MIRA
INFORM REPORT
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Report Date : |
19.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
BOSCH LIMITED |
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Formerly Known As : |
MOTOR INDUSTRIES COMPANY LIMITED |
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Registered Office : |
Hosur Road, Post Box No 3000, Adugodi, Bangalore – 560030,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
12.11.1951 |
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Com. Reg. No.: |
08-761 |
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CIN No.: [Company
Identification No.] |
L85110KA1951PLC000761 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM01746D |
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Legal Form : |
Public limited liability company. The company’s shares are listed on the Stock Exchanges. Subject is a 56.99% subsidiary of Robert Bosch GmbH, Germany |
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Line of Business : |
Manufacturing and Marketing of pumps, Injectors, Nozzles, Starter motors, Spark plugs, Alternators, Blaupunkt car audio systems, Electric power tools, Special purpose machines, Packing machines, Automotive accessories and Bosch automotive products. Manufacturer of Automobile Equipment and Machinery |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 128100000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company is a part of Robert Bosch GmbH, Germany, a well-established and reputed multi-national industrial house. Subject is a well-established and reputed company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is good. Fundamentals of the company are strong and healthy. The Company has been making good progress in its performance. Payments are always correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Post Box No 3000, Hosur Road, Adugodi, Bangalore – 560030, Karnataka, India |
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Tel. No.: |
91-80-22992111 / 22220088 / 22992195 |
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Fax No.: |
91-80-22272728 |
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E-Mail : |
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Website : |
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Head Office : |
RMB Complex, Adugodi, Bangalore – 560030, Karnataka, India |
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Tel. No.: |
91-80-22999279 / 22992705 |
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Fax No.: |
91-80-22992758 |
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Mumbai Office : |
Crystal Building, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra |
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Tel. No.: |
91-22-24930452 / 24951831 |
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Fax No.: |
91-22-24973924 / 24982052 |
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Factory : |
Located at v Naganathapura Plant, P.B.No.6887, Electronic City Post Office, Bangalore – 560 100, Karnataka, India v Nashik, Maharashtra v Jaipur, Rajasthan v Naganathapura, Karnataka |
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Sales Office Located at : |
Located at : · Ahmedabad · Bangalore · Chandigarh · Guwahati · Jaipur · Mumbai · Pune · Secunderabad · Chennai · Ernakulam · Indore · Kolkata · New Delhi · Raipur · Ghaziabad |
DIRECTORS
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Name : |
Mr. H. Zimmerer |
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Designation : |
Chairman |
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Name : |
Dr. J. J. Irani |
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Designation : |
Director |
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Name : |
Mr. B. Steinruecke |
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Designation : |
Director |
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Date of Appointment : |
15.06.2005 |
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Name : |
Mr. B. Muthuraman |
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Designation : |
Director |
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Name : |
Dr. B. Bohr |
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Designation : |
Director |
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Name : |
Mrs. Renu. S. Karnad |
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Designation : |
Director |
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Name : |
Mr. D. S. Parekh |
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Designation : |
Director |
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Name : |
Dr. A. Hieronimus |
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Designation : |
Managing Director upto
31.01.08 |
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Name : |
Mr. M. Lakshminarayan |
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Designation : |
Joint Managing Director |
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Name : |
Mr. V. K. Viswanathan |
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Designation : |
Joint Managing Director upto 31.01.08 |
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Name : |
Mr. V. K. Bedi |
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Designation : |
Sales Manager |
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Name : |
Mr. Satish Kumar |
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Designation : |
Purchasing Manager |
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Name : |
Dr. Ferdinand
Allerkamp |
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Designation : |
Joint Managing
Director |
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Name : |
Dr. Manfred
Dürnholz |
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Designation : |
Joint Managing Director |
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Date of Appointment : |
01.02.2008 |
KEY EXECUTIVES
