MIRA
INFORM REPORT
|
Report Date : |
01.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
TORSION PRODUCTS LIMITED |
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Registered Office : |
Uppal Road, Hyderabad - 500 007, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.04.1964 |
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Com. Reg. No.: |
01-992 |
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CIN No.: [Company
Identification No.] |
L31903AP1964PLC000992 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDT00013G |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturers of parts and accessories for motor vehicles
and their engines |
RATING &
COMMENTS
|
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 21000 |
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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 an established company having slightly moderate financial
position. Trade relations are fair. 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 : |
Uppal Road, Hyderabad - 500 007, Andhra
Pradesh, India |
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Tel. No.: |
91-40-27172843, 27153988 |
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Fax No.: |
91-40-27150271 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Challa Rambhupal Reddy |
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Designation : |
Director |
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Address : |
607 Road No. 57, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh,
India |
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Date of Birth/Age : |
07.12.1928 |
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Date of Appointment : |
09.04.1964 |
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Name : |
Mr. Yarlagadda Ankineedu |
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Designation : |
Director |
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Address : |
15 Huzur Road, Coimbatore – 641018, Tamilnadu, India |
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Date of Birth/Age : |
15.08.1939 |
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Date of Appointment : |
05.04.1965 |
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Name : |
Mr. J Vikramdev Rao |
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Designation : |
Director |
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Address : |
Venkatrambagh, Begumpet, Hyderabad – 500016, Andhra Pradesh,
India |
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Date of Birth/Age : |
07.08.1942 |
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Date of Appointment : |
13.08.1993 |
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Name : |
Mr. M K Balakrishnan |
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Designation : |
Director |
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Address : |
Plot No. 35, Seshachala Colony, Secunderabad, Hyderabad – 500026,
Andhra Pradesh, India |
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Date of Birth/Age : |
14.12.1930 |
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Date of Appointment : |
25.12.1996 |
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Name : |
Mr. Challa Satish Reddy |
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Designation : |
Director – Operation |
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Address : |
Plot No. 74, 1st Floor, Sikh Village Tabbund, Secunderabad,
Hyderabad - 500003, Andhra Pradesh,
India |
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Date of Birth/Age : |
07.12.1966 |
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Date of Appointment : |
25.12.1996 |
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Name : |
Mr. Challa Venkatram Reddy |
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Designation : |
Director |
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Address : |
607 Road No. 57, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh,
India |
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Date of Birth/Age : |
05.03.1971 |
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Date of Appointment : |
25.12.1996 |
SHAREHOLDING
PATTERN
|
Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Public Financial Companies |
|
16.00 |
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Bodies corporate |
|
34.00 |
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Directors or relatives of directors |
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46.00 |
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Other top fifty shareholders |
|
4.00 |
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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 : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Commercial Vehicles Springs on Single Shift Basis |
MT |
1500 |
1500 |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
About 150 |
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Bankers : |
United Bank of
India M G Road,
Secunderabad – 500003v |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya and Company Chartered Accountants |
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Address : |
403 and 404, 4th Floor, Golden Green Apartments, Irrum
Manzil Colony, Hyderabad – 500082, Andhra Pradesh, India |
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Associates/Subsidiaries : |
NIL |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
531995 |
Equity Shares |
Rs. 10/- each |
Rs. 5.320
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 |
5.320 |
5.320 |
5.320 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.555 |
0.555 |
0.555 |
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4] (Accumulated Losses) |
[0.645] |
[2.321] |
[4.192] |
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NETWORTH |
5.230 |
3.554 |
1.683 |
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LOAN FUNDS |
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1] Secured Loans |
8.911 |
9.027 |
7.526 |
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2] Unsecured Loans |
3.150 |
3.150 |
2.000 |
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TOTAL BORROWING |
12.061 |
12.177 |
9.526 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
17.291 |
15.731 |
11.209 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.642 |
0.843 |
1.011 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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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 |
7.374
|
8.650 |
12.139 |
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Sundry Debtors |
9.359
|
8.273 |
4.910 |
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Cash & Bank Balances |
2.591
|
0.937 |
0.184 |
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Loans & Advances |
2.905
|
2.255 |
2.030 |
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Total
Current Assets |
22.229
|
20.115 |
19.263 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
5.180
|
5.227 |
9.065 |
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Provisions |
0.400
|
0.000 |
0.000 |
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Total
Current Liabilities |
5.580
|
5.227 |
9.065 |
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Net Current Assets |
16.649
|
14.888 |
10.198 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
17.291 |
15.731 |
11.209 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
74.018 |
69.704 |
52.407 |
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Other Income |
1.656 |
1.656 |
1.758 |
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Total Income |
75.674 |
71.360 |
54.165 |
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Profit/(Loss) Before Tax |
2.076 |
1.871 |
0.200 |
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
NA |
11.009 |
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Expenditures : |
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Raw Material Consumed |
44.176 |
39.503 |
29.229 |
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Consumption of stores and spares parts |
18.589 |
14.998 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[1.122] |
2.455 |
[0.968] |
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Salaries, Wages, Bonus, etc. |
4.734 |
5.262 |
5.851 |
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Managerial Remuneration |
0.486 |
0.492 |
0.000 |
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Payment to Auditors |
0.040 |
0.040 |
0.000 |
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Interest |
1.882 |
2.062 |
1.753 |
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Insurance Expenses |
0.095 |
0.105 |
0.000 |
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Power & Fuel |
4.574 |
4.380 |
0.000 |
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Depreciation & Amortization |
0.144 |
0.192 |
0.240 |
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Other Expenditure |
0.000 |
0.000 |
17.960 |
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Total Expenditure |
73.598 |
69.489 |
54.065 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Net Profit Margin (PBT/Sales) |
(%) |
2.80
|
2.68 |
0.38 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
9.08
|
8.93 |
0.99 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.53 |
0.12 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.37
|
4.90 |
11.05 |
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Current Ratio (Current Asset/Current Liability) |
|
3.98
|
3.85 |
2.12 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
TORSION PRODUCTS LIMITED |
|
Presented By |
Mr. C Rambhupal
Reddy, Managing Director |
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1) Date and description of instrument creating the change |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 9.000 Millions |
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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 |
Hypothecation of
Raw Materials, Work in process, finished goods, book debts, stores goods in
transit, goods in ware house and movable assets, plant and machinery |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Nil |
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5) Name and Address and description of the person entitled to the charge. |
