MIRA
INFORM REPORT
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Report Date : |
14.05.2007 |
IDENTIFICATION DETAILS
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Name : |
LUCAS TVS LIMITED |
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Registered Office : |
6, (New No. 11, 13,14,15) |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.12.1961 |
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Com. Reg. No.: |
004678 |
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CIN No.: [Company
Identification No.] |
L35999TN1961PLC004678 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEL00043B |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers, Exporters and Importers of the most
comprehensive range of Auto Electricals |
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 14330000 |
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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 TVS Group.
The company is progressing well. Directors are reported as experienced and
respectable businessmen. Trade relations are 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 partners in a
medium to long run. |
LOCATIONS
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Registered Office : |
No. 6 [New No.11,13,14,15], |
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Tel. No.: |
91-44-28110063/28115624/28111200 |
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Fax No.: |
91-44-26257215/26257863 |
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E-Mail : |
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Website : |
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Telex: |
041-22046 / 22048 / 22087 LTVS IN |
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Corporate Office : |
Aalim Centre, 82, Dr. Radhakrishnan Salai Mylapore, Chennai -600 004, Tamilnadu. |
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Tel. No.: |
91-44-28110063/28110074 |
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Fax No.: |
91-44-28115624 |
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E-Mail : |
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Telex. : |
041-22046 / 22048 / 22087 LTVS IN |
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Chennai Address: |
Auto Electrical Division, Padi, Chennai – 600 050, Tamilnadu |
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Tel. No.: |
91-44-26258211/26257273 (Marketing) |
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Fax No.: |
91-44-26257215/26259642/26257863/26250305 (Marketing) |
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E-Mail : |
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Website: |
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Haryana Address |
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Tel. No.: |
91-1274-40754 |
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Fax No.: |
91-1274-40753 |
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Tel: |
91-413-2699131 |
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Fax : |
91-413-2699132 |
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Chennai Address: |
Mannur Thodukadu Post, Sriperumpudur Taluk, Chennai Mgr District, Tamilnadu |
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Tel: |
91-413-2699131 |
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Fax: |
91-413-2699132 |
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Branches : |
Mumbai, Kolkata, New Delhi, Chennai, Bangalore, Jalandhar, Ghaziabad, Guwahati, Kanpur, Ahmedabad, Jaipur, Bhubaneshwar, Hyderabad, Indore, Pune, Ambala, Ranchi, Jodhpur, Goa, Nagpur and Raipur. |
DIRECTORS
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Name : |
Mr. T. K. Balaji |
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Designation: |
Chief Executive and Managing Director |
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Date of Birth: |
12.07.1948 |
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Address : |
34, |
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Name : |
Mr. Suresh Krishna |
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Designation: |
Chairman |
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Date of Birth: |
24.12.1936 |
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Address : |
79, |
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Name : |
Mr. Venu Srinivasan |
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Designation: |
Director |
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Date of Birth: |
11.12.1952 |
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Address : |
Westside House, |
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Name : |
Mr. Gopal Srinivasan |
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Designation: |
Director |
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Date of Birth: |
04.08.1958 |
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Address : |
Westside House, |
KEY EXECUTIVES
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Name : |
Mrs. Nambi Rajan |
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Designation : |
