MIRA
INFORM REPORT
|
Report Date : |
13.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
TVS SRICHAKRA LIMITED |
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Registered Office : |
TVS Building, 7-B,
West Veli Street, Madurai – 625 001, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.06.1982 |
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Com. Reg. No.: |
18-9414 |
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CIN No.: [Company
Identification No.] |
U25IIITN1982PLC009414 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRIS00086C |
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Legal Form : |
Subject is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing
of Two Wheeler Tyres. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
2000000 |
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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 part of TVS Group, an established and reputed industrial house.
Available information indicates high financial responsibility of the company.
Trade relations are fair. Financial position is good. Payments
are correct and as per commitment. The company can be considered good for any
normal business dealings. It can
be regarded as a promising business partner in a medium to long-run |
LOCATIONS
|
Registered Office : |
TVS Building, 7-B, West Veli Street, Madurai – 625 001, Tamilnadu, India |
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Tel. No.: |
91-452-2420461 |
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Fax No.: |
91-452-2420266 |
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E-Mail : |
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Website : |
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Administrative
Office : |
10,
Jawahar Road, Madurai-625002 |
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E-Mail
: |
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Website
: |
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Factory
1 : |
Vellaripatti
Village, Melur Taluk, Madurai District- 625122 |
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Factory
2 : |
Narasingampatti
Village, Therkutheru, Melur Taluk, Madurai District-625122 |
DIRECTORS
|
Name : |
Mr. S.
Narayanan |
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Designation : |
Chairman |
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Name : |
Mr. R. Naresh |
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Designation : |
Executive Vice Chairman |
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Name : |
Ms. Shobhana Ramachandhran |
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Designation : |
Managing Director |
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Name : |
Mr. K. R. Ragavan |
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Designation : |
Director |
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Name : |
Mr. M. S. Viraraghavan |
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Designation : |
Director |
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Name : |
N. T.
Atthreya |
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Designation : |
Director |
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Name : |
J. V.
Raghavan |
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Designation : |
Director |
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Name : |
Sitaram
Rao Valluri |
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Designation : |
Director |
KEY EXECUTIVES
|
Audit
Committee : Shareholders/Investors
Committee |
Mr. M. S. Viraraghavan Chairman N. H.
Atthreya Sitaram
Rao Valluri K. R.
Raghavan S. Narayanan Chairman Shobhana
Ramachandran J. V.
Raghavan |
MAJOR SHAREHOLDERS
As
on 30.12.2006
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding of Promoter and Promoter Group |
|
|
|
Individuals / Hindu Undivided Family |
360762 |
4.71 % |
|
Bodies Corporate |
2660523 |
34.75 % |
|
Public Shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds / UTI |
650 |
0.01 % |
|
Financial Institutions / Banks |
2580 |
0.03 % |
|
Central / State Government(s) |
94 |
0.00 % |
|
Foreign Institutional Investors |
1500 |
0.02 % |
|
Non-Institutions |
|
|
|
Bodies Corporate |
430098 |
5.62 % |
|
Individual shareholders holding nominal share capital upto Rs. 0.1
Millions |
3172841 |
41.44 % |
|
Individual shareholders holding nominal share capital in excess of Rs. 0.1 Millions |
898546 |
11.74 % |
|
Any Other |
129456 |
1.69 % |
|
Total |
7657050 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Two Wheeler Tyres. |
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Products : |
· Mopeds · Scooter · Light Motor Cycle · Motor Cycle · 3 Wheeler · Light Commercial Vehicle · Tractor Front · Tractor Trailer · Jeep · Racing · Industrial Pneumatic · Implement · Skid Steer · Multi Purpose · Mining ·
Antiqu |
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Export to : |
UK, Germany, Italy, Spain, France , Benelux, Scandinavia, Hungary, Turkey, Morocco, Argentina, Algeria, Ethiopia, Ghana, Mauritius, Bahrain, Egypt, Austria, Ireland, Thailand, Sri Lanka, USA, Europe, Africa, South America and South East Asia |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Automotive Tyres |
Nos(‘000) |
11000 |
9300 |
7206 |
|
Automotive Tubes |
Nos(‘000) |
11000 |
9300 |
7518 |
|
Flaps |
-- |
-- |
-- |
4 |
GENERAL
INFORMATION
|
Bankers : |
Ř
State
Bank of India West Veli Street,
Madurai- 625001 Ř
HDFC
Bank Limited |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
Sundaram
& Srinivasan Chartered
Accountant Old
No. 111, New No. 250, P.T. Rajan Road, Madurai-625014 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity
Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
7657050 |
Equity
Shares |
Rs.10/- each |
Rs.76.570 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
76.570 |
76.570 |
76.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
412.866 |
