MIRA
INFORM REPORT
|
Report Date : |
30.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
FORCE MOTORS
LIMITED |
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Formerly Known
As : |
BAJAJ TEMPO
LIMITED |
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Registered
Office : |
Mumbai – Pune Road,
Akurdi, Pune – 411 035, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
08.09.1958 |
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Com. Reg. No.: |
11-11172 |
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CIN No.: [Company
Identification No.] |
L34102MH1958PLC011172 |
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TAN No.: (Tax Deduction
& Collection Account No.) |
PNEB00002C |
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PAN No.: (Permanent
Account No.) |
AAACB7066L |
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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 : |
Manufacturer of
On-road Automobiles having 4 or More Wheels, Agricultural Tractors, Diesel Engines,
Moulds, Dies, Press Tools, Jigs and Fixtures. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
A |
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 8750000 |
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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 an
old, well established and a reputed company engaged in manufacturing and
selling of Tempo Travellers Tractors, etc. The company’s trade relations are reported
as fair. Payments are usually correct ad as per commitments. The company can
be considered good for business dealings at usual trade terms and conditions.
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LOCATIONS
|
Registered/
Corporate Office : |
Mumbai – Pune Road,
Akurdi, Pune – 411 035, Maharashtra, INDIA |
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Tel. No.: |
91-20-22776380-89 |
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Fax No.: |
91-20-22775984/2773017/
91-20-27473017
or 27404678 |
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E-Mail : |
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Website : |
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Plant
Locations : |
Ř Mumbai – Pune Road, Akurdi, Pune – 411
035, Maharashtra, India Ř
Pithampur, District
Dhar – 452 002, Indore, Madhya Pradesh, India |
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Branches : |
Located at : v Dubai |
DIRECTORS
|
Name : |
Mr. Abhay N. Firodia |
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Designation : |
Chairman & Managing Director |
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Age: |
57 years |
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Qualification: |
B. A. (Hons.) |
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Experience: |
34 years |
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Date of
Joining: |
1st July, 1987 |
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Previous
Employment: |
Kinetic Engineering Ltd – Managing Director - 2 & 1/2 years |
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Name : |
Mr. M. G. Chopda |
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Designation : |
Joint Managing Director ( w.e.f. 23.02.2002 ) |
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Name : |
Mr. S. S. Marathe |
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Designation : |
Director |
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Name : |
Dr. Rolf Bacher |
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Designation : |
Director |
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Name : |
Dr. V. A. Pai
Panandiker |
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Designation : |
Director |
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Name : |
Mr. S. N. Inamdar |
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Designation : |
Director |
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Name : |
Dr. V. G. Bhide |
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Designation : |
Director |
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Name : |
Mr. Vinay Kothari |
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Designation : |
Director |
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Name : |
Mr. Sudhir Mehta |
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Designation : |
Director |
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Name : |
Mr. Bharat V.
Patel |
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Designation : |
Director |
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Name : |
Mrs. Anita
Ramchandran |
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Designation : |
Director |
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Name : |
Mr. Prasan
Firodia |
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Designation : |
Director |
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Name : |
Mr. S. A.
Gundecha |
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Designation : |
Director (w.e.f. 1st June, 2004) |
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Name : |
Mr. M. Venkataiah |
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Designation : |
Director (w.e.f.27.06.2006) |
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Name : |
Mr. Pratap V Pawar |
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Designation : |
Director |
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Name : |
Mr. S Padmanabhan |
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Designation : |
Director |
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Name : |
Mr. R B Bhandari |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. V. M. Mundada |
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Designation : |
Business Head (3 Wheelers) |
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Name : |
Mr. Amol Sandil |
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Designation : |
Advisor (Marketing) |
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Name : |
Mr. B.S. Khargaonkar |
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Designation : |
President (4-Wheelers) |
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Name : |
Mr. N.P. Raghunathan |
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Designation : |
President (Tractor) |
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Name : |
Mr. S. A. Gundecha |
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Designation : |
Company Secretary |
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Name : |
Mr. Y. Nath |
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Designation : |
Advisor (Projects) |
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Name : |
Mr Raider Singh |
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Designation : |
V. P. (Sales & Marketing) |
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Name : |
Mr. Arvind Goel |
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Designation : |
President (HCV) |
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Name : |
Mr. P. V. Inamdar |
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Designation : |
V. P. (Minidor Operations) |
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Name : |
Mr. A. N. Joshi |
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Designation : |
V. P. (Engine & Tractor Operations) |
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Name : |
Mr. P V K Rao V P |
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Designation : |
(Production Engineering) |
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Name : |
Mr. H. S. Pundle |
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Designation : |
V. P. (Transmission Operations) |
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Name : |
Mr. Ashwin Shastri |
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Designation : |
V. P. (4-Wheeler Operations) |
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Name : |
V. M. Yelne |
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Designation : |
V. P. (New Engine & Transmission) |
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Name : |
Mr. S- B. Subramaniam |
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Designation : |
Sr. G. M. (Finance) |
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Name : |
Mr. G.