Secretary |
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Name |
Mr. K. Seshadri |
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Designation |
Secretary |
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Date of Birth |
03.10.1933 |
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Address |
23, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of
Shareholders |
No. of shares |
|
T. V. Sundaram Iyengar and Sons Limited |
267984 |
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Sundaram Industries Limited |
270425 |
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Southern Roadways Limited |
91367 |
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Sundaram Finance Limited |
63224 |
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LIC |
82504 |
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GIC |
41249 |
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UTI Company Limited |
41249 |
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Hastham Swathi Private Limited |
116325 |
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Punarvasu Swasthi Private Limited |
116325 |
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14850 |
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Other Institutions |
82501 |
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Total |
1188000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers, Exporters and Importers of the most
comprehensive range of Auto Electricals |
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Products : |
Indian Market: Starter Motor, Alternator, Headlamp, Small Motor,
Dynamo Regulator, Dynamo, Ignition Coil, Distributor, Diesel Fuel Injection US/ European Market: Starter Motor, Alternator, Small Motor, Dynamo Regulator,
Dynamo, Auto Electricals. |
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Exports : |
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Products : |
Starters, Alternators, Dynamos & Regulators |
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Countries : |
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Imports : |
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Countries : |
Europe and |
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Terms : |
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Selling : |
- |
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Purchasing : |
L/C, D/A or D/P terms. |
PRODUCTION STATUS
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Class of Goods |
Licensed Capacity |
Installed Capacity |
|
Starters, Generator Regulator, Headlamps, Distributors, ESA Distributors, Ignition coil assemblies, Windscreen, Wiper Motors, Blower Motors, etc |
4590000 Pcs. |
5606788 Pcs. |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
2945 |
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Bankers : |
Ø
State Bank of Ø
Bank of Ø
The Hong Kong & Shanghai Banking
Corporation Ltd, 30 Rajaji Salai, Chennai
- 600 001, Tamil Nadu, Ø
HDFC Bank Limited, Chennai, Tamil Ø
UTI Bank Limited, Chennai, Tamil Ø
ABN Amro Bank, Chennai, Tamil Ø
Standard Chartered Bank, Chennai, Tamil Ø
Citi Bank Limited, Chennai, Tamil Ø
ICICI Bank Limited, Chennai, Tamil |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Brahmayya & Company Chartered Accountants |
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Address : |
156, |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
Ø Axles India Limited 110, Tel. No. 91-44-23741303/1174/2691 Fax No. 91-44-23741272 -Manufacturing Axles for Medium and Heavy Duty Commercial vehicles in Ø Brakes India Limited Padi, Chennai – 600050, Tamil Tel. No. 91-44-26258161 Fax No. 91-44-26257010/26257844 - Manufacturing Fondation Brake Equipment comprising Brake assemblies, Calipers, Rotors, Tandem Master Cylinders, Boosters, Wheel Cylinders, Valves, Clutch fluid to Dot3 and Dot4 specifications, permanent mould ferrous dye castings, Grey Iron, SG castings and engineering plastic compounds. Ø Harita Finance Limited Jayalakshmi Estates, 8, Tel. No. 91-44-28277155 Fax No. 91-44-28232296 - Corporate and Retail financing, leasing and hire purchase of equipment and discounting of bills Ø India Japan Lighting Limited 272, Anna Salai, Teynampet,
Chennai – 600018, Tamil Tel. No. 91-44-26274053/4153 Fax No. 91-44-26284253 -Manufacturers head lamps, rear combination lamps, signal lamps, plastic reflectors and plastic lenses Ø Indian Motor Parts and Accessories Limited 21, Tel. No. 91-44-28523996/28224097 Fax No. 91-44-285230009 - Distributors of Automobile Spare parts country wide Ø Sunco Machines Limited Ø TV Sundraram Iyengar & Sons Limited Ø India Nippon Electricals Limited AALIM Centre, 2nd
Floor, 82, - Manufacturers of flywheel magnetors, CDI/TCI control units, regulators/rectifier units and Ignition system parts
