MIRA INFORM REPORT

 

 

Report Date :

26.05.2008

 

IDENTIFICATION DETAILS

 

Name :

ASAHI INDIA GLASS LIMITED

 

 

Registered Office :

12, Basant Lok, Vasant Vihar, New Delhi – 110 057

 

 

Country:

India

 

 

Financials (as on):

31.03.2007

 

 

Date of Incorporation :

10.12.1984

 

 

Com. Reg. No.:

55-19542

 

 

CIN No.:

[Company Identification No.]

L26102DL1984PLC019542

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELA00705F

 

 

PAN No.:

[Permanent Account No.]

AADCA7706R

 

 

Legal Form :

Public limited liability company.

The company’s shares are listed on the Stock Exchanges

 

 

Line of Business :

Manufacturing of Toughened Glasses and Laminated Glasses.

 

 

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

 

Maximum Credit Limit :

USD 11500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a successful Indo-Japanese Joint Venture. It is faring well and maintains progress in current recession. Available information indicates high financial responsibility of the company. Financial position is good. Payments are usually correct and as per commitments.

 

The company can be considered good for any normal business dealings.

 

It can be regarded as a promising business partner in a medium to long-run.

 

 

LOCATIONS

 

Registered Office :

12, Basant Lok, Vasant Vihar, New Delhi – 110 057, India

Tel. No.:

91-11-26142288/3536/3537/9403

Fax No.:

91-11-26142324/26148696

E-Mail :

slabroo@aisgl.com

Website :

http://www.aisgl.com

 

 

Sales and Marketing Head Office :

C-203/B, Forture 2000, Bandra - Kurla Commercial Complex,

Bandra (East), Mumbai - 400 051

Tel. No.:

91-22-3062 0101,3062 0107

Fax No.:

91-22-3062 0119

 

 

Corporate Office :

5th Floor, Tower B, Global Business Park, Meharauli, Gurgaon Road, Gurgaon – 122 022, Haryana

Tel. No.:

Tel. 91-124-28962212-19

Fax No.:

Fax. 91-124-28962288/44

E-Mail :

E-mail. mukhija@aisgl.com

 

 

Factory  :

Works (Auto)

 

94.4 Kms. Stone, Delhi - Jaipur Highway, Village jaliawas, Tehsil Bawal, Dist. Rewari -123 501, (Haryana)

Tel: 91-1284 - 260366, 260367,260774

Fax: 91-1284 – 260185

 

Plot No. T-i6, MIDC Industrial Area, Taloja, Dist. Raigad - 410208

Tel: 91-22-27410171-74

Fax:91-22-27410090

 

Plot No. F-76 to 81, SI.PCOT, Industrial Park, Irungattukottai,

Sriperumpdur Taluk, District Kancheepuram, Tamil Nadu -602105

Tel: 91-4111500442,500443

Fax: 91-4111500441

 

Works (Float)

 

Plot No. T-7, MIDC Industrial Area, Taloja, Dist. Raigad -410208

Tel: 91-22-27410171-74

Fax:91-22-27410090

 

Village- Latherdeva Hoond, PO: jhabreda Pargana - Mangalaur, Teh. Roorkee, Dist. Haridwar, Uttaranchal - 247667

Tel: 91-1-332-224114

 

 

 

Zonal Office :

West

C-203/B, Forture 2000, Bandra - Kurla Commercial Complex,

Bandra (East), Mumbai - 400 051

Tel: 91-22-3062 0101,3062 0107

Fax:91-22-30620119

 

North

0-986, New Friends Colony,

New Delhi-110 065

Tel.: 91-11- 26311105/1186/1197

Fax: 91-11- 26311198                      

 

South & East

Pettukola Towers, 4th Floor, 190 - A,

Poonamalee High Road,

Chennai-6oooio

Tel.: 91-44-2642 3698/2642 0716

Fax: 91-44-2642 0651

 

 

DIRECTORS

 

Name :

Mr. B. M. Labroo

Designation :

Chairman

Age :

76 Years

Qualification :

M. A. (Political Science) from Punjab University

Experience :

In Marketing, Finance, Corporate Governance

Other Directorships :

  • United Spirits Limited (UB Group Company)
  • Shield Autoglass Limited
  • Samir Paging Systems Limited

 

 

Name :

Mr. Sanjay Labroo

Designation :

Managing Director & Chief Executive Officer

Age :

45 Years

Qualification :

Graduate in Finance and Management from Wharton School of Business and Finance, Pennsylvania, USA

Other Directorships :

  • AIS Adhesives Limited
  • AIS Glass Solutions Limited
  • Asahi India Map Auto Glass Limited
  • Automartindia Limited
  • Ballarpur Industries Limited
  • Crompton Greaves Limited
  • Krishna maruti Limited
  • Shield Autoglass Limited
  • SKH Metals Limited

Profile :

Mr. Labroo has been nominated by the Government of India as a Director on

the Central Board of the Reserve Bank of India. Mr. Labroo has also been associated with various chambers of commerce and trade organizations. Mr. Labroo is currently the Vice President of Auto Components Manufacturers' Association (ACMA) and the Vice Chairman of All India Flat Glass Manufacturers' Association.

 

 

Name :

Mr. K. Miyazawa

Designation :

Technical Director

 

 

Name :

Mr. Surinder Kapur

Designation :

Director

Age :

63 Years

Qualification :

Doctorate in Mechanical Engineering from Michigan State University, USA

M.S. and a B.S. in Engineering from USA.

Other Directorships :

  • Sona Koyo Steering Systems Limited
  • Cosmo Films Limited
  • Greaves Cotton Limited
  • Mahindra Sona Limited
  • Sona Group Companies

Profile :

Sona Group, an industrial conglomerate was promoted by Dr. Kapur in 1987 to manufacture auto components for the Indian automotive industry. The Group comprises of Sona Koyo Steering Systems Limited. (SKSSL) and includes other group companies - Sona Okegawa Precision Forgings Limited. (SOPL), Mahindra Sona Limited (MSL), Sona Somic Lemforder Components Limited. (SSLCL), Sona Cold Forgings Limited (SCFL), Sona e-Design & Technologies Limited (Se-DAT) and Fuji Autotec France S.A.S. set up in technical and financial collaboration with reputed global auto suppliers, who are world-leaders in these components/systems. Dr. Kapur has also been associated with various chambers of commerce and trade organizations. Presently, he is a member of the National Manufacturing Competitiveness Council and the Chairman of CII's “Mission on Innovation in Manufacturing”. He is also a member of the Automotive Mission Plan (2006-2016) set up by Ministry of Heavy Industry, Government of India.

 

 

Name :

Mr. Jagdish Khattar

Designation :

Director

Age :

64 Years

Qualification :

Bachelor in Arts (with Honours) degree from St. Stephen's College and L.L.B. from the University of Delhi.

Experience :

Indian Administrative Services and has more than 41 years of total experience.

