MIRA
INFORM REPORT
|
Report Date : |
05.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
J K |
|
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Registered
Office : |
7, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
14.02.1951 |
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Com. Reg. No.: |
21-19430 |
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CIN No.: [Company Identification
No.] |
L67120WB1951PLC019430 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHJ01475F /
CALJ01643F |
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PAN No.: [Permanent Account No.] |
AAACJ6716P |
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Legal Form : |
A Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Automotive
Tyres, Tubes and Flaps, Pharmaceuticals and Cane Sugar. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 28000000 |
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|
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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 a reputed company having good track.
Financial Position of the company appears to be sound. Directors are reported
to be experienced and respectable businessman. Trade relations aree reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
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|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
7, |
|
Tel. No.: |
91-33-22484198 /
22486181 |
|
Fax No.: |
91-33-22481641 |
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E-Mail : |
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Website : |
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Administrative/
Head Office : |
‘Link House’, 3,
Bahadur Shah Zafar Marg, |
|
Tel. No.: |
91-11-23311112-7 |
|
Fax No.: |
91-11-23322059/
23716205 |
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|
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Plants
Locations : |
v
Jaykaygram,
Kankroli, v
Banmore,
v
v
v
Mysore Plant III, Karnataka, India |
|
|
|
|
Branch Office
: |
3/Fl, Gulab
Bhavan, 3 Bahadur Shah Jafar Marg, |
DIRECTORS
(AS ON 31.03.2010)
|
Name : |
Mr. Hari Shankar
Singhania |
|
Designation : |
Chairman |
|
Qualification : |
B.Sc., F. Inst. D. ( |
|
Date of Joining : |
25/03/1974 |
|
Other Directorships : |
J. K. Corporation
Limited-Chairman and Managing Director The Central Pulp
Mills Limited- Chairman Atlas Copco ( J. K. Udaipur Udyog Limited-Chairman |
|
|
|
|
Name : |
Mr. Raghupati
Singhania |
|
Designation : |
Vice Chairman and
Managing Director |
|
|
|
|
Name : |
Mr. Bharat Hari
Singhania |
|
Designation : |
Managing Director |
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|
Name : |
Mr. Vikrampati
Singhania |
|
Designation : |
Deputy Managing
Director |
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|
Name : |
Mr. Swaroop Chand
Sethi |
|
Designation : |
Whole Time
Director |
|
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|
|
Name : |
Mr. Arvind Singh
Mewar |
|
Designation : |
Director |
|
Qualification
: |
B. A. (English
Literature, Economics and Political Science), Hotel Management Ctheirse (U.K) |
|
Date of
Joining : |
07/04/1975 |
|
Other
Directorships : |
v
The
Lake Palace Hotels and Motels Limited -Chairman and Managing Director v
Historic
Resort Hotels Limited -Chairman v
Shikarbadi
Hotels Limited |
|
|
|
|
Name : |
Mr. Bakul Jain |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Govind
Ballabh Pande |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vikrampati
Singhania |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Dr. T K
Mukhopadhyay |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun K.
Bajoria |
|
Designation : |
President and
Director |
KEY EXECUTIVES
|
Name : |
Mr. P. K. Rustagi |
|
Designation : |
Vice President (Corp. Laws) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2010)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
715,161 |
1.74 |
|
|
18,569,320 |
45.23 |
|
|
19,284,481 |
46.97 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
19,284,481 |
46.97 |
|
|
|
|
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
802,747 |
1.96 |
|
|
8,613 |
0.02 |
|
|
285,520 |
0.70 |
|
|
1,903,294 |
4.64 |
|
|
5,094,003 |
12.41 |
|
|
8,094,177 |
19.71 |
|
|
|
|
|
|
|
|
|
|
7,205,518 |
17.55 |
|
|
|
|
|
|
|
|
|
|
4,181,442 |
10.18 |
|
|
2,217,346 |
5.40 |
|
|
|
|
|
|
76.382 |
0.19 |
|
|
76.182 |
0.19 |
|
|
200 |
-- |
|
|
13,680,688 |
33.32 |
|
|
|
|
|
Total
Public shareholding (B) |
21,774,865 |
53.03 |
|
|
|
|
|
Total
(A)+(B) |
41,059,346 |
100.00 |
|
|
|
|
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
