MIRA INFORM
REPORT
|
Report
Date : |
21.06.2008 |
IDENTIFICATION DETAILS
|
Name : |
AMARA RAJA BATTERIES LIMITED |
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Registered
Office : |
Renigunta
– Cuddapah Road, Karakambadi, Tirupati – 571520, Andhra Pradesh |
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Country
: |
India |
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Financials
(as on) : |
31.03.2007 |
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Date
of Incorporation : |
13.02.1985 |
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Com.
Reg. No. : |
01-5305 |
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CIN
No. : [Company
Identification No.] |
L31402AP1985PLC005305 |
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TAN
No. : (Tax
Deduction & Collection Account No.) |
HYDA02631G |
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Legal
Form : |
Public Limited Liability Company. The company's shares are
listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturer of industrial and automotive batteries |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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
12000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well established company having fine track.
Trade relations are fair. Financial position is good. Payments are reported
as correct and as per commitments. The company is doing well. It can be considered good for
any normal business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office / Factory : |
Renigunta
– Cuddapah Road, Karakambadi - 571 520, Tirupati, Andhra Pradesh, India |
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Tel.
No.: |
91-877-2285561 |
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Fax
No.: |
91-877-2285600/2285560 |
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E-Mail
: |
amararaja@amartpt.gnmds.global.net.in
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Website
: |
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Corporate
Office : |
Riaz Garden,
# 12, K.H. Road Nungambakkam Chennai-600 034, Tamil Nadu, India |
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Tel.
No.: |
91-44 821
3270 |
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Fax
No.: |
91-44 828
4821 |
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Branches
: |
Central Marketing Office & Central Customer Support
Centre
Begumpet High
Road, Hyderabad - 500 016, Andhra Pradesh Telephone
No : 91 - 40 - 2776 3353 Fax No :
91 - 40 - 2776 3354 E Mail : cmo.amararaja@gnhyd.globalnet.ems.vsnl.net.in Other Marketing Offices & Customer Support Centres
No. 85, 5th
Main, 1st Cross, Domlur, II Stage, Bangalore - 560071, Karnataka Telephone
No : 91 - 80 - 2529 6116 / 2529 6395 Fax No :
91 - 80 - 25276899 E Mail : blr.amararaja@gnblr.globalnet.ems.vsnl.net.in 116 B, 2nd
Floor, Ujjala Cinema Building, S P Mukherjee Road, Kolkata - 700 026, West
Bengal Telephone
No : 91 - 33 - 2455 3422 / 2455 5641 Fax No :
91 - 33 - 2455 3422 E Mail : cal.amaraja@gncal.globalnet.ems.vsnl.net.in
8th
Floor, Wing B, Gemini Parsn Manere, 602, Mount Road, Chennai - 600 006,
Tamilnadu Telephone
No : 91 - 44 - 2823 5523 / 2822 5910 Fax No. :
91 - 44 - 2825 3606 E Mail: mds.amararaja@gnmds.globalnet.ems.vsnl.net.in Suite No
203, 2nd Floor, L B Bhavan, 6-3-550, Somajiguda, Hyderabad - 500
082, Andhra Pradesh Telephone
No : 91 - 40 – 2332 8688 Fax No :
91 - 40 – 2332 8688 E Mail : cmo.amararaja@gnhyd.globalnet.ems.vsnl.net.in 11, Happy
Home, CHS, Nehru Road, Vile Parle (E), Mumbai - 400 057, Maharashtra Telephone
No : 91 - 22 - 2619 1129 /2610 2452 Fax No:
91 - 22 - 2616 1841 E Mail: bom.amararaja@gnbom.globalnet.ems.vsnl.net.in 1st
Floor, A-1/263, Safdarjung Enclave, New Delhi - 110 029 Telephone
No : 91 - 11 - 2617 6184 / 2617 7379 Fax No:
91 - 11 – 2618 6128 |
DIRECTORS
|
Name : |
Mr.
Ramachandra N. Galla |
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Designation
: |
Non
Executive Chairman |
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|
Name : |
Mr.
Jaydev Galla |
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Designation
: |
Managing Director and Chief Executive Officer |
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Name : |
Mr. Mark
L. Kochzela |
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Designation
: |
Alternate Director of Ms. Manjula Chawla |
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Name : |
Dr.
Upendranath Nimmagadda |
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Designation
: |
Alternate Director of Mr. V R Rao |
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Name : |
Ms. Amara
Kumari Galla |
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Designation
: |
Director |
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Name : |
Mr. P.
Lakshmana Rao |
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Designation
: |
Director |
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Name : |
Mr.
Raymond J. Brown |
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Designation
: |
Director |
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Name : |
Mr. John
P. Kennedy |
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Designation
: |
Director |
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Name : |
Mr. John
D. Major |
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Designation
: |
Director |
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Name : |
Mr. Ravi
Bhamidipati |
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Designation
: |
Director |
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Name : |
Mr.
Staven Gibbs |
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Designation
: |
Director |
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Name : |
Mr. P.
Lakshmana Rao |
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Designation
: |
Director |
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Name : |
Mr.
Nagarjun Valluripalli |
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Designation
: |
Director |
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Name : |
Ms.
Manjula Chawla |
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Designation
: |
Alternate
Director to John D. Major |
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Name : |
Mr.
