MIRA
INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
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Name : |
TVS MOTOR COMPANY
LIMITED |
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Registered Office : |
Jayalakshmi Estates, 29
(Old No. 8), |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.06.1992 |
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Com. Reg. No.: |
18-22845 |
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CIN No.: [Company
Identification No.] |
U35921TN1992PLC022845 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET09554G |
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PAN No.: [Permanent
Account No.] |
AAACS7032B |
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Legal Form : |
Public limited liability
company. Company’s shares are listed on Stock Exchange. |
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Line of Business : |
Manufacturing of Motorcycles and Mopeds. |
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 30,000,000 |
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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 – a well-established and reputed industrial house of Available information indicates high financial responsibility of the company. Financial position of the company is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business
dealings. It can be regarded as a
promising business partner in a long-run. |
LOCATIONS
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Registered Office : |
Jayalakshmi Estates, 29
(Old No. 8), |
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Tel. No.: |
91-44-28272233 |
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Fax No.: |
91-44-28257121 |
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E-Mail : |
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Website : |
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Head Office : |
Mittal Court, ‘B’ Wing, 1st Floor, 224, Nariman
Point, Mumbai – 400 021 |
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Regional
Office: |
Ø Block No. 1, Rajendra Bhawan, Rajendra Place, District Centre, New Delhi – 110 008 Ø
FMC Fortuna, 5th Floor, 234/3A, Ø
3rd Floor, D’ Monte Building, No.
32, D’ Monte Colony, |
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Factory 1 : |
Post Box No. 4, Harita, Hosur - 635 109, Tamilnadu |
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Tel. No.: |
91-4344-576780 |
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Fax No.: |
91-4344-576016 |
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E-Mail : |
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Factory 2 : |
Post Box No. 1, |
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Tel. No.: |
91-821-2596560 |
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Fax No.: |
91-821-2596550 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Venu Srinivasan |
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Designation : |
Chairman
& Managing Director |
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Name : |
Mr. Gopal Srinivasan |
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Designation : |
Director |
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Name : |
Mr. T. K. Balaji |
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Designation : |
Director |
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Name : |
Mr. H. Lakshmanan |
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Designation : |
Director |
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Name : |
Mr. T. Kannan |
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Designation : |
Director |
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Name : |
Mr. N. Ganga Ram |
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Designation : |
Director |
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Name : |
Mr. C. R. Dua |
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Designation : |
Director |
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Name : |
Mr. C. V. R. Panikar |
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Designation : |
Director |
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Name : |
Mr. H. Lakshmanan |
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Designation : |
Director |
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Name : |
Mr. K S Bajpai |
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Designation : |
Director |
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Name : |
Mr. T R Prasad |
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Designation : |
Director |
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Name : |
Mr. T. S. Rajagopalan |
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Designation : |
Company Secretary |
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SENIOR PERSONS: - |
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Name : |
Mr. Chandramouli R. |
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Designation : |
Vice President (Sales & Marketing) |
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Name : |
Mr. Devarajan S. |
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Designation : |
Vice President (Production Engineering) |
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Name : |
Mr. Goindi H. S. |
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Designation : |
Vice President (International Business) |
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Name : |
Mr. Home Vinay Chandrakant |
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Designation : |
Vice President ( Research & Development) |
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Name : |
Mr. Kavaichelvan V. |
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Designation : |
Vice President ( HR & TQC) |
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Name : |
Mr. Mathew P. C. |
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Designation : |
Executive Vice President |
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Name : |
Mr. Muthuraj M. |
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Designation : |
Vice President (Operations) |
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Name : |
Mr. Radhakrishnan K. N. |
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Designation : |
Vice President (Business Planning) |
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Name : |
Mr. Rajagopalan S. |
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Designation : |
Vice President (Industrial Relations) |
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Name : |
Mr. Simha B. L. P. |
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Designation : |
Vice President (Materials) |
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Name : |
Mr. Sundaresan R. |
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Designation : |
Vice President (Quality) |
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Name : |
Mr. Murali S. G. |
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Designation : |
Vice President (Finance) |
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Name : |
Mr. Ramaswamy A. |
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Designation : |
Vice President (Finance) |
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Name : |
Mr. C. P. Raman |
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Designation : |
President |
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Date of Birth/Age : |
61 years |
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Qualification : |
B. Tech. |
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Experience : |
41 years |
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Date of Appointment : |
01.02.1998 |
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Name : |
Mr. R. Chandramouli |
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Designation : |
Vice President - Sales and Marketing |
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Date of Birth/Age : |
43 years |
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Qualification : |
B.E. (Agri.), P.G.D.B.M. |
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Experience : |
18 years |
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Date of Appointment : |
19.12.1988 |
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Name : |
Mr. Vinay Chandrakant Harne |
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Designation : |
Vice President - R & D |
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Date of Birth/Age : |
43 years |
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Qualification : |
B.E. (Mech.), M. Tech. |
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Experience : |
19 years |
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Date of Appointment : |
01.09.1987 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter’s Holding |
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Indian Promoters |
135000000 |
56.83 |
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Sub-Total: (1) |
135000000 |
56.83 |
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Non-Promoters
Holding |
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Institutional
Investors:- |
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Mutual Funds
& UTI |
36128410 |
15.21 |
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Banks, Financial
Institutions, Insurance Companies (Central/ State Govt. Institutions/
Non-government institutions.) |
10448466 |
4.40 |
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Foreign
Institutional Investors |
21217173 |
8.83 |
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Sub-Total: (2) |
67794049 |
28.54 |
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Others |
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Private Corporate
