MIRA
INFORM REPORT
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Report Date : |
28.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SKF INDIA LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
12.04.1961 |
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Com. Reg. No.: |
11980 |
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CIN No.: [Company
Identification No.] |
L29130MH1961PLC011980 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS00975C |
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PAN No.: [Permanent
Account No.] |
AAACS0684H |
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Legal Form : |
It is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. Subject is a 51% subsidiary of |
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Line of Business : |
Manufacturing of Ball Bearings, Roller Bearings and Textile Machinery Components. |
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 16000000 |
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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 reputed company and a part of SKF
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 : |
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Tel. No.: |
91-22-66337777 |
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Fax No.: |
91-22-22042738/ 22819074 |
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E-Mail : |
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Website : |
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Factory 1 : |
Chinchwad, Pune, |
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Factory 2 : |
Bommasandra, |
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Branches : |
Located at : v
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Chennai v
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Gurgaon v
Kolkata v
Pune |
DIRECTORS
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Name : |
Mr. Kamlesh C Mehta |
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Designation : |
Chairman |
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Name : |
Mr. Rakesh Makhjia |
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Designation : |
Director |
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Name : |
Mr. Giuseppe Donato |
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Designation : |
Director |
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Name : |
Mr. Christer Gyberg |
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Designation : |
Director |
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Name : |
Mr. Narendra J Jhaveri |
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Designation : |
Director |
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Name : |
Mr. Philip Knights |
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Designation : |
Director |
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Name : |
Mr. Darius C Shroff |
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Designation : |
Director |
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Name : |
Mr. Tryggve Sthen |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Pradeep Bhandari |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Ball Bearings, Roller Bearings and Textile Machinery Components. |
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Products : |
Generic names of the principal products of the company are:
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Exports : |
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Products : |
Ball bearing and roller bearings |
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Countries : |
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Imports : |
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Products : |
Ball bearings, roller bearings and other special bearings |
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Countries : |
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GENERAL INFORMATION
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Customers : |
Some of its major customers are as under : v
Maruti India Limited v
TELCO v
Ford India Limited v
Fiat |
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No. of Employees : |
2161 |
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Bankers : |
v
Bank of v
Bank of v Citibank NA, Mumbai v Standard Chartered Grindlays Bank, Mumbai v Hongkong and Shanghai Banking Corporation Limited, Mumbai v Punjab National Bank, Mumbai |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
BSR & Associates Chartered Accountants |
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Memberships : |
Confederation of Indian Industry |
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Parent Company : |
SKF AB, The company is the world leader in bearings and has an annual turnover of around SEK37bn. The company was formed in 1907 when it invented self-aligning ball bearing. Almost all the bearings available in the market today are designed and developed by the company. Its business at present is in over 130 countries and 90% of its turnover comes from overseas ventures |
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Associates/Subsidiaries : |
CR Seals India Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.10/-each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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52730000 |
Equity Shares |
Rs.10/- each |
Rs.527.300
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
527.300 |
527.300 |
452.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3695.300 |
2946.300 |
2112.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4222.600 |
3473.600 |
2565.300 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
62.200 |
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2] Unsecured Loans |
1.400 |
1.900 |
3.000 |
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TOTAL BORROWING |
1.400 |
1.900 |
65.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4224.000 |
3475.500 |
2630.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1577.000 |
1114.600 |
1169.700 |
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Capital work-in-progress |
264.700 |
360.000 |
68.700 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
1510.700 |
1391.900 |
1250.700 |
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Sundry Debtors |
1648.700
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1031.500 |
751.500 |
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Cash & Bank Balances |
1627.600
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1132.100 |
1007.000 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
522.500
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518.500 |
542.300 |
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Total
Current Assets |
5309.500
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4074.000 |
3551.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2466.100
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1632.700 |
1802.400 |
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Provisions |
461.100
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440.400 |
357.000 |
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Total
Current Liabilities |
2927.200
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2073.100 |