Venkataramanan |
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Designation : |
Sr. G. M. (R
& D - HCV) |
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Name : |
Mr. R. V. Govind |
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Designation : |
Sr. G. M. (R
& D - 3-Wheeler) |
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Name : |
Mr. C. S.
Maikhuri |
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Designation : |
Sr. G. M. (R
& D - 4-Wheeler) |
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Name : |
Mr. R. Jagadishan
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Designation : |
Dy. G. M. (Info.
Services) |
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Name : |
Mr. D. K. Sanghvi
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Designation : |
Sr. D. M. (Audit) |
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Name : |
Mr. Ravinder
Singh |
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Designation : |
President (Sales
and Marketing) |
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|
Name : |
Mr. Milind Kapoor |
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Designation : |
Vice President
(Sale) |
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Name : |
Mr. Manoj Kumar |
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Designation : |
Vice President (Sale) |
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Name : |
Mr. Sunil
Dhadiwal |
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Designation : |
General Manager
(Sale) |
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Name : |
Mr. M. P. Kanade |
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Designation : |
Sr. General
Manager Product Support
(Service and Parts) |
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Name : |
Mr. Prashant Keni
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Designation : |
Head (Export) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter’s Holding |
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|
Promoters |
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|
Indian Promoters |
6,228,267 |
47.27 |
|
Person
Acting in Concert |
593,127 |
4.50 |
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Sub
Total |
6,821,394 |
51.77 |
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Non Promoter’s
Holding |
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Institutional
Investors |
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Mutual Funds and UTI |
51,019 |
0.39 |
|
Banks, Financial Institution, Insurance Companies |
536,438 |
4.07 |
|
FIIS |
450 |
0.00 |
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Sub
Total |
587,907 |
4.46 |
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Other Investors |
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Private Corporates Bodies |
2,644,841 |
20.07 |
|
NRIs / OCBs / Foreign Others |
126,518 |
0.96 |
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Sub
Total |
2,771,359 |
21.03 |
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General Public |
2,995,569 |
22.73 |
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Grand
Total |
13,176,229 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturer of On-road
Automobiles having 4 or More Wheels, Agricultural Tractors, Diesel Engines,
Moulds, Dies, Press Tools, Jigs and Fixtures. |
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Products : |
Ř Tempo – Trax - 870210 Ř Minidor - 870310 Ř Tempo Traveler –
870290 Ř Agricultural Tractors Ř Diesel Engines Ř Moulds Ř Dies Ř Press Tools Ř Jigs and Fixtures Ř 3 Wheeler Ř HCV Ř LCV Ř MUV Ř Tractor
|
PRODUCTION STATUS
As on 31.03.2007
|
Particulars |
Unit
|
Licensed Capacity |
Installed Capacity |
Actual Production |
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On Road
automobiles having 4 or more wheels such as light, medium and heavy
commercial vehicles, jeep type vehicles and passenger cars covered under subheading
(5) of heading (7) of First Schedule to IDR Act including Three wheelers |
Nos |
60000 |
55000 |
35728 |
|
Agricultural
Tractor |
Nos |
12000 |
12000 |
4513 |
|
Diesel Engines
for other purposes |
Nos |
7500 |
6000 |
52 |
|
Moulds, dies, press
tools, jigs and fixtures |
Nos |
1000 |
500 |
534 |
GENERAL
INFORMATION
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Suppliers : |
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No. of
Employees : |
Around 4,662 |
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Bankers : |
Ř State Bank of India Ř Canara Bank Ř Standard Chartered Grindlays Bank Limited Ř Citibank NA Ř Bank of Maharashtra Ř Bank of America NT & SA Ř HDFC Bank Limited |
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Facilities : |
SECURED
LOANS :- [Figures
are in Rupees Millions]
UNSECURED LOANS
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Banking Relations : |
Satisfactory |
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Auditors : |
P. G. Bhagat Chartered
Accountant Pune,
Maharashtra, India Cost Auditors
Dhananjay V.
