MIRA
INFORM REPORT
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Report Date : |
07.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SANDVIK ASIA LIMITED |
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Registered Office : |
Mumbai – Pune Road, Dapodi, Pune – 411 012, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.07.1960 |
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Com. Reg. No.: |
11-11751 |
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CIN No.: [Company
Identification No.] |
L29299MH1960PLC011751 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNES00125G |
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PAN No.: [Permanent
Account No.] |
AACCS6638K |
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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 Tungsten Carbide Products used as Cutting Inserts in a Diverse range of Machine Tools and Drilling Equipments. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 15000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed multi-national company engaged in manufacturing and marketing of Tungsten Carbide Products, Co5romant Tool Taps and Solid Carbide Drills, etc. The company’s track are fine. Financial position of the company is good. Trade relations are fair. Payments are always correct and as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered/Head Office/Factory : |
Mumbai – Pune Road, Dapodi, Pune – 411 012, Maharashtra, India |
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Tel. No.: |
91-20-27146491-93/94 / 27104715 |
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Fax No.: |
91-20-27145339 / 27149370/4339/736/423 / 27147031 / 27144736 |
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E-Mail : |
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Website : |
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Factory 2 : |
D-27/1, MIDC, Lote Parshuram, Tal. Khed, Dist. Ratnagiri |
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Factory 3 : |
Village Rajpur - 382740, Kadi, Mehsana |
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Factory 4 : |
49 49-B, Sipcot Industrial Complex, Hosur – 635 126, Tamilnadu |
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Factory 5 : |
34/35, K M Sangareddy Road, P. O. Muthangi - 502319, Patancheru, Dist.
Medak |
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Branches : |
Located at :-
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Overseas Office : |
Sandvik AB, SE-811 81 Sandviken, Sweden |
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Tel. No.: |
+46 (0)26 260000 |
DIRECTORS
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Name : |
Mr. Peter Gossas |
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Designation : |
Chairman |
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Name : |
Mr. S S Marathe |
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Designation : |
Vice Chairman |
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Name : |
Mr. S N Talwar |
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Designation : |
Director |
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Name : |
Mr. Anders Thelin |
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Designation : |
Director |
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Name : |
Mr. Hakan Kingstedt |
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Designation : |
Managing Director and President
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KEY EXECUTIVES
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Name : |
Mr. N P Achuthan |
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Designation : |
Divisional Manager,
Finance and Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Tungsten Carbide Products used as Cutting Inserts in a Diverse range of Machine Tools and Drilling Equipments. |
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Products |
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Exports : |
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Countries : |
Indonesia, Nepal, Sri Lanka, Sweden and Switzerland |
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Imports : |
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Countries : |
Canada, Germany, Hong Kong, Sweden and UK |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Tungsten carbide
products including integral rock drill steels, bits, detachable bits,
extension drill steel equipments, inserts, tips, dies, Nibs and other
applications |
Tonnes Nos. in millions |
250 |
250 |
12.21 |
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Sandvik Coromant tools,
wear resisting parts and similar products |
Nos. in millions |
1.48 |
1.48 |
0.60 |
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Taps and Solid
Carbide Drills |
Nos. in millions |
0.54 |
0.54 |
0.19 |
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Specialised Tools such as precision Work holding and Tool holding
devices |
Nos. in millions |
10 |
10 |
-- |
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Hydrogen gas |
Cu mtrs |
700,000 |
700,000 |
-- |
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Cobalt Metal and Compounds |
Tonnes |
70 |
70 |
64.0 |
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Thermostatic bimetal/strip |
Tonnes |
100 |
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24.3 |
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High resistance electrical wires, strips and ribbons |
Tonnes |
600 |
200 |
145.7 |
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Bimetal components, Heating elements and terminal rods |
Nos |
@ |
@ |
493,381 |
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Hot extruded steel pipes |
Tonnes |
-- |
7000 |
3,558 |
GENERAL
INFORMATION
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No. of Employees : |
953 |
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Bankers : |
v Citibank N A v HSBC v HDFC Bank Limited v Standard Chartered Bank v Bank of Maharashtra v Corporation Bank v Canara Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
BSR and Company Chartered Accountant |
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Address : |
Mumbai – 400013, Maharashtra, India |
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Memberships : |
Confederation of Indian Industry |
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Holding Company : |
Sandvik AB SE-81181, Sandviken, Sweden |
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Tel. No.: |
91-46-26260000 |
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Fax No.: |
91-46-26261022 |
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E-Mail : |
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Subsidiary Company : |
Sandvik Mining and Construction Tools India Limited (formerly Sandvik Smith Asia
Limited) |
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Affiliates / Fellow Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2,000,000 |
Equity
shares |
Rs.100/-each |
Rs. 200.000 millions |
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87,788,000 |
2% redeemable
cumulative preference shares |
Rs.10/-each |
Rs. 877.880 millions |
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3,145,000 |
2% redeemable
cumulative preference shares |
Rs.25/-each |
Rs. 78.625 millions |
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1,232,000 |
9% redeemable
cumulative preference shares |
Rs.25/-each |
Rs. 30.800 millions |
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Total |
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Rs.
