MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
AMTEK AUTO LIMITED |
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Registered Office : |
16, Industrial Estate, Rozka Meo, Sohana, Guragaon-122103, Haryana |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
04.08.1988 |
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Com. Reg. No.: |
30333 |
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CIN No.: [Company
Identification No.] |
L27230HR1988PLC030333 |
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IEC No.: |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKA02129B |
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PAN No.: [Permanent
Account No.] |
AAFFA6185K |
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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 : |
Manufacturer and Seller of Auto Components, Forging and Scrap Sales. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 52980000 |
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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 and repute company and a part of Amtek
Group. The company is progressing well. 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. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
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Registered Office/ Factory : |
16, Industrial Estate,
Rozka Meo, Sohana, Guragaon-122103, |
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Tel. No.: |
91-124-2662456 / 26362140 / 2662140 |
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Fax No.: |
91-124-26362454 /2662454 |
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E-Mail : |
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Head Office : |
3, L.S.C., Pamposh Enclave, Greater Kailash, Part I, New Delhi-110048,
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Tel. No.: |
91-11-42344444/ 26088219/ 26061767 |
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Fax No.: |
91-11-42344400 |
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E-Mail : |
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Area : |
DIRECTORS
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Name : |
Mr. Arvind Dham |
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Designation : |
Chairman |
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Qualification : |
B. Architect, MBA |
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Name : |
Mr. D S Malik |
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Designation : |
Managing Director |
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Name : |
Mr. B Lugani |
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Designation : |
Director |
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Name : |
Mr. Rajiv Thakur |
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Designation : |
Director |
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Name : |
Mr. Sanjay Chhabra |
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Designation : |
Director |
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Name : |
Mr. M Chittaranjan Kumar |
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Designation : |
Nominee IDBI |
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Name : |
Mr. K Vaidyalingam |
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Designation : |
Nominee (LIC) |
KEY EXECUTIVES
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Name : |
Mr. Rajeev Raj Kumar |
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Designation : |
Company Secretary |
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Name : |
Mr. Sandeep Chawla |
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Designation : |
General Manager (Marketing) |
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Name : |
Mr. Ashwini Kumar Syal |
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Designation : |
Vice President - Marketing |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
41290640 |
34.40 |
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FIs/ MFs |
21692108 |
18.07 |
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FIIs |
44478760 |
37.05 |
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General Public and Others |
12577004 |
10.48 |
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Total |
120038512 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller of Auto Components, Forging and Scrap Sales. |
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Products : |
Generic Name/s of Principal Products/Services of the company are/is as under :
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Exports : |
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Countries : |
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GENERAL INFORMATION
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Customers : |
v Maruti Suzuki v John Deere v TVS Suzuki v JCB v JBML v
Case New v GE v Hero Honda v
v Mahindra & Mahindra v Tata Motors v Sanden Corp. v LML Limited v Eicher Tractors v Honda Scooters v Yamaha motors v
Bajaj Auto. |
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No. of Employees : |
4000 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Manoj Mohan & Associates Chartered Accountants |
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Address : |
Noida, Uttar Pradesh |
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Memberships : |
ACMA |
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Group Companies : |
Amtek Auto Limited Ahmednagar Forgings Limited Amtek India Limited Amtek Siccardi India Limited Amtek Tekfor Automotives Limited Amtek Gears Inc. Amtek Aluminium Castings UK Limited Amtek Castings India Limited Benda Amtek Limited GWK Amtek Limited Midwest Manufacturing Company Sigmacast Iron Limited Zelter GmbH |
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Associates/Subsidiaries : |
Ahmednagar Forgings Limited, Kuruli, Pune, Smith Jones Inc, ( |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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80000000 |
Equity Shares |
Rs.10/- each |
Rs.800.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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25783700 |
Equity Shares |
Rs.10/- each |
Rs.257.837
millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
257.800 |
240.300 |
318.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
12987.200 |
6678.900 |
1964.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
13245.000 |
6919.200 |
2282.300 |
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LOAN FUNDS |
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1] Secured Loans |
1347.200 |
1621.900 |
1928.000 |
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2] Unsecured Loans |
15078.400 |
6849.100 |
355.700 |
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TOTAL BORROWING |
16425.600 |
8471.000 |
2283.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
29670.600 |
15390.200 |
4566.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
