MIRA
INFORM REPORT
|
Report Date : |
13.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
CASTROL INDIA LIMITED |
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Registered Office : |
Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East), Mumbai
– 400 093, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
31.05.1979 |
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Com. Reg. No.: |
11-21359 |
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CIN No.: [Company
Identification No.] |
L23200MH1979PLC021359 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC03626A |
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PAN No.: [Permanent
Account No.] |
AAACC4481E |
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Legal Form : |
Subject is a public limited liability company. The company’s shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers and Marketers of Lubricating Oils, Greases, Brake
Fluids, Cable Filling Compounds, Jellies, etc. |
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 22000000 |
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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. Available
information indicates high financial responsibility of the company. Financial
position of the company is good. Payments are always correct and as per
commitments. Your proposed business dealings of GBP 554000 can be considered
against D/A or D/P terms. |
LOCATIONS
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Registered Office : |
Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East),
Mumbai – 400 093, Maharashtra, India |
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Tel. No.: |
91-22-56984100 / 23632511 / 23632512 / 23632513 |
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Fax No.: |
91-22-56984101 |
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E-Mail : |
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Website : |
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Plants : |
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Warehouses : |
White House, P. B. No. 16172, 91, Walkeshwar Road, Mumbai – 400 006,
Maharashtra, India |
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Tel. No.: |
91-22-23635447/23636555/23636562/23636563/23637569/
/23637590/23637591/23637592/23637594/23637595/23632511 |
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Fax No.: |
91-22-23631335/23637003/23619578/23635447/23688837 |
DIRECTORS
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Name : |
Mr. S. M. Datta |
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Designation : |
Chairman |
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Name : |
Mr. N. K. Kshatriya |
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Designation : |
Chief Executive and Managing Director |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Director |
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Name : |
Mr. P. Hughes |
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Designation : |
Director |
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Name : |
Mr. A.K. Jhawar |
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Designation : |
Director |
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Name : |
Mr. D. S. Parekh |
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Designation : |
Director |
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Name : |
Mr. R. Elston-Green – Alternate to P. Hughes |
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Designation : |
Director |
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Name : |
Mr. A. S. Ramchander |
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Designation : |
Director |
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Name : |
Mr. A Ahmad |
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Designation : |
Director |
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Name : |
Mr. A P Mehta |
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Designation : |
Director |
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Name : |
Mr. C. D'Mello |
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Designation : |
Director |
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Name : |
Mr. R. A. Savoor |
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Designation : |
Director |
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Name : |
Mr. L. Freese |
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Designation : |
Alternate Director |
KEY EXECUTIVES
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Name : |
A. H. Mody |
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Designation : |
General Manager – Legal and Company Secretary |
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Name : |
Mr. P. M. Augustin |
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Designation : |
Head - Management Development and Employees
Relations |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 08.02.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Foreign Collabrator |
87687455 |
70.92 |
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Foreign Company |
135474 |
0.11 |
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Foreign Institutional Investors |
2536470 |
2.05 |
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Overseas Bodies Corporate |
1003 |
0.00 |
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Non-Resident Individuals |
202940 |
0.16 |
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Financial Institution |
10192048 |
8.24 |
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Indian Mutual Funds |
2653932 |
2.15 |
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Nationalised Banks |
11464 |
0.01 |
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Other Banks |
8597 |
0.01 |
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Domestic Companies |
1899416 |
1.54 |
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Resident individuals |
18298490 |
14.80 |
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Directors and Relatives |
13009 |
0.01 |
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|
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Total |
123640298 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Marketers of Lubricating Oils, Greases, Brake
Fluids, Cable Filling Compounds, Jellies, etc. |
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Products : |
·
Lubricating Oils ·
Greases ·
Brake Fluids ·
Cable Filling Compounds ·
Jellies |
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Imports : |
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Products : |
·
Piesco ·
Empicryl and LIOH |
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Countries : |
·
France ·
U.K. ·
U.S.A. |
PRODUCTION STATUS
(As on 31.12.2007)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Lubricating Oils, Greases, Brake Fluids at Patalganga, Kolkata,
Chennai and Silvassa |
KLs/MTs |
188054 |
- |
|
Lubricating Oils, Greases, Etc. |
KLs/MTs |
- |
220515 |
GENERAL
INFORMATION
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No. of Employees : |
Around 1110 |
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Bankers : |
·
Deutsche Bank ·
HDFC Bank Limited ·
The Hongkong and Shanghai Banking Corporation Limited ·
State Bank of India ·
Citibank N.A., Mumbai, Maharashtra ·
Standard Chartered Grindlays Bank, Mumbai, Maharashtra |
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Banking
Relations : |
Satisfactory |
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Auditors : |
S. R. Batliboi and Company Chartered Accountants |
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Memberships : |
Confederation of Indian Industry |
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Associates : |
·
Castrol Industrial North America Inc. ·
Castrol Industries GMBH ·
Castrol Italiana SPA ·
Castrol K K, Japan ·
Castrol France S A ·
Castrol South Africa ·
Castrol International Limited ·
Castrol Brasil ·
Lubricants Belgium ·
Freight Systems Company Limited ·
BP Middle East ·
BP Oil Limited ·
BP Singapore PTE Limited ·
BP International Limited ·
BP Mauritius Limited ·
BP Shipping Limited ·
BP Australia Limited ·
BP Malaysia SDN. BHD. ·
Bp India Limited ·
Tata BP Solar India Limited ·
BP Chemicals Limited ·
BP China (Shanghai) Limited ·
BP Oman (SAOG) Limited ·
Castrol China Limited ·
Lubricants U.K. Limited ·
Burmah Oil Deutschland |
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Subsidiaries : |
Indrol Chemicals and Specialities Private Limited |
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Holding Companies : |
·
Castrol Limited, U.K. (Holding Company of Castrol India Limited) ·
Burmah Castrol Trading Limited (Holding Company of Castrol Limited,
U.K.) ·
BP PLC (Holding Company of Burmah Castrol Trading Limited) |
CAPITAL STRUCTURE
(As on 31.12.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
124000000 |
Equity Shares |
Rs.10/- each |
Rs.1240.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
123640298 |
Equity Shares |
Rs.10/- each |
Rs.1236.400
millions |
Notes :
1. Includes 87687455 Equity Shares of Rs.10/- each held by Castrol Limited,
UK, the Holding Company.