1187.305 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,979,929 |
Equity shares |
Rs.100/-each |
Rs. 197.993 millions |
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87,787,700 |
2% redeemable cumulative
preference shares (Redeemable at
par after completion of fifteen years from the date of issue. The Company
will have an option to call for an early redemption of the said shares,
wholly or partly, after completion of 5 years from the date of issue.
Earliest date of redemption is 11 February 2008) |
Rs.10/-each |
Rs. 877.877 millions |
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3,144,565 |
2% redeemable
cumulative preference shares (Redeemable at par after completion of fifteen years from the date of issue.
The Company will have an option to call for an early redemption of the said
shares, wholly or partly, after completion of 5 years from the date of issue.
Earliest date of redemption is 11 February 2008) |
Rs.25/-each |
Rs. 78.614 millions |
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Total |
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Rs. 1154.484 millions |
Issued, subscribed and paid-up includes
Equity Shares:
36,000 (2006:
36,000) equity shares of Rs.100/- each alloted as fully paid-up for
consideration received other than in cash. 125,000 (2006: 125,000) equity shares
of Rs.100/- each fully paid-up alloted to Sandvik Finance BV pursuant to the
scheme of amalgamation of erstwhile Titex India Private Limited with the
Company. 1,734,869 (2006: 1,734,869) equity shares of Rs. 100 each allotted as
fully paid-up bonus shares by capitalisation of the General reserve. 1,801,246
(2006:1,801,246) equity shares of Rs.100 each fully paid-up held by Sandvik AB,
Sweden, the holding company.
Preference Shares:
87,787,700 (2006:
87,787,700) 2% redeemable cumulative preference shares of Rs.10/- each,
3,144,565 (2006: 3,144,565) 2% redeemable cumulative preference shares of
Rs.25/- each were alloted pursuant to the scheme of amalgamation of erstwhile
Sandvik Steel Asia Private Limited and erstwhile Kanthal India Limited with the
Company. 14,229,000 (2006: 14,229,000) 2% redeemable cumulative preference
shares of Rs.10/- each held by Sandvik AB Sweden, the holding company.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 (15
Months) |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1154.484 |
1154.484 |
1154.778 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2662.017 |
1836.073 |
1002.275 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3816.501 |
2990.557 |
2157.053 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
2.355 |
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2] Unsecured Loans |
210.465 |
6.875 |
10.193 |
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TOTAL BORROWING |
210.465 |
6.875 |
12.548 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4026.966 |
2997.432 |
2169.601 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1987.040 |
1384.485 |
1201.084 |
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Capital work-in-progress |
563.977 |
255.431 |
32.525 |
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INVESTMENT |
20.264 |
135.014 |
335.998 |
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DEFERREX TAX ASSETS |
66.228 |
35.585 |
39.247 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1780.025
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1064.760
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800.101 |
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Sundry Debtors |
2120.919
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1127.368
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945.146 |
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Cash & Bank Balances |
205.727
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202.190
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163.502 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
1752.837
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1307.342
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400.437 |
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Total
Current Assets |
5859.508
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3701.660
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2309.186 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2941.531
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1487.053
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1311.305 |
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Provisions |
1528.520
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1027.690
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437.134 |
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Total
Current Liabilities |
4470.051
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2514.743
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1748.439 |
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Net Current Assets |
1389.457
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1186.917