6982.000 |
3928.000 |
2916.600 |
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Capital work-in-progress |
246.400 |
1989.200 |
238.200 |
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INVESTMENT |
3247.800 |
1014.700 |
801.500 |
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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 |
1401.000
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1180.500 |
696.200 |
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Sundry Debtors |
1195.000
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1039.200 |
782.700 |
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Cash & Bank Balances |
14218.700
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6412.800 |
133.800 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
4062.000
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1146.700 |
201.300 |
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Total
Current Assets |
20876.700
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9779.200 |
1814.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1285.200
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1135.500 |
981.000 |
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Provisions |
461.100
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271.100 |
225.700 |
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Total
Current Liabilities |
1746.300
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1406.600 |
1206.700 |
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Net Current Assets |
19130.400
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8372.600 |
607.300 |
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MISCELLANEOUS EXPENSES |
64.000 |
85.700 |
2.400 |
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TOTAL |
29670.600 |
15390.200 |
4566.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Sales Turnover |
8734.400 |
6522.000 |
5059.600 |
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Other Income |
414.900 |
415.900 |
95.500 |
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Total Income |
9149.300 |
6937.900 |
5155.100 |
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Profit/(Loss) Before Tax |
2183.400 |
1201.400 |
649.500 |
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Provision for Taxation |
547.900 |
272.900 |
128.800 |
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Profit/(Loss) After Tax |
1635.500 |
928.500 |
520.700 |
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Total Earnings |
NA |
772.200 |
NA |
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Total Imports |
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NA |
24.900 |
NA |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
78.400 |
49.500 |
40.000 |
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Administrative Expenses |
173.400 |
127.200 |
123.600 |
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Raw Material Consumed |
5408.400 |
4576.000 |
3463.700 |
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Salaries, Wages, Bonus, etc. |
418.800 |
304.600 |
253.600 |
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Interest |
202.500 |
128.100 |
177.400 |
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Power & Fuel |
164.900 |
115.900 |
94.100 |
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Depreciation & Amortization |
497.400 |
410.900 |
349.600 |
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Other Expenditure |
22.100 |
24.300 |
3.600 |
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Total Expenditure |
6965.900 |
5736.500 |
4505.600 |
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QUARTERLY RESULTS
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PARTICULARS |
30.09.2006 (1st
Qtr.) |
31.12.2006 (2nd
Qtr.) |
31.03.2007 (3rd
Qtr.) |
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Sales
Turnover |
2363.100 |
2711.700 |
3146.400 |
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Other
Income |
150.900 |
178.000 |
203.100 |
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Total
Income |
2514.000 |
2889.700 |
3349.500 |
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Total
Expenditure |
1636.000 |
1898.700 |
2241.500 |
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Operating
Profit |
878.000 |
991.000 |
1108.000 |
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Interest |
48.300 |
57.300 |
60.200 |
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Gross
Profit |
829.700 |
933.700 |
1047.800 |
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Depreciation |
132.500 |
132.500 |
163.100 |
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Tax |
78.600 |
89.300 |
100.700 |
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Reported
PAT |
508.500 |
586.800 |
653.200 |
200609
Quarter 1
Notes
Expenditure Includes (Increase)/Decrease in Stock in Trade
Rs (47.80) million Consumption of Raw Materials Rs 1430.60 million Staff Cost Rs
115.40 million Other Expenditure Rs 137.80 million Tax includes Provision for
Provision for Tax Rs 78.60 million Deferred Tax Rs 110.10 million EPS is Basic
& Diluted 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 11 Complaints disposed off during the quarter 11 Complaints
unresolved at the end of the quarter Nil 1. The above results have been
reviewed by the Audit Committee and taken on at the meeting of the Board of
Directors held on October 30, 2006. 2. Segment Reporting as defined in
Accounting Standard (AS)-17 is not applicable, since the entire operations of
the Company relates only to one segment i.e. Automotive components. 3. The Limited
Review as required under Clause 41 of the Listing agreement has been completed
by the Auditors of the Company and the related report is being submitted to the
concerned stock -14.70 -3.74% REL 484.95- -6.60 -1.34% RIL 1224.50- -8.25 -0.6
200612
Quarter 2
Notes
Expenditure Includes (Increase)/Decrease in Stock in Trade
Rs (36.60) million Consumption of Raw Materials Rs 1640.80 million Staff Cost
Rs 118.90 million Other Expenditure Rs 175.60 million Tax includes Provision
for Provision for Tax includes -Current Tax Rs 88.10 million -Deferred Tax Rs
125.10 million -Fringe Benefit Tax Rs 1.20 million Status of Investor
Complaints for the quarter ended December 31, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 08
Complaints disposed off during the quarter 08 Complaints unresolved at the end
of the quarter Nil 1. The above results have been reviewed by the Audit
Committee and were taken on record by the Board of Directors at its meeting
held on January 29, 2007. 2. The Limited Review as required under Clause 41 of
the Listing agreement has been completed by the Auditors of the Company and the
related report is being submitted to the concerned stock exchanges. 3. Segment
Reporting as defined in Accounting Standard (AS)-17 is not applicable, since
the entire operations of the Company relates only to one segment i.e.
