MIRA
INFORM REPORT
|
Report Date : |
29.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HALDEX
INDIA LIMITED |
|
|
|
|
Registered Office : |
B-71
MIDC Area, Ambad, Nashik-422010, Maharashtra, India |
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Country : |
India |
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|
Financials (as on) : |
31.03.2006 |
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|
Date of Incorporation : |
13.10.1998 |
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Com. Reg. No.: |
11-118876 |
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|
CIN No.: [Company
Identification No.] |
U99999MH1999PTC118876 |
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|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
NSKH00947C |
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|
Legal Form : |
A
closely held public limited liability company. |
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|
Line of Business : |
Manufacturers,
producers, purchasers, sellers, importers, exporters, distributors, dealers,
commission agents and market representatives of all kinds of Automotive
components and systems including Heavy Duty Air Brakes including Air
Compressors and Slack Adjustors and their auxiliary products and parts
thereof. |
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 |
|
Maximum Credit Limit : |
USD
200000 |
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|
Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed Indo-Swedish joint venture. Available
information indicates satisfactory financial responsibility of the company.
Directors are reported as experienced and respectable businessmen. Trade
relations are fair. Business is active. Payments are reported as usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office / Factory
: |
B-71
MIDC Area, Ambad, Nashik-422010, Maharashtra, India |
|
Tel. No.: |
91-253-2380091-94 |
|
Fax No.: |
91-253-2380729 |
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E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr.
Anand Deep |
|
Designation : |
Director
|
|
Address : |
25/4,
Palam Gurgaon Road, Dundahera, Gurgaon
- 122016, Haryana, India |
|
Date of Birth/Age : |
26.08.1933 |
|
Date of Appointment : |
01.11.2001 |
|
|
|
|
Name : |
Mr. S.
Chandrakant Patel |
|
Designation : |
Director
|
|
Address : |
B 2 /
58, SAF Darjung Enclave New Delhi – 110016, India |
|
Date of Birth/Age : |
10.09.1939 |
|
Date of Appointment : |
03.03.1999 |
|
|
|
|
Name : |
Mr.
Pradipta Sen |
|
Designation : |
Director
|
|
Address : |
Emerson
Electric Company, Global Business Park, Mehruli Gurgaon Road, Gurgaon - 122002, Haryana |
|
Date of Appointment : |
28.10.2003 |
|
|
|
|
Name : |
Mr.
Ckaes Warnander |
|
Designation : |
Director
|
|
Address : |
Arholmau
20 Box 4046, 18204 Eneberg, Sweden |
|
Date of Birth/Age : |
22.06.1965 |
|
Date of Appointment : |
10.05.1999 |
|
|
|
|
Name : |
Mr. Charles
Warnander |
|
Designation : |
Director
|
|
Address : |
1504
SW, Mayerblod Blue Springs Missouri – 64015, USA |
|
Date of Appointment : |
10.05.1999 |
|
|
|
|
Name
: |
Mr.
Magnus Bergstrom |
|
Designation
: |
Director
|
|
Address
: |
Raibygatan
13 F, 22361, Lund Sweden |
|
Date
of Appointment : |
10.05.1999 |
|
|
|
|
Name
: |
Mr.
Deepak Chopra |
|
Designation
: |
Director
|
|
Address
: |
7
& 8, Anfilco Housing Colony, 25 3 KM Palam Gurgaon Road, Dundahera,
Gurgaon – 122018, Haryana |
|
Date
of Birth/Age : |
25.12.1954 |
|
Date
of Appointment : |
24.05.2006 |
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|
|
|
Name
: |
Mr.
Jakim Olsson |
|
Designation
: |
Director
|
|
Address
: |
Ringvaegen
60 SE – 13335, Saltsjoebaden |
|
Date
of Birth/Age : |
22.06.1965 |
|
Date
of Appointment : |
08.07.2005 |
|
|
|
|
Name
: |
Mr.
Ganesh R Pai |
|
Designation
: |
Director
|
|
Address
: |
101, 4th
Gulmohar, JVPD Scheme, Juhu, Vile Parle [West], Mumbai – 400049, Maharashtra,
India |
|
|
|
|
Name
: |
Mr.
Ramni Dood |
|
Designation
: |
Director
|
|
Address
: |
H –
89, Naraina Vihar, New Delhi – 110028, India |
|
|
|
|
Name
: |
Mr.
Krishnamurthy Naga Subramaniam |
|
Designation
: |
Director
|
|
Address
: |
13-14,
Anfilco Housng Society, Anand Farm, 25.4 Km Palam Gurgaon Road, Gurgaon –
122016, Haryana, India |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Ansysco
Limited |
|
1199995 |
|
Mr. S.