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560.747 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4026.966 |
2997.432 |
2169.601 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 (15
Months) |
31.12.2004 |
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Sales Turnover |
9339.112 |
7431.144 |
4793.071 |
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Other Income |
824.425 |
1463.263 |
472.803 |
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Total Income |
10163.537 |
8894.407 |
5265.874 |
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Profit/(Loss) Before Tax |
1532.451 |
1547.321 |
996.822 |
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Provision for Taxation |
511.340 |
582.462 |
1867.953 |
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Profit/(Loss) After Tax |
1021.111 |
964.859 |
871.131 |
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Earnings in Foreign Currency : |
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- Exports at FOB value |
4509.051 |
3217.451 |
1671.205 |
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- Recovery of Freight insurance, etc., on exports |
7.310 |
0.223 |
0.204 |
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- Commission |
215.610 |
201.772 |
120.885 |
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Total Earnings |
4731.971 |
3419.446 |
1792.294 |
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Imports : |
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Raw Materials |
2533.552 |
2321.819 |
1463.678 |
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Stores & Spares |
59.278 |
55.654 |
40.404 |
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Capital Goods |
386.788 |
381.389 |
191.765 |
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Others |
1709.055 |
1108.295 |
511.433 |
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Total Imports |
4688.673 |
3867.157 |
2207.280 |
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Expenditures : |
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Manufacturing Expenses |
8103.520 |
6439.330 |
3915.141 |
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Interest |
16.864 |
8.348 |
32.377 |
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Depreciation & Amortization |
510.702 |
420.755 |
321.534 |
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Total Expenditure |
8631.086 |
6868.433 |
4269.052 |
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KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 (15
Months) |
31.12.2004 |
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Debt Equity Ratio |
0.03 |
0.00 |
0.08 |
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Long Term Debt Equity Ratio |
0.03 |
0.00 |
0.08 |
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Current Ratio |
1.38 |
1.42 |
1.36 |
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TURNOVER RATIOS |
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Fixed Assets |
2.16 |
1.69 |
1.60 |
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Inventory |
6.91 |
6.79 |
7.32 |
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Debtors |
6.05 |
6.11 |
6.36 |
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Interest Cover Ratio |
91.68 |
187.43 |
31.77 |
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Operation Profit Margin (%) |
20.96 |
24.99 |
25.88 |
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Profit Before Interest and Tax Margin (%) |
15.76 |
19.67 |
19.72 |
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Cash Profit Margin (%) |
15.58 |
17.52 |
22.85 |
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Adjusted Net Profit Margin (%) |
10.39 |
12.20 |
16.69 |
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Return on Capital Employed (%) |
44.11 |
48.17 |
53.42 |
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Return on Net Worth (%) |
40.95 |
46.55 |
104.66 |
LOCAL AGENCY
FURTHER INFORMATION
History
Sandvik, Sweden, holds 73.22% of the equity in Sandvik Asia.
The company was founded in 1960 through negotiations between the Indian
government and Sandvik, Sweden. It achieved a commendable position in the
carbide tool segment through in-depth research and development. In 1994, the
company restructured itself into three product divisions -- coromat, rock tool
and hard material.
The company was awarded the ISO certification. In 1993, an additional
investment of Rs 60 Millions was made in modernisation projects. In 1994, this
figure jumped to Rs 100 Millions. In the same year, the company restructured
its activities under three divisions -- rock tools division, coromant division
and hard materials division. It introduced tooling products like U-max
endmills, die-making tools, coronite, cermets, U-lock and Q-cut inserts, T-max
290 cutters, waveline inserts, etc.
In 1994, Sandvik started promoting salpunite guide rolls directly to new
markets in south-east Asia and achieved a breakthrough in the export of latest
grade of hard material and other intermediate powders. New markets were
developed in the US, the UAE, Malaysia, Srilanka and Nepal.