2. Includes 116353318 Equity Shares allotted as fully paid up Bonus Shares
by capitalization of Share Premium / General reserve.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1236.400 |
1236.400 |
1236.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3065.400 |
2940.200 |
2664.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4301.800 |
4176.600 |
3900.600 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
27.900 |
27.900 |
27.900 |
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TOTAL BORROWING |
27.900 |
27.900 |
27.900 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
61.300 |
0.000 |
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TOTAL |
4329.700 |
4265.800 |
3928.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1183.100 |
1249.400 |
1325.000 |
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Capital work-in-progress |
149.500 |
47.400 |
58.300 |
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INVESTMENT |
205.800 |
425.200 |
1081.400 |
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DEFERREX TAX ASSETS |
182.200 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2249.800
|
2555.200 |
2139.000 |
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Sundry Debtors |
1479.500
|
1889.900 |
1516.400 |
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Cash & Bank Balances |
3179.100
|
892.200 |
398.500 |
|
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Other Current Assets |
18.600
|
0.400 |
0.000 |
|
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Loans & Advances |
798.200
|
825.100 |
858.100 |
|
Total
Current Assets |
7725.200
|
6162.800 |
4912.000 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
3418.300
|
2703.600 |
2608.900 |
|
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Provisions |
1697.800
|
915.400 |
839.300 |
|
Total
Current Liabilities |
5116.100
|
3619.000 |
3448.200 |
|
|
Net Current Assets |
2609.100
|
2543.800 |
1463.800 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4329.700 |
4265.800 |
3928.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
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Sales Turnover |
18882.600 |
17524.100 |
17077.600 |
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Other Income |
348.400 |
343.800 |
225.000 |
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Total Income |
19231.000 |
17867.900 |
17302.600 |
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Profit/(Loss) Before Tax |
3398.400 |
2322.400 |
2105.100 |
|
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Provision for Taxation |
1214.100 |
777.500 |
637.000 |
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Profit/(Loss) After Tax |
2184.300 |
1544.900 |
1468.100 |
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Earnings in Foreign Currency : |
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Suppliers to Foreign Vessels |
122.000 |
103.800 |
0.000 |
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Commission and Others |
52.300 |
16.700 |
0.000 |
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|
FOB value of goods exported |
16.300 |
16.900 |
0.000 |
|
Total Earnings |
190.600 |
137.400 |
0.000 |
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Imports : |
|
|
|
|
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Raw Materials |
3389.800 |
4170.200 |
0.000 |
|
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Capital Goods |
15.100 |
3.300 |
0.000 |
|
Total Imports |
3404.900 |
4173.500 |
0.000 |
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Expenditures : |
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|
|
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Cost of Materials |
10976.800 |
11631.400 |
0.000 |
|
|
Manufacturing Expenses |
0.000 |
0.000 |
1105.600 |
|
|
Operating and Other Expenses |
4610.100 |
3692.900 |
0.000 |
|
|
Selling and Administration
Expenses |
0.000 |
0.000 |
2032.100 |
|
|
Raw Material Consumed |
0.000 |
0.000 |
8690.000 |
|
|
Excise Duty |
0.000 |
0.000 |
2433.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(263.200) |
|
|
Employee Cost |
0.000 |
0.000 |
628.800 |
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
314.300 |
|
|
Interest |
37.900 |
41.100 |
30.100 |
|
|
Power & Fuel |
0.000 |
0.000 |
37.500 |
|
|
Depreciation & Amortization |
207.800 |
180.100 |
189.300 |
|
Total Expenditure |
15832.600 |
15545.500 |
15197.500 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2008 |
30.06.2008 |
|
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
492.90 |
621.40 |
|
Other Income |
11.90 |
9.20 |
|
Total Income |
504.80 |
630.60 |
|
Total Expenditure |
379.50 |
494.90 |
|
Operating Profit |
125.30 |
135.70 |
|
Interest |
1.30 |
0.70 |
|
Gross Profit |
124.00 |
135.00 |
|
Depreciation |
6.20 |
6.80 |
|
Tax |
45.00 |
45.40 |
|
Reported PAT |
72.80 |
82.80 |
KEY RATIOS
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
Debt-Equity Ratio |
0.01 |
0.01 |
0.01 |
|
Long Term Debt-Equity Ratio |
0.01 |
0.01 |
0.01 |
|
Current Ratio |
1.58 |
1.54 |
1.35 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
9.26 |
8.44 |
6.85 |
|
Inventory |
9.56 |
8.91 |
8.98 |
|
Debtors |
13.63 |
12.28 |
12.07 |
|
Interest Cover Ratio |
90.63 |
57.47 |
70.94 |
|
Operating Profit Margin(%) |
15.87 |
12.15 |
13.61 |
|
Profit Before Interest And Tax
Margin(%) |
14.96 |
11.29 |
12.5 |
|
Cash Profit Margin(%) |
10.42 |
8.25 |
9.71 |
|
Adjusted Net Profit Margin(%) |
9.51 |
7.39 |
8.6 |
|
Return On Capital Employed(%) |
80.49 |
58.08 |
56.44 |
|
Return On Net Worth(%) |
51.53 |
38.25 |
39.14 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject is the second largest player in the Indian lubricant
industry and is the market leader in the retail automotive lubricant segment.
Subject was incorporated in the year 1979 as a private limited company under
the name of Indrol Lubricants and Specialities Private Limited. It manufactures
and markets a range of automotive and industrial lubricants. It markets its
automotive lubricants under two brands - Castrol and BP. The company has
leadership positions in most of the segments in which it operates including
passenger car engine oils, premium 2-stroke and 4-stroke oils and multigrade
diesel engine oils.
