MIRA
INFORM REPORT
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Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
BRAKES INDIA LIMITED |
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Registered Office : |
21, Patullos Road, ‘B’ Wing , 3rd Floor, Chennai – 600 002, Tamilnadu, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.11.1962 |
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Com. Reg. No.: |
18-4928 |
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CIN No.: [Company
Identification No.] |
U35999TN1962PLC004928 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEB00159F |
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PAN No.: [Permanent
Account No.] |
AAACB2533Q |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturing, Selling and Distributing of automobile brakes, complete brake systems, servo brakes & parts thereof, cast articles of iron, seals, rubber seals and oil seals. |
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 12500000 |
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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 of TVS Group. Available information indicates high financial responsibility of the company. Their trade relations are fair. Financial position of the company is good. Business is active. The company is a good paymaster and its payments are always correct and as per commitments. The company can be considered for any business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
21, Patullos Road, ‘B’ Wing , 3rd Floor, Chennai – 600 002, Tamilnadu, India |
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Tel. No.: |
91-44-2625 1861 / 6161 / 8161 / 8116 / 8426 |
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Fax No.: |
91-44-2628 7010 / 2625 7844 / 2625 7010 |
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E-Mail : |
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Website : |
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Head Office : |
“Electric Mansion”, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India |
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Tel. No.: |
91-22-24220296/24220212/24225829/24308657/24306928 |
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Fax No.: |
91-22-24220198 |
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Corporate Office : |
67, Chamiers Road, Chennai – 600 028, Tamilnadu, India |
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Tel. No.: |
91-44-2434 6128 |
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Factory 1 : |
v Padi, Chennai - 600 050, Tamilnadu, India Tel. No.: 91-44-2625 8161 / 8016 v Sholinghur - 631 102, Tamilnadu, India v Gurgaon - 122 016, Haryana, Punjab, India v Palambakkam - 603 309, Tamilnadu, India v Nanjagud - 571 301, Mysore, Karnataka, India |
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Branches : |
v 87 Udhyog Vihar, Phase V, Gurgaon - 122 016, Haryana, Punjab, India v D-1 Hide Road, Kolkata - 700 043, West Bengal, India v 3C, Casa Major Road, Egmore, Chennai – 600 008, Tamilnadu, India v 166, Anna Salai, Chennai – 600 002, Tamilnadu, India v Plot 8, Lakshmi Nagar, Seventh Street, Chennai – 600 061, Tamilnadu, India v 9, Pinjala Subramnium Street, T Nagar, Chennai – 600 017, Tamilnadu, India v 9, Pose Garden, Binny Road, Chennai – 600 086, Tamilnadu, India v 77, 53rd Street, Chennai – 600 053, Tamilnadu, India v Also located at Pune and Mumbai. |
DIRECTORS
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Name : |
Mr. R. Ramanujam |
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Designation : |
Vice Chairman & Managing Director |
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Name : |
Mr. S. Viji |
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Designation : |
Managing Director |
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Name : |
Mr. R. Srikanth |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Keith Ronald Aston |
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Designation : |
Director |
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Name : |
Mr. G K Raman |
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Designation : |
Director |
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Name : |
Mr. S Lunn |
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Designation : |
Director |
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Name : |
Mr. John Jones |
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Designation : |
Director |
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Name : |
Mr. Timothy John Klaus |
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Designation : |
Director |
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Name : |
Mr. William J Vander Roest |
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Designation : |
Alternate Director |
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Name : |
Mr. James T Gipprich |
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Designation : |
Alternate Director |
KEY EXECUTIVES
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Name : |
Mr. T Narayanan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Lucas Varity Plc, U.K. |
5,86,040 |
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TVS Sundaram Iyengar & Sons Limited |
2,53,816 |
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Sundaram Industries Limited |
1,19,600 |
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Southern Roadways Limited |
1,56,812 |