Kejian Lu |
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Designation
: |
Alternate
Director to Raymond J. Brown [With effect from 7th April, 2006] |
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|
Name : |
Mr. G
Ramadevi |
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Designation
: |
Director |
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|
Name : |
Mr. Shu Q
Yang |
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Designation
: |
Director |
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|
Name : |
Mr. Frank
E Kraick |
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Designation
: |
Director |
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|
Name : |
Mr. Rohit
Kochhar |
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Designation
: |
Alternate
Director |
KEY EXECUTIVES
|
Name : |
Mr. Gopal Mahadevan |
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Designation
: |
Chief Financial Officer |
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Name : |
Mr. N. RamNathan |
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Designation
: |
Company Secretary |
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Name : |
Mr. Narendra Reddy |
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Designation
: |
Executive Vice President |
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Name : |
Mr. Satish Rajagopalan |
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Designation
: |
Senior Manager – International Business |
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Name : |
Mr. Challapathi |
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Designation
: |
Senior Purchase Manager |
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|
Name : |
Mr. Venkat Madhav |
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Designation
: |
Purchase Manager |
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Name : |
Mr. Ramana Prasad |
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Designation
: |
Sales Manager |
MAJOR SHAREHOLDERS
As pm 31.03.2008
|
Names of Shareholders |
No. of
Shares |
Percentage
of Holding |
|
Shareholding of Promoter and Promoter Group |
|
|
|
Indian |
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|
|
Individuals/
Hindu Undivided Family |
10658020 |
18.7188 |
|
Bodies
Corporate |
1038500 |
1.8239 |
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Foreign |
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|
Bodies
Corporate |
14803750 |
26.0000 |
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Any Other
(DIRECTORS/RELATIVE NRI) |
3142215 |
5.5187 |
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Public shareholding |
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Institutions |
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Mutual
Funds/ UTI |
6509781 |
11.4332 |
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Financial
Institutions/ Banks |
3550 |
0.0062 |
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Foreign
Institutional Investors |
2100112 |
3.6884 |
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Non-institutions |
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Bodies
Corporate |
6032637 |
10.5951 |
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Individual
shareholders holding nominal share capital up to Rs.0.100 Millions |
7580335 |
13.3134 |
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Individual
shareholders holding nominal share capital in excess of Rs. 0.100 Millions |
900164 |
1.5809 |
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Any Other
(specify) |
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CLEARING
MEMBER |
16099 |
0.0282 |
|
HINDU
UNDIVIDED FAMILIES |
230987 |
0.4056 |
|
NON
RESIDENT INDIANS |
3545385 |
6.2268 |
|
TRUSTS |
375965 |
0.6603 |
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|
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GRAND TOTAL |
56937500 |
100.0000 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of industrial and automotive batteries |
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Products
: |
Kombat SMF Battery Power Stack Amaron Hi-Life Battery |
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Imports
From : |
Australia, Brazil, Japan, Republic of Korea |
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Exports
to : |
Japan, Singapore, Australia, Taiwan, Philippines, U.A.E.,
Kuwait, Greece, South East Asia, Middle East, Europe and USA. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Storage
Batteries |
Nos. |
NA |
2600000 |
2129491 |
GENERAL INFORMATION
|
Customers
: |
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No. of
Employees : |
2500 |
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Bankers
: |
State Bank of India, Settipalle, Tirupati, Andhra Pradesh Andhra Bank, Main Branch, Tirupati, Andhra Pradesh State Bank of Hyderabad, Main Branch, Tirupati, Andhra
Pradesh |
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
E. Phalguna Kumar & Company Chartered
Accountants, Tirupati,
Andhra Pradesh, India Chevuturi Associates Chartered
Accountants, Vijayawada,
Andhra Pradesh, India |
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Cost
Auditors : |
Parankusam and Company Hyderabad, Andhra Pradesh, India |
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Affiliation
: |
Confederation
of Indian Industry. |
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Sister
Concerns : |
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CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
15000000 |
Equity
Shares |
Rs. 10/- |
Rs 150.000 millions |
Issued
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
11809100 |
Equity
Shares |
Rs. 10/- |
Rs. 118.091 millions |
Subscribed
& Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
11387500 |
Equity Shares
|
Rs. 10/- |
Rs. 113.875 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
1] Share
Capital |
113.900 |
113.875 |
113.875 |
|
2]
Reserves & Surplus |
2322.800 |
1898.977 |
1692.973 |
NETWORTH
|
2436.700 |
2012.852 |
1806.848 |
|
LOAN
FUNDS |
|
|
|
|
1]
Secured Loans |
1074.800 |
162.264 |
73.666 |
|
2] Unsecured
Loans |
332.200 |
216.407 |
159.393 |
TOTAL
BORROWING
|
1407.000 |
378.671 |
233.059 |
|
DEFERRED
TAX LIABILITIES |
0.000 |
120.012 |
130.927 |
|
|
|
|
|
TOTAL
|
3843.700 |
2511.535 |
2170.834 |
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
1568.300 |
1043.547 |
948.631 |
|
Capital
work-in-progress |
61.700 |
48.149 |
12.892 |
|
|
|
|
|
|
INVESTMENTS |
161.900 |
320.140 |
235.627 |
