MIRA
INFORM REPORT
|
Report Date : |
29.12.2006 |
IDENTIFICATION
DETAILS
|
Name : |
CEEKAY
DAIKIN LIMITED |
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Registered Office : |
Plot No. L - 4, MIDC
Industrial Area, Chikalthana, Aurangabad – 431 210, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.11.1973 |
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Com. Reg. No.: |
11-16985 |
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CIN No.: [Company
Identification No.] |
L34100MH1973PLC016985 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC10508B |
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PAN No.: [Permanent
Account No.] |
AAACC0641G |
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Legal Form : |
It is a Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and marketing of Clutch
Plate Assembly and Clutch Cover Assembly. |
RATING & COMMENTS
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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
700000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having fine track. Trade relations are fair.
Financial position is good.
Payments are usually correct and as per commitments. The
company can be considered good for any normal business dealings at usual trade
terms and conditions. It can
be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered Office/ Factory : |
Plot No. L - 4, MIDC
Industrial Area, Chikalthana, Aurangabad – 431 210, Maharashtra, India |
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Tel. No.: |
91-240-2483341 / 2484014 |
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Fax No.: |
91-240-2484403 |
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E-Mail : |
ceekay@bom2.vsnl.net.in |
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Head
Office : |
NKM International House, 4th
Floor, 178 Babubhai M. Chinai Marg, Mumbai – 400 020, Maharashtra, India |
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Tel.
No.: |
91-22-22020849 / 2202 8526 / 2204 7907 |
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Fax
No.: |
91-22-2204 3939 |
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E-Mail
: |
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Cable : |
CEEAUTO BOMBAY 20 |
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Telex : |
011-85492 CKAY IN |
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Factory
: |
Plot
No. 9, Udyog Kendra Industrial Area, Greater Noida – 201304, Uttar Pradesh,
India |
DIRECTORS
|
Name : |
Mr. Mahesh B. Kothari |
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Designation : |
Managing Director |
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Date of Birth/Age : |
53 years |
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Qualification : |
B.S. Mech. Engg. |
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Experience : |
31 years |
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Date of Appointment : |
3rd November, 1973 |
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Previous Employment : |
Mahindra & Mahindra Limited – Senior
Engineer |
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Name : |
Mr. Homi C. H. Bhabha |
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Designation : |
Director |
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Name : |
Mr.
Bharat H. Patel |
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Designation : |
Director
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Name : |
Mr.
Hidehito Hisakawa |
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Designation : |
Director
[w.e.f. 25.04.2006] |
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Name : |
Mr. Shreekant V. Mehta |
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Designation : |
Director |
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Name : |
Mr.
Akira Hirai |
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Designation : |
Director
[up to 25.04.2006] |
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Name : |
Mr. N.
P. Subramanian |
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Designation : |
Director
[Nominee of ICICI Bank Limited] |
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Name : |
Mr. Pradeep B. Chinai |
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Designation : |
Managing Director |
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Date of Birth/Age : |
49 years |
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Qualification : |
B.S. (Engg.), M.B.A. |
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Experience : |
27 years |
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Date of Appointment : |
2nd June, 1975 |
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Previous Employment : |
The Ashland Oil Inc. – Project Analyst |
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Name : |
Mr.
Yasufumi Yamabe |
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Designation : |
Managing
Director |
KEY EXECUTIVES
|
Name
: |
Mr.
Deepak N. Tanna |
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Designation
: |
Company
Secretary |
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Name
: |
Mr.
