MIRA
INFORM REPORT
|
Report Date : |
27.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BRAKES INDIA LIMITED |
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Registered Office : |
21, Patullos Road, ‘B’ Wing , 3rd Floor, Chennai – 600 002, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.11.1962 |
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Com. Reg. No.: |
18-4928 |
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CIN No.: [Company
Identification No.] |
U35999TN1962PLC004928 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEB00159F |
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PAN No.: [Permanent
Account No.] |
AAACB2533Q |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturing, Selling and Distributing of automobile brakes, complete brake systems, servo brakes & parts thereof, cast articles of iron, seals, rubber seals and oil seals. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 15279388 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company of TVS Group. Available information indicates high financial responsibility of the company. Their trade relations are fair. Financial position of the company is good. Business is active. The company is a good paymaster and its payments are always correct and as per commitments. The company can be considered for any business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
21, Patullos Road, ‘B’ Wing , 3rd Floor, Chennai – 600 002, Tamilnadu, India |
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Tel. No.: |
91-44-2625 1861 / 6161 / 8161 / 8116 / 8426 |
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Fax No.: |
91-44-2628 7010 / 2625 7844 / 2625 7010 |
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E-Mail : |
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Website : |
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Head Office : |
“Electric Mansion”, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India |
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Tel. No.: |
91-22-24220296/24220212/24225829/24308657/24306928 |
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Fax No.: |
91-22-24220198 |
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Corporate Office : |
67, Chamiers Road, Chennai – 600 028, Tamilnadu, India |
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Tel. No.: |
91-44-2434 6128 |
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Factory 1 : |
v Padi, Chennai - 600 050, Tamilnadu, India Tel. No.: 91-44-2625 8161 / 8016 v Sholinghur - 631 102, Tamilnadu, India v Gurgaon - 122 016, Haryana, Punjab, India v Palambakkam - 603 309, Tamilnadu, India v Nanjagud - 571 301, Mysore, Karnataka, India |
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Branches : |
v 87 Udhyog Vihar, Phase V, Gurgaon - 122 016, Haryana, Punjab, India v D-1 Hide Road, Kolkata - 700 043, West Bengal, India v 3C, Casa Major Road, Egmore, Chennai – 600 008, Tamilnadu, India v 166, Anna Salai, Chennai – 600 002, Tamilnadu, India v Plot 8, Lakshmi Nagar, Seventh Street, Chennai – 600 061, Tamilnadu, India v 9, Pinjala Subramnium Street, T Nagar, Chennai – 600 017, Tamilnadu, India v 9, Pose Garden, Binny Road, Chennai – 600 086, Tamilnadu, India v 77, 53rd Street, Chennai – 600 053, Tamilnadu, India v No. 9, Avadi Main Road, Veeraraghavapuram, Poonamallee, Chennai – 600 077, Tamilnadu, India v Also located at Pune and Mumbai. |
DIRECTORS
|
Name : |
Mr. R. Ramanujam |
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Designation : |
Vice Chairman & Managing Director |
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Address : |
4(old 17), Parthasarathy Gardens, Chennai – 600018, Tamilnadu |
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Date of Birth / Age : |
29.07.1936 |
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Date of Appointment : |
08.01.1975 |
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Name : |
Mr. S. Viji |
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Designation : |
Managing Director |
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Address : |
71, Poes Garden, Chennai – 600066, Tamilnadu |
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Date of Birth / Age : |
07.06.1948 |
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Date of Appointment : |
02.10.1975 |
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Name : |
Mr. R. Srikanth |
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Designation : |
Joint Managing Director |
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Address : |
15, Valliammai Aachi Street, Chennai – 600065, Tamilnadu |
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Date of Birth / Age : |
19.09.1961 |
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Date of Appointment : |
29.11.2000 |
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Name : |
Mr. Keith Ronald Aston |
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Designation : |
Director |
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Address : |
10, Coedeva Mill Cwmbran
Torfaen, South Wales, NP 44 7EU, UK |