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
Inventories |
921.700 |
571.962 |
440.959 |
|
Sundry
Debtors |
1459.500 |
856.520 |
649.706 |
|
Cash
& Bank Balances |
256.000 |
205.212 |
169.122 |
|
Other
Current Assets |
0.000 |
12.035 |
9.926 |
|
Loans
& Advances |
895.300 |
634.973 |
342.929 |
|
Total Current Assets |
3532.500 |
2280.702 |
1612.642 |
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
Current
Liabilities |
903.700 |
700.855 |
345.043 |
Provisions
|
577.000 |
480.148 |
293.915 |
Total Current Liabilities
|
1480.700 |
1181.003 |
638.958 |
|
Net Current Assets |
2051.800 |
1099.699 |
973.684 |
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
TOTAL
|
3843.700 |
2511.535 |
2170.834 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
|
Sales
Turnover |
7451.000 |
4033.714 |
2498.979 |
|
|
Other
Income |
97.700 |
0.000 |
0.000 |
|
|
Total Income |
7548.700 |
4033.714 |
2498.979 |
|
|
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
711.900 |
373.464 |
135.811 |
|
|
Provision
for Taxation |
241.500 |
134.979 |
48.911 |
|
|
Profit/(Loss)
After Tax |
470.400 |
238.485 |
86.900 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
NA |
310.520 |
145.750 |
|
|
|
|
|
|
|
|
Imports : |
NA |
1421.760 |
865.240 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing
Expenses |
121.100 |
|
|
|
|
Employees
Cost |
266.000 |
|
|
|
|
Selling
and Administrative Expenses |
706.700 |
|
|
|
|
Miscellaneous
Expenses |
112.300 |
|
|
|
|
Raw
Material Consumed |
3939.000 |
3660.249 |
2363.168 |
|
|
Excise
Duty |
1507.200 |
|
|
|
|
Increase/(Decrease)
in Finished Goods |
[181.800] |
|
|
|
|
Interest
and Financial Charges |
47.300 |
|
|
|
|
Power
& Fuel |
149.000 |
|
|
|
|
Depreciation
& Amortization |
170.000 |
|
|
|
Total Expenditure |
6836.800 |
3660.249 |
2363.168 |
|
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2007 [1st Quarter] |
30.09.2007 [2nd
Quarter] |
31.12.2007 [3rd Quarter] |
|
Sales Turnover |
2146.000 |
2561.700 |
3078.800 |
|
Other Income |
28.000 |
34.900 |
59.000 |
|
Total Income |
2174.000 |
2596.600 |
2137.800 |
|
Total Expenditure |
1825.400 |
2196.200 |
2564.800 |
|
Operating Profit |
348.600 |
400.400 |
573.000 |
|
Interest |
17.300 |
27.200 |
35.800 |
|
Gross Profit |
331.300 |
373.200 |
537.200 |
|
Depreciation |
56.600 |
58.700 |
62.000 |
|
Tax |
101.100 |
108.300 |
178.600 |
|
Reported PAT |
179.100 |
206.200 |
296.600 |
KEY RATIO
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.41 |
0.17 |
0.11 |
|
Long Term
Debt-Equity Ratio |
0.17 |
0.10 |
0.07 |
|
Current
Ratio |
1.53 |
1.68 |
2.00 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
3.32 |
2.49 |
1.65 |
|
Inventory |
9.98 |
8.80 |
7.18 |
|
Debtors |
6.43 |
5.92 |
4.79 |
|
Interest
Cover Ratio |
16.05 |
14.19 |
97.93 |
|
Operating
Profit Margin(%) |
12.47 |
12.30 |
10.18 |
|
Profit
Before Interest And Tax Margin(%) |
10.19 |
9.01 |
5.11 |
|
Cash
Profit Margin(%) |
8.59 |
8.64 |
8.31 |
|
Adjusted
Net Profit Margin(%) |
6.31 |
5.35 |
3.24 |
|
Return On
Capital Employed(%) |
24.25 |
18.01 |
6.97 |
|
Return On
Net Worth(%) |
21.14 |
12.48 |
4.89 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
Subject was incorporated on 13th February 1985 at
Tirupati in Andhra Pradesh having Company Registration No. 15305.
Mr. Ramchandra Galla promoted subject
in 1985 as a private limited company. It went public in 1991 and commenced the
manufacture of Valve Regulated Lead Acid batteries for the first time in India
in collaboration with GNB Industrial Battery Co, USA. Currently, subject is the
leading producer of VRLA batteries in India. It has entered the automotive
segment with help from its collaborator-Johnson Controls of USA. The latter
recently has taken 23% stake in the company. With this, the company is eyeing
on the future growth in this segment.
It was promoted by R N Galla, an NRI and A Galla and
associates to set up a plant for the manufacture of sealed maintenance-free
lead-acid stationary batteries for industrial applications with an installed
capacity of 0.100 million per annum. To
part-finance this project, the company went public in January, 1991.
The company entered into a technical collaboration with GNB,
USA, for technical know-how and other related services. Commercial production
started in May 1992. The products are marketed under the brand Power Stack and
Power Plus. Power Stack, with a capacity in the range of 120-4000 AH is
engineered to withstand widely varying environmental conditions. It is mostly
used in main exchanges, EPABXs, rural automatic exchanges, cellular radios, and
satellite communication systems. Power Plus with a capacity between 50 AH and
250 AH are ideally suited for uses requiring high discharge currents for a
short duration, telecommunications, switchgear operations in sub-stations,
photo-voltaic, railway and speciality applications. The technology has been
fully absorbed and many critical components have been indigenized.
In 1996-97, it received the ISO 9001 certification from
RWTUV, Germany and products obtaining UL recognition for safety of operation
from Underwriters Laboratory, USA.
The company has branched out to the automotive battery segment with its Amaron
brand. It is sourcing technology for Amaron from its partner, Johnson Controls
Inc, which holds 26% equity stake in Amara Raja Batteries.
The company has plans to increase its presence in the south
Asian region and has set up a new plant in Tirupathi. The first phase of
expansion, on which Rs. 450 millions have been spent, is now almost over and
the second phase is expected to be completed by 2005.
To better exploit the opportunity in the UPS segment, the
company has planned up gradation of the Kombat monobloc range and a further
expansion of the product range to cater to the entire range of mid-size UPS
equipment.
During 2001-02 the company introduced Genpro and Brute range
of VRLA Batteries for DG set starting and Traction Applications.
PERFORMANCE:
The year has witnessed yet another remarkable performance
with 67% growth in gross sales at Rs.7,451 million as against Rs.4,458 million
in the previous year. The Profit Before Tax [PBT] for the year was Rs.711.98
million as against Rs. 373.46 million in the previous year. The Profit After
Tax (PAT) for the year stood at Rs.470.44 million as against Rs.238.47 million
in the previous year.
The aggregation of higher sales revenue, effective
assimilation of overheads and OP measures has resulted in significant increase
in profitability. The industrial battery volumes grew 55% and automotive
battery volumes grew 50%) over the previous year.
