MIRA INFORM REPORT

 

 

Report Date :

23.11.2007

 

IDENTIFICATION DETAILS

 

Name :

FEDERAL – MOGUL GOETZE (INDIA) LIMITED

 

 

Formerly Known As :

GOETZE INDIA LIMITED

 

 

Registered Office :

A-26/3 Mohan Cooperative, Industrial Estate, Phase III, New Delhi-110044

 

 

Country :

India

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

01.01.1901

 

 

Com. Reg. No.:

55-2452

 

 

CIN No.:

[Company Identification No.]

L74899DL1954PLC002452

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRG03352G

 

 

PAN No.:

[Permanent Account No.]

AAACG3769M

 

 

Legal Form :

Public Limited Liability Company.  The company's shares are listed on Stock Exchanges

 

 

Line of Business :

Manufactures of automobile accessories namely piston rings, pistons, cylinder liners, light alloy cylinders, piston castings and groove insert sleeves.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company and now a subsidiary of Federal – Mogul, Germany. Trade relations are fair. Financial position is satisfactory. Profit margin is under server pressure. Payments are correct and as per commitments.

 

The company can be considered good for any normal business dealings since it is backed by Federal – Mogul Vermogensverwaltungs GmbH, Germany   

 

 

LOCATIONS

 

Registered Office :

A-26/3 Mohan Cooperative, Industrial Estate, New Delhi 110 044

Tel. No.:

91-11-26318258 / 26820058 / 26912706 / 26928423/26932794

Fax No.:

91-11-26318260/51497601

E-Mail :

rogoetze@nda.vsnl.net.in, info@goetzeindia.net

goetzein@satyam.net.in

Website :

http://www.goetzeindia.net

 

 

Head Office :

Corporate Centre, 15/5, Mathura Road, Faridabad - 121 003, Haryana

Tel. No.:

91-129-527 5981-89

Fax No.:

91-129-527 8476/6729/6713

 

 

Factory 1 :

Bahadurgarh, Patiala (Punjab)

 

 

Factory 2 :

Yelahanka, Bangalore (Karnataka)

 

 

Factory 3 :

SPL 1240-44, RIICO Industrial Area, Phase-l Extn., Bhiwadi (Rajasthan)

 

 

Factory 4 :

Plot No.46, Sector-11, IIE-Pantnagar, Udham Singh Nagar, (Uttarakhand)

 

 

DIRECTORS

 

Name :

Mr. Charles B. Grant

Designation :

Chairman and Director

 

 

Name :

Mr. Arun Anand

Designation :

Vice Chairman, Managing Director and CEO

Date of Birth/Age :

50 Years

Qualification :

B.A. Eco.  (Hons) and Chartered Accountant

Experience :

29 Years

Date of Appointment :

26.04.1982

Previous Employment :

Escorts Limited Senior Divisional Manager

 

 

Name :

Mr. Rainer Jueckstock

Designation :

Directors

 

 

Name :

Mr. Charles H. Polzin

Designation :

Directors

 

 

Name :

Mr. Mukul Gupta

Designation :

Directors

 

 

Name :

Mr. Vishvjeet Kanwarpal

Designation :

Directors

 

 

Name :

Mr. Ahuja Ashok

Designation :

Director- Procurement

Date of Birth/Age :

55 Years

Qualification :

Mechanical  Engineer

Experience :

35 Years

Date of Appointment :

01.10.1992

Previous Employment :

Kone Elevators (India) Limited

 

 

Name :

Mr. Anand Rakesh

Designation :

Director- Projects

Date of Birth/Age :

55 Years

Qualification :

Bachelor of  Technology in Mechanical Engineering

Experience :

36 Years

Date of Appointment :

01.04.1975

Previous Employment :

Punjab Anand Batteries Limited

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajan Luthra

Designation :

Financial Controller and Company Secretary

Date of Birth/Age :

45 Years

Qualification :

Company Secretary, Cost and work Accountant and Post Graduate Diploma in Personnel Management

Experience :

26 Years

Date of Appointment :

28.04.1997

Previous Employment :

Talbros Automotive Components Limited

 

 

Name :

Mr. Nanda Anil

Designation :

Chairman and Managing Director

Date of Birth/Age :

55 Years

Qualification :

Sr. Cambrige

Experience :

34 Years

Date of Appointment :

01.07.1981

Previous Employment :

