MIRA INFORM REPORT
|
Report Date : |
08.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
INDIA PISTONS LIMITED |
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Registered Office : |
Huzur Gardens,
Sembiam, Chennai - 600 011, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
30.07.1949 |
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Com. Reg. No.: |
18-951 |
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CIN No.: [Company Identification No.] |
U35999TN1949PLC000951 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CHEI00016C |
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Legal Form : |
A Closely held
Public Limited Liability Company. |
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Line of Business : |
Manufacturer,
Importers and Distributors of Dyes Stuff, Fine Chemicals and Pigments. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
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 3000000 |
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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 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 : |
Huzur Gardens, Sembium, Chennai - 600 011, Tamilnadu, India. |
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Tel. No.: |
91-44-25375871 |
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Fax No.: |
91-44-25375095 |
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E-Mail : |
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Website : |
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Corporate Office : |
24, College Road,
Nugambakkam, Chennai - 600 006, Tamilnadu, India. |
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Factory 1 : |
A -4, Industrial Estate, Maraimalai Nagar, Chennai – 603 209,
Tamilnadu, India |
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Tel. No.: |
91-44-26729264 / 4114-452383 |
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Fax No.: |
91-44-25375095 / 4114 - 452206 |
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Factory 2 : |
21/4, Iii Cross, Sudhama Nagar, Bangalore – 560 027, Karnataka, India. |
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Tel. No.: |
91-80-2221717 |
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E-Mail : |
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Factory 3 : |
Ring Blank Unit, Sengandrum Industrial Area, Melrosapuram,
Singaperumal Koil – 603 204, India. |
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Tel. No.: |
91-4114-464372 / 64191 |
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Fax No.: |
91-4114-64372 |
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Factory 4 : |
40-6-30, Next To Hotel Khandari Int., Venkateswarapuram P. O.,
Vijayawada – 520 010, Andhra Pradesh, India. |
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Tel. No.: |
91-866-476484 |
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Fax No.: |
91-866-470207 |
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E-Mail : |
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Branches : |
·
Kolkata ·
Raipur ·
Pune ·
Mumbai ·
Ahmedabad ·
Kanpur ·
Indore ·
Jaipur ·
Jalandhar ·
New Delhi |
DIRECTORS
|
Name : |
Mr Anantharamakrishnan Sivasailam |
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Designation : |
Chairman |
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Address : |
Sudharma Old No. 80, New No. 128, Dr5. Radhakrishnan Salai, Mylapore –
600 004, Chennai, Tamil Nadu |
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Date of Birth/Age : |
24.08.1934 |
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Date of Appointment : |
09.09.1966 |
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Name : |
Mr N. Venkataramani |
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Designation : |
Managing Director |
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Name : |
Mr. Anantharamakrishnan
Krishnamoorthy |
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Designation : |
Director |
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Address : |
Kalyani Mahal, No 1, Sivaswamy Street, Mylapore – 600 004, Tamil Nadu,
India |
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Date of Birth/Age : |
26.09.1937 |
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Date of Appointment : |
18.11.1981 |
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Name : |
Mr. Dr.R.Mahadevan |
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Designation : |
Director |
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Name : |
Mr. Dr.B.L.Ruddy |
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Designation : |
Director |
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Address: |
Orchard House, Leamington Road, Princethrope, Warwickshire - 239, Cv
23 9 Pu, United Kingdom |
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Name : |
Mr. Dr.N.Gowrishankar |
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Designation : |
Director |
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Name : |
Mr. Narayanaswamy Venkataramani |
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Designation : |
Director |
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Address : |
Lakshmi No. 12, Boat Club Road, Chennai – 600 028, Tamil Nadu, India |
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Date of Birth/Age : |
09.12.1939 |
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Date of Appointment : |
01.10.1975 |
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Name : |
Mr. Kariangal Vasanth Shetty |
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Designation : |
Director |
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Address : |
10, 16th Avenue Harrington Road, Chetput, Chennai – 600
031, Tamil Nadu |
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Date of Birth/Age : |
04.02.1934 |
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Date of Appointment : |
20.09.1985 |
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Name : |
Mr. Rama Murthy Mahadevan |
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Designation : |
Director |