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Name : |
Mr. B. S. Iyer |
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Designation : |
Company Secretary |
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Committees : |
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Audit Committee : |
Mrs. Renu. S. Karnad, (Chairperson) |
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Shareholders’/Investors’ Grievance Committee : |
H. Zimmerer, Chairman (up to 31.12.07) B. Steinruecke, Chairman (from 01.02.08) Renu S. Karnad Dr. A. Hieronimus Dr. F. Allerkamp |
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Remuneration Committee : |
H. Zimmerer (up to 31.12.07) Dr. B. Bohr (from 01.01.08 to 31.01.08) Dr. A. Hieronimus (from 01.02.08) B. Muthuraman B. Steinruecke |
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Investment Committee : |
Renu S. Karnad B. Muthuraman Dr. A. Hieronimus (up to 31.01.08) Dr. F. Allerkamp Dr. Manfred Duernholz (from 01.02.08) |
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Property Committee :
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H. Zimmerer (up to 31.12.07) Dr. A. Hieronimus (from 01.02.08) Renu S. Karnad Dr. B. Bohr (from 01.01.08 to 31.01.08) M. Lakshminarayan Dr. F. Allerkamp |
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Share Transfer Committee : |
Dr. J. J. Irani Mr. B. Steinruecke (from 15.06.05) Dr. A. Hieronimus Mr. V. K. Viswanathan (upto 28.02.06) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.12.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Robert Bosch GmbH |
22349420 |
69.730 |
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Public Financial Institutions |
4357880 |
13.597 |
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Foreign Instructional Investors |
1409760 |
4.398 |
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Mutual Funds |
736676 |
2.298 |
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Nationalised Banks |
9212 |
0.029 |
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Body Corporates |
423106 |
1.320 |
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Foreign Nationals / NRIs / OCBs |
90046 |
0.281 |
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Public |
2675360 |
8.347 |
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Total |
32051460 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of pumps, Injectors, Nozzles, Starter motors, Spark plugs, Alternators, Blaupunkt car audio systems, Electric power tools, Special purpose machines, Packing machines, Automotive accessories and Bosch automotive products. Manufacturer of Automobile Equipment and Machinery. |
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Products : |
Item Code No. (ITC Code) 84.08 & 84.09 Product Description Fuel Injection Equipment & Components
Item Code No. (ITC Code) 85.08 Product Description Portable Electric Power Tools
Item Code No. (ITC Code) 85.11 Product Description Auto Electrical Items |
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Exports : |
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Countries : |
Bangladesh, Brazil, Germany, Malaysia, Philippines, Saudi
Arabia, Singapore, Thailand, U.A.E. and U.S.A |
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Imports : |
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Countries : |
Germany, Japan and U.S.A |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Fuel Injection Equipment |
Pcs. (‘000) |
3324 |
3057 |
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Spark Plugs |
Pcs. (‘000) |
20000 |
16913 |
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Auto Electricals |
Pcs. (‘000) |
1355 |
1289 |
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Portable Electric Power Tools |
Pcs. (‘000) |
241 |
195 |
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Nozzles and Nozzle Holders |
Pcs. (‘000) |
17595 |
16429 |
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Special Purpose Engines |
Nos. |
96 |
74 |
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Packaging Machines |
Nos. |
170 |
150 |
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Spares & Components |
Pcs. (‘000) |
19884 |
20262 |
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Tools, Gauges, Jigs & Fixtures |
Rs. Million |
213 |
217 |
GENERAL
INFORMATION
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No. of Employees : |
9856 |
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Bankers : |
· State Bank of India, Bangalore, Karnataka, India · Canara Bank, Bangalore, Karnataka, India · Citibank, N.A., Bangalore, Karnataka, India · Deutsche Bank AG, Bangalore, Karnataka, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse & Company Chartered Accountants |
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Address : |
5th Floor, Tower "D", The Millenia, 1
& 2 Murphy Road, Ulsoor, Bangalore 560 008 |
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Memberships : |
v Confederation of Indian Industry |
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Collaborators : |
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Parents Company : |
Robert Bosch GmbH, Germany |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
38051460 |
Equity Shares |
Rs.10/- each |
Rs.380.515 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
38051460 |
Equity Shares |
Rs.10/- each |
Rs. 380.515
Millions |
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Less: Equity Shares bought back |
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Rs. 60.000
Millions |
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Total |
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Rs. 320.515 Millions |
Notes:
a)
22,349,420(2006:19,406,260) Equity shares are held by Robert Bosch GmbH (Federal
Republic of Germany), the holding company.
b) Includes
3,469,558 shares of Rs.100 each allotted as bonus shares by capitalisation of
reserves and 48,000 shares of Rs.100 each allotted pursuant to a contract for
consideration other than cash.