CAPACITY EXPANSION
As indicated in the last report, the Company has
successfully completed the expansion of its 2V VRLA annual capacity from 240
million AH to 350 million AH. This capacity was further augmented to the level
of 400 million AH through productivity improvements. The Company also has
enhanced its automotive [monobloc] battery capacity from 2.4 million units per
annum to 3.60 million units per annum. During the year, the Company has
announced aggressive capex plan contemplating an investment of Rs. 2,016
million. The committed plan include capacity enhancement of automotive battery
to 5.40 million units per annum and establishment of two wheeler and SVRLA
battery facility at Tirupati with an initial capacity of 5.74 million units per
annum. All expansion plans, undertaken by the Company during the year, are
progressing as per schedule.
BORROWING
The Company's debt-free status was leveraged by securing term borrowing
equivalent to Rs. 840 million to part fund its expansion programme. After a
careful review of various options for borrowings, the Company has availed term
loans from M/s. Citibank, NA and M/s. BNP Paribas with a combination of both
rupee and foreign currency loan at competitive rates.
FOREIGN EXCHANGE
EARNINGS AND OUTGO
Activities relating to exports, initiatives taken to
increase exports; development of new markets for products and services and
export plans.
Export earnings for the year, earned in foreign exchange equivalent, are Rs.
287.36 million.
Batteries were exported to countries such as Afghanistan, Australia, Greece,
HongKong, Japan, Kuwait, Oman, Philippines, Singapore, Tanzania, Taiwan,
Thailand, UAE and West African Countries.
The emphasis on international business continues, the objective is to
continuously expand the international business to make it a sizable proportion
of the Company's turnover.
Economy and
Environment
Consistent double-digit growth in manufacturing and services
sector saw the Indian economy recording a 19 year high in Gross Domestic Product
[GDP] growth of 9.4% for 2006-07 as against a growth rate of 9.0% in 2005-06,
pushing the absolute size of the economy to Rs.40 lakh crores or US$ 1 trillion
at current market prices. The savings and investment touched record levels at
32.4% and 33.8% of GDP respectively. Moreover, per capita income has registered
a growth of 8.4% during 2006-07, which is an outstanding accomplishment by
Indian as well as global standards. Manufacturing and services sector drove the
surge, while growth in agriculture actually slackened as compared with
2005-06.
In the industrial sector, productivity and efficiency gains are order of the
day. In the face of liberal imports, moderation in tariffs and tax rates and
burgeoning Foreign Direct Investment [FDI], Indian industry is more globally
competitive than ever. India Inc. is aggressively securing access to
international markets fuelled by the new ambition backed up by progressive
management. The policy environment has also played a key role in this
resurgence of Indian industry. In 2006-07, both industrial and services have
acted as the twin engines propelling the growth of economy, contributing about
26% and 55% of the GDP respectively. Manufacturing and services sector grew by
12.3% and 11% respectively in 2006-07. Significant progress was witnessed in
attracting the private investment from domestic as well as overseas in several
sectors including infrastructure like roads, airports, power and telecom.
In recent years, the capital flows have become larger,
accounting for 15 per cent of global net private capital flows to emerging
market economies.
There has been a surge in the FDI into India as well as
borrowings in international financial markets by Indian corporate, portfolio
flows into Indian stock exchanges have shown resilience and the BSE Sensex has
crossed the 14000 mark in its history.
An important emerging element in the capital account deficit being modest, the
rising profile of net capital flows has resulted in steady accretions to the
foreign exchange reserves, which has more than doubled from US $ 76 billion at
the end of March 2003 to around US $ 200 billion at the end of March 2007.
Outlook
The growth prospects of Indian economy have strengthened considerably and
appear well poised to build on the current momentum. The challenge at this
juncture is to manage the transition to a higher growth path while containing
inflationary pressures and increase in interest rates.
The RBI's monetary policy has already resulted in reduced inflation, which is
expected to be at the level of 4 to 4.5 percent over the medium-term in FY
08.
Operating profit margins of Indian companies are still at attractive levels and
likely to remain robust. As fears of a further increase in interest rates
recede and the growth momentum provides room for an expansion in revenues,
sufficient internal accruals would be created. That will provide funds for new
projects without having too adverse an impact on leverage. In fact, investments
in capacities with a minimum impact on debt-equity ratio is a unique feature of
the current growth phase.
Industrial Batteries
During the year, the Company has expanded its manufacturing
capacity by almost 50% backed up by strong demand from user segments (both
telecom and UPS) and owing to the continued preference to our products, we have
leveraged the manufacturing capacity to attain the objective of growth and
market share.
The Indian Telecom space continues to be one of the high growth markets in the
world. The teledensity as at the end of March 2007 was at 18% (approx.]. If one
takes into account the 1.1 billion population and 165-166 million mobile
subscribers that we have in the country as on March 2007, it is obvious that
there is plenty of scope to grow this figure up to 30-35%.
With the Country's telecom subscriber base target being revised to 500 million
subscribers with a teledensity of 40% by 2010, the telecom space will be the
sector where the action is all about. In line with these inspiring plans of the
telecom sector, BSNL had floated the biggest of tenders for the roll out of 45
million GSM lines. The private service providers are also expected to jump into
action and commit matching resources for expanding their network and services
to retain their share of subscribers.
Based on the present indications, the battery industry might experience
bottlenecks in the manufacturing capacity to cater to bunched up requirements
from all key customers at the same time. The Company is constantly reviewing
its manufacturing capacity to cater to the growing demand to leverage the
overall buoyancy in the telecom segment.
The Indian UPS industry is experiencing its steepest growth in recent memory
and we expect this trend to continue in the near future. Propelled by the
growth in the IT and ITES industry, as well as the continued power shortage
situation in the country, the UPS sector has a lot of growth to look forward.
The UPS battery market derives growth through its supplies to OEs as well as
through the Company's channels. To tune into the growth, the Company has been
expanding its network of Channel partners and relationships. In the
industrial segment the Company continues to focus on the use of VRLA batteries
in segments such as Oil, Power, Cement, Chemical etc.
