MIRA
INFORM REPORT
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Report Date : |
20.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUNDARAM INDUSTRIES LIMITED |
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Registered Office : |
“TVS Building”, 7-B, West Veli Street, Madurai – 625001 Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
19.05.1943 |
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Com. Reg. No.: |
002656 |
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CIN No.: [Company
Identification No.] |
U65991TN1943PTC002656 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPNS00685G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing of parts and accessories for motor vehicles and their engines. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 1627200 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track. Financial position is good. Payments are always correct and as per commitments. The company can be considered good for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
“TVS Building”, 7-B, West Veli Street, Madurai – 625001, Tamilnadu, India |
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Tel. No.: |
91-44-28520781 |
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Fax No.: |
91-44-28524812 |
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Email : |
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Factory: |
23, Usilampatti Road, Kochadai, Ponmeni Village, Madurai – 625016, Tamilnadu |
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Tel. No.: |
91-452-1381531 |
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Fax No.: |
91-452-2381240 |
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Corporate Office : |
A1-F3, New Sidco, Opp. Telephone Exchange, Maraimalal Nagar – 603209, Tamilnadu |
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Tel. No.: |
91-4114-52888 |
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Branches: |
Located at: v Plot No.238, G.V.M.A.V.Limited, Odhav Village, Ahmedabad 382 410, Gujarat Tel. No. 91-79-2870193/2871857 v Ward No. X1, Building No. 92, Punnapra P.O. 688 004, Alleppey Dist., Kerala Tel. No. 91-477-257662 v 701,Majgoan Indl. Estate, Khanapur Raod, Udyambag, Belgaum 590 008, Karnataka Tel. No. 91-831-2440918/2442945 v Cheruvannu Panchayat, Kuttikullam, Kolathara, Calicut 673 655, Kerala Tel. No. 91-495-2402020 v 180, Mount Road, Chennai 600 006, Tamilnadu Tel. No. 91-44-28525288/28525560 v Meetupalayam road, Coimbatore 641 043 Tel. No. 91-422-2441525/2457974 v D2-5-Corlim Indl.Estate, Corlim iihas, Goa 403 110 Tel. No. 91-832-285576/285003 v A-3, Sidco Industrial Estate, Hosur-635126, Tamilnadu v Plot No.B-35 & 36, III phase, Adityapur Indl.Area, Jamshadpur 831 013, Bihar Tel. No. 91-657-2407443 v Kalamassery South, Alwaye, Kalamaserry 683 104, Tamilnadu Tel. No. 91-484-2555514/2557913 v 8-A, Sidco New Industrial Estate, Salem Bye Pass Road, Vennamalai Road, Karur - 639 006, Tamilnadu Tel. No. 91-4324-20255 v Muthaiah pillai Mandapam, Sakkottai P.O. Kumbakonam 612401, Tamilnadu Tel. No. 91-435-2410833 v Usilampatti Road, Kochadai, Madurai 625 016, Tamilnadu Tel. No. 91-452-2782935/2781649 v Jeppu Ferry Road, P.B.No.216, Mangalore 575 001, Karnataka Tel. No. 91-824-2426772/2426964 v A1,F3-SIDCO indl.Estate, Maraimalai Nagar 603 209, Tamilnadu Tel. No. 91-4114-252888/254359 v Industrial Site 33/a, IIStage, Industrial Suburb Fort, Mohalla, Mysore 570 008, Karnataka Tel. No. 91-821-2486928/2482051 v Plot No.30, MIDC indl.Estate, Hingna Road, Nagpur 440 028, Maharashtra Tel. No. 91-7104-237335/237635 v E 11 & 12, Industrial Estate, Sarangapur, Nizamabad Dist. Nizamabad 503 186, Andhra Pradesh Tel. No. 91-8462-273150/273201 v Plot No. 51, Phase II, Peenya Industrial Area Banglore - 560 058, Karnataka Tel. No. 91-80-28395510/28395444 v A-57, PIDPIC , Industrial Estate, Mettupalayam, Pondicherry 605 010 Tel. No. 91-413-2371968 v Thirumayam Road, Pudukkotai 622 001, Tamilnadu Tel. No. 91-4322-265333/266286 v 20-198, Industrial Development Area, Dowlaiswaram, Rajamundry 533 124, Andhra Pradesh Tel. No. 91-883-277448/277528 v Kichipalayam Main Road, Salem 636 001, Tamilnadu Tel. No. 91-427-267299 v Mahatma Gandhi Road, Secunderabad 500 003, Andhra Pradesh Tel. No. 91-40-27540560/27543726 v Trivandrum Road, Tirunelveli 627 003, Tamilnadu Tel. No. 91-462-2573395/2572972 v Sri subramaniam Nagar, CIT Nagar, Trivandrum 695 003, Tamilnadu Tel. No. 91-471-2343355 v TS No.1489 / 1490 Ward, No.2,old Bye-pass Road, Vellore 632 004, Tamilnadu Tel. No. 91-416-223016
v 100 Feet Road, Jawahar Auto Nagar, Vijayawada 520 007, Andhra Pradesh Tel. No. 91-866-2543271 v A-5 and B-7, Industrial Estate, Visakhapatnam 530 007 Tel. No. 91-891-25528352/2559565 |
DIRECTORS
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Name : |
Mr. Pritha Ratnam Muthana |
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Designation : |
Joint Managing Director |
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Name : |
Mr. R. Naresh |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Gopal Srinvasan |
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Designation : |
Director |
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Name : |
Mr. K. Mahesh |