During 1996-97, the company entered into a seven year technical collaboration
agreement with Sandvik AB for availing of the latest Sandvik technology
/knowhow for the purpose of designing and manufacturing of various cemented
carbide cutting tools and cutting tool systems. The company has merged Titex
India, a Sandvik Group Company, with itself with effect from Jan. 2001 and the
merger of Kanthal India was als completed in 2002.
A new business division, known as Sandvik Rock Processing Division, is being
established within the company. This is pursuant to Sandvik Group, through its
Mining and Construction business area, reaching a global agreement with Metso
Corporation of Finland covering acquisition of segment of Svedala Industri AB,
Sweden.
During 2001-02 Sandik, AB made an open offer to shareholders of Sandvik Asia
Limited at a price of Rs.850 per share. Subsequent to this the shareholding of
Sandik AB and its subsidiaries in the Company's paid-up capital went up above
90%.In consequence, the company was delisted from the Stock Exchanges in
compliance with the SEBI's takeover regulations.
Background
Subject was
incorporated on 8 July 1960 under the Companies Act, 1956 as a subsidiary of
Sandvik AB. Sandvik AB is a body corporate registered in Sweden and having its
registered office in Sandviken. SAL has its primary work location and
registered office at Pune and additional manufacturing work locations at
Chiplun (Maharashtra), Mehsana (Gujarat), Patancheru (Andhra Pradesh) and Hosur
(Tamil Nadu) in India. The Company's principal activities comprise
manufacturing and trading of tungsten carbide tools, rock processing
equipments, thermostatic electrical bimetal strips, wires, ribbons, heating
elements, cold finished tubes/pipes and manufacturing of hot extruded seamless
stainless steel tubes/pipes.
Intangible assets and amortization
Intangible assets
are recognised when the asset is identifiable, is within the control of the
Company, it is probable that the future economic benefits that are attributable
to the asset will flow to the Company and cost of the asset can be reliably
measured. Acquired intangible assets are recorded at their acquisition price
and are amortised over their estimated useful life on a straight line basis,
commencing from the date the assets are available for their use. The useful
life of the intangible assets is reviewed by the management at each balance
sheet date. Goodwill represents excess of consideration paid over ascribed
value of intangible assets and fair value of net assets taken over on
acquisition of Mining and Construction ('M&C') division of Kennametal Widia
India Limited ('KWIL') by the tools business of Sandvik Mining and Construction
Tools India Limited (formerly Sandvik Smith Asia Limited).
These intangible
assets are amortised based on management's estimate of the period over which
economic benefit is expected to be derived therefrom / over their contracted
period of use, as under:
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Asset |
Amortisation period (in years) |
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Goodwill |
5 |
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Technical know-how |
10 |
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Brand-Rhino |
10 |
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Brand-Widia |
3 |
Impairment
In accordance with
Accounting Standard 28 - Impairment of Assets (AS 28), the carrying amounts of the
Company's assets including intangible assets are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any such
indications exist, the assets recoverable amount is estimated, as the higher of
the net selling price and the value in use. An impairment loss is recognised
whenever the carrying amount of an asset or its cash generating unit exceeds
its recoverable amount. If at the balance sheet date, there is an indication
that a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the asset is reinstated at the recoverable amount
subject to a maximum of depreciable historical cost.
General
Market Situation
India's economy is on an ever increasing growth curve. Excellent performances
by services and manufacturing sectors helped the Indian economy grow more than
9 per cent in 2006-07, the fastest rate in 18 years. The figures indicate
strength and ability of the country's manufacturing sector in the face of
globalisation. Manufacturing grew by 12.3 per cent in 2006-07 against 9.1 per
cent in the previous year. India has emerged as the world's fastest growing
wealth creator, thanks to a buoyant stock market and higher earnings.
Sandvik is presented with better business prospects with large project
contracts in Infrastructure, Energy, Transportation, coming up regularly,
needing regional and global co-ordination with speed and accuracy.
Investments:
The Company's upgradation and expansion activities continued. The total
investments in fixed assets during the period were Rs. 1151 Million covering
all the business areas.
The investments were financed through internal accruals.
Profitability :
Sandvik Asia continues to be a significant source of high quality products for
the Sandvik Group. During the year, the Company's net sales amounted to Rs.
