MIRA INFORM
REPORT
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Report Date : |
19.06.2007 |
IDENTIFICATION DETAILS
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Name : |
INDIA PISTON LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
30.07.1949 |
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Com. Reg. No.: |
951 |
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CIN No.: [Company
Identification No.] |
U35999TN1949PLC000951 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEI00016C |
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Legal Form : |
Public Limited Liability Company, Company’s Shares are
Listed on the stock Exchanges |
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Line of Business : |
Manufacturer, Importers and Distributors of Dyes Stuff,
Fine Chemicals and Pigments. |
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 2942400 |
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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 well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-44-25375871 |
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Fax No.: |
91-44-25375095 |
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E-Mail : |
gautam@indiapistons.com |
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Website : |
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Corporate Office : |
24, |
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Factory 1 : |
A -4, Industrial Estate, Maraimalai Nagar, Chennai – 603 209, |
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Tel. No.: |
91-44-26729264 |
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Fax No.: |
91-44-25375095 |
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Factory 2 : |
21/4, III cross, Sudhama Nagar, |
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Tel. No.: |
91-80-2221717 |
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Fax No.: |
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E-Mail : |
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Factory 3 : |
Ring Blank Unit, Sengandrum Industrial Area, Melrosapuram,
Singaperumal Koil – 603 204, |
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Tel. No.: |
91-4114-464372 / 64191 |
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Fax No.: |
91-4114-64372 |
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Factory 4 : |
40-6-30, Next to hotel Khandari Int., Venkateswarapuram P. O., |
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Tel. No.: |
91-866-476484 |
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Fax No.: |
91-866-470207 |
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E-Mail : |
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Branches : |
·
Kolkata ·
·
Pune ·
Mumbai ·
Ahmedabad ·
·
·
Jaipur ·
Jalandhar ·
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DIRECTORS
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Name : |
Mr A. Sivasailam |
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Designation : |
Chairman |
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Name : |
Mr N.
Venkataramani |
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Designation : |
Managing Director |
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Name : |
Mr. A.
Krishnamoorthy |
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Designation : |
Director |
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Name : |
Mr. K.V. Shetty |
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Designation : |
Director |
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Name : |
Mr. Dr.R.Mahadevan |
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Designation : |
Director |
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Name : |
Mr. A. Venkataramani |
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Designation : |
Director |
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Name : |
Mr. Dr.B.L.Ruddy |
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Designation : |
Director |
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Name : |
Mr. Dr.N.Gowrishankar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
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Designation : |
Chairman |
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Name : |
Mr. N. Venkataramani |
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Designation : |
Member |
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Name : |
Mr. K.V. Shetty |
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Designation : |
Member |
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Name : |
Mr. R. Mukundan |
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Designation : |
Associate Vice President – Finance And Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Name of
Shareholders |
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No of Shares |
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Simpson and company |
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3359948 |
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A Siva Sailam |
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10 |
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Associated Printer Madras Limited |
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10 |
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AE Limited |
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1440000 |
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A Krishnamoorthy |
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10 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Importers and Distributors of Dyes Stuff,
Fine Chemicals and Pigments. |
PRODUCTION STATUS
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Particulars |
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Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Pistons |
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36,00,000 |
46,00,000 |
41,47,387 |
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Pistons rings |
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1,50,00,000 |
1,50,00,000 |
1,33,15,667 |
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Gudgeon pins |
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30,00,000 |
27,50,000 |
38,54,204 |
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Cylinder liners |
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4,50,000 |
7,00,000 |
0 |
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Circlips |
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35,00,000 |
35,00,000 |
0 |
GENERAL INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
Central Bank Of Corporate Finance Branch, |
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Facilities : |
SECURED LOAN
UNSECURED LOAN
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s R. G. N. Price and Company Chartered Accountant |
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Address : |
Satisfactory |
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Associates/Subsidiaries : |
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Holding Companies: |
(Ultimate Holding Company) |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1,00,00,000 |
Equity |
Rs 10/- each |
Rs.100.000 millions |
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5,00,000 |
Redeemable Cumulative Preference |
Rs. 100/- each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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58,00,000 |
Equity |
Rs. 10/-
each |
Rs. 58.000
millions |
|
5,00,000 |
Redeemable Cumulative Preference |
Rs. 100/- each |
Rs. 50.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
108.000 |
108.000 |
108.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
627.600 |
611.300 |
573.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
735.600 |
719.300 |
681.600 |
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LOAN FUNDS |
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1] Secured Loans |
534.800 |
523.100 |
317.000 |
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2] Unsecured Loans |
154.200 |
152.700 |
173.000 |
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TOTAL BORROWING |
689.000 |
675.800 |
490.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1424.600 |
1395.100 |
1171.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
805.400 |
740.100 |
653.400 |
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Capital work-in-progress |
21.700 |
26.400 |
27.100 |
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INVESTMENT |
122.600 |
133.900 |
133.300 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
441.100
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365.900 |
323.100 |
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Sundry Debtors |
448.900
|
416.500 |
378.600 |
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Cash & Bank Balances |
12.100
|
12.900 |
15.900 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
241.300
|
192.600 |
157.000 |
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Total
Current Assets |
1143.400
|
987.900 |
874.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
632.400
|
445.200 |
489.000 |
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Provisions |
36.100
|
48.000 |
27.800 |
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Total
Current Liabilities |
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Net Current Assets |
474.900
|
494.700 |
357.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1424.600 |
1395.100 |
1171.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2358.400 |
2378.200 |
2174.100 |
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Other Income |
57.400 |
52.300 |
59.200 |
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Stock Adjustments |
66.400 |
11.200 |
(9.300) |
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Total Income |
2482.200 |
2441.700 |
2230.100 |
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Profit/(Loss) Before Tax |
21.800 |
77.300 |
72.200 |
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Provision for Taxation |
0.600 |
23.200 |
30.400 |
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Profit/(Loss) After Tax |
21.200 |
54.100 |
41.800 |
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Earnings in Foreign Currency : |
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Goods Exported |
259.497 |
291.625 |
NA |
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Total Earnings |
259.497 |
291.625 |
NA |
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Imports : |
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Raw Materials |
456.915 |
258.922 |
NA |
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Stores & Spares |
5.996 |
5.895 |
NA |
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Capital Goods |
66.042 |
78.434 |
NA |
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Others |
12.596 |
33.547 |
NA |
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Total Imports |
541.551 |
376.798 |
NA |
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Expenditures : |
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Employee cost |
296.100 |
305.400 |
274.500 |
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Manufacturing Expenses |
290.200 |
276.900 |
268.100 |
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Administrative Expenses |
217.400 |
246.600 |
213.800 |
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Raw Material Consumed |
932.900 |
878.800 |
779.500 |
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Excise duty |
275.800 |
267.600 |
235.300 |
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Miscellaneous expenses |
70.400 |
46.200 |
68.200 |
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Interest |
75.400 |
63.700 |
65.700 |
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Power & Fuel |
196.500 |
185.800 |
170.100 |
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Depreciation & Amortization |
105.700 |
93.400 |
82.700 |
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Total Expenditure |
2460.400 |
2364.400 |
2175.900 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
0.98 |
0.88 |
0.80 |
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Long Term Debt Equity Ratio |
0.54 |
0.51 |
0.49 |
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Current Ratio |
1.20 |
1.24 |
1.24 |
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TURNOVER RATIOS |
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Fixed Assets |
1.32 |
1.48 |
1.48 |
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Inventory |
5.84 |
6.90 |
6.74 |
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Debtors |
5.45 |
5.98 |
6.03 |
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Interest Cover Ratio |
1.25 |
2.21 |
2.10 |
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Operating Profit Margin (%) |
8.49 |
9.86 |
10.15 |
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Profit Before Interest and Tax Margin (%) |
4.01 |
5.93 |
6.34 |
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Cash Profit Margin (%) |
5.28 |
6.20 |
5.73 |
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Adjusted Net Profit Margin (%) |
0.80 |
2.27 |
1.92 |
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Return on Capital Employed (%) |
6.87 |
11.30 |
12.16 |
|
Return on Net Worth (%) |
2.29 |
8.10 |
5.10 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The company was incorporated on 30th July 1949 at Chennai in Tamilnadu having Company Registration Number 951.
FIXED ASSETS:
- Land
(freehold and leasehold)
- Buildings
- Plant and
machinery
- Electrical
installation
- Furniture and
fittings
- Vehicles
OPERATIONS
During the year under review, the Auto
industry sustained the pace of growth of the earlier years and production of
vehicles increased appreciably. Consequent to this, the Company was able to
achieve significant improvement in the volume of sales to Original Equipment
Manufacturers. The gains from this increase were, however, nullified by the
stagnation in the After Market where there was no resurgence of demand, which
continued to be low. As a result, the Company suffered a significant fall in its
After Market sales and there was no improvement in the volume of total sales
over the previous year.
The lack of improvement in the overall sales
combined with the steep increase in cost of critical inputs had a severe impact
on the profitability.
The Sales Turnover of the company for the year
under review was Rs.2358.4 millions and profit before tax was Rs.21.7 millions.
The company has already taken several
corrective steps aimed at cost reduction and has launched capex exercises for capacity
build up and production increases.
OUTLOOK
The outlook for the current year is bright as
there is no sign of any slackening in the pace of growth in the vehicles
industry and some improvement in the After Market is also expected. The
sustained investment for capex towards modernization, technology upgradation
and quality improvements has placed the company in a favourable position to
take full advantage of the increased demand in the O.E and Export segment.
Thecompany has also intensified its marketing operations to Improve After
Market sales.
SUBSIDIARY & ASSOCIATES
During the year under review IP Pins &
Liners performed well and has declared a Dividend of 30%.
IP Power Cylinder Systems Ltd. a wholly owned
subsidiary of the company continued to suffer losses due to lack of export
orders leading to complete erosion of its networth. Steps are being initiated
to merge IP Power Cylinder Systems with the Company.
IP Rings Ltd., promoted by the company, also
has performed well and had declared a dividend of 35% for the year ended 31st
March 2006. Their Associate Company, Bimetal Bearings Limited, has declared a
Dividend of 62.5% during the year under review.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.76 |
|
|
1 |
Rs.80.67 |
|
Euro |
1 |
Rs.54.58 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--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 |
|