MIRA
INFORM REPORT
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Report Date : |
23.12.2008 |
IDENTIFICATION DETAILS
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Name : |
SKF INDIA LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
12.04.1961 |
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Com. Reg. No.: |
11980 |
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CIN No.: [Company
Identification No.] |
L29130MH1961PLC011980 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS00975C |
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PAN No.: [Permanent
Account No.] |
AAACS0684H |
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Legal Form : |
It is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of Ball Bearings, Roller Bearings and Textile Machinery Components. |
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 27000000 |
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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 SKF Group.
The company is progressing well. Directors are reported as experienced and
respectable businessmen. Trade relations are reported as 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 partner in a
medium to long-run. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-22-66337777 / 22813567 |
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Fax No.: |
91-22-22042738/ 22819074 |
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E-Mail : |
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Website : |
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Factory 1 : |
Located at Chinchwad, Pune, |
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Factory 2 : |
Located at Bommasandra, |
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Unit No 33, 3rd Floor, 68, Tardeo Road, Close to Crossroads Mall, Nr.
Haji Ali, Mumbai - 400 034, Maharashtra, India |
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Tel. No.: |
91-22-6633 7715 |
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Fax No.: |
91-22-67216913 |
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Branches : |
Located at : ·
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Chennai ·
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Gurgaon ·
Kolkata ·
Pune ·
Jameshdpur |
DIRECTORS
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Name : |
Mr. Kamlesh C Mehta |
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Designation : |
Chairman |
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Name : |
Mr. Rakesh Makhjia |
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Designation : |
Managing Director |
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Name : |
Mr. Giuseppe Donato |
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Designation : |
Director |
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Name : |
Mr. Christer Gyberg |
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Designation : |
Director |
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Name : |
Mr. Narendra J Jhaveri |
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Designation : |
Director |
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Name : |
Mr. Philip Knights |
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Designation : |
Director |
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Name : |
Mr. Darius C Shroff |
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Designation : |
Director |
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Name : |
Mr. Tryggve Sthen |
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Designation : |
Director |
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Name : |
Mr. Henrik Lange |
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Designation : |
Director |
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Name : |
Mr. Kjell Bogvad |
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Designation : |
Director – Industrial Sales |
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Name : |
Mr. Vilas Bondse |
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Designation : |
Director – Special Projects |
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Name : |
Mr. Ajay Chaubal |
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Designation : |
Director – Demand Chain |
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Name : |
Mr. Ranjan Kar |
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Designation : |
Director – Automotive Business |
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Name : |
Mr. Vithal Nayak |
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Designation : |
Director – HR and Sustainability |
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Name : |
Mr. Hemant Nighojkar |
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Designation : |
Director – Electrical and Two Wheeler Business |
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Name : |
Mr. Sudhir Rege |
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Designation : |
Director – Service Business |
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Name : |
Mr. Jos Verelst |
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Designation : |
Finance Director |
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Qualification : |
Finance and Administration |
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Experience : |
37 Years |
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Date of Appointment : |
01.09.2006 |
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Previous Employment : |
SKF European Financial Service Centre
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KEY EXECUTIVES
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Name : |
Mr. Pradeep Bhandari |
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Designation : |
Company Secretary |
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Name : |
Mr. Milind Rokade |
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Designation : |
Assistant Manager – Product Dev ABU VSM |
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Qualification : |
BE Mechanical |
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Experience : |
14 Years |
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Date of Appointment : |
01.04.1992 |
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Previous Employment : |
Dm Yardi, Pune |
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Name : |
Mr. Srikant Savangikar |
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Designation : |
General Manager – Manufacturing |
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Qualification : |
BE Production |
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Experience : |
27 Years |
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Date of Appointment : |
