MIRA
INFORM REPORT
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Report Date : |
01.08.2007 |
IDENTIFICATION DETAILS
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Name : |
IMPERIAL AUTO INDUSTRIES LIMITED |
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Registered Office : |
202, Kaushal Bazar, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.07.1975 |
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Com. Reg. No.: |
55-7737 |
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CIN No.: [Company
Identification No.] |
U74899DL1975PLCO07737 |
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TAN No.: (Tax Deduction & Collection Account No.) |
RTKI00449B |
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PAN No.: (Permanent Account No.) |
AAACI0645J |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Engaged in the business as manufacturers and exporters of Motor Vehicle Parts, Hydraulic Parts, IC Engine Parts and other Auto Parts |
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 1900000 |
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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 having satisfactory track. Trade relations are fair. General financial position is satisfactory. 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 : |
202, Kaushal Bazar, |
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Tel. No.: |
91-11-26419619/22619619/26412022 |
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Fax No.: |
91-11-26412736 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Location : |
Commercial |
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Corporate Office / Factory : |
Opposite Railway Goods Shed, |
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Tel. No.: |
91-129-2423791/2412311/2412736 |
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Fax No.: |
91-129-2412136/2428158 |
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E-Mail : |
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Area : |
Owned Land : 8500 sq. meters Building : 4550 sq. meters |
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Location : |
Industrial |
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Factory : |
Unit
II
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Plot No. 94, Sector 25, Tel.No : 91-129-5062744/5062741/5062742/2441027 Fax No : 91-129-2441028 Email : iail2@vsnl.net Area : Land- 7040 sq. meters, Building – 3070 sq. meters Unit
III
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Plot No. 32, Sector 27, Tel. No: 91-129-2273692/2271792/2271146 Area : Land- 1485 sq. meters, Building – 800 sq. meters Location: Industrial Unit
IV
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Plot No. 83, Sector 25, Tel. No. 91-129-2231148/2232993/5062744 Fax No. 91-129-2441028 Area : Land- 8780 sq. meters, Building – 4650 meters Location: Industrial |
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Tel. No.: +1 586 415 0297 Fax No.: +1 586 415 6231 E-Mail : shawncox 734@cs.com
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Warehouse : |
Located at
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DIRECTORS
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Name : |
Mr. Jagjit singh |
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Designation : |
Chairman-cum-Managing Director |
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Address : |
9, Sector 16-A, |
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Date of Birth/Age : |
15.09.1938 |
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Date of Appointment : |
01.04.2005 |
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Name : |
Mr. Shyam Bihari Sardana |
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Designation : |
Managing director |
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Address : |
D-99, Panchsheel Enclave, |
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Date of Birth/Age : |
21.03.1944 |
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Date of Appointment : |
01.04.2005 |
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Name : |
Mr. R. N. Malik |
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Designation : |
Director |
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Address : |
House No 15, Sector 16 A |
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Date of Birth/Age : |
20.09.1937 |
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Date of Appointment : |
28.09.1998 |
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Name : |
Mr. M. K. Valecha |
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Designation : |
Director |
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Address : |
S-234 Greater Kailash, |
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Date of Birth/Age : |
24.10.1954 |
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Date of Appointment : |
28.09.1998 |
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OTHER PERSONAL |
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Name : |
Ms. Manav Mittal |
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Designation : |
Company Secretary |
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Address : |
B-33 |
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Date of Birth/Age : |
29.07.1975 |
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Date of Appointment : |
05.11.2001 |
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Name : |
Mr. Pankaj Kumar |
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Designation : |
Fianace Head |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Ms. Vishan Devi |
292020 |
1.80 |
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Mr. Sham Behari Sardana |
6478820 |
39.89 |
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Mr. Jagjit Singh |
7041681 |
43.35 |
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Mr. Manjeet lamba |
722400 |
4.45 |
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Mr. Sham Bihari Sardana |