9339 Million compared to Rs. 7431 Million in the fifteen months period last
year. The result before tax for the year 2006-07 was Rs. 1532 Million as
against Rs. 1547 Million in the earlier accounting period. Overall, the Company
saw significant development during the year under review.
Safety
& Environment
The Company has an established Environmental Management System integrated with an
OHSAS 18001 Occupational Health and Safety Management System certified by TUV,
Nord.
This certification was obtained during the year for Cobalt Plant operations
including newly constructed Recycling Center, in Chiplun.
Demerger of
tooling business of wholly owned subsidiary "Sandvik Smith Asia
Limited" (SSAL) into SAL.
1. The Scheme of
Demerger ('the Scheme') of tools business of SSAL into the Company has been
approved by the High Court, Bombay on 18 March 2006. In accordance with the
Scheme, the reorganisation is effective from 1 April 2006 and has been given
effect to in these financial statements.
2. On the
effective date of the Scheme:
a) All the assets and
liabilities of the tools business of SSAL (Fixed Assets and Intangibles (net
book value) - Rs. 292.212 Millions Current
assets - Rs. 334.638 Millions Current
liabilities and provisions - Rs.133.918 Millions
Unsecured Loans - Rs. 438.088 Millions) are
transferred to the Company at their respective book values.
b) The
reorganisation is effected by cancelling investment in SSAL (Rs. 8.5 of every
equity share of Rs 10/- each as on the effective date shall stand cancelled i.e
13,500,000 equity shares of Rs 10/- each fully paid has been reorganized to Rs.
20.250 Millions divided into 2,025,000 equity
shares of Rs. 10/- each fully paid up). c) The net deficit of assets over
liabilities of the tools business of SSAL after cancelling investment,
amounting to Rs. 59.905 Millions is debited to
the profit and loss account.
3. Consequent to
the reorganisation, the Company has given effect to following adjustments in
the financial statements for alignment of accounting policies:
• The Company has
changed the method of depreciation of fixed assets of the tools business of
SSAL from Straight line method to Written down value method. As a result of
change in the accounting policy, the depreciation has been recalculated in
accordance with the written down value method retrospectively and an additional
depreciation charge for the year amounting to Rs. 31.332 Millions has been recorded in the Profit and Loss account.
• The Company has
changed the method of inventory valuation of opening inventory of tools
business of SSAL from Weighted average method to First in First out method. As
a result of the change in the accounting policy the Company has revalued
opening inventory of tools business of SSAL from Rs. 131.749 Millions to Rs 130.431
Millions and considered the same in the Profit and Loss account.
|
Contingent
liabilities |
Rs In Millions as on 31.03.2007 |
|
Income tax - in
respect of appeals decided in favour of the Company, but disputed further by
Income tax authorities |
215.856 |
|
Excise duty and
Service tax (includes Rs. 25.526 Millions (2006:Nil) in respect of appeals
decided in favour of the Company, but disputed further by Excise authorities) |
32.749 |
|
Labour laws
matters |
3.753 |
|
Stamp duty |
70.000 |
|
|
|
|
Bills discounted
not settled |
6.889 |
The Company has converted
the existing Tools Production Plant in 2004 into an 'Export Oriented Unit'
('EOU') registered with SEEPZ, that mandates certain export commitments against
concessional imports and other facilities. The Company has a total export
commitment of Rs. 4222.367 Millions from the
date of production in this EOU. Production has commenced from September 2004.
Tooling Cartridge Production Centre was set up in year 2004 as EOU with SEEPZ,
against which the total export commitment was Rs. 283.271 Millions from the date of production. The company
has set up Sandvik Tooling Recycling Center (STRC) as EOU with SEEPZ, in 2006,
against which the total export commitment was Rs.246.000 Millions. The Company thus has a total committment of Rs