Automotive components. 4. During the quarter, the Company has allotted
18,22,097 Equity shares of Rs 2- each at a premium of Rs 207.83 each aggregating
to Rs 382.30 million upon the conversion of FCCBs of US$ 8.75 millions. 5. The
Company had paid dividend @100% i.e., Rs 2/- per share on its paid up equity
share capital, for the year 2005-2006, amounting to Rs 24,84,06,080/- 6. The
Company has commissioned its machining facility at Nalagarh (H.P.) 7. Previous
year's figures have been regrouped, and reclassified to the extent necessary,
to confirm to the current Year's figures.
200703
Quarter 3
Notes:
EPS is Basic 1.The above results were reviewed by the Audit
Committee and were taken on record by the Board of Directors at its Meeting
held on 30.04.2007. 2.The Limited Review as required under Clause 41 of the
Listing Agreement has been completed by the Auditors of the Company and related
report is being submitted to the concerned Stock Exchanges. 3.Segment Reporting
as defined in Accounting Standard (AS) - 17 is not applicable, since the entire
operations of the company relates to only one segment i.e. Automotive
Components. 4. During The quarter, the company has allotted 3481161 Equity
Shares of Rs.2/- each at a premium of Rs.207.83 each aggregating Rs.730.500
millions upon the conversion of FCCBs of US$ 16.72 Millions. 5.There was no
investors Complaints pending at the beginning of the current quarter. Elevan
Complaints were received during the quarter and were duly disposed off. There
were no pending complaints at the end of the quarter. 6. Previous Years Figures
have been regrouped and reclassified, to the extent necessary, to confirm to
the current Years figures.
KEY RATIOS
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Debt-Equity
Ratio |
1.23 |
1.17 |
0.98 |
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Long
Term Debt-Equity Ratio |
1.23 |
1.17 |
0.90 |
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Current
Ratio |
9.72 |
4.44 |
1.30 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.20 |
1.35 |
1.36 |
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Inventory |
6.77 |
6.95 |
7.00 |
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Debtors |
7.82 |
7.16 |
7.92 |
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Interest
Cover Ratio |
11.78 |
10.38 |
4.66 |
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Operating
Profit Margin(%) |
33.01 |
26.69 |
23.25 |
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Profit
Before Interest And Tax Margin(%) |
27.32 |
20.38 |
16.34 |
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Cash
Profit Margin(%) |
24.42 |
20.54 |
17.20 |
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Adjusted
Net Profit Margin(%) |
18.72 |
14.24 |
10.29 |
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Return
On Capital Employed(%) |
10.62 |
13.38 |
20.18 |
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Return
On Net Worth(%) |
16.26 |
20.29 |
26.37 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.415.00 |
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Low |
Rs.406.10 |
LOCAL AGENCY FURTHER INFORMATION
The company’s fixed assets of important value include land & site
development, building, plant & machinery, electrical installation,
furniture & fixtures, office equipment and vehicle.
Promoted by Arvind Dham and W L Dham in the assisted sector
along with the Haryana State Industrial Development Corporation (HSIDC), A
flagship of AMTEK GROUP and incorporated in 1985. The company is a leading
Indian supplier of automotive components and its is also an integrated
automotive component manufacturer of forgings, machining and
sub-assemblies.
The subsidiaries of the company are Smith Jones Inc USA, Ahmednagar Forgings
Limited, Pune, India, Amtek Investments (UK) Limited and Amtek Investments US
(1) Inc. Further Amtek Investment US (1) Inc., has set up a wholly owned
subsidiary Amtek Gears Inc.
The company supplies over 300 varieties of components and assemblies to leading
domestic and global vehicle original equipment manufacturers. The company has
three plants in Haryana, one plant in Karnataka and one plant in
Mandideep.
A public issue was made in 1988 to part-finance its Rs 36.900 millions project
to manufacture 0.5 million connecting rod assemblies pa. In 1991-92, the
company increased its capacity by 0.25 million at a cost of Rs 27.9 million
(fully financed by loans). In 1995, it integrated backward by commissioning a
forging line and expanded the capacity for connecting rods from 0.75 million to
0.12 million. To part-finance this, it raised Rs 108.2 million through private
placement.