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Address : |
Plot No. 918, Vi Avenue, Anna Nagar, Chennai – 600 040, Tamil Nadu,
India |
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Date of Birth/Age : |
05.02.1943 |
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Date of Appointment : |
05.10.1998 |
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Name : |
Mr. Anantharamakrishnan Venkatramani |
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Designation : |
Director |
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Address : |
12 Boat Club Road, Chennai – 600 028, Tamil Nadu, India |
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Date of Birth/Age : |
19.03.1968 |
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Date of Appointment : |
19.12.2005 |
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Name : |
Mr. Narayanaswamy Gowrishankar |
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Designation : |
Director |
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Address : |
1, 8th Trust Cross Street, Mandavelipakkam, Mylapore – 600
028, Chennai, Tamil Nadu |
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Date of Birth/Age : |
12.04.1944 |
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Date of Appointment : |
23.05.2006 |
KEY EXECUTIVES
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Name : |
Mt. A. Krishnamoorthy |
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Designation : |
Chairman |
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Name : |
Mr. N. Venkataramani |
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Designation : |
Member |
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Name : |
Mr. K.V. Shetty |
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Designation : |
Member |
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Name : |
Mr. Ranganathan Mukundan |
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Designation : |
Associate Vice President – Finance And Secretary |
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Address : |
9, Crescent Street, Seethamma Colony, Alwarpet – 600 018, Chennai,
Tamil Nadu |
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Date of Birth/Age : |
24.09.1953 |
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Date of Appointment : |
15.02.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Name of Shareholders |
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No of Shares |
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Simpson and
company Limited |
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4059948 |
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A Siva Sailam Esq |
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10 |
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Associated Printer
Madras Private Limited |
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12 |
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AE Limited |
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1740000 |
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Mr. A
Krishnamoorthy Esq |
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10 |
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Mr. J Sankaran Esq |
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10 |
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Mr. S
Srinivasaraghvan |
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10 |
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Total |
5800000 |
Equity Shares Breakup (Percentage of Total Equity):
|
Sr No. |
Category |
Percentage |
|
1 |
Foreign holdings (Foreign institutional
investor(s), Foreign companie(s), Foreign financial institution(s), Non – Resident
Indian(s) or Overseas corporate bodies or others |
30.00 |
|
2 |
Bodies corporate |
70.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer,
Importers and Distributors of Dyes Stuff, Fine Chemicals and Pigments. |
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Products: |
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Holding Company: |
Simpson and Company
Limited |
PRODUCTION STATUS as on 31.03.2005:-
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Particulars |
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Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Pistons |
|
3600000 |
4600000 |
4147387 |
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Pistons rings |
|
15000000 |
15000000 |
13315667 |
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Gudgeon pins |
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3000000 |
2750000 |
3854204 |
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Cylinder liners |
|
450000 |
700000 |
--- |
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Circlips |
|
3500000 |
3500000 |
--- |
GENERAL
INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
· Central Bank of India. Corporate Finance Branch, Addison Buildings,
Chennai – 600 002, India. · State Bank of India Address: 64, Greams Road, Chennai – 600 006, Tamil Nadu, India |
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Financial Institutions: |
M/S Sundaram
Finance Limited Address: No,21,
Patullos Road, Chennai – 600 002, Tamil Nadu, India |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
· M/s R. G. N. Price and Company Chartered Accountant · Mr. S Krishnan Chartered Accountants Address: 861, Anna Salai, Chennai – 600
002, Tamil Nadu, India |
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Associates/Subsidiaries : |
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Holding Companies: |
(Ultimate Holding Company) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity |
Rs 10/- each |
Rs.100.000 millions |
|
500000 |
Redeemable Cumulative Preference |
Rs. 100/- each |
Rs. 50.000 millions |
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|
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Total |
Rs.150.000
millions |
Issued, Subscribed and Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
5800000 |
Equity |
Rs. 10/-
each |
Rs.58.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
58.000 |
108.000 |
108.000 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves and Surplus |
670.789 |
627.615 |
611.300 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
728.789 |
735.615 |
719.300 |
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LOAN FUNDS |
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|
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1] Secured Loans |
542.675 |
534.778 |
523.100 |
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2] Unsecured Loans |
253.126 |
154.211 |
152.700 |
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TOTAL BORROWING |
795.801 |
688.989 |
675.800 |
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DEFERRED TAX LIABILITIES |
110.003 |
111.869 |
0.000 |
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TOTAL |
1634.593 |
1536.473 |
1395.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
821.941 |
805.350 |
740.100 |
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Capital work-in-progress |
28.541 |
29.233 |
26.400 |
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INVESTMENT |
130.140 |
122.574 |
133.900 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS and ADVANCES |
|
|
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Inventories |
487.424
|
441.070
|
365.900 |
|
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Sundry Debtors |
603.434
|
448.931
|
416.500 |
|
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Cash and Bank Balances |
23.977
|
12.132
|
12.900 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
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Loans and Advances |
154.119
|
162.050
|
192.600 |
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Total
Current Assets |
1268.954
|
1064.183 |
987.900 |
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Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
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Current Liabilities |
614.983
|
484.867
|
445.200 |
|
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Provisions |
0.000
|
0.000
|
48.000 |
|
Total
Current Liabilities |
614.983
|
484.867 |
493.200 |
|
|
Net Current Assets |
653.971
|
579.316 |
494.700 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1634.593 |
1536.473 |
1395.100 |
|
PROFIT and LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2054.537 |
2358.400 |
2378.200 |
|
|
Other Income |
51.520 |
57.400 |
52.300 |
|
|
Stock Adjustments |
0.000 |
66.400 |
11.200 |
|
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Total Income |
2106.057 |
2482.200 |
2441.700 |
|
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Profit/(Loss) Before Tax |
62.693 |
21.716 |
77.300 |
|
|
Provision for Taxation |
0.000 |
0.000 |
23.200 |
|
|
Profit/(Loss) After Tax |
62.693 |
21.716 |
54.100 |
|
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Exports Value |
259.462 |
259.497 |
291.625 |
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Imports : |
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|
|
|
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Raw Materials |
NA |
456.915 |
258.922 |
|
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Stores and Spares |
NA |
5.996 |
5.895 |
|
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Capital Goods |
NA |
66.042 |
78.434 |
|
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Others |
NA |
12.596 |
33.547 |
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Total Imports |
NA |
541.549 |
376.798 |
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Expenditures : |
|
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|
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Employee Cost |
0.000 |
0.000 |
305.400 |
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|
Manufacturing Expenses |
0.000 |
0.000 |
276.900 |
|
|
Managerial Remuneration |
8.785 |
7.719 |
|
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|
Administrative Expenses |
0.000 |
0.000 |
246.600 |
|
|
Raw Material Consumed |
1096.391 |
933.618 |
878.800 |
|
|
Increase / Decrease In Finished Goods, Work
In Progress |
[54.838] |
0.000 |
NA |
|
|
Salaries, Wages, Bonus, Etc. |
264.342 |
247.858 |
NA |
|
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Payment to Auditors |
0.907 |
0.650 |
NA |
|
|
Insurance Expenses |
10.189 |
6.221 |
NA |
|
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Power and Fuel |
200.190 |
196.504 |
185.800 |
|
|
Excise duty |
0.000 |
0.000 |
267.600 |
|
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Miscellaneous expenses |
0.000 |
0.000 |
46.200 |
|
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Interest |
53.363 |
38.383 |
63.700 |
|
|
Depreciation and Amortization |
113.702 |
105.719 |
93.400 |
|
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Other expenditure |
609.795 |
610.881 |
|
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Total Expenditure |
2302.826 |
2081.138 |
2364.400 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.97
|
0.87 |
2.21 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
3.05
|
0.92 |
3.25 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.95
|
1.14 |
4.40 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.02 |
0.10 |
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
1.93
|
1.59 |
1.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.06
|
2.19 |
2.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
The company was incorporated
on 30th July 1949 at Chennai in Tamilnadu having Company
Registration Number 951.
OPERATIONS
During the year under review, the Auto
industry sustained the pace of growth of the earlier years and production of
vehicles increased appreciably. Consequent to this, the Company was able to
achieve significant improvement in the volume of sales to Original Equipment
Manufacturers. The gains from this increase were, however, nullified by the
stagnation in the After Market where there was no resurgence of demand, which
continued to be low. As a result, the Company suffered a significant fall in
its After Market sales and there was no improvement in the volume of total
sales over the previous year.