4751.638 Millions to be fulfilled by the end
of the financial year 2009. The Company has already exported goods worth Rs
4055.092 Millions.
It is in trade terms
with :-
Ø Abrasive Technologies
Ø Accurate Industries
Ø Airotek Pollution Control Projects and Equipments
Ø Amol Enterprises
Ø Ashok Industries
Ø Avesta Polymer Private Limited
Ø Best Engineers
Ø Dip Moulding Works
Ø Deepak Plastics
Ø Deep Sagar Engineering
Ø Dhawale Packing Contractor
Ø GTR Private Limited
Ø Sai Ram Engineering
Ø Mirai Engineers
Ø Reliance Engineers
Ø Shree Plastics
Ø Tanuja Enterprises
Ø Tejas Electrics
Ø Vivek Enterprises
Ø Shreyas Industries
Ø Dharani Service
Fixed Assets
Tangibles
Land (freehold)
Land (leasehold)
Office and factory buildings
Plant and machinery
Furniture, fittings and office equipment
Vehicles
Intangibles
Technical know how
Brand Rhino
Brand Widia
Goodwill
As per website details
PROFILE :
The Sandvik Group
Subject is a
high-technology, engineering group with advanced products and a world-leading
position within selected areas. Worldwide business activities are conducted
through representation in 130 countries. The Group has 38 000 employees and
annual sales of approximately SEK 55 billion.
The company’s business concept is based
on a unique competence in materials technology. This has resulted in a world-leading
position in three core areas:
- Cemented-carbide and high-speed steel tools for metalworking applications and blanks and components made of cemented carbide and other hard materials.
- Machinery, equipment and tools for rock-excavation.
- Stainless and high-alloy steels, special metals, resistance materials and process systems.
Business concept
The company shall
develop, manufacture and market highly processed products, which contribute to
improve the productivity and profitability of customers. Operations are
primarily concentrated on areas where Sandvik is – or has the potential to
become – a world leader.
Ownership
The largest shareholders, in percent of
voting rights 31 December 2003, were AB Industrivärden (8.2), Morgan Chase Bank
(6.1), Robur Investment Funds (3.5), Svenska Handelsbanken's Pension Foundation
(3.5), Svenska Handelsbanken's Investment funds (3.2) and AMF Pension (3.2).
Group executive management
Clas Ake Hedström is Chairman of the Board
and Lars Pettersson President and Chief Executive Officer of Sandvik AB.
Research and development
The Sandvik Group is firmly committed to
research. In 2003, SEK 1,900 M (4% of annual sales) was invested in research
and development and quality assurance, an area which employs 2,200 persons.
PRESS
RELEASES :
Delisting of Securities of Sandvik Asia Limited
This is to inform that the securities of Sandvik Asia Limited. (Scrip Code No.500374) will be struck-off (delisted) from the list of Officially Quoted Securities with effect from Monday, the 9th September, 2002, pursuant to the compliance with Clause 21(3)(a) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 by the Acquirer (i.e. Sandvik AB).
The Acquirers have agreed to provide an exit option to the existing shareholders at Rs.850/- per share at any time during one year from the date of delisting. The shareholders who desire to opt for the exit option will have to send their shares to the undermentioned address:
|
For shares in physical form |
For shares in demat form |
|
Sandvik Asia Limited. |
Karvy Consultants
Limited. |
The company has also agreed to resolve investor complaints (if any) pending and received hereafter for a period of one year from the date of delisting to the satisfaction of the Exchange.
P. S. Reddy
General Manager-Listing
September 5, 2002
Sandvik
AB Effects of transition to International Financial Reporting Standards (IFRS)
As of 1 January 2005, Sandvik is applying the International Financial Reporting Standards (IFRS).
In this document, the comparative figures from 1 January 2004 have been
restated from the accounting principles applied previously, “Swedish GAAP”, to
IFRS. The interim report for the first quarter of 2005 will be the first
financial report that Sandvik provides in accordance with IFRS.
Sandvik is a high-technology engineering group with advanced products and world-leading positions in selected areas – tools for metalworking, machinery and tools for rock excavation, stainless steel, special alloys, metallic and ceramic resistance materials as well as process systems and sorting systems. The Group has 38,000 employees in 130 countries, with annual sales of approximately 55,000 SEK M.