Naresh Agarwal |
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Designation
: |
Deputy
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Foreign
Collaborators |
1295050 |
32.12 |
|
Banks
and Government Companies |
60 |
0.01 |
|
Public
Financial Institution F.I.I. & O.C.B. |
1800 |
0.04 |
|
Mutual
Funds |
1200 |
0.03 |
|
Domestic
Companies |
641176 |
15.90 |
|
Directors
& Relatives |
865709 |
21.48 |
|
Non –
Resident Indians |
24836 |
0.62 |
|
Individual
|
1162614 |
28.83 |
|
Trust |
450 |
0.01 |
|
HUF |
38601 |
0.96 |
|
TOTAL |
4031496 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of Clutch
Plate Assembly and Clutch Cover Assembly. |
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Products : |
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Exports to : |
USA, Canada, South Africa, Indonesia,
Australia, Trininad, Dubai and Japan |
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Imports from : |
U.S.A., Germany, Europe and Japan
[Components, Spare Parts and Capital Goods] |
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Terms : |
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Purchasing : |
L/C and Credit |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Clutch Plate Assy. |
‘000 Nos. |
N.A. |
1500.00 |
1016.71 |
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Clutch Cover Assy. |
‘000 Nos. |
N.A. |
1100.00 |
905.01 |
GENERAL
INFORMATION
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No. of Employees : |
800 |
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Bankers : |
Bank of Maharashtra The United Western Bank Limited Kotak Mahindra Bank Limited The Saraswat Co-operative Bank Limited ICICI Bank Limited |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
D. L. Shah & Company Chartered Accountants, Mumbai |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
9000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 90.000 millions |
|
100000 |
Cumulative
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 10.000 millions |
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TOTAL |
|
Rs. 100.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
4031496 |
Equity
Shares |
Rs. 10/- each |
Rs. 40.315 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 |
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|
|
|
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1] Share Capital |
40.315 |
40.315 |
40.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
138.393 |
107.351 |
88.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
178.708 |
147.666 |
128.600 |
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LOAN FUNDS |
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1] Secured Loans |
297.791 |
315.812 |
352.200 |
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2] Unsecured Loans |
152.355 |
157.149 |
161.200 |
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TOTAL BORROWING |
450.146 |
472.961 |
513.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
628.854 |
620.627 |
642.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
344.731 |
309.926 |
274.200 |
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Capital work-in-progress |
0.000 |
0.000 |
31.700 |
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INVESTMENT |
0.010 |
4.785 |
4.800 |
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DEFERREX TAX ASSETS |
30.390 |
36.352 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
232.262
|
229.980 |
206.400 |
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Sundry Debtors |
170.264
|
150.646 |
152.700 |
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Cash & Bank Balances |
1.165
|
1.662 |
2.200 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
53.808
|
45.233 |
95.600 |
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Total Current Assets |
457.499
|
427.521 |
456.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities & Provisions |
209.517
|
163.698 |
132.400 |
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Total Current Liabilities |
209.517
|
163.698 |
132.400 |
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Net Current Assets |
247.982
|
263.823 |
324.500 |
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MISCELLANEOUS EXPENSES |
5.741 |
5.741 |
6.800 |
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TOTAL |
628.854 |
620.627 |
642.000 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
878.000 |
707.105 |
651.600 |
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Profit/(Loss)
Before Tax |
56.272 |
24.203 |
8.100 |
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Provision
for Taxation |
6.274 |
2.006 |
2.300 |
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Profit/(Loss)
After Tax |
49.998 |
22.197 |
5.800 |
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Export
Value |
1.567 |
3.807 |
N.A. |
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Import
Value |
104.136 |
73.997 |
N.A. |
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Total
Expenditure |
783.359 |
649.756 |
643.500 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2006 [1ST Qtr.] |
30.09.2006 [2nd Qtr.] |
|
Sales Turnover |
|
207.500 |
233.800 |
|
Other Income |
|
3.200 |
7.800 |
|
Total Income |
|
210.700 |
241.600 |
|
Total Expenditure |
|
179.500 |
208.500 |
|
Operating Profit |
|
31.200 |
33.100 |
|
Interest |
|
7.800 |
8.200 |
|
Gross Profit |
|
23.400 |
24.900 |
|
Depreciation |
|
10.900 |
11.000 |
|
Tax |
|
1.600 |
2.100 |
|
Reported PAT |
|
10.900 |
11.800 |
Notes:
2006-06 Quarter 1
1. The Company has only one segment line namely
'Clutch Disc/Cover Assembly'. 2. Previous period/year figures have been
regrouped wherever necessary. 3. A provision for net deferred tax liability of
Rs. 5.962 millions has been made for the year 2005 - 06. 4. The sales from
April to July 2006 - 07 as compared to the same period in 2005 - 06 are as
follows: 2006 - 07 April - July 2005 - 06 April - July Clutch Disc Assembling
3,34,592 nos. 3,18,602 nos. Clutch Cover Assembly 2,91,454 nos. 2,85,675 nos.