393.832 |
369.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
489.436 |
470.402 |
445.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
424.052 |
187.371 |
147.700 |
|
|
2] Unsecured Loans |
364.729 |
28.310 |
45.000 |
|
|
TOTAL BORROWING |
788.781 |
215.681 |
192.700 |
|
|
DEFERRED TAX LIABILITIES |
72.221 |
68.060 |
0.000 |
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|
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|
|
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TOTAL |
1350.438 |
754.143 |
638.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
508.369 |
362.082 |
318.400 |
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Capital work-in-progress |
27.346 |
2.108 |
01.500 |
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INVESTMENT |
12.450 |
11.348 |
22.000 |
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DEFERREX TAX ASSETS |
2.013 |
1.530 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
371.521 |
259.760 |
178.500 |
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Sundry Debtors |
618.820 |
380.424 |
369.100 |
|
|
Cash & Bank Balances |
21.470 |
11.152 |
12.400 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
163.404 |
81.888 |
62.800 |
|
Total Current Assets |
1175.215 |
733.224 |
622.800 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
|
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|
Current Liabilities |
347.743 |
336.459 |
286.700 |
|
|
Provisions |
27.212 |
22.009 |
45.100 |
|
Total Current Liabilities |
374.955 |
358.468 |
331.800 |
|
|
Net Current Assets |
800.26 |
374.756 |
291.000 |
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|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
2.319 |
5.500 |
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|
|
|
|
|
|
|
TOTAL |
1350.438 |
753.143 |
638.400 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
2918.388 |
2027.961 |
2263.700 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
63.474 |
61.751 |
105.100 |
|
Provision
for Taxation |
26.978 |
20.147 |
36.100 |
|
Profit/(Loss)
After Tax |
36.496 |
41.604 |
69.000 |
|
|
|
|
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|
Export
Value |
458.569 |
338.939 |
NA |
|
|
|
|
|
|
Import
Value |
507.786 |
270.288 |
NA |
|
|
|
|
|
|
Total
Expenditure |
2857.200 |
1949.296 |
NA |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
31.12.2006 (3rd Quarter) |
|
Sales Turnover |
952.200 |
1107.200 |
1078.200 |
|
Other Income |
5.700 |
5.800 |
04.400 |
|
Total Income |
957.900 |
1113.000 |
1082.600 |
|
Total Expenditure |
910.100 |
1050.100 |
1015.300 |
|
Operating Profit |
47.800 |
62.900 |
67.300 |
|
Interest |
14.600 |
19.600 |
20.300 |
|
Gross Profit |
33.200 |
43.300 |
47.000 |
|
Depreciation |
21.100 |
21.100 |
18.400 |
|
Tax |
4.200 |
7.900 |
11.200 |
|
Reported PAT |
7.400 |
14.000 |
15.500 |
Notes :
200606
Quarter –
EPS is Basic & Diluted 1.Presently, the Company operates only in one segment. 2.The plant capacity in respect of tyres and tubes have been increased from 9.3 Millions nos each to 10.344 Millions nos of tyres and 10.500 Millions nos of Tyres per annum. 3. Status of investor grievances for the quarter ended 30.06.2006: No. of complaints pending as at 1.04.2006 - Nil; Received during the quarter - Nil; Disposed during the quarter - NIl; Lying unresolved as at 30.06.2006 - Nil.
200609
Quarter 2 –
Presently, the company operates only in one segment. 2. The plant capacity in respect of tyres and tubes have been increased from 9.3 millions nos. each to 10.620 Millions nos. of tyres and 10.560 Millions nos. of tubes per annum. 3. Status of investor grievances for the quarter ended 30/09/2006: No of complaints pending as at 01/07/2006 - Nil, Received during the quarter 2; Disposed during the quarter - 2; Lying unresolved as at 30/09/2006 - Nil.
200612 Quarter 3 –
1.
Presently the Company operates only one segment 2. The plant capacity in
respect of tyres and tubes have been increased from 10.620 Millions nos and
10.560 Millions nos respectively to 10.725 Millions nos of tubes per annum. 3.
Status of investor grievances for the quarter ended 31.12.2006 No. of
complaints pending as at 1.10.2006-Nil; Received during the quarter-1; Disposed
during the quarter -1 ; Lying unresolved as at 31.12.2006 - Nil
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.05 |
0.45 |
0.49 |
|
Long Term Debt Equity Ratio |
0.77 |
0.19 |
0.25 |
|
Current Ratio |
1.68 |
1.37 |
1.37 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.77 |
3.12 |
3.49 |
|
Inventory |
10.50 |
10.31 |
11.38 |
|
Debtors |
6.64 |
6.03 |
6.43 |
|
Interest Cover Ratio |
3.36 |
4.14 |
6.47 |
|
Operating Profit Margin (%) |
4.72 |
5.17 |
7.78 |
|
Profit Before Interest and Tax Margin (%) |
2.73 |
2.57 |
5.40 |
|
Cash Profit Margin (%) |
3.09 |
3.92 |
5.38 |
|
Adjusted Net Profit Margin (%) |
1.10 |
1.31 |
3.00 |
|
Return on Capital Employed (%) |
9.21 |
8.81 |
19.92 |
|
Return on Net Worth (%) |
7.60 |
6.46 |
16.34 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.123.00/- |
|
Low |
Rs.105.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Performance:
Their
Company’s turnover for the year under review has grown over previous year to
Rs. 3310 Millions. The prices of the major raw materials, particularly natural
rubber and petroleum-based inputs have gone up substantially, during the year,
which adversely impacted the profitability of the Company. The price increases
obtained by the company, from the OE business segment, could off set only a
portion of the input cost increase, severely impacting the bottom line, in view
of the size of this business segment. In spite of growth in revenues and your
Company’s sustained cost reduction measures,
Expansion:
Their
Company has expanded its production capacity, substantially, from 8.000
millions number of tyres and tubes
each, to 11.000 millions number of tyres and tubes each, during the year under
review.