SANDVIK
TUBING IN EUROPE
Sandvik Calamo, part of Sandvik Materials Technology, is offering stock availability of its high-purity tubing for semi-conductor manufacturing and clean gas applications from the new Sandvik distribution centre based at Venlo in the Netherlands. The new stock is designed to improve delivery service by being closer to customers, particularly in Benelux, Germany and France and to meet requirements for pipe-work, repair and refurbishment projects. Tubing is being held in imperial and metric sizes from 0.250" outside diameter x 0.035" thickness up to 1" x 0.065 and 6mm outside diameter x 1mm thickness up to 18mm x 1.5mm. The 12500 square meters, facility will service distributors and end users with not only high purity tubes, but also Sandvik’s standard, commercial range of stainless steel tube, pipe, bar, hollow bar, fittings and flanges.
PRECISION
PRESSURE TRANSMITTER
The new pressure transmitter ’x|act i’ from UK Instruments and Controls, has been developed with a basic element of a piezoresistive pressure sensor with high signal stability linearisation of the sensor signal and compensation of the thermal error, which is done by intelligent digital electronics. All media wetted parts are stainless steel 1.4435 (316L). Some key features include: 10:1 turndown ratio of pressure range, 170mbar through to 35 bar ranges, media temperatures up to 300C, full adjustability of zero, span and damping function by push buttons, 4-20mA output as standard with optional HART communication, integrated 3 level display with units, text and bar graph and stainless steel ball housing or die cast aluminium housing.
In November 2005 Stainless Steel World will organise
the fourth consecutive Stainless Steel World Conference & Expo in the MECC
Congress Centre in Maastricht, the Netherlands. The formula of this event will
be based on the successful formula of the Stainless Steel World 1999, 2001 and
2003 events in the Hague and Maastricht but will be extended with some new
elements in order to make it an even more attractive experience for the entire
industry.
- About 75 papers will be presented and about 15 workshops will be
organised by members of the Steering Committee and/or industry experts.
The end-user oriented Steering Committee will be chaired by Thierry
Cassagne, TotalFinaElf.
- Over 30 young engineers from major end users participated at the
so-called masterclasses which facilitated the exchange of information with
senior industry experts at the 2003 Conference. So again these masterclasses
will be part of the programme in 2005.
- Also Stainless Steel World will facilitate a special forum for
students who are involved in research work on corrosion resistant
alloys.The forum will be an informal get together where students will be
able to show their R & D work under progress that could be of interest
to users and/or producers of stainless steels.
- For the first time Stainless Steel World will organise a special
seminar on the application of stainless steels for Architectural Building
and Construction following on to the successful launch of the Stainless
Building Bulletin.
- For the first time both the promotion and simultaneous translations
in the English, German and French language will be offered during the
conference.
- The social programme including a plant tour and a partner programme
will be more comprehensive in order to facilitate networking
opportunities.Within this context the monumental city of Maastricht with
its bourgondian lifestyle, famous restaurants and museums is an obvious
choice for the venue.
- The largest exhibition purely dedicated to corrosion resistant
alloys will be organised in parallel with the Conference including
dedicated seminars statistics on product-market developments. Compared to
Stainless Steel World 2003 the Expo will be extended; they expect more
exhibiting companies, approximately 140-170 in total, and they expect to
attract around 3,500 visitors.
Based on the
organisers’ experience and the strong synergical effects of the Stainless Steel
World magazine, the Stainless Building Bulletin and associated websites more
than 350 conference delegates are expected.
Sandvik comments statement by Securities Council
Today, in a message, the Swedish Securities Council issued a statement
concerning Sandvik's sale of shares in its subsidiary Edmeston AB to an adult
daughter of the President of the subsidiary. The Securities Council believes
that the sale is a way of circumventing Sweden's so-called Leo regulations.
Sandvik has noted the statement of the Securities Council and will take it into
account in its future acting.
Sandviken, 8 February 2008
Sandvik AB; (publ)
Sandvik is a global industrial group with advanced products and world-leading
positions in selected areas - tools for metal cutting, machinery and tools for
rock excavation, stainless materials, special alloys, metallic and ceramic
resistance materials as well as process systems. The Group had at the end of
2007 about 47,000 employees and representation in 130 countries, with annual
sales of more than SEK 86,000 M.
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.40.53 |
|
UK Pound |
1 |
Rs.81.54 |
|
Euro |
1 |
Rs.62.40 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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 |
|