Bodies |
11937822 |
5.03 |
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Indian Public |
22240329 |
9.36 |
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NRIs/ OCBs |
571357 |
0.24 |
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Sub-Total: (3) |
34749508 |
14.63 |
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Grand Total:
(1+2+3) |
237543557 |
100.00 |
Statement
showing the details of shareholders holding more than 1% of the paid up capital
of the company as on 31.03.2006
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Names of
Shareholders |
No. of Shares |
Percentage of Holding |
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Promoter’s
Holding |
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Indian
Promoters |
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Anusha Investment
Limited |
114000000 |
47.99 |
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Sundaram Clayton Limited |
21000000 |
8.84 |
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Non-Promoters
Holding |
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Institutional
Investors:- |
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Mutual Funds
& UTI |
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UTI Equity Fund UTI Asset
Management |
6730713 |
2.83 |
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UTI Opportunities
Fund UTI Asset
Management |
3695996 |
1.56 |
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UTI Master Plus
Unit Scheme UTI Asset
Management |
3000000 |
1.26 |
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Templeton Mutual
Fund A/C Franklin |
13432950 |
5.65 |
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Banks, Financial
Institutions, Insurance Companies (Central/ State Govt. Institutions/
Non-government institutions.) |
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Life Insurance
Corporation of |
9471673 |
3.98 |
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Foreign
Institutional Investors |
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Arisaig Partners ( |
7553718 |
3.18 |
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HSBC Financials Services ( |
4552669 |
1.92 |
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Others |
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Private
Corporate Bodies |
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ICICI Prudential
Life Insurance Company Limited |
7476921 |
3.15 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Motorcycles and Mopeds. |
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Products : |
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Exports : |
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Countries : |
Africa, |
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Imports : |
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Countries : |
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GENERAL INFORMATION
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No. of Employees : |
6000 |
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Bankers : |
Ø
State Bank of Ø
State Bank of Ø
State Bank of Ø
State Bank of Bikaner & Jaipur,
Ghandhinagar, Ø Indian Overseas Bank, C & I Credit Branch, Dr. Radhakrishnan Salai, Chennai 600 004, Tamilnadu |
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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 : |
23, |
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Associates: |
· TVS Finance And Services Limited, Chennai, Tamilnadu · TVS Electronics Limited, Chennai, Tamilnadu · TVSe Technology Limited, Chennai, Tamilnadu · TVS Investments Limited, Chennai, Tamilnadu · Sundaram Clayton Limited, Chennai, Tamilnadu · Harita Stocks Limited, Chennai, Tamilnadu ·
Anusha Investment Limited, Chennai, Tamilnadu |
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Subsidiaries: |
· Lakshmi Auto Components Limited, Chennai, Tamilnadu · Harita Builders Components Limited, Chennai, Tamilnadu · Harita Constructions (Chennai) Limited, Chennai, Tamilnadu · Sravana Builders Limited, Chennai, Tamilnadu |
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Membership: |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
23,100,070 |
Equity Shares |
Rs. 10/- each |
Rs. 231.000 Millions |
|
6,542,857 |
Equity Shares |
Rs. 1/- each |
Rs. 6.500 Millions |
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TOTAL |
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Rs. 237.500
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
237.500 |
237.500 |
237.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
7423.700 |
6550.800 |
5512.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
7661.200 |
6788.300 |
5749.500 |
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LOAN FUNDS |
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1] Secured Loans |
3086.100 |
1750.100 |
375.000 |
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2] Unsecured Loans |
764.300 |
118.300 |
815.100 |
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TOTAL BORROWING |
3850.400 |
1868.400 |
1190.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
1230.500 |
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TOTAL |
11511.600 |
8656.700 |
8170.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7667.800 |
7635.800 |
6946.600 |
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Capital work-in-progress |
269.700 |
69.000 |
95.200 |
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INVESTMENT |
3441.900 |
1753.900 |
1280.200 |
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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 |
3579.000
|
2332.300 |
2166.600 |
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Sundry Debtors |
581.900
|
395.600 |
519.000 |
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Cash & Bank Balances |
243.500
|
738.700 |
180.000 |
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Other Current Assets |
0.000
|
0.000 |
1.900 |
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Loans & Advances |
2336.800
|
1806.100 |
1492.800 |
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Total Current Assets |
6741.200
|
5272.700 |
4360.300 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
6919.700
|
6163.200 |
4210.100 |
|
|
Provisions |
624.400
|
556.100 |
431.100 |
|
Total Current Liabilities |
7544.100
|
6719.300 |
4641.200 |
|
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Net Current Assets |
(802.900)
|
(1446.600) |
(280.900) |
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MISCELLANEOUS EXPENSES |
935.100 |
644.600 |
129.000 |
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TOTAL |
11511.600 |
8656.700 |
8170.100 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
38713.200 |
34112.700 |
28564.200 |
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Profit/(Loss)
Before Tax |
1684.500 |
2004.500 |
2145.300 |
|
Provision for
Taxation |
514.500 |
628.800 |
760.400 |
|
Profit/(Loss)
After Tax |
1170.000 |
1375.700 |
1384.900 |
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Export Value |
NA |
NA |
694.800 |
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Import Value |
NA |
NA |
839.400 |
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Total Expenditure |
35879.700 |
31128.600 |
26718.900 |
UNAUDITED
FINANCIAL RESULTS (LIMITED REVIEWED)
FOR THE THREE
MONTHS ENDED 30.06.2006
|
PARTICULARS |
Three months ended 30.06.2006 |
|
Sales Turnover [including other income] |
9396.200 |
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|
(Increase)/ Decrease in Stock in Trade |
668.200 |
|
Consumption of raw materials &
components |
6116.500 |
|
Staff Cost |
429.000 |
|
Other Expenditure |
1588.100 |
|
Total Expenditure |
8801.800 |
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|
Interest (net of
income) |
59.700 |
|
Depreciation |
233.300 |
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Profit/(Loss)
Before Tax |
301.400 |
|
Provision
for Taxation |
|
|
- Current Tax |
64.600 |
|
- Deferred Tax |
19.600 |
|
- Fringe Benefit
Tax |
4.600 |
|
Profit/(Loss)
After Tax |
212.600 |
|
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|
Paid up equity
share capital (Face value of Rs. 1/- each) |
237.500 |
|
Reserves excluding
revaluation reserves |
|
|
EPS (not
annualised) –in Rs. |
9.000 |
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Aggregate of
Public Shareholding |
|
|
- Number of Shares |
102543557 |
|
% of Holding |
43.17 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
9217.800 |
10778.900 |
9354.100 |
|
Other
Income |
178.400 |
108.600 |
175.700 |
|
Total
Income |
9396.200 |
10887.500 |
9529.800 |
|
Total
Expenditure |
8801.800 |
10219.000 |
9057.800 |
|
Operating
Profit |
594.400 |
668.500 |
472.000 |
|
Interest |
59.700 |
61.800 |
86.200 |
|
Gross
Profit |
534.700 |
606.700 |
385.800 |
|
Depreciation |
233.300 |
244.200 |
244.700 |
|
Tax |
69.200 |
90.600 |
85.200 |
|
Reported
PAT |
212.600 |
248.300 |
114.600 |
Notes
200606
Quarter 1 –
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs 668.20 million Consumption of Raw Material & components Rs 6116.50 million
Staff Cost Rs 429.00 million Other expenditure Rs 1588.10 million Tax Includes
Provision for Current Tax Rs 64.60 million Fringe Benefit Tax Rs 4.60 million
Deferred Tax Rs 19.60 million Status of Investor Complaints for the quarter
ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 07 Complaints disposed off during the
quarter 07 Complaints unresolved at the end of the quarter Nil 1. The entire
operations of the Company relate to only one segment viz., powered two
wheelers. 2. The above unaudited financial results were reviewed by the audit
committee and taken on record by the Board of Directors on July 24, 2006 and a
limited review of the same has been carried out by the Statutory auditors of
the Company.