- |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
41,059,346 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Automotive Tyres, Tubes and Flaps, Pharmaceuticals and Cane Sugar. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
PARTICULARS |
UNITS |
INSTALLED CAPACITY PER ANNUM |
PRODUCTION |
|
QTY. |
QTY. |
||
|
Automobile
Tyres |
Millions
Nos. |
91.47 |
79.31 |
|
Automobile Tubes |
Millions Nos. |
13.82 |
54.40 |
|
Automobile Flaps |
Millions
Nos. |
-- |
22.56 |
GENERAL INFORMATION
|
No. of Employees : |
Around 4000 |
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Bankers : |
v
Bank
of v
Corporation
Bank v
IDBI
Bank Limited v
Indian
Bank v
Punjab
National Bank v
State
Bank of v
State
Bank of v
State
Bank of v
Syndicate
Bank v
The
Federal Bank Limited v
UCO
Bank |
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Facilities : |
NOTES: 1. (a)63389 Zero Coupon Non-Convertible Debentures (ZCNCDs) of Rs.10,000 each
issued to a Bank, outstanding amount Rs.155.500 Millions, are secured by
first pari passu charge created on the specified property of Gujarat and
movable and immovable properties of Company's Plants in Rajasthan and Madhya
Pradesh, both present and future. These debentures are redeemable at premium
based on a YTM of 13.5% p.a. upto 30,06.2005 and a YTM of 9% p.a. w.e.f.
01.07.2005 with quarterly rests in five installments at the end of 3 to 7
years from the respective dates of payment of allotment money / call money. (b) 12856 Zero Coupon Non-Convertible Debentures (ZCNCDs) of Rs.10,000
each issued to a Bank, outstanding amount Rs.32.100 Millions, are secured by
first pari passu charge created on the specified property of Gujarat and
movable and immovable properties of Company's Plants in Rajasthan and Madhya
Pradesh, both present and future. These debentures are redeemable at premium
based on a YTM of 13.5% p.a. with quarterly rests in five installments at the
end of 3 to 7 years from the respective dates of payment of allotment money /
call money. (c) 27353 Zero Coupon Non-Convertible Debentures (ZCNCDs) of Rs.10,000
each issued to a Bank, outstanding amount Rs.123.600 Millions, are secured by
first pari passu charge created on the specified property of Gujarat and
movable and immovable properties of Company's Plants in Karnataka, both
present and future. These debentures are redeemable at premium based on a YTM
of 13.75% p.a upto 30,06.2005 and a YTM of 9% w.e.f. 01.07.2005 with
quarterly rests in five installments at the end of 3 to 7 years from the
respective dates of payment of allotment money / call money. (d) 9057 Zero Coupon Non-Convertible Debentures (ZCNCDs) of Rs.l0,000
each issued to Financial Institutions, outstanding amount Rs.41.100 Millions,
are secured by first pari passu charge created on the specified property of
Gujarat and movable and immovable properties of Company's Plants in
Karnataka, both present and future. 2656 ZCNCDs are redeemable at premium
based on a YTM of 13.75% p.a. and 6401 ZCNCDs are redeemable at premium based
on a YTM of 13.75% p.a. reduced to a YTM of 9% p.a. during January, 2006 to
March, 2006 with quarterly rests in five installments at the end of 3 to 7
years from the respective dates of payment of allotment money / call money. 2. Term Loan of Rs.200.000 Millions from a Bank is secured by a first
pari passu charge created / to be created on movable and immovable properties
of Company's Plant in Madhya Pradesh, both present and future. 3. Term Loans aggregating Rs.26.200 millions from Financial
Institutions and Rs.64.600 millions from Banks are secured by a first pari
passu charge created on movable and immovable properties of the Company's
Plants in Rajasthan and Madhya Pradesh, both present and future. Loan of
Rs.45.000 millions.(comprised in Rs.64.600 millions above) from a Bank is
also secured by exclusive hypothecation of specified Book Debt. 4. Term Loans aggregating Rs.332.500 millions from Banks are secured by a first pari
passu charge created on movable and immovable properties of the Company's
Plants in Rajasthan, Madhya Pradesh and Karnataka, both present and future. 5. Term Loans aggregating Rs.14.900 millions from Financial
Institutions and Rs.19.900 millions from Banks are secured by a first pari
passu charge created/to be created on movable and immovable properties of
Company's Plants in Karnataka, both present and future. 6. Term Loans
aggregating Rs.1864.900 Millions from Banks are secured by a first pari passu
charge created on movable and immovable properties of Company’s Truck Radial