02.07.1991 |
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Previous Employment : |
NRB Bearings |
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Name : |
Mr. Jayant Soman |
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Designation : |
General Manager – Manufacturing |
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Qualification : |
BE Mechanical |
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Experience : |
34 Years |
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Date of Appointment : |
15.06.1973 |
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Previous Employment : |
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Name : |
Mr. Devjit Sarkar |
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Designation : |
General Manager – Purchase |
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Qualification : |
BE Mechanical |
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Experience : |
18 Years |
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Date of Appointment : |
08.08.2005 |
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Previous Employment : |
GE Motors India Limited |
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Name : |
Mr. Kamal Sehgal |
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Designation : |
General Manager – Reliability Services |
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Qualification : |
BE Production, MBA |
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Experience : |
14 Years |
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Date of Appointment : |
16.06.2003 |
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Previous Employment : |
GE Motors India Limited |
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Name : |
Mr. Durjoy Sen |
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Designation : |
Principal Faculty – Reliability Maintenance Institute |
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Qualification : |
BE Mechanical |
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Experience : |
38 Years |
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Date of Appointment : |
14.08.1972 |
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Previous Employment : |
Consolidated Pneumatic Tool Company |
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Name : |
Mr. Shoaib Shaikh |
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Designation : |
General Manager – Vehicle Service Market |
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Qualification : |
B Com, MBA |
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Experience : |
20 Years |
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Date of Appointment : |
20.07.2004 |
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Previous Employment : |
Fuchs Lubricants Limited |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Ball Bearings, Roller Bearings and Textile Machinery Components. |
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Products : |
Generic names of the principal products of the company are:
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Exports : |
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Products : |
Ball bearing and roller bearings |
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Countries : |
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Imports : |
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Products : |
Ball bearings, roller bearings and other special bearings |
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Countries : |
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PRODUCTION STATUS
(As on 31.12.2007)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Ball Bearings, Roller Bearings |
Nos. |
113638 |
103366 |
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Semi Processed Products |
Nos. |
-- |
7816 |
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Textile Machinery Components |
Nos. |
3900 |
2922 |
GENERAL INFORMATION
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Customers : |
Some of its major customers are as under : ·
Maruti India Limited ·
TELCO ·
Ford India Limited ·
Fiat |
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No. of Employees : |
2161 |
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Bankers : |
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Bank of ·
Bank of · Citibank NA, Mumbai · Standard Chartered Grindlays Bank, Mumbai · Hongkong and Shanghai Banking Corporation Limited, Mumbai · Punjab National Bank, Mumbai · ICICI Bank Limited · HDFC Bank Limited |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
BSR and Associates Chartered Accountants |
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Solicitors : |
Crawford Bayley and Company |
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Memberships : |
Confederation of Indian Industry |
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Parent Company : |
SKF AB, The company is the world leader in bearings and has an annual turnover of around SEK37bn. The company was formed in 1907 when it invented self-aligning ball bearing. Almost all the bearings available in the market today are designed and developed by the company. Its business at present is in over 130 countries and 90% of its turnover comes from overseas ventures |
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Associates/Subsidiaries : |
· CR Seals India Limited ·
SKF Technologies India Private Limited, ·
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SKF ·
Magnetic Elektromotoren AG, · SKF Condition Monitoring Inc. ·
PT SKF ·
RFT ·
SKF ( ·
SKF ( ·
SKF Actuators AB, · SKF Actuators S.A.S., France ·
SKF Korea Limited, ·
SKF Argentina S.A., ·
SKF Australia Pty. Limited, ·
SKF Automotive Bearings Company Limited, ·
SKF China Limited, ·
SKF Coupling Systems AB, ·
SKF ·
SKF Equipments, ·
SKF ·
SKF ·
SKF USA Inc., ·
Vogel AG, ·
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Oy SKF AB, ·
SKF Bearing Services Limited, · SKF B V, Nieuwegein |
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Ultimate Holding Company : |
AB SKF |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.10/-each |
Rs.1000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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52732538 |
Equity Shares |
Rs.10/- each |
Rs.527.300
millions |
Of the above shares
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19823540 Equity Shares of
Rs.10/- each are issued as fully paid up
bonus shares by capitalization of Rs.198.200 million from Reserves and share
Premium account.
·
7470030 Equity Shares
were issued at a premium of Rs.54/- per share against conversion of warrants.
·
2488 Equity Shares are
not allotted and held in abeyance.