Ø Lakshmi Auto Components Limited Jayalakshmi Estates, 8, Tel. No. 91-44-28272233 Fax No. 91-44-28257121 - Manufacturers of Gears/Crank Shafts for 2 wheelers, fuel injection equipments Ø Sundaram Plastics Jayalakshmi Estates, 8, - Manufacturers of Plastic injection moulded components Ø Lucas Indian Services – [A subsidiary of TVS Lucas Limited] 6, Tel. No. 91-44-28523176 Fax No. 91-44-28523750 - Sales and Service of Lucas-TVs auto electricals and fuel injection systems. Battries/Lubricants/LISPART range of auto components, comprising of horns/relay/filters/bulbs/fan belts Ø Wheels India Limited Padi, Chennai – 600050, Tamil - Wheels for Commercial Vehicles/Cars, Jeeps and Tractors/Construction Equipment/ Earth Moving Equipments and defence vehicles. Wire wheels for exports and air suspension systems for Commercial vehicles. Ø Southern Roadways Limited Tel. No. 91-452-601281 Fax No. 91-452-601863 - Parcel Service booking and delivery through 12 branches and 531 booking offices in the four Southern states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh
Ø Sundaram Brake Linings Limited Padi,
Chennai – 600050, Tamil Tel. No. 91-44-26258111 Fax No. 91-44-26257572 - Manufacturers of Brake Linings
Ø Sundaram Clayton Limited Jayalakshmi Estates, 8, Tel. No. 91-44-28272233 Fax No. 91-44-28257121 - Manufacturers of Air Brale Activation Systems, Compressors, Actuators, Valves, brake Chambers, Spring Brakes, Slack Adjustors, Couplings, Horns, Switches, Vaccum boosters, for light medium, heavy commercial vehicles Ø Sundaram Dynacast Limited Post Tel. No. 91-44-26259169/26258161 Fax No. 91-44-26259168 - Manufacturers of Potentiometer Bushings, Clock Bushings, Panel nuts, Automotive Tyre valves, Spark plug terminal caps, Automobile and Industrial Fasteners
Ø Sundaram Fasteners Limited Padi, Chennai – 600050, Tamil Tel. No. 91-44-25268560 Fax No. 91-44-26257493/7728 - Manufacturers of Standard and Special Fasteners Ø Sundaram Industries Limited - Rubber Division- Manufacturers of moulded rubber and extruded rubber for export and domestic market. -
Coach Divison – - Tire Service – Retreading by cold cure process Ø Sundaram Textiles Limited Tel. No. 91-452-601431 Fax No. 91-452-601863 -
Qualited carded and combed cotton/yarn
in hand and cones in counts of 16s and 120s in single
and double yarns, TFO, Knitting, Weaving Yarn, Gassed, Singed, Mercerized,
bleached yarn of cones and hanks. Open
end yarn is cheese and hanks in counts of 6s to 20s Ø Transenergy Limited 185, SIDCO Industrial Estate,
Ambattur – 600098, Tamil Tel. No. 91-44-26250646 Fax No. 91-44-26254722 - CNG conversion kits for the following cars premier products : - Ambassdors, Maruti 800, Maruthi Omni, Maruthi Esteem, Maruthi Gypsy and Maruti Zen. Ø Turbo Energy Limited 67, Tel. No. 91-44-24322408 Fax No. 91-44-24343492 - The Latest K Series Turbo chargers for automotive and non automotive applications Ø TVS Cherry Private Limited Tel. No. 91-452-2420215/2420216 Fax No. 91-452-2420381 - Manufacturers of Precision Miniature, Sub Miniature Selector Switches and hall effect sensors for the appliances industry, Office Automations and Industrial applications. Key switches and advanced performance/special purpose keyboards for IT Industry. Ø TVS Electronics Limited 34,
Developed Plots, South Phase, Industrial Estate, Guindy, Chennai – 600032,
Tamil Tel. No. 91-44-22325506/22325509 Fax No. 91-44-22327577 - Manufacturers of Date of Appointment Matrix Printers, Keyboards, Uniterrupted Power Supplies [UPS], Distributors of Inkjet printers and Laser printers. Ø TVS Lanka Private Limited -Distributors of Ashok Leyland Commercial Vehicles, spare parts of Ashok Leyland, Tata and Tractors Ø TVS R & M Limited - Manufacturers of Main Distribution frames and Accessories Cross connection cabinets, distributions point boxes, drop wire products and fiber distribution frames for the public and private telecom network.
Ø TVS Sewing Needles Limited - Manufacturers of household needles in six sizes, industrial needles of 20 types for garment, hosiery, shoes, leather, canvas and jute stiching industries Ø TVS Sri Chakra Limited 10, Tel. No. 91-452-532116 Fax No. 91-452-530591 - Manufacturers of Tires/Tubes for 2/3 wheelers Industrial pneumatic tires, Farm implements tires, Mining tires, Antique tires and Phenolic and rubber moulded products -
Networking Division – Distributors of
Structured cabling products of De Massari of Ø TVS Suzuki Limited Post Tel. No. 91-4344-76780/76784 Fax No. 91-4344-77311/76011 - Manufacturers of Mopeds/Scooters and Motor cycles Ø TV Sundaram Iyengar and Sons Limited 7B, Tel. No. 91-452-743801/743806 Fax No. 91-452-741587 - Manufacturers for Heavy Duty Commercial vehicles, jeeps and Cars. It represents various leading manufacturer like Ashok Leyland/Mahindra and Mahindra, Fiat/Honda. Largest distributor of spare parts in the country handling 25000 part lines Ø Unipart TVS Limited 25, Ganapathi Colony, Tel. No. 91-44-24321541 Fax No. 91-44-2432275 -Marketing and Distribution of components for Commercial vehicles, Cars, Motor Cycles and Industrial applications. Ø TVS Interconnet Systems Private Limited 7B, - RF Products – RF-Coax Connectors, RF-Coax Cables, Wall Entries and Cushions, Patch Antennas, RF Passive Components, Grounding Kits, Cable Clamps, etc. - Fiber Optic Products – Opto Electronic Components, Accessories, Adaptors, Alternators, Splice Protection Systems, etc - Connectors – Leaded Modular Jacks, Wiring Harness, High speed System Interconnect assemblies - D-Sub and Miniature D-Sub Connectors – Crimp to Wire connectors 2.54 mm, Crimp to Wire connectors 3.96 mm, Crimp to Wire connectors 5.00 mm, Crimp to Wire connectors 8.00 mm, etc - Photonics – Photonics Network and components, Sinulation software, etc. - Broadband – Broad band Communications Equipment and components. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11880000 |