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Sundaram Finance Limited |
79,732 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing, Selling and Distributing of automobile brakes, complete brake systems, servo brakes & parts thereof, cast articles of iron, seals, rubber seals and oil seals. |
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Products : |
Ř Complete Brake System Ř Components and Parts of Brake System Ř Casting |
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Imports : |
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Countries : |
Europe and Far East |
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Terms : |
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Purchasing : |
L/C, D/A, D/P or Open Account terms |
GENERAL
INFORMATION
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No. of Employees : |
1675 |
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Bankers : |
v State Bank of India, 474, Mount Road, Saidapet, Chennai – 600 035, Tamilnadu, India v Standard Chartered Grindlays Bank Limited, Chennai, Tamilnadu, India v ABN Amro Bank, Chennai, Tamilnadu, India |
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Facilities : |
-- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Sundaram & Srinivasan Chartered Accountants |
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Address : |
Chennai - 600 002, Tamilnadu, India |
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Memberships : |
Nil |
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Collaborators : |
Nil |
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Associates : |
v Lucas TVS Limited v Sundaram Clayton Limited v Sundaram Fasteners Limited v Sundaram Finance Limited v T. V. Sundaram Iyengar & Sons Limited v Southern Roadways Limited v Sundaram Industries Limited v Wheels India Limited v Axles India Limited v TVS Electronics Limited v TVS Motors Company Limited (Formerly known as TVS Suzuki Limited) v TVS Seewing Needles Limited v Sundaram Textiles Limited v Sri Chakra Tyres Limited v India Motor Parts & Accessories Limited v Fidelity Industries Limited v Fidelity Finance Limited v Hereto Grammer Limited |
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Subsidiaries : |
Sundaram Polymers Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
2,000,000 |
Equity Shares |
Rs.100/- |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,196,000 |
Equity Shares |
Rs.100/- |
Rs.119.600 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
119.600 |
119.600 |
119.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3015.200 |
2516.100 |
2031.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3134.800 |
2635.700 |
2151.100 |
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LOAN FUNDS |
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1] Secured Loans |
1890.000 |
1226.300 |
546.500 |
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2] Unsecured Loans |
600.500 |
807.400 |
310.700 |
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TOTAL BORROWING |
2490.500 |
2033.700 |
857.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5625.300 |
4669.400 |
3008.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3260.100 |
2265.800 |
1970.700 |
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Capital work-in-progress |
127.100 |
550.400 |
14.300 |
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INVESTMENT |
113.700 |
70.200 |
70.400 |
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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 |
1542.000
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1227.100 |
758.000 |
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Sundry Debtors |
2069.900
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1784.000 |
1470.100 |
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Cash & Bank Balances |
2.400
|
5.100 |
3.900 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
607.900
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527.100 |
284.000 |
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Total
Current Assets |
4222.200
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3543.300 |
2516.000 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1558.600
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1733.000 |
1507.600 |
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Provisions |
539.200
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27.300 |
55.500 |
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Total
Current Liabilities |
2097.800
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1760.300 |
1563.100 |
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Net Current Assets |
2124.400
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1783.000 |
952.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5625.300 |
4669.400 |
3008.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
10918.500 |
11000.000 |
6589.100 |
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Other Income |
233.800 |
402.300 |
253.900 |
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Total Income |
11152.300 |
11402.300 |
8802.000 |
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Profit/(Loss) Before Tax |
1070.100 |
1037.100 |
843.900 |
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Provision for Taxation |
346.000 |
335.800 |
289.000 |
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Profit/(Loss) After Tax |
724.100 |
701.300 |