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Date of Birth / Age : |
08.03.1949 |
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Date of Appointment : |
05.10.2002 |
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Name : |
Mr. G K Raman |
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Designation : |
Director |
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Name : |
Mr. S Lunn |
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Designation : |
Director |
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Name : |
Mr. John Jones |
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Designation : |
Director |
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Date of Birth / Age : |
05.02.1963 |
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Date of Appointment : |
07.02.2002 |
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Name : |
Mr. Timothy John Klaus |
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Designation : |
Director |
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Address : |
Shanghai Links, 4, Quail Ridge
Drive, Lot 16, # 1600 Ling Bal Road, Pudong Shanghai, China – 201201 |
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Date of Birth / Age : |
14.03.1964 |
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Date of Appointment : |
05.10.2002 |
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Name : |
Mr. William J Vander Roest |
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Designation : |
Alternate Director |
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Address : |
3118, Bluett Road, Ann Arbor,
MI, USA 48105-1426 |
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Date of Birth / Age : |
05.02.1957 |
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Date of Appointment : |
25.07.2005 |
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Name : |
Mr. James T Gipprich |
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Designation : |
Alternate Director |
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Address : |
5062, Juniper Drive, Commerce
Township, Michigan 48382, USA |
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Date of Birth / Age : |
29.03.1969 |
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Date of Appointment : |
25.07.2005 |
KEY EXECUTIVES
|
Name : |
Mr. T Narayanan |
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Designation : |
Company Secretary |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
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No. of Shares |
|
Lucas Varity Plc, U.K. |
|
5,86,040 |
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TVS Sundaram Iyengar and Sons Limited |
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2,53,816 |
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Sundaram Industries Limited |
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1,19,600 |
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Southern Roadways Limited |
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1,58,812 |
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Sundaram Finance Limited |
|
79,732 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing, Selling and Distributing of automobile brakes, complete brake systems, servo brakes & parts thereof, cast articles of iron, seals, rubber seals and oil seals. |
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Products : |
Ř Complete Brake System Ř Components and Parts of Brake System Ř Casting |
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Imports : |
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Countries : |
Europe and Far East |
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Terms : |
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Purchasing : |
L/C, D/A, D/P or Open Account terms |
GENERAL
INFORMATION
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No. of Employees : |
1675 |
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Bankers : |
v State Bank of India, 474, Mount Road, Saidapet, Chennai – 600 035, Tamilnadu, India v Standard Chartered Grindlays Bank Limited, Chennai, Tamilnadu, India v ABN Amro Bank, Chennai, Tamilnadu, India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Sundaram & Srinivasan Chartered Accountants |
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Address : |
23, C.P. Ramaswamy Road, Alwarpet, Chennai - 600 002, Tamilnadu, India |
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Associates : |
v Lucas TVS Limited v Sundaram Clayton Limited v Sundaram Fasteners Limited v Sundaram Finance Limited v T. V. Sundaram Iyengar & Sons Limited v Southern Roadways Limited v Sundaram Industries Limited v Wheels India Limited v Axles India Limited v TVS Electronics Limited v TVS Motors Company Limited (Formerly known as TVS Suzuki Limited) v TVS Seewing Needles Limited v Sundaram Textiles Limited v Sri Chakra Tyres Limited v India Motor Parts & Accessories Limited v Fidelity Industries Limited v Fidelity Finance Limited v Hereto Grammer Limited |
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Subsidiaries : |