Intercontinent (Travancore) Private Limited Manager

 

 

Name :

Mr. Kolf Wilhelm Andreas

Designation :

Executive Director- Operations

Date of Birth/Age :

44 Years

Qualification :

First Law Exam and Second Law Exam

Experience :

11 Years

Date of Appointment :

12.06.2006

Previous Employment :

Federal-Mogul GmbH, Germany

 

 

Name :

Mr. Murdock Ray Rustin

Designation :

Director-Plant Finance

Date of Birth/Age :

47 Years

Qualification :

Bachelor  Degree in Accounting and Master Degree in Business Administration

Experience :

15 Years

Date of Appointment :

01.07.2006

Previous Employment :

Olympic Arena Inc.

 

 

Name :

Mr. Narayanan Mohan

Designation :

Executive Director- Application Engineering and Sales*

Date of Birth/Age :

56 Years

Qualification :

B Sc. and MBA

Experience :

34 Years

Date of Appointment :

22.08.2006

Previous Employment :

Goetze TP (India) Limited

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2007

 

Category of Shareholder

No. of Shares

Percentage of Holding

Shareholding of Promoter and Promoter Group2

 

 

Foreign

 

 

Bodies Corporate

12669437

50.10

Public shareholding

 

 

Institutions

 

 

Mutual  Funds/ Axis

4119252

16.29

Financial Institutions / Banks

51837

0.20

Insurance Companies

2606269

10.31

Foreign Institutional Investors

2766463

10.94

Non-institutions

 

 

Bodies Corporate

343500

1.36

Individuals

 

 

Individuals -i. Individual shareholders holding nominal share capital up to Rs 0.100 Million

2636096

10.42

ii. Individual shareholders holding nominal   share capital in excess of Rs. 0.100 Million

89225

0.35

Trusts

5470

0.02

TOTAL

25287549

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufactures of automobile accessories namely piston rings, pistons, cylinder liners, light alloy cylinders, piston castings and groove insert sleeves.

 

 

Product

Ř       Pistons – 840991.04

Ř        Piston Rings – 840991.05

Ř       Cylinder Liners

Ř       Sintered Parts

Ř       Engine Parts – Petrol  - 840991.09

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Piston Rings

 (Nos.)

Delicensed

54960000

32727260

Piston

 (Nos.)

-Do-

13567792

6550330

Pins

 (Nos.)

-Do-

13478250

7049712

Cylinder Liners

 (Nos.)

-Do-

602309

272372

Light Alloy Cylinders

 (Nos.)

-Do-

382936

1 97423

Valve Train Components

 (Nos.)

-Do-

27000000

18461997

Structural Components

 (Nos.)

-Do-

2800000

2855721

 

 

GENERAL INFORMATION

 

Customers :

Ř       Escorts Limited (Auto Suspension Division)

Ř       Escorts Limited (Farmtrac Division)

Ř       Escorts Limited (Tractor Division)

Ř       Hindustan Motors Limited

Ř       Hero Motors Limited

Ř       Kinetic Engg. Limited

Ř       L and T Komatsu Limited

Ř       L. M. L. Limited

Ř       Mahindra and Mahindra Limited 
(Tractor Division)

Ř       Monto Motors Limited

Ř       Patel Field Marshal

Ř       P M Diesels Limited

Ř       Royal Enfield Motors (Eicher Limited.)

Ř       Southern Agro Engines Private Limited

Ř       Swaraj Engines Limited

Ř       Tata Cummins Limited

Ř       Tata Motors

Ř       TVS Suzuki Limited

Ř       VST Tillers Tractors Limited

Ř       Voltas Limited

Ř       International Tractors Limited

Ř       Indian Railways

Ř       Kinetic Motors India Limited

Ř       Kirloskar Oil Engines Limited

Ř       L and T John Deere Limited

Ř       Mahindra and Mahindra Limited
(Automotive Division)

Ř       Majestic Auto Limited

Ř       New Holland Tractors

Ř       Fiat India Limited

Ř       Premier Automobiles

Ř       San Engg. and Locomotive

Ř       Scooters India Limited

Ř       Sundaram Clayton Limited

Ř       Swaraj Mazda Limited

Ř       Tata International Limited

Ř       Yamaha Motor India Private Limited

 

 

No. of Employees :

About 2000

 

 