United Bank of
India M G Road,
Secunderabad – 500003 |
|
6) Date and brief description of instrument modifying the charge |
18.08.2004 Worth of Rs.
12.000 Millions as follows :
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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. |
Enhanced to Rs.
12.000 Millions form Rs. 9.000 Millions |
Fixed Assets
- Land
- Building
- Plant and
Machinery
- Electrical Installations
- Furniture and Fixture
- Office Equipments
- Air Conditioners
- Electrical Equipments
- Vehicles
- Computers
As Per
Website
Subject was
established in the year 1964 with five years contractual technical
collaboration from M/s J Brockhouse Co Limited, U.K.
Over the last 40 years the company
has developed into one of the leading manufacturers of leaf springs and the
company’s reputation is carried with a commitment - “TO CARRY ANY LOAD ON ANY ROAD”.
The company is headed by Mr. C
Satish Reddy, B.E., M.B.A. (U.S.A),
Director (Operations) and is ably supported by a core team of professionals.
The present turnover of the company is about US $ 1.5 million (Rs 7 crores).
The promoters and the management at Torsion believe that the most
valuable assets earned is the goodwill of original equipment manufacturers, the
trading community and users, through the everlasting sincere efforts of the
employees in their respective fields of operation.
The factory at Hyderabad,
almost centrally located on the Indian map, is one of the largest facilities in
India, manufacturing a wide range of Laminated Leaf Springs for all types of
commercial vehicles. Their company is a
original equipment (O.E.) supplier to Mahindra & Mahindra.
Apart from Mahindra & Mahindra their
company manufactures a wide range of leaf springs for replacement fitment on
Ashok Leyland, TATA and many other vehicles.
In addition their Leaf Spring Assemblies and Loose
Leaves are continuously exported to Australia, U.K. and Sri Lanka. They have also designed and supplied
Assemblies for special purpose vehicles used by the Indian Army through BEML,
Mysore and Ordnance factory, Medak as well as to other fabricators in the
private sector.
The plant layout has
been designed with a built-in process mechanism to check stagewise and
operationwise quality requirement right from raw material to end product.
The company is ISO 9001:2000 certified by KPMG.
Location:
Their
factory is located on the Ring Road connected to the Highway and well within
the city of Hyderabad, just 9 K M from the city Airport.
Area:
Total area available for the company is 22,000 Sq.mts and owned by promoters of
the company.
Capacity:
Plant & Machinery available with them can produce in excess of 5000 MT of
Leaf Springs & Assemblies per annum.
Product Range:
They
are manufacturing Laminated Leaf Springs from as low as 50mm x 6mm Cross
section to as high as 120mm x 20mm Cross section.
Capability:
Company has the flexible production skills necessary to turn out a
comprehensive range of auto Leaf Springs and ability to meet the quality
specifications of buyers worldwide.
Marketing:
All the company’s products are distributed by the joint promoter of the company,
TVS Group, in the domestic replacement market. TVS Group comprising of Madras
Auto Service (Chennai), T V Sundram Iyengar & Sons Limited (Madurai),
Sundaram Motors (Chennai) and India Motor Parts & Accessories Limited
(Chennai) have regional offices throughout the country and distribute a wide
range 60 auto spares and components to more than 25,000 dealer points through
130 branch offices.
Apart from marketing
through dealer network, company’s marketing team directly caters to the
requirements of OEM’s, Institutions like Defence, Road Transport Corporations
& Large Fleet Owners. Requirements of overseas customers are directly met
by the company for the past 15 years.
Range of Products
·
Torsion’s
product portfolio includes the complete range of laminated leaf springs for all
types of commercial vehicles.
·
Torsion
has the expertise and experience to meet the wide range of quality
specifications of buyers worldwide.
·
Laminated
leaf springs from as low as 50mm * 6mm cross section to as high as 120mm * 20mm
cross section are in Torsion’s manufacturing range.
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 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.39.67 |
|
UK Pound |
1 |
Rs.81.78 |
|
Euro |
1 |
Rs.58.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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. |
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 |
|