Other Directorships :

Maruti Udyog Limited. in July, 1993

Profile :

Mr. Khattar was appointed as Director on the Board of AIS in April, 2005 as a nominee of Maruti Udyog Limited He is a Director on the Board of several other companies. Mr. Khattar is the President of Automotive Research Association of India (ARAI) and a member of Empowered Committee on National Automotive Testing and R&D Infrastructure Project (NATRIP), a government supported project to set up world-class automotive testing facilities in India.

 

 

Name :

P. Kirschen

Designation :

Director

 

 

Name :

Mr. Gautam Thapar

Designation :

Director

Age :

46 Years

Qualification :

Graduate in Chemical Engineering from Pratt University, USA

Profile :

Mr. Thapar is the Chairman of Thapar Group. The Group operates in six sectors - Power Equipments, Forestry, Agri Business, Chemicals, Utilities, Infrastructure and IT. The Group companies include, Crompton Greaves Limited, India's largest power equipment company and Ballarpur Industries Limited, India's largest forest products company. Mr. Thapar started his career as a factory assistant in one of the family manufacturing companies and has steadily risen through the organization to the current position. He is the third generation of the family to head the business. Mr. Thapar is active in business and corporate sectors. He is an active office bearer of CII and currently serves as a Trustee on a number of Institutions, including Vice Chairman of Aspen Institute, India and Pratham Education Trust. He is also a Director on the Board of several other companies in India and abroad.

 

 

Name :

Mr. P. L. Safaya

Designation :

Director & Chief Operating Officer (Float)

Age :

60 Years

Qualification :

B.Tech. in Metallurgy from Ranchi University.

Profile :

Mr. Safaya is currently the Director & Chief Operating Officer of the Float Glass SBU of AIS. Mr. Safaya joined AIS in November, 1985 and held various positions. Mr. Safaya is also a Director on the Board of AIS Adhesives Limited and AIS Glass Solutions Limited.

 

 

Name :

Mr. Arvind Singh

Designation :

Director & Chief Operating Officer (Auto)

Age :

43 Years

Qualification :

M.B.A. from International Management Institute, New Delhi

Experience :

22 years of experience in corporate planning and business development functions.

Profile :

Mr. Singh is the Director & Chief Operating Officer of the Auto Glass SBU of AIS. Mr. Singh joined AIS in May, 1991 and held various positions. Mr. Singh is also a Director on the Board of Asahi India Map Auto Glass Limited, AIS Glass Solutions Limited and Shield Autoglass Limited.

 

 

Name :

Mr. Keizaburo Kojima

Designation :

Director (Technical)

Age :

60 Years

Qualification :

Master's degree from School of Science & Technology, Keio University, Tokyo

Other Directorships :

  • Asahi Glass Company Limited (AGC) in 1972
  • Shield Autoglass Limited

Profile :

Mr. Kojima has been on the Board of AIS since 2005 as a nominee of AGC.

 

 

Name :

Mr. Masayuki Kamiya

Designation :

Director

Age :

57 Years

Qualification :

Hitotsubashi University, Japan.

Advanced Management Program from Harvard Business School in 2000.

Other Directorships :

Flat Glass Company of AGC, since May, 2005.

Profile :

Mr. Kamiya has been on the Board of AIS as a nominee of AGC since 2006. He is also a member on the Board of Glaverbel LLC.

 

 

Name :

Mr. Rahul Rana

Designation :

Director

Age :

44 Years

Qualification :

M.B.A. degree from the University of lllinois at Urbana Champaign, USA and a B.S. in Finance from S.R.C.C, University of Delhi.

Profile :

Mr. Rana is the Chief Executive Officer of SAMCO, a subsidiary of EFG Bank, New York. Prior to his joining SAMCO, Mr. Rana was President of the BSG Markets (BroadStreet Group) for the previous 3 years where he was responsible for the structured finance and asset securitization businesses. Previously, over a span of 10 years, Mr. Rana was co-head of the structured products group at UBS Warburg Dillon Read and Kidder Peabody. Mr. Rana started his career at Salomon Brothers where he was instrumental in starting the Global Asset Swap business.

 

 

Name :

Mr. Kazumi Yoshimura

Designation :

Director

Age :

59 Years

Qualification :

Graduate in Law from Hitotsubashi University, Japan

Profile :

Mr. Yoshimura has been with Mitshubishi Corporation, Tokyo since 1973. He is presently the Senior Vice President, Mitsubishi Corporation, Tokyo and Chairman & Managing Director, Mitsubishi Corporation India Pvt. Limited and also serves as the General Manager of Mitsubishi Corporation India's Mumbai & Kolkata Branch Offices. Mr. Yoshimura became President of Japan Chambers of Commerce & Industry in India (JCCII), a prestigious association of Japanese companies and organizations in April, 2007. He has also been holding the position of Vice Chairman & Director of Snowman Frozen Foods Limited.

 

 

KEY EXECUTIVES

 

Name :

AIS (Corporate)

Designation :

Chief Executive Officer

 

 

Name :

Mr. K. Miyazawa

Designation :

Technical Director

 

 

Name :

Mr. P. L. Safaya

Designation :

Director & Chief Operating Officer (Float) Corporate Head - HR, Administration, Development

 

 

Name :

Mr. A. Singh

Designation :

Director & Chief Operating Officer (Auto) Corporate Head - Planning & IT

 

 

Name :

Mr. K. Narayan

Designation :

Director & Chief Operating Officer (Glass Solutions)

 

 

Name :

Mr. H. D. Daftary

Designation :

Corporate Head - Finance/Chief Financial Officer

 

 

Name :

Mr. S. Ganjoo

Designation :

It. Corporate Head – Development

 

 

Name :

Mr. V. Khanna

Designation :

Corporate Head - Supply Chain Management

 

 

Name :

Mr. Rajesh Mukhija

Designation :

Corporate Head - Legal, Investor Relations, Audit and Company Secretary

 

 

Name :

Mr. R. Shelly

Designation :

Joint Corporate Head - Development

 

 

Name :

Mr. Anil Ahuja

Designation :

Production Head

 

 

Name :

Mr. Vijay Arora

Designation :

Head – Electrical

 

 

Name :

Mr. Mirza Asif Beg

Designation :

Head –Quality Assurance

 

 

Name :

Mr. H. Itoh

Designation :

Technical Advisor

 

 

Name :

Mr. B.S. Kanwar –

Designation :

V.P. – Plant

 

 

Name :

Mr. Farhiz Karanjawala

Designation :

Head – Information Systems

 

 

Name :

Mr. Vikram Khanna

Designation :

 V.P. – Commercial

 

 

Name :

Mr. R. Krishnan Plant

Designation :

 Head – Chennai

 

 

Name :

Mr. Ashok Kumar

Designation :

Head -Finance & Accounts

 

 

Name :

Mr. M. Kumar

Designation :

Head - Power & Energy

 

 

Name :

Mr. Prataosh Kumar

Designation :

Head – Materials

 

 

Name :

Mr. Navin Rai

Designation :

Head – Mechanical

 

 

Name :

Mr. Vikas Saxena

Designation :

Head - After Market

 

 

Name :

Mrs. Archana Singh

Designation :

Head - Planning & MIS

 

 

Name :

Mr. Amit Sood

Designation :

Head – Marketing

 

 

Name :

Mr. Pratul Swarup

Designation :

Head - New Projects

 

 

Name :

Mr. Takahiro Yamamoto

Designation :

Technical Advisor

 

 

Name :

Mr. P. L. Safaya

Designation :

Director & C.O.O.