200609
Quarter 2 –
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs (65.70) million Consumption of Raw Material & components Rs 8032.70 million
Staff Cost Rs 460.80 million Other expenditure Rs 1791.20 million Tax Includes
Provision for Current Tax Rs 81.30 million Deferred Tax Rs 23.60 million Fringe
Benefit Tax Rs 9.30 million 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 10 Complaints disposed off during the
quarter 10 Complaints unresolved at the end of the quarter Nil 1. The entire
operations of the Company relate to only one segment viz., automotive vehicles
and parts. 2. The Board of Directors declared an interim dividend of Re 0.70
per share absorbing a sum of Rs 166.30 million. 3. The above unaudited
financial results were reviewed by the audit committee and taken on record by
the Board of Directors on October 25, 2006 and a limited review of the same has
been carried out by the statutory auditors of the Company.
200612
Quarter 3 –
Expenditure Includes (Increase)/Decrease in stock in Trade
Rs (832.80) million Consumption of Raw Material & components Rs 7874.70
million Staff Cost Rs 463.20 million Other expenditure Rs 1552.70 million Tax
Includes Provision for Current Tax Rs 73.20 million Deferred Tax Rs (58.70)
million Fringe Benefit Tax Rs 12.00 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 10 Complaints disposed off
during the quarter 10 Complaints unresolved at the end of the quarter Nil 1.
The entire operations of the Company relate to only one segment viz.,
automotive vehicles and parts. 2. Interim Dividend - At meeting held on October
25, 2006 the directors declared an interim dividend of Rs 0.70 per share
absorbing a sum of Rs 166.30 million for the year ending March 31, 2007. The
same was paid on November 04, 2006. 3. The figures for the previous periods
have been restated wherever necessary to conform to currents year's
classification. 4. The above unaudited financial results were reviewed by the
audit committee and taken on record by the Board of Directors on January 25,
2007 and a limited review of the same has been carried out by the statutory
auditors of the Company.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.40 |
0.24 |
0.24 |
|
Long Term Debt
Equity Ratio |
0.40 |
0.24 |
0.23 |
|
Current Ratio |
0.84 |
0.76 |
0.79 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.80 |
2.75 |
3.36 |
|
Inventory |
12.63 |
14.76 |
15.14 |
|
Debtors |
76.35 |
72.63 |
62.63 |
|
Interest Cover
Ratio |
8.16 |
20.32 |
21.83 |
|
Operating Profit
Margin (%) |
7.11 |
7.79 |
9.35 |
|
Profit Before
Interest and Tax Margin (%) |
4.59 |
5.10 |
6.90 |
|
Cash Profit
Margin (%) |
5.30 |
6.02 |
6.70 |
|
Adjusted Net
Profit Margin (%) |
2.78 |
3.33 |
4.25 |
|
Return on Capital
Employed (%) |
18.43 |
22.84 |
36.68 |
|
Return on Net
Worth (%) |
14.36 |
17.62 |
27.76 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.65.90/- |
|
Low |
Rs.61.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on
It’s Company Registration Number is 9486.
Subject is the flagship company of the T V Sundaram Iyenger family, a joint venture between the TVS group and Suzuki Motors of Japan and was the first to launch Indo-Japanese motorcycles venture to take off in India.
It started manufacturing Suzuki 100cc motorcycles in 1984. The company headed by Mr. Venu Srinivasan, commands around 23% of the overall two wheeler market. Subject is the largest manufacturer of mopeds in the country riding a market share of over 53%.
After creating a prominent position in mopeds, the company successfully exploited the vast opportunity in the scooterette segment. The Scooty brand of scooterette launched by the company was strategically priced and positioned between the moped and the scooter market. The strategy worked wonders for the company. It launched Fiero, the four-stroke 150cc motorcycle in the year 2000.
During 1999-2000, TVS Suzuki was amalgamated with Sundaram Auto Engineers Limited, an unlisted group company. This merged entity was later renamed TVS Suzuki Limited.
The Fiero is positioned as a bike, not bigger than 100 cc but with the all-round performance of a 100 plus bike. With a 12 bhp, it gives a mileage of 55-60 km per litre. In addition to one of the best power-to-weight ratio, it also has a digital fuel injection, intelligent carburettor and electric starter. However, the competition in the segment is already intense. The company would have to compete with the well-established brands of existing players like Hero Honda Limited and Bajaj Auto Limited.