c) 600,000 Equity
shares of Rs.100 each were bought back in the years 2000, 2001 and 2002 under
Section 77A of the Companies Act, 1956, and Securities Exchange Board of India
(Buy Back of Securities) Regulations, 1998.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
320.515 |
320.515 |
320.515 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
25313.552 |
20099.117 |
15207.756 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
25634.067 |
20419.632 |
15528.271 |
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LOAN FUNDS |
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1] Secured Loans |
123.748 |
157.150 |
179.993 |
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2] Unsecured Loans |
2327.206 |
1890.753 |
1508.220 |
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TOTAL BORROWING |
2450.954 |
2047.903 |
1688.213 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
28085.021 |
22467.535 |
17216.484 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4870.670 |
4488.084 |
3837.914 |
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Capital work-in-progress |
1583.194 |
927.355 |
884.473 |
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INVESTMENT |
10637.809 |
7267.921 |
5208.190 |
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DEFERREX TAX ASSETS |
1414.657 |
1548.000 |
1563.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
4846.778
|
5025.619
|
3768.542 |
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Sundry Debtors |
5862.033
|
5285.179
|
3776.914 |
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Cash & Bank Balances |
6790.640
|
6249.205
|
5831.043 |
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Other Current Assets |
13.356
|
20.029
|
10.952 |
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Loans & Advances |
3049.880
|
3019.798
|
2731.535 |
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Total
Current Assets |
20562.687
|
19599.830 |
16118.986 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7380.999
|
7904.931
|
6759.219 |
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Provisions |
3602.997
|
3458.724
|
3636.860 |
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Total
Current Liabilities |
10983.996
|
11363.655 |
10396.079 |
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Net Current Assets |
9578.691
|
8236.175
|
5722.907 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
28085.021 |
22467.535 |
17216.484 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
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Sales Turnover |
42796.321 |
37836.839 |
29774.827 |
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Other Income |
3780.755 |
2127.411 |
1747.449 |
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Total Income |
46577.076 |
39964.250 |
31522.276 |
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Profit/(Loss) Before Tax |
8559.631 |
6515.396 |
5290.063 |
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Provision for Taxation |
2467.572 |
1035.480 |
1859.360 |
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Profit/(Loss) After Tax |
6092.059 |
5479.916 |
3430.703 |
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Earnings in Foreign Currency : |
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Export Earnings |
6729.504 |
6269.620 |
4231.253 |
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Other Earnings |
493.339 |
517.797 |
415.072 |
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Total Earnings |
7222.843 |
6787.417 |
4646.325 |
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Imports : |
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Raw Materials |
3924.285 |
3450.722 |
2069.664 |
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Stores & Spares |
3451.624 |
4529.755 |
4001.647 |
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Capital Goods |
1802.938 |
2026.115 |
2559.465 |
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Total Imports |
9178.847 |
10006.592 |
8630.776 |
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Expenditures : |
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Materials |
22282.211 |
19253.143 |
15261.169 |
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Operating Expenses |
13388.746 |
11871.202 |
9396.123 |
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Depreciation & Amortization |
2539.078 |
2464.837 |
1980.855 |
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Expenditure transferred to Capital Accounts |
[192.590] |
[140.328] |
|
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Total Expenditure |
38017.445 |
33448.854 |
26638.147 |
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QUARTERLY RESULTS
|
PARTICULARS |
31.03.2007 |
30.06.2007 |
30.09.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
10933.600
|
10313.200
|
11070.200
|
12051.000
|
|
Other Income |
168.100
|
370.100
|
1348.500
|
285.500
|
|
Total Income |
11101.700
|
10683.300
|
12418.700
|
12336.500
|
|
Total Expenditure |
8451.600
|
8368.400
|
9945.500
|
9719.200
|
|
Operating Profit |
2650.100
|
2314.900
|
2473.200
|
2617.300
|
|
Interest |
-221.500
|
-213.900
|
-204.100
|
-223.300
|
|
Gross Profit |
2871.600
|
2528.800
|
2677.300
|
2840.600
|
|
Depreciation |
537.800
|
582.400
|
963.900
|
525.900
|
|
Tax |
743.300
|
672.900
|
92.500
|
759.500
|
|
Reported PAT |
1642.500
|
1367.500
|
1244.100
|
1617.200
|
KEY RATIOS
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
Debt-Equity Ratio |
0.10 |
0.10 |
0.11 |
|
Long Term Debt-Equity Ratio |
0.09 |
0.09 |
0.10 |
|
Current Ratio |
1.92 |
1.77 |
1.69 |
|
Fixed Assets |
2.14 |
2.13 |
1.98 |
|
Inventory |
9.64 |
9.53 |
9.95 |
|
Debtors |
8.54 |
9.25 |
11.12 |
|
Interest Cover Ratio |
229.26 |
101.37 |
40.01 |
|
Operating Profit Margin(%) |
23.41 |
21.39 |
22.51 |
|
Profit Before Interest And Tax
Margin(%) |
18.07 |
15.51 |
16.49 |
|
Cash Profit Margin(%) |
18.14 |
16.49 |
16.45 |
|
Adjusted Net Profit Margin(%) |
12.80 |
10.61 |
10.43 |
|
Return On Capital Employed(%) |
34.01 |
32.75 |
34.74 |
|
Return On Net Worth(%) |
26.46 |
24.73 |
24.45 |
LOCAL AGENCY
FURTHER INFORMATION
History
Motor Industries Company Limited (MICO), incorporated in
1951 as a subsidiary of Robert Bosch AG, Germany is India's largest
auto-ancillary company. This ISO 9001 certified company which was initially
incorporated to manufacture spark plugs for petrol engines and fuel injection
equipment for diesel engines the company produces wide ranges of auto ancillary
products which includes delivery valve nozzles, nozzle holders, filters, filter
inserts, glow plugs, glow indicators, glow resistors, starter motors, etc. It
is one of the world largest manufacturer of diesel fuel injection equipment.
It is also dealing in industrial equipment, auto-electrical, gear pumps for
tractor applications, electric power tools, packaging machines, security
technology products and Blaupunkt car multimedia systems. Robert Bosch,
Germany, holds a majority 56.99% stake in the company. The company is having 4
plants in the country, including two in Bangalore, one in Jaipur and Nashik.