2159.400 |
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Net Current Assets |
2382.300
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2000.900 |
1392.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4224.000 |
3475.500 |
2630.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Sales Turnover |
14895.200 |
8974.700 |
6775.800 |
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Other Income |
230.000 |
708.500 |
399.100 |
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Total Income |
15125.200 |
9683.200 |
7174.900 |
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Profit/(Loss) Before Tax |
1531.400 |
1030.500 |
883.300 |
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Provision for Taxation |
511.800 |
389.800 |
317.200 |
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Profit/(Loss) After Tax |
1019.600 |
640.700 |
566.100 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
751.200 |
644.600 |
498.300 |
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Administrative Expenses |
642.600 |
525.400 |
439.200 |
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Raw Material Consumed |
8789.500 |
4518.900 |
2820.500 |
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Miscellaneous Expenses |
400.400 |
337.700 |
220.400 |
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Salaries, Wages, Bonus, etc. |
989.900 |
932.800 |
868.800 |
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Interest |
13.100 |
5.500 |
40.200 |
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Power & Fuel |
230.000 |
204.000 |
195.300 |
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Depreciation & Amortization |
288.200 |
259.300 |
259.600 |
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Other Expenditure |
1488.900 |
1224.500 |
949.300 |
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Total Expenditure |
13593.800 |
8652.700 |
6291.600 |
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QUARTERLY RESULTS
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PARTICULARS |
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31.03.2007 (1st
Qtr.) |
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Sales Turnover |
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3598.200 |
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Other Income |
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16.500 |
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Total Income |
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3614.700 |
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Total Expenditure |
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2993.100 |
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Operating Profit |
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621.600 |
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Interest |
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(26.000) |
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Gross Profit |
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647.600 |
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Depreciation |
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74.100 |
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Tax |
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181.600 |
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Reported PAT |
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366.600 |
200703 Quarter 1
Notes:
EPS is Basic Status of Investor Complaints for the quarter ended March
31, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. Prior year's figures
have been regrouped wherever necessary to conform to current year's
classification. 2. The Company is of the view, that it manufactures bearings
and other related components which is a single business segment in accordance
with AS-17. 3. The Company has changed the method of valuation of inventories
from weighted average to FIFO w.e.f. May 01, 2006 which does not materially
affect the profits. 4. Effective January 01, 2007, the company adopted the
revised accounting standard 15 on 'employee benefits'. Pursuant to the
adoption, there is no difference in the obligations of the Company. 5. The
above financial results were reviewed by the audit Committee and approved by
the Board at its meeting held on April 26, 2007.
KEY
RATIOS
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PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Debt-Equity Ratio |
0.00 |
0.01 |
0.11 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.09 |
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Current Ratio |
1.88 |
1.78 |
1.50 |
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TURNOVER RATIOS |
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Fixed Assets |
2.54 |
1.64 |
1.26 |
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Inventory |
10.26 |
6.79 |
6.18 |
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Debtors |
11.11 |
10.07 |
9.00 |
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Interest Cover Ratio |
117.90 |
188.36 |
22.97 |
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Operating Profit Margin(%) |
12.30 |
14.43 |
17.46 |
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Profit Before Interest And Tax Margin(%) |
10.37 |
11.54 |
13.63 |
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Cash Profit Margin(%) |
8.78 |
10.03 |
12.19 |
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Adjusted Net Profit Margin(%) |
6.85 |
7.14 |
8.35 |
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Return On Capital Employed(%) |
40.12 |
33.93 |
35.23 |
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Return On Net Worth(%) |
26.50 |
21.22 |
24.02 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.440.00 |
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Low |
Rs.427.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 12th April, 1961 at Mumbai in
The name of the company was changed to the present with effect from 1st
October, 1987.
During the year 2000, the company sold its Head Office in Mumbai and the
same was relocated.
Subject is a subsidiary of SKF,
Its product-mix comprises self-aligning, self-resistance ball bearings
and over 100 types of bearings. The company has a well established export
market in Europe and the
The company invested Rs. 1000 millions for modernisation and upgradation
of existing facilities, at Pune. The focus was quality improvement,
productivity increase and volume expansion. As a part of Pune-2000 project, a
new production channel for manufacturing of wheel HUB units for the Indian car
market is also been installed.
It has formed two new technology ventures-aptitude Industrial Decision
Support and Industrial Wireless Technologies. These ventures formed within its
service division and supports company’s efforts in building a leadership
position in high technology solutions. The upgradation programme at Pune Plant
at a cost of Rs. 1300 millions established this plant as a world class
manufacturing unit, equivalent to it’s world wide quality standards.
Subject has expanded the installed capacity of Ball and Roller Bearings
during the year 2003 by 1.600 millions (Nos.) and with this expansion the total
capacity has been increased to 72.600 millions (Nos.)