Sundaram Auto Engineers Limited was incorporated on
Suzuki Motor Corporation (SMC) ceased to be a shareholder of the company as per
the agreement in the year 2000-01. Consequently, the company cannot use the
word "Suzuki" as the part of its name and hence, the name of the
company was changed to TVS Motor Company Limited with effect from
The company which was launched in August, 2001 had sold over
0.500 millions units with a period of 21 months. This has enabled the market
share of TVS-M to 19% to 16% motorcycle category. Lakshmi auto components, the
subsidiary of the company had acquired the entire share capital of Sundaram
Auto Components for cash on
The Board of company had cleared the merger of LAC-Engine
Components division with itself and the date had been fixed from
The plastics and rubber components division will be transferred to the wholly owned subsidiary company viz Sundaram Auto Components Limited. The total consideration will be on slump-sale basis for Rs. 122.500 millions. To board was also considering for sub division of equity shares from Rs. 10/- to Rs. 1/.
Its’ products range includes :-
· Mopeds
· Motorcycles
· Scooters
Bio data:
TVS Motor Company Ltd, (TVS Motors) a leading automobile major in India a flagship Company of T V Sundaram Iyengar family.
Earlier it was in the name of TVS Suzuki, a joint venture
between the TVS group and Suzuki Motors of Japan, the first Indo-Japanese
motorcycle venture to take off in
It started manufacturing Suzuki 100cc motorcycles in 1984. It is the largest manufacturer of mopeds in the country riding a market share of over 74%.
After creating a prominent position in mopeds, the company successfully exploited the vast opportunity in the scooterette segment. The Scooty brand of scooterette launched by the company was strategically priced and positioned between the moped and the scooter market. The strategy worked wonders for the company. It launched Fiero, the four-stroke 150cc motorcycle in 2000.
During 1999-2000, TVS Suzuki was amalgamated with Sundaram Auto Engineers Ltd,
an unlisted group company. This merged entity was later renamed TVS Suzuki
Ltd.
Suzuki Motor Corporation (SMC) ceased to be a shareholder of the company as per
the agreement in the year 2000-01. Consequently, the company cannot use the word
"Suzuki" as the part of its name and hence the name of the company
was changed to TVS Motor Company Ltd. The new stylish TVS Scooty Pep and the
upgraded version of Fiero was rolled out in the market during 2002-03.
TVS Victor which was launched in August, 2001 has sold over 0.5 Millions units
with a period of 21 months. This has enabled the market share of TVS-Motor to
19% from 16% in the motorcycle category. Lakshmi auto components, the
subsidiary of the company has acquired the entire Share Capital of M/s Sundaram
Auto Components for cash on 1st April,2003. Subsequent to this SACL has become
a subsidiary of TVS Motor Company Ltd.
During October 2003, the scheme of arrangement has taken place between TVS
Motors, Lakshmi Auto Components Ltd (LAC) and Sundaram Auto Components Ltd
(SACL). As per the scheme assets and liabilities of LAC to be transferred to
SACL on slump sale basis on 1st April 2003 for a consideration of 12.250
Millions.
The Board of TVS Motors have cleared the merger of LAC-Engine Components
division with itself and the date has been fixed from April 2,2003 and with
effect from April 2004 LAC has been amalgamated with the company. The
consideration being paid for the merger will be Ten equity shares of Rs.1 each
of TVS Motoras for every Seven equity shares of Rs.10 each held by the
shareholders of the Lakshmi Auto Components Ltd(LAC).
The Plastics and Rubber Components division of LAC transfered to the Sundaram
Auto Components Ltd and it became wholly owned subsidiary with effect from 2nd
April, 2004.
During 2004, the Company split its share to Rs.1/- from Rs.10/- to enhance the
shareholders value.
TVS Motor Company is the first powered two wheeler Company in the world to get
the prestigious Deming prize for its performance in Total Quality
Management.
During 2004-05 the company decided to go for a project to manufacture two
wheelers in
The company has launched Tvs Star- 4 Stroke 100cc, New Victor GLX- 4
Stroke 125cc and New Victor GX-4 Stroke 110cc in motorcycle segment and Scooty
Pep "Splash" Series- 4 Stroke 75cc stylish in Ungeared Scooter
segment during 2004-05.
In 2005-06, the company has commenced its activities for setting up a
manufacturing facility for manufacture of three wheelers near existing plant at
Hosur. The company has also acquired land at Nalagarh Taluk in Solan District
and construction of factory buildings is in the final phase for its new two
wheeler plant in Himachal Pradesh.
The company has entered into a joint venture with a Columbian party for
exploring opportunities in Columbian market with an equity investment of Rs.
5.0 Millions.
The company has launched Apache model and two TVS StaR rang including the
popular TVS StaR City variant motor cycles during the year 2005-06.
outlook
The two-wheeler
industry is closely linked to the general level of economic activity. The
Indian economy is expected to grow around 7% during 2004-05. The indications
are that the monsoon will be normal and hence rural economy will grow at a good
rate. This will consequently lead to a growth rate of 9% to 10% in the
two-wheeler industry during 2004-05.
new products
During the year 2003-04, the company successfully
launched multiple products:
* TVS Centra - 4-stroke 100cc motorcycle in the executive segment with
VT-i
technology to give excellent mileage
* New Victor GL - an upgrade of TVS Victor incorporating 21
improvements
with new
look
* Fiero F2 & Fx - upgrades of 4-stroke 150cc Fiero in the
premium
motorcycle
segment
* Scooty Pep - 4-stroke 75cc stylish variomatic scooter
AMALGAMATION OF
LAKSHMI AUTO COMPONENTS WITH THE COMPANY
On 17th October 2003, the board of directors of the company approved a
scheme of arrangement between the company viz. TVS Motor Company Limited
(TVSM), Lakshmi Auto Components Limited (LAC) and Sundaram Auto Components
Limited (SACL). Under the scheme, the assets and liabilities of the rubber and
plastic businesses of LAC were transferred to SACL on slump sale basis on 1st
April 2003 for a consideration of Rs.122.500 Millions.