During 2006-07 the Company's sales volume of VRLA batteries grew 55% over the
previous year. This was fuelled by high growth in the user segments of Telecom
and UPS systems. Realizations for battery supplies to the telecom sector have
been revised upwards due to the steep increase in the price of lead, the
critical raw material.
Automotive
Batteries
The year has been a year of consolidation for the Company in
the passenger car segment by increasing share of business and entry into new
platforms like Maruti-Estilo, Ford-Fiesta / Fusion and joint development with
renowned car majors for new platforms to be unveiled. It continued to be an
exclusive supplier to Ford and on the successful LCV -Tata-'ACE.' The Company
increased its share of business with existing customers. The Company had a
market share of close to 96% in the served OE markets as at the end of the
financial year.
New brand communication has positioned AMARON(R) as 'India's Most Powerful
Battery'. The Company has adopted the 720 degree centigrate brand communication
approach with the launch of Amaron PRO Racing, to improve the impact of
investment into the brand. The product look and feel was tailored to reinforce
the brand character. Customers' increased expectations were met with enhanced
life for the Harvest, Hi-Way and Shield range of batteries backed up by a
higher warranty.
The Company continued to expand its network. At the end of the year, there were
152 franchisees and 14000 active retailers. Service reach drastically improved
with doubling the number of service-hubs to 1500. With an extensive pan-India
sales and service network AMARON(R) continues to provide utmost convenience and
care to the customers.
With a volume growth of over 50%, AMARON(R) remains the fastest growing after
market battery brand in India. The Company has recorded a growth of 125% in the
SAARC markets [Srilanka, Nepal and Bhutan].
During May 07, the Company has launched a new retail store format -
PowarZone-to cater to the growing need for better technology and better service
at affordable price in the rural markets. PowerZone will offer top quality
automotive and power related products for the rural households and shops. It
will be a one stop shop offering a platter of products of global quality at
local prices, right from automotive batteries, tractor batteries amongst others
from the house of Amara Raja.
Exports
During 2006-07, the Company exported batteries to Afghanistan, Australia,
Greece, Hong Kong, Japan, Kuwait, Oman, Philippines, Singapore, Taiwan,
Tanzania, Thailand, UAE and West African Countries. Owing to the steep increase
in lead price levels, the Company was forced to increase its prices in the
export markets resulting in slow down on the volumes. The Company's batteries
continue to be rated high for their performance in the export markets. The
Company will continue its focus on developing new export markets in Indian
ocean rim region.
Information Technology
The Company on a continuous basis keeps investing in its
information technology backbone to enable improvements in information
dissemination.
During the year, the Company focused on further
consolidation of systems in its Enterprise Resource Planning (ERP) by
integration with customers' and vendors' systems. A new franchisee management system
was deployed, which provides various data in the centralized platform, for
effective data management, data analysis, and implementation of best business
practices amongst franchisees and to optimize the communication cost.
Financial Review
The Company has reported a robust performance for the year
2006-07, reaffirming the confidence reposed by the stakeholders in the Company.
The Company has achieved an all round growth in sales and profitability, led
both by the automotive & industrial battery segment. The Company has
achieved 67% growth in gross revenue at Rs. 7,451 million as against Rs. 4,458
million in the previous year.
The rising input cost, due to lead price increase, was offset by the
improved efficiencies in operations. The Company is pursuing various cost
optimization initiatives with meticulous planning and productivity and process
improvement through Total Productivity Management and Lean Manufacturing
Practices. The Company is continuously investing in de-bottlenecking and
technically efficient solutions.
The Profit Before Interest, Depreciation, Tax and Amortization (PBIDTA)
increased to Rs. 913 million as against Rs. 534 million in previous year and
showed a growth of 71% over the previous year. The Company's Profit Before
Interest and Tax (PBIT) has grown by 92% to Rs. 743 million as against Rs. 387
million in the previous year. The Company has achieved Profit After Tax [PAT]
of Rs. 470 million as against Rs. 238 million in the previous year with an
impressive growth of 97%.
The liquidity of the Company has been very healthy. The Company has
raised funds through term funding, nearly after a gap of 17 years, to part fund
the on going automotive capacity expansion (capex). The cash generations,
during the year, from operation has been deployed to fund the increasing
working capital needs, capacity expansions undertaken during the year and
regular capex commitment.
The organization has a nimble design with an open,
transparent and invigorating work culture that enables them to respond to the
ever changing market conditions. As an ISO 9001, ISO 14001 and TS 16949
certified Company, Amara Raja's employees are continuously exposed to an
environment which focuses on people, processes, systems, technology, innovation
and learning.
PRESS REPORT
Amaron rides in on
breakthrough innovation - introduces VRLA (Valve Regulated Lead Acid)
technology for two wheelers
- Amaron
Pro Bike Rider is the longest lasting and most powerful with 30% more
cranking power
- Packs
first ever 60 month warranty for 2-wheeler batteries
- Based
on proprietary JCI technology designed and developed for Indian market by
Amara Raja
Chennai, India, May 26, 2008: - Amara Raja
Batteries entered the two wheeler battery segment today with the launch of
Amaron Pro Bike Rider 2-wheeler batteries, powered by VRLA (Valve Regulated
Lead Acid) technology from JCI customized by Amara Raja’s R&D for the
Indian markets. Offering the most powerful performance at 30% higher cranking
power than the best in the market, Amaron Pro Bike Rider comes with the first
ever 60 month warranty.
VRLA technology is the preferred choice for the
luxury cars across the world today. Amaron Pro Bike Rider is powered by
proprietary VRLA technology from Johnson Controls Inc., which has been adapted
and customized to meet the harsh demand of rugged Indian conditions at the
in-house R&D lab of ARBL. The design and development has focused on
applications and specifications required specially for the Indian market.
Sporting Brand Amaron’s distinctive colours of
Neon Green, Silver and Black, Amaron Pro Bike Rider was launched in the city
today by Mr. Jayadev Galla, Managing Director and Mr.Ganesh Swaminathan, Head –
Automotive, Amara Raja Batteries Ltd, amid a galaxy of Indian pro-racers and
Amaron brand ambassadors - Narain Kartikeyan, Armaan Ebrahim and Aditya Patel.