BUSINESS
The company is engaged in manufacturing of ball bearings, roller
bearings and textile machinery components.
Subject is the largest domestic manufacturer of bearings with around 30%
market share.
It manufactures ball bearings and taper roller bearings and textile
machinery. It also trades in large
bearings imported from its parent company.
The company also manufactures textile components and accessories and
spares for spinning machines at its Pune Plant.
OPERATIONS:
The
various proactive measures and initiatives enabled the Company to sustain yet
another year of healthy growth. The significant milestone achieved by the
Company is that its Sales surpassed the Rs. 10 billion mark reflecting the
growing intrinsic strength of the Company. The sales for the year grew by 71.8
per cent to Rs. 13425 million while operating profit at Rs. 1460 million
(Profit before interest, reversal of provision and tax) registered a growth of
more than 42.6 per cent over the pervious year. The sales of the current year
includes the full effect of sales under the Direct Customer Delivery model as
compared to the Direct Import Model of sales in the previous year and are
therefore not strictly comparable with the previous year. The Company remains a
zero debt company. There are no long-term or short-term borrowings. The
earnings per share and cash earnings per share for the year under review was
Rs. 19.3 and Rs. 24.8 respectively.
The export sales recorded a growth of 43.8 per cent over the previous year and
contributed 5.2 per cent in overall composition of sales. The result
demonstrates the capabilities of the Company to leverage growth opportunities
in its business by synergising and blending its competencies.
Industry Structure
& Development:
Bearings form an integral component used in the rotating part of virtually
every industry. Bearings are 'the Essential items' required to reduce or
eliminate the friction between moving parts. Depending on the application there
are different principles on which these bearings are designed and run. The
automobile industry is the major user segment for bearings, followed by general
engineering, heavy industries and railways.
Bearing Industry in
Opportunities:
The demand for bearing industry is derived from demand in two key user segments
- automotive and industrial sector. The automotive industry is the largest user
segment for Indian bearing market accounting for almost 50 per cent of demand.
Infrastructure has received a filip in the last few years through N-S-E-W
corridor and Golden Quadrilateral projects. Improvement in rural roads too is
becoming visible under the Pradhan Mantri Gram Sadak Yojana. The transformation
of road transport industry through these initiatives has led to higher demand
for commercial vehicle industry. Passenger cars and two wheelers continue to
grow in double digit driven by rising aspiration levels and easy availability
of finance.
Demand for bearings has a close correlation to the growth in the manufacturing
sector. The Indian economy is growing at more than 9 per cent with the growth
in manufacturing segment being around more than 10 per cent. This growth has
spurred capital investments in many sectors for creating fresh capacity to meet
the growing demand. All forecasts for the coming years show that the buoyancy
in overall growth trend is expected to continue. The company aims to leverage
the upturn in the economy, its market leadership and financial strength for
continuous strong growth.
The rapid industrial growth in the last few years has resulted in the shrinking
of surplus capacities across all industries and new capacity expansion projects
coupled with investments in infrastructure are driving the demands of the
capital goods segments.
Segment-wise
Performance:
The Company operates in a single segment namely in Bearing and related
components. The Company is the market leader in the bearing industry and is the
main bearing supplier to all the user segments. The past trend for the
organized bearing industry in value terms for the last three fiscal years is as
under:
Note:
The above said figures do not discriminate between types and value addition of
individual bearing products and do not consider the figure of unorganized
sector and therefore figures may not provide an accurate assessment of the
industry position and growth of subject.
Outlook for 2007:
Operational
risk:
The Company caters to the various user industries that are at different stages
of economic cycle. A general economic downturn could obviously reduce the
demand for the products, solutions and services. Automotive industry is major
end user of the Company's products, which in turn is a cyclical industry and is
normally regarded as an industry with strong price pressures.
To reduce the operational risk, the company is moving beyond bearings to become
a true knowledge engineering company, providing an integrated value driven
solution to their customers, where Subject can impact their productivity and
competitiveness. Also, there is a focus on the aftermarket segment, whose
demand will relatively be lesser affected in case of downturn in economic
cycle. The focus in the aftermarket has been in terms of increasing the penetration
across the country by strengthening the dealer network and increasing the
product offerings through the dealers.