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Designation : |
Director |
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Name : |
Mr. K. Ramesh |
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Designation : |
Director |
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Name : |
Mr. Nicholas Sundaram |
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Designation : |
Director |
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Name : |
Mr. R. Haresh |
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Designation : |
Director |
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Name : |
Mr. S. Ram |
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Designation : |
Director |
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Name : |
Mr. S. Viji |
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Designation : |
Director |
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Name : |
Mrs. Shobhana Ramachandhran |
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Designation : |
Director |
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Name : |
Mr. Srinath R. Rajam |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. K. S. Viswanathan |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of parts and accessories for motor vehicles and their engines. |
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Products : |
Its products range includes:
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GENERAL
INFORMATION
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No. of Employees : |
3000 |
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Bankers : |
State Bank of India |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Sundaram and Srinivasan Chartered Accountants |
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Parent Company : |
TVS and Sons Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.200 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2520000 |
Equity Shares |
Rs.10/- each |
Rs.25.200 millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
25.200 |
25.200 |
25.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
381.600 |
309.200 |
216.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
406.800 |
334.400 |
241.500 |
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LOAN FUNDS |
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1] Secured Loans |
313.800 |
187.300 |
191.400 |
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2] Unsecured Loans |
121.600 |
25.500 |
36.900 |
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TOTAL BORROWING |
435.400 |
212.800 |
228.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
842.200 |
547.200 |
469.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
376.100 |
241.000 |
211.200 |
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Capital work-in-progress |
3.500 |
27.400 |
0.800 |
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INVESTMENT |
101.400 |
38.600 |
66.100 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
292.100
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176.200 |
163.300 |
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Sundry Debtors |
344.600
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282.000 |
243.100 |
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Cash & Bank Balances |
50.300
|
80.000 |
30.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
157.100
|
140.600 |
121.000 |
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Total
Current Assets |
844.100
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678.800 |
557.600 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
401.900
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353.300 |
294.400 |
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Provisions |
82.000
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88.800 |
80.700 |
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Total
Current Liabilities |
483.900
|
442.100 |
375.100 |
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Net Current Assets |
360.200
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236.700 |
182.500 |
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MISCELLANEOUS EXPENSES |
1.000 |
3.500 |
9.200 |
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TOTAL |
842.200 |
547.200 |
469.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2110.700 |
1775.700 |
1670.300 |
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Other Income |
226.900 |
204.400 |
162.800 |
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Stock Adjustments |
26.900 |
0.000 |
0.000 |
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Total Income |
2364.500 |
1980.100 |
1833.100 |
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Profit/(Loss) Before Tax |
260.700 |
180.600 |
178.800 |
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Provision for Taxation |
27.500 |
7.600 |
23.000 |
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Profit/(Loss) After Tax |
233.200 |
173.000 |
155.800 |
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Expenditures : |
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Raw Material Consumed |
1094.500 |
899.100 |
911.700 |
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Excise Duty |