In the year 1982, Subject was converted into a public limited company. During
the same year, the company had set up a modern blending plant and brake fluid
plant at Patalganga. The brake fluid plant and the lube oil blending plant of
the company were commissioned in February and March of the year 1985
respectively. In 27th June of the year 1986 the second Phase of lube oil
refining plant of the company was commissioned. Subject had formed a subsidiary
Company in the year 1987 under the name of Indtech Speciality Chemicals,
Limited for the manufacture of Telephone cable jellies, pharmaceuticals jellies
and industrial waxes in technical collaboration with Dussek Campbell, U.K. Name
of the company was changed from Indrol Lubricants and Specialities Limited to
Subject with effect from 1st November of the year 1990. Indtech Speciality
Chemicals (owned subsidiary) was merged with the company with effect from 1st
January of the year 1992. During the year 1994, Subject had set up a new plant
in Silvassa, Union Territory of Dadra/Nagar Haveli at a cost of Rs.500.000
millions to the technology for lubricant blending.
The company formulated a satellite-linked management information system (MIS),
connecting the vast network in the year 1995 and also obtained the ISO 9002
certification. In the same year of 1995, Subject had introduced the Tractormax
and RX Super Plus for the diesel engines and also launched two stroke engine
oils Jett X and Super TT; both exceed the Japanese Automobile Standards
Organisation (JAPO) specifications. During the identical year subject, had
signed an agreement with Hindustan Powerplus as sole supplier of lubricants for
Caterpillar engines. In 1997, the company made an agreement with Maruti Udyog, India's
largest car producer. The deal made to sell high performance subject products,
through Maruti Udyog dealer outlets and authorised service stations. Subject
became the first lubricant company in Asia-Pacific as a QS 9000 certified
company during the year 1998, possibly the most meticulous quality system
standard for suppliers to the automotive industry worldwide. During the year
2000, Subject had introduced Castrol Active 4T, an engine oil for 4 stroke
bikes and also the GTX Magnetic for passenger cars, accompanied with a print
campaign that stresses the molecular attraction of the lubricant, allowing it
to stick to engine parts, even when it is switched off. In the same year 2000,
the company made tie up with TELCO and LML for sourcing customised lubricants
for various vehicles manufactured by these companies. Also entered into
strategic alliances with several automotive and industrial majors with a view
to developing a customise products and services for the Indian market. The
Company had stopped commercial production at its Wadala Plant with effect from
1st July of the year 2000. After a year, in 2001, again the company had closed
down its manufacturing facility at Hoskote in Karnataka.
During the same year 2001, Subject had launched Castrol call-for-a-can' whereby
Castrol products including motorcycle, scooter and car engine oils, coolants
and brake fluids will be available to customers over phone. Tata BP Lubricants
India Limited was amalgamated with the company following Tata group's decision
to exit the lubricants business in the year 2001 themselves. The Company had
launched the CRB Turbo special oil for new generation turbocharged vehicles
during the year 2002 and in the same year launched a slew of integrated
marketing plans. Subject had made its footprint into motorcycle servicing
business with the launch of 'PrimaZona' brand of franchisee workshop during the
year 2003. Subject bagged the tenth slot Top 10' in Asiamoney's corporate
governance poll on Asian companies in the energy sector. And joined the club of
a select few Asian companies. The company had entered into tie-ups with
Mahindra and Mahindra, Tata Cummins and International Tractors Limited during
the year 2004. In December of the same year Subject had entered into a
distribution agreement with Essar Oil Limited for the sale of Castrol
Lubricants through Essar Oil's outlets allover India. During the year 2005,
Subject had strengthened its relationship with two wheeler consumers through
the introduction of Castrol Franchised Motorcycle Servicing Centers - Castrol
Bike Zones. This has been successfully piloted in Chennai and Bangalore. The
Company had also launched Castrol Edge, an international quality engine oils
for cars in the identical year of 2005.
Subject had unveiled the Castrol EDGE during January of the year 2006, a
specially formulated, premium quality engine oil engineered to meet the
toughest and most demanding performance standards. As of October 2007, Subject
had entered into a strategic partnership alliance with Volvo Cars India for
supply of high performance lubricants. Subject had launched its flagship
Castrol BikeZone at Kukatpally Housing Board in Hyderabad as at May of the year
2008. The flagship service centre has some unique features which are not
available anywhere else in the country. Besides the general 3-lean service menu
options which are available at all Castrol BikeZones - Gold, Silver and Bronze,
the Kukatpally BikeZone has the Turbulator - an automated bike cleaning system
which ensures consistency in washing, better quality of bike wash and reduces
the washing time from twenty five minutes to ten minutes. By the way of
launched its BikeZone at Hyderabad, the company reached one milestone, it was
100th BikeZone as of May 2008.
Milestones
1919
The Indian branch of company commenced it activities in 1919 and
operated through four regional offices at Mumbai, Kolkata, Delhi and Chennai.
1944
The name was changed to Castrol Limited. In 1966, the company became a
part of the Burmah Group.
1981
During the year as per the scheme of Amalgamation sanctioned by the
Mumbai High Court, the Indian Marketing and Business of company was amalgamated
with Indrol Lubricants and Specialities Limited. As per the Scheme, Castrol
voluntarily agreed to hold 40% equity capital in the company. As a part of the
consideration for the transfer of business and undertaking in India, the
company was allotted 6,00,000 No. of equity shares of 10/- each without payment
in cash.
The balance consideration of Rs 9.527 millions was retained with the
company as interest-free loan from company. This amount was to be repaid in the
three equal annual installments.
As a result of acquisition of equity shares of Foseco Plc. by Burmah Castrol
Plc in U.K., the undertakings in India in which Foseco plc had an investment
interest, it became inter-connected with the Company under MRTP Act, 1969 and
the Company came within the purview of Part-A of Chapter III of the MRTP Act. -
On 9th June, the company entered into a registered user agreement to use
company’s trade mark which were used by Indian branch of Castrol. This
agreement is valid a period of years from the date of amalgamation or so long
as Castrol holds 30% or more of the equity share capital of the company, which
ever is later.