Equity Shares |
Rs.10/- each |
Rs.118.800
millions |
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 |
118.800 |
118.800 |
118.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3362.600 |
2984.800 |
2565.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3481.400 |
3103.600 |
2684.700 |
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LOAN FUNDS |
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1] Secured Loans |
78.900 |
24.900 |
63.600 |
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2] Unsecured Loans |
24.000 |
85.800 |
96.400 |
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TOTAL BORROWING |
102.900 |
110.700 |
160.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3584.300 |
3214.300 |
2844.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1179.200 |
982.000 |
853.600 |
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Capital work-in-progress |
198.800 |
149.500 |
81.700 |
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INVESTMENT |
608.500 |
716.000 |
782.800 |
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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 |
727.000
|
587.700 |
340.800 |
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Sundry Debtors |
999.800
|
874.200 |
945.600 |
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Cash & Bank Balances |
167.900
|
43.500 |
67.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
862.100
|
830.300 |
700.700 |
|
Total
Current Assets |
2756.800
|
2335.700 |
2054.400 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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|
Current Liabilities |
1197.500
|
920.400 |
822.400 |
|
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Provisions |
0.000
|
112.000 |
193.500 |
|
Total
Current Liabilities |
1197.500
|
1032.400 |
1015.900 |
|
|
Net Current Assets |
1559.300
|
1303.300 |
1038.500 |
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MISCELLANEOUS EXPENSES |
38.500 |
63.500 |
88.100 |
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TOTAL |
3584.300 |
3214.300 |
2844.700 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
7212.900 |
6150.600 |
5347.100 |
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Other Income |
204.900 |
1183.100 |
975.200 |
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Total Income |
7417.800 |
7333.700 |
6322.300 |
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|
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Profit/(Loss) Before Tax |
712.000 |
873.200 |
770.800 |
|
|
Provision for Taxation |
144.600 |
252.000 |
194.500 |
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|
Profit/(Loss) After Tax |
567.400 |
621.200 |
576.300 |
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
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Manufacturing Expenses |
0.000 |
176.200 |
148.600 |
|
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Administrative Expenses |
530.000 |
337.500 |
279.600 |
|
|
Raw Material Consumed |
4951.300 |
3990.700 |
3367.900 |
|
|
Interest |
17.700 |
19.100 |
20.400 |
|
|
Power & Fuel |
111.200 |
97.200 |
89.300 |
|
|
Depreciation & Amortization |
0.000 |
129.300 |
157.800 |
|
|
Other Expenditure |
1095.600 |
1710.500 |
1487.900 |
|
Total Expenditure |
6705.800 |
6460.500 |
5551.500 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.03 |
0.05 |
0.05 |
|
Long
Term Debt-Equity Ratio |
0.03 |
0.03 |
0.03 |
|
Current
Ratio |
2.26 |
2.05 |
2.00 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.48 |
2.34 |
2.24 |
|
Inventory |
10.97 |
13.25 |
15.77 |
|
Debtors |
7.70 |
6.76 |
5.95 |
|
Interest
Cover Ratio |
41.23 |
46.72 |
38.78 |
|
Operating
Profit Margin(%) |
10.12 |
16.61 |
17.75 |
|
Profit
Before Interest And Tax Margin(%) |
10.12 |
14.51 |
14.80 |
|
Cash
Profit Margin(%) |
7.87 |
12.20 |
13.73 |
|
Adjusted
Net Profit Margin(%) |
7.87 |
10.10 |
10.78 |
|
Return
On Capital Employed(%) |
21.79 |
30.21 |
31.82 |
|
Return
On Net Worth(%) |
17.23 |
21.46 |
23.50 |
LOCAL AGENCY FURTHER INFORMATION
Lucas -
TVS was set up in 1961 as a joint venture of Lucas Industries plc.,
The
combination of these two well-known groups has resulted in the establishment of
a vibrant company, which has had a successful track record of sustained growth
over the last three decades.TVS is one of India's twenty large industrial
houses with twenty-five manufacturing companies and a turnover in excess of US$
1.3 billion. The turnover of Lucas-TVS and its divisions is US$ 233 million
during 2003-2004.
Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has
emerged as one of the foremost leaders in the automotive industry today. Lucas
TVS reaches out to all segments of the automotive industry such as passenger
cars, commercial vehicles, tractors, jeeps, two-wheelers and off-highway
vehicles as well as for stationary and marine applications. With the automobile
industry in
The operations of the
company has been divided into 5 division are :
- Auto Electricals
Subject has emerged as a total automobile electrical systems supplier.
The auto electrical division of Lucas-TVS manufactures a complete range of auto electrical products from starters to horns. Taking the lead through technology, Lucas TVS provides its customers with products incorporating the most contemporary technology.
The key driving force behind the design and development of new products is the company's in-house engineering centre. With its fine facilities and latest techniques, there is a continuous pursuit of technological breakthroughs.
- Fuel Injection Equipments
The company’s diversification into Fuel Injection Equipment constitutes
a landmark for the automotive industry. In 1990, the company in collaboration with the Lucas Group set up a factory at Mannur near Chennai to manufacture diesel fuel injection equipment.
The company employs some of the best practices in the latest manufacturing technology and methodology through the latest productivity enhancing techniques and streamlined production processes. Backed by a team of highly qualified scientists, engineers and technicians, the company provides customers with products designed to give total satisfaction.
- Electronic Ignition Systems
A joint venture of Lucas Indian Service and Kokusan Denki Co. Ltd., Japan, India Nippon Electricals Limited (INEL) was established in 1985 to manufacture electronic ignition systems for two wheelers and portable gensets.
INEL believes in commitment to quality, customer satisfaction and employee motivation. Efforts to constantly give products of top quality make it one of the foremost service providers in the industry. An ISO 9001 certified company, INEL's commitment to maintain international quality standards has earned self-certification status from leading OE buyers and recognition from the Department of Science and Technology, Ministry of Industry, Government of India.
- Automotive Lighting
- After Market Operations
Lucas Indian Service, established in 1930, is engaged in the sales and services of auto electricals and fuel injection equipment manufactured by Lucas-TVS. The company has four regional offices located in the metros and 22 branch offices covering every major state.
Lucas Indian Service possesses a unique strength in its service to the Indian industry - a network of branches and a host of service dealers steadily developed over the years. The company's extensive distribution network comprising over 2000 outlets spans the entire length and breadth of the country.
It is now in the process of setting up a network of service dealers, whose workshops will measure up to international standards. In its efforts to become a leading, auto ancillary distribution house, Lucas Indian Service is continuously on the look out for tie-ups with reputed companies for marketing their products.
auto industry review
The automotive industry recorded its biggest volume growth during the year. The four wheeler vehicle industry reached a peak production of 1.38 million vehicles, an increase of 29% over the previous year. The thrust was provided by the passenger car segment which touched a production level of 822K, a volume gain of 32%. Competitive pricing, innovative credit schemes at attractive interest rates and intensive sales promotion by the vehicle manufactures contributed to the buoyancy. The passenger car industry is planning to produce over one million cars in 2004-05.
Manufacturers had plans to introduce Euro III compliant
vehicles. In the small car segment new products offerings are confirmed to
remodeling of existing platforms, wile in the mid size “C” segment new offerings
are expected.
The passenger utility vehicle recorded a second successive year of growth with production at 171 K, which represented a growth of 28%. Mahindra & Mahindra continues to be the leader in this segment with a 53% market share.
With the "Golden Quadrilateral" Highway scheme having become operational in many of the segments, the transit time has shrunk significantly, providing an impetus to the commercial vehicle segment, which registered a growth of 36% and 38% respectively in the LCV and CV segments. The two major commercial vehicle manufacturers have plans to introduce new generation vehicles with change of engines to suit Euro II / Euro III applications.