Competition risk:
Intense competition from the unorganized sector in the domestic industry along
with cheap imports of bearings from
The Company is fully equipped to take on the tough international competition
with the continued support of AB SUBJECT. The company's approach of partnering
with customers by leveraging the Five Platforms has been able to demonstrate
substantial value addition to the customer and ensures that customers work with
SUBJECT on an ongoing basis. In the OE segment, the company is ensuring
customer entanglement at the early stage of new product development to
effectively counter the competition threat.
Financial risk:
The Company operations are exposed to various types of financial risks. The
main risks here are the currency risk, interest risk, liquidity risk and credit
risk. The monitoring of market factors on ongoing basis helps in either
eliminating or minimizing risk.
Litigation risk:
The outcome of litigation in matters of tax law or in any other statutory
obligation cannot always be predicted and therefore poses a risk. In this context,
too, insurance policies limit the risk for the Company.
Discussion on
Financial Performance with respect to Operational Performance:
The Company has crossed the landmark sales figure of Rs. 10 billion during the
year. The total sales of the Company was Rs 13425 million recording an overall
growth of 71.8 per cent in sales over the previous year. The sales of the
current year includes the full effect of sales under the Direct Customer
Delivery model as compared to the Direct Import model of sales in the previous
year and are therefore not strictly comparable with previous year. The robust
sales performance came from a continuous focus on identifying, creating and
delivering value to their customers, continuous thrust on product development,
focused attention to new products and partnering with customers and suppliers.
The performance is the result of their ability to work closely with customers
and delivering a total solution based on Subject's portfolio of world-class
products, solutions and services. The
During the year under review export sales registered an overall growth of 43.8
per cent in sales constituting 5.2 per cent of overall sales. The Company
achieved yet another milestone by crossing Rs 1000 million of profit during the
year. Effective cost management, business process optimization, vendor
development initiatives and optimum utilization of cash resources have resulted
into further improvement in 42.6 per cent in profit before interest and tax and
59.1 per cent in net profit after tax over previous year.
The Company remains a zero debt company. There are no long-term borrowings.
Short-term borrowings are restricted to need based working capital
requirements. The Company has created an excellent track record of efficient
management of working capital. Net cash flow from operating activities during
the year was Rs 1277 million. The ratio of inventory to sales 11.3 per cent and
receivables to sales 12.3 per cent has improved from 17.8 per cent and 13.2 per
cent respectively from previous year.
Industrial Relations and Human Resource
Management:
The Company considers human resources as the key to achieving its vision and as
the primary source of competitive advantage. Employees are valuable resources
who are the strength of an organization in its growth, prosperity and
development. The company has put in place various systems to reward and
recognize employee contribution towards the growth of the Company.
Training is an important lever to enhance the capabilities of people and the
performance of the organization.
Necessary training programs are arranged to bridge the gap between
existing skills and desired skills of the employees in line with organizational
needs which includes understanding and utilizing new technology,
inter-functional knowledge, safety awareness, etc. The company is continuously
striving to create an appropriate climate, opportunities and systems to
facilitate identification, development and utilization of their full
potential.
The Company has laid down an effective and transparent Performance Management
System (PMS) to track, monitor, enhance performance and reward achievements.
The Company believes in promoting a culture of meritocracy through an approach
of performance linked bonus and rewards. PMS starts with tasks and targets of
Top management team drawn from the Business plan formulated at the beginning of
the year.
During the year under review, industrial relations continued to be cordial and
peaceful. The Company had 2024 employees on its rolls as on December 31,
2006.
FINANCIAL
PERFORMANCE & RATIO ANALYSIS:
Sales Growth:
Sales Growth is a primary indicator of the company's potential in market place.
Sales comprise of products and services sold by the company in domestic and
export markets that are either manufactured locally or purchased from various
indigenous and up-country sources. Apart from export sales, about one-third of
domestic sales are made through the distributors, which are spread through out
the country and remaining constitutes sales to original equipment manufacturers
and replacement market. The export sales are mainly to the affiliates of the
SKF Group world over. Driven by the foremost corporate value of customer focus,
the Company achieved a new milestone of sales over Rs.10 billion to 13425
million showing a phenomenal growth of 72% as compared to previous year. The
sales of the current year include the full effect of sales under the Direct
Customer Delivery model as compared to the Direct Import model of sales in the
previous year and are therefore not strictly comparable with previous year. The
ratio of domestic sales to export sales during the year is 95:05. During the
year, the growth in domestic sales was 74% while in export sales it was 44%.
