MIRA
INFORM REPORT
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Report Date : |
06.08.2007 |
IDENTIFICATION DETAILS
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Name : |
AUTOMOTIVE AXLES
LIMITED |
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Registered Office : |
Hootgalli
Industrial Area, Off |
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Country : |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation: |
21.04.1981 |
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Com. Reg.No. |
08-4198 |
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CIN No.: [Company
Identification No.] |
U51909KA1981PLC004198 |
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TAN NO.: |
BLRA04953E |
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Legal Form : |
Public Limited
Liability company. The company’s shares are listed on the Stock Exchange |
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Line of Business : |
Manufacturing and
Marketing of Axle Housing, Complete Axles, Gears and Brake Assemblies |
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RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 3800000 |
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Status : |
Good |
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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, respectable and resourceful industrialists. Their trade
relations are reported as fair. General financial position of the company is
satisfactory. Payments are reported as usually correct and as per
commitments. The company can
be considered for any normal business dealing at usual trade terms and conditions. |
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LOCATIONS
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Registered Office/ Factory : |
Hootgalli
Industrial Area, Off |
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Tel. No.: |
91-821-2402582-86
(5 lines) |
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Mobile No.: |
91-821-2402451 |
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Email Id : |
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Websites: |
DIRECTORS
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Name : |
Mr. Ashok Rao |
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Designation : |
President & Wholetime Director |
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Name : |
Mr. B.C.
Prabhakar |
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Designation : |
Director |
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Name : |
Ms. B.N. Kalyani |
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Designation : |
Chairman |
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Name : |
Mr. Blake G.
Palmer |
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Designation : |
Director |
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Name : |
Mr. Bradley A.
Arnold |
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Designation : |
Director |
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Name : |
Mr. P.C.
Bhalerao |
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Designation : |
Director |
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Name : |
Mr. P.M.
McNamara |
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Designation : |
Director |
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Name : |
Mr. Pratap
Bhogilal |
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Designation : |
Director |
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Name : |
Mr. S.S. Marathe |
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Designation : |
Director |
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Name : |
Mr.
Sabareeshan C. K. |
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Designation : |
Executive
Director (finance) and Company Secretary |
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Name : |
Mr.BB Hattarki |
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Designation : |
Director |
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Name: |
Mr,Rakesh Sachdev |
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Date of Birth: |
21.02.1956 |
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Address: |
3326, |
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Designation |
Director |
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Date of Appointment: |
30.04.2007 |
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Name: |
Mr.Carsten Joachim Reinhardt |
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Date of Birth: |
07.09.1967 |
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Address: |
1245, United State of |
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Date of Appointment: |
30.04.2007 |
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Designation: |
Director |
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Name : |
Mr.Larry Allen Dowers |
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04.07.1948 |
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Address: |
243, Grosse Pointe 48230 |
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Designation: |
Director |
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Name: |
Mr.Patrick Micheal McNamara |
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Address: |
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Designation: |
Director |
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Name: |
Mr.Bhalachandra B Hattarki |
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Address:’ |
Plot No. D – 4, S.No. 211/2 ( Part ), PP 321 B, Kalyani Nagar, Yerwada, Pune - 411014 |
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Date of Appointment: |
18.01.2006 |
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Designation: |
Director |
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Name: |
Mr.Blake Gerald Palmer |
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Address: |
4161, Bixiana Crt., |
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Date of Appointment: |
18.01.2006 |
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Designation: |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters Bodies |
10,735,081 |
71.04 |
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Corporate |
362,717 |
2.40 |
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Financial
Institutions / Banks |
366 |
0.00 |
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Overseas Body
Corporate |
914,467 |
6.13 |
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Non Resident Indians
/ OCB |
60,005 |
0.32 |
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Mutual Fund |
1,704,367 |
11.28 |
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Public |
1,334,972 |
8.83 |
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Total |
15,111,975 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of Axle Housing, Complete Axles, Gears and Brake Assemblies |
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Products : |
Product Item Code
No. 870839.00 (ITC CODE) Product
Description Brakes-Brake Parts Item Code
No. 870839.00 (ITC CODE) Product Description Other
parts |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Axle Housing |
Nos. |
109200 |
90464 |
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Complete Axles |
Nos. |
83000 |
65000 |
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Brake Assemblies |
Nos. |
270000 |
Nil |
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Gear Sets |
MT |
4775 |
3147.04@ |
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GENERAL INFORMATION
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Customers : |
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No. of Employees : |
2000 |
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Bankers : |
Ř
State Bank of Ř
Punjab National Bank Ř
State Bank of Ř
Bank of Ř
ICICI Bank Limited Ř
BNP Paribas Ř
IDBI Bank Ltd Ř
Export Import Bank of Ř
HDFC Bank Ltd |
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Facilities : |
SECURED LOANS
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Banking
Relations : |
Good |
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Auditors : |
Deloitte Haskins
& Sells (Chennai) Chartered
Accountants |
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Associates/Subsidiaries : |
NA |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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23,000,000 |
Equity Shares |
Rs.10/- each |
Rs.230.000 millions |
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2,000,000 |
Preference Shares |
Rs.10/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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15,111,975 |
Equity Shares fully paid up |
Rs.10/- each |
Rs. 151.119 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
151.100 |
151.110 |
151.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
800.300 |
590.800 |
437.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
951.400 |
741.900 |
588.700 |
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LOAN FUNDS |
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1] Secured Loans |
371.700 |
468.000 |
260.600 |
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2] Unsecured Loans |
174.700 |
143.800 |
189.700 |
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TOTAL BORROWING |
546.400 |
611.800 |
450.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1497.800 |
1353.700 |
1039.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1150.300 |
722.300 |
560.600 |
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Capital work-in-progress |
91.800 |
118.700 |
108.100 |
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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 |
580.700 |
467.400 |
460.100 |
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Sundry Debtors |
368.200 |
639.000 |
382.700 |
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Cash & Bank Balances |
25.300 |
51.600 |
46.600 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
554.000 |
546.000
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371.000 |
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Total
Current Assets |
1528.200
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1704.000 |
1260.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
679.000 |
570.300 |
476.900 |
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Provisions |
593.500 |
621.000 |
413.200 |
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Total
Current Liabilities |
1272.5
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1191.300 |
890.100 |
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Net Current Assets |
255.700
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512.700 |
370.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1497.800 |
1353.700 |
1039.000 |
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PROFIT
AND LOSS ACCOUNT
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Particulars |
30.09.2006 |
30.09.2005 |
30.09.2004 |
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Sales Turnover |
5242.000 |
4024.200 |
2917.600 |
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Other Income |
42.300 |
65.200 |
74.800 |
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Total Income |
5333.700 |
4050.5 |
3071.700 |
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Profit/Loss for the year |
648.400 |
550.000 |
357.500 |
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Provision for Tax |
214.900 |
181.400 |
131.300 |
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Profit / Loss after tax |
433.500 |
368.600 |
226.200 |
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Total Expenditure |
6630.5 |
5150.5 |
3786.7 |
QUARTERLY RESULTS
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PARTICULARS |
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31.12.2006 [1st Quarter] |
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Sales Turnover |
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1453.400 |
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Other Income |
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13.400 |
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Total Income |
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1466.800 |
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Total Expenditure |
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1203.000 |
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Operating Profit |
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263.800 |
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Interest |
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18.500 |
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Gross Profit |
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245.300 |
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Depreciation |
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40.300 |
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Tax |
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63.500 |
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Reported PAT |
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135.600 |
200612 Quarter 1 --------------- Notes Other Income includes
Other Income Rs 0.14 million Exchange Fluctuation Rs 13.28 million Expenditure Includes
(Increase)/Decrease in stock in Trade Rs (143.19) million Consumption of Raw
Materials Rs 1131.11 million Staff Cost Rs 65.11 million Other Expenditure Rs
149.91 million Tax Includes Provision for Current Tax Rs 63.50 million Deferred
Tax - Liability / (Assets) Rs 5.96 million EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 04
Complaints disposed off during the quarter 04 Complaints unresolved at the end
of the quarter Nil 1. These working results were taken on record by the Board
of Directors at their meeting held on January 12, 2007. 2. Provision for
Current Tax includes Fringe Benefit Tax of Rs 0.45 million (Previous year Rs
0.80 million) for the quarter. 3. Previous period figures have been regrouped
wherever necessary.
KEY RATIOS
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PARTICULARS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
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Debt-Equity Ratio |
0.68 |
0.80 |
0.67 |
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Long Term Debt-Equity Ratio |
0.53 |
0.59 |
0.42 |
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Current Ratio |
1.19 |
1.26 |
1.21 |
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TURNOVER RATIOS |
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Fixed Assets |
3.06 |
2.96 |
2.48 |
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Inventory |
10.00 |
8.68 |
8.31 |
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Debtors |
10.41 |
7.88 |
7.53 |
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Interest Cover Ratio |
12.14 |
24.21 |
33.80 |
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Operating Profit Margin(%) |
16.09 |
16.95 |
16.04 |
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Profit Before Interest And Tax Margin(%) |
13.48 |
14.26 |
12.63 |
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Cash Profit Margin(%) |
10.88 |
11.86 |
11.17 |
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Adjusted Net Profit Margin(%) |
8.27 |
9.16 |
7.75 |
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Return On Capital Employed(%) |
49.56 |
47.95 |
39.29 |
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Return On Net Worth(%) |
51.20 |
55.40 |
40.32 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The company was
promoted as a joint venture by the Kalyani group and Rockwell International Corporation,
It came out of the
purview of the Sick Industrial Companies Act, 1985. But, the very next year,
its net worth started to erode. So, in 1994-95, it embarked on a restructuring
of the capital in consultation with financial institutions. The company came
out with a rights issue in February 1995 to part-finance an expansion project
to increase the manufacturing capacity of axles and brakes.
During 1996-97, the expansion of Axles capacity has been completed and of
brakes was put on hold in view of down turn in the market.
The company managed to achieve an impressive 20% growth in sales during the
year 1999-2000. As the company is continuing to pursue its efforts on
increasing penetration into other domestic and export market opportunities,
Meritor HVS (
Automotive Axles
Limited was promoted as a joint venture in 1981, between the Kalyani Group and
Rockwell International Corporation,
The Plant was set
up at a cost of Rs. 303 million, which was financed through term loans of Rs.
218.300 million, an Equity issue of Rs. 82.500 million and the balance was
financed out of Central subsidies (Rs. 1.5 million) and deferred credit (Rs. 0.7
million). The company entered the capital market with an issue of 16,50,000
Equity Shares at par in July, 1983 and the Issue was oversubscribed 8.03 times.
2002
-Appoints Mr Ashok
Rao as President & Wholetime Director of Automotive Axles.
INDUSTRY STRUCTURE
& DEVELOPMENTS:
The
Commercial Vehicle segment of the Automotive Industry is undergoing a
structural change mainly driven by the level of Infrastructure related projects
ongoing in the country.
The Government's initiatives on key infrastructure sectors, such as
Roads, Ports, Power and steel capacity expansion, have continued to drive the
demand for Multi-Axle Vehicles and, hence, for your company's products. A
recent development in the CV segment is the enforcement of overload
restrictions that has resulted in further growth in demand for multi-axle
vehicles, and consequentially, the growth of your company's performance. This
has encouraged entry of other OEMs such as Eicher Motors, Asia Motor Works,
& Force Motors into the multi-axle segment of the CV market and is already
driving the demand for heavier axles that have already been tried out on
their new vehicles.
One of the more recent developments is the ownership structure of some of
the upcoming OEMs. The strategy seems to be to partner with some the well known
MNC Truck Manufacturers in the world. This would auger well for the growth of
your company as its products are well known to these MNC Truck manufacturers
most of whom are customers of Arvin Meritor.
The Company still retains its pre-eminent position as the largest independent
manufacturer of Drive Axle Assemblies for Commercial Vehicles in the country,
apart from the in-house capabilities with the Original Equipment Manufacturers
such as Telco and Ashok Leyland, and continues to be the single source for
Drive Axle assemblies for certain Military application.
DOMESTIC:
As a result of the unprecedented growth in the multi-axle
vehicles segment, your company's turnover reached the highest ever, during the year
under report, representing an improvement of 23.78 % over last year.