 

 

Name :

Mr. 0. Capore

Designation :

Head-Sales & Marketing

 

 

Name :

Mr. A. K. Chakraborty

Designation :

Head –Quality Assurance

 

 

Name :

Mr. V. K. Chamola

Designation :

Head - Finance & Accounts

 

 

Name :

Mr. H. D. Daftary

Designation :

Executive Director (S&M / F&A)

 

 

Name :

Mr. H. L. Jain

Designation :

Head -Silica Sand Processing Plant

 

 

Name :

Mr. Ashishkumar G. Joshi

Designation :

 Head-HR& Administration

 

 

Name :

Mr. Satish Kumar

Designation :

 Head – Production Planning

 

 

Name :

Mr. Jagdish D. Mayekar

Designation :

 Head – MIS

 

 

Name :

Mr. G. C. Panigrahi

Designation :

Head –Technicals Operations

 

 

Name :

Mr. Manoj S. Ranadive

Designation :

(Or.) Head – Medical Services

 

 

Name :

Mr. N. A. Shetty

Designation :

Head - Materials & Logistics

 

 

Name :

Mr. K. Narayan

Designation :

Director & C.O.O.

 

 

Name :

Mr. Sudip Chakravarti Zonal

Designation :

Head – North & East Zone

 

 

Name :

Mr. Tarun Hingorani Zonal

Designation :

Head – West Zone

 

 

Name :

Mr. Amit Jain

Designation :

Manager – Finance & Accounts

 

 

Name :

Mr. B.S. Rawat

Designation :

Manager –CSD

 

 

Name :

Mr. Raj Singh Rawat

Designation :

Manager - Dispatches & Logistics

 

 

Name :

Mr. Sukhdev Singh Rawat

Designation :

Zonal Head – South Zone

 

 

Name :

Mr. Sandeep Shukla

Designation :

Manager – Marketings Communications  

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2007

 

Names of Shareholders

No. of Shares

Percentage of Holding

Promoters' Holdings

 

 

Indian Promoters

48078008

30.06

Foreign Promoters

40638000

25.41

Persons Acting in Concert

--

--

Sub Total

88716008

55.47

 

 

 

Non Promoter's Holdings

 

 

Mutual Funds and UTI

4350364

2.72

Banks, Financial Institutions and  Insurance Companies

484999

0.31

FIIs

7407095

4.63

Total

12242458

7.66

 

 

 

Others 

 

 

Private Corporate Bodies

18941177

11.84

Indian Public

36154372

22.61

NRI’s/OCB’s/Foreign Others

3455260

2.16

Any other Director or Relatives

418311

0.26

Sub Total

58969120

36.87

Grand Total

159927586

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Toughened Glasses and Laminated Glasses.

 

 

Products :

Toughened (Tempered) Safety Glass Ch. H. No. 7004-10

a)       Laminated Safety Glass

Laminated Architectural Safety Glass Ch. H. No. 7004-20

Float Glass – Clear 7005.10

Float Glass – Tinted 7005.21

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

 

 

 

 

 

Toughened Glass

 

Sq. Meters

3920000

3448074

Laminated Glass

 

Nos.

2270000

2002137

Float Glass

 

Conv. Sq. Mtrs.

73720000

38999031

Architectural Glass

 

Sq. Meters

900000

361429

 

 

GENERAL INFORMATION

 

Customers :

Ř       Maruti Suzuki

Ř       Hyundai

Ř       Telco

Ř       Toyoto Kirloskar

Ř       Mahindra and Mahindra

Ř       Ford India

Ř       Honda Siel

Ř       Hindustan Motors

Ř       General Motors

Ř       Fiat India

Ř       Daewoo Motors

Ř       Volvo

Ř       Eicher Motors

Ř       Fiat India

Ř       Swaraj Mazda

Ř       Reva

Ř       UZ-Daewoo (Uzbekistan)

Ř       Fiat India

Ř       Piaggio Greaves

 

 

Bankers :
  • The Bank of Tokyo-Mitsubishi Limited
  • The Jammu & Kashmir Bank Limited
  • State Bank of India
  • Standard Chartered Bank
  • ICICIBank
  • CITI Bank N A
  • Punjab National Bank
  • HDFCBank
  • Corporation Bank
  • Mizuho Corporate Bank Limited
  • State Bank of Mysore
  • ABN Amro Bank

 

 

Facilities :

SECURED LOANS

31.03.2007

Particulars

Rs. (in millions)

Working Capital 

3044.700

Foreign Currency Term Loans

3394.700

Total

6439.400

Others

 

Foreign Currency Term Loan

2826.200

Loan from Distt. Industries Centre Government of Haryana (Interest Free)

190.000

Total

3016.200

 

 

Total

9455.600

 

UNSECURED LOANS

31.03.2007

Particulars

Rs. (in millions)

Short Term / Bridge Loans From Banks

866.500

From Others-Foreign Currency Loan (Interest Free)

2075.300

Total

2941.800

 

 

 

Banking Relations :

Good

 

 

Auditors 1:

 

Name :

Jagdish Sapra and Company

Chartered Accountants

Address :

23, Prakash Apartments, 5, Ansari Road, Daryaganj, New Delhi, India

 

 

Internal Auditors :

 

Name :

GSA and Associates

Chartered Accountants

 

 

Subsidiaries :
  • Float Glass India Limited

 

 

Associates :

§         ASI Welkin Auto Glass Services Limited

  • Asahi India Map Auto Glass Limited
  • Asahi Glass Company Limited, Japan
  • Maruti Udyog Limited
  • The Indo-Asahi Glass Company Limited
  • B. M. Labroo & Associates

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000000

Equity Shares

Rs. 1/- each

Rs. 500.000 millions

600000
Preference Shares

Rs. 100/- each

Rs. 60.000 millions

9000000
Preference Shares

Rs. 10/- each

Rs. 90.000 millions

 

Total

 

Rs. 650.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

159927586

Equity Shares

Rs. 1/- each

Rs. 159.900 millions

600000
Preference Shares

Rs. 100/- each

Rs. 60.000 millions

 

Total

 

Rs. 219.900 millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

219.900

219.900

139.964

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2651.200

2348.900

1675.681

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

2871.100

2568.800

1815.645

LOAN FUNDS

 

 

 

1] Secured Loans

9455.600

5845.700

1762.386

2] Unsecured Loans

2941.800

2821.700

2688.259
TOTAL BORROWING

12397.400

8667.400

4450.645

DEFERRED TAX LIABILITIES

238.900

0.000

0.000
 

 