Chandrakant Patel |
|
1 |
|
Subramani
Amxn |
|
1 |
|
Deepak
Chopra |
|
1 |
|
Sushilprakash
Sharma |
|
1 |
|
Akhilkumar
Agarwal |
|
1 |
|
Haldex
A B |
|
1800000 |
|
Total |
|
3000000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
producers, purchasers, sellers, importers, exporters, distributors, dealers,
commission agents and market representatives of all kinds of Automotive
components and systems including Heavy Duty Air Brakes including Air
Compressors and Slack Adjustors and their auxiliary products and parts
thereof. |
||||
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Products : |
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PRODUCTION
STATUS
|
Particulars |
Unit |
|
|
Installed Capacity |
|
Slack Adjusters |
Nos. |
|
|
600000 |
|
SABA |
Nos. |
|
|
430000 |
GENERAL
INFORMATION
|
Suppliers : |
|
|
|
|
|
Bankers : |
Citi
Bank N. A. Citi
Group Centre, C – 61, Bandra Kurla Complex, Bandra [East], Mumbai – 400051,
Maharashtra, India Bank
of Maharashtra, Ambad Industrial Estate Branch, Nashik |
|
|
|
|
Facilities : |
-- |
|
|
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Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Price
Waterhouse and Company Chartered
Accountants P – 1,
Aditya Vihar, Faidulajab, Opposite D Block, Saket, Mehrauli Badalpur Road,
New Delhi – 110030, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 30.000 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 |
30.000 |
30.000 |
30.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
24.904 |
21.078 |
22.775 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
54.904 |
51.078 |
52.775 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1.886 |
1.311 |
16.376 |
|
|
2] Unsecured Loans |
22.410 |
21.700 |
0.000 |
|
|
TOTAL BORROWING |
24.296 |
23.011 |
16.376 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
79.200 |
74.089 |
69.151 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
68.169 |
57.015 |
36.700 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
3.333 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
2.133 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
30.835
|
19.791 |
15.834 |
|
|
Sundry Debtors |
64.391
|
38.971 |
32.998 |
|
|
Cash & Bank Balances |
11.392
|
12.791 |
22.250 |
|
|
Other Current Assets |
5.168
|
5.592 |
0.000 |
|
|
Loans & Advances |
13.978
|
15.527 |
10.214 |
|
Total Current Assets |
125.764
|
92.672 |
81.296 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
67.977
|
33.702 |
27.752 |
|
|
Provisions |
46.756
|
41.896 |
26.763 |
|
Total Current Liabilities |
114.733
|
75.598 |
54.515 |
|
|
Net Current Assets |
11.031
|
17.074 |
26.781 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.204 |
|
|
|
|
|
|
|
|
TOTAL |
79.200 |
74.089 |
69.151 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
298.760 |
268.305 |
229.979 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
43.294 |
31.884 |
39.313 |
|
Provision
for Taxation |
15.522 |
13.142 |
10.435 |
|
Profit/(Loss)
After Tax |
27.772 |
18.742 |
28.878 |
|
|
|
|
|
|
Export
Value |
149.163 |
127.513 |
116.256 |
|
|
|
|
|
|
Import
Value |
NA |
7.778 |
Nil |
|
|
|
|
|
|
Total
Expenditure |
255.466 |
236.421 |
190.666 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
9.30
|
6.98 |
12.56 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
14.49
|
11.88 |
17.09 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
22.38
|
11.88 |
33.32 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
0.79
|
0.62 |
0.74 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
2.53
|
1.93 |
1.34 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
1.10
|
1.23 |
1.49 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Land
- Factory
- Machinery
- Fixture
The
company posted satisfactory results during the year despite stiff competition.
The sales for the year ended March 31, 2005 was Rs. 258.4 Million as compared
to Rs. 208.4 Million in the previous year, reflecting a growth of 24 % Profit
after Interest but before Depreciation and Taxation was Rs 38.5 Millions as
compared to Rs. 44.8 million in the previous year. Net profit for the year
ended 31.03.2005 was Rs. 18.8 Million against Rs. 28.9 Million in the previous
year. The Net profit for the year under report has been arrived after providing
for extra ordinary expense of Rs. 12 Millions on account of warranty and other
claims.
The
company expanded by starting commercial production of new product Self Setting
Automatic Brake Adjuster for domestic market. A-ABA has been installed in a new
Plant. From the year 2006 onwards, it will be mandatory for all vehicles to fir S-ABA and therefore, it
offers tremendous scope for the company.
The
company also started commercial supplies for rear Manual Brake Adjusters for
Heavy Commercial vehicles to Tata Motors and is fulfilling 85 % of their
requirement. The company is also a 100 % supplier of a Manual Brake Adjusters
of Eicher Motors. The company has been able to capture 60 % market share of the
total Indian market in last five years period.
The
major thrust of the company is to consolidate its market share in domestic
market besides exports to overseas customers.
The company exported products worth Rs. 125.4 Million. The company
export its products mainly to its collaborators and their affiliates.