Joshi & Company Chartered
Accountants Pune,
Maharashtra, India |
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Associates : |
Ř Jaya Hind Industries Limited Ř S. M. Auto Engineering Private Limited Ř Sparco Engineering Private Limited Ř Pinnacle industries Limited Ř Kinetic Engineering - a leading moped Luna
Manufacturer Ř Kinetic Honda - a joint venture with
Honda, for scooters Ř Z. F. Steering Gear (India) Limited Ř Twentieth Century – Kinetic Finance Ř Integrated Finance Ř Kinetic Capital Ř
Tempo
Finance (North) |
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Subsidiaries : |
Tempo Finance (West) Private Limited
Man Force Truck Private Limited Jaya Hind Industrial Limited Pinnacle Industries Limited Jaya Hind Investments Private Limited |
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Memberships : |
Confederation of Indian Industry |
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Parent
Company: |
Ř Firodia Group : Firodias
( Mr. H. K. Firodia and Mr. N. K. Firodia, two brothers) played a pioneering role
in the development of 2 wheelers and commercial vehicles industry in
India. Bajaj Tempo and Bajaj Auto
were both jointly promoted by the late Mr. Jamnalal Bajaj and Mr. H. K.
Firodia. The two partners parted ways
and Firodias kept control of Bajaj Tempo. The group has set up
5 finance companies namely Twentieth Century
Kinetic Finance, Integrated Finance, Kinetic Capital,
Tempo Finance (West) and Tempo Finance
(North) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20,000,000 |
Equity Shares |
Rs.10 each |
Rs. 200.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13213802 |
Equity Shares |
Rs.10 each |
Rs. 132.138 millions |
Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
131, 76,262 |
Equity
shares fully paid up |
Rs. 10 each |
Rs. 131.762 million |
|
|
[ of the above 200918
(200918) Equity Share are allowed as fully paid share pursuant to a contract
without payment being received in cash and 5729934 (5729934) Equity Share are
allotted as fully paid Bonus Shares by capitalization of reserves] |
|
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Add : |
Amount paid on
forfeited shares |
|
Rs. 0.028 million |
|
|
Total |
|
Rs. 131.790 millions |
Note: Offer on right basis for 17932 (17932)
Equity Share of Rs.10/- each is kept in abeyance as per provision of section 206A
of the companies Act, 1956
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
131.790 |
131.790 |
131.790 |
|
2] Reserves & Surplus |
1734.284 |
2109.202 |
1807.862 |
NETWORTH
|
1866.074 |
2240.992 |
1939.652 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
1747.179 |
2073.297 |
466.310 |
|
2] Unsecured Loans |
746.029 |
178.625 |
110.841 |
TOTAL
BORROWING
|
2493.208 |
2251.922 |
577.151 |
|
|
|
|
|
TOTAL
|
4359.282 |
4492.914 |
2516.803 |
|
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2547.174 |
2294.305 |
1201.405 |
|
Capital work-in-progress |
428.292 |
859.553 |
132.806 |
|
|
|
|
|
|
INVESTMENTS |
725.852 |
25.752 |
25.752 |
DEFERREX TAX ASSETS
|
155.220 |
120.446 |
68.374 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
2039.160 |
2138.386 |
1850.620 |
|
Sundry Debtors |
1199.028 |
1068.786 |
762.654 |
|
Cash & Bank Balances |
182.706 |
141.391 |
127.174 |
|
Other Current Assets |
0.334 |
1.047 |
0.775 |
|
Loans & Advances |
621.077 |
1018.903 |
405.665 |
|
Total Current Assets |
4042.305 |
4368.513 |
3146.888 |
|
Less: CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
Current Liabilities |
3158.111 |
3175.655 |
2058.422 |
Provisions
|
381.453 |
0.000 |
0.000 |
Total Current Liabilities
|
3539.564 |
3175.655 |
2058.422 |
|
Net Current
Assets |
502.743 |
1192.858 |
1088.466 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
TOTAL
|
4359.282 |
4492.914 |
2516.803 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
9756.104 |
9338.125 |
8561.219 |
|
|
Other Income |
929.623 |
427.143 |
393.267 |
|
|
Total Income |
10685.272 |
9765.268 |
8954.486 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(383.835) |
(503.631) |
66.548 |
|
|
Provision for Taxation |
8.917 |
(202.291) |
39.361 |
|
|
Profit/(Loss) After Tax |
(374.918) |
301.340 |
27.187 |
|
|
|
|
|
|
|
|
Total Earnings |
285.638 |
161.174 |
(109.645) |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
57.141 |
109.752 |
402.232 |
|
|
Components |
687.392 |
573.629 |
429.368 |
|
|
Stores & Spares |
0.493 |
0.396 |
0.047 |
|
|
Capital Goods |
265.289 |
399.132 |
41.406 |
|
|
Others |
69.434 |
32.763 |
43.261 |
|
Total Imports |
1079.749 |