Thanks to a good monsoon in parts of the country, the tractor industry
registered a modest growth of 9% with a production of 167K. This still
represents a decline of 35% over the peak production levels registered in
1999-2000. It is expected, however, that the current levels of growth will be
sustained during 2004-05.
Scooter and moped production continue to decline while motor cycle production
has grown. Your company has made a beginning in supply of starters to motor
cycles. The three wheeler segment registered a growth of 26% at 341 K. Your
company supplies products to all leading three wheeler vehicle
manufacturers.
Government of
company overview
The company's performance reflected the volume growth registered in the automotive industry, with sales increasing by 25% and profits by 45% through new businesses, cost reduction and improvement in operational efficiencies, detailed below.
NEW BUSINESS
The Indian vehicle industry is adopting global practices and has commenced
contracting businesses with vendors for new product platforms likely to be
introduced in 2006-07. The company has evolved strategies to secure new
businesses. The company has been able to secure new business worth Rs. 650
millions with leading vehicle manufacturers over the next two years. In
2003-04, the company executed new businesses worth Rs. 280 millions.
NEW PRODUCTS
During the year under report, the company broadbased the internal fan
alternator range and commenced manufacture of starters for motor cycles,
besides introducing contemporary gear reduction starters for four wheeler
applications. The company is committed to time bound localisation programme for
manufacture of gear reduction starters and has taken initiatives in expanding
its range of small motors, besides adding window lift motors in its
range.
NEW MARKETS
The company has taken initiatives, earlier years in seeking
out 5, new overseas markets are beginning to yield results. The company has
made its first shipment for original equipment fitment in
OPERATIONS
The company has augmented further capacities forming new product lines as
necessary to meet the surge in demand during the year. Value Analysis/Value
Engineering techniques are being employed to achieve cost reduction.
Improvements in productivity were achieved through continued improvements in
manufacturing methodology and by redesigning of business processes. As part of
its on going drive to rationalise its workforce, the company was able to reduce
its manpower in its Padi plant by 7%.
The company’s employees continued to participate in regional and national
competitions and have won awards in national competitions during the year under
review. The company participated in a number of community welfare measures around
its factory locations in Chennai and
It is in trade terms with :
Ø Maruti Udyog Limited
Ø Hindustan Motors Limited
Ø Tata Engineering and Locomotive Company Limited
Ø
General Motors,
Ø Ford India Limited
Ø
Daewoo Motors Company,
Ø
Ø
Hyundai Motors,
Ø Bajaj Tempo Limited
Ø Mahindra & Mahindra Limited
Ø Mahindra Nissan
Ø Swaraj Mazda
Ø Eicher Motors Limited
Ø Ashok Leyland Limited
Ø Tractors and Farm Equipments Limited
Ø Escorts Limited
Ø Hindustan Machine Tools Limited
Ø Eicher Tractors Limited
Ø Punjab Tractors Limited
Ø
Ø L & T Tractors
Ø Greaves Tractors
Ø Bharat Earth Movers Limited
Ø Cummins India Limited
Ø Tata Cummins Limited
Ø Simpsons
Ø
Ø Kirloskar Oil Engines Limited
Ø
Helwan Diesel Engineering Company,
Ø
Lucas Electrical,
Ø
Delco Remy,
Ø
Prestolite Electric Limited,
After
The company has been awarded with "ISO 9001" Certification.
The company has International Collaboration with the following companies :
Ø
Ø
Ø
Ø
General Motors,
Ø
Ø
Ø
Ø
Hyundai Motors,
Ø
Daimler
Ø
Ø
Ø
Ø
Ø
Ø
International Harvestor Corporation,
Ø
Massey
Ø
Ø
Ø
Good
Ø
Ø
Ø
Some of its’ major
customer are :-
- Maruti Udyog
- Tata Engineering and Locomotive Company
- General
Motors,
- Ford
- Daewoo
Motors Company,
- Hyundai
Motors,
- Tata Engineering and Locomotive Company
- Bajaj Tempo
- Mahindra & MAhindra
- Mahindra Mazda
- Eicher Motors
- Tata Engineering & Locomotive Company
- Ashok Leyland
- Tractors and Farm Equipments (TAFE)
- Escorts
- HMT
- Eicher Tractors
- L & T Tractors
- Greaves Tractor
- Bharat Earth Movers Limited
- Cummis
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.40.90 |
|
|
1 |
Rs.80.78 |
|
Euro |
1 |
Rs.55.18 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
69 |
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 |
|