the charge |
No instrument was executed but on the 25.01.1991, a first mortgage was created by the company jointly in favour of ICICI, IDBI and Industrial Finance Corporation of India (IFCI) (the rein and hereinafter referred to as the lenders) by deposit of title deeds with ICICI acting for itself ad as agent of IDBI and IFCI in respect of the company’s immoveable properties situate at village Sahalawas, Tehsil and District Rewari-123401, Haryana in order to create a security thereof as and by way of joint mortgage by deposit of title deeds pursuant to the resolution passed by the company on 21.12.1990. |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The loan together with interest, compound interest, addition al interest, commitment charges, liquidated damages, premia on prepayment or on redemption costs, charges and other expenses payable by the company to IDBI in respect thereof secured under the abovementioned deed of hypothecation is also now secured by the said first mortgage by deposit of title deeds in respect of the Company’s immoveable properties situate at Village Sahalwas, Tehsil and District Rewari-123401, Haryana together with buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth. |
OPERATIONS:
During the year under review, Gross sales of your Company increased 13.2% to
Rs.346.596 millions. As the prices of steel was steady over the last one year, the
input cost of Raw Material remained the same, The Gross Profit for the year
2005-06 was Rs.21.106 millions as compared to the previous year which was
Rs.16.991 millions, an increase by 24.2%.
COURSE OF BUSINESS AND OUTLOOK:
As required under the Corporate Governance, the Management Discussion and
Analysis Report, which is forming a part of this report, is a reflection of the
current state of your Company's Business. The report also deals with the
opportunities and challenges faced by your Company and the outlook for the
future.
BUSINESS
OVERVIEW:
The Company is a leading manufacturer of Auto Suspension Springs and is one of the leading market players in springs for other Industrial Application. Business from the Auto Suspension Springs accounted for more than 63% of the turnover. With most of the economic indicators of the Country recording a growth of 8.4% during 200506, the Automotive Industry, however, witnessed a difficult year as growth off domestic sales in all categories of vehicles slowed down to 8.5% from 18.6% in the previous year 2004-05. Amidst this situation, although the Company's sales grew by 13.2%, the growth in Auto Components sector has been only 6.7% as compared to the industry sales growth of 7.1%.
The Company, with its record performance of 1.89 million Heavy Coil Springs,
now contributes over 35% of the 3 & 4-wheeler Vehicles springs sales.
INDUSTRY STRUCTURE &
DEVELOPMENT:
The growth rate of the passenger vehicle industry started to slow down from
the previous year because of the ever increasing base. The industry grew by
only 7.5% for the current year in comparison to 17.6% for the year
2004-05.
Similarly, the growth rate of the commercial vehicle industry also slowed down,
the industry growing by only 4.5% when compared with the previous year of
23.03%.
The Door Checker Hinges Industry in Canada and UK, to whom the Company exports
springs, has grown significantly during the current year. Although the
requirement of the springs is in huge numbers, the Company has only been able
to supply less than 30% of the required demand. As there is a high opportunity
in this segment, the same needs to be structured for future analysis.
COMPANY PERFORMANCE:
Existing Products:
The Company has a strong presence in the Mini & Compact Passenger Cars
segment as its main customer, Maruti Udyog Limited, has 4 models in this
segment with those compared to competition. Due to this reason, the Company has
a market share of approx. 36% in the Auto Suspension Springs market in India.
The strong growth in the Mid-size/Executive and Premium/Luxury Passenger Cars
segments continue, but the total volumes were not so high, so the Company with
its growth of 13.2% continued to maintain the above market share.
Although the growth in the Medium and Heavy Commercial Vehicles segment has
reduced to 4.5% as compared to the previous year growth of more than 23%, the
Company's growth rose significantly to enable it to achieve a higher Market
share of almost 80%.
The Company is in the process of further ramping up its coiling, grinding and
prestressing Capacity to enable a substantial growth in its Export Sales in the
coming years and increase its Market Share from the present 30%.
New Product Development:
The Company is in the process of developing suspension springs for new vehicles
under development by Tata Motors Limited
BUSINESS OUTLOOK AND OVERVIEW:
As per current indications, the outlook for the year 2006-07 looks very
positive. Although the growth of the Passenger Car Industry may slowdown to
10-150/0, the market share of MUL, the Company's main customer is increasing.
The Company can expect a growth of around 20-25% in the Auto Suspension Springs
business due to ramping up its capacity for Heavy Coil Springs.
Growth in the Medium and Heavy Commercial Vehicle segment is expected to be low
as the growth is expected to be significant in the Light Commercial Vehicles
(LCVs). The Company, however, is striving to increase its market share and
could expect a growth of 2-5% in this segment.
Although there wag high demand in the requirement of springs for the Export
market to Canada and UK for Door Checker Hinge Springs, the Company had to
re-organise its processing systems, and therefore, its Export Sales marginally
reduced compared to the previous year. However, with the modified processing
systems now in place and also ramping up of its processing Capacity, the
Company expects to increase its Export Sales substantially.
Company’s fixed assets include Freehold Land, Buildings, Office Premises,
Tube Well, Plant and Machinery, Office Equipments, Furniture and Fixtures,
Computers and Vehicles.
Contingent Liabilities :
Liabilities which are material and whose future
outcome cannot be ascertained with reasonable certainty are treated as
contingent and to the extent not provided for atre disclosed by way of notes on
accounts.
Contingent Liabilities not provided for :
(Rs. In millions)
|
Particulars |
As at 31.03.2005 |
As at 31.03.2004 |
|
Demand for liquidated damages. The company is negotiating with financial
institutions (ICICI, IDBI, IFCI) for waiver of all other charges including
liquidated damages and is hopeful of getting the same in its favour. Accordingly
no provision has been made in the books of account. |
9.006 |
6.196 |
|
Estimated amount of contracts remaining to
be executed on Capital account and not provided for (net of advance) |
1.686 |
2.941 |
Website Details :
Over the past 50 years, subject maintained and
extremely high standard of service to its customers, which is amply reflected
in its present position as one of the Spring Manufacturer in India.
Subject responds to the evn expanding
international needs for a quicker and more effective transportation system.
Subject’s products are identified with superior features and high reliability.
Subject is fully committed to a continuous
programme of Total Quality Management (TQM). High quality products are being
achieved as a result of constant review and application of stringent internal
cquality producrers to meet any internationally recogfgnized standards as
specified by the customers.
Vision and Mission Statement :
Their vision :
To be a world class Spring Manufacturing
Company.
Their Mission :
To become an international market leader by
providing value to its stakeholders – including its
Customers
Employees
Associates and
Society at large
By becoming competitive through continuous
technology improvements and exceeding Customer’s Expectations.
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.40.78 |
|
UK Pound |
1 |
Rs.81.79 |
|
Euro |
1 |
Rs.55.66 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|