1982
The company was incorporated on 10th December under the name of Indrol
Lubricants and Specialities Limited.
In June, the first Phase of lube oil refining plant was commissioned.
During the year the company set up a modern blending plant and brake
fluid plant at Patalganga. The brake fluid plant and the lube oil blending
plant were commissioned in February and March 1985 respectively.
1983
In March 9,00,000 equity shares issued at a premium of Rs.9 per share,
of which 75000 shares to employees and Indian directors of the company, 75000
shares to business associates, 30000 shares to LIC and 30000 shares to UTI were
reserved and allotted. The balance of 690000 shares offered to the public.
1985
150000 rights shares issued (prem. Rs 10 per share; prop. 5:50) linked
to debentures in August. In June 1986, 893800 shares issued (prem. Rs. 40/- per
share) (825000 shares as rights in prop. 1:2, 41,300 shares to
employees/workers of the Company; and 27500 shares to the company.
1986
On 27th June the second Phase of lube oil refining plant was
commissioned.
2543800 bonus shares allotted on 21.3.1987 (prop. 1:1).
1987
As a measure of diversification, the Company formed a subsidiary Company
under the name of Indtech Speciality Chemicals Limited for the manufacture of
Telephone cable jellies, pharmaceuticals jellies and industrial waxes in
technical collaboration with Dussek Campbell, U.K.
1988
During August/September, the company offered 14% - 610520 secured
redeemable convertible debentures of Rs. 150/- each to the existing
shareholders (Except Castrol Limited, UK) on right basis in the ratio of 1
debenture for every five equity shares held. Additional 30526 debentures were
reserved for subscription by employees/Indian Working Directors/workers of the
company. All the debentures were taken up.
As per the terms of the debentures issue, Part `A' of Rs. 50/- each of
the debenture will be automatically and compulsorily converted into one fully
paid up equity share of Rs 10 each at a premium of Rs 40/- per share on the
expiry of six months from the date of allotment of the debenture.
Part `B' of the non-convertible portion of Rs. 100/- of each debenture
would be redeemed at par at the end of 7th year from the date of allotment
thereof.
1989
On 15th March company offered and allotted 427430 No. of equity shares
of Rs. 10/- each at a premium of Rs. 40/- per share to the company to maintain their
equity share capital after conversion of the debentures into equity shares.
1990
With effect from 1st November, the name of the company was changed from
Indrol Lubricants and Specialities Limited to company.
3693645 bonus shares issued prop. 3:5 in December.
1992
With effect from 1st January, Indtch Speciality Chemicals the subsidiary
was merged with company.
5909832 bonus equity shares issued in prop. 3:5.
1993
3537862 No. of equity shares of Rs. 10/- each allotted to Castrol
Limited, U.K. at a premium of Rs 100/- each.
1994
The company set up a new plant in Silvassa, Union Territory of
Dadra/Nagar Haveli at a cost of Rs. 500 millions. The new plant was to
incorporate the state-of-art technology for lubricant blending.
19297415 bonus equity shares issued in prop. 1:1 on 27th May.
1995
The company has plans to introduce a wide range of futuristic lubes
which will help it maintain its position as the market leader. While the
company has a wide marketing network consisting of 120 depots and 12,000 dealer
outlets, the company is installing a satellite linked management information
system (MIS), connecting the vast network. – the company was the first oil in
the lubricant sector to obtain the ISO 9002 certification. It has also introduced
Tractormax and RX Super Plus for the diesel engines. Its RandD wing at Wadala
in Mumbai is engaged in the innovation and modification of existing range of
products as well as productive new versions. - During the year Castrol India,
has signed an agreement with Hindustan Powerplus as sole supplier of lubricants
for Caterpillar engines. With the proper usage of new Castrol RX Super Plus and
with regular filter change and maintenance, the engine life is expected to be
20,000 hour plus. Castrol RX Super Plus is a new generation diesel engine oil
exceeding the highest 4 stroke diesel engine lubricant service class
requirements- API CF4. The product also confirms to AP1 SG service class
requirements for 4 stroke petrol engine oils.
During the year Castrol India has launched two stroke engine oils - Jett
X and Super TT. Both exceed the Japanese Automobile Standards Organisation
(JAPO) specifications.
23156898 bonus equity shares issued in prop. 3:5.
1997
Maruti Udyog, India's largest car producer has signed an agreement with
Castrol to sell high performance Castrol products, through its dealer outlets
and authorised service stations.
The leader in the private sector, Castrol India (CIL) is well-known for
its product quality, distribution network and after-sales service. It recently
expanded its blending capacity by 1,80,000 kl.
1998
With effect from 15th January, Consequent upon the Securities and
Exchange Board of India (SEBI) making dematerialisation of shares compulsory
for Foreign Institutional Investors (FIIs), Financial Institutions (FIs) etc.,
the Company was required to sign an Agreement with the National Securities
Depository Limited (NSDL) as it had shareholders who were compulsorily required
to dematerialise their shareholdings in the Company.
The Company has appointed Sharepro Services to act as an agent for
interface with NSDL.
Castrol India bags QS 9000 certification Castrol India, which already
has ISO 9002 certification, has become the first lubricant company in
Asia-Pacific to get QS 9000 certification, which is possibly the most rigorous
quality system standard for suppliers to the automotive industry worldwide.
1999
The company’s performance seems to be losing momentum which in turn will
put the company’s shares price on alert While the 1:1 bonus issue from Castrol
has cheered the market there seems little scope for further upsides in the
Castrol share price, based on fundamentals.
The company has improved its market share from 18% to 20% of its oil and
lubricants during the year 1998 and is likely to improve its market share
further during the current year.
Authorised capital reclassified. 61751728 bonus shares allotted.
2000
The company has announced the launch of Castrol Active 4T, an engine oil
for 4 stroke bikes.
The company introduced GTX Magnetic for passenger cars, accompanied with
a print campaign that stresses the "molecular attraction" of the
lubricant, allowing it to stick to engine parts, even when it is switched off.