The company also launched a micro-site www.probikerider.com which
would not just help disseminate information on the new product but also have
sections on two wheeler battery technology and maintenance for better
understanding.
Speaking at the launch, Mr. Jayadev Galla said,
“True to the personality of Brand Amaron, Amaron Pro Bike Rider offers the
first ever 60 month warranty in 2-wheeler batteries. VRLA technology is the
preferred choice for the luxury cars across the world and today we have made
this superior technology available to the 2-wheeler customers in India. In all,
Amaron Pro Bike Rider is a no-compromise combination of innovative technology,
superior performance and appealing aesthetics.”
The combined OE and After Market 2-wheeler battery industry is currently valued
at Rs. 500 crores and is growing at the CAGR of 8%. In addition to the
traditional segments, the growth is being fueled by the increasing popularity
of high end 2-wheelers among Gen Y. There is also growth coming from new users
of un–geared scooters among urban and semi-urban women. “2-wheeler riders
traditionally were not required to pay much attention to the battery in the
kick start models. However with increasing shift to self start, the battery
technology and choice is becoming critical.
Amaron Pro Bike Rider with the breakthrough VRLA
technology has been designed to give them the comfort of the longest life and
highest power and saves them the added hassle of caring for the batteries in
their bikes,” Mr. Jayadev Galla added.
Amaron Pro Bike Rider is expected to raise the levels of awareness among
customers and make battery replacement for their 2-wheelers as a decision on
which they have a role. More with ARBL’s extensive dealer network and PitStops,
it will be a new, satisfying buying experience too.
Elaborating on the marketing plans, Mr. Ganesh Swaminathan, Head – Automotive,
said, “Our network of 18,000 retailers, 120 Pit Stops and extensive service
hubs is our huge strength. This will bring the Amaron Pro Bike Rider within
easy reach of customers across the country along with the added comfort of
highly efficient after sales service. ”
“Drawing on the brand strengths of Amaron, we
are confident Amaron Pro Bike Rider will capture a good market share in the
first year itself. In 5 years we aim to have 20%. In FY 2008-09, we have earmarked
25% of our overall communications budget for brand building and marketing
promotions and will continue the same proportion going ahead,” he added
On product and technology Amaron Pro Bike Rider series offers valve-regulated
lead-acid two wheeler batteries with lead calcium tin alloy, synthetic AGM
separator, external ribs, flame arrestor and a radial grid design. These
distinctive features ensure that the customers have products which require zero
maintenance, offer highest cranking power, are spill or leak proof and carry a
warranty of 60 months. The series is available in 3 variants of 2.5 Ampere
Hour, 5 Ampere Hour and 9 Ampere Hour.
On plant
and capacity
In
January 2007, ARBL announced expansion plans to invest Rs.84 crores to set up
the combined manufacturing capacity of 3.2 million units for 2-wheeler
batteries and Small VRLA batteries for UPS applications. Currently 1 million
units combined capacity is ready and will scale up to 3.2 million units by FY
2010.
For more details on Amaron Pro Bike Rider,
please walk into a battery store or Amaron Pit Stop in your neighborhood or log
on to our website www.probikerider.com
Media Contact
Rashi Gupta/Vinod Kumar
Ogilvy Public Relations Worldwide
Mobile: 9884075101/9840126179
E-mail:rashi.gupta@ogilvy.com
vinod.kumar@ogilvy.com
About Amara Raja
Amara Raja Batteries Limited,an Amara Raja-Johnson Controls Company with 26%
equity from Johnson Controls, is the technology leader and is one of the
largest manufacturers of Lead Acid batteries for both Industrial and Automotive
applications in the Indian storage battery industry.
In India, Amara Raja is the preferred supplier to major telecom service
providers, telecom equipment manufacturers, UPS segment (OEM &
Replacement), Indian Railways and to Power, Oil & Gas among other industry
segments. Amara Raja manufactures and sells automotive batteries under the
brand name AMARON ® which is distributed through a large pan-India sale-service
retail network.
The company supplies automotive batteries under OE relationships to Ashok
Leyland, Fiat, General Motors, Hindustan Motors, Honda, Mahindra &
Mahindra, Maruti, Hyundai & Tata Motors. The company is an exclusive
supplier to Daimler Chrysler, Ford and Swaraj Mazda. The Company’s Industrial
and Automotive batteries are exported to Asia Pacific, Africa and the Middle
East.
Johnson Controls is a global leader in interior experience, building efficiency
and power solutions. The company provides innovative automotive interiors that
help make driving more comfortable, safe and enjoyable. For buildings, it
offers products and services that optimize energy use and improve comfort and
security. Johnson Controls also provides batteries for automobiles and hybrid
electric vehicles, along with systems engineering and service expertise.
Johnson Controls (NYSE: JCI), founded in 1885, is headquartered in Milwaukee,
Wisconsin. Its sales for 2007 totalled US$ 34.6 billion.
Safe Harbor
Some of the statements in this news release that are not historical facts are
forward-looking statements. These forward-looking statements include our
financial and growth projections as well as statements concerning our plans,
strategies, intentions and beliefs concerning our business and the markets in
which we operate. These statements are based on information currently available
to us, and we assume no obligation to update these statements as circumstances
change. There are risks and uncertainties that could cause actual events to
differ materially from these forward-looking statements. These risks include,
but are not limited to, the level of market demand for our products, the
highly-competitive market for the types of products that we offer, market
conditions that could cause our customers to reduce their spending for our
products, our ability to create, acquire and build new businesses and to grow
our existing businesses, our ability to attract and retain qualified personnel,
currency fluctuations and market conditions in India and elsewhere around the
world, and other risks not specifically mentioned herein but those that are
common to industry.