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28254568 Equity Shares of
Rs.10/- each are held by the Swedish holding company, AB SKF and its
subsidiaries.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
527.300 |
527.300 |
527.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4925.200 |
3695.300 |
2946.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5452.500 |
4222.600 |
3473.600 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.900 |
1.400 |
1.900 |
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TOTAL BORROWING |
0.900 |
1.400 |
1.900 |
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DEFERRED TAX LIABILITIES |
51.400 |
44.200 |
0.000 |
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TOTAL |
5504.800 |
4268.200 |
3475.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1688.500 |
1577.000 |
1114.600 |
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Capital work-in-progress |
279.200 |
264.700 |
360.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
1648.000 |
1510.700 |
1391.900 |
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Sundry Debtors |
2060.200
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1648.700
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1031.500 |
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Cash & Bank Balances |
2363.000
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1614.200
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1132.100 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
634.200
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554.000
|
518.500 |
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Total
Current Assets |
6705.400
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5327.600
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4074.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2584.700
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2395.100
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1632.700 |
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Provisions |
583.600
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506.000
|
440.400 |
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Total
Current Liabilities |
3168.300
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2901.100
|
2073.100 |
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Net Current Assets |
3537.100
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2426.500
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2000.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5404.800 |
4268.200 |
3475.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
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Sales Turnover |
15683.000 |
13424.900 |
8974.700 |
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Other Income |
106.700 |
83.400 |
708.500 |
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Total Income |
15789.700 |
13508.300 |
9683.200 |
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Profit/(Loss) Before Tax |
2473.600 |
1531.400 |
1030.500 |
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Provision for Taxation |
866.500 |
511.800 |
389.800 |
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Profit/(Loss) After Tax |
1607.100 |
1019.600 |
640.700 |
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Expenditures : |
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Manufacturing Expenses |
13137.300 |
11760.400 |
644.600 |
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Administrative Expenses |
0.000 |
0.000 |
525.400 |
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Raw Material Consumed |
0.000 |
0.000 |
4518.900 |
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Miscellaneous Expenses |
0.000 |
0.000 |
337.700 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
932.800 |
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Interest |
3.800 |
13.100 |
5.500 |
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Financial Income |
(133.300) |
(57.900) |
0.000 |
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Reversal of Provision for Impairment |
0.000 |
(26.900) |
0.000 |
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Power & Fuel |
0.000 |
0.000 |
204.000 |
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Depreciation & Amortization |
308.300 |
288.200 |
259.300 |
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Other Expenditure |
0.000 |
0.000 |
1224.500 |
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Total Expenditure |
13316.100 |
11976.900 |
8652.700 |
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QUARTERLY RESULTS
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PARTICULARS |
31.03.2008 |
30.06.2008 |
30.09.2008 |
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Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales
Turnover |
3921.000 |
4312.000 |
4303.900 |
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Other
Income |
20.800 |
27.300 |
27.900 |
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Total
Income |
3941.800 |
4339.300 |
4331.800 |
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Total
Expenditure |
3329.700 |
3744.600 |
3738.900 |
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Operating
Profit |
612.100 |
594.700 |
592.900 |
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Interest |
(43.700) |
(38.500) |
(41.200) |
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Gross
Profit |
655.800 |
633.200 |
634.100 |
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Depreciation |
76.400 |
71.100 |
70.600 |
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Tax |
201.800 |
195.600 |
194.000 |
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Reported
PAT |
377.600 |
366.500 |
369.500 |
KEY
RATIOS
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PARTICULARS |
|
31.12.2007 |
31.12.2006 |
31.12.2005 |
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PAT / Total Income |
(%) |
10.18
|
7.55 |
6.62 |
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Net Profit Margin (PBT/Sales) |
(%) |
15.77
|
11.41 |
11.48 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
29.47
|
22.18 |
19.86 |
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Return on Investment (ROI) (PBT/Networth) |
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0.45
|
0.36 |
0.30 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.58
|
0.69 |
0.60 |
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Current Ratio (Current Asset/Current Liability) |
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2.12
|
1.84 |
1.97 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated in 1961, SKF Bearings India a subsidiary of SKF, Sweden,
the world leader in bearings, SKF Bearings India produces India's most diverse range
of bearings that have become quality benchmarks.The name of the company has
been changed in June 2004 from SKF Bearings India Limited to SKF India Limited.
It has two manufacturing units at Chinchwad,
Its product-mix comprises self-aligning, self-resistant ball bearings and
over 100 types of bearings. The company has a well-established export market in
Europe and the
During 1998-99,The company invested Rs.1000 millions for modernisation and
upgradation of existing facilities, at Pune. The focus was quality improvement,
productivity increase and volume expansion. As a part of Pune - 2000 project, a
new production channel for manufacturing of wheel HUB units for the Indian car
market is also been installed. In the year 2000, the company completed the
Pune-2000 Project.