TELCO and LML have tied up with company, marketer of specialised
lubricants and lubrication services, for sourcing customised lubricants for
various vehicles manufactured by these companies.
"The company has entered into strategic alliances with several
automotive and industrial majors with a view to developing a customise products
and services for the Indian market."
The company and Tata Engineering signed two agreements for the supply of
specially formulated lubricants for Tata commercial vehicles and for use of
motor oils for Indica passenger car.
The company has launched a web site dedicated to motor sports,
`www.castrolbikeworld.net'.
Ram Savoor, chief executive and managing director of Castrol India, has
been appointed as business unit head for global major BP Amoco's operations in
India, Middle East and South Asia.
In Wadala Plant the manufacturing has become an unviable activity due to
restrictive space and lay-out, coastal regulations zones/rules restricting
constructions and several other operations hazards.
The Company has signed up with the Chennai-based Rane Engine Valves
Limited for total supply of its lubricant requirements.
The Company has stopped commercial production at its Wadala Plant with
effect from 1st July.
The year 2000 was a difficult year for the transport industry and, as a
consequence, the automotive lube market is estimated to have declined by around
6%. This decline was mainly driven by an increase in lube and diesel prices
which squeezed margins in the road transport industry. There was also a move
towards `floor' sales tax rates for several products including lubes which
translates to a higher selling price. The rationalisation of sales tax attempted
to equalise sales tax across the country resulted in a decline in road freight
movement. Together with this, the drought condition prevailing in certain parts
of the country affected the demand for diesel engine oil in the agricultural
segment.
2001
The company has launched `Castrol call-for-a-can' whereby Castrol
products including motorcycle, scooter and car engine oils, coolants and brake
fluids will be available to customers over phone.
The company has closed down its manufacturing facility at Hoskote in
Karnataka.
Tata BP Lubricants India Limited has been amalgamated into company,
following Tata group's decision to exit the lubricants business.
The company has posted a net profit of Rs. 222.300 millions for the
quarter ended September 30, 2001 as compared to Rs. 281.700 millions for the
same quarter last year.
During the year 2001, Castrol, UK acquired a 20% stake in the company
vide an open offer made to the shareholders of CIL, thereby increasing its
stake from 51% to 71%.
2002
Appoints Naveen Kshatriya as new Managing Director and Chief Executive
Officer.
Announces change in the management structure and still continue its
focus on lubricants and allied services.
Aspi Modi has been appointed as company secretary.
Launches CRB Turbo special oil for new generation turbocharged vehicles.
Mr. Uswin Desousa,Mr.Roger Elston-Green and Mr Ravindra Pisharody
appointed as wholetime directors.
Shifted four of its offices to Andheri.
Alastair Ferguson has been nominated as director of company.
Launched a slew of integrated marketing plans.
2003
The company has entered into motorcycle servicing business with the
launch of 'Prima Zona' brand of franchisee workshop.
Restructured its sales and marketing force. It has set up 3 groups
including retail specialists, workshop specialists and institutional
specialists.
The company has posted a net profit of 408.6million for quarter June
30,2003 and declared a dividend Rs. 4/- per equity share for December, 2003.
Baged tenth slot among `Top 10' in Asiamoney's corporate governance poll
on Asian companies in the energy
sector. And joined the club of a select few Asian companies.
2004
Mr. Philip J. Hughes was nominated by Castrol Limited, UK with effect
from January 9, as a director of the company in the place of Mr. D. Hulf. On
Mr. Hulf ceasing to be a director, his alternate Mr. K. Warnett also ceased to
be a director. Further, from the said date, the Castrol Limited, UK has also
nominated Mr .L. Freese as an alternate director to Mr. P. Hughes.
The company is in pact with Mahindra Tractors.
The company’s Managing Director Naveen Kshatriya has been appointed
regional vice president of parent BP's Transcontinental lubricant business.
The company, the Indian arm of the BP group, has become a global hub for
supplying marketing professionals to the group.
Escorts has announced a tie-up with company for exclusive supply of
engine oils for service refill as well as after market sales.
Subject has efficient marketing and distribution network alongwith good
brand equity. However, stiff
competition from PSUs like IOC, HPCL and BPCL which own 60% of the market,
could effect subject's market share.
It is a dominant player in the lubes industry with 20% market share.
In worldwide operations, the Indian operations of the subject ranked
second in volume and third in profit terms respectively, next only to USA and
Germany.
PERFORMANCE
Sales increased by 9% over previous year, to Rs.22160.000
millions mainly due to increase in unit sales realisations and better sales
mix.
Cost of materials reduced by 5.6% over previous year to Rs.10980.000 millions
due to lower volumes, savings in raw material cost on account of effective
procurement strategy and favourable forex.
Operating and other expenses increased due to increase in
advertisement and sales promotion expenses, employee related costs and partly
offset by reduction in freight and processing charges.
Profit Before Tax increased by 46% over previous year to Rs.3400.000
millions.
Tax rate for the current year has remained at the same level as that of the
previous year. Tax expense for the previous year was lower as the Company had
written back excess provision for taxation of the earlier years (net) amounting
to Rs.54.000 millions.
As a result Profit After Tax increased by 41 % over previous year, to
Rs.2180.000 millions.
DIVIDEND
The Interim Dividend in respect of the year ended 31st December, 2007 of
Rs.4.50 per share on 12,36,40,298 Equity Shares was paid to the Shareholders of
the Company whose names appeared on the Register of Members on 8th August,
2007.
The Directors have recommend a payment of final dividend of Rs.9.50 per share
on 12,36,40,298 Equity Shares.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry
structure and developments - 2007 and 2008
The lubricant industry in India is broadly divided into 3 major market sectors:
Automotive, Industrial and Marine and Energy applications. The industry is led
by four major players, (Indian Oil Corporation Limited, Bharat Petroleum
Corporation Limited, Hindustan Petroleum Corporation Limited and Castrol India
Limited) who contribute to over 70% of the market. There are several players
including global majors operating in the balance 30% of the market, leading to
an extremely competitive market scenario.