 

 
TOTAL

15507.400

11236.200

6266.290
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

10999.300

4863.200

3560.801
Capital work-in-progress

2021.800

4854.900

1244.435
 

 

 

 
INVESTMENT

59.200

63.800

57.761
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
2414.500
1497.100
1168.338
 
Sundry Debtors
703.600
315.300
744.937
 
Cash & Bank Balances
240.100
80.900
94.602
 
Other Current Assets
123.900
0.000
75.640
 
Loans & Advances
1199.900
1535.700
411.030
Total Current Assets
4682.000
3429.000
2494.547
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities
2231.900
1843.900
926.021
 
Provisions
32.700
132.000
167.624
Total Current Liabilities
2264.600
1975.900
1093.645
Net Current Assets
2264.600
1453.100
1400.902
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

1.200

2.391
 

 

 

 
TOTAL

15507.400

11236.200

6266.290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

7618.400

5876.700

5960.854

Other Income

226.300

36.500

0.000

Total Income

7844.700

5913.200

5960.854

 

 

 

 

Profit/(Loss) Before Tax

632.400

912.400

852.621

Provision for Taxation

209.000

49.700

67.000

Profit/(Loss) After Tax

423.400

862.700

785.621

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

391.200

(83.100)

230.908

 

Commission Earnings

0.400

(0.900)

0.000

Total Earnings

391.600

(84.000)

230.908

 

 

 

 

Imports :

 

 

 

 

Raw Materials

1382.000

(1328.000)

 

Stores & Spares

238.500

(147.600)

 

 

Capital Goods

1803.000

(2045.900)

1406.086

 

Others

58.700

(73.900)

 

Total Imports

3482.200

(3482.200)

1406.086

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

4357.400

3345.700

 

Administrative Expenses

1636.900

1037.300

5108.233

 

Managerial Remuneration

556.300

431.700

 

 

Depreciation & Amortization

652.700

463.800

 

Total Expenditure

7203.300

5278.500

5108.233

 

 

SUMMARISED RESULTS

 

PARTICULARS

 

 

 

31.03.2008

Type

 

 

Full Year

Sales Turnover

 

 

9935.300

Other Income

 

 

602.800

Total Income

 

 

10538.100

Total Expenditure

 

 

8489.700

Operating Profit

 

 

2048.400

Interest

 

 

847.600

Gross Profit

 

 

1200.800

Depreciation

 

 

1005.000

Tax

 

 

16.900

Reported PAT

 

 

133.400

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

3.87

2.99

2.20

Long Term Debt-Equity Ratio

2.75

2.01

1.44

Current Ratio

0.78

0.81

1.00

TURNOVER RATIOS

 

 

 

Fixed Assets

0.70

0.80

0.92

Inventory

4.49

5.12

6.01

Debtors

17.24

12.88

9.91

Interest Cover Ratio

2.34

9.74

21.95

Operating Profit Margin(%)

17.52

17.82

19.18

Profit Before Interest And Tax Margin(%)

10.09

16.89

13.21

Cash Profit Margin(%)

11.39

15.13

17.58

Adjusted Net Profit Margin(%)

3.96

14.20

11.62

Return On Capital Employed(%)

6.69

13.18

17.17

Return On Net Worth(%)

13.07

45.49

51.16

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History

 

Subject was incorporated on 10th December 1984 at New Delhi under the name and style of Asahi India Safety Glass Limited having Company Registration Number 19542.

 

The name of the company was changed to present upon the conversion into a Public Limited Liability Company on 31st December 1985.

 

The company manufactures toughened glass. It was promoted by Asahi Glass Company Limited of Japan, Maruti Udyog Limited, The Indo-Asahi Glass Company Limited and B. M. Labroo and Associates. It proposed to manufacture 0.26 millions Sq.mtrs. of toughened glasses for solar panels and T.V. Building machinery.

 

In 1999-2000, the company received the “Best Performing Vendor” Award from Maruti Udyog at Maruti Vendor conference for the year 1998-99.

 

In December 1984 as Indian Auto Safety Glasses was converted into a public limited company in December, 1985. It was promoted as a joint venture by Maruti Udyog, Asahi Glass Company, Japan and B.M. Labroo and Associates. Asahi Glass Company, Japan provides the technical assistance to the company. The company had 79.61% stakes in Float Glass with Asahi Glass Company of Japan transferring its entire stake in latter to the company.

 

In 1999-2000, the company received the “Best Performing Vendor” Award from Maruti Udyog at Maruti Vendor Conference for the year 1998-99.

 

The company is entering into a joint venture with one of its distributors Map Auto and shall be making trade investment in and acquire 1,00,000 (50%) equity shares in Map Auto Glasses. The remaining 50% will be subscribed by Map Auto Limited. Subsequent to the investment, the name of the company shall be changed from Map Auto Glasses to Asahi India Map Auto Glass.

 

The company had 79.61% stake in Float Glass India limited has amalgamated the latter with itself w.e.f. April 2002.

 

The company's name changed from Asahi India Safety Glass Ltd to Asahi India Glass Limited with effect from 26th September 2002. 

 
The second automotive glass plant of the company, which was set up at Chennai has commenced commercial production from 1st January 2005. The Chennai plant with an initial capacity of 500000 laminated windshields has been set up in a modular fashion, which will eventually have a total capacity of 1.50 million laminated windshields and 1 million car sets.

 
The company has proposed to setting up its single largest integrated glass plant at Roorkee in the state of Uttaranchal with an estimated projected cost of Rs.6000 millions. The plant would be an integrated composite plant with manufacturing facilities for value added glass and glass products including reflective glass, mirror, automotive safety glass and processed glass and float glass. The plant is expected to be completed by the end of 2006.The float glass unit being set up in the plant with a capacity of 700 MT per day will be completed and commissioned in the year 2006. 

 
AIS issued bonus equity shares to its equity shareholders in the ratio of 1:1 in September 2005.

 

 

The First Wave : 1984 - 90

The story begins in the mid 1980's. Maruti Udyog Limited, (Maruti) was seeking to set up joint ventures for some key components in an effort to establish indigenous sourcing of quality components for its vehicles. Safety Glass was one of these components.

 

Foreseeing the country’s economic potential and anticipating a strong growth in the Indian passenger car industry in the years to come, the idea of entering the safety glass business in the auto-components industry took shape in the minds of Mr. B. M. Labroo and Mr. Sanjay Labroo (AIS’s current Chairman and Managing Director & C.E.O. respectively).

 

Key actions :

 

Results :

 

The Second Wave : 1991 - 95

The Gulf crisis leading to steep increase in fuel cost, adverse BOP situation leading to stringent import restrictions, withdrawal of OGL facility for import of float glass, falling rupee exchange rate, and credit squeeze by banks resulted in tough economic conditions in the early part of this period. Subsequently, this phase witnessed sweeping economic reforms in the country with effects on foreign exchange, foreign direct investment and money supply.