Their
Company’s outlay on capital expenditure during 2005-2006 amounts to Rs. 21.000
millions, funded by borrowing and internal accruals.
Their
Company is planning to expand the capacity further augment the capacity. Their
Company continues to examine, new profitable opportunities, within the tyre
industry. The extent of expansion , the investment and the means of finances
are being worked out.
Management
Discussion And Analysis Report
Industry
Structure and Developments:
In
2005-06, the two wheeler sales and production went up by nearly 16% which is
almost same as that of last year. This has resulted in growth in demand from
the After Market also.
Discussion
and Analysis:
Increase
in prices of Natural Rubber in particular, and increase in other petroleum
based inputs, resulted in shrinkage of intense competition, the cost increased
could only be passed on partly to the customers.
Outlook:
Input
costs have gone up and are expected to remain high. The industry may have to
increase prices to maintain profitability.
On the
positive side, it is predicted that there will be a volume growth of 12% to 14%
in 2006-07. The Company is also making vigorous efforts to increase exports.
These opportunities will partially offset the impact of the cost increases that
have happened. They are optimistic of growing our business n the Indian After
Market as well as getting an increased share
of business with all key OEM customers
Fixed
Assets
- Land
- Buildings
- Plant and Machinery
- Electrical Installation
- Furniture and Fixtures
- Vehicles
Statement showing Shareholding of persons belonging to
the category "Promoter and Promoter Group"
|
Name of the
Shareholder |
No. of Shares |
Percentage of Holding |
|
T V Sundram
Iyengar & Sons Limited |
1791060 |
23.39 % |
|
Sundaram
Industries Limited |
750000 |
9.79 % |
|
Mr. R Haresh |
945 |
0.01 % |
|
M/s Nitya Kalyanee
Investment Private Limited |
4097 |
0.05 % |
|
Mr. R Haresh |
15150 |
0.20 % |
|
Ms. Shobhana
Ramachandhran |
246966 |
3.23 % |
|
Naresh R |
97656 |
1.28 % |
|
Dinesh R |
45 |
0.00 % |
|
Nitya Kalyanee
Investment Private Limited |
115366 |
1.51 % |
|
TOTAL |
3021285 |
39.46 % |
Statement showing Shareholding of persons belonging to
the category "Public" and holding more than 1%
|
Name of the
Shareholder |
No. of Shares |
Percentage of Holding |
|
Yogesh Agencies
& Investments Limited |
128000 |
1.672 % |
|
Yogesh Kumar
Mahansaria |
357506 |
4.669 % |
|
Bharat Jayantilal
Patel |
105000 |
1.371 % |
|
Manek Bhanshali |
98575 |
1.287 % |
|
TOTAL |
689081 |
8.999 % |
PROFILE
TVS Srichakra is Part of the TVS Group, the largest Auto Ancillary
group with a turnover of over US$ 2.2 billion.
The company Manufactures Industrial Pneumatic Tyres, Farm & Implement
Tyres, Skid Steer Tyres, Multipurpose Tyres and Vintage Tyres at its State -
of- the- art manufacturing facility at Madurai, Tamilnadu, India.
The company also has the distinction of being India's leading two wheeler tyre
manufacturer , rolling out over 9 million tyres annually and enjoying highest
share with Vehicle manufacturer backed by a strong network of over 2050 Dealers
and 20 Depots across the country.
The company is Accredited with ISO 9001 and ISO 14001 certification and has won
TPM Excellence Award. The Company also practices Six Sigma and Lean
Manufacturing Techniques.
Specification
- Specially engineered disign gives superb road grip
- Optimized radius for excellent driveability
- Rugged looking tyres suitable for all track conditions
- Studs extended upto shoulder for better cornering
- Reinforced casing for absorbing shocks and impacts
- Good aesthetic appearance
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.44.17 |
|
UK
Pound |
1 |
Rs.86.10 |
|
Euro |
1 |
Rs.57.26 |
SCORE &
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 |
YES |
|
--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 & 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 |
|