The year 2007 has been positive in terms of demand and profit outlook for the
industry. This has been possible due to a strong growth in the economy and a
reduction in cost of base oil in 2007 from the peak levels of 2006. Though in
the last quarter of 2007 crude oil started a steep upward climb nearing US$90,
it did not impact the input costs during the year.
The Passenger Car sector registered the highest growth in vehicle sales during
the year while Motorcycle sales declined and that of Commercial Vehicles
broadly stagnated. Despite this, the lube market registered a growth due to
addition to the vehicle parc (rolling stock) and a strong growth in the off-road,
industrial and mining segments.
The year 2007 also saw leading Commercial Vehicle Original Equipment
Manufacturers (OEMs) making dramatic changes to their recommendations on oil
drain intervals (doubling over current levels) and an emergence of semi-synthetic
and synthetic oils recommended by the Passenger Car OEMs. The last two trends
are expected to have a significant impact on the volume consumption of
Automotive Lubricants.
At a macro-economic level, the cost of doing business increased due to sharp
inflationary trends in remuneration, travel and other cash costs.
Major Industry developments
Crude oil
Crude oil, the main input into base oil, reached an all time high of US$96
during the year. Unlike in 2006, when crude prices were volatile, 2007 saw a
steady and steep growth in prices especially in the second half. The effect of
this on in-year costs was not pronounced as fuel prices were stable in India on
account of government subsidies. The graph below indicates the trend of Crude
Price in the year 2007.
Base
Oils and Additives
Average base oil price for 2007 was comparable with average levels of 2006
though they softened in the first two Quarters of 2007 from their all-time
highs of 2006. However, the refining margins of base oil manufacturers declined
in the second half of the year due to the sharp increase in crude prices. The
prices started climbing again around the end of 2007 and show a trend of
further increases in 2008. However, the overall costs were managed well by the
Company in 2007, due to successful implementation of its procurement
strategy.
Additive prices were stable during the year at the increased 2006 levels. The
base oil and additive categories also had supply issues in select high grade
categories like Poly Alpha Olefins and Group 3 base oils.
In terms of supply and demand, Bharat Petroleum Corporation Limited started
commercial operations adding capacity to the local base oil refining industry.
This helped reduce imports of base oil into the country. In 2008, the projected
base oil and COGS (Cost of Goods Sold) scenario for the industry is expected to
be strongly inflationary. This is expected due to stronger crude prices and
lower refining margins of base oil suppliers.
Emergence of Long Drain Oils
Key commercial OEMs continued their pursuit of longer drain lubricants and Tata
Motors introduced new oil drain specifications for their Heavy and Medium
Commercial Vehicles for both crankcase (Engine Oils) and transmission
Lubricants. The engine oil drain period has been doubled to 36000 kms while the
transmission
oil drain intervals have risen to 72000 kms. These specifications are expected
to be adopted by current fleet owners for existing vehicle stock thus
significantly reducing consumption per vehicle. This is expected to reduce
volume growth significantly over the next 3-5 years.
Entry of new OEMs
The year 2007 also saw several global OEMs accelerating their efforts in India.
BMW, VW, MAN, Audi, Volvo and Renault started offering new vehicles to the
Indian consumer. This is expected to bring new technology vehicles into the
Indian market and provide additional opportunities for lube players.
Market behaviour and outlook
Automotive Sector outlook
The automotive lubricant sector can be segmented as per the following vehicle
categories:
(a) Trucks, Tractors and Off-Road Equipment - mainly diesel engine
oils
(b) Passenger Cars - mainly gasoline engine oils
(c) Motorcycles and 3-Wheelers - 2-stroke and 4-stroke oils
Market growth: The automotive
lubricant market is estimated to have grown volumes by over 3% on the back of a
strong economic performance. This has been led primarily by the increased
motorcycle and car stock, growth in agri-driven lubes consumption and a booming
construction sector. The old generation truck market and the 2-stroke
motorcycle lubes market, is projected to continue declining sharply in the
short-term.
Growth outlook: The trends
highlighted above are expected to continue into 2008. Over 1 million cars and
Utility Vehicles and about 6 million 4-Stroke 2-wheelers are projected to be
sold in 2008. The Building and Construction segment feeding the infrastructure
sector is expected to grow at a fast pace during 2008 on the back of a similar
growth in 2007.Thus, lube consumption is projected to grow strongly in cars,
4-stroke bikes and the Building and Construction equipment segments.
The monsoon in 2007 was satisfactory and led to a growth of about 1-2% in the
consumption of tractor lubricants. This trend is expected to be maintained in
2008 if the monsoon continues to be at average levels. The new generation, high
technology truck segment expanded in 2007 and this trend is expected to
continue in 2008. However, Commercial Vehicle sales were sluggish during the
year, which is likely to affect consumption of lubes in OEM dealerships. This
channel is a significant portion of the Commercial Vehicle oils market segment.
In addition, drain interval extension to double the current limits makes it
likely that OEM dealership volumes in Commercial Vehicles may come down to 50%
of current volumes. While this would depress the volumes of diesel engine and
gear oils, it is expected that the technologically superior products being used
to increase drain intervals will provide opportunities for overall value growth
in the market segment.
In the year 2008, the overall lube market is projected to post a growth of
around 2-3% in volume terms.
Channels: The year 2007 saw the
emergence of new channels in a significant manner. OEM dealerships and
authorized workshops continued to register good growth in volumes at an
aggregate level though the trends were sharply divergent between Commercial
Vehicles and other vehicle types. The Public Sector Units have entered into agreements
with OEMs offering their petrol stations as servicing points, thus increasing
captive consumption of lubes. Independent service chains introduced in recent
past in the market may also become significant players over the next few years.
With the market weight shifting slowly towards bikes and cars, the small
independent workshops are growing faster. The DIY (Do-It-Yourself) channels
like fuel stations and oil shops are either stagnating or declining. These
trends are expected to continue into 2008.