The Company enjoys a position of preferred supplier in the market segment it
represents.
Sales/Employee Efficiency: Human Capital is one of the key resources for any
business organisation and Sales/Employee Efficiency ratio indicates the
efficiency of employees in improving sales. Inspite of increase in revenue by
330% during the last five years, the number of persons in employment with the
company has remained more or less the same.
Operating Profit:
The Operating Profit is a measurement of the money the company has generated
from its own operations and is a standard value used to analyse the ability of
a company to generate cash from operations. The Company is virtually a
zero-debt company. Operating Profit of the Company during the current financial
year has increased to 1460 million as compared to previous year 1024 million showing
a substantial growth of 43%.
Six Sigma:
Since 2003, Subjecthas strived to make the Six Sigma culture a backbone of
their company. Over the last three years, the successful deployment of Six
Sigma methodology has contributed in increasing profits by eliminating
variations, defects and waste that undermine customer loyalty and increase
customer responsiveness. They are proud to acknowledge that 50 per cent of
their managerial employees are now Six Sigma trained; a feat that has resulted
in hard savings of 138 MINR in 2006, and in-total 290 MINK from the start of
the initiative.
During the year they initiated a structured process of 'Creating Culture of
Innovation' in the organization. Objective of the initiative is to involve
every one in the organization to give ideas and generate innovative solutions
to the problems across the organization.
Their focus is to identify the pain areas of customers and subsequently work
closely with them for addressing these pains, using their expertise in Six Sigma
methodology, innovative solutions and the 5 technology platforms of Subject. In
2006 they were successful in implementing this approach with a set of select
customers. This in turn resulted in considerable savings to the customers and
thus helped SUBJECT to build along-term partnership with them. In years to come
they look forward to extending this approach to their other customers.
They also extended the Six Sigma methodology towards supplier's pain areas by
taking a few improvement projects jointly with certain select suppliers. Most
of them were successfully concluded with substantial improvements at the
supplier's end.
Their key intent is to create and capture value in the element of business,
starting from Customers, their Factories and Suppliers, through structured Six
Sigma methodology and innovative solutions.
SKF India's Six Sigma projects have won us acclaim in the industry, and they
have received various awards from partners such as Toyota Kirloskar Motor
Suppliers Association, IMTMASIEMENS and trade associations such as the Indian
Machine Tool Manufacturer's Association. Apart from focusing on the completion
of several existing projects over the next two years, the main target for 2007
will be to build systematic review processes at a functional level and to
engage in replication of successful projects.
At SKF India, quality is no longer the domain of quality professionals but an
attribute that is characteristic to each and every individual in the
organization.
SUSTAINABILITY:
Subject takes great pride in initiating various activities that reflect
Subject's sustainability drive.
Subject continues to contribute towards Nachiket Balgram - an orphanage that
provides educational facilities to 55 children up to Class IV. They strive to
better the lives of these children by providing them with basic amenities such
as beddings, raincoats, academic and sports material, and food grain for the
orphanage.
Subject also continues to contribute to Udyogdham - a shelter for children of
leprosy patients.
Subject believes that sports present a world of opportunities to children.
Keeping this in mind, they are proud to have partnered with the Gothia Cup, a
platform that allows children from across the world to showcase their talent in
football. Subject sponsored football matches for children from municipal
schools in Chinchwad, Pune. The winning team will now represent
The sports academy for cricket and football, instituted by Subject for children
from underprivileged families continues to provide a platform that allows them
to direct their energies into a constructive and productive activity. The
children from the sports academy have worked very hard at honing their skills,
and in fact, the football team emerged as the winning team from
Commenting on sports academy one of the parents, Sanjay Nikte, a tailor by
profession, very proudly said, ' The game of football and SKF Sports Academy
have changed the life of my child and that of my family. He has become vary
disciplined, focused & honest. I am very grateful to SUBJECT for shaping my
son's life and for giving us a new hope'.
Coach Rajendra Panhalkar, the motivating force behind these young talented
boys, said, 'It gives me a sense of satisfaction and pride to associate with
the noble cause of
In keeping with their theme of a sustainable future, they have recently started
another initiative - Rain-Water Harvesting in their factory locations in Pune
and
The company has been accredited with ISO 9002 and ISO 14001
Certifications.