Export:
The
Company is addressing all exports through Meritor HVS (
Opportunities
& Threats
Domestic:
The
buoyant demand for multi-axle vehicle is encouraging and would sustain the
growth rate achieved during the year under report. Besides this, the emerging
trend shows increasing preference by OEMs for heavier trucks that offer more
cost efficient operating economics. Anticipating this, your company had
initiated the development of the bigger axle models that have been approved by
existing as well new customers. The opportunity to broad base the customer
portfolio is also better than ever before.
There is however the threat of not being able to meet the customers'
requirement on time and this could encourage competition and threaten our
leadership position in the addressed market. Your company is however taking
appropriate measures to cope with the increasing demand policies, adequacies of
internal controls and the audit findings on the various segments of the
business. M/s. Price Waterhouse Coopers Pvt. Ltd., perform the internal audit
function.
Human
Resources:
Your company considers its
human resource as the most valuable asset and, recognizing this, devotes
a considerable part of its time and resource in motivation, training & development
of its employees in various traits, apart from job related skills.
Fixed Assets :-
Land-Freehold
Building
Plant &
Machinery
Furniture &
Office
Equipment
Vehicles
Assets held for
disposal
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Corporation identity number or foreign company registrations number of
the company |
U51909KA1981PLC004198 |
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Name of the company |
AUTOMOTIVE AXLES LIMITED |
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Address |
Hootagalli
Industrial Area, Off |
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This Form is for |
Modification of charge |
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Type of Charges |
Book Debts Movable Property ( not being Pledge) Floating Charge. |
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Particular of the charge holder
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BNP Paribas 3rd floor, land 21/15, Email - Id
anurag.oberoi@asia.bnpparibas.com |
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Nature or description of the instrument creating charge |
The Agreement for Credit Facilities and
Hypothecation dated 27th December 2006, executed by Automotive
Axles Limited ( the Borrower) in favour of BNP Paribas ( Coordinating Bank, representing all the
participating bank as per attachment 3 ) the scanned copy of which is
attached as attachment1. |
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Date of the instrument creating charge |
27.12.2006 |
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Amount Secure by the charge |
530.000 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate
of Interest: The Rate of Interest payable by the
borrower to the participating banks shall be at such rate as may be agreed
between the Borrower and the Participating banks from time to time. Terms
of repayment: Repayment on demand together with all
interest thereon at the agreed rates as per the agreement Margin: Minimum margin of 25% in respect of all
goods and 25%in respect of all book debts. Extent
and Operation of Charge: This charge shall operate as a continuing
security by way of a pari passu first charge over the borrower current assets
for ther due repayment by the borrower to the coordinating and participating
banks of the loan of Rs. 530.000 millions covering Rs. 300.000 millions as
Fund Based and Rs.230.000 millions as non fund based , together with payment
of interest, compound interestand other charges and expenses, The charge
shall rank paripassu on all participating banks. |
Press Clipping
MERITOR
TO PUMP IN $30 Million into Automotive Axles
CHENNAI, December
12: Meritor Automotive Inc is planning to pump in $30 million into Automotive
Axles Limited, a joint venture with the Kalyani group, over the next five
years.
Prakash
Mulchandani, president of Meritor's worldwide truck and trailer systems said on
Wednesday that
Automotive Axles
manufactures rear axle aggregates, including commercial vehicle brake systems
for Ashok Leyland, Telco and Daewoo Motors. Since Meritor is a supplier for
Iveco (which gives the knowhow to Ashok Leyland for its range of vehicles)the
company realised the importance of being able to supply directly to
Although the truck
industry is not doing well as of now, Ashok Leyland's chairman RJ Shahaney said
the bearish phase was temporary and the company would go ahead with its
expansion plans as announced earlier. Consequently, Automotive Axles will also
expand the capacity from 36,000 axles to 80,000 axles and from 260,000 brakes
to 400,000 brakes.
Meritor, one of the
largest suppliers of truck axles, trailer axles, truck brake systems in the
heavy commercial vehicles, also supplies to Volvo and Renault overseas. The
company is also planning to negotiate for supplies with them in
Meritor has
acquired another company in
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.40.58 |
|
|
1 |
Rs.81.85 |
|
Euro |
1 |
Rs.55.7 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
62 |
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 |
|