In 1995-96, the company has completed its expansion plan leading to substantial
increase in production capacity for the manufacture of connecting rods. It
enhanced its forgings capacity from 1500 tpa to 7500 tpa. The company all
plants were accredited with ISO 9002 certification for quality systems.
In 2000-01 a hitech company was acquired by Amtek which has a state of the art
of Italian presses to produce high quality forgings.The company is having
technical assistance with Japan's biggest manufacturers of Connecting Rods
namely Aizen Company Limited Japan. Another technical alliance is that between
M/s Ateliers Siccardi of France for manufacturing upto six-throw Crank
Shafts.
The paid up equity was increased during the year 2002-03 from Rs.77.5 millions
to Rs.154.9 millions.The company had issued Bonus shares in the ratio of 1:1
and consequent of this bonus issue, the paid up has been increased.
During the year 2002-03,the company has acquired two companies(Ahmednagar
Forgings Limited, Pune & Smith Jones Inc of
During December 2004, Amtek Investment UK Limited, a 100%
Amtek Gears Inc has set up a Ring Gear unit at
In October 2004 the company has sub-divided its equity share face value from
Rs.10/- per share to Rs.2/- per share.
During 2004-05 the company has increased its installed capacity of Machined
Auto Components and Forgings by 2.180 Nos (in Millions) and 18500 TPA respectively.
With this expansion the total installed capacity of Machined Auto Components
and Forgings has increased to 17.5 Nos (in Millions) and 60000 TPA
respectively.
PERFORMANCE
During the year under review, the Company has recorded a total income of Rs.
8949.632 Millions as against a total income of Rs. 6710.664 Millions, thus
recording a growth of 33.36% of over the previous year. The Profit after Tax of
the Company for the year at Rs. 1635.503 Millions as against the Profit after
Tax of the Previous Year of Rs. 936.948 Millions has also shown a growth of
74.56% of over the previous year. The reserve position of the co. is Rs.
12987.219 Millions.
AWARD
During the year under review, the Company has been awarded with 'Economic Times
Emerging Company of the year Award' by Hon'ble Prime Minister of India Dr.
Manmohan Singh on 6th October 2006.
The Company has also featured in the Business World magazine's list of the
fastest wealth creating companies in the
NEW FACILITIES
The Company is in the process of setting up of following new facilities to meet
the increased demand of the Indian and Overseas customers:-
2 Heavy forging facilities at Dharuhera and Pune - 6000 Ton and 4000 Ton
Presses, respectively.
Expansion of existing forging facilities at Gurgaon and
Large machining facilities at Pune for Crankshafts, Stub axles, suspension and
chassis parts and connecting rods.
Large scale Aluminium gravity and high pressure die casting facilities at
Ranjangaon near Pune.
Integrated forging, casting and machining facilities at Bhiwadi.
FUTURE PLANS
Over the last few years, acquisition was one major growth drivers for the
company. Now the Amtek is working on an integration plan aiming at realizing
the benefits of market, operational technical synergies by way of assimilation
of best practices & capabilities amongst the Indian & Overseas
operation.
A comprehensive integration program has been established along with well
defined integration terms on both sides to achieve:-
Market & customer strategy
Outsourcing strategy and time plan
Technology transfer best practices
Qualities benchmarking
Information & communication strategy
SUBSIDIARY
COMPANIES
As of 30th June 2006 the Company has seven subsidiaries i.e. Ahmednagar
Forgings Limited, Pune, Smith Jones Inc., USA, Amtek Investments U.K. Limited
(UK), Benda Amtek Limited, Amtek Siccardi India Limited, Amtek Deutschland
GmBh, Germany and Amtek Investments U.S. 1 Inc. U.S.A.
Pursuant to the provisions of Section 212 of the Companies Act, 1956, the
Audited Accounts for the year ended 30th June 2006 together with the reports of
the Directors and the Auditors and also the Statement under the said Section of
the following subsidiaries are attached to the Balance Sheet of the
Company:-
Ahmednagar Forgings Limited - Smith Jones Inc. (
ACQUISITION
BENDA AMTEK LIMITED
During the year ended 30th June 2006, the Company acquired 1,04,86,860 equity shares,
representing 89.41% of equity stake of Benda Amtek Limited, at a price of
Rs.61.55 per share. Earlier, the Company was holding 8,46,750 equity shares
representing 7.22% of the paid up capital of Benda Amtek Limited. The Company,
after acquisition of shares as above, holds 96.63% of the paid up capital of
the Company.