It is in trade terms with
v
A Engineering Works
v
A to Z Turners
v
R. Enterprises
v
Akshay Tools
v
Aparna Lining Private Limited
v
Hat Rubbers
v
Ideal Industries
v
S. J. Tools
v
Saab Enginnering
v
Samu Machiners
v
Sb Alloys
v
Sesha Industries
v
Instrument Research
v
Raj Lubricants
v
Aman Powder Coats
v
Gupta Electrical Industries
v
Greatex Engineers
v
Indian Engineers
v
Indian Precision Engineering
v
Industrial Punches
Subject's parent company has manufacturing bases in
The company has obtained the QS 9000 certification, which would help it
to do business with global majors like GM, Ford, Chrysler-Benz etc.
The company's fixed assets of important value include land - freehold,
buildings, plant, machinery and tools, furniture, fixtures and office
equipments and vehicles.
Incorporated in 1961, subject a subsidiary of SKF,
Its product-mix comprises self-aligning, self-resistant ball bearings and over
100 types of bearings. The company has a well-established export market in
Europe and the
During 1998-99, The company invested Rs. 100 crore for modernisation and
upgradation of existing facilities, at Pune. The focus was quality improvement,
productivity increase and volume expansion. As a part of Pune - 2000 project, a
new production channel for manufacturing of wheel HUB units for the Indian car
market is also been installed. In the year 2000, the company completed the
Pune-2000 Project.
It has formed two new technology ventures - aptitude Industrial Decision
Support and Industrial Wireless Technologies. These ventures formed within its
service division, and supports company's efforts in building a leadership
position in high technology solutions. The upgradation programme at Pune plant
at a cost of Rs.1300 million established this plant at a world class
manufacturing unit,equivalent to Subject's world wide quality standards.
The company acquired the business of VEC (Vibration Engineers and Consultants
Private Limited and the company launched SKF Application Development Centre in
In 2005, the company expanded its installed capacity of Ball and Roller
Bearings by 7880000 Nos. The installed capacity of Ball and Roller Bearings
increased to 83411000 Nos.
News Release :
SKF
2007-05-02, 05:32CET
SKF India to invest Rs 150 crores in New Uttarakhand Plant
Expands production capacity to meet growing customer demand across
Mumbai 26th April, 2007: SKF India, the leading technology and solutions
provider of bearings, seals and related products, today announced that it would
be investing over Rs 150 crores towards the development of a new manufacturing
site in Haridwar, Uttarakhand.
Situated over an area of 40,000 sq.mtrs, the new bearing factory is
likely to increase the existing ball bearing capacity by more than 1/3rd,
fuelling the growing demand in the booming automotive and other key
manufacturing sectors. The state of the art plant will be operational in March
2008 and is likely to employ over 300 people.
Commenting on the occasion Mr. Rakesh Makhija, Managing Director, SKF
India. Limited said, "They are very positive about the economic
development in the country. Uttarakhand is an emerging industrial hub within
the country. SKF's strategic move to increase production capacity through the
Haridwar plant signifies their commitment not only to serve their customers
effectively but also reinforces their leadership position in the Indian
Subcontinent".
About SKF
"The SKF Group is the leading global supplier of products,
solutions and services in the area comprising rolling bearings, seals, mechatronics,
services and lubrications systems. The Group's service also includes technical
support, maintenance services, condition monitoring and training. The SKF
Group's efforts in the R&D area have resulted in numerous innovations that
have created new standards and new products in the bearing world.
SKF is present in more than 130 countries, has some 120 manufacturing
sites and sales companies supported by some 15 000 distributor locations that
are serviced by an efficient global distribution network and a widely used
e-business marketplace."
In
SKF
2006-02-24, 10:18CET
Mumbai, February 24, 2006: The Board of Directors of SKF India Limited,
The financial highlights are given below in comparison to last year:
• Net sales for the year ended December 31, 2005 rose to Rs.7813.9
million (5813.1) and for the fourth quarter to Rs.2491.0 million (1631.9). This
is a growth of 34% for the year ended December 31st, 2005 and 53% for the
fourth quarter. On a comparable basis, the growth for the full year, excluding
additional sales due to implementation of Direct Customer Delivery model (DCD)
was 26% and for the fourth quarter 24%.
• The Profit before tax (PBT) for the year ended December 31, 2005
amounted to Rs.1030.5 million (883.3). PBT for the fourth quarter 2005 stands
at Rs.185.0 million (253.3).