 

AIS engineered its way forward with strategic alignment of its business goals with the prevailing conditions.

 

Key actions :

 

Results :

 

The Third Wave : 1996 - 2003

The Liberalization - Privatization - Globalization measures of the Government under its new economic policies started showing significant results. Delicensing of the automotive industry resulted in significant investments into this industry with the announcement of new ventures for manufacture of passenger cars. The Indian automobile industry, in the wake of a vastly liberalised Government’s policies, firmly set its foot on the first step of a new phase of growth. This was the defining phase for the Indian automobile industry. Higher targets were set and successfully achieved by all established vehicle manufacturers. Industry analysts predicted passenger car production touching the one million per annum mark before the turn of the century.

 

Growth seemed imminent, and so did opportunities.

 

This phase provided another landmark opportunity to AIS. AIS took over Floatglass India Limited (FGI), a joint venture between Asahi Glass Co., Limited, (AGC) and three TATA group companies. This was a defining phase for AIS to expand its vision and move towards the larger goal of spanning the entire value chain in the glass business. At the same time, FGI's accumulated losses of approximately Rs. 4480.000 millions carried inherent risk for AIS.

 

Key Actions :

 

Results :

 

The Fourth Wave : 2004 onwards

 

Indian economy’s juggernaut continues to roll, scoring high on various parameters of - demand, supply, consumption, purchasing power, etc. India is booming and is poised to consistently grow at over 7 percent. Inflection points are being hit in many parts of the economy. The Auto and Housing sectors, which drive demand for automotive and architectural glass, are growing between 10 - 15 percent per annum. At the same time, domestic competition is intensifying. Globalization, lower tariffs and a strong Rupee also mean external competition is intensifying.

 

These are defining moments for all in India.

 

There is a glorious opportunity, but this opportunity will be available only to a few - the leaders in their respective sectors.

 

AIS, India’s largest glass Company is well positioned to harness this opportunity through its “Integrated Glass Strategy”.

 

Key actions :

The key initiatives being taken by AIS include :

 

 

AIS is the largest integrated glass company in India, manufacturing a wide range of international quality automotive safety glass, float glass and value-added glass like reflective glass, mirror and architectural processed glass.

 

AIS is a widely held public limited company, with a shareholding base of over 62,000 equity shareholders. The equity shares of AIS are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

 

AIS is jointly promoted by the Labroo family and Asahi Glass Co. Limited, Japan with Maruti Udyog Limited, holding a minority stake. Promoters hold 55.5 percent of paid up equity capital of AIS, with remaining 44.5 percent held by public at large.

 

AIS has three Strategic Business Units :

 

AIS Auto Glass

AIS Auto Glass is India's largest manufacturer of world-class automotive safety glass and is one of the largest auto glass makers in Asia.

 

In India, AIS Auto Glass is the sole or leading supplier of automotive glass to most car manufacturers, supplying nearly 80 percent of the automotive glass requirement of the passenger car industry. It also has a dominant presence in the domestic after market with a market share of 45 percent. Besides, it is also exporting automotive glass to after markets in Europe and Pakistan.

 

It’s two state-of-the-art manufacturing Plants are located at Rewari (North India) and Chennai (South India). These plants have a combined production capacity of 2.5 million car sets per annum.

 

AIS Auto Glass customers include India’s leading automobile players like Maruti Udyog, Hyundai Motors, Tata Motors, Toyota, Mahindra & Mahindra, Honda, General Motors, Ford India, Hindustan Motors, Fiat India, Volvo, Eicher and Piaggio.

 

AIS Auto Glass manufactures a wide range of products like :

 

AIS Float Glass

AIS Float Glass is a premier manufacturer of international quality float glass and value-added glass like reflective glass and mirror.

 

It has two state-of-the-art glass manufacturing plants with a total production capacity of 1200 tons per day located at Taloja near Mumbai (West India) and Roorkee (North India). Its newly commissioned plant at Roorkee is an Integrated Glass Plant, with manufacturing facilities for float glass, superior quality heat reflective glass and new generation environment friendly mirror.

 

AIS Float Glass has a current market share of 22 percent, which is expected to rise significantly with the commissioning of the Roorkee Plant.

 

Distribution of all the products is facilitated on an all-India basis through a wide network of more than 530 authorized stockists, including major glass processors across the country. It has zonal sales offices in Chennai, Delhi & Mumbai along with a spread of area representatives in all the major cities across the country.

 

AIS Float Glass is also the commercial agent of Glaverbel SA in India. Glaverbel is the European flat glass leader, producing and marketing flat glass, mainly for the building sector with external glazing and internal decorative glass. As commercial agent, AIS has been selling the entire range of Glaverbel products in India since April, 2007.

 

Its product portfolio includes :

 

AIS Glass Solutions

 

AIS Glass Solutions Limited is AIS’s entry into glass processing business providing innovative glass products and services.

 

AIS Glass Solutions has been set up as a subsidiary of AIS with the following long- term objectives :

 

AIS Glass Solutions, as a value addition in the architectural glass business, is addressing the following segments:

 

AIS Glass Solutions has been supplying a range of high quality architectural processed glass. Primary product lines for the business include :

 

The state-of-the-art architectural processing facilities are located at Taloja (West India), Chennai (South India) and Rewari (North India). The fourth facility soon to be commissioned at Roorkee will be the largest architectural processing facility in the country.

 

AIS Glass Solutions has set up a customer-oriented, effective and efficient supply chain to ensure availability of right glass products to the customers at the shortest possible time. These initiatives are helping people use glass better and thereby use more of it.

 

Performance Overview: 


During the year, the Gross Sales of the Company increased 27.58 percent from Rs. 7031.500 millions in the previous year to Rs. 8970.800 millions. Operating Profit increased 36.60 percent to Rs. 1648.500 millions as compared to previous year. Profit before tax and Profit after tax amounted to Rs. 632.400 millions and Rs. 420.800 millions respectively. 


A detailed analysis of the Company's operations in terms of performance in markets, manufacturing achievement, business outlook, risks and concerns forms part of SBUs Review and the Management Discussion and Analysis, which are separate sections of this Annual Report. 

 

Projects: 
 
The second float glass plant of AIS at Roorkee in the State of Uttarakhand, was commissioned on 1st January, 2007. The plant, with a production capacity of 700 tons per day, forms part of the largest Integrated Glass Plant in the country set up by the Company. The commercial production of reflective glass and mirror at the Integrated Glass Plant commenced from 18th April, 2007 and 25th May, 2007 respectively. 


The commercial production of architectural processed glass and automotive safety glass at the Roorkee plant is likely to commence from August, 2007. 