It has formed two new technology ventures - aptitude Industrial Decision Support
and Industrial Wireless Technologies. These ventures formed within its service
division, and supports company's efforts in building a leadership position in
high technology solutions. The upgradation programme at Pune plant at a cost of
Rs.1300 million established this plant at a world class manufacturing
unit,equivalent to SKF's world wide quality standards.
The company acquired the business of VEC (Vibration Engineers and Consultants
Private Limited and the company launched SKF Application Development Centre in
In 2005, the company expanded its installed capacity of Ball and Roller
Bearings by 7880000 Nos. The installed capacity of Ball and Roller Bearings
increased to 83411000 Nos.
OPERATIONS
Despite all the challenges in the market place, your Company in the year under
review registered an overall growth of 16.8 per cent in sales, 51.7 per cent in
profit before depreciation, interest and tax and 57.6 per cent in net profit
after tax over previous year. Of the total sales revenue of the Company for the
year 9.5 per cent is contributed by exports as compared to 5.2 per cent of
sales in the previous year. The significant milestone achieved by the Company
is that its Sales surpassed the Rs 15 billion mark reflecting the growing
intrinsic strength of the Company. The operating profit margin (profit before
interest and tax) has further increased from 10.9 percent to 14.9 per cent and
overall efficiency has resulted into higher profit after tax (PAT) of 10.2
percent of sales as compared to 7.6 per cent in the previous financial year.
The earning per share and cash earning per share for the year was Rs 30.5 and
Rs 36.3 respectively.
The continued improvement in the performance can be attributed to a continued
focus on delivering value to its customers, improved pricing and effective cost
management. This performance is the result of continuous thrust on product
development, focused attention to new products and partnering with customers
and suppliers. The company continued its aggressive strategy in marketing of
its products and has taken several initiatives to improve services and
distribution levels by launching a number of new products and solutions like
power transmission product and services where they are helping the customers
reduce the energy losses in their business. In addition, they have increased
focus internally within the manufacturing areas both to reduce energy
consumption and carbon dioxide emissions.
The Company remains a zero debt company. There are no longterm borrowings.
Short-term borrowings are restricted to need based working capital
requirements. The Company has created an excellent track record of efficient
management of working capital. Net cash flow from operating activities during
the year was Rs. 1337.0 million as compared to Rs. 1263.5 million.
Quality Management System TS16949, Environmental Certification ISO 14001 and
Health and Safety Management Standard Certification OHSAS 18001 reflects your
Company's continuous commitment towards quality and standards.
PROJECT
PLANNED
The Indian economy has been propelled with continuous growth. The Company has
envisaged a capacity addition program at Haridwar, Uttarkhand to manufacture
bearings. Uttarkhand is becoming a hub for automotive industries. Number of the
major customers are setting up manufacturing facilities in Uttarkhand to avail
of tax concessions / benefits available there. The total capital outlay for the
plant will be around 1,500 MINR and when fully operational, will add
manufacturing capacity of 48 mn. bearings. The new plant is being designed to
meet the subject aspirations in the future. While planning and preparation are
in advanced stage they expect to complete the project in the later half of the
year 2008. In the initial years the project will cater to the two wheeler
segment of the market. The new facility will strengthen the Company's
leadership position in the domestic bearing market.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure and Development
Bearings are used in the rotating parts of virtually every machine or product
manufactured by industry. A bearing essentially is required to reduce or
eliminate the friction between moving parts and depending on the application
there are different principles on which these bearings are designed and run.
The automobile industry is the major user segment for bearings, followed by
general engineering, heavy industries and railways.
Bearing arrangements of all types do not only consist of bearings but include
the associated components, such as shafts and housings, as well as seals. In
response to industry's need for maximum output for minimum cost, Subject has
combined its knowledge and experience with the latest technology to develop
solutions for specific conditions. Subject is committed to provide superior
quality bearings, seals, solutions and other related products for a wide range
of industry applications.
Bearing Industry in
At Subject the focal point of the strategy is to apply all our design and
application related knowledge together with our five platform engineering
knowledge (bearings, seals, mechatronics, services and lubrication systems) to
innovate and integrate solutions that not only deliver value added business
solutions and benefits to the customers but also serves to improve the
competitiveness of our customers. Over the last century, while subject has
grown from being a bearings manufacturer to being a systems/sub-systems and
solution provider, service has assumed a significant role in our portfolio and
they at Subject are poised to provide our customers with the unmatched
services, be it in Maintenance, Lubrication Systems Management, improving plant
reliability or even training.