• Net profit for the year ended December 31, 2005 was Rs.640.7 million
(566.1). Net profit for the fourth quarter amounted to Rs.102.4 million
(157.0).
• Earnings per share for the year ended December 31, 2005 was Rs.12.2
(12.5) and for the fourth quarter at Rs.1.9 (3.5).
The Board Recommended a dividend @ 35% on the paid-up capital.
"During the quarter they introduced the
DCD model in order to provide a single window for their customers to the
complete SKF product offering and also to continue to provide high service
level and customer satisfaction. While the business environment continues to be
positive, the results for the quarter have been adversely affected due to
expenses related to prior periods. Excluding the non-recurring items, the
profit before tax of the present quarter would have been slightly above the
third quarter PBT. As per the present outlook, they expect a continuous strong
sales growth in 2006" said Rakesh Makhija, Managing Director, SKF India
Limited
About
SKF
SKF India is a part of the SKF Group, the leading global supplier of
rolling bearing and seals. Along with a varied range of products it also offers
extensive solutions and services in this area.
SKF also has an increasingly important position in the market for linear motion
products, high precision bearings, spindles and spindle services for the
machine tool industry, electrical actuators, actuation systems and is an
established producer of rolling bearing steel.
SKF India locally manufactures a product range comprising about 60 sizes of
Deep Groove Ball Bearings, 70 sizes of Taper Roller Bearings, Textile machinery
Components, Automotive Specials, bearing accessories like housings, sleeves etc
to cater to the needs of the Automotive, Electrical and Industrial OEMs and
aftermarket customers.
Through their wide product range they satisfy the needs of their local market,
providing a bearing for any and every conceivable application.
SKF India's associate company, CR Seals India PrivateLimited a wholly owned
subsidiary of AB SKF Sweden offers customers complete sealing solutions based
on CR's leading edge technology.
Products
The business of the group consists of Bearings,
Housing/Sleeves & Accessories,
Seals, Greases, Spherical Plain Bearings,
Maintenance Products, Condition Monitoring Equipments, Linear Motion Products,
Special Steel and a comprehensive range of their high-tech industrial
components.
SKF has pioneered many innovations- starting with the self aligning ball bearings, spherical roller bearings (SRBs) plus the improvised E-
design and Explorer series SRBs, the hub bearing units used in cars & truck
wheel ends and the latest new revolutionary CARB bearing which has redefined the
standards for specialized applications in steel plant & paper mills.
SKF is the largest manufacturer of bearings
and seals in the world. SKF makes bearings
and seals of all sizes and types for practically all applications. From silent
running ball bearings for
sealing fans to 7.2-metre diameter, 45-tonnes slewing bearings for giant tunneling machines.
SKF worldwide has 70 factories and 20,000 distributors and are represented in
130 countries.
Company
Overview
Subject, is part of the SKF Group, the world Leader in the rolling
bearing industry, with head quater in
SKF India started its first manufacturing Unit in Chinchwad, near Pune, in 1965
and subsequently started one of the world's modern bearing manufacturing unit
at Bommasandra, near
The Pune plant has been upgraded to state-of-the-art SKF Technology used
worldwide, along with new product lines and production channels.
Both the
With diverse applications, SKF bearings are a part of the every day life from
the cars to ceiling fans, SKF is a part of the house hold engine. Whether it is
power generator in heavy industry or traction motors in the railway SKF keeps
the machine in motion.
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 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.40.84 |
|
|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.03 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
|
|
PAID-UP CAPITAL |
1~10 |
|
|
OPERATING SCALE |
1~10 |
|
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
|
|
--PROFITABILIRY |
1~10 |
|
|
--LIQUIDITY |
1~10 |
|
|
--LEVERAGE |
1~10 |
|
|
--RESERVES |
1~10 |
|
|
--CREDIT LINES |
1~10 |
|
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
|
|
--LITIGATION |
YES/NO |
|
|
--OTHER ADVERSE INFORMATION |
YES/NO |
|
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
|
|
--EXPORT ACTIVITIES |
YES/NO |
|
|
--AFFILIATION |
YES/NO |
|
|
--LISTED |
YES/NO |
|
|
--OTHER MERIT FACTORS |
YES/NO |
|
|
TOTAL |
|
|
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 |
|