Plant in Karnataka, both present and future and also secured by way of
hypothecation created / to be created on the specified movable assets at
Company’s Plants in Rajasthan, Madhya Pradesh and Karnataka. 7. Term Loan of
Rs.192.500 Millions from a Bank is secured by an exclusive charge by way of
hypothecation of specified assets at Company’s Plants in Rajasthan, Madhya
Pradesh and Karnataka. 8. Term Loan of
Rs.1.700 Millions from a Bank and Rs.2.300 Millions from a body corporate are
secured by hypothecation of specified vehicles. 9. Term Loan of
Rs.808.900 Millions from a body corporate will be secured by way of
hypothecation on the specified assets at Company’s new plant being set up in
Karnataka. 10. Other Loans
from banks represent Working Capital borrowings aggregating Rs.187.800
Millions secured by hypothecation of stocks and book debts etc., both present
and future of the Company (except specified book debt exclusively hypothecated to
a bank against Term Loan as referred to in note no. 3) and second charge
created / to be created on movable and immovable properties of the Company’s
Plants in Rajasthan, Madhya Pradesh and Karnataka. 11. Term Loans
carrying first pari passu charge on the movable and immovable properties, are
subject to prior charge of banks on stocks and book debts for working capital
borrowings. 12. (a) Deferred
Sales Tax Loan aggregating Rs.427.800 Millions from Madhya Pradesh State
Industrial Development Corporation Limited is secured by first available
charge on movable and immovable properties created subject to charges
referred to in note 1(a and b), 2, 3, 4, 6 and 7 on movable and immovable
properties of Company’s Plant in Madhya Pradesh. (b) Deferred
Sales Tax Loan aggregating Rs.42.300 Millions from Government of Karnataka
subordinated to loans from Financial Institutions, is secured by a second
charge on immovable properties of the Company’s Plant in Karnataka. |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered
Accountants |
|
|
|
|
Memberships : |
Confederation of
Indian Industry |
|
|
|
|
Associates : |
§ Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) §
Valiant Pacific LLC. (VPL) |
|
|
|
|
Subsidiaries : |
§
J. K. International Limited §
J. K. Asia Pacific Limited §
J. K. Asia Pacific (S) Pte. Limited
(Subs. of J. K. Asia Pacific Limited) §
Lankros Holdings Limited §
Sarvi Holdings Switzerland AG. (Subs.
of Lankros Holdings Limited) §
Sunrise Hold Co. S.A. De C.V. (Subs.
of Sarvi Holdings Switzerland AG.) §
§
Comercializadora
América Universal, S.A. De C.V. (Subs. of ETSA) §
Compańía
Hulera Tacuba, S.A. De C.V. (Subs. of ETSA) §
Compańía Hulera Tornel, S.A. De C.V.
(CHT - Subs. of ETSA) §
Compańía
Inmobiliaria Norida, S.A. De C.V. (Subs. of ETSA) §
General
de Inmuebles Industriales, S.A. De C.V. (Subs. of ETSA) §
§
Hules y |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity shares |
Rs.10/- each |
Rs.1250.000 Millions |
|
700000 |
14% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.70.000 Millions |
|
4800000 |
Preference Shares |
Rs.100/- each |
Rs.480.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1800.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
41059346 |
Equity shares |
Rs.10/- each |
Rs.410.600 Millions |
|
|
|
|
|
NOTE:
Includes 33750 Bonus shares by way of
capitalization of reserves and 8651639 shares issued to the shareholders of erstwhile
Vikrant Tyres Limited. Pursuant to the scheme of arrangement and amalgamation
without payment being received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 (12 Months) |
31.03.2009 (18 Months) |
30.09.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
410.600 |
410.600 |
307.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6523.600 |
5347.700 |
5031.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6934.200 |
5758.300 |
5339.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4333.300 |
8503.100 |
6868.200 |
|
|
2] Unsecured Loans |
4268.500 |
2514.900 |
2281.300 |
|
|
TOTAL BORROWING |
8601.800 |
11018.000 |
9149.500 |
|
|
DEFERRED TAX LIABILITIES |
1391.000 |
1116.700 |
1053.200 |
|
|
|
|
|
|
|
|
TOTAL |
16927.000 |
17893.000 |
15541.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13527.700 |
11688.800 |
11988.000 |
|
|
Capital work-in-progress |
1320.200 |
2401.900 |
203.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
902.400 |
897.500 |
626.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4577.700
|
4144.500
|
|
|
|
Sundry Debtors |
4876.000
|
4424.700
|
|
|
|
Cash & Bank Balances |
632.700
|
419.900
|
11001.800
|
|
|