Sundaram Polymers Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,000,000 |
Equity Shares |
Rs.100.00 each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,196,000 |
Equity Shares |
Rs.100.00 each |
Rs.119.600 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
119.600 |
119.600 |
119.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
3700.247 |
3015.200 |
2516.100 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
3819.847 |
3134.800 |
2635.700 |
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|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
2844.075 |
1890.000 |
1226.300 |
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2] Unsecured Loans |
428.566 |
600.500 |
807.400 |
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TOTAL BORROWING |
3272.641 |
2490.500 |
2033.700 |
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DEFERRED TAX LIABILITIES |
449.900 |
0.000 |
0.000 |
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TOTAL |
7542.388 |
5625.300 |
4669.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3904.710 |
3260.100 |
2265.800 |
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Capital work-in-progress |
37.993 |
127.100 |
550.400 |
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INVESTMENT |
134.301 |
113.700 |
70.200 |
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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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|
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Inventories |
2196.794
|
1542.000
|
1227.100 |
|
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Sundry Debtors |
2435.546
|
2069.900
|
1784.000 |
|
|
Cash & Bank Balances |
2.604
|
2.400
|
5.100 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
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Loans & Advances |
720.889
|
607.900
|
527.100 |
|
Total
Current Assets |
5355.833
|
4222.200
|
3543.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
1841.475
|
1558.600
|
1733.000 |
|
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Provisions |
48.974
|
539.200
|
27.300 |
|
Total
Current Liabilities |
1890.449
|
2097.800
|
1760.300 |
|
|
Net Current Assets |
3465.384
|
2124.400
|
1783.000 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
7542.388 |
5625.300 |
4669.400 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
14081.928 |
10918.500 |
11000.000 |
|
|
Other Income |
200.485 |
233.800 |
402.300 |
|
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Total Income |
14282.413 |
11152.300 |
11402.300 |
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|
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|
|
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Profit/(Loss) Before Tax |
1472.745 |
1070.100 |
1037.100 |
|
|
Provision for Taxation |
466.000 |
346.000 |
335.800 |
|
|
Profit/(Loss) After Tax |
1006.745 |
724.100 |
701.300 |
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Expenditures : |
|
|
|
|
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|
Manufacturing Expenses |
0.000 |
0.000 |
1181.200 |
|
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Administrative Expenses |
50.457 |
64.000 |
480.200 |
|
|
Raw Material Consumed |
7854.278 |
6059.900 |
5541.000 |
|
|
Salaries, Wages, Bonus, etc. |
892.419 |
708.600 |
707.500 |
|
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Interest |
187.327 |
127.800 |
53.700 |
|
|
Power & Fuel |
816.970 |
715.100 |
644.800 |
|
|
Deprecation |
433.963 |
394.911 |
-- |
|
Total Expenditure |
10235.414 |
8070.311 |
8608.400 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
7.04
|
6.49 |
6.15 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
10.45
|
9.80 |
9.42 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.90
|
14.30 |
17.85 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
0.34 |
0.28 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.49
|
0.66 |
0.66 |
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|
Current Ratio (Current Asset/Current Liability) |
|
2.83
|
2.01 |
2.01 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Name of the company |
BRAKES INDIA LIMITED |
|
Presented
By |
Mt. T. Narayanan,
Company Secretary |
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1) Date and description of instrument creating the change |
24.03.2005 Memorandum of agreement
for hypothecation of goods and assets executed by the company in favour of
State Bank of India |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.150.000
millions together with interest and other charges on the loan payable by the
borrower to the bank |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Plant and Machinery
purchased under the line of credit as detailed in the schedule attached to
the hypothecation agreement dt. 24.03.2005 |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
1. Interest shall
be charged on the outstanding at such rate as may be determined by the Bank
from time to time 2. The company to
maintain sufficient margin of security. 3. The Bank has
the right to value the property by an appraiser 4. Hypothecation
goods shall be properly insured by the company 5. Borrower to