5. The Directors at their meeting held on 1st August, 2006 recommended payment
of dividend of RS. 2.00 per equity share for the year 2005 - 2006 amounting to
Rs. 8.063 millions. 6. The Statutory Auditors have carried out a limited review
for the quarter ended 30th June, 2006. 7. Status of investor grievances: During
the quarter ended 30th June, 2006, the Company received four complaints from
the shareholders, which were duly resolved and no complaints were pending at
the end of the quarter. 8. The Audit Committee has reviewed the above audited
as well as quarterly results at its meeting held on 1st August,
2006. 9. The above financial results were taken on record by the Board of
Directors at their meeting held on 1st August, 2006.
2006-09 Quarter 2
Gross Sales Includes Sales / Income from operations Rs
324.199 million Inter Division Sales Rs (50.499) million Expenditure Includes
Consumption of Raw Materials Rs 133.032 million (Increase)/Decrease in Stock in
Trade Rs 7.131 million Labour / Staff Cost Rs 20.921 million Other Expenditure
Rs 47.477 million Tax Includes Provision for Current Tax Rs 1.685 million
Fringe Benefit Tax Rs 0.377 million EPS is Basic Status of Investor Complaints
for the quarter ended September 30, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter 03 Complaints disposed
off during the quarter 03 Complaints unresolved at the end of the quarter Nil
1. Company has only one segment line namely Clutch Disc / Cover Assembly. 2.
Previous period/year figures have been regrouped wherever necessary. 3.
Deferred tax in accordance with accounting standard 22 will be ascertained and
necessary effect will be given in the audited accounts as on March 31, 2007. 4.
The statutory Auditors have carried out a Limited Review for the quarter ended
September 30, 2006. 5. The Audit Committee has reviewed the above quarterly
results at its meeting held on October 17, 2006. 6. The above financial results
were taken on record at the Board meeting held on October 17, 2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
2.83 |
3.57 |
4.12 |
|
Long Term Debt -Equity Ratio |
1.77 |
2.33 |
2.74 |
|
Current Ratio |
1.32 |
1.44 |
1.52 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.49 |
1.28 |
1.09 |
|
Inventory |
4.29 |
3.61 |
3.07 |
|
Debtors |
6.18 |
5.19 |
4.51 |
|
Interest Cover Ratio |
2.62 |
1.61 |
1.19 |
|
Operating Profit Margin (%) |
13.04 |
12.31 |
13.49 |
|
Profit Before Interest and Tax Margin (%) |
9.16 |
8.11 |
8.06 |
|
Cash Profit Margin (%) |
7.93 |
6.62 |
6.33 |
|
Adjusted Net Profit Margin (%) |
4.06 |
2.41 |
0.90 |
|
Return On Capital Employed (%) |
14.67 |
10.21 |
8.11 |
|
Return on Net Worth (%) |
24.63 |
13.75 |
4.61 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.86.90/- |
|
Low |
Rs.86.90/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Ceekay Daikin [CDL] is a leading manufacturer of clutches and a
leading supplier to the original equipment market such as TELCO, Maruti,
Mahindra, Eicher, Premier Auto etc. Exedy Corporation (formerly known as Daikin
Manufacturing Company, Japan), the foreign collaborator, has a 25% stake in the
company.
CDL is India's largest manufacturer of diaphragm-type clutches. To meet the
growing demand, CDL expanded its CPA capacity to 1 million units pa and the CCA
capacity to 0.6 million units pa. CDL exports its products to Indonesia,
Singapore, Sri Lanka, Australia and the US.