All four plants are TS 16949 and ISO 14001 certified. MICO Trading Private
Limited is a subisidiary of MICO.
In 1985, MICO introduced the bi-metal electrode spark plug for petrol engines.
It also took steps to develop a manufacturing programme to produce 59,500
multi-cylinder fuel injection pumps. The company diversified into starter
motors and alternators. It set up the Bosch Global Development Centre to design
and develop small single-cylinder pumps for the entire Bosch group. MICO has
launched products like fog lamps, halogen lamps, stop lamps, tail lamps and
horns. The company has designed and developed fuel injection systems with
emphasis on reduction in both emission and fuel consumption.
The company has expanded its product mix in India with an investment of about
Rs 5000 Millions. The company had set up a manufacturing base for fuel
injection equipment with an investment of over Rs 2000 Millions. The Government
of Karnataka has extended a package of incentive for the proposed
expansion/diversification project.
It entered into a MOU with the Rajasthan Govt. to set up facilities near Jaipur
to manufacture auto ancillaries/components including fuel injection equipment.
The Jaipur plant was inaugrated and the civil work for the Application
Development Center is nearing completion. For the ninth year in succession the
MICO Vocational Center at Bangalore was adjudged the best establishment in the
All India Skills Competition. It intorduced three contemporary models of Car
Audio Systems belonging to Blaupunkt 99 range.
MICO made a buyback of shares in February 2002 of 200,000 equity shares of
Rs.2500 per share. It had concluded the first tranche of share buyback in May
2000 at Rs 4,200 per share. In Nov.'2000, it obtained approval to buy back
another two lakh shares, representing 5.55% of its capital at Rs 3,800 per
share. The company has drawn up a total outlay of Rs 760 Millions for the
buyback, to be financed out of the free reserves.
With a view to intensifying customer orientation, a new initiative called BeQIK
has been introduced as in Bosch. BeQIK is the Bosch global guiding principle
providing the overall vision for change within Bosch worldwide.
During 2001-02 the Nashik Plant successfully commissioned the shifting of
production facilities from Robert Bosch in Brazil,Turkey & France for the
manufacture of Nozzles and Nozzle Holder Assemblies. To cater to the Indian
market, 'Terra-25' a vertical form,fill and seal machine was introduced by
Packaging Machinery division. The Mobile Communication Division has launched
'Velocity' range of car audio accessories such as speakers, woofers & MP3
players.
During July 2004 the company sub-divided its equity share face value from
Rs.100/- per share to Rs.10/- per share. In August 2004 Bosch has announced
plans of its group companies to invest about Rs.10000 million in India over the
next 4 years. As part of this investment will be directed towards the
introduction of the Common Rail Diesel Injection systems. The first Common Rail
System is expected to roll out in early 2006.
The company acquired from Robert Bosch India Limited, the business activities
relating to Petrol Injection Systems with effect from 1st January 2005.
In June 2005, the BOSCH Group and MANN+HUMMEL GmbH signed an agreement to
establish a joint venture in India. In January, 2006, Mico invested Rs.25
Million being 25% in the equity capital of MHB Filter India Private Limited,
:50:50 joint venture by the two promoters for the manufacture of filter
elements/spin-on-filters and complete fuel filter systems for the filtration of
air/gases and liquids in Automotive Applications and Industrial
Applications.
Net sales for the year 2007 grew by 13%. The Profit Before Tax (PBT) for the
year as percentage of net sales was at 20% in 2007 as compared to 21.1% in
2006. The Profit After Tax as percentage of net sales was 14.2% in 2007 as
against 14.5% in 2006.
In addition to the sales, interest income and other income contributed
significantly to the overall income growth of 16.5%.
Material costs as a percentage to sales increased to 52.1% as compared to 50.9%
in 2006. The staff costs grew to 11.2% of sales as compared to 10.4% in 2006.
Operating expenses (excluding staff costs) decreased to 19.6% from 20.6% of
sales in 2006. The depreciation for the year decreased to 5.9% from 6.5% of
sales in 2006.
Overall, in terms of Profit before interest, Depreciation and Taxes, the result
for the year shows an increase of 40/0 over the previous year.
Business
Situation:
The year 2007 saw a stabilization of the buoyancy in the Indian economy
experienced in 2005 and 2006. In the second half of 2007 the overall economic
upbeat declined indicating possible oncoming structural adjustments in the
economy.
The Indian automotive market had a mixed performance in
2007. The high growth seen in the later half of 2006 was not sustained in 2007.
Interest rates hikes to contain inflationary pressure contributed to the
decline in growth rates, especially in the commercial vehicles and two wheeler
markets, which are sensitive to interest rates.
Sales of Medium and Heavy Commercial Vehicles were mainly
affected and the year ended with only a marginal growth of 4% compared to 2006.
The increasing spread of the hub and spoke model for logistics in the big
cities and the retail boom resulted in double digit growth for the Light
Commercial Vehicle (LCV) segment.