Bankers :
  • ABN AMRO Bank NV
  • Centurion Bank of Punjab
  • Deutsche Bank AG
  • HDFC Bank Limited
  • ING Vysya Bank Limited
  • State Bank of India
  • State Bank of Patiala
  • Axis Bank
  • Yes Bank Limited

 

 

Facilities :

Secured Loan

Amount in Millions

As on 31.12.2006

Loans and Advances from Banks

1979.266

Term Loans

14.900

Vehicle Loans from Banks

527.899

Working Capital Loans from Banks

13.454

Customer Bills Discounted with Banks

2.391

Interest Accured and Due

2537.910

 

1979.266

1. Term loans repayable within one year Rs. 1142.375 Millions (Previous Year Rs 1403.833 Millions)

 

2. Term loans from banks are secured by

 

  • Rs.566.816 Millions (Previous Year 813.438 Millions) are secured by a first charge ranking pari-passu inter-se on the immovable and movable fixed assets of the Company.
  • Rs.Nil (previous Year Rs.41.250 Millions) are secured / to be secured by a first charge on the movable fixed assets of the Company.
  • Rs.Nil (Previous Year Rs.22.982 Millions) are secured by a first pari-passu charge on the immovable and movable fixed assets consisting of plant and machinery, land and building, stores and spares of the Company's factories situated at Patiala (Punjab) and Bangalore (Karnataka).
  • Rs.Nil (Previous Year Rs.200 Millions) are secured by a second subservient charge on the movable fixed assets of the Company situated at Patiala (Punjab) Bangalore (Karnataka) and Bhiwadi (Rajasthan).
  • Rs.375 Millions (Previous Year Rs.500 Millions) are secured by first pari-passu charge on the entire block of fixed assets and second charge over current assets to cover the uncovered portion.
  • Rs.262.450 Millions (Previous Year Rs.320.800 Millions) are secured by first pari-passu charge with all secured lenders on the entire assets of the Company.
  • Rs.Nil (Previous Year Rs. 149.762 Millions) are secured by first pari-passu charge on all fixed assets excluding land, buildings and vehicles, with other term lenders.
  • Rs.250 Millions (Previous Year Rs.250 Millions) are secured by first pari-passu mortgage and charge on the entire movable and immovable fixed assets excluding specific items of fixed assets having exclusive charge, if any.
  • Rs. 125 Millions (Previous Year Rs. 218.750 Millions) are secured by first pari-passu charge on current assets and second pari-passu charge on fixed assets.
  • Rs. 100 Millions (Previous Year Rs.Nil) are secured against hypothecation of stocks of raw materials, stores, semi finished goods, finished goods and book debts both.
  • Rs.300 Millions (Previous Year Rs.Nil) are secured by first pari-passu charge on the gross block of the company i.e. fixed movable assets
  • of the company in Bahadurgarh, Yelahanka, Bhiwadi and Alwar, subject to prior charges created and/ or to be created in favour of our
  • Company's bankers on our stock of raw materials, semi-finished and finished goods, consumable stores, book debts.

 

3. Vehicle loans of Rs. 14.900 Millions (Previous Year Rs. 17.933 Millions) from banks are secured by way of hypothecation of the underlying vehicles.

 

4. Working capital loans from banks are secured against hypothecation of stocks of raw materials, stores, semi finished goods, finished goods and book debts both present and future.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

S.R. Batliboi and Company

Chartered Accountants

 

 

Collaborators :

-          Federal Mogul Corporation, UK

-          Federal Mogul Piston Ring Inc., USA

-          Goetze Technologie-Vertriebs Und Service GmbH, Germany

 

 

Ultimate Holding Company :

Federal Mogul Corporation, USA

 

 

Associates :

-          Gl Power Corporation Limited (w.e.f October 13, 2005)

-          GTZ Securities Limited

 

 

Subsidiaries :

-          Goetze TP (India) Limited

-          Satara Rubbers and Chemicals Limited

 

 

Group Company :

-          Federal Mogul Holding Limited, Mauritius

-          Federal Mogul, Nuremberg, GmbH

-          Federal Mogul Sintered Products Limited

-          Federal Mogul Wiesbaden GmbH, Germany

-          Federal Mogul Power Train System

-          Federal Mogul Automotive Products

-          Federal Mogul, Burschied, U.K.

-          Federal Mogul Bimet S.A.