With the rapid growth in vehicle parc and the infrastructure sector, the shape
of the customer groups would be undergoing significant change in the future.
Fleets, construction companies and large workshop groups would be forming an
increasing percentage of the market. This in turn will require companies to
develop customer specific offers and capabilities to take advantage of this
trend.
Another trend which is rapidly catching up is the emergence of organised retail
chains. While the impact on lubricant sales at this juncture is minimal, these
outlets could present opportunities for marketing to customers in the
future.
Competitive activity: The
competitive situation remains largely unchanged with all major international
lubricant players having been present in the market for several years now. The
Company continues to be the leading brand in the retail sector, followed by the
public sector brands. However the smaller players have been competing
aggressively with lower prices and higher sales promotions to gain market
share.
Subject continues to be a major player in the Automotive lubes market and holds
a market share of approximately 21% in the overall market, according to
internal estimates.
Non-Automotive sector outlook
Industrial lubricant demand is dependent on industrial production and growth
trends in the economy.
The industrial production grew by an estimated 8.5% in the year 2007. Also
growths in UP (Index of Industrial Production) and GDP have been driven by growth
in the investment in India's industry sector. This is a positive trend and will
help the Company continue its strong performance in this sector.
In the Company's core segments in the Industrial business, Metals is growing at
an impressive double digit growth. Transnational accounts as well as Indian
steel majors have proposed big investments in greenfield, integrated steel
plants. In the Auto segment, Passenger Car sector is slated to grow in double
digits during 2007-08 but high interest rates and a gradual shift in customer
preference in favor of 4-wheelers continue to take a toll on growth in
2-wheeler segment.
Overall, the Industrial sector is likely to sustain the current growth with
domestic companies becoming aggressive for growth. Major global manufacturers
are also setting up bases in India, exploiting manufacturing efficiencies and
the availability of a big catchment market. This industrial growth in the core
segments of Auto, Machinery Manufacturing and Metals will drive the Industrial lubricants
business growth in the coming years. Within the Industrial lubes market, the
Company is focused to add distinctive value to its customers by delivering
differentiated products and services and through unique segment offers.
OPPORTUNITIES
AND THREATS
Opportunities
Automotive sector
Overall economic activity: With an expected GDP growth of about 8% per annum,
rapid growth in the industry and infrastructure services sectors and a good
monsoon predicted during the year, the basic consumption drivers for lubricants
are in place. This is expected to give a boost to the volume growth in the
market and to directly impact movement of goods and hence consumption of
Commercial Vehicle engine oils.
Growth in personal mobility: Growing personal disposable incomes and double
income households are expected to drive demand for cars and 2-wheelers despite
hardening of interest rates. Subject has strong brand equity in these segments
and growth in the personal mobility segment would have positive implications on
the Company's performance: The business in these segments, especially cars, is
driven to a large extent by the workshop channel where superior service
propositions, along with strong brands, can lead to significant business
gains.
It is also expected that the rural growth of 4-stroke motorcycles will outstrip
urban demand in the foreseeable future. This trend presents both an opportunity
as well as a challenge to the Company.
OEMs: Many international and global
OEMs have entered the Indian market. The Company's strong record of partnership
with major Indian and global OEMs will make this a good business opportunity.
During the year 2007, Subject extended its agreement with Tata Motors
Commercial Vehicle Division for transmission oils and has signed-up with Volvo,
Audi and Ford for participating in their workshops for high quality lubricants.
In addition, key off-road equipment manufacturers have also chosen to extend
their association with Castrol into the next few years. These developments present
the Company a strong opportunity in 2008 and in the next couple of years.
Changes in engine technology: This
presents an ideal opportunity for the Company to leverage its range of high
technology, superior quality products supported by a global product range
available with the Company's parent organization. However, this will also
present a risk to the volume growth of the Company.
Infrastructure growth: Road and
Building infrastructure has received a fillip in the recent years through
consistent investments by both government and private sectors. These projects,
due to be completed by end-2008, are likely to transform the infrastructure
availability as well as the road transport industry. In the short term, the
off-road sector is likely to grow faster than historic levels due to the
increased construction activity in the country. The infrastructure projects are
expected to be large consumers of lubricants and this trend will benefit the
Company because of its national reach, strong alliances with construction OEMs
and well trained sales team.
Demand for Automotive Services: With
a major growth in number of vehicles on road, the automotive services sector is
opening up business opportunities for the Company. By the end of 2007, Subject
had 96 BikeZones spread across the country.
Environment friendly products and
services:
With the future growth in technology being directed towards emission-control,
recycling, safety and noise control, the Company can leverage its global
strengths and expertise in these areas. The rising consciousness of the
environmental impact of human endeavor is expected to enhance the appeal of
high-end lubricants to large players due to its low impact on environment.
Subject and BP lubricants have products with specific focus on alternate fuels
like CNG and LPG which should help gain volumes and market share in this fast
growing segment of cars as well as Commercial Vehicles.
Non-Automotive sector
Industrial Sector: At the
macro-economic level, with good monsoon conditions supported by a strong
Industrial growth, India looks set to maintain its high growth trend in 2008.
In the core segments, global benchmarking and standards is becoming critical.
Industry is looking for global best practice sharing, where the Company is
implementing global segment offers to align to the needs of the Industry.
Proliferation of Small and Medium Enterprise clusters supporting the core
industry is a huge opportunity which the Company intends to capture through the
change in route-to-market implemented during 2006-07.
Major investments in the Core segments: India is being increasingly
acknowledged for its superior engineering skills and is gaining a major share
of investments planned by the global companies in the core segments in which
the Company operates. It is therefore better positioned to service the
requirements of these global companies as they look for international best
practices and technology supported by best-in-class products, across
geographies.
Environment friendly solutions:
Worldwide, the industry is driving towards reduced dependency on oil and
sustainable technologies. Pressure to reduce environment impact, as well as
cost, comes from every direction: customers, business partners and governments.
The Company is poised to tap this trend with its specific ecological and
economic solutions to reduce customers' environmental impact and to optimise
their financial advantage.