Mechatronics is the science of bringing together mechanics and electronics into
exciting new solutions. It is a rapidly advancing area that provides dramatic
opportunity to solve old problems in a clever and environmentally friendly way.
In combining actuators, bearings, sealing, lubrication, sensors and electronics
competences, we have been able to develop a number of standard and customized
solutions. Subject offers a wide assortment of mechatronic products: One of the
Subject's five technology platforms, lubrication systems provides automated,
distributed lubrication arrangements for process machinery and industrial
plant. Around thirty percent of premature failures in mechanical equipment are
caused by poor or inadequate lubrication. Automating this aspect ensures
replenishment at the correct interval, at all the points where it is required
and with the correct quantity. Minimal quantity lubrication, i.e. the correct
quantity, can have major cost benefits and offers substantial environmental
benefits over less precise traditional techniques. VOGEL and Safematic are
globally recognized SKF brand names in the field of automatic lubrication
systems.
Opportunities
The demand for bearing industry is derived from demand in two key user segments
- automotive and industrial sector. The automotive industry is the largest user
segment for Indian bearing market accounting for almost 50 per cent of demand.
Threats
Steel and alloy steel forms the basic material for the manufacturing of
bearings and accounts for almost 45 per cent of total cost. Steel prices
therefore have significant impact on margins. Steel prices in the past few
years have appreciated significantly riding on the shortage of iron ore , one
of the principal raw materials for steel . The significant increase in steel
prices has resulted in pricing and margin pressure on bearing manufacturers.
Customs duty on imports has come down significantly over the last few years and
with Free Trade Agreement (FTA) being planned with various countries, it is
further expected to come down. These measures will put pressure on bearing
industry due to cheaper imports including those from
Higher taxes, higher cost of finance, poor logistic infrastructure, high costs
of utilities, uneconomical size of operations and low focus on R and D
activities have resulted into Indian products becoming highly uncompetitive in
global markets when compared with countries like China, Singapore, Indonesia
and Thailand. In order to become globally competitive, industry needs to
concentrate on research and development, restructure and focus on core
competencies and adopt world standards in manufacturing.
The intrinsic strength of Subject driven by its experience of working with its
customers for over 100 years provides opportunity to the Company to position
itself as strong player by leveraging its welldeveloped research and
development facilities, technical manpower, support and reputation of being
part of a global leader to further strengthen its market leadership.
Spurious Products form a significant part of the Indian bearing market.
Spurious products mainly cater to the replacement market, which is price
sensitive. The replacement market represents the demand arising on account of
replacing the used and worn-out bearings. Replacement market accounts for
around 30 per cent of total demand for bearing industry. Spurious bearings are
of poor quality and are relatively unsafe and unreliable. They use materials,
which are of inferior quality and the precision is also low. The presence of
unorganized sector in the bearing industry poses a real threat to the organized
players. According to an estimate, the spurious spare parts market in
Segment-wise Performance
The Company operates in
a single segment namely in Bearing and related components.
Subject, a part of the
global AB SKF Group, is a leading technology and solutions provider of products,
solutions and services in the area comprising bearings, seals, mechatronics,
services and lubrications systems. The Company is the market leader in the
bearing industry and is the main bearing supplier to all the user segments.
Over 90 percent of the sales is contributed by bearings while balance is
contributed by other platforms. Although bearings find numerous applications,
the industry is mainly driven by automobile and industrial sector. During the
year domestic sales has shown a growth of 11.5 percent while exports registered
substantial higher growth of 113.3 percent in spite of appreciation of Indian
currency. The share of the export in the total sales was around 9.5 percent as
compared to 5.2 per cent in the previous year, with Latin American countries
registering higher growth of sales realisation.
Despite all the challenges in the domestic auto industry particularly in the
two wheeler segment, the Company in the year registered an overall growth of
2.9 percent in domestic auto sector (including two wheeler) . The industrial
sales continued to show their strong performance registering a higher growth of
around 16.7 percent while Textile Machinery components, which contributes to
about 3% of the total domestic sales has shown a growth of around 9 percent.
During the year, the company launched power transmission products as a new
product range to capture the growth in the energy sector.
Outlook for 2008:
Interest rate, inflation, commodity prices which have all nudged upwards into
perilous territory might impact the growth of the industry in near future. The
auto industry is highly dependent on finance. Currently around 95 per cent
commercial vehicles, 75 per cent passenger cars and over 60 per cent two
wheelers are financed. Ever since RBI introduced tight monetary measures, the
auto sector has been reeling under high interest rates - the highest in five
years. It has led to delinquency, forcing banks and financial institutions to
go for stricter lending norms, which is one of the major reasons for the demand
decline in the auto industry. Declining sales and sliding margins are
compelling two wheeler makers to delay the launch of their new manufacturing
facilities. After many quarters, growth in domestic sales of vehicles slipped
whereas two wheelers continued their free fall with domestic growth slipping to
single digit. But industrial growth continues to be strong, driven by new
capacities in the manufacturing sector and the continued spending on
infrastructure. Slowdown in the
Discussion on Financial
Performance with respect to Operational Performance:
The Company has crossed
the landmark sales figures of Rs. 15 billion during the year. The total sale of
the Company was Rs 15683 million recording an overall growth of 16.9 percent in
sales over previous year. During the year export sales registered an overall
growth of 113.3 percent in sales and constituted around 9.5 percent of overall
sales. The Company achieved yet another milestone by crossing Rs 1500 million
of profit during the year. Effective cost management, business process
optimization, vendor development initiatives and optimum utilization of cash
resources have resulted into further improvement of 60.6 percent in profit
before interest and tax and 57.6 percent in net profit after tax over previous
year.
The continued improvement in the performance can be attributed to a continued
focus on delivering value to its customers, improved pricing and effective cost
management. This performance is the result of continuous thrust on product
development, focused attention to new products and partnering with customers
and suppliers. The company continued its aggressive strategy in marketing of
its products and has taken several initiatives to improve services and
distribution levels by launching a number of new products and solutions like
power transmission product and services where they are helping our customers
reduce the energy losses in their business.
The Company remains a zero debt company. There are no longterm borrowings.
Short-term borrowings are restricted to need based working capital
requirements. The Company has created an excellent track record of efficient
management of working capital. Net cash flow from operating activities during
the year was Rs 1337 million.
FIXED ASSETS
·
Land
·
Buildings
·
Plant, Machinery and Tools
·
Furniture, Fixtures and Office Equipments
·
Vehicles
It is in trade terms with
·
A Engineering Works
·
A to Z Turners
·
R. Enterprises
·
Akshay Tools
·
Aparna Lining Private Limited
·
Hat Rubbers
·
Ideal Industries
·
S. J. Tools
·
Saab Enginnering
·
Samu Machiners
·
Sb Alloys
·
Sesha Industries
·
Instrument Research
·
Raj Lubricants
·
Aman Powder Coats
·
Gupta Electrical Industries
·
Greatex Engineers
·
Indian Engineers
·
Indian Precision Engineering
·
Industrial Punches
WEB DETAILS
Profile
Subject is a part of the SKF Group, the
leading global supplier of rolling bearing and seals. Along with a varied range
of products it also offers extensive solutions and services in this area.
Subject also has an increasingly important position in the market for linear
motion products, high precision bearings, spindles and spindle services for the
machine tool industry, electrical actuators, actuation systems and is an
established producer of rolling bearing steel.
Subject delivers high end technical knowledge starting with self aligning ball
bearing, spherical roller bearing, the hub bearing units that are widely used
in cars and truck wheel ends in addition to the new and latest revolutionary
CARB bearings that find specialized application in steel plants and paper
mills. In fact the company domestically manufactures around 60 sizes of deep
groove ball bearings, 70 sizes of taper roller bearings, textile machinery
component in addition to catering the needs of automobile, electrical and
industrial OEM and aftermarket customers.
Through the wide product range they
satisfy the needs of the local market, providing a bearing for any and every
conceivable application.
Subject's associate company, SKF Sealing Solutions Private Limited a
wholly owned subsidiary of AB SKF,
Products
The business of the group consists of Bearings,
Housing/Sleeves and Accessories,
Seals, Greases, Spherical Plain Bearings,
Maintenance Products, Condition Monitoring Equipments, Linear Motion Products,
Special Steel and a comprehensive range of their high-tech industrial
components.