-          Federal Mogul Operation S.R.L.

-          Federal Mogul Holding Deutscland

-          Federal Mogul Gorzyce, S.A.

-          AN Enterprises Private Limited

-          An-Net Infotech Limited

-          Escorts Farms Limited

-          Hari Raj Investments and Consultants Private Limited

-          Gl Insurance Services Limited

-          Gossini Fashion Limited (earlier AN-GIP Leather (India) Limited)

-          Akme Projects Limited

-          Gl Power Corporation Limited

-          GTZ Securities Limited

-          Gl Wind Power Company Limited

-          Joint Investment Private Limited

-     Spade Financial Services Limited

 

 

Membership:

-          Confederation of Indian Industry

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

8,00,00,000

 

Equity Shares of

Rs.10 each

Rs. 800.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2,52,87,549

 

Equity Shares fully paid

Rs. 10 each

 

Rs. 252.875 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2006

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

252.875

252.875

252.875

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

759.265

759.265

1332.814

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1012.140

1012.140

1585.689

LOAN FUNDS

 

 

 

1] Secured Loans

2537.910

3294.242

2412.863

2] Unsecured Loans

1106.495

601.829

603.905

TOTAL BORROWING

3644.405

3896.071

3016.768

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

4656.545

4908.211

4602.457

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3363.905

3222.324

3226.643

Capital work-in-progress

179.731

65.034

156.678

 

 

 

 

INVESTMENT

213.518

224.340

292.526

DEFERREX TAX ASSETS

0.000

0.000

43.080

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1323.085
1348.475
970.017

 

Sundry Debtors
731.980
683.904
345.504

 

Cash & Bank Balances
4.899
22.014
14.612

 

Other Current Assets
5.617
7.699
36.909

 

Loans & Advances
315.315
297.676
303.058

Total Current Assets
2380.896

2359.768

1670.100

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
1477.815
889.598
813.198

 

Provisions
113.245
120.077
182.181

Total Current Liabilities
1591.060

1009.675

995.379

Net Current Assets
789.836
1350.093
674.721

 

 

 

 

MISCELLANEOUS EXPENSES

109.555

46.420

208.809

 

 

 

 

TOTAL

4656.545

4908.211

4602.457

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.12.2006

31.03.2006

31.03.2005

Sales Turnover

3926.728

4538.666

4543.625

Other Income

128.128

121.538

--

Total Income

4054.856

4660.204

4543.625

 

 

 

 

Profit/(Loss) Before Tax

[56.105]

(378.781)

325.173

Provision for Taxation

14.060

81.074

104.844

Profit/(Loss) After Tax

[63.135]

(459.855)

220.329

 

 

 

 

Earnings in Foreign Currency :

 

 

 

Total Earnings

154.751

288.764

462.282

 

 

 

 

Imports :

 

 

 

 

Raw Materials

178.100

177.972

 

 

Stores & Spares

91.600

66.528

 

 

Capital Goods

354.100

218.764

 

Total Imports

623.800

463.264

NA

 

 

 

 

Expenditures :

 

 

 

 

Raw Materials and Components Consumed

1179.928

1345.381

 

 

Personnel Expenses

931.440

1100.683

 

 

Operating and Other Expenses

1421.212

2269.301

 

 

Decrease/ (increase) in Inventories

88.663

[360.348]

 

 

Depreciation and Amortisation

281.965

341.702

 

 

Provision for Impairment Losses on Assets held for Sale

0.000

25.807

4215.457

 

Increase of Excise Duty on Finished Goods

[28.694]

46.683

 

 

Financial Expenses

261.334

330.268

 

 

Expenditure Capitalised for Self Constructed Assets

[24.887]

[60.492]

 

Total Expenditure

4110.961

5038.985

4215.457

 

QUARTERLY RESULTS

 

PARTICULARS

 

31.03.2007

[1st Quarter]

30.06.2007

[2nd Quarter]

30.09.2007

[3rd Quarter]

Sales Turnover

1497.800

1465.800

1447.400

Other Income

75.200

79.200

85.900

Total Income

1573.000

1545.000

1533.300

Total Expenditure

1348.700

1326.700

1388.700

Operating Profit

224.300

218.300

144.600

Interest

98.400

113.500

93.300

Gross Profit

125.900

104.800

51.300

Depreciation

100.700

101.500

105.500

Tax

2.400

[0.300]