554.900 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
1181.200 |
964.900 |
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Administrative Expenses |
64.000 |
480.200 |
417.300 |
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Raw Material Consumed |
6059.900 |
5541.000 |
3914.300 |
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Salaries, Wages, Bonus, etc. |
708.600 |
707.500 |
636.400 |
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Interest |
127.800 |
53.700 |
48.300 |
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Power & Fuel |
715.100 |
644.800 |
562.100 |
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Total Expenditure |
7675.400 |
8608.400 |
6543.300 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
0.78 |
0.60 |
0.48 |
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Long Term Debt
Equity Ratio |
0.63 |
0.34 |
0.30 |
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Current Ratio |
1.63 |
1.33 |
1.30 |
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TURNOVER RATIOS |
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Fixed Assets |
2.12 |
2.62 |
2.26 |
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Inventory |
7.89 |
11.08 |
13.08 |
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Debtors |
5.67 |
6.76 |
6.57 |
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Interest Cover
Ratio |
9.37 |
20.31 |
18.47 |
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Operating Profit
Margin (%) |
10.97 |
12.50 |
13.37 |
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Profit Before
Interest and Tax Margin (%) |
10.97 |
9.92 |
10.44 |
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Cash Profit
Margin (%) |
6.63 |
8.96 |
9.42 |
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Adjusted Net
Profit Margin (%) |
6.63 |
6.38 |
6.49 |
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Return on Capital
Employed (%) |
23.27 |
28.41 |
30.81 |
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Return on Net
Worth (%) |
25.10 |
29.30 |
28.39 |
LOCAL AGENCY
FURTHER INFORMATION
History
BIL was established in 1962 as a joint venture between TVS Group and Lucas Industries Plc, UK(which is now integrated with TRW). The company's clientele includes both overseas and domestic of which the foundry divisions clients include TRW Automotive-UK,Robert Bosch-Germany and Electrolux-Italy. The domestic clientele includes Honda Siel and Mahindra and Mahindra. The company was one of the first few companies to be certified for ISO 9002 for the foundry division.
The company is in the process of setting new foundry unit and initial
capacity for the new foundry would have 6000 tonnes per annum and it will be
increased in the latter period depending upon the demand in the market.
It is stepping on the gas pedal with a plan to hike capacity of its
facility at Sholingur,near Chennai. The work for capacity expandion would
beging on March and commercial production is slated to begin on 2005. During
2003 the company acquired an order for supply of safety critical parts to
Volvo,Sweden and Toyota.
As per website
details
Profile
The strength of Brakes India lies in
v Its ability to motivate and harness the capabilities of its human resource
v Develop and nurture a strong vendor base
v Its commitment to quality, cost, delivery, safety and customer satisfaction
Strong in-house Research & Development, coupled with access to World Class Technology through collaboration and affiliations worldwide enables Brakes India to provide the Best Braking Solutions and Castings to its customers.
Sales turnover of its Brakes divisions exceeds Rs. 5 Billion. Brakes Divisions have grown steadily to become a Leading Brake System Supplier to global OEMs operating in India.
Sales turnover of its Foundry division exceeds Rs. 2 Billion, has an installed
capacity of 47,000 MTPA for
permanent mould Grey Iron and high pressure moulded Ductile and grey iron sand
castings.
An impressive list of Customers adds testimony to the capabilities of Brakes India.
Exports
Ability to introduce new products, tailor-made to meet overseas customer requirements, maintaining high technological and quality standards have helped Brakes India to continuously enlarge its market presence.
Commenced export of brake components in 1968.
Products are exported to over 35 countries around the world.
Exporter of a wide variety of Brake Products, including, drum brakes for commercial vehicles, trailer
brakes for the Australian Trailer Industry, tractor brakes, master cylinder and
booster assemblies, wheel cylinder assemblies.
Major exporter
of Grey Iron and SG (Ductile) Iron castings to TRW, Meritor and Bosch.
Products exported to both Overseas Vehicle Manufacturers and Replacement Markets.
Supply to replacement market includes hydraulic brake and
clutch cylinders, kits, seals, brake and clutch hoses, brake pads, caliper
pistons and lined shoe assemblies for various passenger cars and commercial
vehicles of American, Japanese, European and Australian manufacturers.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.70 |
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UK Pound |
1 |
Rs.85.90 |
|
Euro |
1 |
Rs.58.25 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
7 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
8 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
70 |
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 |
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