The sale of passenger vehicles continued to grow impressively despite the
interest rate hike, aided by increasing disposable incomes of households and
new model launches. Increasing awareness of the benefits of the clean, quiet
and economical Common Rail System amongst the Indian consumers continue to
drive the trend for diesel cars.
The tractor market saw flat sales during 2007 due to reduced finance availability
and the hike in interest rates. The 3-wheeler segment saw negative growth as
more and more goods carriers moved from 3-wheelers to 4-wheeler LCVs. The
2-wheeler segment too saw negative growth, caused by the interest rate
hikes.
Strong investment in infrastructure, construction and the retail sector
contributed to a robust growth of their industrial and Consumer goods
businesses.
Names of companies/firms in which Directors of the Company held office
as Director are given below:
Dr. B. Bohr
- Robert Bosch
GmbH, Germany (Member of the Board)
Dr. A. Hieronimus
- Robert Bosch
India Limited (Chairman) (up to
31.01.08)
- Bosch Chassis
Systems India Limited (up to
31.01.08)
- MICO Trading
Private Limited (up to 31.01.08)
- MindTree
Consulting Limited
- Bosch Rexroth
(India) Limited (up to 31.01.08)
- Bosch Rexroth
AG (Chairman of the
- Management
Board) (from 01.02.08)
Mr. M. Lakshminarayan
- MICO Trading
Private Limited
- Pricol
Limited
- Confederation
of Indian Industry (Member-Southern Region)
- Indian Machine
Tool Manufacturers Association
(Member-Executive Committee)
Dr. F. Allerkamp
- Robert Bosch
India Limited
- Bosch Chassis
Systems India Limited
- KBX Motorbike
Products Private Limited
- Automotive
Component Manufacturers
- Association of
India (Member-Executive Committee)
Mr. B. Steinruecke
- Indo German
Chamber of Commerce (Director General)
- FAG Bearings
India Limited
- Zodiac
Clothing Company Limited
Mr. B. Muthuraman
- Tata Steel
Limited (Managing Director)
- Natsteel Asia
Pte Limited , Singapore (Chairman)
- Tata Steel
(Thailand) Public Co. Limited , Bangkok (Chairman)
- TM
International Logistics Limited
(Chairman)
- The Tinplate
Company of India Limited
(Chairman)
- Tata
Incorporated, New York
- Corus Group
Pic
- Tata Steel UK
Limited
- Tulip UK
Holdings No.l Limited
- Tulip UK
Holdings No.2 Limited
- Tulip UK
Holdings No.3 Ltd
- Tata
International Limited
- Tata
Industries Limited , Mumbai
- International
Iron & Steel Institute, Brussels, (Director)
- CEDEP
(European Centre of Executive
- Development),
France (Director)
- UN Global
Compact Board (Member)
- National
Institute of Technology, Jamshedpur
(Chairman)
- Xavier Labour
Relations Institute, Jamshedpur
(Chairman, Board of Governors)
- Indian
Institute of Technology, Kharagpur, (Member, Board of Governors)
Mrs. Renu S. Karnad
- Credit
Information Bureau (India) Limited
- GRUH Finance
Limited
- Housing
Development Finance Corporation Limited
- HDFC Asset
Management Co. Limited
- HDFC Bank
Limited
- HDFC Chubb
General Insurance Co. Limited
- HDFC Property
Ventures Limited
- HDFC Realty
Limited
- HDFC Standard
Life Insurance Co. Limited
- HDFC Venture
Capital Limited (Chairperson)
- ICI India
Limited
- Indraprastha
Medical Corporation Limited
- Sparsh BPO
Services Limited
- Home Loan
Services India Pvt. Limited
- • Feedback
Ventures Private Limited
- Mother Dairy
Fruit and Vegetables Pvt. Limited
- • Ascendas
Pte Limited , Singapore
- • Egyptian
Housing Finance Company, S.A.E.
Mr. V. K.
Viswanathan [From 01.11.2007]
- Robert Bosch
India Limited (from 01.02.08)
- Bosch Chassis
Systems India Limited (from
01.02.08)
- MICO Trading
Private Limited (from 07.01.08)
- Bosch Rexroth
(India) Limited (from 01.02.08)
Dr. A. Hieronimus,
Dr. F. Allerkamp and Mr. B. Steinruecke are liable to retire by rotation and
offer themselves for re-election. Dr. A. Hieronimus, 60, holds a Diploma in
Mathematics from the University of Cologne. He received a Doctorate in Business
Administration also from the same University.
Dr. Hieronimus
started his career as an Academic Assistant in the University of Cologne,
Germany. He joined Mannesmann AG in 1979 and held senior positions responsible
for materials management, sales and operation planning, head of department of
sales and marketing, head of the department of corporate planning in the
Mannesmann group companies in Germany. In 1990, he became a Member of the
Management Board of Mannesmann Demag
Baumaschinen GmbH and later of the Board of Management in Mannesmann Rexroth GmbH.