Business Outlook
The
Indian economy remained buoyant and significant growth was seen in
manufacturing and service sector including automotive components industry. The
company was made further strides to become a significant player in its product
category in the Indian market.
Due to
regulatory changes vehicles manufacturers in many countries are switching over
form MBA to Automatic Slack Adjusters, which is resulting in gradual shift form
Manual to Automatic Brake Adjuster. This will provide opportunities for the
company to consolidate its position in the Indian markets.
Technology
Absorption
Technology
for Manual Brake Adjuster is imported form Collaborator, Haldex A B, Sweden since 1999 and the
Supplemental Agreement to provide technology for self Adjusting Automatic Brake
Adjusters and CONDEP was executed in the year 2003. Technology absorption is in
process
Collaborators
The
company wishes to place on record its sincere appreciation for the support
extended by its Collaborators, Haldex A B, Sweden towards technology absorption programme as well as for export
made by company during the year.
Haldex India Limited,
established in 1998, is a joint venture between Anand Automotive Systems and
Haldex of Sweden, the world’s No. 1 in Auto Slack Adjusters. The manufacturing
facility, equipped with a complete Assembly Line - imported from UK - is
located at Nashik. Technology has been provided by the erstwhile Midland Grau,
now a part of Haldex Group.
Currently, the Company
manufactures manual Slack Adjusters mainly for export markets and for Telco commercial
vehicles. Haldex India is in the process of putting up a facility for new brake
products.
Show cause notice issued by joint
direct of foreign trade in respect of DEPB licenses
|
11.992
|
Show cause notice issued by deputy
commissioner of central excise for payment of service tax on royalty
|
0.103
|
Bill Discounted with bank
|
30.277
|
Pending sales tax matters
|
0.297
|
Bank guarantees for excise duty
|
0.225
|
Estimated amount of
contracts remaining to be executed on capital accountant
Secured loans
The working capital
facilities are secured by hypothecation of the company’s inventories by a
second charge on the company’s immovable properties
Loan from Maruti
countrywide Auto Financial Services Private Limited amounting to Rs. 0.233
Millions is secured by hypothecation of vehicle
Loan from ICICI Bank
amounting to Rs. 1.078 Millions is secured by hypothecation of vehicles
|
Corporate
identity number of the company |
U99999MH1999PTC118876 |
|
Name
of the company |
HALDEX
INDIA LIMITED |
|
Address
of the registered office or of the principal place of business in India of the company |
B-71,
M. I. D. C. Ambad, Nashik – 411010, Maharashtra, India |
|
This
form is for |
Creation
of Charge |
|
Type
of charge |
Hypothecation
|
|
Particular
of charge holder |
Citi
Bank N. A. Citi
Group Centre, C – 61, Bandra Kurla Complex, Bandra [East], Mumbai – 400051,
Maharashtra, India |
|
Nature
of instrument creating charge |
Goods
Security Agreement |
|
Date
of instrument Creating the charge |
13.07.2006 |
|
Amount
secured by the charge |
Rs.
30.000 millions |
|
Brief
of the principal terms an conditions and extent and operation of the charge |
In
consideration of Citibank N A having agreed to lend advance to the Haldex
India Limited funded and non funded facilities under the agreement and
declaration by the company inter alia, as follows : Covenant
by the company to repay the facilities at above and pay interest and all
other monies in the manner set out in the said agreement between the company
and Citibank N A and to comply with the terms and conditions of the said
agreement. |
|
Description
of the property charged indicating whether it is a charged on |
Stock
in trade and Book debts |
|
Particulars
of the property charged |
The
whole of the company’s present and future, stock of raw materials, goods in
process of manufacture, semi finished goods and all finished and manufactured
goods an articles together with all the stores, components and spares which
now belongs to or may hereafter form time to time during the continuance of
this security belong to the company and which are shall or may be brought
into stored or be in or upon or about the company’s factory, godowns. |
|
Name of the company |
HALDEX INDIA LIMITED |
|
Presented By |
Director of the company |
|
1) Date and description of instrument creating the change |
Composite
deed of hypothecation dated 05.03.2002 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.
15.000 Millions |
|
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 |
Charge
of the bank by way of hypothecation over all goods / movable property
acquired to be aquired by the company and all stock of raw materials and book
dents of the company. Hypothecation
of present and future movable plant and machineries such as SMP Drilling
machine, Impact press, hobbing machinery adjuster, broaching machine,
hydraulic press automatic. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate
of interest 13.00 % The
company will have to maintain minimum margin of 25 % |
|
5) Name and Address and description of the person entitled to the charge. |
Bank
of Maharashtra, Ambad Industrial Estate Branch, Nashik – 422010 |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
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.44.24 |
|
UK
Pound |
1 |
Rs.86.95 |
|
Euro |
1 |
Rs.57.33 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|