In terms of the scheme which was approved by the Hon'ble High Court of
Madras vide its order dated 23rd March 2004, SACL issued and allotted to LAC
24,50,000 equity shares of Rs.10/- each at a premium of Rs.40/- per share as on
1st April 2003 (the appointed date). The remaining business of LAC viz., engine
components division together with its investments in other bodies corporate
including the shares allotted by SACL to LAC in terms of the scheme were
transferred to and vested in the company with effect from 2nd April 2003 (the
appointed date for this purpose).
In consideration of the amalgamation of engine components division together
with remaining business of LAC with the company, the company allotted to the
public shareholders of LAC, 65,42,857 equity shares of Re.1/- each credited as
fully paid up (new shares). Consequently, the paid up capital of the company
has increased from Rs.23,10,00,700/- to Rs.23,75,43,557/-. 89,20,000 equity
shares of Rs.10/- each held by the company in LAC were cancelled.
The new shares were listed in all the three stock exchanges where the company's
shares are presently listed viz., The Stock Exchange, Mumbai (BSE), National
Stock Exchange of India Limited (NSE) and Madras Stock Exchange Limited (MSE).
The shares were admitted for trading with effect from
The new shares allotted in terms of the scheme of arrangement rank pari passu
with the existing equity shares of the company from the effective date viz.,
1st April 2004, the date on which the order of the Hon'ble High Court approving
the scheme was filed with the Registrar of Companies, Chennai and accordingly
were entitled for the second interim dividend of Re.0.70 per share declared by
the board of directors at its meeting held on 21st April 2004.
The company exports Motorcycles, Mopeds, and Scooters to
Africa,
The company imports some critical engine parts, aluminium
ingots and capital equipments from
The company is in trade terms with :-
Ø Alex Machine Tools
Ø Aircraft Private Limited
Ø Alois Security Printers Private Limited
Ø Auto Shell Moulders Limited
Ø
Acma Tools,
Ø
Addon Engineering Private Limited,
Ø
Aluzin,
Ø
Art
Ø
Auto Electronics, Pune,
Ø Bhjuvaneswari Electricals
Ø Bismi Tools and Service
Ø
Baker Gauges India Limited,
Ø Balaji Press Products, Hosur, Tamilnadu
Ø Champion Plastics India Private Limited, Hosur, Tamilnadu
Ø
Cheda Electricals and Electronics, Pune,
Ø Consite Engineering Company Limited
Ø
Deeyem CNC Machining Private Limited,
Ø
Desh Brother,
Ø Doncal India Private Limited
Ø Deeyem CNC Machining Private Limited
Ø
Diamond Dynamics India Private Limited,
Ø
Dolphin Die Cast (Private) Limited,
Ø
Eastern Engineering Private Limited,
Ø
Electrolink Products Private Limited,
Ø Federn Fabrik, Chennai, Tamilnadu
Ø
Foam Products,
Ø
G I Auto Private Limited,
Ø
Gowrishankar Engineering Industries,
Ø
Heera Engineering Enterprises,
Ø
Jaycee Industries,
Ø
K K Fasteners,
Ø
Karnataka Enterprises,
Ø
Karnataka Plascom Engineers Private Limited,
Ø Karnataka Plascom Engineers Private Limited, Karnataka
Ø
Kilpco Private Limited, Mumbai,
Ø
Leo Fasteners,
Ø Madras Rings & Travellers Manufacturing Company, Hosur, Tamilnadu
Ø Mahem Engineering Private Limited, Hosur, Tamilnadu
Ø
Merchatronics,
Ø Miven Mayfran Conveyors Private Limited, Hubli, Kolkata
Ø
Nagel Special Machines Private Limited,
Ø
Naveen Industries,
Ø Nu-tech Rubber Products, Hosur, Tamilnadu
Ø
Precision Compaid Moulding Private Limited,
Ø
Pressfab Precision Components Private Limited,
Ø
Ramesh Enterprises,
Ø RG Bronze Manufacturing Company Private Limited, Chennai, Tamilnadu
Ø
Sanpar Microfilters Private Limited,
Ø
Zawar Gauges & Tools Private Limited, Pune,
Fixed Assets:
Land, buildings, plant & machinery, tools, dies and jigs, furniture & fixtures, equipments and vehicles.
PERFORMANCE
The total number of two wheelers sold during the year under review was
1.34 million units, registering an overall growth of 15 percent over the
previous year with category growth of Motorcycles by 19%, mopeds by 10% and
scooters by 9%. The company's export sales grew by 48% from Rs.1200 Millions in
the year 2004-05 to Rs.1770 Millions in the year 2005-2006 and continue to be a
focus area for growth.
The launch of Apache and two TVS Stag range including the popular TVS StaR City
variant enabled the company to improve its market share and turnover
significantly during the year under review.
The profit before tax for the year under review was Rs.1684.5 Millions as
against Rs.2004.5 Millions in the previous year. The profit after tax stood at
Rs.1170 Millions in 2005-06 compared to Rs.1375.700 Millions in the previous
year. The previous year profit includes Rs.369.400 Millions shown under other
income arising out of the reduction in deferred sales tax liability due to
prepayment. The fall in profit was due to higher material cost on account of
stringent emission norms coupled with the rise in cost of aluminium, steel,
rubber and plastics. The company has planned an aggressive strategy to reduce
its cost.
EXPANSION ACTIVITIES
As indicated in the last report, the company has commenced its activities
for setting up a manufacturing facility for manufacture of three wheelers near
existing plant at Hosur. The commercial production of three wheelers is
expected to commence during last quarter of 2006-2007.