From 1997 to April 2001, he was Member of Executive Board of
Mannesmann Rexroth AG, Germany and continued in that position till August 2003,
up on the takeover of Rexroth AG by Robert Bosch GmbH.
Dr. F. Allerkamp, 54, holds a degree in Business Administration from
Westfdlische WilhelmsUniversitcit, Munster and a Doctorate in Political
Science. In 1978, he started his career as a teaching assistant in Westfdlische
Wilhelms-Universitat, Munster. In 1983, he joined the controlling division of
Blaupunkt-Werke GmbH, Hildesheim. In 1989, he moved to Head the Department of
Accounting and Finance in Robert Bosch Sdn. Bhd., Malaysia and then became the
Managing Director Commercial, responsible for Finance, Administration,
Purchasing and Logistics. In 1993, he became the Senior Administrative Officer
in the Corporate Administration and Finance Department of Robert Bosch GmbH,
Stuttgart with management responsibility for Gasoline Systems' and `Diesel
Systems' divisions. He then moved over to Robert Bosch GmbH, Blaichach, Germany
as Plant Manager Controlling.
From 2002, he was Senior Vice President, Project Management SAP, responsible
for the introduction of new standardized SAP software at all sites belonging to
the Automotive Equipment Division of Robert Bosch GmbH throughout Europe.
Mr. B. Steinruecke, 52, studied Law and Economics in Vienna, Bonn, Geneva and
Heidelberg. He has a law degree from the University of Heidelberg and passed
the Bar Examination of the High Court of Hamburg. He worked with Coopers and
Lybrand, Hamburg before joining Deutsche Bank in 1984 and rose to become General
Manager of the Mumbai Branch and Joint Chief Executive Officer of Bank's
operations in India. Later, he became the Managing Partner and Speaker of the
Board of the ABC Privatkunden-Bank, Berlin. In July 2003, he became the
Director General of Indo-German Chamber of Commerce.
Mr. Steinruecke is an Independent Director of the Company, Chairman of
Shareholder's/Investors' Grievance Committee, member of Audit Committee,
Remuneration Committee and the Share Transfer Committee of the Board.
Management Discussion and Analysis Report:
Industry Structure and Development:
The Indian Economy continues to maintain its strong growth. After
posting an impressive pace of 9% in average GDP growth rate in the previous four
years, the economy is expected to increase overall by 8.7% in 2007-08. Industrial sector growth is expected to
moderate slightly from 10.9% in 2006-07 to about 9% in 2007-08, while service
sector growth continues to be robust at about 10.7%. The agriculture sector is
expected to grow only by around 2.6% in 2007-08 compared to about 3.8% in the
previous year due mainly to weather induced fluctuations.
The Indian Automotive market exhibited a mixed trend in 2007 with the effect of
increasing interest rate slowing growth. The commercial vehicle segment grew by
11% against the growth of 28% in 2006, with significant decline in the growth
rates witnessed in the second half of the year mainly in the HCV segment.
However, the growth in the LCV segment was robust through out the year mainly
on account of the increasing spread of the hub and spoke model and the strong
growth of the retail industry.
Sales of passenger vehicles increased by 16% on the back of
increasing disposable income and the launch of various new models by car
majors, coupled with lucrative discounts offered by car makers. Subsequent to
the introduction of diesel engines fitted with common rail systems, the
popularity of diesel vehicles is growing. Diesel engines with Common Rail
Systems have proved to be more fuel efficient, better performing and
quieter.
The Tractor segment has shown a flat growth after an impressive
growth of 26% in 2006 mainly due to increase in interest rates. The 3 and 2
wheeler markets have also reported declining growth due to the same reason and
also due to shift in the customer preference to 4 wheeler automobiles.
Operations:
The following are some of the highlights of the company for the year
2007:
* The Company witnessed an overall growth of 13% in sales during
the year in spite of low growth witnessed in commercial vehicles in the second
half of 2007. The business sector wise sales performance of the Company has
been highlighted in the Director's report.
* The Company continued its investment program of setting up new
manufacturing lines mainly for Common Rail Systems, with an investment during
the year of about INR 3,600 Million. Thus the total investment made in the last
four years is around INR 12,500 Million.
* During the year the Company commenced its first in-house
assembly of Common Rail Injectors at its Nashik plant.
* The Packaging machinery business was relocated from Bangalore to
Goa to focus on the pharma business. The year 2007 saw the Power Tool division
of the company setting up its in-house facility for manufacturing motors.
* The Deployment of Business Excellence based on the European EFQM
model gained a further momentum across the company with the Bangalore plant
being awarded 'Commendation for Significant achievement' from Confederation of
Indian Industry (CII). The Company received the ACMA Gold Award for
manufacturing excellence.
Financial
Performance:
The company has reported a sales growth of 13% in 2007. The Profit
before Other Items and Tax has improved to 20% of sales from the previous year
of 17.2% inspite of an increase in input prices primarily due to mix change and
increase in personnel costs. This has been achieved through higher productivity
and increased returns on the treasury operations. For the year the company has
achieved a PAT of 14.2% as compared to 14.5% for 2006. PAT of 2006 includes
profit from sale of property at Chennai. If they exclude this one time
exceptional item the PAT for 2006 is at 11.7%.