 

Awards: 
 
The Directors have pleasure in reporting the following awards/ recognitions that the Company received during the year: 


1. 'Best Indian Company in Glass & Ceramics Category' from Dun & Bradstreet;

 
2. 'Best Contribution Award' from Hyundai Motors India Limited; 


3. 'Award for achieving Targets in the Category of Cost' and 'Award for Best Cost Performance' from Toyota Kirloskar Motors Limited;

 
4. 'Q1 Award' from Ford India Limited; 


5. 'Overall Excellence Award' and 'Trophy for Kaizen' from Maruti Udyog Limited; and 


6. Award for 'Best Quality Supplier in the Body System Category' by Mahindra & Mahindra. 

 

 

Management Discussion and Analysis:

 

Gross sales and net sales (including inter-division sales) increased 28 percent. Operating profit increased 37 percent. The results include a profit of Rs. 119.000 millions on the sale of surplus land at the Roorkee Plant. 


Profit before tax, after adjusting the written back depreciation of Rs.400.800 millions of earlier years, was impacted by higher incidence of interest and depreciation. Profit after tax declined on account of a higher provision for deferred tax liability, made pursuant to the relevant accounting standards. 


AIS Auto Glass performed well in line with the underlying growth of the Indian passenger car industry. AIS maintained its market leadership with near 80 percent share in the passenger car industry (cars & multi-utility vehicles), which witnessed a growth of 18 percent in 2006 - 07.

 

Gross sales of AIS Auto Glass increased 19 percent to Rs. 5096.600 millions. Export sales recorded a sharp increase, with the successful execution of export orders during the year mainly to the European after market. Export sales during the year amounted to Rs. 267.300 millions, up by over 460 percent. 


The Indian float glass industry recorded a growth of 9 percent during the year. Table 3 below shows growth of float glass sales in India in the last five years.

 

 The commissioning of the float glass unit at the Integrated Glass Plant of AIS at Roorkee on 1st January, 2007, was a proud achievement for the AIS team. The Plant has also started commercial production of value added glass, namely reflective glass and mirror, from April, 2007 and May, 2007 respectively. 


Gross sales of AIS Float Glass increased 32 percent to Rs. 3427.400 millions, compared to the previous year, which was impacted adversely by the shut down of the Taloja plant for over three months due to flooding. Since its commissioning in January, 2007, the second float glass plant also contributed to sales in the fourth quarter. 
 
 The profitability of AIS Float Glass was adversely impacted by a sharp decline in prices of float lass in the domestic market from a peak of Rs.56/mm/m2 to Rs. 50/mm/m2 by March 2007. The prices declined further to Rs. 40/mm/m2 in the subsequent months. The price decline was largely on account of a sudden influx of imports. The prices have since staged a recovery riding the strong demand in the domestic market. 


The architectural glass processing business posted an impressive performance in the booming building and construction sector, with increased demand for high quality processed glass. The state-of-the-art architectural processing facilities located strategically at Taloja (West India), Rewari (North India) and Chennai (South India) successfully catered to the booming demand. 


Resultantly, the gross sales of the architectural glass processing business recorded an increase of over 251 percent to Rs. 550.000 millions and made a maiden operating profit of Rs. 41.900 millions 


AIS has almost completed all the ongoing projects under its current expansion program. The Integrated Glass Plant at Roorkee, which is the largest and the biggest of all the projects undertaken by AIS, is close to completion. The manufacturing facilities at the Plant for float glass and value - added glass like reflective glass and mirror commenced commercial production. The remaining facilities for automotive safety glass and architectural processing glass at the Roorkee Plant will be completed by August, 2007. 


The sidelite-tempering furnace, currently under installation at the Auto Glass Plant at Chennai, will be completed by June, 2007. With commissioning of this furnace, the Chennai Plant will have the complete product range to meet full requirements of the OE customers in the South. We are currently examining a possible preponement of further expansion in laminated windshield capacity at Chennai, in order to be able to meet the expected demand in the domestic and export after markets. 


The large-sized laminated windshield furnace developed indigenously and currently under installation at the Auto Glass Plant at Rewari will be commissioned shortly. 


Capital addition to the gross block during the year amounted to Rs. 6784.200 millions. This mainly included expansions carried out at AIS Plants at Roorkee and Chennai.

 
With completion of almost all the ongoing projects, the capex requirement will start tapering off from this year. 


The capex for the ongoing projects to be completed this year, as outlined above, will be in the range of Rs. 200 crores. This includes the possible expansion in the laminated windshield capacity at Chennai. Major capital expenditure is now behind us. 


The current phase of the expansion program effectively captures each element of the auto and architectural glass value chain. AIS's strategy of building scales with forward and backward linkages in the glass value chain will help AIS in realizing operational synergies and reducing its costs through 


* Internalization of glass sourcing for auto and architectural processing. 

* Improved operational efficiencies. 

* Consolidation of supplies of key inputs. 

* Reduction in packing and logistics cost through integrated operations. 

* Lower overheads/unit, with large scale plants. 


Roorkee Plant provides significant cost advantages for most of the product lines due to benefits like fiscal incentives, low power tariff, reduced packing/freight costs, etc. 


These expansions will improve the prospects for superior free cash generation, further strengthen AIS's competitiveness in the glass value chain, enable it to offer 'technologically demanding' higher value-added products, and improve its position of being among the lowest cost high quality full solutions providers to the customers. 

 
The Indian economy is expected to grow at 7-8 percent. The automobile and construction industry, the critical user segments of AIS products are likely to grow at 10-15 percent. 


AIS's Mid Term Plan for the five years from 2006-07 to 2010-11 targets a topline growth of over 20 percent on CAGR basis. 


In the automotive glass business, AIS Auto Glass is best positioned to benefit from the volume growth as well as from the increasing demand for high value-added products. We shall continue to maintain leadership status in the Indian passenger car industry. 


In the float glass business, with the shut down of two glass plants, namely, Triveni's Chinese float plant (250 TPD) and HSG's sheet glass plant (180 TPD), which squeezed supplies in the market, and no new capacities coming up at least in the next 18 months, we expect to improve their performance with increase in market share and higher sales of value-added glass. 


To mitigate the threat of imports, effective measures are being taken at industry and AIS level, which include seeking extended and wider application of antidumping duties and curbing the menace of under-invoiced imports. 


I see tremendous opportunities in the architectural processing glass business. There are several fronts where these opportunities come from: 


- Strong domestic growth, which is likely to beat 25-30 percent. 


- Growth in the overall glazing area in a building. 


- Growth in value addition-value per square meter of glass. 


- Growth in exports. 


AIS Glass Solutions is fully geared to gain and grow substantially by tapping the market potential and leveraging its core strength. 


AIS is likely to grow faster than market, targeting higher sales growth in value-added products with focus on long term margin improvement and cash generations, and not just on gains in market share. 

 
The outlook for the current year looks positive. This is the first full year when we will fully commission the current projects and begin utilizing their capacities to its potential. We expect their topline to grow significantly and profit margins to,improve. However, to do all this their execution has to be flawless. 


Inflation, the resultant interest rate increase, rising oil prices and fluctuations in prices of float glass are the areas of concern. 