The company has acquired land at Nalagarh Taluk in Solan District,
Himachal Pradesh and construction of factory buildings is in the final phase.
The commercial production of two wheelers is expected to commence in the second
half of 2006-2007. All approvals required in this connection have been obtained
from various Government Agencies.
The company has also entered into a joint venture with a Columbian party
for exploring opportunities in Columbian market with an equity investment of
Rs.5 million.
The total investment for the above projects was met out of internal
accruals and external commercial borrowings.
Press Clippings
TVS
Racing sweeps MRF National Supercross Rnd 1, Goa
Panjim May 8, 2005 - TVS Racing team dominated the first round of the MRF
National Supercross Championship by winning Five of the Six Championship classes
of the races held in Panjim’s Campal Parade Ground, today. Ace rider and the
reigning champion C Vijaykumar of TVS Racing proved his class in the presence
of a huge Sunday morning crowd by dominating both the Motos of the prestigious
‘Foreign Open class’. He came first in both the Motos taking his point tally to
40 and also earned ‘The Best Rider of the Day’ title.
The day began with the First moto of the Indian Experts Foreign Motorcycle
where C Vijaykumar of TVS Racing managed to take an early lead, which he
maintained and consolidated till the end. Yogesh Barguje of Yamaha Racing and
C. S Santosh of TVS Racing who came 2nd and 3rd respectively battled it out as
the latter almost edged out the former in the final bend. The second moto of
the race saw a repeat performance with C Vijaykumar emerging clear winner
followed by Barguje and Santosh who took the 2nd and 3rd spot.
In the stock class of vehicles or in other words motorcycles without any
modification; C. D Jinan of TVS Racing proved his class by taking honours in
the Indian Experts Group D 80 CC to 110 CC in his TVS Victor. TVS Racing
dominated this class with all the three podium positions going to the team.
The group B Indian Experts upto 150 CC 2-Stroke saw a four-way battle between
Syed Eathasham, Yogesh Barguje, C. Vijaykumar and C. Santosh. Though Santosh
looked very promising he fell back to the 4th position in a tangle between the
riders. In the end Syed Eathasham managed to emerge 1st. Yogesh and Vijaykumar
took the 2nd and 3rd spot respectively. This was the only class where Yamaha
managed to take the top spot.
In the Novice class upto 150 cc; Syed Zubbair of TVS Racing in his Shogun fought
it out to win the first spot. He was closely followed by Yamaha’s Joshua Pramod
and S. Arun of TVS Racing.
The local class saw some interesting fight between Gordon Furtado and Mohmad
Kadar with the latter taking lead till the penultimate lap. Kadar’s bike hit a
technical snag and gave way for Gordon. Imtiaz Kadar came a distant second
followed by Fidle Furtado who took the third spot.
AS PER WEBSITE:
TVS Motor Company Limited, the flagship company of the USD
2.2 billion TVS Group, is the third largest
two-wheeler manufacturer in
The year 1980 is one to be remembered for the Indian two-wheeler industry, with
the roll out of TVS 50,
For the Indian Automobile sector, it was a breakthrough to be etched in
history.
TVS Motor Company is the first two-wheeler manufacturer in the world to
be honoured with the hallmark of Japanese Quality – The Deming Prize for
Total Quality Management.
Future Focus
In the future, TVS Motor Company will be one among the top two 2-wheeler
companies in
They will have profitable operations overseas, especially in Asian markets,
capitalizing on their expertise in the areas of manufacturing, technology and
marketing. The Company will hone and sustain its cutting edge of technology by
constant benchmarking against international leaders.
TQM will be a way of life and guide all their endeavours.
Many firsts
First Indian Company to introduce 100cc Indo-Japanese
motorcycles in Sept 1984.
Launched
Introduced
Launched
Launched TVS Fiero,
Launched TVS Victor, 4-stroke 110 cc motorcycle, in August
2001,
Launched TVS Centra in January 2004, a world-class
4-stroke 100 cc motorcycle with the revolutionary VT-i Engines for
best-in-class mileage.
Launched
TVS Star in Sept 2004, a 100 cc motorcycle which is ideal for
rough terrain.
Products:
4-Stroke, 150cc, high performance
motorcycle.
4-Stroke, 125cc, performance motorcycle
with VT-i technology.
4-Stroke, 90cc scooterette for the new
generation.
4-Stroke, 100cc executive motorcycle
with revolutionary VT-i engine.
4 stroke, 150 cc premium performance
motorcycle.
4-Stroke,100cc value for money economy
motorcycle for good mileage and rugged terrain.
2-Stroke, 70cc moped.
Awards
Engineering
The Deming Prize
TVS Motor Company is the only two-wheeler company in the world to
be awarded the world’s
most prestigious and coveted recognition in Total
Quality Management
Technology Award 2002 from
Ministry of Science, Government of India for the
successful commercialization of indigenous
technology for TVS Victor
TPM Excellence Award -
First category by Japan Institute of Plant Maintenance (JiPm)
Asian Network for Quality Award
2004
TVS Scooty Pep won the prestigious 'Outstanding Design Excellence Award' from
Business World and National Institute of Design
Leadership
Star of Asia Award to Mr.
Venu Srinivasan, CMD TVS Motor Company by Business Week
International.
Venu Srinivasan, Chairman and Managing
Director, TVS Motor Company was Honoured with Doctorate in Science by
Management
Emerging Corporate Giant in the Private Sector
awarded by The Economic Times and the Harvard Business School
Association of India.
Best Managed Company award from
Business Today, one of
Most Investor friendly company by
Business Today, one of
Today,
there are over thirty companies in the TVS Group, employing more than 40,000
people worldwide and with a turnover in excess of USD 2.2 billion.
With steady growth, expansion and diversification, TVS commands a strong
presence in manufacturing of two-wheelers, auto components and computer
peripherals. They also have vibrant businesses in the distribution of heavy
commercial vehicles passenger cars, finance and insurance.