Discussion
on Financial Performance with respect to Operational Performance
The Company recorded remarkable increase in profits through twin approach of
growth in top-line and effective cost management.
Unit sales realizations grew in- 2007 by 11.70!0, mainly due to judicious
pricing decision and better sales mix. They continue to invest strongly in
costs which build value - technology, brand, innovation, growth business
opportunities and people. The total expenditure in 2007 grew just by 2% due to
reduction in cost of materials, offset by increase in other overheads. This led
to a strong Profit after Tax (PAT) growth of 41%.
With reference to working capital, Cash and Bank Balances have increased due to
better cash management. Accounts receivables have decreased with reduction in
debtor days and inventory value has reduced due to reduction in raw material
costs in 2007.
FIXED ASSETS
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Plant and Machinery
·
Furniture
·
Fixtures and Office Equipments
·
Motor Vehicles
WEB DETAILS
PRESS RELEASE
Unaudited Financial Results for the Second Quarter ended 30th
June 2008
Castrol India Q2 PAT up 26%
|
|
April - June
2008 |
April - June
2007 |
% increase |
|
Net Sales |
6214.000 |
5401.000 |
15 |
|
Profit Before Tax |
1282.000 |
1014.000 |
26 |
|
Profit After Tax |
828.000 |
659.000 |
26 |
Castrol
India Limited has delivered another impressive set of results for the second
quarter of 2008. The performance has been underpinned with profitable volume
growth.
During
the Quarter April - June 2008, Profit Before Tax increased by 26% to Rs.1280.000
millions, Profit After Tax increased by 26% to Rs. 830.000 millions and Net
Sales was up by 15% to Rs. 6210 millions. For the six month period, January –
June 2008, Profit Before Tax is up by 47% to Rs 2461.000 millions based on a
net sales increase of 13% over the corresponding period in 2007. The company
has declared an interim dividend of Rs.6 per share for the year ending 31st
December 2008.
Commenting on the results, Naveen Kshatriya – Managing
Director – Castrol India Limited, said, “Castrol India has achieved a record
performance in this quarter as a result of higher volumes, improved price
realization to recover sharply escalating cost of goods and better procurement.
The fact that our customers continued to patronise our products in the face of
rapidly increasing product prices, only vindicates strong brand preference and
the superior customer value we offer. In the current environment of raw
material shortages, we take care to be a dependable supplier for our valued,
loyal customers.”
Responding to the challenges of a difficult
environment, the company has suitably enhanced marketing support through
informative advertising and value adding promotions. The scale-up for Castrol
BikeZone – a franchised motorcycle servicing concept – slowed with high real
estate rentals.
Outlook - The overall economic turmoil due to high inflation,
interest rates, fuel prices, reduced economic activity, etc, will take its toll
on overall lube volume consumption, at least in the short to medium term, primarily
in the B2B customer base. Recognizing the tough market conditions, the company
will focus on creating superior value for its customers by upgrading both its
product and service offers. The company will also endeavour to grow in its
profitable volume segments, focusing even more on value growth through
superior, high technology products. Should base oil and other input costs
escalate rapidly, the margins might be impacted in the short term due to lag in
recovery.
Castrol to become an Official Sponsor of FIFA World CupTM
12pm CET, 30th
June 2008 - Castrol has strengthened its position in football by signing a
prestigious six-year deal as a FIFA World Cup Sponsor until 2014.M
The agreement
awards the global lubricants company worldwide rights for the 2010 FIFA World
Cup™ in South Africa, the 2014 FIFA World Cup™ in Brazil and the two FIFA
Confederations Cups which fall within the 2007-2014 period.
The news comes
following the company’s successful sponsorship of the recent European championships
– the UEFA EURO2008 - which saw Castrol develop the Castrol Performance Index,
a new tool which helps football fans to objectively analyse individual player
and team performances.
“Our investment in football has proved a tremendous success and allowed
Castrol to develop new opportunities in a way that has added value to our
business partners; excited and rewarded our fans; and motivated our staff,”
said Senior Vice President for Lubricants, Mike Johnson.
Commenting on the
announcement, FIFA President Joseph S. Blatter, said: “With Castrol, we are
delighted to welcome a committed football supporter into our global sponsorship
family. The FIFA World Cup, with more than 26 billion TV viewers, attracts
massive involvement from fans and non-fans alike, who are drawn to the drama
and excitement that comes with top national-team football. With its new
Performance Index, Castrol has enhanced the fans’ experience with exclusive
data on the players’ speed, efficiency and performance in matches. The index
was developed with renowned football experts such as Arsène Wenger, Ottmar
Hitzfeld and Emilio Butragueño and it underlines Castrol’s passion for the
game,”
“This partnership not only highlights FIFA’s confidence in South Africa
and Brazil as the host nations, but also shows that the global business
community believes in the incredibly positive impact the events will have,”
Blatter added.
Through the
creation of the Castrol Performance Index, Castrol was able to showcase the
importance of the brand’s core values of passion, technical progress and
performance in a way that was both innovative and engaging.
Also commenting on
the deal, Castrol ambassador Arsene Wenger said:
“I chose to work with Castrol because its football sponsorship went
beyond simply ticket promotions and branding. The development and launch of a
new performance index was something which really interested me, and I was
impressed by the way they used their experience in improving vehicle
performance to champion the objective measurement of players and teams.”
The FIFA World Cup™ sponsorship is the biggest in the company’s 100-year
history and will help Castrol continue to modernise its brand to deliver even
more powerful and relevant offers for its consumers, which include a simplified
product range and new technology benefits.
The connection
with events such as the 2010 FIFA World Cup™ in South Africa and the 2014 FIFA
World Cup™ in Brazil provide a route to a mass football audience that overlaps
strongly with the brand’s 45 million consumer base. Football fans can look
forward to Castrol and FIFA making further announcements about concepts related
to their new partnership later this year.
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.45.77 |
|
UK Pound |
1 |
Rs.80.67 |
|
Euro |
1 |
Rs.64.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
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 |
|