The company has been awarded “ISO 14001 Certificate” from TUV Suddeutschland and “QS 9000 Certificate”.

 

The company is in trade terms with:-

 

Ř       K. Engineering Industries

Ř       Concord Electrical Industries

Ř       Electro Controls

Ř       Jagannath Knitwears (Private) Limited

Ř       Microheating Industries

Ř       NPI Packagings (Private) Limited

Ř       Polyrub Extrusions India

Ř       Rattan Hose & Engineering Works Private Limited

Ř       S. S. Engineering Works

Ř       Yadav Plastics

Ř       Dev Silica

Ř       Himalaya Industries

Ř       Mahavir Minerals

Ř       National Agency

Ř       Sharad Enterprises

Ř       Jaywood Industries

Ř       Sanghvi Packers Private Limited

Ř       S. S. Suppliers

Ř       The Mistry Wood Works

Ř       Sanghvi Timber Industries

 

The company has collaboration with :-

 

Ř       Asahi Glass Company Limited, Japan

      Established in 1907

 

Asahi India Glass Limited (AIS) is India's largest integrated glass company.

 

The Company commenced operations in 1987 as an automotive glass manufacturer and has since grown to its dominant market position across the entire glass value chain with a diversified product portfolio.

 

The transition from an auto glass manufacturer having a single customer to the country’s largest integrated glass company has been a result of AIS’s innovative initiatives taken in every single year of its operations.

 

AIS’s growth has come through its consistent endeavour to improve its competitive position, lower its risk profile, strengthen its business model and invest in profitable growth opportunities in the field of glass and its applications.

 

AIS firmly believes in the paramountcy of shareholder wealth creation. AIS remains committed to pursue profitable growth to enhance shareholder value on a sustainable basis.

 

 

Website Details :

 

Subject is in the process of transforming itself from being a manufacturer of world-class products to a solutions provider.


All activities have been consolidated under a single umbrella brand "AIS".  This brand stands for Asahi India Solutions and covers their activities in basic glass, tinted, reflective, mirror, auto and now a feast of new products and services.  It is the symbol of their vision to be an integrated player who intends to revolutionize the use of glass in the market by using innovation, technology, their time tested manufacturing excellence, to allow their customers to "See More" on their terms.

 

Subject now adds innovations and originality through a host of new products and services.

 

Asahi India Glass Limited is the largest glass company in India, manufacturing a wide range of international quality automotive safety glass, float glass and architectural processed glass.


Subject is in the process of transforming itself from being a manufacturer of world-class products to a solution provider. Subject is now moving up the exciting value chain of glass by providing design, products and services that make glass more versatile and more user friendly.

 

Subject has the following three operating business units:

 

Ř       Automotive Glass Unit – AIS (Auto)

Ř       Float Glass Unit – AIS (Float)

Ř       AIS Glass Solutions Ltd – AIS (Glass Solutions)

 

AIS (Auto) is India's largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia.  It meets over 85% automotive glass requirement of the Indian passenger car industry.

 

AIS (Float) is the leading manufacturer of international quality float glass and is the third largest float glass manufacturer in the country. Prior to its merger with AIS, it was known as Float glass India Limited.

 

AIS (Glass Solutions) is a value addition in the architectural glass business of AIS, addressing the following segments:

- Architectural processing and Glass Solutions


- Product and Knowledge Development


- Glass Services - Sales & Marketing

 

The market and technology leader in the Indian Glass Industry, subject continues to add to its customer base and service offerings, while maintaining and enhancing product quality.

 

Its ongoing efforts, to provide high quality products and reliable and excellent service to its customers, are the key factors for their sustained success and leadership position in the glass industry.

 

Subject recorded gross sales and operating profits of Rs. 6915.200 millions and Rs. 1288.500 millions respectively for the year ended 31st March 2005

 

Fixed Assets

 

§         Freehold Land

§         Leasehold Land

§         Buildings

§         Plant and Machinery

§         Electrical Installations

§         Furniture and Fixtures

§         Vehicles 

 

 

Press Releases

 

Asahi India Glass (AIS) announces unaudited financial results for the second quarter and the half-year ended 30th September 2005

 

Total sales and cash profit recorded Rs. 3678.000 Millions and Rs. 567.200 Millions respectively for the half-year.

Subject’s Float Glass Plant at Taloja re-started, commercial production likely to start by 10th November 2005.

 

Monday, October 31st, 2005. New Delhi –Asahi India Glass Limited (AIS) India’s largest glass company, announced its unaudited financial results for the second quarter and the half-year ended 30th September 2005 at its Board meeting held today at Gurgaon.

 

Subject’s total sales for the half-year ended 30th September 2005 were Rs. 3678.000 Millions. Cash profit and profit after tax for this period were Rs. 567.200 Millions and Rs. 169.100 Millions respectively. Total sales for the second quarter were Rs. 1810.800 Millions. Cash profit and profit after tax for this period were Rs. 258.200 Millions and Rs. 05.100 Millions respectively.

 

Speaking on the occasion, Mr. Sanjay Labroo, Managing Director & CEO of SUBJECT said, “They have been able to restart Taloja Plant earlier than schedule. The Plant was shut down on 26th July, 2005 due to heavy floods. Operating income in FY 2005-06 will be impacted by flood losses which are estimated to be Rs. 400 millions. Besides, rising oil prices and certain input costs continue to have adverse impact. However, the underlying performance remains strong. They expect to improve their performance in the second half.

 

They are moving ahead with their expansion plans as per schedule. The architectural processing facilities being set up at their Chennai and Rewari Plants will soon become operational. They are also adding tempering and laminated capacities at their Auto Glass Plant at Chennai this fiscal. Post expansion, the Chennai Plant will have a capacity of one million laminated windshields and one million tempered car sets. Project work at Subject’s Integrated Glass Plant at Roorkee in Uttaranchal is progressing as per schedule. ”

AIS Glass Limited (AIS)

Asahi India Glass Limited (AIS) is a joint venture between the Labroo family, Asahi Glass Co. Limited of Japan, and Maruti Udyog Limited. Subject began operations in 1987.

 

Subject today is the largest glass company in India, manufacturing wide range of international quality automotive safety glass and float glass. Subject has the following three operating business units - AIS (Auto), AIS (Float) and AIS (Glass Solutions).

 

AIS (Auto) is India’s largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia.

 

AIS (Float), the other operating business unit, is the leading manufacturer of international quality float glass and is the third largest float glass manufacturer in the country.

 

AIS (Glass Solutions) has been set up as a subsidiary of AIS with the following long-term objectives:
-captively consume float glass for architectural processing & glass products; and
- raise glass consumption by disseminating knowledge and introducing innovative product lines.

 

Subject is in the process of transforming itself from being a manufacturer of world- class products to a solutions provider. Subject is now moving up the exciting value chain of glass by providing design, products and services that make glass more versatile, more user friendly.