Benda Amtek Limited (BAL), as an existing profit making dividend paying Company
is, engaged in manufacturing of high precision engineering automotive
components mainly flywheel ring gears / assemblies for application to cars,
two-wheelers, LCV, HCV, and stationary engines. The Company waS incorporated in
technical and financial collaboration with M/s Benda Kogyo Company Limited of
Japan along with buy back arrangements: The company is one of the largest
manufacturer of flywheel ring gears in the country and is an OEM supplier to
Maruti Udyog Limited, Hero Honda, LML, ILJIN (Hyundai), Escorts, Eicher,
Mahindra, Telco, Hyundai, New Holland Tractors, L&T John Deere, Yamaha,
Bajaj Auto, Simpson, Hindustan Motors, Honda Scooters, and Sumitomo Corporation
etc. The company is a major Supplier in the replacement market too.
AMTEK SICCARDI INDIA LIMITED
During the year under review, the Company acquired 99,22,400 equity shares
representing 100% equity stake of Amtek Siccardi India Limited at a price of
Rs.88 per share. After the acquisition, Amtek Auto Limited holds 100% equity
stake of Amtek Siccardi India Limited.
Amtek Siccardi India Limited (ASIL) existing profit making company is engaged
in manufacturing of high precision engineering automotive components mainly
crankshafts for application to two wheelers, tractors, LCV, HCV, passenger cars
and stationary engines. Amtek Siccardi is the second largest manufacturer of
Crankshafts assemblies in the country. Crankshaft is an important part of
combustion engine which converts reciprocating motion of the piston into rotary
motion with the help of connecting rod. Crankshaft is one of the most important
components of engine and the efficiency of the engine largely depends on the
performance and technology of the Crankshafts. Amtek Siccardi uses the modern
concept of manufacturing, in a new automotive market scenario which is
characterized by high variety at low volumes.
The company is the largest manufacturing of crankshafts assemblies in Northern
India and is OEM supplier to Eicher, New Holland Tractor, Mahindra &
Mahindra, Fiat India, L&T John Deere, Yamaha, Maruti Udyog Limited, ILJIN
(Hyundai), Hero Honda, LML, TVS Suzuki, Ashok Leyland, Honda Scooters and
Piaggio etc. The company is a major supplier in the replacement market
too.
Overview
The Liberalisation of the Indian economy has created significant opportunities
for growth in the Indian automotive industry. The demand for vehicles across
various segments of the automobile section has grown significantly, with
improvements in technology and increased choice of models for the Indian
consumer as a result of intense competition in the market. Additionally, global
OEMs are focusing on design, assembly & marketing and outsourcing to
countries such as
Subject is associated with the who's who of the global automobile industry and
has created a formidable position for itself in high precision critical engine,
transmission and suspension components and assembly manufacturing. Subject has
also created leading position for itself in the forging, HPDC aluminium and
iron casting and their machining and assembly. Among the biggest customers in
India Amtek has Maruti Suzuki, Hero Honda, Honda, TATA Motors, Bajaj Auto,
Hyundai, JOHN Deere, Eicher and New Holland. Amtek also has global customers
like Ford, DCX, Citroen, Renault, Honda, Briggs & Stratton, GM etc.
Presently, subject has become highly integrated International automotive
manufacturer of engine, transmission & suspension parts and assemblies. The
Company has forging, iron casting, alumiuium castings, machining and assembly
operation within its different units and subsidiaries. With the help of
acquisitions and setting up of new facilities and expansion of existing units,
the Company has achieved following position in the Indian and Global auto
components market :-
One of the Largest flywheel ring gear manufacturer in the world.
One of the largest manufacturer of turbocharger housings in the world.
One of the Largest manufacturer of Piston Connecting Rod modules & gear
shifter forks in
One of the largest manufacturer of forgings, iron castings, HPDC Aluminium
castings in
Industry Structure &
Developments
The Indian Automotive Component Industry is 'Engine of Growth driving the
Indian Manufacturing Sector.'
The Indian Automobile Components Industry is an example of a successfully
nurtured infant industry. Slowly, but surely, the sector is emerging as the
next big business opportunity for Indian companies as global original equipment
manufacturers (OEMs) hike procurement plans and domestic companies
expand.
Industry Turnover:
The Automotive Component Industry's output amounted for the financial year
2005-2006 was US$10 billion with a growth rate of 15% against financial year
2004-2005.
Exports:
The industry has been exporting around 18% of its output and growing at the
rate of 28% per annum. In the year 2005-2006, industry has exported US$1.8
billion versus US$1.4 billion in the year 2004-2005.
Export of auto components from
According to Auto Component Manufacturers Association (ACMA)- McKinsey study,
India can achieve a 3-4 per cent share of the potential sourcing market
(estimated by them at US$700 billion) by 2015 given the India's strengths,
especially its competitiveness in manufacturing labour intensive,
sill-intensive parts and parts in evolving technology aggregates among
others.
Quality:
The industry has been making rapid strides towards achievement of world class
Quality Systems by imbibing ISO 9000/IS014001/QS9000/TS16949 qualities
systems.
OUTLOOK
The future automotive growth potential is huge because presently the Indian
passenger car market is far from being saturated - leaving ample room for voluminous
growth.
Considering the continuous growth in automobile industry, capital goods
industry and overall health of the Indian economy, the Company expects
continuous high demand from various industries. This may result in increased
profitability and margins. The macro economic fundamentals look strong and the
company can leverage it for accelerating its growth. The market leadership,
coupled with product quality, global group support and financial strengths,
shall provide excellent opportunities for growth in the domestic as well as
international market in the years to come.
Website
Details :
Subject, incorporated in 1985 is
currently engaged in manufacturing of a wide range of components for automotive
applications mainly for use in engine, transmission and suspension systems. The
major categories of components include connecting rod assemblies (largest in
India), steering knuckles, suspension and steering arms, CV joints, crankshaft
assemblies for two-wheelers, torque links, machined aluminum case components
and a wide range of precision forgings.
The Company is a Tier-1 vendor and is a OEM supplier to Maruti Suzuki, John
Deere, TVS Suzuki, JCB, JBML, Case New Holland, GE, Hero Honda, Hindustan
Motors, Mahindra & Mahindra, Tata Motors, Sanden Corp., LML Limited, Eicher
Tractors, Honda Scooters, Yamaha motors, Bajaj Auto.
Subject has expanded its manufacturing setup from a single manufacturing
facility to a multi-location setup and today it operates from the following
facilities:
Amtek Auto Limited: Unit I – TS 16949 / QS 9000
Amtek Auto Limited: Unit II – TS
16949 / QS 9000 / ISO 14001
Amtek Auto Limited: Unit III –
QS 9000
Amtek Auto Limited: Unit IV
(Bhopal) - QS 9000
Amtek Auto Limited: Unit V
(Dharuhera) - QS 9000
Amtek Auto Limited: Unit I - TS 16949 /
QS 9000
AAL - Unit I, the first manufacturing facility of the
company was commissioned in 1988. Located near Sohna in Haryana, caters to a captive
demand for engine connecting rod assemblies and aluminium case housings. the
manufacturing facility at AAL Unit-I was modernized from a SPM (Special Purpose
Machine) setup with very low flexibility to GPM (General Purpose Machine) and
CNC (Computerized NUmeric COntrol) Machine setup with a greater flexibility in
manufacturing.
The Unit-I division supplies to Maruti Suzuki, Escorts Yamaha, Eicher Motors,
Subros, Hindustan Motors and Eicher Tractors.
Amtek Auto Limited Unit II - TS 16949 / QS 9000 / ISO 14001
This facility was established with a technical collaboration
with Material Forming Technologies, Sheffield U.K, as a backward intergration
unit for the machining units of the company. It is a closed die press forging
facility located in Gurgaon. This plant is equipped with state-of-the-art
forging presses imported from
Besides catering to the in-house demand for high quality forgings of Amtek's
machining units, this unit also supplies to external customers.
This Unit is OEM supplier to Hero Honda, Yamaha Motors, Hindustan Motors, JCB,
JBML, Musashi Auto Parts and LML.
Amtek Auto Limited Unit III - QS 9000
In view of the changing needs of the customers and an unflinching commitment to
constant product improvement and global quality standards, AAL Unit III, certified
for QS 9000 was established in a technical collaboration with Aizen Limited,
This unit is OEM supplier to Maruti Suzuki.
Amtek Auto Limited: Unit IV (
Located in
This unit is OEM supplier to companies like Hero Honda, TVS Group, Bajaj Auto,
LML, Honda Scooters, Hyundai Motors and Hindustan Motors etc.
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.44.01 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.55.04 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
65 |
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 |
|