The company's focus on localization has helped in bringing down
the year end inventory coverage to 46 days from 50 days in 2006. This is in
spite of the need for higher inventory requirement due to increasing
types/variants of finished and traded goods.
With an increased proportion of sales to OEMs in the total sales,
the receivables coverage has increased from 40 days in 2006 to 46 days in 2007.
The reason is that the average credit period for OEMs is longer than for
customers in other segments.
After investing over INR 3,200 Million in 2006, the Company
invested around INR 3,600 Million in 2007.
41% of the investments made in 2007 was in their Bangalore location mainly for
manufacturing of Common Rail Pumps, strengthening Quality and Development
areas. At Jaipur location investments were made mainly for expansion of existing
manufacturing facility of VE pumps. Significant investments were made at Nashik
location (41%) for manufacturing of Common Rail Injectors. An amount of INR 19
Million was spent for setting up new manufacturing facility at Verna (Goa) for
Packaging Machineries.
Segment-Wise
Analysis:
The proportion of the Industrial Technology (UBI) and
Consumer Goods and building technology (UBG) businesses increased from 8.1% in
2006 to 9.6% in 2007, with the Power Tools business growing by 25%, Security
Systems by 34% and Packaging Machinery by over 17%.
In the Secondary segment, the share of exports has marginally declined from
16.6% in 2006 to 15.7% in 2007 mainly due to the negative effect of Rupee
appreciation.
Outlook:
The growth
of the Indian Automotive Market over the long term looks positive. However, the
immediate outlook is uncertain considering higher interest rates and increasing
crude oil prices and these will have to be closely monitored for any negative
fallout. There are substantial investments planned by the OEMs in the coming
years to increase capacity and introduce new models. OEMs are planning to make
India a hub for small cars both for local consumption and for the export
markets. It is pertinent to mention here that the Union Budget for 2008 has
reduced the excise duty on small cars from 16% to 12%, to give a further
incentive to the small car segment. This is also a focus area of the
government's automotive mission plan 2016 which looks at increasing the share
of the automotive industry to nearly 10% of the GDP from the current around 5%.
A new segment is being created in the Indian automotive market the low price
vehicle segment which is expected to see strong growth in the coming years. In
order to give a boost to the manufacturing sector the Union Budget for 2008 has
reduced the excise duty for most of the products including auto components from
16% to 14%, thereby giving a fillip to the overall automotive market.
The construction sector is booming and is also attracting
significant direct foreign investment. Infrastructure growth continues with
strong investments in roads, airports, ports, railways and metro rail.
Opportunities:
With a
strong technological base and a wide product range, their Company is well
positioned to take advantage of the buoyancy in the economy. Their strong local
competencies in engineering and manufacturing enables them to provide solutions
for the low price vehicle segment. The BS4 emission legislation expected in
2010 and the growing acceptance of diesel in the passenger car segment is
expected to increase demand for common rail systems. The company is investing
in its manufacturing facilities to meet this demand.
With the strong investments expected in the infrastructure, construction
and retail sectors, the growth momentum in their businesses of power tools,
security systems and packaging machinery is expected to continue.
Risks and
Concerns:
High interest rates and increasing crude oil prices remain a
matter of concern for the Indian automotive industry in the short term. The
company will be operating in a highly competitive market in view of change in
the product mix of the company with introduction of new products like Common
Rail Systems, gasoline engine management systems and compact alternators and
starters, the Company will be operating in a highly competitive market.
Apart from intensified competition which puts pressure on the
sales prices, increasing input costs may also affect the profitability of the
company. In view of the continuing high investments made by the company any
delay in customer projects can adversely affect the utilization of their
resources.
The company will also observe high cost pressures for products in
the low price vehicle segment. While they have the first mover advantage in
this segment, their competitors are also expected to aggressively pursue
projects in the low price vehicle segment. Changes in the emission legislation
and pricing of diesel fuel can have an adverse impact on their business considering
their high investments in diesel business. The strong growth of the Indian
economy is offering alternative opportunities and therefore, recruitment and
retention of skilled manpower remains a matter of concern.
A few of the management initiatives taken to offset the risks:
- Focus on
developing engineering competencies and infrastructure in new products
lines.
- Cost reduction and import substitution projects.
- Continuous improvement activities and implementing lean practices through the
Bosch Production System (BPS).
- Redesign of HR policies and practices to attract, retain and motivate
employees.
The company is in trade terms with :
· Abhishek Alloys Private Limited
· Accurate Engineering Private Limited
· Control Infotech Limited
· Kanthi Precision Private Limited
· Prasa Tools Private Limited
· Klass Engineering Private Limited
· Pragati Machine Tools Corporation
· Chemoleums Private Limited
· Race Technologies Private Limited
· Riviera Packers Private Limited
· Gole Precision Tools Private Limited
· Fastener Manufacturers Private Limited
· Mukund Industries
· Karnataka Electronics
· Jaycee Industries
· R. B. Associates Private Limited
· TA Hydraulics Private Limited
· Bhat Metal Research Private Limited
· Finetech Engineering
The company’s fixed assets of important value include Freehold & Leasehold Land, Buildings, Plant & Machinery, Furniture & Equipments and Motor Vehicles.
|
Contingent liabilities: |
As on 31.03.2007 Rs in Millions |
|
Claims against
the Company not acknowledged as debts: |
|
|
Excise / Customs |
|
|
Net of tax |
0.232 |
|
Gross |
0.352 |
|
Service Tax |
|
|
Net of tax |
3.151 |
|
Gross |
4.774 |
As per website
The Bosch Group is
one of the world’s biggest private industrial corporations. Headquartered in Stuttgart,
Germany, the Bosch Group has approx. 261,300 employees worldwide, and generated
annual sales revenue of 43.7 billion euros in 2006.
In India, the Bosch
Group has about 15,817 employees, and in business year 2006 achieved total
consolidated sales of Rs 50,087 million.
Bosch has grown
phenomenally in India, way back since 1922 when the Illies Company established
a Bosch agency in the then British India. The founding of Bosch Limited in
1951 spurred off an accelerated growth in the automotive segment which has not
stopped till date. Bosch has a strong and voracious presence in the country
today at numerous locations in diverse industry segments - both automotive and
non-automotive.
In India, the Bosch Group
is comprised of the following companies -
- Bosch Limited (formerly ‘Motor
Industries Company Limited)
- Robert Bosch Engineering and Business
Solutions Limited
- Bosch Chassis Systems India Limited
- Bosch Rexroth India Limited
Subject is the
flagship of the Bosch Group subsidiaries in India. Founded in 1951, the company
has emerged to become India’s largest auto component manufacturer and a leading
exporter. It is the largest manufacturer of diesel fuel injection equipment in
the country.
Subject employs
about 10,033 associates, and in business year 2006 generated net sales of
Rs 37,837 million with good growth in both automotive as well as the
non-automotive businesses.
Subject has presence
across all the three major business sectors of Bosch - Automotive Technology,
Industrial Technology, Consumer Goods and Building Technology. Diverse business
areas include common rail injectors and components, diesel fuel injection
equipment, industrial equipment, auto-electricals, hydraulics, electric power tools,
packaging machines, security systems and Blaupunkt car audio systems.
The nationwide
network of automotive aftermarket services spans across 1000 towns with over
4,000 authorized representations.
Corporate office is
located at Bangalore, India; with state-of-the-art ISO and TS 16949 certified
manufacturing plants at Bangalore, Naganathapura (near Bangalore), Nashik and
Jaipur. Of these, the Nashik and Naganathapura Plants are export oriented
units.
Export Orient Unit
Subject has advanced
ISO certified manufacturing plants at Bangalore, Naganathpura (near Bangalore),
Nashik and Jaipur. Of these Naganathapura and Nashik plants also house Export
Oriented units
Corporate
Notices
Source:
NSE - Motor
Industries Company Limited has informed the Exchange vide its letter dated
January 18, 2008 that: "We have today received electronic confirmation
from Registrar of Companies(ROC), Karnataka approving the change of name of the
company to Bosch Limited." Date:
2008-01-19
Source:
BSE -
Motor Industries Company Limited (MICO) has informed BSE that on January 18,
2008 the Company has received electronic confirmation from Registrar of
Companies (ROC), Karnataka approving change of name of the Company to
"Bosch Limited".
Date: 2008-01-18
Source:
NSE -
Motor Industries Company Limited has informed the Exchange that shareholders at
the Extraordinary General Meeting of the company held on January 07, 2008
approved:(1) The Change of name of the Company from "Motor Industries
Company Limited" to "Bosch Limited", subject to necessary
government approval; (2) The appointment of Mr.V.K. Viswanathan as Director of
the Company; (3) The appointment of Dr.Manfred Duernholz as Director of the Company;(4)
The appointment of Mr.V.K. Viswanathan as Joint Managing Director of the
Company from 01.11.07 to 31.01.08 and as Managing Director of the Company from
01.02.08 and the payment of remuneration to him; (5) The extension of the term
of Mr. M. Lakshminarayan, Joint Managing Director for the period from 01.07.08
up to 31.12.08;(6) The appointment of Dr. Manfred Duernholz as Joint Managing
Director of the Company from 01.02.08 to 31.12.11 and the payment of
remuneration to him;(7) Payment of service award to Mr. M. Lakshminarayan,
Joint Managing Director of the Company; (8) Revision in the remuneration and
perquisites of Dr. F.Allerkamp, Joint Managing Director with effect from
01.05.06. Date: 2008-01-07
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. 42.90 |
|
UK Pound |
1 |
Rs. 83.74 |
|
Euro |
1 |
Rs. 66.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|