The lack of improvement in the overall sales
combined with the steep increase in cost of critical inputs had a severe impact
on the profitability.
The Sales Turnover of the company for the year
under review was Rs.2358.4 millions and profit before tax was Rs.21.7 millions.
The company has already taken several
corrective steps aimed at cost reduction and has launched capex exercises for
capacity build up and production increases.
OUTLOOK
The outlook for the current year is bright as
there is no sign of any slackening in the pace of growth in the vehicles industry
and some improvement in the After Market is also expected. The sustained
investment for capex towards modernization, technology upgradation and quality
improvements has placed the company in a favourable position to take full
advantage of the increased demand in the O.E and Export segment. The company
has also intensified its marketing operations to Improve after Market sales.
SUBSIDIARY and ASSOCIATES
During the year under review IP Pins and
Liners performed well and has declared a Dividend of 30%.
IP Power Cylinder Systems Ltd. a wholly owned
subsidiary of the company continued to suffer losses due to lack of export
orders leading to complete erosion of its networth. Steps are being initiated
to merge IP Power Cylinder Systems with the Company.
IP Rings Ltd., promoted by the company, also
has performed well and had declared a dividend of 35% for the year ended 31st
March 2006. Their Associate Company, Bimetal Bearings Limited, has declared a
Dividend of 62.5% during the year under review.
FORM 8:-
|
Corporation identity number or foreign
company registrations number of the company
|
U35999TN1949PLC000951 |
|
Name of the company |
INDIA PISTON LIMITED |
|
Address |
Huzur Gardens, Sembium, Chennai - 600 011, Tamilnadu, India. |
|
This Form is for |
Creation of
charge |
|
Type of Charges |
Movable property
|
|
Particular of the charge holder |
State Bank Of
India Address: 64,
Greams Road, Chennai – 600 006, Tamil Nadu, India Email Id: kishore.p@sbi.co.in |
|
Nature or description of the instrument
creating charge |
Agreement of
hypothecation of goods and assets. |
|
Date of the instrument creating charge |
22.10.2007 |
|
Amount Secure by the charge |
Rs. 240.000
millions |
|
Brief of the principal terms and
conditions and extent and operation of the charge |
Rate of Interest: 11.6% Term of repayments: Repayable in 8
equal half yearly installments with a moratrorium period of 1 year Margin : 25% Extent and operation of the charge: Charge on the
machineries earmarked against this loan. |
|
Shorts particulars of the Property
charged |
List of
machineries enclosed to the hypothecation agreement situated at the factory
premises. |
|
Name of the company |
INDIA PISTON
LIMITED |
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|
Presented
By |
M/S Sundaram Finance Limited, No. 21, Patullos Road, Chennai – 600 002,
India |
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|
1) Date and description of instrument creating the change |
Loan agreement dated 09.01.2000 Cont. No. AN 0250 |
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2) Amount secured by the charge/amount owing on the securities of
charge |
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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 |
On the security of 1 No. 2006 Model-Toyota-Corolla E No. 1ZZ2399384 CH
NO. ZZE1226827884 01 /06 |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Rs. 1.358
millions is repayable in 36 monthly installments as under:
Rate of interest :
7.79% 1st installment falls due on :03.02.2006 |
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|
5) Name and Address and description of the person entitled to the
charge. |
M/S Sundaram
Finance Limited Address: No,21,
Patullos Road, Chennai – 600 002, Tamil Nadu, India |
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· Petromechanical Equipments
· PS Engineering Works
· Quality Packs And Prints
· Rajalakshmi Engineering
· S M Industries
· Sri Rajeshwari Plastic Industries
· Steel Sharp Tools
· Sri Mogambikai Electrical
· Stuser Tools Private Limited
· Sri Raghavendra Tools
· Venu Engineering
· Visal Industries
· Texcel Tools
FIXED ASSETS:
- Land
(freehold and leasehold)
- Buildings
- Plant and
machinery
- Electrical
installation
- Furniture and
fittings
- Vehicles
CMT REPORT
(Corruption, Money Laundering and 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.39.38 |
|
UK Pound |
1 |
Rs.80.07 |
|
Euro |
1 |
Rs.57.66 |
SCORE and RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
|
63 |
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 and 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 and 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 |
|