TV
Sundram Iyengar and Sons Limited (www.tvsiyengar.com)
TV Sundram Iyengar and Sons Limited operates through the three following
divisions:
TVS
Sundaram Motors
TVS and Sons distributes Heavy Duty Commercial Vehicles, Jeeps and Cars.
It represents premier automotive companies like Ashok Leyland, Mahindra and
Mahindra Ltd., Fiat and Honda. It also distributes automotive spare parts for
several leading manufacturers.
TVS & Sons has grown into a leading logistics solution provider and has set
up state-of-the-art warehouses all over the country.
It has also diversified into distributing Garage equipment that ranges from
paint booths to engine analysers and industrial equipment products.
Lakshmi Auto Components Limited - Large OE supplier of two wheeler gears
and camshafts.
Lucas Indian Service Limited (www.lucasindia.com) - The company looks after
the distribution of auto electrical components all over
Axles India Limited - A joint venture with Eaton Limited, U.K.
Manufactures axle housings and drive heads for heavy and light commercial
vehicles
Brakes India Limited (www.brakesindia.com) - A joint venture with
Lucas Automotive, U.K. Manufactures foundation and hydraulic brakes as well as
other products for automotive and non-automotive applications
Harita Grammer Limited - Manufacturer of automobile seats in
collaboration with Grammer, world leader in the category
India Motor Parts and Accessories Limited ( www.impal.net)
- One of India's largest distributors of spare parts
India Nippon Electricals Limited (www.indianippon.com)
- A joint venture with Kokusan Denki, Japan. Involved in the manufacture of
magnetos
Lucas TVS Limited (www.lucas-tvs.com) - A joint venture with Lucas
Industries,
Southern Roadways Limited - Giant in the Indian road transport industry,
company operates largest parcel service all over
Sundaram Brake Linings Limited (www.tvsbrakelinings.com)
- First Indian company to manufacture asbestos-free brake linings, woven clutch
facings and disc pads for automotive applications
Sundaram Fasteners Limited (www.sundram.com) -
Sundaram Finance Limited (www.sundaramfinance.com) - Leading consumer
finance company in India
Sundaram Industries Limited (www.sil.co.in, www.tvsrubber.com)
- With a reputation built over five decades, comprises several divisions:
custom moulded rubber products, tyre services and coach building. Also
specialises in refrigerated trucks and bunk beds
Sundaram Motors (www.tvsiyengar.com/sundarammotors.htm)
- Major dealers for Indian and foreign cars in
Sundaram Clayton Limited – (www.sundaram-clayton.com)
Sundaram-Clayton
Limited was established in 1962 in collaboration with Clayton
Dewandre Holdings Plc. (WABCO Automotive) pioneering the manufacture of air
brake systems in
The company's Die Casting Division, from being a captive supplier to the Brakes
Division, is developing into a full service supplier of aluminium components to
a host of Indian and multi-national companies. It has an installed capacity of
18000 MT per annum of gravity, low pressure and high pressure die castings and
plans to increase it to 24000 MT in the next two years.
Both the divisions are certified for QS 9000 and ISO 14001.
Products and Services
Brakes
division : Complete range of air brake actuation systems - compressors,
actuators, valves, brake chambers, spring brakes, slack adjusters, couplings,
hose assemblies, switches and vacuum boosters - for light/nedium and heavy
commercial vehicles and trailers. Anti-lock braking system (ABS) and Anti-spin
regulation (ASR) assemblies.
Die casting division : Sub-assemblies and/or machined aluminium components made
from gravity, low pressure and high pressure die casting processes.
Srinivasan
Services Trust (www.tvssst.org) - The SST (Srinivasan Services
Trust), an organization initiated by Sundaram Clayton Ltd and TVS Motor Company
Ltd for charitable purposes, has been promoting community development
programmes in Tamil Nadu, Gujarat Maharashtra and Karnataka.
Hosur,
August 1, 2006: Buoyed by a 28 per cent growth in its motorcycles, TVS Motor
Company’s total two wheeler sales in July 2006 clocked 1,21,462 units compared
to 1,01,359 units, during the same period last year. The total two-wheeler
growth stood at 20 per cent.
The motorcycle sales in July 2006 were higher at 68,335 units compared to
53,215 units during the year-ago period largely due to the growing popularity
of Apache and TVS StaR brands across all markets.
In a short period of time Apache has become the second-largest brand in the
premium segment and the company continues to ramp up its production to meet the
growing demand. The TVS StaR brand too has achieved significant growth. During
the month it crossed the cumulative 8,00,000 unit mark.
TVS Scooty sales clocked 25,356 units in July 2006 as against 24,244 units of
July 2005. The brand continued its market leadership in the sub-100 cc scooter
segment.
TVS Motor Company exported 10,382 units in July 2006, the highest ever export
sales in a single month, reflecting a growth of 15 per cent over the same
period last year.
TVS
Motor reports turnover of Rs. 9396.200 Millions, 26% growth
Chennai,
July 24th, 2006: TVS Motor Company recorded a growth of 26% per cent and
reported a turnover of Rs. 9396.200 Millions for the first quarter ended June
2006 compared to Rs. 7466 Millions recorded for the corresponding
quarter of the previous year.
The total two wheelers sold in Quarter One ended June 2006 was 376,328 units
compared to 307,425 units in the same period last year, recording a growth of
22%. The two-wheeler sales was buoyed by the strong performance of motorcycles,
which recorded 233,506 units during the quarter with a growth rate of 32%,
surpassing the industry growth of 24%.
Profit Before Tax (PBT) was at Rs. 301.400 Millions
compared to Rs. 360.800 Millions last year and Profit After Tax (PAT)
stood at Rs. 212.600 Millions compared to Rs. 249
Millions achieved during the same period last year.
Sales and Marketing
TVS
StaR City continues to be in demand and has crossed 800,000 mark since its
launch. TVS Apache has received excellent response in all the key markets where
it has been launched and the company is ramping up production to meet the
demand. TVS Apache has already become the number 2 brand in the premium segment
of the motorcycle market and is expected to gain a sizeable share in the
segment during the current financial year. TVS Scooty Pep+ continued to
maintain its leadership in the sub 100 cc segment.
Cost Management
TVS Motor Company’s profit for the first Quarter was however lower due to high
cost of materials especially steel, aluminum, rubber etc. In addition, the
company invested heavily in building its key brands during the quarter.
Assuming firmness in raw material prices is likely to continue, their endeavour
will be to improve the profitability by increased focus in operating
efficiencies and reducing cost in the supply chain through value engineering
and global sourcing.
Quality
The company is committed to achieving total customer satisfaction through
excellence in Total Quality Control (TQC) and continuously strives to give the
customer, the best value for money across all its products and services.
Exports
Exports in June 2006 recorded 10,122 units, the highest ever achieved by the
company in a single month. The total units exported during the quarter grew at
28% and were 25,772 units compared to 20,107 units recorded during the same
period last year. As part of its expansion to newer market, the company
recently entered into a joint venture agreement with a Colombian Party for
setting up an assembly plant in
New Projects
Three
new Projects namely the Three Wheeler, Himachal Pradesh and Indonesian venture
are progressing as per schedule. The trial production of its new plant at
Himachal Pradesh will commence shortly. The launch of three wheelers in
TVS
Motorcycle Sales up 24%
Hosur, July 1, 2006 : The 24% growth in motorcycles boosted
the overall two-wheeler sales of TVS Motor Company in June 2006 to 126,679
units compared to 108,111 units during June 2005, recording a growth of 17%.
The motorcycles clocked 74,683 units compared with 60,170 units of motorcycles
sold in June 2005 at a growth of 24%. This is the third successive month in the
current financial year that motorcycles sales at TVS Motor are up by more than
20 per cent.
During June 2006, strong performances by TVS StaR in the entry-level segment
and Apache in the premium segment helped boost the overall growth in motorcycle
segment. Apache continued its high growth curve and in a short span of its
launch has become the number two brand in the premium segment. The value
addition exercise undertaken for
TVS Scooty continues to be the market leader in the sub 100 cc scooter segment
recording sales volume of 25,227 units in June 2006 compared to 22,829 units
last year during the same period recording a growth of 11%.
On the export front, TVS Motor Company’s exports reached a new landmark by
crossing the 10,000 mark. The company exported 10,220 units, it’s highest ever,
in June 2006 recording a growth of 36% compared to the corresponding period
last year.
TVS Motor Company Limited, the flagship company of the USD 2.7 billion TVS Group,
is the third largest two-wheeler manufacturer in
TVS Motor reports highest ever turnover at Rs. 33059.600
Millions. PBT at Rs. 1684.500 Millions and PAT at Rs. 1170.000 Millions
June 26, 2006: TVS Motor Company achieved a turnover of Rs.
33059.600 Millions, in the financial year 2005-06, a growth
of 12% over previous year’s turnover of Rs. 29552.100
Millions. This represents the highest ever turnover achieved by the
company and has been a result of strong growth in motorcycles during the year.
The total two wheelers sold during 2005-06 was 1.34 million units, the highest
ever by TVS M, compared to 1.17 million units recorded in 2004-05 recording a
growth of 15%. The motorcycles recorded 8.06 lakh units during the year under
review against 6.79 lakh units in the previous year, recording 18.6 per cent
growth.
During 2005-06 several new products were launched by the company. These include
TVS Apache,
The launch of Apache towards the end of the financial year 2005-06 helped
strengthen the motorcycle portfolio of the company. Apache in the fourth month
of its launch has already become the number two brand in the premium motorcycle
segment and is expected to garner a sizeable share in the segment during the
current financial year. TVS Apache has to its credit several ‘bike of the year
awards’ from all leading Auto Magazines. It also won the best design award from
BBC TopGear and Overdrive magazine.
With the consolidation of TVS StaR City as one of the leading brands of
motorcycles in
EXPORTS
The Company recorded its highest ever export sales in a year by clocking 78,644
units in the financial year 2005-06 compared to 48,560 units in the
corresponding previous year, a growth of 62%. The company presently exports to
over 30 countries and during the year it received “Award for continuous
excellence” from Engineering Export Promotion Council.
NEW PROJECTS
The Three wheeler, Himachal Pradesh and Indonesian projects
are progressing as per schedule.
FINANCIALS
The revenues for the fourth quarter of 2005-06 was higher at Rs. 8606.200
Millions compared to Rs. 7703.900 Millions
achieved in the corresponding quarter last year, recording a growth of 11.7%.
PBT of fourth quarter of 2005-06 stood at Rs. 410.400
Millions compared to Rs. 632.400 Millions
recorded last year. PAT for the fourth quarter stood at Rs. 290.900
Millions compared to 479.200 Millions.
The company recorded a PBT of Rs. 1684.500
Millions in 2005-06 compared to Rs. 2004.500 Millions
recorded last year during the same period. During the same period PAT stood at
1170 Millions compared to 1375.700 Millions.
The above annual and fourth quarter PBT of 2004-05 includes
a one off item of Rs. 369.400 Millions being the reduction in liability
consequent to prepayment of a deferred sales tax loan.
The material cost in 2005-06 was significantly higher than 2004-05 on account
of stringent emission norms coupled with the rising cost of Aluminum, Steel,
rubber, plastic etc where the increase amounted to the tune of Rs. 970
Millions. Aggressive cost reduction programme through value engineering,
global sourcing etc. has borne good results and has helped the company to
substantially neutralize the above cost hike to a large extent. The focus on
raw material cost reduction and fixed costs will help the company to improve
its margin further in the future.
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.41.18 |
|
|
1 |
Rs.82.02 |
|
Euro |
1 |
Rs.56.07 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
56 |
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 |
|