638440 |
3.93 |
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Ms. Manav Sardana |
120870 |
0.74 |
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Ms. Shobha sardana |
519300 |
3.20 |
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Mr. Tarun Lamba |
157008 |
0.97 |
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I. S. Jaggi, HUF |
42687 |
0.26 |
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P D Saradana HUF |
72300 |
0.45 |
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Tarun Lamba HUF |
42600 |
0.26 |
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Jagjit Singh HUF |
115374 |
0.71 |
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Total |
16243500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in the business as manufacturers and exporters of Motor Vehicle Parts, Hydraulic Parts, IC Engine Parts and other Auto Parts |
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Products : |
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Exports to : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Actual Production |
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Motor Vehicl Parts / Hydra Other Auto Parts ulic Parts / IC Engine Parts / |
No. |
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26957113 |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
· Boss Forklifts · Case Excavators · Caterpillar Engines · Cummins Engines · Daewoo Cars and Excavators · Dynapack · Fiat Uno Cars · General Motors · Honda Motorcycles · Hyundai Cars · Iveco Trucks · Jcb Loaders · John Deere Tractors · Komatsu Forklifts ·
· Massey Fergusson Tractors · Mazda Trucks · Mitsubishi Lancer Cars ·
New · Nissan Trucks · Perkins Engines · Peugot Cars · Peugot Engines for Jeeps · Suzuki Cars |
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No. of Employees : |
Total: 900 (Manager:48, Engineers:107, C.Staff:86, Workers:659) |
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Bankers : |
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Facilities : |
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Banking Relations
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Satisfactory |
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Auditors : |
v J L Malhotra & Company Chartered Accountants, 48 Khan Market, Tel. 91-11-2461 6820/2469 4549 Fax. 91-11-2460 28369 |
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Associates : |
v IAI Industries Limited Chakan,
Pune, Maharashtra v Eagle Picher Imperial Auto Industries Limited Pune
(Now known as Imperial Auto Nylon Tubing’s Limited) v
IAI Limited Pune, v
IAI Limited v
IAI Limited |
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Group Companies : |
Line of Business :Manufacturers of Extruded Nylon Tubes, Automotive Nylon Tube Assemblies
Line of business : Manufacturers of Brake / Fuel tubes – Fuel injection tubes, Sheet Metal components, Brake Shoes for two wheelers
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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16,243,500 |
Equity Shares |
Rs.10/- each |
Rs. 162.435 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
162.400 |
162.435 |
54.145 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
325.200 |
161.838 |
157.530 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
487.600 |
324.273 |
211.675 |
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LOAN FUNDS |
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1] Secured Loans |
485.300 |
373.578 |
236.434 |
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2] Unsecured Loans |
1.200 |
1.367 |
16.891 |
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TOTAL BORROWING |
486.500 |
374.945 |
253.325 |
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DEFERRED TAX LIABILITIES |
0.000 |
9.073 |
4.498 |
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TOTAL |
974.100 |
708.291 |
469.498 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
276.200 |
209.936 |
117.640 |
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Capital work-in-progress |
7.800 |
2.513 |
1.351 |
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INVESTMENT |
71.300 |
2.390 |
2.390 |
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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 |
189.500
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164.460
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141.338 |
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Sundry Debtors |
699.500
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514.042
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336.026 |
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Cash & Bank Balances |
39.500
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53.405
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70.137 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
187.500
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144.506
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74.739 |
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Total
Current Assets |
1116.000
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876.413
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622.240 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
499.900
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382.975
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274.170 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
499.900
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382.975 |
274.170 |
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Net Current Assets |
616.100
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493.438
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348.070 |
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MISCELLANEOUS EXPENSES |
2.700 |
0.014 |
0.046 |
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TOTAL |
974.100 |
708.291 |
469.498 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2654.500 |
2052.411 |