1115.672 |
916.314 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
7618.098 |
7026.789 |
6223.205 |
|
|
Depreciation & Amortization |
414.799 |
426.790 |
312.110 |
|
|
Expenses included in above items, Capitalised |
(196.944) |
(191.149) |
N.A. |
|
|
Other Expenditure |
3233.609 |
3006.468 |
2462.390 |
|
Total
Expenditure |
11069.562 |
10460.047 |
8997.705 |
|
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Types |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
1799.700 |
2124.500 |
2375.500 |
2750.900 |
|
Other Income |
121.900 |
144.100 |
170.700 |
217.600 |
|
Total Income |
1921.600 |
2268.600 |
2546.200 |
2968.500 |
|
Total Expenditure |
1908.600 |
2294.200 |
2591.300 |
2984.000 |
|
Operating Profit |
13.000 |
(25.600) |
(45.100) |
(15.500) |
|
Interest |
68.000 |
82.800 |
89.400 |
103.300 |
|
Gross Profit |
(55.000) |
(108.400) |
(134.500) |
(118.800) |
|
Depreciation |
93.800 |
102.600 |
86.600 |
107.100 |
|
Tax |
(1.000) |
20.900 |
3.200 |
6.600 |
|
Reported PAT |
(147.800) |
(231.900) |
(224.300) |
(232.500) |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
1.16 |
0.68 |
0.30 |
|
Long Term Debt Equity Ratio |
0.67 |
0.38 |
0.07 |
|
Current Ratio |
1.00 |
1.17 |
1.29 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.50 |
1.55 |
1.55 |
|
Inventory |
5.45 |
5.45 |
5.93 |
|
Debtors |
10.04 |
11.87 |
10.59 |
|
Interest Cover Ratio |
(3.05) |
4.85 |
4.53 |
|
Operating Profit Margin (%) |
(1.68) |
7.28 |
3.96 |
|
Profit Before Interest and Tax Margin (%) |
(5.32) |
3.36 |
0.83 |
|
Cash Profit Margin (%) |
(3.34) |
6.70 |
3.39 |
|
Adjusted Net Profit Margin (%) |
(6.98) |
2.77 |
0.27 |
|
Return on Capital Employed (%) |
(13.70) |
10.41 |
3.33 |
|
Return on Net Worth (%) |
(38.71) |
14.41 |
1.41 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Intangible
Assets
- Free Hold
Land
- Lease hold
Land
- Building
- Plant,
Machinery and Equipment
- Dies and jigs
- Electric
Installation
- Furniture and
Fixtures
- Electric
Fittings
- Vehicles
- Aircraft
HISTORY
The company was
incorporated on 8th September, 1958 at Pune in Maharashtra having
Company Registration Number 11172.
The company started
manufacturing operations in 1959, Bajaj Tempo came out with a public issue in
1964, and the company manufactured petrol-engined three-wheelers, which were
later powered by diesel engines (from 1977-78). Four-wheelers with petrol
engines were introduced in 1966-67 and changed to diesel engines in 1981-82. In
1980, new machinery was purchased and technical support obtained from
Mercedes-Benz, Germany, to manufacture 40,000 light commercial vehicles p.a. in
1993, Daimler Benz off-loaded over half a million shares of the company. Today,
three-wheelers, Matador, Tempo Traveller and Tempo Trax and the Minidor range
of vehicles constitute and product range of this Firoda group company with
plants in Pune and Pithampur. The firodias hold a 44%, while 22% and 16% is
held with Bajaj Auto and Daimler-Benz, respectively and the remaining stake is
held with the general public and others.
The company offered
rights in May’1993 at a premium of Rs. 90 per share to part-finance a project
to modernise manufacturing technologies and to add balance capacities in the
areas of foundry engine production and painting facilities. Bajaj Tempo has entered
the agricultural sector with the manufacture of an indigenously developed
tractor in technical collaboration with Robert Bosch, Germany. The company also
has collaborations with Zahnradfabrik Passau for synchromesh transmissions;
Deutsche Perrot for duo servo brakes.
During 1996-97, the
company successfully introduced tempo ‘OX-45’ tractor in the market. The
company also won the EEPC award for its excellent export effort for developing
exports in the African market. The 35 HP tractor was successfully launched in
1998-99.
The company has
expanded its tractor range. The company’s Tempo OX tractors is currently
available in the 35 hp and 45 hp category and is now entering the 25 hp and 60
hp category. The company has also revamped its Excel range of LCVs to meet the
Euro I and India 2000 norms and has re-launched the Excel. New variants of the
Tempo Tax have been introduced. Trax Judo is the upgraded machine with a
stylised all metal body with Euro I compliance. After getting a foothold in
Maharashtra, the three wheeler, Mindor, is finding its way to new markets in
Tamilnadu and Andhra Pradesh markets. The company has placed orders for new
machinery, equipments and capital assets for Rs. 31.700 millions.
Biodata
Commenced
manufacturing operations in 1959, Bajaj Tempo came out with a public issue in
1964. Initially, the company manufactured petrol-engined three-wheelers which
were later powered by diesel engines (from 1977-78). Four-wheelers with petrol
engines were introduced in 1966-67 and changed to diesel engines in 1981-82. In
1980, new machinery was purchased and technical support obtained from
Mercedes-Benz, Germany, to manufacture 40,000 light commercial vehicles p.a. In
1993, Daimler Benz off-loaded over half a million shares of the company. Today,
three-wheelers, Matador, Tempo Traveller and Tempo Trax and the Minidor range
of vehicles constitute the product range of this Firodia group company with
plants in Pune and Pithampur. The Firodias hold a 44%, while 22% and 16% is
held with Bajaj Auto and Daimler-Benz, respectively and the remaining stake is
held with the general public and others.
The company offered rights in May '93 at a premium of Rs 90 per share to
part-finance a project to modernise manufacturing technologies and to add
balance capacities in the areas of foundry engine production and painting
facilities. Bajaj Tempo has entered the agricultural sector with the
manufacture of an indigenously developed tractor in technical collaboration
with Robert Bosch, Germany. The company also has collaborations with
Zahnradfabrik Passau for synchromesh transmissions; Deutsche Perrot for duo
servo brakes.
During 1996-97, the company successfully introduced tempo 'OX-45' tractor in
the market. The company also won the EEPC award for its excellent export effort
for developing exports in the African market. The 35 HP tractor was
successfully launched in 1998-99.
The company has expanded its tractor range. The company's Tempo Ox tractors is
currently available in the 35 hp and 45 hp category and is now entering the the
25 hp and the 60 hp category. The company has also revamped its Excel range of
LCVs to meet the Euro I and India 2000 norms and has re-launched the Excel. New
variants of the Tempo Tax have been introduced. Trax Judo is the upgraded
machine with a stylised all metal body with Euro I compliance. After getting a
foothold in Maharashtra, the three wheeler, Mindor, is finding its way to new
markets in Tamil Nadu and Andhra Pradesh markets. The company has placed orders
for new machinery,equipments and capital assets for Rs.31.700 millions.
The gross turnover
for the year under report was Rs. 11297.3 millions as against Rs. 10391.7
millions for the previous year showing a marginal increase. Emphasis on Heavy
Commercial Vehicle Project, stiff competition and limited opportunity to pass
the cost increases to the customers affected the performance of the Company.
Your company has so
far been following "written down value method" for writing off
depreciation. While this method was found appropriate in earlier years, taking
into account technological changes in Engines and Transmissions led by
Environments Regulations, extent of fresh investments made and to be made for
future plans of the Company, the Board of Directors felt it necessary to review
the accounting policy for depreciation. In order that the financial statements
reflect a more appropriate presentation of the affairs of the Company and the
financial results, the Board of Directors feel that it would be prudent under
the circumstances to shift to the "Straight Line Method" from the
present Written Down Value Method in accordance with the rates prescribed in
Schedule XIV of the Companies Act, 1956. The Board of Directors intend to
continue to follow the Straight Line Method henceforth.
Attention of
Members is invited to Note No. 17 to Notes to Accounts.
In the light of
this situation, the Board of Directors has not recommended payment of any
dividend for the year under report.
Name Change
As reported
earlier, the litigation about name change is still pending before the Hon'ble
High Court of Judicature at Mumbai.
Market Situation
In view of the
provisions of the Listing Agreement, the Market Situation, Status of Operations
and of Heavy Vehicles Project etc., are dealt with in the "Management
Discussion & Analysis" attached hereto.
Exports
The export turnover
for the year under report was Rs.285.600 millions against the previous year's
exports of Rs.161.200 millions. There is optimism about the growth in the volume
of export, as also the territories to which export are achieved. The excellent
growth in the export in the previous year is expected to be maintained in the
future.
Research &
Development
The expenditure on
Research & Development for new products, including the expenditure on
Projects and Tool Engineering, was 3.75% of the turnover. The Company’s
pursuing of the R&D objective of achieving high quality driveline products
for light commercial vehicles, for small commercial vehicle and tractor, is expected
to enable fielding, in the near future, a series of completely updated,
modernizes and high technology product lines, commensurate with changing
customers expectations, market requirement and standered.
Foreign
Collaborations
During the year
under report the progress in absorption of the technology obtained from Daimler
Chrysler AG and ZF Friedrichshafen Ag for engine and gear box for various rang
of product progress satisfactory
During the year
under report, service of several foreign consultant on select basis were
arranged for development of clothes and drive line Design. Up gradation of
traveler range vehicle for various application was undertaken. The assistance
has supplemented the progress is rapidly conceptualizing and preparing for production
of modified various of various product such as Travelers, Tractors and
Traxes.
As reported earlier
and as approved by the members of the company, all assts, liability and
contracts, including the technology and license arrange in respect of heavy
commercial vehicle project were transfer to MAN FORCE TRUCKS private limited ,
a subsidiary company. Accordingly the technology received from MAN
Nutzfahrzeuge AG and MAN Osterreich AG is now available to MAN FOURCE TRUCKS private limited for manufacturing to heavy
commercial vehicle as a joint venture between your company and MAN
Nutzfahrzeuge AG
Industrial
Relations
Litigation between rival unions of workman employee of the Akurdi Plant,
Pune continues and there in no improvement in the relationship with union of
workmen at Pune. The issued, about reorganization of union, has reported
earlier, affected severally operations of the company for the past 3 year and
the solution does not seem to be on horizon.
The company unilaterally made various efforts and extended the helping
hand to general workman by offering incentive and productivity based increase.
It is satisfactory that the general response of the workmen has hearting.
The industrial relation with the permanent employees at the Pithampur Plant
of your company continues to the cordial and constructive. The company has
entered in to a 3 year wage settlement with the union representing workman
employed at the Pithampur Plant on or about 20th January 2007.
Director Reports
Mr. M. Venkataiah
Mr. M. Venkataiah,
62, is a MIE Graduate and has started his career as Planning Engineer and has
wide experience in Automobile Design, Manufacturing Process, Tool Designing,
Capital Goods procurements. Presently he is the Executive Director of Jaya Hind
Industries Limited, one of the largest Die Casting Foundries in the country.
Mr. Venkataiah holds directorships in Jaya Hind Industries Limited and Kinetic
Motor Company Limited. The Company received an intimation in the prescribed
form as per the provisions of the Companies (Disqualification of Director Under
Section 274(1 )(g) of the Companies Act, 1956) Rules, 2003 from him.
Mr. S. A.
Gundecha
Mr. S. A. Gundecha,
51, is a Commerce Graduate with degree in Law and he is an Associate Member of The
Institute of Company Secretaries of India. Mr. S. A. Gundecha was associated
with the company as the Company Secretary from 1981 to 2002 and has vide
experience in Finance, Taxation and Legal matters. Mr. S. A. Gundecha holds
directorships in Pinnacle Industries Limited, Dhanna Engineering Private
Limited and Tempo Finance (North) Private Limited. The Company received an
intimation in the prescribed form as per the provisions of the Companies
(Disqualification of Director Under Section 274(1 )(g) of the Companies Act,
1956) Rules, 2003 from him.
Company’s fixed
assets include Intangible assets, Freehold Land, Leasehold Land, Buildings,
Plant and Machinery, Equipments, Dies and Jigs, Electric Installations,
Furniture and Fixtures, Electric Fittings, Vehicles, Aircraft.
The company is in
trade terms with :
v
Caspro Metal
Industries Private Limited
v
Emdet
Engineers Private Limited
v
Ganesh Forge
Private Limited
v
Kaygee
Engineering Private Limited
v
Perfect
Pattern Works
v
Sheetal
Enterprises
v
Shah
Industries
v
Trishul
Forgings
v
Maruti
Products
v
Jay Industries
v
Maharashtra
Tyre and Rubber Industries
The company's fixed
assets of important value includes Freehold & Leasehold Land, Buildings,
Plant, Machinery and Equipments, Dies & Jigs, Electric Installation,
Furniture & Fixtures, Electric Fittings, Vehicles and Aircrafts.
AS
PER WEBSITE
History
Subject, A Firodia Enterprise, is a Company that has reinvented itself.
Four decades ago, Force Motors started production of the HANSEAT 3-Wheelers
in collaboration with Vidal & Sohn Tempo Werke Germany and went
on to establish a strong presence in the “Light Commercial Vehicles” (LCV)
field with the MATADOR. The proverbial LCV in India. Through the 80s and
90s, especially in the last 5 years with a major product development
effort, Force Motors has introduced new Light Commercial Vehicles, a new family
of Utility Vehicles, new state-of-the-art Tractors, and a new range of
Three-Wheelers.
Today Force Motors stands on the threshold of a new era in the
automobile industry in India, with a stake in Five Product segments :
TRACTORS - OX and Balwan - Modern Tractors , sporting synchromesh
transmission , Bosch hydraulics, excellent ergonomics and fuel efficient
engines. Designed for demanding farmers of developing countries.
THREE WHEELERS - Minidor . A family of new and beautifully engineered
three- wheelers - economical, rugged and environment friendly - very efficient
transport for people and goods.
LIGHT COMMERCIAL VEHICLES - Traveller and Excel range of passenger &
goods carriers. Powered by a family of DI and IDI engines including the
legendary Mercedes derived OM 616 engines. A range of high reliability
axles and transmissions add value.
MULTI UTILITY VEHICLES - Complete range of multi utility vehicles
including the Trax Judo, Trax GAMA, Trax Cruiser, Trax Kargo King, range of
single cabin and double cabin pickups. And the 4X4 cross country vehicle -
Trax Gurkha.
HEAVY COMMERCIAL VEHICLES - In technical collaboration with MAN AG,
Germany, Force Motors will be introducing shortly a range of heavy commercial
vehicles with a payload capacity ranging from 16 to 50 tonnes.
Five areas of excellence support the five market segments :
Research and Development - Using a 150 terminal CAD installation, and
modern testing facilities, staffed by 400 young engineers and technicians.
Production Engineering - Backed by a modern CAM Tool Room and run by 450
young and skilled engineers and staff.
Power Pack Manufacturing - State of the art facilities, for in house
manufacturing of engines and transmission components.
Vehicle Manufacturing - Complete, with in-house foundry, press shops,
robotised body welding, electrophoretic dip painting and high quality assembly
facilities.
Marketing Excellence - Strengthen organisational commitment to deliver
superior customer value through better quality products and higher
responsiveness to customer needs and aspirations.
Force Motors Today
A fully vertically integrated and complete automobile company - concentrating
on satisfying customer needs with high quality, high utility and high
technology products through product design, production engineering, hitech
manufacturing and innovative marketing.
Milestones and
Achievements
Late Shri N.K.Firodia, a dedicated Gandhian and Visionary Industrialist,
was the Founder-Managing Director of the company. Having participated in the
freedom struggle for India in 1932 and 1942, was determined to achieve
Industrial modernisation for India. He established, starting in 1950, in
Collaboration with Vidal & Sohn, Hamburg, Germany the import and later
progressive manufacture in India of the Tempo 3-Wheeler.
On 15th August 1957, the 10th anniversary of Indian independence, Mr.
N.K.Firodia signed a collaboration with Vidal & Sohn Tempo Werke GmbH for
phased manufacturing of TEMPO 3-WHEELER & manufacturing was started in a
small plant at Goregaon, Bombay. The initial licensed capacity granted by the
government was 1000 per year and 80 vehicles per month.
Expanding the business in 1961, the Company acquired about 150 acres of
land in Akurdi near Pune. The production was transferred to Pune by the end of
1964. Ambitious plans for producing Light Commercial Vehicles for the growing
industrial economy of India were drawn up. The manufacture of TEMPO VIKING
4-Wheeled Trucks & Vans commenced in November 1964. The licensed capacity
was increased to 6000 vehicles per year.
The VIKING vehicle subsequently was upgraded with a diesel engine and
the MATADOR was born. The production of Matador commenced in 1969. In 1975, the
manufacturing capacity of the company was increased to 12,000 vehicles per
year, in addition to 6,000 diesel engines for other purposes.
The collaborator company in Germany, in the wave of mergers during the
70 s merged eventually with Daimler-Benz. In July 1982, the company in a new
collaboration - with the then Daimler Benz - produced the Mercedes Benz OM 616
engine under license for fitting on its line of vehicles.
The TEMPO TRAX Vehicle, specifically designed for the rough roads of
rural India was developed by the Company's Research & Development
department, to cater to the growing mechanisation of passenger transport in
rural India.
To further modernise its LCV product range, the Company took up the
production of the TEMPO TRAVELLER, under licence from Daimler-Benz. A new Plant
was set up in 1987, on a greenfield site in Central India at Pithampur in
Madhya Pradesh. This modern facility was developed in close co-operation with
Daimler-Benz. The plant is equipped with a modern conveyorised body welding and
Electrophoretic dip painting shop. The Plant has been expanded to house a new
Press Shop in 1997.
In 1996, the company introduced a new range of Three Wheelers - MINIDOR
- pick up and auto rickshaw. These vehicles were completely designed in house
using its own modern Computer aided Design and Computer Aided Manufacturing
facilities
In 1997, the company conceived a technologically superior tractor, the
OX, as a diversification and the OX 45, a 45 HP tractor was introduced. The
tractor was designed using Transmission technology from ZF, Germany, technical
assistance for engine from AVL, Austria and hydraulics technology from Bosch. A
35 HP version of the tractor, the OX 35 was introduced in 1999. During 2002, 25
HP OX-25 was added to its range. The company launched Balwan range of tractors
in 2003.
In 1999, The EXCEL range of state of the art Light Commercial Vehicles
was introduced. These vehicles with their superb ergonomics and superior
aggregates represent the latest generation of LCV s in India that can carry
payloads upto 4 tonnes.
Continuing with the efforts to introduce new products, the company in
the year 2000 introduced two new - highly refined vehicles - specially designed
for the Indian market.- Trax JUDO and Trax GAMA. Trax JUDO, now with a Euro II
compliant engine, all metal body, excellent fit and finish is the All Rounder
multi utility vehicle, with both air conditioning and power steering as
standard options. Trax GAMA also features a full metal body and fine fit and
finish, with a most economical DI engine. The GAMA is thus the Ideal People
Carrier, for rural as well as urban transportation needs.
In the Year 2000, the Pithampur plant and its Mercedes Engine facilities
received the prestigious ISO 9002 certification for quality systems.
In year 2003 , the entire Akurdi plant and Pithampur Plant were
certified to ISO 9001 : 2000.
In 2004 , Engine Plant assembling Daimler Chrysler engines was certified
to TS 16949 : 2002 .
In a historic agreement with MAN – world leaders in engines and truck
technology, the company formed a new alliance in 2004. This alliance enables us
to produce trucks that have the latest technology and possess highly reliable
engines. The agreement also supports the achievements of global sourcing
targets and export potential for both companies.
In October 2004, the company took another momentous step by entering
into a comprehensive ‘Technological Agreement with ZF – the world leaders in transmission
technology. ZF has its production facilities spread across three continents.
This agreement enabled the company to acquire both product and process
technology.
The new “FORCE”
With new prospects and greater opportunities on the horizon, the company
realized that it was time to reinvent its identity. In its new avatar, the
company is now known as Force Motors Limited – A name that means many things.
It is not merely the product of mass and acceleration but also the way the
company conducts its business. Force is the power, the energy and the
enthusiasm with which the company undertakes all its projects. Keeping its
original values and core philosophy intact it now wears a proud new badge.
In 2005, the new range of Citiline buses was introduced. The Citiline is
available in two versions, Standard and School Bus versions. These buses built
on the tough and reliable ‘Excel chassis platform have fully tooled up bodies
and can seat 16 passengers.
Keeping in view the need to preserve the environment, all Force Motors
vehicles are powered by a range of environment friendly, rugged engines and
high quality transmissions.
Today s Force Motors is concentrating on customer satisfaction through
high quality, high utility and high technology products.
With new prospects and greater opportunities on the horizon, the company
realized that it was time to reinvent its identity. In its new avatar, the
company is now known as Force Motors Limited – A name that means many things.
It is not merely the product of mass and acceleration but also the way the
company conducts its business. Force is the power, the energy and the
enthusiasm with which the company undertakes all its projects. Keeping its
original values and core philosophy intact it now wears a proud new badge.
In 2005, the new range of Citiline buses was introduced. The Citiline is
available in two versions, Standard and School Bus versions. These buses built
on the tough and reliable ‘Excel chassis platform have fully tooled up bodies
and can seat 16 passengers.
Keeping in view the need to preserve the environment, all Force Motors
vehicles are powered by a range of environment friendly, rugged engines and
high quality transmissions.
Today s Force Motors is concentrating on customer satisfaction through
high quality, high utility and high technology products.
Press Release :
Man Truck wins the
NDTV Car and Bike “Truck of the year” -2007
The CLA 49.280
launched by Man Force Trucks, wins the “Truck of the year -2007”. The award was
received by the chairman of Man Force Trucks Mr. Abhay Firodia at glittering
ceremony attended by the who’s who of Automobile industry at the ITC Grand
Maratha Sheraton, Mumbai on the 12th of January 2007.
Continuing in the
tradition set by MAN, the Cargo Line Asia (CLA) has won this prestigious award
in the year o fits introduction in India. MAN is the only manufacturer oto win
the globally acclaimed “Truck of the year award” six times.
Man Trucks have always
stood for top performance in terms of reliability, payload and fuel
consumption. German Engineering at its best, Now in India.
Bajaj Tempo Officially becomes Force Motors
Our Bureau
Pune , May 12
THE Pune-based Bajaj Tempo has been renamed as Force Motors Ltd.
The Registrar of Companies, Maharashtra, has on Thursday issued the certificate for change of name from Bajaj Tempo Ltd to Force Motors Ltd. The new name comes into effect immediately.
Mr Abhay Firodia, Chairman and Managing Director, Force Motors, has said in a statement that though the directions to change the name were given by the Central Government under Section 22 of the Companies Act in February 2005 and members of the company approved the same in early April 2005, the implementation got delayed due to litigation initiated by a minority shareholder.
The request of the minority shareholder to stay the implementation of these directions was not accepted by the High Court.
Thus, the continuation of the process was allowed. But the petition filed by the said shareholder has been admitted. Mr Firodia said that Force Motors has aggressive expansion plans.
"Force is the dynamism with which we venture into the future of our business. Keeping our original values and core philosophy intact, we must now wear a proud new badge."
He said that the company plans to introduce a new range of medium and heavy commercial vehicles in collaboration with MAN Nutzfahrzeuge, a German manufacturer of diesel engines and heavy trucks.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The
Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.54 |
|
UK Pound |
1 |
Rs.84.46 |
|
Euro |
1 |
Rs.66.95 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
63 |
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 |
|