submit required statements to Bank 6. Borrower has
the right to sell the property hypothecation with the approval of the Bank |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of
India Corporate Accounts
Group Branch, 149, Greams Road, Chennai - 600005 |
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Corporate
identity number (CIN) Foreign company registration number |
U35999TN1962PLC004928 |
|
Name of the
Company |
BRAKES INDIA LIMITED |
|
Address |
21, Patullos Road, ‘B’ Wing , 3rd Floor, Chennai – 600 002, Tamilnadu |
|
This form is for |
Modification of
charges |
|
Type of Charge |
Immovable
property, Movable property (not being pledge) |
|
Particulars of
the charge holder |
State Bank of
India Corporate
Accounts Group Branch, 149, Greams Road, Chennai – 600005 E-Mail: kishorep@sbi.co.in |
|
Amount secured by
the charge |
Rs.3000.000
millions |
|
Brief of the
principal terms and conditions |
Rate of Interest: State Bank of
India – 11.25% Standard
Chartered Bank – 12% ABN Amro Bank N V
– 11.25% HDFC Bank Limited
– 11% Terms of
repayments: Repayable on
demand Margin: Name of the
Bank Margin on stock + Book
Debts State Bank of
India 25%+40% Standard
Chartered Bank 10%+10% ABN Amro Bank
NV 25%+25% HDFC Bank
Limited 25%+40% Extent and
operation of the charge First charge on
borrower current assets and second charge on specified immovable and movable
properties |
|
Date of Instrument
modifying the charge |
22.08.2007 |
|
Particular of the
present modification |
The working
capital limits availed by the borrower from consortium Banks have been
revised from Rs.2350.000 millions to Rs.3000.000 millions. Creation of Pari
Passu second charges on the specific immovable properties of the company as
detailed in the attachment in lieu of the existing second charges on the
immovable properties of the company and on all the fixed assets (excluding
assets as may be permitted by the Bank) |
History
BIL was established in 1962 as a joint venture between TVS Group and Lucas Industries Plc, UK (which is now integrated with TRW). The company's clientele includes both overseas and domestic of which the foundry divisions clients include TRW Automotive-UK, Robert Bosch-Germany and Electrolux-Italy. The domestic clientele includes Honda Siel and Mahindra and Mahindra. The company was one of the first few companies to be certified for ISO 9002 for the foundry division.
The company is in the process of setting new foundry unit and initial capacity
for the new foundry would have 6000 tonnes per annum and it will be increased
in the latter period depending upon the demand in the market.
It is stepping on the gas pedal with a plan to hike capacity of its facility at
Sholingur,near Chennai. The work for capacity expanding would beginning on
March and commercial production is slated to begin on 2005. During 2003 the
company acquired an order for supply of safety critical parts to Volvo, Sweden and
Toyota.
As per website
details
Profile
The strength of Brakes India lies in
v Its ability to motivate and harness the capabilities of its human resource
v Develop and nurture a strong vendor base
v Its commitment to quality, cost, delivery, safety and customer satisfaction
Strong in-house Research & Development, coupled with access to World Class Technology through collaboration and affiliations worldwide enables Brakes India to provide the Best Braking Solutions and Castings to its customers.
Sales turnover of its Brakes divisions exceeds Rs. 5 Billion. Brakes Divisions have grown steadily to become a Leading Brake System Supplier to global OEMs operating in India.
Sales turnover of its Foundry division exceeds Rs. 2 Billion, has an installed
capacity of 47,000 MTPA for
permanent mould Grey Iron and high pressure moulded Ductile and grey iron sand
castings.
An impressive list of Customers adds testimony to the capabilities of Brakes India.
Exports
Ability to introduce new products, tailor-made to meet overseas customer requirements, maintaining high technological and quality standards have helped Brakes India to continuously enlarge its market presence.
Commenced export of brake components in 1968.
Products are exported to over 35 countries around the world.
Exporter of a wide variety of Brake Products, including, drum brakes for commercial vehicles,
trailer brakes for the Australian Trailer Industry, tractor brakes, master
cylinder and booster assemblies, wheel cylinder assemblies.
Major exporter
of Grey Iron and SG (Ductile) Iron castings to TRW, Meritor and Bosch.
Products exported to both Overseas Vehicle Manufacturers and Replacement Markets.
Supply to replacement market includes hydraulic brake and clutch
cylinders, kits, seals, brake and clutch hoses, brake pads, caliper pistons and
lined shoe assemblies for various passenger cars and commercial vehicles of
American, Japanese, European and Australian manufacturers.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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.39.85 |
|
UK Pound |
1 |
Rs.82.61 |
|
Euro |
1 |
Rs.59.21 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|