Other Current Assets |
20.800
|
4145.900
|
|
|
|
Loans & Advances |
2019.500
|
1962.500
|
|
|
Total
Current Assets |
12126.700
|
10953.000
|
11001.800
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
6483.700
|
4688.000
|
8359.500
|
|
|
Other Current Liabilities |
3395.700
|
2814.600
|
0.000
|
|
|
Provisions |
1070.600
|
597.700 |
0.000 |
|
Total
Current Liabilities |
10950.000
|
8100.300 |
8359.500 |
|
|
Net Current Assets |
1176.700
|
2852.700
|
2642.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
52.100 |
82.200 |
|
|
|
|
|
|
|
|
TOTAL |
116927.000 |
17893.000 |
15541.900 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 (12 Months) |
31.03.2009 (18 months) |
30.09.2007 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
36777.000 |
49036.100 |
28161.600 |
|
|
|
Other Income |
147.200 |
198.000 |
105.000 |
|
|
|
TOTAL (A) |
36924.200 |
49234.100 |
28266.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material and Manufacturing |
25540.200 |
38062.200 |
23340.600 |
|
|
|
Employee Cost |
2539.800 |
2949.900 |
1767.200 |
|
|
|
(Increase)/ Decrease in Finished Goods |
726.700 |
359.200 |
(931.300) |
|
|
|
Selling And Administration Expenses |
0.000 |
0.000 |
920.000 |
|
|
|
Transfer from Capital Reserve |
(234.700) |
(351.400) |
0.000 |
|
|
|
Other Expenditure |
3914.600 |
4732.300 |
258.900 |
|
|
|
TOTAL (B) |
32486.600 |
45752.200 |
25355.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4437.600 |
3481.900 |
2911.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
886.600 |
1577.900 |
890.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3551.000 |
1904.000 |
2020.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1094.200 |
1484.900 |
1013.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2456.800 |
419.100 |
1007.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
825.000 |
228.600 |
340.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1631.800 |
190.500 |
667.300 |
|
|
|
|
|
|
|
|
|
|
Debenture Redemption Reserve no Longer Required |
56.300 |
133.600 |
|
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
272.300 |
251.100 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
10.100 |
73.200 |
-- |
|
|
|
General Reserve |
1000.000 |
100.000 |
-- |
|
|
|
Proposed Dividend |
143.700 |
110.900 |
-- |
|
|
|
Corporate Dividend Tax |
23.900 |
18.800 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
782.700 |
272.300 |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of exports |
3572.300 |
7481.400 |
4810.400 |
|
|
|
Royalty |
42.000 |
42.200 |
15.800 |
|
|
TOTAL EARNINGS |
3614.300 |
7523.600 |
4826.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
7525.100 |
9704.300 |
5126.500 |
|
|
|
Capital Goods |
512.800 |
1680.600 |
120.800 |
|
|
|
Spares |
39.100 |
73.800 |
28.100 |
|
|
TOTAL IMPORTS |
8077.000 |
11458.700 |
5275.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
39.74 |
55.20 |
--- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
30.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
11679.700 |
11384.700 |
11785.000 |
|
Total Expenditure |
10948.400 |
10639.700 |
11166.000 |
|
PBIDT (Excl
OI) |
731.300 |
745.000 |
619.000 |
|
Other Income |
1.500 |
1.300 |
1.600 |
|
Operating
Profit |
732.800 |
746.300 |
620.600 |
|
Interest |
208.000 |
207.100 |
240.600 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
524.800 |
539.200 |
380.000 |
|
Depreciation |
223.300 |
227.400 |
229.000 |
|
Profit
Before Tax |
301.500 |
311.800 |
151.000 |
|
Tax |
106.200 |
109.900 |
59.600 |
|
Reported PAT |
195.300 |
201.900 |
91.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
195.300 |
201.900 |
91.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 (12 Months) |
31.03.2009 (18 months) |
30.09.2007 |
|
PAT / Total Income |
(%) |
4.42
|
0.39
|
2.36 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.68
|
0.85
|
3.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.58
|
1.85
|
4.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.35
|
0.07
|
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.82
|
3.32
|
3.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.11
|
1.35
|
1.32 |
LOCAL AGENCY FURTHER INFORMATION
Company Profile:
·
JK Tyre’s biggest motorsports
endeavour in recent times
·
The car will be christened
Formula JK Tyre Pacific and will run on JK tyres
Present at the launch announcement were Dr. Raghupati
Singhania, Vice-Chairman and Managing Director, JK Tyre and Industries Limited,
Mr. David Sonenscher, CEO, Motorsport Asia Limited. and Mr. Vicky Chandhok,
President, Federation of Motorsport Club of India.
The championship JK Racing Asia Series will run under
the patronage of the JK Tyre brand and will remain under the management of
Motorsport Asia, the biggest motorsport promoter and organiser in
“The JK Racing Asia Series will showcase a line-up of
drivers from all corners of the world including Asia-Pacific, Europe and
Mr. David
Sonenscher, CEO, Motorsport Asia said,
“Firstly congratulations to JK Tyre for another great achievement for their
group. We at Motorsport Asia are proud to be associated to a brand that takes
pride in all its motorsport endeavours and who are always striving to help
better the industry.”
“The JK Racing Asia Series is truly an excellent Series that has helped to
groom many of the talented race drivers we see out there today. We are also
excited to be coming here later this year to end our first race season with JK
Tyre at the newly built Jaypee International Race Circuit” concluded
Sonenscher.
Congratulating
JK Tyre Mr. Vicky Chandhok, President, Federation of Motorsports Club of India
said, “JK
“
The races will commence in April this year, the venues being
JK Racing Asia Series will feature an ultra-modern standard specification
racecar. The Formula JK tyre Pacific is made
of carbon-fibre Kevlar, which has been proven to be of the highest safety
standards. The 140bhp, 1.2litre BMW engine provides a maximum engine speed of
9,250rpm with a top speed of 230km/h. The race car will run on JK tyres.
The series is in sync with JK Tyre’s philosophy of identifying and developing
young racing talents to become future world champions. The JK Racing Asia
Series is for the most talented drivers rather than just the most financially
healthy to succeed. It is for this reason that both the car and the training
programme have been devised so that little if any advantage can be obtained by
extra investment.
Viewers in over 100 countries will receive great TV coverage of the JK Racing
Asia Series where 185 programmes with 10,850 minutes of coverage are broadcast
to a total potential viewer ship of over 612.000 million.
About JK Tyre and
Motorsports:
JK Tyre and Industries Limited. is a leading tyre manufacturer in
The Racing and Karting programme by JK Tyre has been the breeding ground
for the country’s motorsport talents like Narain Karthikeyan, Armaan Ebrahim,
Karun Chandhok, Ashwin Sundar, Aditya Patel, Parthiva Sureshwaran and other new
emerging talents.
About Motorsport
Asia Limited:
Motorsport
Asia Ltd (MAL) was established in 1996 with the vision to fully develop the
motorsport industry in the Asian region. The company represents the new face of
dynamism and optimism of the region, and is strategically poised to exploit the
growing interest of the sport in
MAL
provides a complete range of motorsport services, ranging from Race Management,
liaison with racing circuits and regulatory bodies; motorsport Technical
expertise and know how for manufacturers and teams; Freight Movement and
transportation of race cars and equipment by sea, land and air; providing Media
and Public Relations services and providing Hospitality, Catering and
Entertainment services.
MAL
also has in-house TV production and distribution facilities, currently filming,
producing and distributing both live and delayed programming. The Asian
Festival Of Speed TV shows are broadcast globally in over 100 countries on both
satellite and terrestrial channels.
AFOS
is visited by media organizations from around the world and articles featuring
the event were published globally. Motorsport Asia operates a dedicated website
www.afos.com which is regularly visited by people in
over 112 countries. In addition Motorsport Asia offers consultancy services for
the construction or enhancement of motorsport facilities.
OPERATIONS:
The Company is observing this year as the Birth Centenary Year to pay
humble respects to late Lala Lakshmipat
Singhania (1910-1976), who had been a great
Visionary and a Key Architect of JK Organisation. He believed in the philosophy of inclusive growth encompassing all sections of the
Society. The Company’s all time
high Sales and Profits this year is a
befitting tribute to the great Founder.
Sales and other income during the year was Rs.39710.000
Millions, recording an increase of 8% over that of previous period
(annualised). Operating Profit for the year was double at Rs.4200.000 Millions.
Profit Before Tax for the year was Rs.2460.000 Millions and Profit After Tax
was Rs.1630.000 Millions.
The year was full of challenges and achievements.
Company domestic operations improved with overall higher
production. Despite prolonged illegal strike at its Kankroli plant, the
turnover increased by 8%. The Directors are pleased to report that the
operations have normalised and the Company has achieved improved operating
efficiencies on all parameters.
Tornel –
Automobile Industry in
There has been spurt in the input costs with natural rubber
prices more than doubling during the year. The Company could partly mitigate the
increased costs by all round improvement in operating efficiencies, higher
productivity, cost reduction measures and richer product mix.
EXPORTS
The Company is a strong global player with a presence in over
80 countries across 6 continents offering a wide range of products backed by
world class technology.
Company enjoys a premium brand status in various advanced
markets including
The acquisition of Tornel in
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW
The Indian economy demonstrated remarkable resilience in
withstanding the challenges with the now receding global economic crisis in the
year gone by. Prudent fiscal management of the economy by Government of India
aided by economic stimuli programs like NREGA, infrastructural development and
other measures, put growth back on its trajectory, registering a growth of over
7%. However, a weak monsoon in 2009 impacted the agricultural output to
inflationary pressures.
The Automotive sector was a great beneficiary of the overall
recovery and registered healthy growth, i.e., 38% in commercial vehicle segment
and 26% for passenger vehicles. This in turn led to an increase of four-wheeler
tyre production by 17%.
Encouraged by the growth forecasts of the Automotive
Industry and the resultant tyre demand, the Industry has announced large
capital investments of the order of Rs.200000.000 Millions for adding tyre
capacities over the next few years.
Raw material prices on the other hand are a cause of concern with
Natural Rubber prices more than doubling in the last 12 months, and Synthetic
Rubber and other input prices, also registering significant increases.
JK
Progress is a way of life at JK Tyre. In the year gone by,
apart from achieving highest sales and profits, the Company crossed many
significant milestones.
§
Capacity expansion of Truck/Bus Radials
(TBR) from 4 Lacs to 8 Lacs tyres per annum with an investment of Rs.3150.000
Millions becoming fully operational.
§
Cumulative sales of TBR tyres in the
domestic market crossed 2 million mark and JK Tyre continuing to be
§
JK Tyre produced, its first, Ultra
Large OTR tyres of 51” size, and 9 feet high, weighing 1.8 tons each. These
were delivered to BEML.
§
JK Tyre was selected as ‘Superbrand’,
yet again, for the period 2009-10 based on an extensive consumer survey, and
selection by the Superbrands Council of India.
§
The World’s first On LEVEL flat surface
tyre testing machine, capable of doing various performance tests, was installed
at HASETRI in association with Company’s R&D. The machine, the first of its
kind in the world, has enhanced Company’s technological capability manifold.
COMMERCIAL
Production of the medium and heavy vehicle tyres increased
by nearly 15%, driven by the increased economic activity in the country.
The LCV segment experienced a shift and substantial growth
was recorded in sub-one-toner vehicles and the tyres for this application.
JK Tyre increased its output in TBR tyres. The Company
maintained its No. 1 position in this fast growing segment and accounts for 75%
of
TRUCK/BUS TYRES
Company’s premium product offerings, such as, ‘Jet Xtra’,
‘Jet R Miles’ and ‘Jet One’ continue to be the segment leaders in the Bias
category.
In the TBR segment, new Hi-performance Tubeless and Rib
pattern tyres were introduced. JK Tyre registered its highest sales ever and
reigned the market as “Badshah of Radials”. Company’s 10.00-R-20 Jet Steel tyre
continues to enjoy high consumer confidence and demand. JK Tyre’s message of
“Made in
LCV
TYRES
Focused consumer contact programmes addressing specific needs
of the LCV customers were undertaken across the country. High performing
‘Jet R Miles’ tyre was launched for LCVs. The sub-one-ton segment
product ‘Jumbo Ace’ continues to enjoy increasing consumer preference in
this segment.
CAR TYRES
JK Tyre continues to be major supplier of PCRs to OEMs.