1382.623 |
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Other Income |
6.000 |
0.000 |
0.000 |
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Total Income |
2660.500 |
2052.411 |
1382.623 |
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Profit/(Loss) Before Tax |
254.300 |
174.212 |
102.807 |
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Provision for Taxation |
90.400 |
64.724 |
36.672 |
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Profit/(Loss) After Tax |
163.900 |
109.488 |
66.135 |
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Earnings in Foreign Currency : |
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Other Earnings |
0.000 |
312.719 |
129.774 |
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Total Earnings |
0.000 |
312.719 |
129.774 |
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Imports : |
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Others |
0.000 |
453.288 |
291.675 |
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Total Imports |
0.000 |
453.288 |
291.675 |
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Expenditures : |
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Raw
Materials |
1767.800
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0.000 |
0.000 |
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Excise
Duty |
00.000
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0.000 |
0.000 |
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Power
& Fuel Cost |
32.000
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0.000 |
0.000 |
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Other
Manufacturing Expenses |
00.000
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0.000 |
0.000 |
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Employee
Cost |
39.200
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0.000 |
0.000 |
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Selling
and Administration Expenses |
30.600
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0.000 |
0.000 |
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Miscellaneous
Expenses |
450.000
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0.000 |
0.000 |
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Other Expenditure |
0.000 |
1827.029 |
1241.368 |
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Total Expenditure |
2319.600 |
1827.029 |
1241.368 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
1.06 |
1.17 |
1.25 |
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Long
Term Debt-Equity Ratio |
0.65 |
0.18 |
0.24 |
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Current
Ratio |
1.63 |
1.25 |
1.29 |
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TURNOVER
RATIOS |
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Fixed
Assets |
7.91 |
10.15 |
11.00 |
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Inventory |
15.00 |
15.13 |
14.18 |
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Debtors |
4.37 |
5.44 |
4.98 |
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Interest
Cover Ratio |
7.25 |
7.16 |
5.20 |
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Operating
Profit Margin(%) |
12.50 |
9.74 |
9.03 |
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Profit
Before Interest And Tax Margin(%) |
11.11 |
8.76 |
8.14 |
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Cash
Profit Margin(%) |
7.56 |
5.72 |
5.11 |
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Adjusted
Net Profit Margin(%) |
6.17 |
4.73 |
4.23 |
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Return
On Capital Employed(%) |
35.32 |
34.81 |
31.64 |
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Return
On Net Worth(%) |
40.38 |
40.87 |
36.98 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on
It was
established as a partnership concern and started assembling fuel hoses in a
small area (30 sq.mtrs.).
It was converted into public limited company with effect from
Subject has invested with M/s
Imperial Auto Nylon Tubing Limited,
(Formerly known as Eagle Picher Imperial Auto Industries Limited)
Subject has 99.96% share holding in its subsidiary company “Imperial
Auto Nylon Tubing Limited”
It exports finished products.
It Imports raw materials, consumables and capital goods
The company is certified by ISO/TS 16949 :2002, ISO 14001.
Its major machinery and Equipments include:
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RIGID TUBES
GI Cnc Pipe Bending Machines
Flaring Machines
Induction Heating/ Brazing
Equipment
Thread Rolling Machine
Power Presses Capacity
10t
Tig Welding Machines
Electroplating Line
Barrel For Electro
Planting
Rectifier
Intensifier
Oven For Drying
Centrifugal
Dryer
Controlled Atmosphere Continuous
Brazing Furnace
Pneumatic Spm Bender
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RUBBER TUBING & HOSES
Kneaders, Coldfeed Extruders
Mixing Mills, Vulcanising Lines
Braiders, Knitting Machines
Co-Extrusion Line
Transfer Molding
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HOSE ASSEMBLY
Hose Cutting & Skiving, Ewald Teflon
Hose Cutter, Cnc Crimpers, Nut Crimpers
Air Hydro Pumps For Burst & Leakage Testing
Finn Power Crimpers
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RUBBER & TESTING LABORATORY
Muffle Furnace For Rubber
Hot Air Circulation Oven Upto 300 Deg.C
Cold Flexibility Testing Equipment (-70 Deg.C)
Hyd. Brake Hose Assembly. Testing (Is 7079)
Tensile Testing Machine
Votumetric Expansion Testing Equipment
Whip Testing Equipment
Rheometer
Ageing Machine
Vibration Testing Rig
Ozone Testing M/C
Rheometer Ageing Machine
Salt Spray Chamber
Magnaflux Crack Detector
Profile Projector
Millipore Test Apparatus For Wt &
Particle Size Measurement
Surface Finish Tester
The company's
fixed assets of important value include telephones, fax machine, computers,
Xerox machine, furniture, etc
Profile :
1970’s IAI started supplying to M&M, Telco, Kirloskar, FIAT,
Ambassador, etc. as these were the only automotive players in that decade.