In 1989, it came out with a rights issue to part-finance its expansion. In
Dec.'97, The Company was awarded the ISO-9002 certification by BVQI and the
Company has also embarked on achieving the QS-9000 Certification.
In 1998-99, the Joint Venture Company Exedy Ceekay Limited (ECL) commenced
commercial production. The collaborators have decided to merge ECL into the
company and accordingly in 1999-2000, relevant applications have been made to
both the Hon'able High Court of Mumbai and also Punjab and Haryana for the
amalgamation scheme.
As per the Scheme of Amalgamation 5,31,496 shares have been allotted to the
shareholder of Exedy Ceekay Limited the amalgamating company in the exchange
ratio of 1 equity share for every 2.4 equity shares held by them.
DIVIDEND
The revenue account of the company for the year has shown a profit of Rs.
49.998 millions after providing for interest, depreciation, Income Tax, Fringe
Benefit Tax and deferred tax liability. Your directors have pleasure in
recommending for the year ending 31st March 2006, the payment of
dividend of Rs. 2/- per share, subject to the approval by members at the Annual
General Meeting.
OPERATIONS
The company's performance for the year under report has improved significantly
mainly due to productivity improvement measures and aggressive cost management,
even though prices related to raw materials had increased.
The company achieved a major milestone in 2005-06 by accomplishing production
and sales of 1.00 million Clutch Disc and 0.90 million Clutch Covers in
2005-06, the first time in its history.
The automotive sector continues to grow. During the year, supplies to OEMs in
the automotive sector improved.
The Sale of products during the year is as follows:
2005-06 2004-05
|
|
2005-06 |
2004-05 |
|
CLUTCH DISC ASSLY |
10,07,538 Nos. |
8,40,572 Nos. |
|
CLUTCH COVER ASSLY |
9,02,893 Nos. |
7,28,665 Nos. |
|
KITS & COMPONENTS |
Rs. 15.257 millions |
Rs. 17.965 millions |
The company was able to achieve operating profit of Rs. 129.207 millions,
during the current year against Rs. 96.948 millions of the previous year. The
Sales (net of excise and inter division sales) and other income for the
financial year under report was Rs. 878.000 millions as against Rs. 707.105 millions for the previous financial
year.
The profit after provision for taxation is at Rs. 49.998 millions as against
profit of Rs. 22.197 millions in the previous year.
The Sales from April to July 2006-07 as compared to the same period in 2005-06
is as follows:
|
|
2006-07 (APRIL-JULY) |
2005-06 (APRIL-JULY) |
|
Clutch Disc Assly |
3,34,592 |
3,18,602 |
|
Clutch Cover Assly |
2,91,454 |
2,85,675 |
|
Net Turnover (net of excise and Inter division sales) |
Rs. 286.987 millions |
Rs. 271.983 millions |
The current year has shown a promising start and their production and turnover
having stabilized at a higher level than 2005-06 has increased compared to the
same period of last year.
To meet growing demand, Company has undertaken expansion of Manufacturing
activity over next two years.
COLLABORATORS
Exedy Corporation the Collaborators have continued their valuable support in
technology transfer, training our personnel at their as well as the factory and
for upgradation in technology. The Directors would like to place on record
their appreciation for continuous patronage given by them.
The
company has been awarded the ISO-9002 Certification by M/s. BVQI on 18th
December, 1997 and has embarked with greater enthusiasm on achieving the
QS-9000 Certification.
The
company’s fixed assets of important value includes Leasehold Land, Freehold
Land, Factory Building, Plant & Machinery, Computers, Electrical
Installations, Vehicles, Furniture & Fixture, Office Equipments, Inspection
Instruments, Tools, Dies, Jigs & Fixtures and Capital Work in Progress.
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.44.20 |
|
UK
Pound |
1 |
Rs.86.88 |
|
Euro |
1 |
Rs.58.53 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
55 |
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 |
|