 

Subject Announces Repair Schedule Of The Taloja Plant Repairs To Cause Restart Of Plant By Late 2005 0r Early 2006   

 

New Delhi.  August 30th, 2005  –The unrelenting and unprecedented rainfall in Maharashtra last month caused major flooding in the AIS (Asahi India Glass)’s float glass factory at Taloja, near Mumbai.

 

Despite a superhuman effort by Subjects employees, water flooded key electrical and oil utilities causing energy starvation. As is the nature of this process, the event caused a complete cessation of production with a considerable time lag to restart.

 

Pursuant to a detailed examination of the plant by visiting experts from technical collaborators of the company, it was found that a complete replacement of refectories in the metal bath will be required taking into consideration the random pattern of damage found in the bricks.

 

This will mean a later restart of the facility. The date could be from early December 2005 to end January 2006, depending on the speed with which some key refectories can be procured.

 

Realizing this, Subject has decided to proceed with a Hot Repair.

 

A float glass furnace has a life varying between 10-15 years at the end of which the furnace is stopped and completely rebuilt with new refectories with a new lease of life of 10-15 years. This is called a Cold Repair and costs Rs. 800 – 1200 millions and takes 5 – 6 months. Some companies choose to do an intermediate repair called Hot Repair which costs much less, Rs. 150 – 200 millions, and takes 3-4 weeks. This, however, adds a life of 4-5 years.

 

The AIS Taloja furnace is 10.5 years old and the company had planned to do a Hot Repair in 2007. In light of what has happened, Subject has now decided that it is prudent to use this unfortunate natural accident to prepone the hot repair it had to do by 2007.

 

Mr. Sanjay Labroo, MD & CEO, Subject said, “The repair initiated will adversely impact the company’s performance in FY 2006, in the approximate range of Rs. 450-650 millions operating income, however, they have formulated and operationalized a detailed recovery plan and are hopeful of completing it in the minimum possible time. This is a one time occurrence and they will emerge stronger in time.”

 

AIS Glass Limited (AIS)

 

Asahi India Glass Limited (AIS) is a joint venture between Labroo family, Asahi Glass Co. Limited of Japan, and Maruti Udyog Limited. AIS began operations in 1987.

 

Subject today is the largest glass company in India, manufacturing wide range of international quality automotive safety glass and float glass.  Subject has the following two operating business units :

Ř       AIS (Automotive)

Ř       AIS (Float)

 

AIS (Automotive), one of the two operating business units of AIS, is India’s largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia.

 

AIS (Float), the other operating business unit, is the leading manufacturer of international quality float glass.

 

Subject is in the process of transforming itself from being a manufacturer of world- class products to a solutions provider. Subject is now moving up the exciting value chain of glass by providing design, products and services that make glass more versatile, more user friendly.

 

Ais (Asahi India Glass Ltd.) Announces Audited Financial Results For The Fourth Quarter And The Year Ended 31st March, 2008

Gross sales and operating profit for the year amounted to Rs. 11741.900 millions and Rs. 2046.200 millions respectively. Gross sales and operating profit for the quarter recorded Rs. 3023.100 millions and Rs. 319.100 millions .

 

New Delhi, 6th May, 2008 - AIS (Asahi India Glass Limited), India’s largest integrated glass company announced its audited financial results for the fourth quarter and the year ended 31st March, 2008 at its Board Meeting held today. AIS’s gross sales and operating profit for the year amounted Rs. 11741.900 millions and Rs. 2046.200 millions, recording an increase of 30.89 per cent and 24.12 per cent respectively as compared to the same period in the previous year. Gross sales was up by 13.19 per cent and operating profit was down by 37.25 per cent for the fourth quarter ended 31st March, 2008 as compared with the corresponding quarter of the previous year. Profit before tax for 2007-08 has been impacted due to higher depreciation costs and interests (hitherto capitalized), coupled with increased costs of key inputs which could not be passed on to the customer.

 

The financial performance is summarized below –

 

(Rs. in millions)

AIS – Financial Results for the year ended 31st March

 

Particulars

Standalone

Consolidated

 

Year Ended 31st March

Year Ended 31st March

 

2008

2007

Change (%)

2008

2007

Change (%)

Gross Sales

11741.900

8970.800

30.89

11831.700

9189.700

28.75

Net Sales

9935.300

7618.400

30.41

9957.600

7665.600

29.90

Operating Profit

2046.200

1648.600

24.12

2005.900

1663.000

20.62

Cash Profit

1198.600

1294.100

(7.38)

1156.700

1308.300

(11.59)

Profit Before Tax

195.800

632.400

(69.04)

140.400

644.300

(78.21)

Net Profit

133.400

420.800

(68.30)

84.400

433.200

(80.52)

 

(Rs. in millions)

AIS – Financial Results for the year ended 31st March

 

Particulars

Standalone

Consolidated

 

4th Quarter ended 31st March

4th Quarter ended 31st March

 

2008

2007

Change (%)

2008

2007

Change (%)

Gross Sales

3023.100

2670.900

13.19

3071.700

2713.700

13.19

Net Sales

2630.200

2301.200

14.30

2642.100

228.800

14.93

Operating Profit

319.100

508.500

(37.25)

312.300

503.700

(37.99)

Cash Profit

78.100

353.700

(77.92)

70.600

349.500

(79.80)

Profit/Loss Before Tax

(172.100)

118.700

(244.99)

(183.200)

141.100

(260.56)

Net Profit

(97.800)

89.400

(209.40)

(122.800)

85.70

(243.29)

 

 

Speaking on the occasion, Mr. Sanjay Labroo, M.D. & C.E.O., AIS said, “The rising input costs of power & fuel, soda ash continued to have an impact on operations and resultant profitability of AIS. Prices of finished goods have largely remained stagnant in 07-08, but have shown tendency to improve in the current year with reduction of imports from China. We are taking adequate internal measures to negate the impact of external factors as a result of which we expect significant improvement in financial performance in 08-09. Significant emphasis in 08-09 will be on value added products having better margins.”

 

About AIS:

Asahi India Glass Limited. (AIS) is a joint venture between the Labroo family, Asahi Glass Company Limited of Japan, and Maruti Suzuki India Limited. AIS began operations in 1987. AIS today, is the largest glass company in India, manufacturing wide range of international quality automotive safety glass, float glass and architectural processed glass. AIS has the following three operating business units – AIS Auto Glass, AIS Float Glass and AIS Glass Solutions.

 

AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and is, in fact, one of the largest in the field in Asia. It is sole supplier to almost all the OEMs and has a market share of over 80 per cent in the Indian passenger car industry. AIS Float Glass is the leading manufacturer of international quality float glass. It currently has a market share of approximately 30 per cent in the Indian float glass market.

 

AIS Glass Solutions, which is a subsidiary of AIS, has emerged as the largest processor in the country. AIS Glass Solutions, offering end-to-end glass solutions, currently has a complete range of high quality architectural processed glass.

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.84

UK Pound

1

Rs.84.78

Euro

1

Rs.67.32

 

 

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

7

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

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

NO

TOTAL

 

63

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions