MIRA
INFORM REPORT
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Report Date : |
22.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
LUMAX INDUSTRIES LIMITED |
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Registered Office : |
B - 86, Mayapuri Industrial Area, Phase –I, New Delhi – 110 064 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.12.1981 |
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Com. Reg. No.: |
12804 |
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CIN No.: [Company
Identification No.] |
L74899DL1981PLC012804 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELL02101B |
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PAN No.: [Permanent
Account No.] |
AAACL1126D |
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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 Head Lamp, Tail Lamp, Stop Lamp, Side Lamp, Blinkers, Automobile Lighting Equipment and Rear-view Mirrors for Vehicles. |
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 3260000 |
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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 having fine track.
Directors are reported as experienced, respectable and having satisfactory
means of their own. Their trade relations are reported as fair. Business is
active. Payments are reported as usually correct and as per commitments. The Company can be considered good for normal business dealings at
usual trade terms and conditions. It can be considered as a promising business partner in a medium to
long –run. |
LOCATIONS
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Registered Office/ Corporate Office : |
B - 86, Mayapuri Industrial Area, Phase –I, New Delhi – 110 064, India
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Tel. No.: |
91-11-25133252 / 6946 / 7916 / 7984 / 8035 / 25145260 / 5319 / 28111777 / 28116990 |
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Fax No.: |
91-11-28115779 |
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E-Mail : |
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Website : |
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Head Office: |
2nd Floor, Harbans Bhawan - II, Nangalraya Business Centre, New Delhi - 110046, India |
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Tel. No.: |
91-11-25500010/25541975 |
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Fax No.: |
91-11-25501233 |
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E-Mail : |
lumxshre@del6.vsnl.net.in |
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Website : |
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Plant : |
v Plot No. 16, Sector 18, Maruti Complex, Gurgaon – 122015, Haryana v Plot No. 6, Industrial Area, Dharuhera, District Rewari – 122106, Haryana v 131, Roz-Ka-Meo Industrial Estate, Sohna v Plot No. 2, Near Daulatabad Chungi, Daultabad, District Gurgaon, Haryana v D2-43/2, M.I.D.C. Industrial Area, Chinchwad, Pune - 411019, Maharashtra v 84/5, Pavender Salai, NH-1, Maralsalai Nagar, Chengalpattu v Plot No. 37, WMDC, Kharabwadi, Ambethan Road, Chakan, Taluka Khed, District Pune - 410501, Maharashtra v Warehouse at Plot No. C -15, Site –IV, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh v 608, Chakan Talegaon Road, Mahalunge Ingle, Chakan , District Pune – 410 501, Maharashtra v 245 GST Road, Oorapakam , Kanchipuram – 603 202, Tamil Nadu |
DIRECTORS
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Name : |
Mr. D K Jain |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Deepak Jain |
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Designation : |
Executive Director |
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Name : |
Mr. Anmol Jain |
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Designation : |
Executive Director |
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Name : |
Mr. Y Muraga |
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Designation : |
Executive Director |
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Name : |
Mr. A Nakamura |
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Designation : |
Director |
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Name : |
Mr. A P Gandhi |
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Designation : |
Independent Director |
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Name : |
Mr. Deep Kapuria |
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Designation : |
Independent Director |
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Name : |
Mr. Gursaran Singh |
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Designation : |
Independent Director |
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Name : |
Mrs. Suman Jyoti Khaitan |
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Designation : |
Independent Director |
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Name : |
Mr. M C Gupta |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. B S Bhadauriya |
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Designation : |
Company Secretary cum Vice President |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
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Indian Promoters |
3034252 |
36.34 |
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Foreign Promoters |
1620183 |
19.41 |
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Person acting in
concert |
226866 |
2.72 |
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Institutional
Investor |
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Mutual Fund UTI |
25418 |
0.30 |
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Banks Financials Institutions, Insurance Companies, Central / State
Government Institutions / Non Government |
400 |
--- |
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FIIs |
1371558 |
16.44 |
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Others: |
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Private Corporate bodies |
675880 |
8.10 |
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Indian Public |
1238888 |
14.84 |
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NRIs (Including Foreign Company) |
154287 |
1.85 |
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Any other |
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Total |
8347732 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Head Lamp, Tail Lamp, Stop Lamp, Side Lamp, Blinkers, Automobile Lighting Equipment and Rear-view Mirrors for Vehicles. |
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Products : |
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Imports : |
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Products : |
Glass Lens, Acrylic, Automotive Bulbs |
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Countries : |
Germany, Hungary and Japan. |
PRODUCTION STATUS as on 31.03.2007:-
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Head Lamp Assembly |
Nos. |
5450000 |
5107799 |
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Tail Assembly / Rear Combination Lamp |
Nos. |
6150000 |
5018370 |
GENERAL
INFORMATION
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No. of Employees : |
Around 3000 persons |
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Bankers : |
v Punjab National Bank, New Delhi v Syndicate Bank, New Delhi v State Bank of India, New Delhi v ICICI Bank Limited, New Delhi v HDFC Bank Limited v ABN Amro Bank v IDBI Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
· K. S. Gupta & Company Chartered Accountants Delhi · D. R. Barve & Company Chartered Accountants Pune (Branch Auditors), Maharashtra · S R Batliboi and Associates Chartered Accountants New Delhi |
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Memberships: |
Confederation of Indian Industry |
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Joint Venture: |
v Samplip Industrial Company Limited and Hyundai Corporation, Korea v GHSPA Division of JSJ Corporation, USA |
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Collaborators : |
v Stanley Electric Company Limited, Japan v Toyo Roki Manufacturing Company Limited, Japan v Automotive Lighting Reutlingen GmbH, Germany v Valeo Lighting Systems, France |
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Associates/Subsidiaries : |
v Lumax Investment And Finance Private Limited v Lumax DK Auto Industries Limited v Lumax Samlip Industries Limited v Stanley Electric Company Limited v Thai Stanley Electric Public Company Limited v Stanley Electric Engineering India Private Limited v Bharat Enterprises v Deepak Auto Private Limited v Dhanesh Auto Electrical Limited v Metal Pressing Industries Private Limited v Toshi Auto Industries Private Limited v Lumax Automotive Private Limited v Lumax Filters Private Limited v Lumax International Private Limited v SL Lumax Limited v Lumax Auto Technologies Limited v D K Jain and Sons (HUF) v Sheela Finance Private limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity shares |
Rs. 10/- each |
Rs.120.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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8347732 |
Equity shares |
Rs. 10/- each |
Rs.83.477
millions |
Of the above:
(i) 3947500 equity
shares of Rs.10 each are allotted as fully paid-up bonus shares by
capitalisation of the General Reserve
(ii) 10000 equity
shares of Rs.10 each are allotted as fully paid-up pursuant to contracts for
consideration other than cash.
(iii) 850232
equity shares of Rs. 10 each are allotted as fully paid-up, pursuant to the
Scheme of Amalgamation with Laser Lamps (Haryana) Limited.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
83.477 |
83.477 |
83.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
731.180 |
598.439 |
546.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
814.657 |
681.916 |
629.800 |
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LOAN FUNDS |
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1] Secured Loans |
594.329 |
339.227 |
391.200 |
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2] Unsecured Loans |
379.538 |
349.551 |
307.300 |
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TOTAL BORROWING |
973.867 |
688.778 |
698.500 |
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DEFERRED TAX LIABILITIES |
189.854 |
184.547 |
0.000 |
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TOTAL |
1978.378 |
1555.241 |
1328.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1400.480 |
1333.978 |
1327.600 |
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Capital work-in-progress |
62.500 |
8.349 |
7.200 |
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INVESTMENT |
34.450 |
34.494 |
43.900 |
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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 |
451.208 |
432.893 |
260.900 |
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Sundry Debtors |
720.386 |
474.350 |
383.600 |
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Cash & Bank Balances |
294.114 |
145.386 |
100.600 |
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Other Current Assets |
17.798 |
35.295 |
0.000 |
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Loans & Advances |
176.127 |
170.870 |
222.500 |
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Total
Current Assets |
1659.633 |
1258.794 |
967.600
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1099.297 |
1024.970 |
960.300 |
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Provisions |
80.033 |
57.537 |
62.900 |
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Total
Current Liabilities |
1179.330 |
1082.507 |
1023.200
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Net Current Assets |
480.303 |
176.287 |
[55.600]
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MISCELLANEOUS EXPENSES |
0.645 |
2.133 |
5.200 |
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TOTAL |
1978.378 |
1555.241 |
1328.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
5353.839 |
4120.682 |
3551.800 |
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Other Income |
73.545 |
45.521 |
42.400 |
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Total Income |
5427.384 |
4166.203 |
3594.200 |
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Profit/(Loss) Before Tax |
182.838 |
92.271 |
163.600 |
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Provision for Taxation |
0.000 |
0.000 |
91.600 |
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Profit/(Loss) After Tax |
182.838 |
92.271 |
72.000 |
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Export Value |
119.082 |
80.319 |
NA |
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Import Value |
671.072 |
899.973 |
NA |
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Expenditures : |
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Purchases of Traded Goods |
891.987 |
196.642 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
17.100 |
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Raw Materials & Components Consumed |
2896.300 |
2677.940 |
1987.600 |
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Excise Duty |
0.000 |
0.000 |
499.000 |
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Power & Fuel |
0.000 |
0.000 |
93.000 |
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Other manufacturing Expenses |
0.000 |
0.000 |
195.100 |
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Employee cost |
0.000 |
0.000 |
268.500 |
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Selling & Administration Expenses |
0.000 |
0.000 |
173.300 |
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Miscellaneous Expenses |
0.000 |
0.000 |
39.500 |
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Cost of Sale of Moulds, Tools & Dies |
165.247 |
105.596 |
0.000 |
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Personnel Expenses |
397.744 |
323.464 |
0.000 |
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Operating & Other Expenses |
637.183 |
570.124 |
0.000 |
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Increase in Inventories |
[65.531] |
[91.200] |
0.000 |
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Financial Expenses |
57.748 |
55.115 |
51.200 |
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Depreciation & Amortization |
165.396 |
184.711 |
140.500 |
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Total Expenditure |
5146.074 |
4022.392 |
3464.80 |
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QUARTERLY RESULTS
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Year |
30.09.2007 |
30.06.2007 |
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Type
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2nd
Quarter |
1st
Quarter |
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Sales Turnover |
1267.500 |
1225.200 |
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Other Income |
26.200 |
33.300 |
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Total Income |
1293.700 |
1258.500 |
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Total Expenditure |
1165.800 |
1125.200 |
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Operating Profit |
127.900 |
133.300 |
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Interest |
12.300 |
12.200 |
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Gross Profit |
115.600 |
121.100 |
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Depreciation |
47.900 |
47.000 |
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Tax |
22.300 |
29.700 |
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Reported PAT |
47.600 |
47.600 |
KEY RATIOS
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Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
1.25 |
1.23 |
1.32 |
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Long Term Debt-Equity Ratio |
0.97 |
1.03 |
1.13 |
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Current Ratio |
0.97 |
0.89 |
0.93 |
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TURNOVER RATIOS |
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Fixed Assets |
2.53 |
2.14 |
1.86 |
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Inventory |
13.73 |
13.59 |
16.77 |
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Debtors |
10.16 |
10.99 |
9.89 |
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Interest Cover Ratio |
5.85 |
3.51 |
4.20 |
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Operating Profit Margin(%) |
8.29 |
8.02 |
10.00 |
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Profit Before Interest And Tax Margin(%) |
5.56 |
4.10 |
6.05 |
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Cash Profit Margin(%) |
5.74 |
5.87 |
5.98 |
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Adjusted Net Profit Margin(%) |
3.01 |
1.96 |
2.03 |
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Return On Capital Employed(%) |
22.57 |
15.43 |
18.30 |
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Return On Net Worth(%) |
27.46 |
16.36 |
14.18 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 10th December 1981 at New Delhi having Company Registration Number 12804.
The company is into manufacture of range of auto-lighting equipment including headlamps and auxillary lamp assemblies for 2, 3, 4 wheelers and oil filters and rear view mirrors. Subject roped in Stanley Electric, Japan as a technical collaborator in 1984. The Japanese Collaborator holds around 20% stake in the company.
The Company established as a trading concern under the name Globe Auto
Industries in Delhi at 1949 has got into manufacturing activity in 1957 by
setting up a plant in Delhi. Now it has four manufacturing units at Delhi,
Faridabad, Gurgaon and Pune. The company tapped the capital market in 1984.
Subject had set up a new automobile lighting equipment unit at a cost of around Rs 400 million at Gurgaon, with latest technological advancements. In 1998-99, the company increased the installed capacity of its head lamps and tail lamps/rear combination lamps to 2500000 nos and 2950000 nos. During 2000-01 the installed capacity of Head Lamps and Filters have increased to 3250000 and 650000 respectively.
The company decided to spin-off its Mirror and Filter division which produces
rearview mirrors and oil-filters into a separate company i.e. Lumax Aircleaners
Limited. The scheme of demerger arrangement is pending approval of the High
Court as on Sep 11, 2003. This scheme envisages allotment of 1 equity share of
the resultant new company for 4 shares of subject. This demerger leaves subject
as a pure Auto Lighting company.
DIRECTOR REPORTS:
FINANCIAL
PERFORMANCE:
For the Financial Year 2006-2007, the Company has achieved a sales turnover (net of excise) of Rs.5353.84 millions as against Rs.4120.68 millions in the previous year, showing an impressive growth of around 30%.
In comparison to the pervious year the Profit After Tax (PAT) has increased from Rs.92.27 millions to Rs.182.84 millions having a jump of 98% in the profit after tax of the Company as compared to last Financial Year. The Earnings per Share of the Company have grown by 98% from Rs.11.05 to Rs.21.90.
The significant growth in net profit is on account of operational efficiency
and constant focus on cost reduction. The Company has developed economies of
scale in the business and is confident of achieving significantly higher
margins in future. In view of the burgeoning growth of the Auto Sector and high
priority accorded to the Automotive Sector by the Indian Government, the demand
for excellent quality of automotive lighting products is increasing and will
grow substantially in future.
BUSINESS OVERVIEW AND OPERATIONS:
India is emerging as one of the most attractive destination for global players of Auto Industry. An excellent growth in demand is predicted for the Auto Component Industry. The number of automobiles hitting the Indian roads is on the rise with over one crore vehicles being added in FY-2007 alone. The Indian automobile market has been growing at a rapid rate due to booming Indian economy. Global Original Equipment Manufacturers (OEMs) and Tier 1 suppliers in the automotive industry are increasingly looking at India as a Low-Cost Country (LCC) for outsourcing. In this backdrop, most global car makers are setting up plants in India to market and manufacture their products.
The Company continues to maintain its leadership position as the most
experienced automotive lighting solutions company in South Asia, and supplies
Lighting products to almost all OEMs in India. The Company provides Lighting
Solutions to auto majors such as Maruti Udyog Limited, Ford India Limited, Tata
Motors, Mahindra and Mahindra, Hero Honda Motor Limited, Honda Siel, Honda
Scooters (HMSI), Yamaha Motors, Bajaj Auto and Piaggio India.
In order to serve the customers in an efficient manner, the Company has been
setting up its new plants in the vicinity of all the major OEMs from time to
time. Lumax has been invited by various OEMs to setup plant in the vendor Parks
close to where these OEMs are setting up their manufacturing facilities and
Lumax is privileged to be associated with these OEMs as one of their preferred
Vendors. Lumax's two new plants are coming up in Pantnagar-Uttarakhand and
Singur-West Bengal respectively for supplies to TATA Motors and one more Plant
in Haridwar-Uttarakhand for supply to Hero Honda Motors Limited.
The Board of Directors are confident that such strong partnership with various
established OEMs will provide huge growth opportunities for Lumax in
future.
AWARDS AND OTHER RECOGNITIONS:
They are happy and feel privileged to report some of the awards and recognitions, that they have received during the Financial Year ended March 31, 2007:
· Certificate from HSCI Supplier Club for 6th QC Circle Competition in March '2005.
· Award for Excellent Case Study in QCFI Delhi Chapter QC Circle Competition 2005.
· Award for Excellent Case Study in NCQC 2005.
· Direct On Line Supplier Award from Hero Honda Motors Limited
· New Model Development Award from Honda Motorcycle and Scooter for 2005-06.
· Award for Cost Reduction through VANE by Maruti Udyog Limited for 2004-05.
· Award for Kaizen by Maruti Udyog Limited for 2004-05.
· Toyota Kirloskar Motor Award for achieving Cost Targets for the year 2005.
· Toyota Kirloskar Motor Award for achieving Quality Targets for the year 2005.
· Award for Excellent Case Study in QCFI Delhi Chapter QC Circle Competition 2006.
PRIVATE PLACEMENT OF EQUITY SHARES TO
STANLEY ELECTRIC COMPANY. LIMITED, JAPAN:
The Company has made a Preferential Allotment of 1000000 Equity Shares of Rs.10/- each on May 8, 2007 to Stanley Electric Company Limited, Japan (Stanley) at a price of Rs.540.03 per share in accordance with SEBI (Disclosure and Investor Protection) Guidelines, 2000. Pursuant to the Preferential Allotment, Stanley has made a Public Announcement on May 14, 2007 in terms of Regulation 14 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 for acquiring 20% Shares at a price of Rs.540.03 per Share from the existing Shareholders of the Company, excluding Promoters.
The Company enjoys over two decades of fruitful partnership with Stanley-
Japan. This long association with Stanley is helping the Company to increase
its business with Japanese OEMs every year which at present accounts for about
55% of the annual turnover of the Company. The proposed increase in Equity
participation by Stanley will bring its added commitment to increase flow of
latest technology, bringing best manufacturing and quality practices to Lumax
which will create value for all stakeholders.
MANAGEMENT DISCUSSION
and ANALYSIS:
INDUSTRY STRUCTURE,
DEVELOPMENTS AND OUTLOOK:
On the canvas of the Indian Economy, Auto Industry occupies a prominent place. Due to its deep forward and backward linkages with several key segments of the economy, Automotive industry has a strong multiplier effect and is capable of being the driver of economic growth. The Automotive Sector in India is growing at around 18 per cent per annum.
AUTO COMPONENT INDUSTRY:
Surge in Automobile Industry since the nineties has led to robust growth of the Auto Component sector in the country. The Auto Component Industry has emerged as one of India's fastest growing manufacturing sectors and a globally competitive one. Indian Auto Component Industry has seen major growth with the arrival of world vehicle manufacturers from Japan, Korea, US and Europe. Today, India is emerging as one of the key auto components center in Asia and is expected to play a significant role in the global automotive supply chain in the near future.
The Auto Components Industry in India is dominated by around 500 key players,
which contribute more than 85 percent of India's production. India has also
emerged as an outsourcing hub for auto parts for international companies such
as Ford, General Motors, Daimler Chrysler Fiat, Volkswagon and Toyota.
The present size of the Auto Components Industry in India is estimated at US $
15 Billion. It has beer growing at a CAGR 27% p.a. for last five years which is
highest in the Industrial Sector.
The Government has notified Draft Automotive Mission Plan 2006-2016 (AMP) for
the development of the Indian Automotive Industry in to a Global Hub.
The total size of the Auto Component industry in India is expected to become US$ 40-45 billion by 2016. To achieve the above mission. Indian automotive industry would require an incremental investment of US$ 35-40 billion (Rs.1600000.000 – 1800000.000 Millionss) by 2016.
OPPORTUNITIES and THREATS:
India holds huge potential in the automobile sector including the automobile component sector owing to its technological, cost and manpower advantage. Further, India has a well-developed, globally competitive Auto Ancillary Industry and established automobile testing and R and D centers. The country enjoys natural advantage and is among the lowest cost producers of steel in the world. The current scenario offers huge growth opportunities for Auto Component Industry in general and for the Company in particular.
The Indian Auto Component industry has major challenges from China and Thailand. Indian Auto Component Sector faces around 18%-20% of Cost disadvantage as compared to China and Thailand due to higher taxation, power cost, raw material costs and infrastructure cost. The prime concern of the Industry is to maintain a 12.5% of Customs Duty to protect the home industry from low cost imports from other countries.
The Company proposes to address these threats and convert the opportunities
into growth of the Company by cost reduction measures, developing economies of
scale, process improvements, quality up-gradations, increase market share and
by diversifying existing customer base with the addition of new strategic
customers and enhancing the existing relationship.
In addition, all plants of the Company have been set up in the vicinity of the
manufacturing locations of all major OEMs which enables the Company to serve
its customers in an efficient manner. All these factors strengthen the Company
to remain competitive in the fast growing Auto Component Industry.
PRODUCT WISE PERFORMANCE:
The Company is engaged only in one segment of products viz.
manufacture of Auto Components, mainly Automotive Lighting Systems. The Company
continued to perform well during the year as shown below:
Products Turnover % increase over last (Rs. in Millions) year Head
Lamp Assembly 3116.27 31.04Tail Lamp Assembly 1221.76 35.03Tools 205.85 74.08
Miscellaneous Items 809.96 12.55.
DISCUSSION ON
FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE:
The Company posted another record high turnover of Rs.5353.84 millions (net
of excise duty), registering a healthy growth of about 30% over the previous
year. The company continued to retain its leadership position as the major
supplier of automotive lighting equipment for most of the passenger cars,
utility vehicles, commercial vehicles, tractors and two wheeler manufacturers.
The sale of Head Lamp and Tail Lamp achieved a figure of Rs.3116.27 millions
and Rs.1221.76 millions respectively during FY-07 as against Rs.2377.97
millions and Rs.904.79 millions in the previous year registering a growth of
31% and 35% respectively.
The Raw Material Consumption for the year ending March 31, 2007 is Rs.2896.30
as compared to Rs.2677.94 in the previous year. The Raw Material Consumption in
the year ending on March 31, 2007 is 54.10% of the turnover of the Company as
against 64.99% of turnover in the previous year. The cash generated from
operations before working capital changes is Rs.501.02 millions as compared to
the previous year figure of Rs.364.35 millions.
The company is in
trade terms with:-
v Divya Auto Industries (Private) Limited
v Dheeraj Tool and Engineering Products
v Deepak Auto (Private) Limited
v HGI Automotive (Private) Limited
v Hilite Glass (Private) Limited
v Krishna Packwell (Private) Limited
v Phiroze Sethna (Private) Limited
v Super Switch (Private) Limited
v Super Screw (Private) Limited
v Tech Plast (India) (Private) Limited
v Vaccum Instruments Company Limited
The company’s fixed assets of important value:-
· Land,
· Building,
· Plant and Machinery,
· Furniture,
· Office Equipments,
· Electrical Appliances,
· Fans and
· Vehicles.
OTHER INFORMATION:
The company is engaged in manufacturing of Head Lamp, Tail Lamp, Stop Lamp, Side Lamp, Blinkers, Automobile Lighting Equipment and Rear-view Mirrors for Vehicles.
Its product range includes head lamps and auxiliary lamp assemblies for tow-wheelers, three-wheelers and four wheelers, oil filters and rear view mirrors.
The company manufactures a range of auto-lighting equipment which includes headlamps and auxillary lamp assemblies for two, three and four wheelers, air and oil filters and rear-view mirrors. In 1984, the company entered into a technical collaboration agreement with Stanley Electric, Japan. It had set up a new automobile lighting equipment unit at a cost of around Rs. 400 millions at Gurgaon, with latest technological advancements.
It has renowned customers for its products – Telco, Ashok, Leyland, Ford, Hindustan Motors, Nissan, DCM Toyota, Bajaj Tempo, Mahindra and Mahindra, Maruti, Premier Automobiles, Hero Honda, Bajaj, etc.
The company exports automotive lighting equipment, rear, view mirrors, filters, incandescent bulbs, plastic moulded and sheet metal components to Gulf, African, South – East Asian, Middle East, UK, USA and European Countries.
A large number of the products of the Company have been approved by the defence sector.
The company’s collaborator Stanley Electric Company Limited, Japan has increased their stake in equity to 20 %.
Subject has been accredited with ISO 9002 and QS 9000 Certifications.
WEBSITE DETAILS:
Subject signifies ‘LUMINOSITY MAXIMA’ for today’s demanding automobile users. They have taken Automotive lighting to an entirely new level. Today Subject accounts for over 60% market share in the Indian Automobile Lighting Business, catalyzed by its over two decades strong technical and financial collaboration with Stanley Electric Company Limited, Japan, a world leader in Vehicle Lighting and illumination products for Automobiles.
Subject offers a wide array of complete Automobile Lighting Systems and
Solutions, which includes; stellar quality Head Lamps and Tail
Lamps, Sundry and Auxiliary Lamps and other related products
and accessories for Four Wheeler, Two Wheeler, Trucks, Buses,
Earth-movers, Tractors and a variety of diverse applications.
As the most experienced automotive lighting solutions company in South Asia, Subject, enjoys a history of more than half a century of innovation, Technology, Manufacturing and Market Leadership. Today, Subject is a full-capability provider of high quality automotive lighting solutions for Four wheelers and Two wheeler applications, serving automobile manufacturing in India as-well-as worldwide.
Subject strives for continual improvement of manufacturing processes with
emphasis on consistent quality and cost effectiveness. Subject signifies
LUMINOSITY MAXIMA for today's demanding automobile users.
Subject has come a long way since its inception as a trading company in the
year 1945, under the aegis of its founder Mr. S.C. Jain. Today Subject accounts
for over 60% market share in Indian Automobile Lighting
Business, fueled in no small measure by its two decade old
technical and financial collaboration with Stanley, Japan, a world leader in
Vehicle Lighting and illumination products for Automobiles.
Subject has seven ultra modern manufacturing plants
in India. Of these, two are located in cities of Gurgaon , Dharuhera in the
state of Haryana, near New Delhi and three plants in Pune , near Mumbai in
Maharashtra and one plant near Chennai . These facilities have been laid out to
match world's best plant engineering standards and as you hear this, Their
plants are busy producing automotive lighting products in large quantities to
their customer's exacting standards.
Subject has a futuristic vision with an experienced and customer focused management
team. This is clearly evident from their financial growth which has seen a
steady upward trend right since their inception. Subject
posted a growth of over 39% in 2004-05, despite a de-merger
from its mirror and filters businesses. Automotive Lighting now enjoys a
singular focus at the company.
Subject facilities are manned by over a 2000 highly skilled and
specialized personnel composed of associates, executives and
managers. Subject is listed on major stock exchanges in India and depicts a shareholding
holding of 26% by Indian Promoters , 28% is held by Stanley and 46% by Public and Corporate Bodies .
HISTORY:
1945
Mr. S.C. Jain , Chairman, establishes a trading concern.
1956-66
Manufacturing Units set up for automotive lighting equipment and other
components.
1975
Manufacturing unit set up for automotive
filters .
1977-79
Manufacturing units became functional at
Faridabad-Haryana and Pune-Maharashtra .
1984
Private Limited. Company to Public Limited
Company . Technical assistance agreement with M/s Stanley, Japan for lighting
equipment.
1985-87
Dedicated manufacturing unit for M/s
Maruti-Suzuki at Gurgaon - Haryana.
1990
Manufacturing unit for auto bulbs with
assistance of Stanley, Japan .
1994
Financial participation of collaborator M/s Stanley, Japan . Manufacturing unit
at Aurangabad-Maharashtra .
1995
ISO 9002 Certification to Gurgaon unit by TUV
Germany .
1998
QS-9000 Certification to Gurgaon unit by DNV
Netherlands . Production begins at Lumax Dharuhera .
1999
QS-9000 Certification to Dharuhera unit by
DNV Netherlands .
2003
ISO/TS 16949 : 2002 Certification for GURGAON
and DHARUHERA Plants by DNV, USA .
2004
ISO 14001 Certification for Gurgaon, Dharuhera and Chennai Plants by DNV
. De-merger - Core Lighting Technology.
2005
Manufacturing unit became functional at
Chakan (Near Pune)
2006
Plant set up in Bajaj Auto Vendor Park- at
Pantnagar - Uttranchal
2007
Setting up of state of art new plants at
Pantnagar-Uttranchal, Singur-West Bengal and Haridwar-Uttranchal.
Extension of Dharuhera and Chakan II Plant.
SUBJECT has grown from success to success since its foundation in the year 1945 . The company went Public in the Year 1984 , and thus in the same year embarked on its highly successful technical collaboration with Stanley, Japan .Ten years of highly rewarding partnership resulted in Stanley picking up financial stake in Subject in the year 1994 .
Subject became an ISO 9002 certified company in 1995 , attained its QS 9000 certification in the year 1998 and achieved the ISO/TS 16949 : 2002 and ISO 14001 in 2003 . In the same year subject de-merged from its Mirror and Filter Division , there-by focusing on its core competency of producing stellar Automotive Lighting Products .
Subject has a futuristic vision with an experienced and customer focused
management team. This is clearly evident from their financial growth which has
seen a steady upward trend right since their inception. Subject posted a growth
of over 30% in the year 2003-04,
despite a de-merger from its mirror and filters businesses. Automotive Lighting
now enjoys a singular focus at the Company.
Subject strives for continual improvement of manufacturing processes with
emphasis on consistent quality and cost effectiveness. Subject signifies LUMINOSITY MAXIMA for today's
demanding automobile users.
They at the Company in the new millennium, are committed to retain excellence
in quality of their products and services, with focus on customer satisfaction
and market leadership. They vow to remain a responsible corporate citizen,
contributing to the lives of their people and the preservations of their
Planet's eco-balance . They extend their selves as the partner in growth.
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.39.73 |
|
UK Pound |
1 |
Rs.77.01 |
|
Euro |
1 |
Rs.57.34 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|