2.700

Reported PAT

42.800

8.600

[81.900]

 

KEY RATIOS

 

PARTICULARS

 

31.12.2006

31.03.2006

31.03.2005

Debt-Equity Ratio

4.04

3.06

2.25

Long Term Debt-Equity Ratio

1.89

1.56

0.99

Current Ratio

0.75

0.85

0.75

TURNOVER RATIOS

 

 

 

Fixed Assets

1.18

1.06

1.09

Inventory

4.54

4.49

5.82

Debtors

8.57

6.59

7.96

Interest Cover Ratio

0.75

-0.29

2.16

Operating Profit Margin(%)

10.52

4.75

17.36

Profit Before Interest And Tax Margin(%)

4.33

-1.81

12.03

Cash Profit Margin(%)

4.63

-3.15

9.71

Adjusted Net Profit Margin(%)

-1.56

-9.71

4.39

Return On Capital Employed(%)

0.00

0.00

13.69

Return On Net Worth(%)

0.00

0.00

15.53

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

History

 

Goetze (India) Limited (GIL), is a Joint Venture Company of Federal Mogul in India. The company promoted by Escorts in November, 1954 in technical and financial collaboration with Goetz-werke of Germany is one of the leading manufacturer of Automotive Piston Rings in the world. The product range covers Piston rings, Pistons, Cylinder liners, Light Alloy Castings and Sintered Products. 


GIL's takeover of Escorts Mahle Limited, a leading manufacture of Piston Rings in October, 2002 made it the largest producer of Piston Assemblies. The company has the production capacity of 50 million piston rings and over 8 million pistons per year. 


The company had set up its first plant at Patiala and started commercial production in 1957. The second plant at Bangalore was started in 1977. 


Turneer & Novell, UK which had acquired Goetze internationally has indirectly got a 26% stake in GIL which was hold by Goetze in GIL. 


Goetze India has business interest in auto accessories, solvent extraction and leather garments. As a part of restructuring it has exited from the leather garment business and is planning to exit from the solvent extraction business as this plant was shut down through out the year 2000-2001 due to poor industrial conditions. 


The company manufactures automobile accessories namely piston rings, pistons, cylinder liners, light alloy cylinders, piston castings and groove insert sleeves. In 1999-2000, the company has expanded the production capacity of piston rings to 5,09,49,360 nos per annum. And in year 2001 the company merged the Federal Mogul Sintered Products Limited (FMSPL), which manufactures sintered metal parts using powder metal technology under world renowned 'BRICO' brand, with the company due to business synergies.

 
In 1989-1990, it diversified into the manufacture and export of food products, solvent oil extraction and chain of supermarkets. For chain of supermarkets it has entered into a joint venture with Nanz Germany and also set up a joint venture company, Nanz Food Products for the manufacture of meat and poultry products. The plant to process mustard and sunflower seed and soyabeans has also been set up. And in 1992-93 the company has set up a 100% EOU for leather garments to increase the export earnings. But in 1998-99, this leather garments division was hived off into a seperate company [ GIP Leather (India) ] in joint venture with M/s Speith & Wensky of Germany in which the company holds 70 % equity. In 1995-96, a new company Brico Goetze (India) was set up in collaboration with T&N Plc for manufacture of Sintered Metal Components. 


As the Government has introduced various new emission norms, the focus in the type of rings has shifted, that are required by the customer both in terms of materials as well as profiles & coatings. Subsequent to this the market conditions of Automotive Business seems to be a promising as India is likely to become a global source for rings for many International vehicle manufacturers. 


The company made proposal to acquire the entire share capital of EML(Escorts Mahle Limited),a piston manufacturer, through a SPV and this proposal was approved in the Directors meeting which was held on 15.06.2002. The company which had set up a modern engine test house, was commissioned in January,2002 and made fully operational from February,2002. During 2002-03 Escorts Pistons Limited and Coupled Investment Private Limited was amalgamted with the company following the approval from High Court of New Delhi. With this amalgamation the company has consolidated its market leadership as a composite manufacturer of Piston Assemblies comprising of pistons, pins etc.

 

It is in trade terms with :

 

 

 

Operations 
 
During the nine months ending 31.12.06, the Gross Turnover of the Company was Rs. 4500.24 million as against Rs. 5123.63 million for the 12 months year ending 31.3.06, showing a growth of 17.10% on an annualized basis. The Company however reported a loss after tax of Rs. 63.14 million in the Period under review as against Rs. 505.55 million in the previous year. The company is taking necessary steps to reduce its cost, improve productivity and expects to achieve profits in future. 