Company known for partnering from drawing board stage itself, added General
Motors to its list of prestigious customers, with Chevrolet Cruz, the new D
segment car riding exclusively on JK Tyre Vectra ‘V’ rated radials. New
Generation Cars like Maruti Ritz, Chevrolet Beat, Fiat Punto, Volkswagen Polo
have all rolled out on premium JK Tyre Tubeless Radials.
The Company maintained its aggressive thrust by expanding
its nationwide retail chain ‘Steel Wheels’ for PCRs. Placing emphasis on
getting closer to the customer and penetrating the market, new state of the art
outlets were established across the country, be it, in Aizawl (Mizoram) or
Hissar and Yamunanagar in Haryana, or Tirupati and Nizamabad (AP), or the Metros
of Chennai and Mumbai. Road safety programmes conducted in partnership with
Society of Indian Automobile Manufacturers (SIAM) and Confederation of Indian
Industry (CII), were highly appreciated by the motorists and the authorities
alike.
JK Tyre, yet again, was ranked highest in the JD Power Tyre
Customer Satisfaction Index for original Tyres in 2009. It continues to enjoy
the ‘Super Brand’ status, being the only Tyre Company to have received this
coveted recognition.
FARM TYRES
In the farm tyre segment, the Company launched 18.4 -30 Sona
tyre for Harvester Combine. Extensive consumer awareness program for Sona-1
Tractor tyres, was organized in more than 200 villages. More than 40,000
tractor owners were benefited from nearly 200 farmer’s “Sammelans” organized in
villages and mandis.
OTR
JK Tyre continues to command leadership in this segment.
Company has introduced, its first, Ultra Large OTR tyre of 51” size, and 9 feet
high, weighing 1.8 tons.
The ongoing expansion project for OTR tyres is progressing well and is expected to be completed by
mid 2010. This will further strengthen Company’s standing in the OTR segment.
RETREAD
BUSINESS
In line with “Customer first - 24x7” policy, yet another
initiative was taken by the Company by entering the Retreading segment under
the brand “JK Treads”. This will help deliver high value for the Company’s
products to the customers by enhancing the product life. A nationwide chain of
franchisees has been established to reach out to the customers.
HISTORY:
Subject the flagship company of the Hari Shankar Singhania
Group is one of the leading automotive tyre manufacturers in
Post demerger and also the completion of capital restructuring at J K
Industries pushed the company to 16th largest tyre manufacturer in the world.
The merger of JK Tyre and Vikrant Tyres made JKI to cross turnover of over
Rs.20000.000 Millions in the year 2003.
Further the company which made an 51% strategic acquisition of Vikrant tyres in
1997 from Karnataka Government has completed the modernization and expansion of
Vikrant tyres. Late in 2003 Vikrant Tyres was amalgamated with JKI.
Subject manufacturer tyres and tubes, and steel- belted radial tyres, under the
brand name JK Tyres. For the manufacture of tyres subject has technical
collaboration with General Tire International, US. Apart from General tyres the
company has technical collaboration with International, US and Continental AG,
Subject will become the second largest player in the their-wheeler tyres
segment on combined capacity basis(JK tyres + vikrant tyres). The 'Rubber and
Plastic New,
Subject introduced the dual contact high traction and high performance 'Aquasonic'
Steel Radial Car Tyre. It also developed
During the year 2000, in the truck and bus tyre segments - 'Tanker Lug' and
'Jet Haul' have been introduced as specific application products. In LCV
category 'WL 407' tyre has been developed and 'Ultima-XP' car radial tyre has
been developed with value-added features.
AS part of its efforts towards enhancing export volumes of tyres, JKI through a
wholly-owned foreign subsidiary tied up with a Chinese company for stheircing
light commercial vehicle (LCV) bias tyres for the export markets. It has opened
a new office at
The company has diversified into hybrid and high-yielding seeds by setting up J
K Agri-genetics to produce cereals, seeds, pulses, etc. The company's sugar
operation(JK Sugars) is located in UP and it has set up a 3120 TCD sugar
project at Meerganj, UP.
Subject which has also diversified into pharma business and set up facility to
produce of 7-ADCA and semi-synthetic cephalosporins at Gajraula, UP. The plant
which started commercial production of Feb 1995. Later the company has hived
off its pharma business to JK Drugs and Pharmaceuticals (JKDPL). Subsequently
JKI has divested its stake in JKPDL to TEVA Pharma of Israel thus existing from
pharma sector.
In Jan.'93, it came out with a rights issue to part-finance the expansion of
radial tyre plant, the balancing / expansion scheme of the Banmore tyre plant.
The money so raised from the rights issue in Jan 1993 is also will be utilized
for the 7-ADCA and semi-synthetic cephalosporins project, the pig iron project
and the rehabilitation of the Central Pulp Mills Limited, (which was done in
association with JK Corp)
The company has their subsidiary investment companies namely Hansdeep
Investment, Hidrive Finance, Panchanan Investment, and Radial Finance. It also
has 3 fully-owned subsidiaries abroad -- J K International, UK, J K Asia
Pacific, Hong Kong and JK Asia Pacific(S) Pte Limited. The company, along with
TIDCO, has promoted J K Pharma Chem for the manufacture of penicillin-G.
Company have announced the start of their OTR tyre production. These tyres will be produced at theur new plant in Maysore. Company have invested Rs.1200.000 Millions in this project ad have also signed an agreement with BEML to supply these tyres for their heavy duty machines. These tyres will cost upto Rs.0.200 Million each and will be used in heavy earth moving and mining equipment.
FIXED ASSETS
v
v Buildings
v Plant and Machinery
v Office Equipments
v Furniture and Fixtures
v Vehicles
v Software
WEBSITE DETAILS:
The advent of JK Organization on the industrial landscape of
JK Organization has been a forerunner in the economic and
social advancement of
JK Organisation is an association of industrial and commercial companies and
charitable trusts. Its member companies, employing nearly 50,000 persons are
engaged in the manufacture of a variety of products and in diverse fields of
commerce.
Trusts are devoted to promoting industrial, technical and
medical research, education, religious values and providing better living and
recreational facilities. With the spirit of social consciousness uppermost in
mind, J.K. Organisation is committed to the cause of human advancement.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.12.2010 (Rs in Millions)
|
Particulars |
31.12.2010 Quarter |
30.09.2009 6th Month |
|
Operating Income |
|
|
|
Gross sales / Income from Operations |
12801.400 |
37922.500 |
|
a) Net Sales / Income from Operations |
10.574 |
3204.200 |
|
b) Other Operating Income |
11744.000 |
34718.300 |
|
Total Operating Income |
41.000 |
131.100 |
|
Total |
11785.000 |
34849.400 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(807.500) |
(1958.700) |
|
(b) Consumption of Raw Materials |
91.803 |
26774.300 |
|
(c) Purchase of Traded Goods |
91.000 |
261.100 |
|
(d) Employees Cost |
692.100 |
2025.100 |
|
(e) Depreciation |
229.000 |
679.700 |
|
(f)Other Expenditure |
2010.100 |
5652.300 |
|
Total Expenditure |
11395.000 |
33433.800 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
390.000 |
1415.600 |
|
Other Income |
1.600 |
4.400 |
|
Profit/(Loss) before Interest and Exceptional items |
391.600 |
1420.000 |
|
Interest |
240.600 |
655.700 |
|
Profit / (Loss) after interest before Exceptional items |
151.000 |
764.300 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary Activities Before Tax |
151.000 |
764.300 |
|
Tax Expenses |
|
|
|
-Provision For Current Tax |
72.100 |
258.800 |
|
-Mat (Credit) Reversal |
0.000 |
0.000 |
|
-Provision For Deferred Tax |
(12.500) |
16.900 |
|
Net Profit/(Loss) after tax |
91.400 |
488.600 |
|
Extraordinary Item
(net of Tax Expense) |
0.000 |
0.000 |
|
Net Profit / (Loss)
For the period |
91.400 |
488.600 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
410.600 |
410.600
|
|
Earnings Per Share (Rs) (before / after extraordinary items) |
|
|
|
-Basic and Diluted |
22.300 |
119.000 |
|
Public Share
Holding |
|
|
|
Number of Shares |
21774865 |
21774865 |
|
Percentage of Shareholding |
530.300 |
530.300 |
|
Promoters and
Promoter group share holding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
0.000 |
0.000 |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
19284481 |
19284481 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
|
- Percentage of Share (as a % of the total share capital of the company) |
469.700 |
469.700 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.67 |
|
|
1 |
Rs.71.62 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.