1980s Japanese collaborations
like Maruti-Suzuki & LCVs from Mazda, Nissan,
1990s Multinationals like New-Holland, Ford, FIAT, John-Deere,
JCB, Hitachi, Mitsubishi, GM IAI took active participation in the emerging
scenario & became a supplier most of the above original equipments.
2000s Global
sourcing from multinationals overseas was a great potential area, like
JCB, John-Deere, New Holland, Cummins, Komatsu etc. IAI got
status of approved global supplier from John Deere Cummins was already exporting
to some OE manufacturers overseas.
As Per Web site:
Founded in 1969, IAI today is a pioneer
manufacturer and exporter in automotive tubing sector. Employing about 900
qualified People, it has manufacturing operations in 5 different plants in
With an ambition to become a globally
recognized and financially strong company, IAI sustains an
undisputed leadership in the Indian market. IAI is
well established strong company and has heavily invested in several auto-parts
plants in important automotive fields, each plant's facilities
meet international standards to assure the quality of the product
at international level.
The company policy is to ensure value for money
to the customer, by providing products, which meet customer's
requirement.
IAI strives to achieve consistent
improvement in quality through process control, adherence to
quality system and safe and clean working environment.
QS-9000 Certified in the year 2000 , ISO-14001
awarded in 2003 and TS-16949 certified in 2004 IAI has become the
ultimate choice of the global market in the automotive sector.
COMPANIES
PHILOSOPHY
Ensure value for money to the customers.
- Make products
which meet / exceed customer expectations.
- Treat work
force as members of a big family.
- Run all
business groups operations profitably.
MAIN
BUSINESS GROUPS
Automotive
Steel Tubings
Brake
Tubes
Fuel
Tubes
Fuel
Injection Tubes
Over
Flow Lines
Fabricated
Tube Assemblies
Cross
Members
Flexible
Hoses
Fuel
Hose Assemblies
Radiator
Hoses
Brake
Hose Assemblies
Hyd.
High Pressure Hose Assemblies
Vacuum
& Heating Hose Assemblies
Air
Starting System Hoses
Automotive
Fuel System
Related
Components and Sub- Assemblies
Hyd.
Circuits or Industrial Equipment and Railway
Traction
Locomotives
Milestones
1969
Established as a
partnership firm and started assembling full hoses in a small area (30 sq. mtr).
1970
Supplies to Mahindra & Mahindra Ltd.
Commenced as O.E.
1971
Supplies to
Kirloskar Oil Engines Ltd.
Started as O.E.
1972
Supplies to Telco as O.E.
Supplies to Escorts as O.E.
1978
Rubber processing facilities for manufacture of rubber hoses.
1979
Established facilities for manufacture of fuel injection pipes.
1982
Manufacturing of F.I. pipes started in bulk.
1984
Supplies of brake tubes & fuel lines to Maruti Udyog Ltd. started.
1985
Numerically controlled bending machines installed for bending larger
diameter pipes
1989
Collaboration with Meiji Rubber for brake hoses
Supply of fuel injection tubes for Railway Traction Locomotives
1990
Caterpillar fuel injection tube development started.
1992
Commenced manufacture of high pressure hose
assemblies at new unit at plot 94, sector-25,
ISI certification obtained for brake hoses
1995
Started activities for ISO 90002 accreditation
Adopted Cummins supplier improvement programme.
1996
Supplies to Tata Cummins commenced
Improved facilities for radiator/bend hoses installed.
New plant for fuel injection pipes at sector 27-c, completed.
New plant at plot no. 83, sector-25, started.
1997
ISO 9002 accreditation.
Self certification for auto Malt Telco, Pune
Technical collaboration with
1998
Imperial auto industries becomes public limited
Production started at pune plant
Joint venture with Eagle Picher Fluid Systems Ltd. U.K
Started activities for QS-9000.
1998
Imperial auto industries becomes public limited
Production started at pune plant
Joint venture with Eagle Picher Fluid Systems Ltd. U.K
Started activities for QS-9000.
1999
Target exports to developed countries
2000
QS-9000 accreditation for all plants (Plant-I,II,III,IV).
Global supplier to JCB, John-Deree & Cummins
2003
Certificate awarded ISO-14001
2004
Certification TS-16949
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.55 |
|
|
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.55.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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 |
|