198.400 |
108.400 |
113.800 |
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Power and Fuel |
74.200 |
67.000 |
66.000 |
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Manufacturing Expenses |
56.800 |
51.000 |
41.900 |
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Employee Cost |
309.900 |
298.900 |
189.300 |
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Administrative and Selling Expenses |
258.000 |
264.300 |
241.900 |
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Miscellaneous Expenses |
25.900 |
40.400 |
26.000 |
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Interests and Finance |
31.600 |
24.700 |
20.400 |
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Depreciation & Amortization |
54.500 |
45.700 |
43.300 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
2103.800 |
1799.500 |
1654.300 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
9.86
|
8.74 |
8.50 |
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Net Profit Margin (PBT/Sales) |
(%) |
12.35
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10.17 |
10.70 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
21.36
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19.63 |
23.26 |
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Return on Investment (ROI) (PBT/Networth) |
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0.64
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0.54 |
0.74 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.26
|
1.96 |
2.50 |
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Current Ratio (Current Asset/Current Liability) |
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1.74
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1.53 |
1.49 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE AND PROSPECTS RUBBER DIVISION:
The turnover of Rubber Division for the year ended was
Rs.1524.335 Millions as against Rs.1240.145 Millions in the previous year.
Inspite of the continuing increase in prices of input
materials such as Natural Rubber, Imported Chemicals, Synthetic Rubber and
Sheet Metal, the Division was able to maintain its profits for the year. This
was possible through control of costs.
During the year, slitting and grinding process for
manufacture of Radiator Gaskets was successfully introduced.
The Division has achieved TPM Consistency Award for
operational excellence from JIPM during 2006-07 and recertified for TS16949.
The sales growth of current year is expected to be at a more
moderate level compared to last year due to current market conditions. New
businesses are being planned through Joint Ventures.
TYRE SOLUTIONS DIVISION:
The turnover of the Division for the year 2006-07 was
Rs.501.979 Millions as compared to Rs.535.575 Millions in the previous year.
The business focus continued during the current year also on
the Commercial and OTR segments. With better realisation and operational
efficiency, the division was able to improve its performance during the current
year inspite of continuing increase in prices of raw materials.
SOLID TYRE DIVISION:
The Solid Tyre Division was established to manufacture
Industrial Solid Tyres forthe export market in Maraimalai Nagar. Commercial
Production of Phase I commenced in June 2006. The turnover for the year 2006 -
07 was Rs.84.355 Millions. The Division is in the process of implementing Phase
II of the project which is expected to be completed by September, 2007. The
Division is optimistic on the future of this business.
A. CONSERVATION OF ENERGY:
a) Energy conservation measures taken:
Rubber Division
- Idle off
systems has been implemented in injection and Compression presses by
switching off Motors 25HP/20 in curing time.
- To avoid heat
and energy loss, by modified system of vacum chambers semi closed in
curing time in Hanchang / Geco Presses.
- Motor HP
rating of cooling towers fan motors were reduced.
- Installed
energy efficient 2x28 watts flourescent light fitting with electronic
chokes in inspection area.
- Installed capacitors
in automatic powerfactor control panel for maintaining the maximum TNEB
incentive.
- Installed
delstar electronic module in all mill for energy saving.
- Installed
additional firewood boiler replacing the furnace oil boiler.
b) Additional Investments and proposals, if any, being
implemented for reduction in consumption of energy.
Proposals being considered for the future are:
- To install
latest efficient cooling tower fan motor with less HP for energy savings.
- To install
screw compressor in the place of reciprocating compressor to bring in
energy savings.
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.40.45 |
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UK Pound |
1 |
Rs.81.20 |
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Euro |
1 |
Rs.63.48 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
8 |
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OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
8 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
8 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
72 |
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. |
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 |
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