The company
is in trade terms with:
v Krishnaswani Chemicals
v Krishwin Pure Acids
v Naths Acids
Subject is
engaged in manufacturing of VRLA (Industrial Batteries) and SLI (Auto
Batteries).
Subject is a leading manufacturer of industrial and
automotive batteries in India.
The company
has technical collaboration with Johnson Controls Inc., USA.
New markets
are also being developed in Japan and Europe, leveraging JCI relationship.
It is the pioneer and market leader in VRLA batteries and
commands more than 60% market share in the segment. The company has technical collaboration with GNB Technologies,
UK.
The company is also exploring new application areas such as
security services, genset starting, motive power and solar energy.
The company is also planning to focus on increasing exports
of both automotive and industrial products as with increased capacities for
manufacture products that meet global standards and a competitive cost
structure.
The company's fixed assets of important value include Land
& Land Development, Buildings, Plant & Machinery, R & D Plant &
Machinery, Electrical Installations, Furniture, Office Equipment and Vehicles.
WEBSITE DETAILS
Subject is the largest manufacturer of Standby
Valve Regulated Lead Acid (VRLA) batteries in the Indian Ocean Rim comprising
the area ranging from Africa and the Middle East to South East Asia. Based in
Chennai, with a fully integrated manufacturing unit for its industrial
batteries at Tirupati, Amara Raja has reached a position of leadership in a
short span of 7 years.
Subject is in a strategic partnership with Johnson Controls Inc., USA. With
this, ARBL is in Global Supply Alliance with Varta AG of Europe and Enertec,
who are joint venture partners of JCI in South America and Mexico. The Business
Group of Amara Raja is categorized as Industrial Battery Division, Automobile
Battery Division and Power System Division.
Subject is the largest suppliers of stand-by power systems, catering to Indian
utilities such as, Departments of Telecommunication, Indian Railways, Power
Generation Stations, MTNL, VSNL, ITI and HTL. The company has preferential
status with most MNC-OEMs such as ABB, Alcatel, Ericsson, Fujitsu, Lucent,
Motorola, Nokia, Tata Liebert and Siemens.
Subject has prestigious Automotive OE clients including Ford, GM, Daimler
Chrysler, Ashok Leyland, TELCO, and Mahindra & Mahindra. Amara Raja has a
replacement Battery Brand Amaron hi-life. ARBL has a capacity for manufacture
of around 1,000,000 units at its facility at Tirupati with an investment of US
$ 10.00 million.
A Greenfield project is planned at the same site with an additional investment
of US $6 million to augment capacity to 2 million batteries. The Amaron hi-life
battery is a product of the collaborative efforts of engineers at Johnson
Controls Inc. and Amara Raja.
This Zero maintenance product incorporates the latest technological advances in
the field and is on par with batteries manufactured and marketed in developed
countries. A fully charged, factory-activated battery, provides extra high
starting performance and power at any temperature. The Power System Division is
an important supplier of SMR based power plants to Telecom Industry.
The key customers being the Telecom switching Equipment Manufacturers. As the
company saw a growing business proposition in the integrated power supply, the
production capacities of the same have been augmented. IPS using SMPS
technology, for usage in Railways has been added into the product basket.
They also design custom-built power electronics products like Industrial Battery
Chargers, Charge Discharge Circuits, Formation Chargers, AC/DC distribution
boards etc. Progressive conformance of Amara Raja to changing global standards
and processes made it achieve ISO 9001 and the QS 9000 Certification.
ISO 9001,QS 9000;Confederation of Indian
Industry.;Electrical Components & Accessories
News
Release :
Amara Raja Batteries launches first Power Zone
at Chitoor
Will
be a one stop shop for power solutions for rural and semi urban markets
Chennai, May 30, 2007 - Beyond the metros and
large cities, the retail consumer is more acutely in need of power solutions
and is a frequent buyer of automotive and power related products, whether it is
to run his tractor, power his home or his shop. Frequent power cuts add
to this quest for alternative power solutions. However, the consumer
wants a product which he can afford and hence finds many of the products
designed for the city consumer out of his reach. Whether it is a tractor
battery or an inverter, he ends up buying a locally available, non-standardized
product, which is a poor substitute, both in terms of performance and
service.
First Powerzone at Madanappali, AP
Amara Raja Batteries, the technology leader in industrial and automotive batteries
in India, has launched a new retail store format – Powerzone- to cater to the
growing need for better technology and better service at affordable price in
the rural markets. Powerzone will offer top quality automotive and power
related products for the rural households and shops. It will be a one
stop shop offering a platter of products of global quality at local prices,
right from automotive batteries, tractor batteries and home UPS, from the House
of Amara Raja. The first Powerzone store was inaugurated at Chengalpattu, in
Tamil Nadu, recently.
Mr. Ramachandra Galla, Chairman, Amara Raja Batteries Limited, today
inaugurated the first Powerzone store at Madanappali. The local business
partner is Mr.G.Rajasekar, Sri Jayam Power solutions
This is the second store launched in the series of the Powerzone chain.
With colourful display and world class products in a minimum area of 350 square
feet, Powerzone is a concept which will bridge the urban-rural divide in
product offerings and customer experience. It translates into customer
comfort in 4 critical areas – One, the shopping experience, two, the price
point, three, the comfort of buying a standardized product backed with the
best-in-class technology and most importantly the comfort of access to
reliable, after sales service network across the country.
All the Powerzone stores will be connected
through an information backbone to the central hub, for efficient planning,
management and stocking.
Commenting on the concept, Mr. Jayadev Galla said,
“The consumer in the rural markets is today treated like a poor country cousin
to the urban consumer. He settles for the substandard local offerings because
he does not have access to the top end products at a price he can afford. At
Amara Raja, they have technology and expertise in batteries and inverters and
Powerzone is the innovative concept that brings technology at the right price
for the rural consumers.”