 
In view of the losses, it is proposed not to pay any dividend on the equity shares. 

 

MANAGEMENT DISCUSSION AND ANALYSIS: 

 
(a) Industry structures and developments 

 
The industry is maturing to global standards stemming out of customers need to address overseas markets with their products. Not only has the internal combustion engine undergone major change in terms of delivering products which meet emission norms for Euro-III, they are already being confronted with a demand to be ready to offer products waiting Euro-IV and Euro-V emission norms. There is major need for technology inputs and heavy investment in new equipment for participating in this business. The customer has also become very discerning in terms of quality and delivery performances and is expecting levels of services which are witnessed in advanced countries. 
 
The industry however is showing a robust growth capitalizing on the unprecedented growth in GDP. It is also heartening to note that vehicle manufacturers are finding greater acceptability of their products in the international market which augurs very well for the Indian Automotive Industry. 

 
(b) Opportunities 

 
The opportunities lie in the ability to meet the requirement of OEM's at the best cost and quality in par with the global standards. 

 
(c) Threats 

 
The Indian Government is entering into Free Trade Agreements with neighbouring countries under which tariffs ore expected to progressively come down and this may also include products manufactured by us. This may result in increased competition which could result in a decrease in our turnover and / or further pressure on our margins. 
 
(d) Segment wise or product wise performance  

 
The Company continues to increase its market share in the OEM segment where as in the after market the sales are stagnant due to sluggish demand because of lower overhauling of automobiles and the better engine quality of the new vehicles. 

 
(e) Outlook 

 
The trends show that the industry should continue to grow of double digit rates. However, their seems to be a tapering in demand in the bi-wheelers due to hardening of the interest rates. 

 

Right Issue 

 
The Board of Directors has revised the size of the proposed Right Issue from Rs. 7000 Million upto Rs. 1100 Million. The Board has constituted Right Issue Committee in the Board Meeting held on 22nd January, 2007. The committee met on 2nd March, 2007 and approved the amendments made in the Draft Letter of Offer and fixed the price band between Rs. 180/- to Rs. 215/- of the Equity Share of the Company. Further the Merchant Bankers has filed the Draft letter of Offer with Securities and Exchange Board of India on 9th March, 2007. 

 
Solvent Oil Extraction Business 

 
During the year, the Solvent Oil Extraction plant of the Company which has been non-operational since long was sold. 
 
Subsidiary Companies 

 
Goetze TP [India] Limited 

 
During the nine months ending 31.12.06, the Gross turnover of the Company was Rs. 488.34 million as against Rs. 569.32 million for the 12 months year ending 31.3.06, showing an increase of 14.36% an an annualized basis. 
 
Satara Rubbers and Chemicals Limited The Company showed a total loss of Rs. 8.24 million far nine months ending 31.12.06 as compared to Rs. 8.88 million in the previous 12 months. The losses are mainly due to high interest cost on the loan taken by the Company. Steps are being taken to reduce these losses. 

 
Statement pursuant to Section 212 of the Companies Act, 1956 as also the annual accounts of the subsidiaries form a part of the Company's Annual Report. 

 

Fixed Assets

 

 

AS PER WEBSITE

Manufacturers of world class Pistons, Piston Rings, Sintered Parts & Cylinder Liners covering wide range of applications : Two / Three - Wheelers, Cars, Jeeps, Tractors, Light Commercial Vehicles, Heavy Commercial Vehicles, Stationary Engines &  High out-put Locomotive Diesel Engines.

Widest range of Piston Rings & Pistons varying from a 30 mm to 300 mm Dia.

The most modern production facilities at Bangalore & Patiala are TS 16949 and ISO14001 certified & at Bhiwadi  TS 16949 certified.

Market leaders both  in OEM and Replacement Market. Exports to many countries.

"GOETZE", "ESCORTS PISTONS" and "GOETZE BRICO" are the most preferred brands of Piston Ring , Pistons and Sintered Parts of most 'Engine Manufacturers' as well as 'After Market'.

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.39.68

UK Pound

1

Rs.81.95

Euro

1

Rs.58.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

42

 

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.

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions