MIRA
INFORM REPORT
|
Report Date : |
18.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
AXLES INDIA LIMITED |
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Registered Office : |
21, Patullos Road, Chennai – 600002, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.02.1981 |
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Com. Reg. No.: |
18-8630 |
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CIN No.: [Company
Identification No.] |
L27209TN1981PLC008630 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA00197B |
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PAN No.: [Permanent
Account No.] |
AAACA3173D |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacturer of axle housings and axle gear
assemblies. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1100000 |
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Status : |
Good |
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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
|
Registered Office : |
21, Patullos Road, Chennai – 600002, Tamilnadu, India |
|
Tel. No.: |
91-44-28522745 / 27163865 |
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Fax No.: |
91-44-28522745 / 27162229 |
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E-Mail : |
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Website : |
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Corporate Office : |
110, Nelson Manickam Road, Chateau Dampa Complex, Basement
Aminjikarai, Chennai – 600029, India |
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Tel. No.: |
91-44-3741303 / 3741174 / 3742691 |
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Fax No.: |
91-44-3741272 |
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Factory 1 : |
Sriperumbudur –
602105, Tamilnadu, India |
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Tel. No.: |
91 44 – 2716 2371 |
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Fax No.: |
91 44 – 2716 2229 |
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E-Mail : |
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Factory 2 : |
Cheyyar Taluk –
604410, Tamilnadu, India |
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Tel. No.: |
91 44 – 27242207 |
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Fax No.: |
91 44 – 27242163 |
DIRECTORS
|
Name : |
Mr. Ram S. |
|
Designation : |
Director |
|
Address : |
29 Prithivi Avenue, Chennai – 600018, Tamilnadu, India |
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Date of Birth/Age : |
27.04.1940 |
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Date of Appointment : |
18.02.1981 |
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|
Name : |
Mr. Ragavan K R |
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Designation : |
Director |
|
Address : |
23 I Avenue, Indira Nagar, Chennai – 600020, Tamilnadu, India |
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Date of Birth/Age : |
14.04.1930 |
|
Date of Appointment : |
05.09.1988 |
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|
Name : |
Mr. Ramabhadran T. |
|
Designation : |
Director |
|
Address : |
15 VI Street, Nandanam Extension, Chennai – 600035, Tamilnadu, India |
|
Date of Birth/Age : |
07.04.1939 |
|
Date of Appointment : |
28.11.1994 |
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|
Name : |
Mr. Bernard Nicholascole |
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Designation : |
Director |
|
Address : |
3029 Manley, Maumee, Ohio, USA
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|
Date of Birth/Age : |
06.11.1942 |
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Date of Appointment : |
24.06.2002 |
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|
Name : |
Mr. William Edward Hennessy |
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Designation : |
Director |
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Address : |
7361 Kings Park Road, Toledo, Ohio – 43617, USA |
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Date of Birth/Age : |
25.07.2005 |
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Date of Appointment : |
27.12.2002 |
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|
Name : |
Mr. Douglas Hodge |
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Designation : |
Director |
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Address : |
4412 Fleetwood Lana, Sylvaina, Ohio 43560, USA |
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Date of Birth/Age : |
12.06.1954 |
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Date of Appointment : |
24.08.2004 |
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|
Name : |
Mr. Normand Boisvert |
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Designation : |
Director |
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Address : |
4500 Dorr Street, Toledo, Ohio – 43615, USA |
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Date of Birth/Age : |
04.09.1951 |
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Date of Appointment : |
25.07.2005 |
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|
Name : |
Mr. Shrikant Kale |
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Designation : |
Director |
|
Address : |
B 12 Yugay Complex, 5 CTS 7 Erandawane, Pune – 411004, Maharashtra,
India |
|
Date of Birth/Age : |
12.06.1951 |
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Date of Appointment : |
24.08.2004 |
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Name : |
Mr. Kothandaraman R. |
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Designation : |
Director |
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Address : |
Flat F 1, Guru Karpagambigai No. 7, Sixth Main Road, Nanganallur,
Chennai – 600061, Tamilnadu, India |
|
Date of Birth/Age : |
10.04.1962 |
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Date of Appointment : |
13.08.1997 |
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|
Name : |
Mr. Ram Srivats |
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Designation : |
Director |
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Address : |
Old No. 29, New Ni. 57, Prithvi Avenue, Chennai – 600018, Tamilnadu,
India |
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Date of Birth/Age : |
20.02.1970 |
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Date of Appointment : |
29.06.2006 |
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|
|
|
Name : |
Mr. Dennis John Greenwald |
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Designation : |
Director |
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Address : |
3475 Shadywood Dr. Lambertville – 48144, USA |
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Date of Birth/Age : |
31.01.1947 |
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Date of Appointment : |
29.06.2006 |
SHAREHOLDING
PATTERN
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
47.58 |
|
Bodies corporate |
|
47.68 |
|
Other top fifty shareholders |
|
1.38 |
|
Other |
|
3.36 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of axle housings and axle gear
assemblies. |
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Products : |
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Exports : |
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Countries : |
North America |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
|
Rear Axie Housing |
Nos. |
|
180000 p.a. |
|
Rear Axie Gear Assemblies / Drive Heads |
Nos. |
|
10000 p.a. |
GENERAL
INFORMATION
|
Customers : |
Tata Motors Ashok Leyland Eicher Motors Swaraj Mazda Mahindra & Mahindra |
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|
|
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No. of Employees : |
About 400 |
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Bankers : |
Indian Overseas Bank 98-A, Radhakrishnan Salai, Mylapore, Chennai – 600004, Tamilnadu,
India |
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|
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Banking Relations
: |
Satisfactory |
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|
|
|
Auditors : |
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|
Name : |
Sundaram and Srinivasan Chartered Accountants |
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Address : |
23 C P Ramasamy Salai, Alwarpet, Chennai – 600018, Tamilnadu, India |
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|
|
|
Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 30.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,200,000 |
Equity Shares |
Rs. 10/- each |
Rs. 102.000 Millions |
|
600,000 |
Preference Shares |
Rs. 100/- each |
Rs. 60.000 Millions |
|
|
Total |
|
Rs. 162.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,200,000 |
Equity Shares |
Rs. 10/- each |
Rs. 102.000 Millions |
|
600,000 |
Preference Shares |
Rs. 100/- each |
Rs. 60.000 Millions |
|
|
Total |
|
Rs. 162.000
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,193,767 |
Equity Shares |
Rs. 10/- each |
Rs. 101.938
Millions |
|
600,000 |
Preference Shares |
Rs. 100/- each |
Rs. 60.000
Millions |
|
|
Total |
|
Rs. 161.938 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
101.982 |
101.982 |
101.982 |
|
|
2] Share Application Money |
60.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
114.345 |
82.779 |
41.810 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
276.327 |
184.761 |
143.792 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
612.835 |
561.051 |
332.916 |
|
|
2] Unsecured Loans |
85.328 |
83.492 |
85.303 |
|
|
TOTAL BORROWING |
698.163 |
644.543 |
418.219 |
|
|
DEFERRED TAX LIABILITIES |
73.406 |
61.580 |
46.049 |
|
|
|
|
|
|
|
|
TOTAL |
1047.896 |
890.884 |
608.060 |
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
580.624 |
502.497 |
281.802 |
|
|
Capital work-in-progress |
18.864 |
67.004 |
29.511 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.036 |
0.036 |
0.036 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
653.579
|
458.880 |
370.370 |
|
|
Sundry Debtors |
165.659
|
144.738 |
120.111 |
|
|
Cash & Bank Balances |
9.245
|
3.963 |
1.863 |
|
|
Other Current Assets |
0.069
|
0.487 |
0.032 |
|
|
Loans & Advances |
209.031
|
91.168 |
100.638 |
|
Total
Current Assets |
1037.583
|
699.236 |
593.014 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
589.211
|
377.889 |
296.551 |
|
|
Provisions |
0.000
|
0.000 |
0.022 |
|
Total
Current Liabilities |
589.211
|
377.889 |
296.573 |
|
|
Net Current Assets |
448.372
|
321.347 |
296.441 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.270 |
|
|
|
|
|
|
|
|
TOTAL |
1047.896 |
890.884 |
608.060 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2970.514 |
2176.664 |
1802.269 |
|
|
Other Income |
0.535 |
0.654 |
0.619 |
|
|
Total Income |
2971.049 |
2177.318 |
1802.888 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
81.671 |
90.636 |
85.615 |
|
|
Provision for Taxation |
30.590 |
32.231 |
34.401 |
|
|
Profit/(Loss) After Tax |
51.081 |
58.405 |
51.214 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
170.100 |
0.626 |
0.436 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
NA |
12.754 |
|
|
Stores & Spares |
NA |
NA |
1.267 |
|
|
Capital Goods |
NA |
NA |
8.711 |
|
Total Imports |
NA |
NA |
22.732 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
1974.678 |
1533.328 |
1359.452 |
|
|
Consumption of stores and spares parts |
90.820 |
79.797 |
61.217 |
|
|
Increase/(Decrease) in Finished Goods |
108.238 |
[11.748] |
[94.283] |
|
|
Salaries, Wages, Bonus, etc. |
181.620 |
128.363 |
107.497 |
|
|
Managerial Remuneration |
2.526 |
2.803 |
2.648 |
|
|
Payment to Auditors |
0.361 |
0.330 |
0.281 |
|
|
Interest |
90.482 |
54.067 |
39.038 |
|
|
Insurance Expenses |
4.100 |
2.084 |
1.531 |
|
|
Power & Fuel |
96.097 |
70.478 |
52.576 |
|
|
Depreciation & Amortization |
58.034 |
36.604 |
33.469 |
|
|
Other Expenditure |
282.422 |
190.576 |
153.847 |
|
Total Expenditure |
2889.378 |
2086.682 |
1717.273 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.72
|
2.68 |
2.84 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.75
|
4.16 |
4.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.05
|
7.54 |
9.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.49 |
0.60 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.66
|
5.53 |
4.97 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76
|
1.85 |
2.00 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the charge to be modified |
90287147 |
|
Corporate identity
number of the company |
L27209TN1981PLC008630 |
|
Name of the
company |
AXLES INDIA LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
21, Patullos Road, Chennai – 600002, Tamilnadu, India |
|
Type of charge |
|
|
Particular of
charge holder |
Indian Overseas Bank 98-A, Radhakrishnan Salai, Mylapore, Chennai – 600004, Tamilnadu,
India |
|
Nature of
description of the instrument creating or modifying the charge |
Letter of
Hypothecation dated 31.12.2006 |
|
Date of
instrument Creating the charge |
30.12.2006 |
|
Amount secured by
the charge |
Rs. 341.000 Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest CC / WCDL – BPLR
1.50 % Terms of
repayment Valid upto
03.10.2007 Margin 25 % Extent operation
of the charge Hypothecation of
Raw Materials, Work in Progress, Finished Goods and book debts on first pari
passu basis with UTI Bank; Second charge on the fixed assets of the company
on pari passu basis with UTI Bank |
|
Short particulars
of the property charged |
Raw Materials,
Work in progress, Finished Goods and Book Debts of the company held at the
Factories of the Company and the sub Contractor’s premises Fixed assets of
the company at Factories at Sriperumbudur, Kanchipuram District and
Vadamavandal Village, Cheyyar Taluk |
|
Date of latest
modification prior to the present modification |
27.02.2006 |
|
Particulars of
the present modification |
Enhancement of
CC/WCDL/WCFC from Rs. 180.000 Millions to Rs. 195 Millions and reduction of FDDBP/FDUBD
from Rs. 50 Millions to Rs. 37.500 Millions. There is no change in the
Packing Credit [Sublimit of CC] |
Fixed Assets
- Land
- Building
- Plant and
Machinery
- Furniture and
Fittings
- Vehicles
Trade Terms with
- Arunodaya Gears
and Industries
- Arrkay
Engineering Works
- ABN Products
- Badrin
Industries
- BGS Steel
Industries [P] Limited
- Balakshi
Engineering Works
- Bright
Welding Products
- Cast Alloys
- Galaxy
Hydraulic System and Service
- Ganbrightech
[India] Private Limited
- Galaxy
Engineering Enterprises
- Highland
Package
- Heat Tech
Industries
- J. K.
Industries
- Kartik steels
Limited
- Madras
Accurate Engineers
- Micro Hard
Processing
- Maruthi Heat
Processing
- Mak Auto
products
- Precision
Heat Treaters and Analytical Labs
- Raj High Tech
Ventures Private Limited
- Rajalakshmi
Plastics
- Suhesh
Industries
- Sree
Industries
- Sri Marugan
Gauge and Tools
- Suriya Gears
- Sri Dhurgai
Industries
- Tech Mech
Engineers
- Thillai
Enterprises
- Unique
Industries
- Vector
Engineers
- Vee Kay
Machine Tools
As Per Website
Axles
India is a joint venture of Wheels India, Sundaram Finance and Spicer Heavy
Axles Incorporated, USA, a 100% subsidiary of Dana Corporation. Started in
1983, Axles India presently supplies 180,000 pressed Axle housings to Medium and
Heavy Commercial Vehicles, manufactured at two manufacturing locations. In the
Domestic Market, Axles India has, as its customers Tata Motors, Ashok Leyland,
Eicher Motors, Swaraj Mazda and Mahindra & Mahindra.
Axles
India has technology support and equity participation from Dana
Corporation, USA. The company proposes to introduce Dana's latest range of
axles for medium and heavy duty commercial vehicles. 60SHO &
DSHO44 Drive Heads are being produced now. Shortly Axles India will commence
supply of Dana’s Drive Heads – 90S & S130. Other models of Dana drive heads
will be offered to the OEMs thereafter to meet the needs of Medium and Heavy
Commercial vehicles.
Axles India has recently setup an Axle Housing line exclusively for export of
Housings to North American OEM supplies.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.57 |
|
UK Pound |
1 |
Rs.78.93 |
|
Euro |
1 |
Rs.56.85 |
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 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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 |
|