“Their target is to have at least one Powerzone
outlet in every Taluk Head quarters in India in the next two years. The
business model for Powerzone has in-built social responsibility components
which result in two direct benefits in the local community. One,
Powerzone brings a new self employment opportunity to the rural educated youth,
who are constantly seeking better opportunities outside. Their franchisee model
nurtures and supports entrepreneurial spirit to develop a vibrant business and
non-migratory job opportunities. Two, Powerzone will also help reduce lead
related pollution in the rural landscape which results from unregulated battery
disposal,” he added.
About 40 Powerzone stores will be opened in AP
by end of December 2007. Going ahead, Powerzone will also offer other power
related products, which will be sourced from reputed international sources.
50 Powerzone stores to be opened in one month
across India
“50 Powerzone stores will be opened in May 07
across the South, North and West India. The number will reach 500 stores by FY
2007-08. Powerzone products will be priced to match the current local
offerings,” elaborated Mr. G Indeevar, Head, Automotive – Aftermarket, ARBL.
The Powerzone network of stores is a franchisee model offering a ready-to-roll
packaged business fully supported by ARBL through investment in IT infrastructure,
products and brand building, while the local business partner will bring in
local infrastructure and product investment. Bringing cutting edge technology
that meets consumer needs has been the tradition with ARBL from inception in
1985. ARBL was the first to introduce Valve Regulated Lead Acid (VRLA)
technology in batteries that took the industry by storm – dominating the market
for several years and spawning followers. Today ARBL is among the largest and
most respected battery manufacturers in the country. Innovation has been the
hallmark of ARBL. ARBL’s product innovation introduced the first ever Valve
Regulated Lead Acid (VRLA) batteries in attractive colours in India in the
hitherto dull grey product category and created a storm. The company’s innovative
customer reach, introduced Pit Stops, bringing a new experience of battery
buying. Being innovative in its communication of brands, ARBL was among the
first to use animation and animatronics in its advertisements. Powerzone now is
the latest in the line of innovations from the House of Amara Raja.
Amara Raja Batteries launches a pan India retail
concept - Power Zone
Will be a one stop shop for power solutions for
rural and semi urban markets
First
Powerzone at Chengalpattu
Chennai, May 7, 2007 - Industrial and
Automotive Battery major, Amara Raja Batteries, has launched a new retail store
format – Powerzone- to cater to the growing need for better technology and
better service at affordable price in the rural markets. The first Powerzone
store was inaugurated today at Chengalpattu, in Tamil Nadu by Mr. Jayadev
Galla, Managing Director, Amara Raja Batteries Limited. The local business
partner is Mr. Yegnaraman, M/s.Motor Plazaa.
Powerzone will offer top quality automotive and power related products for the
rural households and shops. It is a one stop shop offering a platter of
products of global quality at local prices, right from automotive batteries,
tractor batteries and home UPS, from the House of Amara Raja. The Company will
be leveraging its expertise in lean management techniques, efficient network
building and product innovation to bring in the economies for this venture.
Inaugurating the store, Mr. Jay Galla said, “The consumer in the rural markets
is today a poor cousin to the urban consumer. He settles for the substandard,
local offerings because of the higher price points. At Amara Raja, they have
technology and expertise in batteries and inverters and Powerzone is the
innovative concept that brings technology at the right price for the rural
consumers.”
“Their target is to have at least one Powerzone outlet in every Taluk Head
quarters in India in the next two years. The business model for Powerzone has
in-built social responsibility components which result in two direct benefits
in the local community. One, Powerzone brings a new self employment opportunity
to the rural educated youth, who are constantly seeking better opportunities
outside. Their franchisee model nurtures and supports entrepreneurial spirit to
develop a vibrant business and non-migratory job opportunities. Two, Powerzone
will also help reduce lead related pollution in the rural landscape which
results from unregulated battery disposal,” he added.
50 Powerzone stores to be opened in one month
50 Powerzone stores will be opened in May 07 across the South, North and West
India. The number will reach 500 stores by FY 2007-08. Powerzone products will
be priced to match the unorganized sector offerings today. All the Powerzone
stores will be connected through an information backbone to the central hub,
for efficient planning, management and stocking. The Powerzone network of
stores is a franchisee model offering a ready-to-roll packaged business fully
supported by ARBL through investment in IT infrastructure, products and brand
building, while the local business partner will bring in local infrastructure
and product investment. Going ahead, Powerzone will also offer other power
related products, which will be sourced from reputed international sources.
Beyond the metros and large cities, the retail consumer is more acutely in need
of power solutions and is a frequent buyer of automotive and power related
products, whether it is to run his tractor, power his home or his shop.
Frequent power cuts add to this quest for alternative power solutions.
“With colourful display and
world class products in a minimum area of 250 square feet, Powerzone is a
concept which will bridge the urban-rural divide in product offerings and
customer experience. It translates into customer comfort in 4 critical areas –
One, the shopping experience, two, the price point, three, the comfort of
buying a standardized product backed with the best-in-class technology and most
importantly the comfort of access to reliable, after sales service network across
the country,” elaborated, Mr. G Indeevar, Head, Automotive – Aftermarket, ARBL.
Safe Harbour
Some of the statements
in this news release that are not historical facts are forward-looking
statements. These forward-looking statements include their financial and growth
projections as well as statements concerning their plans, strategies,
intentions and beliefs concerning their business and the markets in which they
operate. These statements are based on information currently available to us,
and they assume no obligation to update these statements as circumstances
change. There are risks and uncertainties that could cause actual events to
differ materially from these forward-looking statements. These risks include,
but are not limited to, the level of market demand for their products, the
highly-competitive market for the types of products that they offer, market
conditions that could cause their customers to reduce their spending for their
products, their ability to create, acquire and build new businesses and to grow
their existing businesses, their ability to attract and retain qualified
personnel, currency fluctuations and market conditions in India and elsewhere
around the world, and other risks not specifically mentioned herein but
those that are common to industry.
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. 42.97 |
|
UK Pound |
1 |
Rs. 84.75 |
|
Euro |
1 |
Rs. 66.72 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--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
|
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 |