SKF has pioneered many innovations- starting with the self aligning ball bearings, spherical roller bearings (SRBs) plus the improvised E-
design and Explorer series SRBs, the hub bearing units used in cars and truck
wheel ends and the latest new revolutionary CARB bearing which has redefined
the standards for specialized applications in steel plant and paper mills.
SKF is the largest manufacturer of bearings
and seals in the world. SKF makes bearings
and seals of all sizes and types for practically all applications. From silent
running ball bearings for sealing
fans to 7.2-metre diameter, 45-tonnes slewing bearings for giant tunneling machines.
SKF worldwide has 70 factories and 20,000 distributors and are represented in
130 countries.
Corporate Overview
Subject
a part of the global AB SKF Group, is a leading technology & solutions
provider of products, solutions and services in the area comprising rolling
bearings, seals, mechatronics, services and lubrications systems.
Subject
with the help of its business units cater to the needs of specific industry
segments in the country. These units are the Automotive Business Unit (ABU),
the Electrical Business Unit (EBU), the Industrial Business Unit (IBU) and the
Service Business Unit (SBU).
Supporting
their Business Units is the
In
1997, CR Seals India Pvt. Ltd. established a plant in
Subject
enjoys a status of a preferred company for its stakeholders. Keeping this in
mind, all their actions are focused towards developing innovative, integrated
value added solutions that improve the competitiveness and profitability of
their customers. This further reinforces their vision to equip the world with
SKF knowledge!
News
SKF India Limited net Sales rises to Rs. 4304 Million.
Net Profit 370 Million
The Board of Directors of SKF India Limited,
The financial highlights in comparison to corresponding period are as
given below:
·
Net Sales for the third quarter ended September
2008 rose to Rs. 4304 Million an increase of 11.2% over the corresponding
period of last year.
·
Net Sales for the first nine months ended September
2008 rose to Rs. 12537 Million an increase of 9.1% over the corresponding
period of previous year.
·
The Profit after Tax for the third quarter ended
September 30, 2008 amounted to Rs. 370 Million as compared to Rs 431
million in the corresponding period of last year.
·
Net profit for the first nine months ended
September 30, 2008 was Rs. 1114 million as compared to 1205 million in the
corresponding period of previous year.
·
Earnings per share at the end of third quarter (not
annualized) is 21.1 as compared to 22.9 in corresponding period of last year .
Commenting on the occasion, Mr. Rakesh Makhija, Managing Director stated
"Our Industrial business continued
its strong run during the quarter. Demand from the Automotive Sector,
particularly cars and commercial vehicles remained weak as a result of high
interest rates and an uncertain economic environment. Higher input material
costs continued to put pressure on margins. We continue to work closely with
our customers and suppliers to offset some of these adverse conditions. We are
also stepping up our productivity and cost reduction programs through the use
of Six Sigma and Lean tools. We believe that the economic situation will remain
uncertain for some time and our focus is clearly on creating close customer
partnerships to help them achieve their stated goals and objectives."
SKF India Limited net
Sales rises to Rs. 4312 Million. Net Profit 367Million
The Board of Directors of SKF India Limited,
The financial highlights in comparison to corresponding period are as
given below:
·
Net Sales for the second quarter ended June 2008
rose to Rs. 4312 Million an increase of 7.4% over the corresponding period of
last year.
·
Net Sales for the first half year ended June 2008
rose to Rs. 8233 Million an increase of 8.1% over the corresponding period of
previous year.
·
The Profit after Tax for the second quarter ended
June 30, 2008 amounted to Rs. 367 Million as compared to Rs 407 million over
the corresponding period of last year.
·
Net profit for the first half ended June 30, 2008
was Rs. 744 million as compared to 774 in the corresponding period of previous
year.
·
Earnings per share at the end of second quarter
(not annualized) is 7.0 as compared to 7.7 of corresponding period of last year
Commenting on the occasion, Mr. Rakesh Makhija, Managing Director, SKF
India ltd, we delivered solid results in a very tough environment. The
skyrocketing steel prices and more importantly, erratic supplies created a huge
pressure on our operations. We have focused on our key customers and on
cost control to maintain our operations on an even keel.
We believe that steel prices and availability will continue to be
volatile in the second half of the year. We will mitigate this thru close
collaboration with our customers and focus on value added solutions and
services".
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 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.47.39 |
|
|
1 |
Rs.70.65 |
|
Euro |
1 |
Rs.66.33 |
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 |
|